N-Q 1 dnq.htm PRUDENTIAL INVESTMENT PORTFOLIOS 6 (F/K/A DRYDEN CALIFORNIA MUNICIPAL FUND) Prudential Investment Portfolios 6 (f/k/a Dryden California Municipal Fund)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

 

 

Investment Company Act file number:    811-04024
Exact name of registrant as specified in charter:    Prudential Investment Portfolios 6
   (f/k/a Dryden California Municipal Fund)
Address of principal executive offices:    Gateway Center 3,
   100 Mulberry Street,
   Newark, New Jersey 07102
Name and address of agent for service:    Deborah A. Docs
   Gateway Center 3,
   100 Mulberry Street,
   Newark, New Jersey 07102
Registrant’s telephone number, including area code:    800-225-1852
Date of fiscal year end:    8/31/2010
Date of reporting period:    5/31/2010

 

 

 


Item 1. Schedule of Investments


Prudential California Muni Income Fund

Schedule of Investments

as of May 31, 2010 (Unaudited)

 

Description (a)

  

Moody's
Rating†*

   Interest
Rate
   

Maturity
Date

  

Principal
Amount (000)

  

Value

LONG-TERM INVESTMENTS 98.3%

             

Municipal Bonds

             

Abag Fin. Auth. For Nonprofit Corp. Rev.,

             

San Diego Hosp. Assoc., Ser. C

   A3    5.375   3/01/21    $1,665    $1,692,289

Sharp Healthcare

   A3    6.250      8/01/39    1,000    1,094,080

California County Tobacco Securitization Agy., Rev.,

             

Convertible, C.A.B.S. (Converts to 5.25% on 12/01/10)

   Baa3    6.780 (j)    6/01/21    1,000    862,670

Tobacco Conv. Bonds

   NR    5.100      6/01/28    1,035    893,360

California Edl. Facs. Auth. Rev.,

             

Calif. Inst. of Technology

   Aa1    5.000      11/01/39    2,000    2,129,820

Loyola Marymount Univ., Ser. A

   A2    5.125      10/01/40    1,000    1,012,900

Univ. Southern CA, Ser. A, Rfdg.

   Aa1    5.000      10/01/38    2,000    2,105,760

Univ. Southern CA, Ser. A, Rfdg.

   Aa1    5.250      10/01/38    1,500    1,613,070

California Health Facs. Fin. Auth. Rev.,

             

Catholic Healthcare West, Ser. A

   A2    6.000      7/01/39    2,000    2,150,640

Cedars Sinai Med. Ctr. Rfdg.

   A2    5.000      8/15/39    750    725,348

Episcopal Home, Ser. B

   A-(c)    6.000      2/01/32    1,000    1,013,080

Providence Health, Ser. C

   Aa2    6.500      10/01/38    1,000    1,130,320

Scripps Health, Ser. A

   A1    5.000      10/01/22    500    524,645

Providence Health Svcs., Ser. B

   Aa2    5.500      10/01/39    1,500    1,573,590

Scripps Health, Ser. A

   A1    5.000      11/15/36    1,000    998,520

St. Joseph Health Sys., Ser. A

   A1    5.750      7/01/39    1,000    1,043,070

California Hsg. Fin. Agy. Rev., Home Mtge.-83, Ser. A, C.A.B.S.

   A3    7.650 (j)    2/01/15    5,095    3,588,611

California Infrastructure & Econ. Dev. Rev.,

             

Bay Area Toll Brdgs.. 1st Lien (Pre-refunded date 1/01/28)(e)(f)

   AAA(c)    5.000      7/01/33    1,700    2,015,486

Bk. Rev. & Econ. Dev. Walt. Dis. Fam. Musm., Walt & Lilly Disney

   A1    5.250      2/01/38    2,000    2,025,040

California Municipal Fin. Auth. Ed. Rev. Amern.

             

Heritage Ed. Foundation Proj., Ser. A

   BBB-(c)    5.250      6/01/26    1,100    1,025,508

California Poll. Ctrl. Fin. Auth.

             

Pacific Gas-D-Rmkt. Rfdg., A.M.T., F.G.I.C.

   A3    4.750      12/01/23    2,500    2,434,825

Sld. Wste. Disp. Rev., Wste. Mgmt., Inc. Proj.,

             

Ser. B, A.M.T.

   BBB(c)    5.000      7/01/27    500    497,135

California Rural Home Mtge. Fin. Auth., Sngl.

             

Fam. Mtge. Rev., Mtge. Bkd. Secs., Ser. D,

             

F.N.M.A., G.N.M.A., A.M.T.

   AAA(c)    6.000      12/01/31    55    55,733

California St. Dept. Wtr. Res. Pwr. Rev.,

             

Central VY Proj., Ser. A

   Aa1    5.000      12/01/29    2,000    2,154,360

Central VY Proj., Ser. AF

   Aa1    5.000      12/01/29    1,500    1,621,875

Ser. L

   Aa3    5.000      5/01/20    2,000    2,263,460

California St. Econ. Recovery, Ser. A, Rfdg.

   Aa3    5.250      7/01/21    1,400    1,569,064

California St. Pub. Wks. Brd. Lease Rev.,

             

Dept. General Service, Ser. J

   A2    5.250      6/01/28    750    751,185

Var. Cap. Proj., Ser. G-1

   A2    5.750      10/01/30    750    770,663


Var. Cap. Proj., Sub. Ser. I-1

   A2    6.375      11/01/34    750    798,578

California St., F.G.I.C., T.C.R.S., G.O.

   A1    4.750      9/01/23    1,000    1,000,640

California St., G.O.

   A1    6.000      4/01/38    3,000    3,265,710

California St., G.O. Unrefunded Balance

   A1    5.500      4/01/30    5    5,119

California St., Var. Purp., G.O.

   A1    5.000      10/01/29    1,500    1,514,400

California St., Var. Purp., G.O.

   A1    5.500      11/01/39    1,000    1,024,330

California St., Var. Purp., G.O.

   A1    5.500      3/01/40    2,000    2,049,900

California St., Var. Purp., G.O.

   A1    6.000      3/01/33    1,250    1,369,050

California St., Var. Purp., G.O.

   A1    6.000      11/01/39    1,500    1,639,875

California Statewide Cmntys. Dev. Auth. Rev.,

             

Drew Sch.

   NR    5.300      10/01/37    1,000    778,080

Irvine LLC, U.C.I. East Rfdg.

   Baa2    5.000      5/15/32    2,000    1,885,500

John Muir Health

   A1    5.125      7/01/39    750    732,780

Polytechnic Sch.

   A1    5.000      12/01/34    2,000    2,012,020

Spl. Tax No. 97-1, C.A.B.S.

   NR    7.400 (j)    9/01/22    4,440    1,821,954

Sr. Living-Southn. Calif. Presbyterian Homes

   BBB(c)    7.250      11/15/41    500    543,865

St. Joseph F. Rmkt., Assured Gty.

   Aa3    5.250      7/01/21    2,500    2,734,000

Windrush Sch.

   NR    5.500      7/01/37    1,000    787,720

California Statewide Cmntys. Dev. Auth. Sch. Fac. Rev., Aspire Pub Schs.

   NR    6.000      7/01/30    1,000    1,010,620

Chico Redev. Agy. Tax Alloc., Chico Amended & Merged Redev., A.M.B.A.C.

   A+(c)    5.000      4/01/30    1,445    1,353,329

Chula Vista Calif. Indl. Dev. Rev., San Diego Gas-D-Rmkt.

   Aa3    5.875      1/01/34    1,000    1,107,160

Chula Vista Dev. Agy. Rev., Rfdg. Tax Alloc. Sub. Bayfront, Ser. B

   NR    5.250      10/01/27    1,540    1,339,939

Chula Vista Ind. Dev. Rev., San Diego Gas, A.M.T.

   Aa3    5.000      12/01/27    1,000    983,960

Coronado Cmnty. Dev. Agy. Tax Alloc., Dev. Proj., A.M.B.A.C.

   AA(c)    5.000      9/01/24    2,000    1,993,800

Corona-Norco Uni. Sch. Dist. Spl. Tax, Cmnty. Facs. Dist. No. 98-1, N.A.T.L.

   Baa1    5.000      9/01/22    1,060    1,072,943

El Dorado Cnty., Spl. Tax, Cmnty. Facs.,

             

Dist. No. 92-1

   NR    6.125      9/01/16    1,000    1,010,790

Dist. No. 92-1

   NR    6.250      9/01/29    475    472,839

El Dorado Irr. Dist. Partn., Ser. A, C.O.P., Assured Gty.

   Aa3    5.750      8/01/39    1,000    1,045,090

Elsinore Valley Municipal Water Dist. C.O.P., B.H.A.C.

   Aa1    5.000      7/01/29    750    796,058

Folsom Spl. Tax, Cmnty. Facs., Dist. No. 7, Broadstone

   NR    6.000      9/01/24    2,450    2,291,608

Folsom Spl. Tax, Unrefunded Balance, Facs. Dist. No. 10, Empire Ranch

   NR    6.875      9/01/19    1,230    1,240,332

Foothill/Eastern Trans. Corr. Agy. Rev., Toll Rd., C.A.B.S.

   Baa3    5.875      1/15/28    2,890    2,909,681

Glendale Redev. Agy. Tax Alloc., Central Glendale Redev. Proj., N.A.T.L.

   Baa1    5.250      12/01/19    3,275    3,358,644

Golden St. Tobacco Securitization Corp. Calif. Tobacco Settlement Rev.,

             

Asset-Bkd., Sr. Ser. A-1

   Baa3    5.750      6/01/47    2,500    1,824,175

Enhanced Asset Bkd., Ser. A

   A2    5.000      6/01/45    1,000    912,610

Golden St. Tobacco Securitization Rev., Asset-Bkd.,

             

Ser. 2003-A-1 (Pre-refunded date 6/01/13)(e)

   Aaa    6.750      6/01/39    2,700    3,134,484

Ser. A, Convertible C.A.B.S., A.M.B.A.C. (Converts to 4.60% on 6/1/10)

   A2    5.820 (j)    6/01/23    3,000    2,668,620


Golden West Sch. Fin. Auth. Rev., Rfdg. Ser. A., C.A.B.S., N.A.T.L.

   Baa1    5.260 (j)    2/01/19    2,110    1,353,059

Guam Govt. Ltd. Oblig. Rev., Section 30, Ser. A

   BBB-(c)    5.750      12/01/34    500    515,125

La Mesa-Spring Valley Sch. Dist., G.O., Election of 2002, Ser. B, C.A.B.S., N.A.T.L.

   Aa2    5.660 (j)    8/01/23    2,000    958,440

La Quinta Redev. Agy. Tax Alloc., Rfdg. Proj. Area No. 1, N.A.T.L.

   Baa1    7.300      9/01/11    1,000    1,064,710

Lincoln Impt. Bond Act of 1915, Pub. Rev., Fin. Auth., Twelve Bridges

   NR    6.200      9/02/25    2,525    2,537,145

Long Beach Hbr. Rev., Rfdg., Ser. A, A.M.T., N.A.T.L.

   Aa2    6.000      5/15/19    3,000    3,479,070

Long Beach Redev. Agy., Dist. No. 3, Spl. Tax Rev. Pine Ave.

   NR    6.375      9/01/23    2,775    2,777,803

Los Angeles Calif. Cmnty. College Dist., G.O.

   Aa1    5.000      8/01/33    3,250    3,342,008

Los Angeles Calif. Cmnty. College Dist., 2008 Election, Ser. A, G.O.

   Aa1    6.000      8/01/33    2,000    2,253,780

Los Angeles Calif. Dept. Arpts. Rev., Ser. A

   Aa3    5.000      5/15/34    1,000    1,031,320

Los Angeles Dept. of Wtr. & Pwr. Rev., Ser. A

   Aa3    5.000      7/01/39    1,000    1,034,540

Los Angeles Dept. of Wtr. & Pwr. Wtrwks. Rev., Ser. A

   Aa2    5.375      7/01/38    1,530    1,649,325

Metro. Wtr. Dist. of Southern Calif. Waterworks Rev.,

             

Linked, S.A.V.R.S., R.I.B.S.

   Aa1    5.750      8/10/18    2,000    2,354,480

Ser. C, Rfdg.

   Aa1    5.000      7/01/35    1,000    1,061,460

Unrefunded Balance Ser. A

   Aa1    5.750      7/01/21    2,240    2,689,187

M-S-R Energy Auth. Calif., Ser. A

   A(c)    6.500      11/01/39    1,000    1,104,250

Ontario Special Assessment Impvt. Bond Act of 1915, Assmt. Dist. 100C, Cmnty. Ctr. III

   NR    8.000      9/02/11    215    223,699

Orange Cnty. Loc. Trans. Auth., Sales Tax Rev.,

             

Linked, S.A.V.R.S. & R.I.B.S., A.M.B.A.C., T.C.R.S.

   Aa2    6.200      2/14/11    4,370    4,472,301

Spl. Tax Rev., Linked, S.A.V.R.S., R.I.B.S.(g)

   Aa2    10.926 (d)    2/14/11    1,500    1,570,230

Perris Cmnty. Facs. Dist., Spec. Tax No. 01-2 Avalon, Ser. A

   NR    6.250      9/01/23    2,000    1,926,580

Pico Rivera Wtr. Auth. Rev., Wtr. Sys. Proj., Ser. A, N.A.T.L.

   Baa1    5.500      5/01/29    1,500    1,612,230

Pittsburg Redev. Agy. Tax Alloc., Los Medanos Cmnty. Dev. Proj.,

             

A.M.B.A.C., C.A.B.S.

   NR    6.670 (j)    8/01/26    1,375    484,041

Ser. B, Assured Gty., A.M.T. (Pre-refunded date 8/01/13)(e)

   Aa3    5.800      8/01/34    2,700    3,161,889

Port Oakland, Inter. Lien, Ser. A, N.A.T.L., A.M.T., Rfdg.

   A3    5.000      11/01/29    3,000    2,808,600

Puerto Rico Comwlth. Rfdg. Pub. Impt., Ser. C, G.O.

   A3    6.000      7/01/39    400    423,224

Puerto Rico Elec. Pwr. Auth. Rev., Ser. XX

   A3    5.250      7/01/40    1,000    1,009,310

Puerto Rico Pub. Bldgs. Auth. Rev., Gtd. Rfdg., Govt. Facs., Ser. P

   A3    6.750      7/01/36    250    279,120

Puerto Rico Sales Tax Fing. Corp. Sales Tax Rev.,

             

First Sub, Ser. A

   A1    5.500      8/01/42    750    782,528

First Sub, Ser. A

   A1    5.750      8/01/37    400    425,460

First Sub, Ser. A

   A1    6.000      8/01/42    700    757,372

Rancho Mirage Jt. Pwrs. Fing. Auth. Rev., Eisenhower Med. Ctr., Ser. A

   A3    5.000      7/01/47    2,500    2,246,200


Redding Elec. Sys. Rev., C.O.P.,

             

Linked S.A.V.R.S.& R.I.B.S., N.A.T.L. Partial E.T.M.(e)

   Baa1    6.368      7/01/22    100    118,243

N.A.T.L., Partial E.T.M.(e)(g)

   Baa1    11.617 (d)    7/01/22    2,455    3,350,731

Rocklin Uni. Sch. Dist., Ser. C, G.O., C.A.B.S., N.A.T.L.

   Baa1    4.370 (j)    8/01/16    1,400    1,075,578

Sacramento City Fin. Auth., Ser. B, C.A.B.S., N.A.T.L.

   Baa1    5.510 (j)    11/01/17    5,695    3,825,331

Sacramento City Fin. Auth., Tax Alloc. Comb. Proj., Ser. B, N.A.T.L., C.A.B.S.

   Baa1    5.160 (j)    11/01/16    5,700    4,108,844

Sacramento Cnty. Santn. Dist. Fing. Auth. Rev., Var.-Regl., Ser. B, N.A.T.L.

   Aa2    0.699 (h)    12/01/35    1,000    742,500

San Bernardino Cmnty. College Dist., Election 2002, Ser. A, G.O.

   Aa2    6.250      8/01/33    1,750    1,976,555

San Diego Redev., Agy., Tax Alloc., North Bay Redev.

   A3    5.875      9/01/29    3,000    3,002,430

San Diego Regl. Bldg. Auth. Lease Rev., Ctny. Operations Ctr. & Annex A

   Aa3    5.375      2/01/36    1,000    1,061,470

San Diego Uni. Sch. Dist., Election of 1998, Ser. B, G.O., N.A.T.L.

   Aa1    6.000      7/01/19    1,000    1,223,320

San Francisco Calif. City & Cnty. Redev. Fing. Auth. Tax Alloc. Mission Bay North Redev., Ser. C

   A-(c)    6.500      8/01/39    1,000    1,078,670

San Jose Calif. Redev. Agy. Tax Allocation, Rfdg., Merged Area Redev. Proj., Hsgset. Aside, Ser. A-1

   A1    5.500      8/01/35    1,000    1,007,670

San Jose Calif., Library & Park Proj., G.O.

   Aaa    5.000      9/01/33    2,200    2,316,864

San Jose Evergreen Cmnty. College Dist. Election 2004, Ser. B, Assured Gty., G.O.

   Aa1    3.920 (j)    9/01/17    1,000    756,430

San Leandro Cmnty. Facs., Spl. Tax, Dist. No.1

   NR    6.500      9/01/25    2,160    2,126,909

San Mateo Cnty. Calif. Jt. Pwrs. Fin. Auth.

   Aa2    5.000      7/15/33    1,000    1,022,740

Santa Margarita, Dana Point Auth., Impv. Rev., Dists., 3-3A-4 & 4A, Ser. B, N.A.T.L.

   Baa1    7.250      8/01/14    2,000    2,347,060

Santa Maria Joint Union H.S. Dist., Election of 2004, C.A.B.S., G.O., N.A.T.L.

   Aa3    6.360 (j)    8/01/29    1,250    376,225

Santa Monica Cmnty. College Dist. Election 2002, Ser. A, G.O., N.A.T.L., C.A.B.S.

   Aa1    6.050 (j)    8/01/28    1,055    363,068

South Bayside Waste Mgmt. Auth. Calif. Solid Waste Enterprise Shoreway Environmental

   A3    6.000      9/01/36    500    520,845

Southern California Pub. Pwr. Auth. Rev.,

             

Palo Verde Proj., Ser. C, A.M.B.A.C., E.T.M., Rfdg., C.A.B.S.(e)

   A1    2.520 (j)    7/01/16    16,325    14,015,338

PNC G.I.C. Proj. Rev.

   A2    6.750      7/01/13    1,000    1,154,720

Sulphur Springs Uni. Sch. Dist., Ser. A, G.O., N.A.T.L., C.A.B.S.

   Baa1    1.380 (j)    9/01/11    3,000    2,948,760

Tobacco Securitization Auth. Northn. Calif. Rev., Asset-Bkd. Tobacco Settlement, Ser. A

   Baa3    5.500      6/01/45    2,000    1,406,420

Torrance Hosp. Rev., Torrance Mem. Med. Ctr., Ser. A

   A1    6.000      6/01/22    2,000    2,080,460

Tuolumne Wind Proj. Auth. Calif. Rev., Tuolumne Co. Proj., Ser. A

   A1    5.625      1/01/29    1,000    1,079,390

University Calif. Revs.,

             

Gen., Ser. Q

   Aa1    5.000      5/15/34    1,000    1,041,970

Ser. O

   Aa1    5.750      5/15/34    1,250    1,408,388

University of Calif. Rev., UCLA Med., Ctr., Ser. A, A.M.B.A.C., Unrefunded Bal.

   NR    5.250      5/15/30    1,000    999,980


Valley Health. Sys., Hosp. Rev., Impt. Proj., Ser. A(g)(i)

   C(c)    6.500    5/15/25    130    71,357

Ventura Cnty. Calif. Cmnty. College, G.O.

   Aa2    5.500    8/01/33    2,000    2,121,360

Vernon Calif. Elec. Sys. Rev., Ser. A

   A3    5.125    8/01/21    1,500    1,573,530

Virgin Islands Pub. Fin. Auth. Rev., Matching Fd. Ln., Diago, Ser. A

   Baa3    6.750    10/01/37    250    278,365
                

Total long-term investments
(cost $199,567,821)

               209,796,317
                

SHORT-TERM INVESTMENT 0.6%

              

Municipal Bond

              

Sacramento Cnty. Santn. Dist. Auth. Rev.,

              

F.R.D.D.(b)

   VMIG1    0.260    6/01/10      

(cost $1,300,000)

            1,300    1,300,000
                

Total Investments 98.9%
(cost $200,867,821)(k)

               211,096,317

Other assets in excess of liabilities(l) 1.1%

               2,313,335
                

Net Assets 100.0%

               $213,409,652
                

 

* The ratings reflected are as of May 31, 2010. Ratings of certain bonds may have changed subsequent to that date.
The Fund’s current Statement of Additional Information contains a description of Moody’s and Standard & Poor’s ratings.
a) The following abbreviations are used in the portfolio descriptions:

A.M.B.A.C.—American Municipal Bond Assurance Corporation.

A.M.T.—Alternative Minimum Tax.

B.H.A.C.—Berkshire Hathaway Assurance Corp.

C.A.B.S.—Capital Appreciation Bonds.

C.O.P.—Certificates of Participation.

E.T.M.—Escrowed to Maturity.

F.G.I.C.—Financial Guaranty Insurance Company.

F.N.M.A.—Federal National Mortgage Association.

F.R.D.D.—Floating Rate (Daily) Demand Note.

G.I.C.—Group Insurance Commission.

G.N.M.A.—Government National Mortgage Association.

G.O.—General Obligation.

N.A.T.L.—National Public Finance Guaranty Corp.

R.I.B.S.—Residual Interest Bearing Securities.

S.A.V.R.S.—Select Auction Variable Rate Securities.

T.C.R.S.—Transferable Custodial Receipts.

NR—Not Rated by Moody’s or Standard & Poor’s.

 

(b) For purposes of amortized cost valuation, the maturity date of Floating Rate Demand Notes is considered to be the later of the next date on which the security can be redeemed at par, or the next date on which the rate of interest is adjusted.
(c) Standard & Poor’s rating.
(d) Inverse floating rate bond. The coupon is inversely indexed to a floating interest rate. The rate shown is the rate at May 31, 2010.
(e) All or partial escrowed to maturity and/or pre-refunded securities are secured by escrowed cash and/or U.S. guaranteed obligations.
(f) All or portion of security segregated as collateral for financial futures contracts.
(g) Indicates a security that has been deemed illiquid.
(h) Floating Rate Security. The interest rate shown reflects the rate in effect at May 31, 2010.
(i) Represents issuer in default of interest payments.
(j) Represents a zero coupon bond or step bond. Rate shown reflects the effective yield on May 31, 2010.
(k) The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of May 31, 2010 were as follows:

 

Tax Basis  

   Appreciation    Depreciation     Net Unrealized Appreciation
$ 200,016,908    $ 14,999,615    $ (3,920,206   $ 11,079,409

The difference between book basis and tax basis was primarily attributable to the difference in the treatment of accretion of market discount.


(l) Other assets in excess of liabilities include net unrealized appreciation on financial futures contracts as follows:

Open futures contracts outstanding at May 31, 2010:

 

Number of
Contracts

  

Type

  

Expiration
Date

   Value at
Trade Date
   Value at
May 31, 2010
   Unrealized
Appreciation(1)
   Short Positions:            
91    U.S. Treasury 10 Yr. Notes    Sep. 2010    $ 10,946,236    $ 10,908,625    $ 37,611
19    U.S. Long Bond    Sep. 2010      2,371,246      2,330,469      40,777
                  
               $ 78,388
                  

 

(1) The amount represents fair value of derivative instruments subject to interest rate contracts risk exposure as of May 31, 2010.

Various inputs are used in determining the value of the Fund's investments. These inputs are summarized in the three broad levels listed below.

Level 1 - quoted prices in active markets for identical securities

Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

Level 3 - significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The following is a summary of the inputs used as of May 31, 2010 in valuing the Fund's assets carried at fair value:

 

     Level 1    Level 2    Level 3

Investments in Securities

        

Municipal Bonds

   $ —      $ 211,096,317    $ —  

Other Financial Instruments*

        

Futures Contracts

     78,388      —        —  
                    

Total

   $ 78,388    $ 211,096,317    $ —  
                    

 

* Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument.


Notes to Schedule of Investments (Unaudited)

Securities Valuations: Prudential Investment Portfolios 6/Prudential California Muni Income Fund (the “Fund”), values municipal securities (including commitments to purchase such securities on a “when-issued” basis) as of the close of trading on the New York Stock Exchange, on the basis of prices provided by a pricing service which uses information with respect to transactions in comparable securities and various relationships between securities in determining values. Financial futures contracts and options thereon traded on exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable exchange or board of trade on such day, at the mean between the most recently quoted prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Certain fixed income securities for which daily market quotations are not readily available may be valued with reference to fixed income securities whose prices are more readily available, pursuant to guidelines established by the Board of Trustees. Prices may be obtained from independent pricing services which use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics.

Securities for which reliable market quotations are not readily available, or for which the pricing service does not provide a valuation methodology, or does not present fair value, are valued at fair value in accordance with Board of Trustees’ approved fair valuation procedures. When determining the fair valuation of securities some of the factors influencing the valuation include, the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount.

The Fund invests in variable rate securities including “inverse floaters”. The interest rates on inverse floaters have an inverse relationship to the interest rate of other securities or the value of an index. Changes in interest rates on the other security or value of index inversely affect the rate paid on the inverse floater, and the inverse floater’s price will be more volatile than that of a fixed-rate bond. Additionally, some of these securities contain a “leverage factor” whereby the interest rate moves inversely by a “factor” to the benchmark rate. Certain interest rate movements and other market factors can substantially affect the liquidity of inverse floating rate notes.

Short-term debt securities of sufficient credit quality, which mature in sixty days or less are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term debt securities, which mature in more than sixty days, are valued at current market quotations.

Other information regarding the Fund is available in the Fund’s most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).


Item 2. Controls and Procedures

 

  (a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

 

  (b) There have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

 

Item 3. Exhibits

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 – Attached hereto.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Prudential Investment Portfolios 6 (f/k/a Dryden California Municipal Fund)

 

By (Signature and Title)*  

/S/    DEBORAH A. DOCS         

 
  Deborah A. Docs  
  Secretary of the Fund  

Date July 28, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*  

/S/    JUDY A. RICE        

 
  Judy A. Rice  
  President and Principal Executive Officer  

Date July 28, 2010

 

By (Signature and Title)*  

/S/    GRACE C. TORRES        

 
  Grace C. Torres  
  Treasurer and Principal Financial Officer  

Date July 28, 2010

 

* Print the name and title of each signing officer under his or her signature.