UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: | 811-03981 | |
Exact name of registrant as specified in charter: | Prudential World Fund, Inc. | |
Address of principal executive offices: | 655 Broad Street, 17th Floor | |
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Andrew R. French | |
655 Broad Street, 17th Floor | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 10/31/2021 | |
Date of reporting period: | 4/30/2021 |
Item 1 – Reports to Stockholders
PGIM QMA INTERNATIONAL EQUITY FUND
SEMIANNUAL REPORT
APRIL 30, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
Table of Contents
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9 |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2021 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. QMA is the primary business name of QMA LLC, a wholly owned subsidiary of PGIM, Inc. (PGIM), a Prudential Financial company. © 2021 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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Dear Shareholder,
We hope you find the semiannual report for the PGIM QMA International Equity Fund informative and useful. The report covers performance for the six-month period ended April 30, 2021.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM QMA International Equity Fund
June 15, 2021
PGIM QMA International Equity Fund | 3 |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
(without sales charges) | Average Annual Total Returns as of 4/30/21 (with sales charges) | |||||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | Since Inception (%) | ||||||
Class A | 28.08 | 35.51 | 7.30 | 3.78 | — | |||||
Class C | 27.26 | 40.45 | 7.53 | 3.53 | — | |||||
Class Z | 28.21 | 43.84 | 8.89 | 4.72 | — | |||||
Class R6 | 28.32 | 44.39 | N/A | N/A | 10.10 (12/28/16) | |||||
MSCI All Country World ex-US Index | ||||||||||
27.40 | 42.98 | 9.83 | 4.73 | — |
Average Annual Total Returns as of 4/30/21 Since Inception (%) | ||
Class R6 (12/28/16) | ||
MSCI All Country World ex-US Index | 10.86 |
*Not annualized
Since Inception returns are provided for any share class with less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the class’ inception date.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% | 1.00% | None | None |
Benchmark Definitions
MSCI All Country World ex-US Index—The Morgan Stanley Capital International All Country World ex-US (MSCI ACWI ex-US) Index is an unmanaged, market-capitalization weighted index designed to provide a broad measure of stock performance throughout the world, with the exception of US based companies. The MSCI ACWI ex-US Index includes both developed and emerging markets.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM QMA International Equity Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/21
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
Taiwan Semiconductor Manufacturing Co. Ltd. | Semiconductors & Semiconductor Equipment | Taiwan | 2.0% | |||
Tencent Holdings Ltd. | Interactive Media & Services | China | 1.2% | |||
Alibaba Group Holding Ltd., ADR | Internet & Direct Marketing Retail | China | 1.1% | |||
Sony Group Corp. | Household Durables | Japan | 1.0% | |||
Rio Tinto PLC | Metals & Mining | Australia | 1.0% | |||
Sanofi | Pharmaceuticals | France | 0.9% | |||
Novartis AG | Pharmaceuticals | Switzerland | 0.9% | |||
Manulife Financial Corp. | Insurance | Canada | 0.8% | |||
British American Tobacco PLC | Tobacco | United Kingdom | 0.8% | |||
Tokyo Electron Ltd. | Semiconductors & Semiconductor Equipment | Japan | 0.8% |
Holdings reflect only long-term investments and are subject to change.
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As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2021. The example is for illustrative purposes only; you should consult the Fund’s Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period
PGIM QMA International Equity Fund | 7 |
Fees and Expenses (continued)
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM QMA International Equity Fund | Beginning Account Value November 1, 2020 | Ending Account April 30, 2021 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,280.80 | 1.43 | % | $ | 8.08 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.71 | 1.43 | % | $ | 7.14 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,272.60 | 2.67 | % | $ | 15.03 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,011.56 | 2.67 | % | $ | 13.31 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,282.10 | 1.01 | % | $ | 5.70 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.80 | 1.01 | % | $ | 5.05 | ||||||||||
Class R6 | Actual | $ | 1,000.00 | $ | 1,283.20 | 0.79 | % | $ | 4.46 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.89 | 0.79 | % | $ | 3.95 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2021, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
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Schedule of Investments (unaudited)
as of April 30, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 96.9% |
| |||||||
COMMON STOCKS 95.9% |
| |||||||
Australia 5.3% |
| |||||||
Ansell Ltd. | 4,556 | $ | 148,480 | |||||
BHP Group Ltd. | 23,563 | 859,132 | ||||||
BHP Group PLC | 28,452 | 859,343 | ||||||
Charter Hall Group, REIT | 30,080 | 325,676 | ||||||
Commonwealth Bank of Australia | 2,798 | 192,222 | ||||||
Fortescue Metals Group Ltd. | 90,554 | 1,566,400 | ||||||
Goodman Group, REIT | 101,567 | 1,479,868 | ||||||
JB Hi-Fi Ltd. | 14,097 | 502,314 | ||||||
Platinum Asset Management Ltd. | 241,221 | 878,583 | ||||||
Rio Tinto Ltd. | 2,980 | 278,256 | ||||||
Rio Tinto PLC | 25,628 | 2,157,413 | ||||||
Sonic Healthcare Ltd. | 3,759 | 103,801 | ||||||
Stockland, REIT | 163,588 | 590,276 | ||||||
Super Retail Group Ltd. | 49,600 | 457,260 | ||||||
Wesfarmers Ltd. | 35,043 | 1,463,422 | ||||||
|
| |||||||
11,862,446 | ||||||||
Belgium 0.8% | ||||||||
Ageas SA/NV | 20,050 | 1,218,821 | ||||||
Etablissements Franz Colruyt NV | 3,686 | 219,069 | ||||||
Tessenderlo Group SA* | 6,220 | 266,899 | ||||||
UCB SA | 1,035 | 96,537 | ||||||
|
| |||||||
1,801,326 | ||||||||
Brazil 1.9% | ||||||||
Banco do Brasil SA | 138,800 | 753,785 | ||||||
Banco Santander Brasil SA, UTS | 123,500 | 878,270 | ||||||
Cia de Saneamento de Minas Gerais-COPASA | 117,000 | 364,006 | ||||||
Cia de Saneamento do Parana, UTS | 54,900 | 215,778 | ||||||
Petroleo Brasileiro SA | 33,100 | 141,003 | ||||||
Vale SA | 32,100 | 648,317 | ||||||
WEG SA | 198,600 | 1,269,756 | ||||||
|
| |||||||
4,270,915 | ||||||||
Canada 6.8% | ||||||||
Alimentation Couche-Tard, Inc. (Class B Stock) | 36,000 | 1,219,867 | ||||||
Bank of Montreal | 6,800 | 641,800 | ||||||
Bank of Nova Scotia (The) | 8,000 | 509,425 | ||||||
Canadian Imperial Bank of Commerce | 3,700 | 384,645 | ||||||
Canadian Natural Resources Ltd. | 22,600 | 686,007 |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 9
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
Canada (cont’d.) |
| |||||||
CGI, Inc.* | 1,900 | $ | 168,104 | |||||
Constellation Software, Inc. | 900 | 1,320,862 | ||||||
Corus Entertainment, Inc. (Class B Stock) | 204,900 | 980,199 | ||||||
Interfor Corp.* | 22,800 | 606,009 | ||||||
Magna International, Inc. | 18,400 | 1,737,682 | ||||||
Manulife Financial Corp. | 86,100 | 1,880,099 | ||||||
Metro, Inc. | 1,800 | 82,477 | ||||||
National Bank of Canada | 20,900 | 1,519,444 | ||||||
North West Co., Inc. (The) | 12,500 | 360,005 | ||||||
Quebecor, Inc. (Class B Stock) | 10,300 | 276,952 | ||||||
Royal Bank of Canada | 9,500 | 906,679 | ||||||
Sleep Country Canada Holdings, Inc., 144A | 4,700 | 132,876 | ||||||
Sun Life Financial, Inc. | 31,300 | 1,688,568 | ||||||
Toronto-Dominion Bank (The) | 2,700 | 185,616 | ||||||
|
| |||||||
15,287,316 | ||||||||
Chile 0.2% | ||||||||
Engie Energia Chile SA | 393,446 | 415,185 | ||||||
China 11.4% | ||||||||
Agile Group Holdings Ltd. | 64,000 | 100,390 | ||||||
Alibaba Group Holding Ltd., ADR* | 11,000 | 2,540,450 | ||||||
Anhui Conch Cement Co. Ltd. (Class H Stock) | 143,000 | 854,439 | ||||||
Baidu, Inc., ADR* | 2,300 | 483,759 | ||||||
Bank of China Ltd. (Class H Stock) | 2,431,000 | 967,912 | ||||||
Bank of Communications Co. Ltd. (Class H Stock) | 1,879,000 | 1,202,414 | ||||||
Beijing Enterprises Holdings Ltd. | 30,000 | 98,235 | ||||||
BYD Co. Ltd. (Class H Stock) | 7,000 | 144,780 | ||||||
China Construction Bank Corp. (Class H Stock) | 2,179,000 | 1,725,348 | ||||||
China Hongqiao Group Ltd. | 393,000 | 623,848 | ||||||
China National Building Material Co. Ltd. (Class H Stock) | 72,000 | 104,604 | ||||||
China Overseas Land & Investment Ltd. | 29,000 | 73,392 | ||||||
China Resources Power Holdings Co. Ltd. | 330,000 | 433,652 | ||||||
China Shenhua Energy Co. Ltd. (Class H Stock) | 570,000 | 1,188,813 | ||||||
China Tourism Group Duty Free Corp. Ltd. (Class A Stock) | 2,100 | 100,861 | ||||||
China Zheshang Bank Co. Ltd. (Class A Stock) | 149,000 | 90,836 | ||||||
Chlitina Holding Ltd. | 96,000 | 723,544 | ||||||
CITIC Ltd. | 1,134,000 | 1,195,229 | ||||||
COSCO SHIPPING Holdings Co. Ltd. (Class H Stock)* | 281,000 | 504,316 | ||||||
Ecovacs Robotics Co. Ltd. (Class A Stock)* | 4,100 | 103,954 | ||||||
Focus Media Information Technology Co. Ltd. (Class A Stock) | 210,600 | 350,452 | ||||||
Greenland Holdings Corp. Ltd. (Class A Stock) | 397,500 | 347,447 | ||||||
Hengan International Group Co. Ltd. | 111,500 | 722,343 |
See Notes to Financial Statements.
10
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
China (cont’d.) |
| |||||||
Hunan Valin Steel Co. Ltd. (Class A Stock) | 94,000 | $ | 113,711 | |||||
Industrial & Commercial Bank of China Ltd. (Class H Stock) | 1,146,000 | 746,166 | ||||||
Industrial Bank Co. Ltd. (Class A Stock) | 82,400 | 276,676 | ||||||
Intco Medical Technology Co. Ltd. (Class A Stock) | 13,300 | 350,075 | ||||||
Jiangsu Hengli Hydraulic Co. Ltd. (Class A Stock) | 23,800 | 315,880 | ||||||
Lenovo Group Ltd. | 76,000 | 104,253 | ||||||
Longfor Group Holdings Ltd., 144A | 15,500 | 96,575 | ||||||
Maxscend Microelectronics Co. Ltd. (Class A Stock) | 1,600 | 105,297 | ||||||
Metallurgical Corp. of China Ltd. (Class A Stock) | 197,400 | 93,790 | ||||||
Sany Heavy Industry Co. Ltd. (Class A Stock) | 55,100 | 262,361 | ||||||
Shaanxi Coal Industry Co. Ltd. (Class A Stock) | 187,300 | 325,165 | ||||||
Shenzhen Mindray Bio-Medical Electronics Co. Ltd. (Class A Stock) | 1,700 | 122,309 | ||||||
Sinofert Holdings Ltd. | 1,024,000 | 133,149 | ||||||
Sinotruk Hong Kong Ltd. | 150,000 | 369,230 | ||||||
Sohu.com Ltd., ADR* | 31,400 | 592,518 | ||||||
Sunny Optical Technology Group Co. Ltd. | 10,600 | 258,196 | ||||||
Tencent Holdings Ltd. | 33,800 | 2,716,354 | ||||||
Tianneng Power International Ltd.(a) | 568,000 | 1,043,806 | ||||||
Vipshop Holdings Ltd., ADR* | 42,100 | 1,295,417 | ||||||
Want Want China Holdings Ltd. | 664,000 | 481,483 | ||||||
Wilmar International Ltd. | 294,300 | 1,156,137 | ||||||
Zoomlion Heavy Industry Science & Technology Co. Ltd. (Class A Stock) | 79,800 | 145,344 | ||||||
|
| |||||||
25,784,910 | ||||||||
Denmark 1.1% | ||||||||
AP Moller - Maersk A/S (Class B Stock) | 545 | 1,352,621 | ||||||
Scandinavian Tobacco Group A/S, 144A | 56,090 | 1,022,483 | ||||||
|
| |||||||
2,375,104 | ||||||||
Finland 1.7% | ||||||||
Elisa OYJ | 1,554 | 88,222 | ||||||
Fortum OYJ | 39,865 | 1,048,702 | ||||||
Neste OYJ | 18,559 | 1,121,510 | ||||||
Nordea Bank Abp | 154,917 | 1,607,785 | ||||||
|
| |||||||
3,866,219 | ||||||||
France 5.0% | ||||||||
Amundi SA, 144A* | 3,486 | 310,486 | ||||||
BNP Paribas SA* | 27,363 | 1,749,208 | ||||||
Cie de Saint-Gobain* | 28,092 | 1,768,069 |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 11
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
France (cont’d.) |
| |||||||
Credit Agricole SA* | 9,541 | $ | 147,042 | |||||
Hermes International | 189 | 236,894 | ||||||
IPSOS | 2,184 | 90,817 | ||||||
La Francaise des Jeux SAEM, 144A | 2,058 | 105,444 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 1,106 | 831,375 | ||||||
Metropole Television SA* | 7,770 | 173,020 | ||||||
Orange SA | 16,776 | 208,900 | ||||||
Publicis Groupe SA | 1,340 | 86,600 | ||||||
Sanofi | 19,639 | 2,060,018 | ||||||
Sartorius Stedim Biotech | 3,172 | 1,456,905 | ||||||
Schneider Electric SE | 4,150 | 662,680 | ||||||
Television Francaise 1* | 49,958 | 492,479 | ||||||
Trigano SA | 4,711 | 842,111 | ||||||
|
| |||||||
11,222,048 | ||||||||
Germany 5.2% | ||||||||
BASF SE | 2,322 | 187,203 | ||||||
Brenntag SE | 13,948 | 1,253,316 | ||||||
Covestro AG, 144A | 2,995 | 195,996 | ||||||
CropEnergies AG | 28,133 | 361,376 | ||||||
Daimler AG | 19,581 | 1,744,462 | ||||||
Deutsche Post AG | 30,055 | 1,767,104 | ||||||
Deutsche Telekom AG | 5,787 | 111,429 | ||||||
Deutsche Wohnen SE | 18,695 | 1,009,550 | ||||||
Fresenius Medical Care AG & Co. KGaA | 13,059 | 1,039,123 | ||||||
Fresenius SE & Co. KGaA | 23,856 | 1,172,710 | ||||||
HeidelbergCement AG | 1,274 | 116,717 | ||||||
HelloFresh SE* | 1,203 | 99,815 | ||||||
Hornbach Baumarkt AG | 7,972 | 318,800 | ||||||
Merck KGaA | 1,059 | 186,251 | ||||||
ProSiebenSat.1 Media SE* | 15,407 | 334,198 | ||||||
SAP SE | 10,013 | 1,401,088 | ||||||
Vonovia SE | 4,190 | 275,598 | ||||||
Zalando SE, 144A* | 1,056 | 109,467 | ||||||
|
| |||||||
11,684,203 | ||||||||
Hong Kong 1.8% | ||||||||
CK Asset Holdings Ltd. | 21,500 | 134,819 | ||||||
Henderson Land Development Co. Ltd. | 48,000 | 213,524 | ||||||
K Wah International Holdings Ltd. | 183,000 | 91,140 | ||||||
Sun Hung Kai Properties Ltd. | 64,000 | 965,596 | ||||||
Techtronic Industries Co. Ltd. | 64,000 | 1,163,404 | ||||||
Value Partners Group Ltd. | 954,000 | 677,558 |
See Notes to Financial Statements.
12
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
Hong Kong (cont’d.) |
| |||||||
Vinda International Holdings Ltd.(a) | 164,000 | $ | 583,701 | |||||
VTech Holdings Ltd. | 16,000 | 146,864 | ||||||
Xinyi Glass Holdings Ltd. | 28,000 | 99,345 | ||||||
|
| |||||||
4,075,951 | ||||||||
India 2.4% | ||||||||
Bajaj Consumer Care Ltd. | 233,950 | 887,832 | ||||||
GAIL India Ltd. | 45,589 | 84,722 | ||||||
Larsen & Toubro Infotech Ltd., 144A | 20,874 | 1,098,065 | ||||||
Motherson Sumi Systems Ltd.* | 33,243 | 96,510 | ||||||
NTPC Ltd. | 66,339 | 91,908 | ||||||
Oil & Natural Gas Corp. Ltd. | 825,061 | 1,204,865 | ||||||
Power Grid Corp. of India Ltd. | 146,206 | 434,257 | ||||||
Sun Pharmaceutical Industries Ltd. | 10,710 | 94,894 | ||||||
Wipro Ltd. | 230,120 | 1,527,705 | ||||||
|
| |||||||
5,520,758 | ||||||||
Indonesia 0.1% | ||||||||
First Pacific Co. Ltd. | 336,000 | 115,033 | ||||||
Italy 0.8% | ||||||||
Assicurazioni Generali SpA | 21,278 | 426,887 | ||||||
Buzzi Unicem SpA | 38,955 | 1,043,237 | ||||||
Snam SpA | 16,737 | 94,182 | ||||||
Unipol Gruppo SpA* | 46,657 | 255,543 | ||||||
|
| |||||||
1,819,849 | ||||||||
Japan 14.0% | ||||||||
77 Bank Ltd. (The) | 39,400 | 494,100 | ||||||
BayCurrent Consulting, Inc. | 900 | 245,117 | ||||||
Capcom Co. Ltd. | 3,000 | 97,601 | ||||||
Chiba Bank Ltd. (The) | 14,000 | 87,427 | ||||||
Chubu Electric Power Co., Inc. | 6,100 | 73,710 | ||||||
Chugai Pharmaceutical Co. Ltd. | 5,500 | 206,862 | ||||||
Daito Trust Construction Co. Ltd. | 900 | 95,704 | ||||||
Digital Holding, Inc. | 5,600 | 96,204 | ||||||
EDION Corp. | 16,400 | 174,306 | ||||||
FUJIFILM Holdings Corp. | 16,400 | 1,063,870 | ||||||
Fujitsu Ltd. | 9,400 | 1,495,823 | ||||||
Funai Soken Holdings, Inc. | 5,000 | 88,577 | ||||||
GungHo Online Entertainment, Inc. | 3,400 | 64,949 | ||||||
Hitachi Ltd. | 8,000 | 393,612 |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 13
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
Japan (cont’d.) |
| |||||||
Hoya Corp. | 3,100 | $ | 352,513 | |||||
ITMEDIA INC | 5,200 | 91,577 | ||||||
ITOCHU Corp. | 49,100 | 1,530,418 | ||||||
Japan Post Holdings Co. Ltd.* | 13,000 | 109,243 | ||||||
Japan Real Estate Investment Corp., REIT | 15 | 93,002 | ||||||
Japan Tobacco, Inc. | 64,100 | 1,198,650 | ||||||
KDDI Corp. | 16,300 | 492,434 | ||||||
Konami Holdings Corp. | 1,400 | 83,378 | ||||||
Marubeni Corp. | 13,200 | 109,854 | ||||||
MCJ Co. Ltd. | 82,500 | 750,228 | ||||||
Medipal Holdings Corp. | 16,400 | 301,166 | ||||||
Mitsubishi Estate Co. Ltd. | 10,000 | 164,455 | ||||||
Mitsui & Co. Ltd. | 72,200 | 1,522,858 | ||||||
MonotaRO Co. Ltd. | 5,300 | 134,772 | ||||||
Murata Manufacturing Co. Ltd. | 11,400 | 906,396 | ||||||
Nintendo Co. Ltd. | 3,000 | 1,726,876 | ||||||
Nippon Telegraph & Telephone Corp. | 30,668 | 772,544 | ||||||
Nishi-Nippon Financial Holdings, Inc. | 53,000 | 341,439 | ||||||
Nitori Holdings Co. Ltd. | 6,300 | 1,128,231 | ||||||
Nitto Denko Corp. | 1,200 | 99,461 | ||||||
Nitto Kogyo Corp. | 8,400 | 148,107 | ||||||
Nomura Holdings, Inc. | 93,800 | 504,275 | ||||||
Nomura Research Institute Ltd. | 2,900 | 89,150 | ||||||
Obic Co. Ltd. | 800 | 154,597 | ||||||
Okamura Corp. | 16,800 | 208,913 | ||||||
Ono Pharmaceutical Co. Ltd. | 34,300 | 863,877 | ||||||
ORIX Corp. | 10,600 | 170,912 | ||||||
Orix JREIT, Inc., REIT | 50 | 88,513 | ||||||
Otsuka Holdings Co. Ltd. | 31,900 | 1,226,322 | ||||||
Panasonic Corp. | 107,100 | 1,260,075 | ||||||
Relia, Inc. | 16,500 | 196,341 | ||||||
Renesas Electronics Corp.* | 7,700 | 89,251 | ||||||
Secom Co. Ltd. | 7,800 | 649,700 | ||||||
Sekisui House Ltd. | 5,800 | 117,240 | ||||||
SG Holdings Co. Ltd. | 24,200 | 550,406 | ||||||
Shimadzu Corp. | 2,600 | 91,054 | ||||||
Shimano, Inc. | 5,600 | 1,282,779 | ||||||
Shionogi & Co. Ltd. | 18,400 | 969,372 | ||||||
SMC Corp. | 300 | 174,142 | ||||||
SoftBank Corp. | 40,900 | 526,786 | ||||||
Sony Group Corp. | 23,100 | 2,289,451 | ||||||
Sumitomo Mitsui Financial Group, Inc. | 10,500 | 366,178 | ||||||
Sumitomo Realty & Development Co. Ltd. | 2,400 | 79,879 | ||||||
T&D Holdings, Inc. | 7,500 | 92,265 |
See Notes to Financial Statements.
14
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
Japan (cont’d.) |
| |||||||
Takeda Pharmaceutical Co. Ltd. | 13,100 | $ | 436,565 | |||||
Tokyo Electron Ltd. | 4,100 | 1,807,286 | ||||||
Toyota Industries Corp. | 1,300 | 104,048 | ||||||
Toyota Motor Corp. | 2,733 | 203,684 | ||||||
Yamato Holdings Co. Ltd. | 3,300 | 93,197 | ||||||
ZOZO, Inc. | 7,100 | 240,191 | ||||||
|
| |||||||
31,661,913 | ||||||||
Luxembourg 0.7% | ||||||||
ArcelorMittal SA* | 8,848 | 258,480 | ||||||
Eurofins Scientific SE* | 12,769 | 1,265,144 | ||||||
|
| |||||||
1,523,624 | ||||||||
Malaysia 0.8% | ||||||||
Comfort Glove Bhd | 191,400 | 129,485 | ||||||
Hartalega Holdings Bhd | 108,000 | 271,084 | ||||||
Public Bank Bhd | 120,400 | 122,120 | ||||||
Top Glove Corp. Bhd | 928,300 | 1,280,021 | ||||||
|
| |||||||
1,802,710 | ||||||||
Malta 0.4% | ||||||||
Kindred Group PLC, SDR* | 53,749 | 933,526 | ||||||
Mexico 0.8% | ||||||||
Grupo Mexico SAB de CV (Class B Stock) | 234,300 | 1,062,718 | ||||||
Kimberly-Clark de Mexico SAB de CV (Class A Stock) | 490,300 | 849,802 | ||||||
|
| |||||||
1,912,520 | ||||||||
Netherlands 3.1% | ||||||||
Adyen NV, 144A* | 148 | 362,956 | ||||||
ASM International NV | 2,430 | 734,375 | ||||||
ASML Holding NV | 1,468 | 953,112 | ||||||
BE Semiconductor Industries NV | 1,770 | 142,774 | ||||||
Koninklijke Ahold Delhaize NV | 54,020 | 1,452,917 | ||||||
NN Group NV | 28,449 | 1,423,166 | ||||||
Randstad NV | 16,704 | 1,206,194 | ||||||
Royal Dutch Shell PLC (Class A Stock) | 35,334 | 664,054 | ||||||
|
| |||||||
6,939,548 |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 15
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
New Zealand 0.1% |
| |||||||
Fisher & Paykel Healthcare Corp. Ltd. | 5,866 | $ | 150,936 | |||||
Norway 0.1% | ||||||||
DNB ASA | 6,206 | 133,074 | ||||||
Gjensidige Forsikring ASA | 3,969 | 90,379 | ||||||
|
| |||||||
223,453 | ||||||||
Pakistan 0.2% | ||||||||
Engro Fertilizers Ltd. | 397,359 | 173,626 | ||||||
Fauji Fertilizer Co. Ltd. | 536,500 | 368,585 | ||||||
|
| |||||||
542,211 | ||||||||
Poland 0.3% | ||||||||
Polskie Gornictwo Naftowe i Gazownictwo SA | 321,461 | 557,394 | ||||||
Qatar 0.1% | ||||||||
Industries Qatar QSC | 29,526 | 109,116 | ||||||
Masraf Al Rayan QSC | 74,464 | 91,328 | ||||||
|
| |||||||
200,444 | ||||||||
Russia 1.7% | ||||||||
Inter RAO UES PJSC | 13,660,000 | 893,035 | ||||||
Magnit PJSC, GDR | 6,027 | 85,091 | ||||||
Novolipetsk Steel PJSC | 32,130 | 113,597 | ||||||
Rosneft Oil Co. PJSC | 171,520 | 1,199,661 | ||||||
Sberbank of Russia PJSC | 389,949 | 1,543,121 | ||||||
|
| |||||||
3,834,505 | ||||||||
Saudi Arabia 0.1% | ||||||||
Al Rajhi Bank | 9,898 | 260,993 | ||||||
Singapore 1.6% | ||||||||
BW LPG Ltd., 144A | 165,743 | 1,229,744 | ||||||
DBS Group Holdings Ltd. | 80,000 | 1,797,336 | ||||||
Oversea-Chinese Banking Corp. Ltd. | 72,600 | 664,527 | ||||||
|
| |||||||
3,691,607 | ||||||||
South Africa 2.8% | ||||||||
Anglo American Platinum Ltd. | 11,456 | 1,571,119 | ||||||
Anglo American PLC | 31,618 | 1,340,487 |
See Notes to Financial Statements.
16
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
South Africa (cont’d.) |
| |||||||
Impala Platinum Holdings Ltd. | 47,172 | $ | 884,698 | |||||
Investec PLC | 109,341 | 437,960 | ||||||
Kumba Iron Ore Ltd. | 11,229 | 510,074 | ||||||
Mr. Price Group Ltd. | 79,200 | 994,726 | ||||||
Telkom SA SOC Ltd. | 92,176 | 249,737 | ||||||
Vodacom Group Ltd. | 47,817 | 414,456 | ||||||
|
| |||||||
6,403,257 | ||||||||
South Korea 4.8% | ||||||||
BNK Financial Group, Inc. | 55,149 | 380,144 | ||||||
DGB Financial Group, Inc. | 12,464 | 99,327 | ||||||
Hana Financial Group, Inc. | 40,883 | 1,678,403 | ||||||
KB Financial Group, Inc. | 29,982 | 1,478,861 | ||||||
Kia Corp. | 19,279 | 1,331,600 | ||||||
KT&G Corp. | 2,128 | 157,555 | ||||||
Kumho Petrochemical Co. Ltd. | 2,124 | 497,080 | ||||||
LG Electronics, Inc. | 7,889 | 1,115,024 | ||||||
POSCO | 1,226 | 399,172 | ||||||
Samsung Electro-Mechanics Co. Ltd. | 525 | 84,416 | ||||||
Samsung Electronics Co. Ltd. | 22,822 | 1,670,168 | ||||||
SK Hynix, Inc. | 4,692 | 538,659 | ||||||
SK Telecom Co. Ltd. | 5,282 | 1,440,351 | ||||||
|
| |||||||
10,870,760 | ||||||||
Spain 1.0% | ||||||||
Endesa SA | 45,884 | 1,207,455 | ||||||
Faes Farma SA | 29,240 | 122,106 | ||||||
Pharma Mar SA | 7,585 | 868,705 | ||||||
|
| |||||||
2,198,266 | ||||||||
Sweden 2.0% | ||||||||
Atlas Copco AB (Class B Stock) | 3,502 | 181,399 | ||||||
Epiroc AB (Class A Stock) | 35,938 | 777,990 | ||||||
Evolution Gaming Group AB, 144A | 9,110 | 1,803,039 | ||||||
Husqvarna AB (Class B Stock) | 40,502 | 564,400 | ||||||
Investor AB (Class B Stock) | 3,714 | 315,410 | ||||||
Sandvik AB | 16,225 | 400,536 | ||||||
Svenska Handelsbanken AB (Class A Stock) | 41,040 | 475,645 | ||||||
Swedish Match AB | 1,113 | 91,310 | ||||||
|
| |||||||
4,609,729 |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 17
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
Switzerland 5.6% |
| |||||||
ABB Ltd. | 44,453 | $ | 1,444,895 | |||||
ALSO Holding AG* | 1,126 | 341,901 | ||||||
Chocoladefabriken Lindt & Spruengli AG* | 1 | 98,809 | ||||||
Geberit AG | 1,128 | 741,733 | ||||||
Kuehne + Nagel International AG | 4,284 | 1,282,007 | ||||||
LafargeHolcim Ltd.* | 4,316 | 266,164 | ||||||
Logitech International SA | 12,761 | 1,425,142 | ||||||
Nestle SA | 13,388 | 1,597,463 | ||||||
Novartis AG | 23,967 | 2,046,289 | ||||||
Roche Holding AG | 2,925 | 953,693 | ||||||
Sonova Holding AG* | 448 | 132,532 | ||||||
STMicroelectronics NV | 17,974 | 671,599 | ||||||
UBS Group AG | 111,696 | 1,699,024 | ||||||
|
| |||||||
12,701,251 | ||||||||
Taiwan 4.9% | ||||||||
ASE Technology Holding Co. Ltd. | 27,000 | 113,423 | ||||||
Asustek Computer, Inc. | 9,000 | 120,555 | ||||||
Cathay Financial Holding Co. Ltd. | 66,000 | 123,393 | ||||||
China General Plastics Corp. | 298,000 | 464,750 | ||||||
CTBC Financial Holding Co. Ltd. | 120,000 | 97,779 | ||||||
Evergreen Marine Corp. Taiwan Ltd.* | 54,000 | 153,475 | ||||||
Fubon Financial Holding Co. Ltd. | 402,000 | 919,400 | ||||||
Giant Manufacturing Co. Ltd. | 10,000 | 127,711 | ||||||
Grand Pacific Petrochemical* | 184,000 | 221,199 | ||||||
Hon Hai Precision Industry Co. Ltd. | 370,000 | 1,523,974 | ||||||
King’s Town Bank Co. Ltd. | 72,000 | 111,486 | ||||||
Lite-On Technology Corp. | 386,000 | 883,035 | ||||||
MediaTek, Inc. | 16,000 | 679,045 | ||||||
Novatek Microelectronics Corp. | 6,000 | 133,683 | ||||||
Quanta Computer, Inc. | 75,000 | 263,048 | ||||||
Taiwan Paiho Ltd. | 26,000 | 90,293 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd. | 217,000 | 4,593,347 | ||||||
United Microelectronics Corp. | 208,000 | 417,538 | ||||||
Yuanta Financial Holding Co. Ltd. | 120,000 | 111,252 | ||||||
|
| |||||||
11,148,386 | ||||||||
Thailand 0.3% | ||||||||
Charoen Pokphand Foods PCL | 272,500 | 253,888 | ||||||
Sri Trang Agro-Industry PCL | 246,000 | 374,813 | ||||||
|
| |||||||
628,701 |
See Notes to Financial Statements.
18
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) |
| |||||||
Turkey 0.7% |
| |||||||
Anadolu Efes Biracilik Ve Malt Sanayii A/S | 42,630 | $ | 120,434 | |||||
Coca-Cola Icecek A/S | 107,736 | 1,028,004 | ||||||
Enerjisa Enerji A/S, 144A | 416,363 | 519,523 | ||||||
|
| |||||||
1,667,961 | ||||||||
United Arab Emirates 0.0% | ||||||||
First Abu Dhabi Bank PJSC | 23,254 | 90,122 | ||||||
United Kingdom 4.5% | ||||||||
3i Group PLC | 70,514 | 1,248,373 | ||||||
888 Holdings PLC | 39,780 | 235,747 | ||||||
Ashtead Group PLC | 1,677 | 107,866 | ||||||
Aviva PLC | 188,508 | 1,038,974 | ||||||
Barratt Developments PLC | 8,883 | 94,670 | ||||||
British American Tobacco PLC | 48,942 | 1,815,373 | ||||||
BT Group PLC* | 370,946 | 845,019 | ||||||
GlaxoSmithKline PLC | 39,288 | 728,535 | ||||||
Halfords Group PLC* | 49,736 | 261,406 | ||||||
Imperial Brands PLC | 51,201 | 1,069,129 | ||||||
JD Sports Fashion PLC* | 7,694 | 97,716 | ||||||
Kingfisher PLC* | 244,067 | 1,204,495 | ||||||
Legal & General Group PLC | 76,694 | 287,325 | ||||||
Tesco PLC | 41,788 | 127,592 | ||||||
Vodafone Group PLC | 566,950 | 1,072,058 | ||||||
|
| |||||||
10,234,278 | ||||||||
United States 0.8% | ||||||||
Ferguson PLC | 13,825 | 1,750,826 | ||||||
JBS SA | 17,600 | 97,849 | ||||||
|
| |||||||
1,848,675 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 216,738,033 | |||||||
|
| |||||||
EXCHANGE-TRADED FUND 0.3% | ||||||||
United States | ||||||||
iShares MSCI EAFE ETF | 8,896 | 694,867 | ||||||
|
|
See Notes to Financial Statements.
PGIM QMA International Equity Fund 19
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
PREFERRED STOCKS 0.7% |
| |||||||
Brazil 0.4% |
| |||||||
Cia Paranaense de Energia (PRFC B) | 232,000 | $ | 269,497 | |||||
Itausa SA (PRFC) | 48,300 | 89,539 | ||||||
Petroleo Brasileiro SA (PRFC) | 120,400 | 524,861 | ||||||
|
| |||||||
883,897 | ||||||||
Germany 0.1% | ||||||||
Henkel AG & Co. KGaA (PRFC) | 1,480 | 170,082 | ||||||
Volkswagen AG (PRFC) | 315 | 81,944 | ||||||
|
| |||||||
252,026 | ||||||||
South Korea 0.2% | ||||||||
Samsung Electronics Co. Ltd. (PRFC) | 6,811 | 448,549 | ||||||
|
| |||||||
TOTAL PREFERRED STOCKS | 1,584,472 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 219,017,372 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 2.8% | ||||||||
AFFILIATED MUTUAL FUNDS 2.6% | ||||||||
PGIM Core Ultra Short Bond Fund(wa) | 4,120,303 | 4,120,303 | ||||||
PGIM Institutional Money Market Fund | 1,706,484 | 1,705,631 | ||||||
|
| |||||||
TOTAL AFFILIATED MUTUAL FUNDS | 5,825,934 | |||||||
|
|
See Notes to Financial Statements.
20
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
U.S. TREASURY OBLIGATION(k)(n) 0.2% | ||||||||||||||||
U.S. Treasury Bills | 0.035% | 09/16/21 | 500 | $ | 499,981 | |||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS | 6,325,915 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS 99.7% | 225,343,287 | |||||||||||||||
Other assets in excess of liabilities(z) 0.3% | 761,191 | |||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 226,104,478 | ||||||||||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
USD—US Dollar
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
ADR—American Depositary Receipt
EAFE—Europe, Australasia, Far East
ETF—Exchange-Traded Fund
GDR—Global Depositary Receipt
LIBOR—London Interbank Offered Rate
MSCI—Morgan Stanley Capital International
PJSC—Public Joint-Stock Company
PRFC—Preference Shares
REITs—Real Estate Investment Trust
SDR—Sweden Depositary Receipt
UTS—Unit Trust Security
* | Non-income producing security. |
# | Principal amount is shown in U.S. dollars unless otherwise stated. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $1,621,297; cash collateral of $1,705,497 (included in liabilities) was received with which the Series purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Series may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
(n) | Rate shown reflects yield to maturity at purchased date. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
(z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 21
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Futures contracts outstanding at April 30, 2021:
Number of Contracts | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | ||||||||||||||||||||
Long Positions: | ||||||||||||||||||||||||
35 | Mini MSCI EAFE Index | Jun. 2021 | $ | 3,950,275 | $ | (45,101 | ) | |||||||||||||||||
32 | Mini MSCI Emerging Markets Index | Jun. 2021 | 2,138,560 | (11,983 | ) | |||||||||||||||||||
|
| |||||||||||||||||||||||
$ | (57,084 | ) | ||||||||||||||||||||||
|
|
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
Broker | Cash and/or Foreign Currency | Securities Market Value | ||||||||||||||||||||
Goldman Sachs & Co. LLC | $ | — | $499,981 | |||||||||||||||||||
|
|
|
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||||
Investments in Securities | ||||||||||||||
Assets | ||||||||||||||
Common Stocks | ||||||||||||||
Australia | $ | — | $ | 11,862,446 | $— | |||||||||
Belgium | — | 1,801,326 | — | |||||||||||
Brazil | 4,270,915 | — | — | |||||||||||
Canada | 15,287,316 | — | — | |||||||||||
Chile | 415,185 | — | — | |||||||||||
China | 4,912,144 | 20,872,766 | — | |||||||||||
Denmark | — | 2,375,104 | — | |||||||||||
Finland | — | 3,866,219 | — | |||||||||||
France | — | 11,222,048 | — | |||||||||||
Germany | — | 11,684,203 | — | |||||||||||
Hong Kong | — | 4,075,951 | — | |||||||||||
India | — | 5,520,758 | — |
See Notes to Financial Statements.
22
Level 1 | Level 2 | Level 3 | ||||||||||||||
Investments in Securities (continued) |
| |||||||||||||||
Assets (continued) |
| |||||||||||||||
Common Stocks (continued) |
| |||||||||||||||
Indonesia | $ | — | $ | 115,033 | $ | — | ||||||||||
Italy | — | 1,819,849 | — | |||||||||||||
Japan | — | 31,661,913 | — | |||||||||||||
Luxembourg | — | 1,523,624 | — | |||||||||||||
Malaysia | — | 1,802,710 | — | |||||||||||||
Malta | — | 933,526 | — | |||||||||||||
Mexico | 1,912,520 | — | — | |||||||||||||
Netherlands | — | 6,939,548 | — | |||||||||||||
New Zealand | — | 150,936 | — | |||||||||||||
Norway | — | 223,453 | — | |||||||||||||
Pakistan | — | 542,211 | — | |||||||||||||
Poland | — | 557,394 | — | |||||||||||||
Qatar | — | 200,444 | — | |||||||||||||
Russia | — | 3,834,505 | — | |||||||||||||
Saudi Arabia | — | 260,993 | — | |||||||||||||
Singapore | — | 3,691,607 | — | |||||||||||||
South Africa | — | 6,403,257 | — | |||||||||||||
South Korea | — | 10,870,760 | — | |||||||||||||
Spain | — | 2,198,266 | — | |||||||||||||
Sweden | — | 4,609,729 | — | |||||||||||||
Switzerland | — | 12,701,251 | — | |||||||||||||
Taiwan | — | 11,148,386 | — | |||||||||||||
Thailand | — | 628,701 | — | |||||||||||||
Turkey | — | 1,667,961 | — | |||||||||||||
United Arab Emirates | — | 90,122 | — | |||||||||||||
United Kingdom | — | 10,234,278 | — | |||||||||||||
United States | 97,849 | 1,750,826 | — | |||||||||||||
Exchange-Traded Fund | ||||||||||||||||
United States | 694,867 | — | — | |||||||||||||
Preferred Stocks | ||||||||||||||||
Brazil | 883,897 | — | — | |||||||||||||
Germany | — | 252,026 | — | |||||||||||||
South Korea | — | 448,549 | — | |||||||||||||
Affiliated Mutual Funds | 5,825,934 | — | — | |||||||||||||
U.S. Treasury Obligation | — | 499,981 | — | |||||||||||||
|
|
|
|
|
| |||||||||||
Total | $ | 34,300,627 | $ | 191,042,660 | $ | — | ||||||||||
|
|
|
|
| ||||||||||||
Other Financial Instruments* | ||||||||||||||||
Liabilities | ||||||||||||||||
Futures Contracts | $ | (57,084 | ) | $ | — | $ | — | |||||||||
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 23
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2021 were as follows:
Banks | 11.0 | % | ||
Metals & Mining | 6.0 | |||
Semiconductors & Semiconductor Equipment | 4.7 | |||
Pharmaceuticals | 4.4 | |||
Insurance | 4.1 | |||
Oil, Gas & Consumable Fuels | 4.0 | |||
Technology Hardware, Storage & Peripherals | 3.0 | |||
Trading Companies & Distributors | 3.0 | |||
Affiliated Mutual Funds (0.8% represents investments purchased with collateral from securities on loan) | 2.6 | |||
Capital Markets | 2.6 | |||
Household Durables | 2.5 | |||
Tobacco | 2.4 | |||
IT Services | 2.3 | |||
Specialty Retail | 2.2 | |||
Electric Utilities | 2.1 | |||
Automobiles | 2.0 | |||
Internet & Direct Marketing Retail | 1.8 | |||
Wireless Telecommunication Services | 1.7 | |||
Interactive Media & Services | 1.7 | |||
Machinery | 1.7 | |||
Electronic Equipment, Instruments & Components | 1.7 | |||
Auto Components | 1.7 | |||
Food & Staples Retailing | 1.6 | |||
Electrical Equipment | 1.6 | |||
Food Products | 1.5 | |||
Marine | 1.5 | |||
Health Care Equipment & Supplies | 1.5 | |||
Real Estate Management & Development | 1.4 | |||
Hotels, Restaurants & Leisure | 1.4 | |||
Chemicals | 1.3 | |||
Life Sciences Tools & Services | 1.2 | |||
Software | 1.2 | |||
Construction Materials | 1.2 |
Media | 1.1 | % | ||
Health Care Providers & Services | 1.1 | |||
Building Products | 1.1 | |||
Equity Real Estate Investment Trusts (REITs) | 1.1 | |||
Air Freight & Logistics | 1.1 | |||
Personal Products | 1.0 | |||
Diversified Telecommunication Services | 1.0 | |||
Entertainment | 0.8 | |||
Household Products | 0.8 | |||
Leisure Products | 0.7 | |||
Professional Services | 0.6 | |||
Multiline Retail | 0.6 | |||
Industrial Conglomerates | 0.6 | |||
Textiles, Apparel & Luxury Goods | 0.5 | |||
Beverages | 0.5 | |||
Commercial Services & Supplies | 0.5 | |||
Biotechnology | 0.4 | |||
Diversified Financial Services | 0.3 | |||
Exchange-Traded Fund | 0.3 | |||
Paper & Forest Products | 0.3 | |||
Water Utilities | 0.2 | |||
Independent Power & Renewable Electricity Producers | 0.2 | |||
U.S. Treasury Obligation | 0.2 | |||
Communications Equipment | 0.1 | |||
Gas Utilities | 0.0 | * | ||
Construction & Engineering | 0.0 | * | ||
|
| |||
99.7 | ||||
Other assets in excess of liabilities | 0.3 | |||
|
| |||
100.0 | % | |||
|
|
* | Less than +/- 0.05% |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Series invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is equity contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Series’ financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the
See Notes to Financial Statements.
24
summary below.
Fair values of derivative instruments as of April 30, 2021 as presented in the Statement of Assets and Liabilities:
Asset Derivatives | Liability Derivatives | |||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||||||||
Equity contracts | — | $ | — | Due from/to broker-variation margin futures | $ | 57,084 | * | |||||||||||
|
|
|
|
* | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2021 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||
Derivatives not accounted for as hedging instruments, carried at fair value | Futures | |
Equity contracts | $8,610 | |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||
Derivatives not accounted for as hedging instruments, carried at fair value | Futures | |
Equity contracts | $(57,084) |
For the six months ended April 30, 2021, the Series’ average volume of derivative activities is as follows:
Futures Contracts— Long Positions(1) | ||||
$2,811,593 |
(1) | Notional Amount in USD. |
Average volume is based on average quarter end balances as noted for the six months ended April 30, 2021.
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Series entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit
See Notes to Financial Statements.
PGIM QMA International Equity Fund 25
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | ||||||||||||
Securities on Loan | $ | 1,621,297 | $ | (1,621,297 | ) | $ | — | ||||||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Series is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
26
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Assets | ||||
Investments at value, including securities on loan of $1,621,297: | ||||
Unaffiliated investments (cost $175,837,776) | $ | 219,517,353 | ||
Affiliated investments (cost $5,825,934) | 5,825,934 | |||
Foreign currency, at value (cost $1,360,697) | 1,357,322 | |||
Receivable for investments sold | 8,330,135 | |||
Dividends receivable | 646,338 | |||
Tax reclaim receivable | 618,803 | |||
Receivable for Series shares sold | 355,298 | |||
Prepaid expenses | 2,038 | |||
|
| |||
Total Assets | 236,653,221 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 7,777,301 | |||
Payable to broker for collateral for securities on loan | 1,705,497 | |||
Payable for Series shares purchased | 413,117 | |||
Foreign capital gains tax liability accrued | 219,231 | |||
Management fee payable | 116,199 | |||
Accrued expenses and other liabilities | 104,134 | |||
Due to broker—variation margin futures | 89,955 | |||
Affiliated transfer agent fee payable | 75,831 | |||
Distribution fee payable | 46,437 | |||
Directors’ fees payable | 1,041 | |||
|
| |||
Total Liabilities | 10,548,743 | |||
|
| |||
Net Assets | $ | 226,104,478 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 265,355 | ||
Paid-in capital in excess of par | 173,587,591 | |||
Total distributable earnings (loss) | 52,251,532 | |||
|
| |||
Net assets, April 30, 2021 | $ | 226,104,478 | ||
|
|
See Notes to Financial Statements.
PGIM QMA International Equity Fund 27
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Class A | ||||||||||
Net asset value and redemption price per share, ($180,322,958 ÷ 21,188,320 shares of common stock issued and outstanding) | $8.51 | |||||||||
Maximum sales charge (5.50% of offering price) | 0.50 | |||||||||
|
| |||||||||
Maximum offering price to public | $9.01 | |||||||||
|
| |||||||||
Class C | ||||||||||
Net asset value, offering price and redemption price per share, ($2,359,537 ÷ 291,532 shares of common stock issued and outstanding) | $8.09 | |||||||||
|
| |||||||||
Class Z | ||||||||||
Net asset value, offering price and redemption price per share, ($19,236,686 ÷ 2,241,016 shares of common stock issued and outstanding) | $8.58 | |||||||||
|
| |||||||||
Class R6 | ||||||||||
Net asset value, offering price and redemption price per share, ($24,185,297 ÷ 2,814,638 shares of common stock issued and outstanding) | $8.59 | |||||||||
|
|
See Notes to Financial Statements.
28
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $381,130 foreign withholding tax) | $ | 3,086,107 | ||
Income from securities lending, net (including affiliated income of $470) | 14,219 | |||
Affiliated dividend income | 1,050 | |||
|
| |||
Total income | 3,101,376 | |||
|
| |||
Expenses | ||||
Management fee | 802,031 | |||
Distribution fee(a) | 268,954 | |||
Transfer agent’s fees and expenses (including affiliated expense of $130,346)(a) | 299,674 | |||
Custodian and accounting fees | 88,298 | |||
Registration fees(a) | 29,166 | |||
Audit fee | 15,685 | |||
Shareholders’ reports | 14,509 | |||
Legal fees and expenses | 8,667 | |||
Directors’ fees | 6,608 | |||
Miscellaneous | 33,150 | |||
|
| |||
Total expenses | 1,566,742 | |||
Less: Fee waiver and/or expense reimbursement(a) | (142,372 | ) | ||
|
| |||
Net expenses | 1,424,370 | |||
|
| |||
Net investment income (loss) | 1,677,006 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $448) (net of foreign capital gains taxes $(44,676)) | 19,610,178 | |||
Futures transactions | 8,610 | |||
Foreign currency transactions | 33,161 | |||
|
| |||
19,651,949 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $(883)) (net of change in foreign capital gains taxes $(219,231)) | 29,382,461 | |||
Futures | (57,084 | ) | ||
Foreign currencies | (685 | ) | ||
|
| |||
29,324,692 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 48,976,641 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 50,653,647 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||||||
Distribution fee | 256,427 | 12,527 | — | — | ||||||||||||||||
Transfer agent’s fees and expenses | 282,846 | 4,666 | 11,453 | 709 | ||||||||||||||||
Registration fees | 8,410 | 6,331 | 6,681 | 7,744 | ||||||||||||||||
Fee waiver and/or expense reimbursement | (107,042 | ) | (1,569 | ) | (10,460 | ) | (23,301 | ) |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 29
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 1,677,006 | $ | 3,174,147 | ||||||
Net realized gain (loss) on investment and foreign currency transactions | 19,651,949 | (4,689,465 | ) | |||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 29,324,692 | (8,409,553 | ) | |||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 50,653,647 | (9,924,871 | ) | |||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class A | (2,396,047 | ) | (4,101,945 | ) | ||||||
Class B | — | (14,282 | ) | |||||||
Class C | (9,676 | ) | (50,447 | ) | ||||||
Class Z | (272,737 | ) | (386,163 | ) | ||||||
Class R6 | (439,796 | ) | (550,823 | ) | ||||||
|
|
|
| |||||||
(3,118,256 | ) | (5,103,660 | ) | |||||||
|
|
|
| |||||||
Series share transactions (Net of share conversions) | ||||||||||
Net proceeds from shares sold | 16,781,778 | 37,395,853 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 3,075,130 | 5,027,591 | ||||||||
Cost of shares purchased | (23,012,857 | ) | (42,989,953 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Series share transactions | (3,155,949 | ) | (566,509 | ) | ||||||
|
|
|
| |||||||
Total increase (decrease) | 44,379,442 | (15,595,040 | ) | |||||||
Net Assets: | ||||||||||
Beginning of period | 181,725,036 | 197,320,076 | ||||||||
|
|
|
| |||||||
End of period | $ | 226,104,478 | $ | 181,725,036 | ||||||
|
|
|
|
See Notes to Financial Statements.
30
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company and currently consists of seven series: PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Jennison Global Infrastructure Fund, PGIM Jennison Global Opportunities Fund, PGIM Jennison International Opportunities Fund, PGIM QMA International Equity Fund and PGIM Emerging Markets Debt Hard Currency Fund, each of which are diversified funds for purposes of the 1940 Act, and PGIM Emerging Markets Debt Local Currency Fund, which is a non-diversified fund for purposes of the 1940 Act , and therefore, may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. These financial statements relate only to the PGIM QMA International Equity Fund (the “Series”).
The investment objective of the Series is to seek long-term growth of capital.
2. Accounting Policies
The Series follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Series in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Series’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The Board of Directors (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
PGIM QMA International Equity Fund 31
Notes to Financial Statements (unaudited) (continued)
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Series’ foreign investments may change on days when investors cannot purchase or redeem Series shares.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Series is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be
32
classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value 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 the 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 Manager 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Financial Futures Contracts: 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 Series is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount.
PGIM QMA International Equity Fund 33
Notes to Financial Statements (unaudited) (continued)
This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Series each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Series invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Series intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Series may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Series since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Master Netting Arrangements: The Fund, on behalf of the Series, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Series. A master netting arrangement between the Series and the counterparty permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Series lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the
34
borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral.
The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Series becomes aware of such dividends. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
The Series is subject to foreign income taxes imposed by certain countries in which it invests. Additionally, capital gains realized upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. All taxes are computed in accordance with the applicable foreign tax law, and, to the extent permitted, capital losses are used to offset capital gains. Taxes attributable to income are accrued by the Series as a reduction of income. Current and deferred tax expense attributable to capital gains is reflected as a component of realized or change in unrealized gain/loss on securities in the accompanying financial statements. To the extent that the Series has country specific capital loss carryforwards, such carryforwards are applied
PGIM QMA International Equity Fund 35
Notes to Financial Statements (unaudited) (continued)
against net unrealized gains when determining the deferred tax liability. Any deferred tax liability incurred by the Series is included in either Other liabilities or Deferred tax liability on the accompanying Statement of Assets and Liabilities.
Dividends and Distributions: The Series expects to pay dividends from net investment income and distributions from net realized capital and currency gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The Fund, on behalf of the Series, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with QMA LLC (“QMA”). The Manager pays for the services of QMA.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.75% of the Series’ average daily net assets up to $2 billion, 0.70% of the next $3 billion and 0.69% of the average daily net assets over $5 billion. The effective management fee rate before any waivers and/or expense reimbursements was 0.75% for the reporting period ended April 30, 2021.
The Manager has contractually agreed, through February 28, 2022, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 0.78% of average daily net assets for Class R6 shares. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Series expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed
36
total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver/reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
The Fund, on behalf of the Series, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to 0.30% and 1% of the average daily net assets of the Class A and Class C shares, respectively. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z and Class R6 shares of the Series.
For the reporting period ended April 30, 2021, PIMS received $22,382 in front-end sales charges resulting from sales of Class A shares. Additionally, for the reporting period ended April 30, 2021, PIMS received $500 and $50 in contingent deferred sales charges imposed upon redemptions by certain Class A and Class C shareholders, respectively. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs.
PGIM Investments, PIMS and QMA are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
PGIM QMA International Equity Fund 37
Notes to Financial Statements (unaudited) (continued)
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2021, no 17a-7 transactions were entered into by the Series.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2021, were $108,756,875 and $119,631,190, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2021, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: |
| |||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wa) | ||||||||||||||||||||||||
$ — | $20,322,070 | $16,201,767 | $ — | $ — | $4,120,303 | 4,120,303 | $1,050 | |||||||||||||||||
PGIM Institutional Money Market Fund (1)(b)(wa) |
| |||||||||||||||||||||||
2,142,391 | 26,507,460 | 26,943,785 | (883) | 448 | 1,705,631 | 1,706,484 | 470(2) | |||||||||||||||||
$2,142,391 | $46,829,530 | $43,145,552 | $(883) | $448 | $5,825,934 | $1,520 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
38
6. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of April 30, 2021 were as follows:
Tax Basis | $ | 182,366,222 | ||
|
| |||
Gross Unrealized Appreciation | 48,115,043 | |||
Gross Unrealized Depreciation | (5,195,062 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 42,919,981 | ||
|
|
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Series had a capital loss carryforward as of October 31, 2020 of approximately $11,135,000 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Series’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2020 are subject to such review.
7. Capital and Ownership
The Series offers Class A, Class C, Class Z and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock, below.
PGIM QMA International Equity Fund 39
Notes to Financial Statements (unaudited) (continued)
The Fund is authorized to issue 5.075 billion shares of common stock, $0.01 par value per share, 700 million of which are designated as shares of the Series. The shares are currently classified and designated as follows:
Class A | 100,000,000 | |||
Class B | 5,000,000 | |||
Class C | 100,000,000 | |||
Class Z | 180,000,000 | |||
Class T | 135,000,000 | |||
Class R6 | 180,000,000 |
The Series currently does not have any Class B or Class T shares outstanding.
As of April 30, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Series as follows:
Number of Shares | Percentage of Outstanding Shares | |||
Class A | 45,220 | 0.2% | ||
Class Z | 57,484 | 2.6% | ||
Class R6 | 1,349,018 | 47.9% |
At the reporting period end, the number of shareholders holding greater than 5% of the Series are as follows:
Affiliated | Unaffiliated | |||||
Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | |||
1 | 5.1% | 2 | 32.4% |
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 294,055 | $ | 2,375,372 | |||||
Shares issued in reinvestment of dividends and distributions | 303,876 | 2,355,040 | ||||||
Shares purchased | (1,289,245 | ) | (10,265,509 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (691,314 | ) | (5,535,097 | ) | ||||
Shares issued upon conversion from other share class(es) | 64,641 | 538,300 | ||||||
Shares purchased upon conversion into other share class(es) | (47,492 | ) | (370,687 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (674,165 | ) | $ | (5,367,484 | ) | |||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 363,428 | $ | 2,502,991 | |||||
Shares issued in reinvestment of dividends and distributions | 543,821 | 4,029,714 | ||||||
Shares purchased | (3,165,455 | ) | (21,483,425 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (2,258,206 | ) | (14,950,720 | ) | ||||
Shares issued upon conversion from other share class(es) | 161,310 | 1,060,950 | ||||||
Shares purchased upon conversion into other share class(es) | (115,083 | ) | (742,300 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (2,211,979 | ) | $ | (14,632,070 | ) | |||
|
|
|
|
40
Class B | Shares | Amount | ||||||||
Period ended June 26, 2020*: | ||||||||||
Shares sold | 1,146 | $ | 8,082 | |||||||
Shares issued in reinvestment of dividends and distributions | 2,005 | 14,254 | ||||||||
Shares purchased | (11,027 | ) | (74,364 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | (7,876 | ) | (52,028 | ) | ||||||
Shares purchased upon conversion into other share class(es) | (145,104 | ) | (906,295 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding | (152,980 | ) | $ | (958,323 | ) | |||||
|
|
|
| |||||||
Class C | ||||||||||
Six months ended April 30, 2021: | ||||||||||
Shares sold | 39,470 | $ | 299,161 | |||||||
Shares issued in reinvestment of dividends and distributions | 1,308 | 9,678 | ||||||||
Shares purchased | (61,907 | ) | (468,543 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | (21,129 | ) | (159,704 | ) | ||||||
Shares purchased upon conversion into other share class(es) | (60,319 | ) | (478,183 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding | (81,448 | ) | $ | (637,887 | ) | |||||
|
|
|
| |||||||
Year ended October 31, 2020: | ||||||||||
Shares sold | 40,927 | $ | 274,529 | |||||||
Shares issued in reinvestment of dividends and distributions | 7,008 | 49,758 | ||||||||
Shares purchased | (78,307 | ) | (518,507 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | (30,372 | ) | (194,220 | ) | ||||||
Shares purchased upon conversion into other share class(es) | (23,655 | ) | (154,655 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding | (54,027 | ) | $ | (348,875 | ) | |||||
|
|
|
| |||||||
Class Z | ||||||||||
Six months ended April 30, 2021: | ||||||||||
Shares sold | 392,616 | $ | 3,227,152 | |||||||
Shares issued in reinvestment of dividends and distributions | 34,694 | 270,616 | ||||||||
Shares purchased | (142,135 | ) | (1,161,390 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 285,175 | 2,336,378 | ||||||||
Shares issued upon conversion from other share class(es) | 44,716 | 351,407 | ||||||||
Shares purchased upon conversion into other share class(es) | (7,102 | ) | (60,117 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding | 322,789 | $ | 2,627,668 | |||||||
|
|
|
| |||||||
Year ended October 31, 2020: | ||||||||||
Shares sold | 483,883 | $ | 3,262,094 | |||||||
Shares issued in reinvestment of dividends and distributions | 51,415 | 383,042 | ||||||||
Shares purchased | (712,115 | ) | (4,770,026 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | (176,817 | ) | (1,124,890 | ) | ||||||
Shares issued upon conversion from other share class(es) | 67,705 | 447,052 | ||||||||
Shares purchased upon conversion into other share class(es) | (4,131 | ) | (24,558 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding | (113,243 | ) | $ | (702,396 | ) | |||||
|
|
|
|
PGIM QMA International Equity Fund 41
Notes to Financial Statements (unaudited) (continued)
Class R6 | Shares | Amount | ||||||||
Six months ended April 30, 2021: | ||||||||||
Shares sold | 1,337,230 | $ | 10,880,093 | |||||||
Shares issued in reinvestment of dividends and distributions | 56,384 | 439,796 | ||||||||
Shares purchased | (1,340,393 | ) | (11,117,415 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 53,221 | 202,474 | ||||||||
Shares issued upon conversion from other share class(es) | 2,355 | 19,280 | ||||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding | 55,576 | $ | 221,754 | |||||||
|
|
|
| |||||||
Year ended October 31, 2020: | ||||||||||
Shares sold | 4,369,581 | $ | 31,348,157 | |||||||
Shares issued in reinvestment of dividends and distributions | 73,936 | 550,823 | ||||||||
Shares purchased | (2,489,567 | ) | (16,143,631 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding before conversion | 1,953,950 | 15,755,349 | ||||||||
Shares issued upon conversion from other share class(es) | 50,529 | 319,806 | ||||||||
|
|
|
| |||||||
Net increase (decrease) in shares outstanding | 2,004,479 | $ | 16,075,155 | |||||||
|
|
|
|
* | Effective June 26, 2020, all of the issued and outstanding Class B shares of the Series converted into Class A shares. |
8. Borrowings
The Fund, on behalf of the Series, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/2/2020 – 9/30/2021 | |
Total Commitment | $ 1,200,000,000 | |
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | |
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
42
The Series utilized the SCA during the reporting period ended April 30, 2021. The average daily balance for the 24 days that the Series had loans outstanding during the period was approximately $864,333, borrowed at a weighted average interest rate of 1.42%. The maximum loan outstanding amount during the period was $4,989,000. At April 30, 2021, the Series did not have an outstanding loan amount.
9. Risks of Investing in the Series
The Series’ risks include, but are not limited to, some or all of the risks discussed below. For further information on the Series’ risks, please refer to the Series’ Prospectus and Statement of Additional Information.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Series. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Series will depend on the subadviser’s ability to analyze and manage derivative transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Series. The Series’ use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Series’ derivatives positions. In fact, many OTC derivative instruments lack liquidity beyond the counterparty to the instrument. OTC derivative instruments also involve the risk that the other party will not meet its obligations to the Series.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-US investors, or that prevent non-US investors from withdrawing their money at will. Countries with emerging markets can be found in regions such as Asia, Latin America, Eastern Europe and Africa.
The Series may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Series invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
PGIM QMA International Equity Fund 43
Notes to Financial Statements (unaudited) (continued)
Foreign Securities Risk: The Series’ investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. The securities of such issuers may trade in markets that are less liquid, less regulated and more volatile than US markets. The value of the Series’ investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial instability. Lack of information may also affect the value of these securities.
Investments in China Risk: Investments in China subject a Series to risks specific to China and may make it more volatile than other funds. Over the last few decades, the Chinese government has undertaken reform of economic and market practices and has expanded the sphere of private ownership of property in China. However, Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries, including military conflicts in response to such events, may also disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation.
China has experienced security concerns, such as terrorism and strained international relations. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and the Series’ investments. Export growth continues to be a major driver of China’s rapid economic growth. Reduction in spending on Chinese products and services, institution of additional tariffs or other trade barriers, including as a result of heightened trade tensions between China and the U.S., or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. Chinese companies, including Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulatory requirements, accounting standards or auditor oversight as companies in more developed countries, and as a result, information about the Chinese securities in which the Series invests may be less reliable or complete. There may be significant obstacles to obtaining information necessary for investigations into or litigation against Chinese companies and shareholders may have limited legal remedies.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Series’ shares. There is no requirement that these entities maintain their investment in the Series. There is a risk that such large shareholders or that the Series’ shareholders generally may redeem all or a substantial portion of their investments in the Series in a short period of time, which could have a significant negative impact on the Series’ NAV, liquidity, and brokerage costs.
44
Large redemptions could also result in tax consequences to shareholders and impact the Series’ ability to implement its investment strategy. The Series’ ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Series may invest a larger portion of its assets in cash or cash equivalents.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Series’ investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Series invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Series.
PGIM QMA International Equity Fund 45
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $6.74 | $7.19 | $6.96 | $7.95 | $6.48 | $6.65 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.06 | 0.11 | 0.15 | 0.16 | 0.11 | 0.11 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.82 | (0.39 | ) | 0.28 | (1.00 | ) | 1.49 | (0.17 | ) | |||||||||||||||||||||||
Total from investment operations | 1.88 | (0.28 | ) | 0.43 | (0.84 | ) | 1.60 | (0.06 | ) | |||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.11 | ) | (0.17 | ) | (0.17 | ) | (0.15 | ) | (0.13 | ) | (0.11 | ) | ||||||||||||||||||||
Distributions from net realized gains | - | - | (0.03 | ) | - | - | - | |||||||||||||||||||||||||
Total dividends and distributions | (0.11 | ) | (0.17 | ) | (0.20 | ) | (0.15 | ) | (0.13 | ) | (0.11 | ) | ||||||||||||||||||||
Net asset value, end of period | $8.51 | $6.74 | $7.19 | $6.96 | $7.95 | $6.48 | ||||||||||||||||||||||||||
Total Return(b): | 28.08 | % | (4.07 | )% | 6.53 | % | (10.81 | )% | 25.17 | % | (0.93 | )% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $180,323 | $147,445 | $173,103 | $171,326 | $207,626 | $185,120 | ||||||||||||||||||||||||||
Average net assets (000) | $172,368 | $156,952 | $172,031 | $200,255 | $192,517 | $189,980 | ||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.42 | %(e) | 1.47 | % | 1.48 | % | 1.34 | % | 1.58 | % | 1.66 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.55 | %(e) | 1.64 | % | 1.62 | % | 1.47 | % | 1.59 | % | 1.66 | % | ||||||||||||||||||||
Net investment income (loss) | 1.46 | %(e) | 1.58 | % | 2.19 | % | 2.08 | % | 1.62 | % | 1.69 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 52 | % | 128 | % | 94 | % | 114 | % | 105 | % | 114 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
46
Class C Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $6.38 | $6.86 | $6.64 | $7.60 | $6.20 | $6.37 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | - | (b) | 0.02 | 0.07 | 0.10 | 0.06 | 0.06 | |||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.74 | (0.38 | ) | 0.30 | (0.97 | ) | 1.43 | (0.17 | ) | |||||||||||||||||||||||
Total from investment operations | 1.74 | (0.36 | ) | 0.37 | (0.87 | ) | 1.49 | (0.11 | ) | |||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.03 | ) | (0.12 | ) | (0.12 | ) | (0.09 | ) | (0.09 | ) | (0.06 | ) | ||||||||||||||||||||
Distributions from net realized gains | - | - | (0.03 | ) | - | - | - | |||||||||||||||||||||||||
Total dividends and distributions | (0.03 | ) | (0.12 | ) | (0.15 | ) | (0.09 | ) | (0.09 | ) | (0.06 | ) | ||||||||||||||||||||
Net asset value, end of period | $8.09 | $6.38 | $6.86 | $6.64 | $7.60 | $6.20 | ||||||||||||||||||||||||||
Total Return(c): | 27.26 | % | (5.42 | )% | 5.77 | % | (11.52 | )% | 24.33 | % | (1.71 | )% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $2,360 | $2,381 | $2,928 | $12,530 | $16,661 | $15,892 | ||||||||||||||||||||||||||
Average net assets (000) | $2,526 | $2,640 | $7,163 | $15,626 | $15,736 | $16,416 | ||||||||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 2.66 | %(f) | 2.81 | % | 2.25 | % | 2.10 | % | 2.32 | % | 2.36 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.79 | %(f) | 2.98 | % | 2.39 | % | 2.23 | % | 2.33 | % | 2.36 | % | ||||||||||||||||||||
Net investment income (loss) | 0.12 | %(f) | 0.24 | % | 1.09 | % | 1.32 | % | 0.86 | % | 0.98 | % | ||||||||||||||||||||
Portfolio turnover rate(g) | 52 | % | 128 | % | 94 | % | 114 | % | 105 | % | 114 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying portfolios in which the Series invests. |
(e) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 47
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $6.81 | $7.26 | $7.02 | $8.02 | $6.54 | $6.70 | ||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.13 | 0.18 | 0.19 | 0.11 | 0.13 | ||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.83 | (0.37 | ) | 0.29 | (1.02 | ) | 1.52 | (0.16 | ) | |||||||||||||||||||||||
Total from investment operations | 1.91 | (0.24 | ) | 0.47 | (0.83 | ) | 1.63 | (0.03 | ) | |||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.14 | ) | (0.21 | ) | (0.20 | ) | (0.17 | ) | (0.15 | ) | (0.13 | ) | ||||||||||||||||||||
Distributions from net realized gains | - | - | (0.03 | ) | - | - | - | |||||||||||||||||||||||||
Total dividends and distributions | (0.14 | ) | (0.21 | ) | (0.23 | ) | (0.17 | ) | (0.15 | ) | (0.13 | ) | ||||||||||||||||||||
Net asset value, end of period | $8.58 | $6.81 | $7.26 | $7.02 | $8.02 | $6.54 | ||||||||||||||||||||||||||
Total Return(b): | 28.21 | % | (3.61 | )% | 7.05 | % | (10.59 | )% | 25.46 | % | (0.44 | )% | ||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $19,237 | $13,062 | $14,753 | $13,901 | $17,344 | $49,675 | ||||||||||||||||||||||||||
Average net assets (000) | $16,843 | $12,955 | $13,815 | $17,055 | $21,567 | $50,923 | ||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.00 | %(e) | 1.09 | % | 1.03 | % | 1.00 | % | 1.31 | % | 1.36 | % | ||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.13 | %(e) | 1.26 | % | 1.17 | % | 1.13 | % | 1.32 | % | 1.36 | % | ||||||||||||||||||||
Net investment income (loss) | 1.93 | %(e) | 1.97 | % | 2.58 | % | 2.44 | % | 1.57 | % | 1.99 | % | ||||||||||||||||||||
Portfolio turnover rate(f) | 52 | % | 128 | % | 94 | % | 114 | % | 105 | % | 114 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolios in which the Series invests. |
(d) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
48
Class R6 Shares |
| |||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | December 28, 2016(a) through October 31, | ||||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $6.83 | $7.27 | $7.03 | $8.04 | $6.32 | |||||||||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.16 | 0.21 | 0.21 | 0.15 | |||||||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.83 | (0.38 | ) | 0.27 | (1.03 | ) | 1.57 | |||||||||||||||||||||||||||
Total from investment operations | 1.92 | (0.22 | ) | 0.48 | (0.82 | ) | 1.72 | |||||||||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||||||||
Dividends from net investment income | (0.16 | ) | (0.22 | ) | (0.21 | ) | (0.19 | ) | - | |||||||||||||||||||||||||
Distributions from net realized gains | - | - | (0.03 | ) | - | - | ||||||||||||||||||||||||||||
Total dividends and distributions | (0.16 | ) | (0.22 | ) | (0.24 | ) | (0.19 | ) | - | |||||||||||||||||||||||||
Net asset value, end of period | $8.59 | $6.83 | $7.27 | $7.03 | $8.04 | |||||||||||||||||||||||||||||
Total Return(c): | 28.32 | % | (3.26 | )% | 7.33 | % | (10.43 | )% | 27.22 | % | ||||||||||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $24,185 | $18,837 | $5,487 | $36,552 | $39,379 | |||||||||||||||||||||||||||||
Average net assets (000) | $23,910 | $18,273 | $23,216 | $38,947 | $37,891 | |||||||||||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.78 | %(f) | 0.78 | % | 0.78 | % | 0.78 | % | 0.95 | %(f) | ||||||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.98 | %(f) | 1.05 | % | 0.95 | % | 0.95 | % | 0.99 | %(f) | ||||||||||||||||||||||||
Net investment income (loss) | 2.23 | %(f) | 2.33 | % | 3.06 | % | 2.61 | % | 2.45 | %(f) | ||||||||||||||||||||||||
Portfolio turnover rate(g) | 52 | % | 128 | % | 94 | % | 114 | % | 105 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying portfolios in which the Series invests. |
(e) | Effective August 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM QMA International Equity Fund 49
Series Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Series has adopted and implemented a liquidity risk management program (the “LRMP”). The Series’ LRMP seeks to assess and manage the Series’ liquidity risk, which is defined as the risk that the Series is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Series. The Company’s Board of Directors (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Series’ investment manager, to serve as the administrator of the Series’ LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Series’ LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Series’ LRMP includes no less than annual assessments of factors that influence the Series’ liquidity risk; no less than monthly classifications of the Series’ investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Series’ assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Series does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 2-5, 2021, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Series’ LRMP, including any material changes to the LRMP for the period from January 1, 2020 through December 31, 2020 (“Reporting Period”). The LRMP Report concluded that the Series’ LRMP was reasonably designed to assess and manage the Series’ liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Series’ investment strategies continue to be appropriate given the Series’ status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Series, including liquidity risks presented by the Series’ investment portfolio, is found in the Series’ Prospectus and Statement of Additional Information.
50 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | QMA LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM QMA International Equity Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM QMA INTERNATIONAL EQUITY FUND
SHARE CLASS | A | C | Z | R6 | ||||
NASDAQ | PJRAX | PJRCX | PJIZX | PJRQX | ||||
CUSIP | 743969859 | 743969875 | 743969883 | 743969578 |
MF190E2
PGIM EMERGING MARKETS DEBT LOCAL CURRENCY FUND
SEMIANNUAL REPORT
APRIL 30, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2021 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. © 2021 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM Emerging Markets Debt Local Currency Fund informative and useful. The report covers performance for the six-month period ended April 30, 2021.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Emerging Markets Debt Local Currency Fund
June 15, 2021
PGIM Emerging Markets Debt Local Currency Fund | 3 |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
(without sales charges) | Average Annual Total Returns as of 4/30/21 (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Ten Years (%) | |||||
Class A | 5.13 | 11.02 | 2.03 | –0.39 | ||||
Class C | 4.72 | 12.82 | 1.95 | –0.74 | ||||
Class Z | 5.50 | 15.32 | 2.99 | 0.25 | ||||
Class R6 | 5.36 | 15.20 | 3.05 | 0.30 | ||||
JP Morgan Government Bond Index-Emerging Markets Global Diversified Index | ||||||||
4.17 | 11.22 | 3.02 | 0.27 |
*Not annualized
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 3.25% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $500,000 or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.25% | 1.00% | None | None |
Benchmark Definitions
JP Morgan Government Bond Index-Emerging Markets Global Diversified Index—The JP Morgan Government Bond Index-Emerging Markets Global Diversified Index, an unmanaged index, is a comprehensive emerging markets debt benchmark that tracks local currency bonds issued by emerging market governments.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Emerging Markets Debt Local Currency Fund | 5 |
Your Fund’s Performance (continued)
Distributions and Yields as of 4/30/21 | ||||||
Total Distributions Paid for Six Months ($) | SEC 30-Day Subsidized Yield* (%) | SEC 30-Day Unsubsidized Yield** (%) | ||||
Class A | 0.13 | 3.84 | 3.30 | |||
Class C | 0.11 | 3.22 | –1.15 | |||
Class Z | 0.14 | 4.38 | 4.01 | |||
Class R6 | 0.14 | 4.45 | –15.95 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements). The investor experience is represented by the SEC 30-Day Subsidized Yield.
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses. The investor experience is represented by the SEC 30-Day Subsidized Yield.
Credit Quality expressed as a percentage of total investments as of 4/30/21 (%) | ||||
AAA | 1.6 | |||
AA | 3.0 | |||
A | 34.8 | |||
BBB | 32.0 | |||
BB | 19.0 | |||
B | 3.0 | |||
CCC | 1.9 | |||
CC | 0.1 | |||
Not Rated | 0.7 | |||
Cash/Cash Equivalents | 3.9 | |||
Total Investments | 100.0 |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by a NRSRO. Credit ratings are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2021. The example is for illustrative purposes only; you should consult the Fund’s Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period
PGIM Emerging Markets Debt Local Currency Fund | 7 |
Fees and Expenses (continued)
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Emerging Markets Debt Local Currency Fund | Beginning Account Value November 1, 2020 | Ending Account Value April 30, 2021 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,051.30 | 1.13 | % | $ | 5.75 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.19 | 1.13 | % | $ | 5.66 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,047.20 | 1.88 | % | $ | 9.54 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.47 | 1.88 | % | $ | 9.39 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,055.00 | 0.72 | % | $ | 3.67 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.22 | 0.72 | % | $ | 3.61 | ||||||||||
Class R6 | Actual | $ | 1,000.00 | $ | 1,053.60 | 0.65 | % | $ | 3.31 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2021, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
LONG-TERM INVESTMENTS 94.0% | ||||||||||||||||
SOVEREIGN BONDS 85.1% | ||||||||||||||||
Angola 0.6% | ||||||||||||||||
Angolan Government International Bond, | 9.500 | % | 11/12/25 | 400 | $ | 438,885 | ||||||||||
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Argentina 0.4% | ||||||||||||||||
Argentine Republic Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 0.125 | (cc) | 07/09/30 | 466 | 166,078 | |||||||||||
Sr. Unsec’d. Notes | 1.000 | 07/09/29 | 24 | 8,977 | ||||||||||||
Provincia de Buenos Aires, | ||||||||||||||||
Sr. Unsec’d. Notes | 9.950 | 06/09/21 | (d) | 140 | 61,944 | |||||||||||
|
| |||||||||||||||
236,999 | ||||||||||||||||
Brazil 4.0% | ||||||||||||||||
Brazil Minas SPE via State of Minas Gerais, | ||||||||||||||||
Gov’t. Gtd. Notes | 5.333 | 02/15/28 | 165 | 178,199 | ||||||||||||
Brazil Notas do Tesouro Nacional, | ||||||||||||||||
Notes, Series NTNF | 10.000 | 01/01/23 | BRL | 4,488 | 871,581 | |||||||||||
Notes, Series NTNF | 10.000 | 01/01/25 | BRL | 5,229 | 1,025,311 | |||||||||||
Notes, Series NTNF | 10.000 | 01/01/27 | BRL | 1,214 | 237,671 | |||||||||||
Notes, Series NTNF | 10.000 | 01/01/29 | BRL | 1,900 | 370,331 | |||||||||||
Notes, Series NTNF | 10.000 | 01/01/31 | BRL | 200 | 39,011 | |||||||||||
Brazilian Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 8.500 | 01/05/24 | BRL | 54 | 10,351 | |||||||||||
|
| |||||||||||||||
2,732,455 | ||||||||||||||||
Chile 2.4% | ||||||||||||||||
Bonos de la Tesoreria de la Republica en pesos, | ||||||||||||||||
Bonds | 4.500 | 03/01/26 | CLP | 280,000 | 426,949 | |||||||||||
Bonds | 5.000 | 03/01/35 | CLP | 115,000 | 174,907 | |||||||||||
Bonds, Series 30YR | 6.000 | 01/01/43 | (a) | CLP | 135,000 | 229,615 | ||||||||||
Unsec’d. Notes, 144A | 2.300 | 10/01/28 | CLP | 175,000 | 227,250 | |||||||||||
Unsec’d. Notes, 144A | 2.800 | 10/01/33 | CLP | 50,000 | 60,702 | |||||||||||
Unsec’d. Notes, 144A | 4.700 | 09/01/30 | CLP | 360,000 | 544,884 | |||||||||||
|
| |||||||||||||||
1,664,307 | ||||||||||||||||
China 9.6% | ||||||||||||||||
China Government Bond, | ||||||||||||||||
Bonds | 3.270 | 11/19/30 | CNH | 3,000 | 467,772 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
China (cont’d.) | ||||||||||||||||
China Government Bond, (cont’d.) | ||||||||||||||||
Bonds, Series 1906 | 3.290 | % | 05/23/29 | CNH | 6,690 | $ | 1,040,776 | |||||||||
Bonds, Series 1910 | 3.860 | 07/22/49 | CNH | 3,110 | 495,676 | |||||||||||
Bonds, Series INBK | 1.990 | 04/09/25 | CNH | 6,500 | 967,951 | |||||||||||
Bonds, Series INBK | 2.680 | 05/21/30 | CNH | 7,700 | 1,139,894 | |||||||||||
Bonds, Series INBK | 2.850 | 06/04/27 | CNH | 12,500 | 1,903,965 | |||||||||||
Unsec’d. Notes, Series INBK | 3.030 | 03/11/26 | CNH | 2,500 | 387,570 | |||||||||||
Unsec’d. Notes, Series INBK | 3.810 | 09/14/50 | CNH | 1,000 | 158,141 | |||||||||||
|
| |||||||||||||||
6,561,745 | ||||||||||||||||
Colombia 3.6% | ||||||||||||||||
Colombian TES, | ||||||||||||||||
Bonds, Series B | 5.750 | 11/03/27 | COP | 250,000 | 65,071 | |||||||||||
Bonds, Series B | 6.000 | 04/28/28 | COP | 2,763,200 | 720,056 | |||||||||||
Bonds, Series B | 7.500 | 08/26/26 | COP | 1,400,000 | 403,523 | |||||||||||
Bonds, Series B | 6.250 | 11/26/25 | COP | 1,000,000 | 277,108 | |||||||||||
Bonds, Series B | 7.000 | 06/30/32 | COP | 1,947,600 | 508,335 | |||||||||||
Bonds, Series B | 7.250 | 10/18/34 | COP | 777,800 | 204,078 | |||||||||||
Bonds, Series B | 7.250 | 10/26/50 | COP | 210,000 | 50,540 | |||||||||||
Bonds, Series B | 7.750 | 09/18/30 | COP | 500,000 | 140,032 | |||||||||||
Sr. Unsec’d. Notes | 3.750 | 06/16/49 | COP | 254,365 | 65,793 | |||||||||||
|
| |||||||||||||||
2,434,536 | ||||||||||||||||
Czech Republic 2.9% | ||||||||||||||||
Czech Republic Government Bond, | ||||||||||||||||
Bonds, Series 049 | 4.200 | 12/04/36 | CZK | 2,000 | 119,425 | |||||||||||
Bonds, Series 078 | 2.500 | 08/25/28 | CZK | 2,100 | 103,482 | |||||||||||
Bonds, Series 089 | 2.400 | 09/17/25 | CZK | 3,200 | 155,564 | |||||||||||
Bonds, Series 094 | 0.950 | 05/15/30 | CZK | 12,090 | 525,552 | |||||||||||
Bonds, Series 095 | 1.000 | 06/26/26 | CZK | 3,000 | 136,244 | |||||||||||
Bonds, Series 100 | 0.250 | 02/10/27 | CZK | 8,800 | 381,101 | |||||||||||
Bonds, Series 103 | 2.000 | 10/13/33 | CZK | 5,620 | 263,460 | |||||||||||
Bonds, Series 105 | 2.750 | 07/23/29 | CZK | 3,500 | 176,560 | |||||||||||
Bonds, Series 121 | 1.200 | 03/13/31 | CZK | 3,300 | 145,321 | |||||||||||
|
| |||||||||||||||
2,006,709 | ||||||||||||||||
Dominican Republic 0.2% | ||||||||||||||||
Dominican Republic International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 9.750 | 06/05/26 | DOP | 8,000 | 154,083 | |||||||||||
|
|
See Notes to Financial Statements.
10 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
El Salvador 0.2% | ||||||||||||||||
El Salvador Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 7.750 | % | 01/24/23 | 125 | $ | 131,424 | ||||||||||
|
| |||||||||||||||
Gabon 0.3% | ||||||||||||||||
Gabon Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.950 | 06/16/25 | 200 | 212,824 | ||||||||||||
|
| |||||||||||||||
Hungary 3.9% | ||||||||||||||||
Hungary Government Bond, | ||||||||||||||||
Bonds, Series 24/C | 2.500 | 10/24/24 | HUF | 40,000 | 139,201 | |||||||||||
Bonds, Series 25/B | 5.500 | 06/24/25 | HUF | 219,080 | 848,966 | |||||||||||
Bonds, Series 26/D | 2.750 | 12/22/26 | HUF | 70,000 | 245,760 | |||||||||||
Bonds, Series 26/E | 1.500 | 04/22/26 | HUF | 115,000 | 380,269 | |||||||||||
Bonds, Series 27/A | 3.000 | 10/27/27 | HUF | 42,680 | 152,358 | |||||||||||
Bonds, Series 28/A | 6.750 | 10/22/28 | HUF | 76,680 | 340,499 | |||||||||||
Bonds, Series 33/A | 2.250 | 04/20/33 | HUF | 70,000 | 221,785 | |||||||||||
Bonds, Series 34/A | 2.250 | 06/22/34 | HUF | 42,700 | 131,963 | |||||||||||
Bonds, Series 38/A | 3.000 | 10/27/38 | HUF | 21,890 | 71,098 | |||||||||||
Bonds, Series 51/G | 4.000 | 04/28/51 | HUF | 38,920 | 138,684 | |||||||||||
|
| |||||||||||||||
2,670,583 | ||||||||||||||||
Indonesia 10.2% | ||||||||||||||||
Indonesia Treasury Bond, | ||||||||||||||||
Bonds, Series 056 | 8.375 | 09/15/26 | IDR | 10,861,000 | 839,601 | |||||||||||
Bonds, Series 059 | 7.000 | 05/15/27 | IDR | 7,065,000 | 514,869 | |||||||||||
Bonds, Series 064 | 6.125 | 05/15/28 | IDR | 2,400,000 | 165,335 | |||||||||||
Bonds, Series 065 | 6.625 | 05/15/33 | IDR | 3,200,000 | 220,532 | |||||||||||
Bonds, Series 068 | 8.375 | 03/15/34 | IDR | 7,850,000 | 601,735 | |||||||||||
Bonds, Series 070 | 8.375 | 03/15/24 | IDR | 7,910,000 | 594,706 | |||||||||||
Bonds, Series 071 | 9.000 | 03/15/29 | IDR | 6,310,000 | 505,679 | |||||||||||
Bonds, Series 072 | 8.250 | 05/15/36 | IDR | 4,760,000 | 362,371 | |||||||||||
Bonds, Series 073 | 8.750 | 05/15/31 | IDR | 8,805,000 | 699,764 | |||||||||||
Bonds, Series 075 | 7.500 | 05/15/38 | IDR | 4,400,000 | 313,383 | |||||||||||
Bonds, Series 077 | 8.125 | 05/15/24 | IDR | 3,500,000 | 262,288 | |||||||||||
Bonds, Series 078 | 8.250 | 05/15/29 | IDR | 5,050,000 | 389,285 | |||||||||||
Bonds, Series 079 | 8.375 | 04/15/39 | IDR | 400,000 | 30,666 | |||||||||||
Bonds, Series 080 | 7.500 | 06/15/35 | IDR | 2,550,000 | 182,534 | |||||||||||
Bonds, Series 081 | 6.500 | 06/15/25 | IDR | 7,400,000 | 530,986 | |||||||||||
Bonds, Series 082 | 7.000 | 09/15/30 | IDR | 7,800,000 | 559,450 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Indonesia (cont’d.) | ||||||||||||||||
Indonesia Treasury Bond, (cont’d.) | ||||||||||||||||
Bonds, Series 087 | 6.500 | % | 02/15/31 | IDR | 2,000,000 | $ | 139,010 | |||||||||
Bonds, Series FR83 | 7.500 | 04/15/40 | IDR | 300,000 | 21,370 | |||||||||||
|
| |||||||||||||||
6,933,564 | ||||||||||||||||
Ivory Coast 0.2% | ||||||||||||||||
Ivory Coast Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 5.125 | 06/15/25 | EUR | 115 | 155,195 | |||||||||||
|
| |||||||||||||||
Malaysia 6.6% | ||||||||||||||||
Malaysia Government Bond, | ||||||||||||||||
Bonds, Series 115 | 3.955 | 09/15/25 | MYR | 1,650 | 425,671 | |||||||||||
Bonds, Series 118 | 3.882 | 03/14/25 | MYR | 1,977 | 506,259 | |||||||||||
Bonds, Series 217 | 4.059 | 09/30/24 | MYR | 335 | 86,126 | |||||||||||
Bonds, Series 219 | 3.885 | 08/15/29 | MYR | 2,550 | 653,814 | |||||||||||
Bonds, Series 307 | 3.502 | 05/31/27 | MYR | 500 | 126,102 | |||||||||||
Bonds, Series 310 | 4.498 | 04/15/30 | MYR | 400 | 106,760 | |||||||||||
Bonds, Series 311 | 4.392 | 04/15/26 | MYR | 285 | 75,073 | |||||||||||
Bonds, Series 316 | 3.900 | 11/30/26 | MYR | 2,970 | 772,177 | |||||||||||
Bonds, Series 317 | 4.762 | 04/07/37 | MYR | 1,237 | 325,116 | |||||||||||
Bonds, Series 411 | 4.232 | 06/30/31 | MYR | 280 | 72,927 | |||||||||||
Bonds, Series 413 | 3.844 | 04/15/33 | MYR | 390 | 95,654 | |||||||||||
Bonds, Series 417 | 3.899 | 11/16/27 | MYR | 1,370 | 353,598 | |||||||||||
Bonds, Series 419 | 3.828 | 07/05/34 | MYR | 500 | 121,909 | |||||||||||
Bonds, Series 513 | 3.733 | 06/15/28 | MYR | 1,480 | 378,335 | |||||||||||
Bonds, Series 519 | 3.757 | 05/22/40 | MYR | 900 | 208,908 | |||||||||||
Malaysia Government Investment Issue, | ||||||||||||||||
Bonds, Series 617 | 4.724 | 06/15/33 | MYR | 600 | 158,811 | |||||||||||
|
| |||||||||||||||
4,467,240 | ||||||||||||||||
Mexico 4.6% | ||||||||||||||||
Mexican Bonos, | ||||||||||||||||
Bonds, Series M | 7.750 | 05/29/31 | MXN | 15,100 | 789,968 | |||||||||||
Bonds, Series M | 8.000 | 11/07/47 | MXN | 10,815 | 539,973 | |||||||||||
Bonds, Series M20 | 7.500 | 06/03/27 | MXN | 11,000 | 576,707 | |||||||||||
Bonds, Series M30 | 10.000 | 11/20/36 | MXN | 2,355 | 144,269 | |||||||||||
Sr. Unsec’d. Notes, Series M | 7.750 | 11/13/42 | MXN | 5,400 | 264,903 | |||||||||||
Sr. Unsec’d. Notes, Series M20 | 8.500 | 05/31/29 | MXN | 2,500 | 137,525 | |||||||||||
Sr. Unsec’d. Notes, Series M30 | 8.500 | 11/18/38 | MXN | 7,000 | 373,565 |
See Notes to Financial Statements.
12 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Mexico (cont’d.) | ||||||||||||||||
Mexican Udibonos, | ||||||||||||||||
Bonds | 4.500 | % | 12/04/25 | MXN | 2,937 | $ | 162,368 | |||||||||
Bonds, Series S | 2.750 | 11/27/31 | MXN | 2,879 | 140,107 | |||||||||||
|
| |||||||||||||||
3,129,385 | ||||||||||||||||
Nigeria 0.3% | ||||||||||||||||
Nigeria Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 11/21/25 | 200 | 227,565 | ||||||||||||
|
| |||||||||||||||
Pakistan 0.9% | ||||||||||||||||
Pakistan Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 09/30/25 | 200 | 222,826 | ||||||||||||
Third Pakistan International Sukuk Co. Ltd. (The), | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.625 | 12/05/22 | 400 | 411,566 | ||||||||||||
|
| |||||||||||||||
634,392 | ||||||||||||||||
Peru 2.6% | ||||||||||||||||
Peru Government Bond, | ||||||||||||||||
Bonds | 6.950 | 08/12/31 | PEN | 190 | 56,109 | |||||||||||
Sr. Unsec’d. Notes | 5.350 | 08/12/40 | PEN | 1,000 | 233,788 | |||||||||||
Sr. Unsec’d. Notes | 5.400 | 08/12/34 | PEN | 580 | 146,897 | |||||||||||
Sr. Unsec’d. Notes | 5.940 | 02/12/29 | PEN | 200 | 57,569 | |||||||||||
Sr. Unsec’d. Notes | 6.150 | 08/12/32 | PEN | 1,150 | 318,978 | |||||||||||
Peruvian Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.350 | 08/12/28 | PEN | 555 | 163,847 | |||||||||||
Sr. Unsec’d. Notes | 6.900 | 08/12/37 | PEN | 651 | 185,572 | |||||||||||
Sr. Unsec’d. Notes | 6.950 | 08/12/31 | PEN | 958 | 284,336 | |||||||||||
Sr. Unsec’d. Notes | 8.200 | 08/12/26 | PEN | 1,032 | 345,401 | |||||||||||
|
| |||||||||||||||
1,792,497 | ||||||||||||||||
Philippines 0.2% | ||||||||||||||||
Philippine Government Bond, | ||||||||||||||||
Bonds, Series 1060 | 3.625 | 09/09/25 | PHP | 5,600 | 119,201 | |||||||||||
|
| |||||||||||||||
Poland 4.7% | ||||||||||||||||
Republic of Poland Government Bond, | ||||||||||||||||
Bonds, Series 0428 | 2.750 | 04/25/28 | PLN | 1,480 | 427,194 | |||||||||||
Bonds, Series 0725 | 3.250 | 07/25/25 | PLN | 1,821 | 530,868 | |||||||||||
Bonds, Series 0726 | 2.500 | 07/25/26 | PLN | 3,740 | 1,065,195 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 13 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Poland (cont’d.) | ||||||||||||||||
Republic of Poland Government Bond, (cont’d.) | ||||||||||||||||
Bonds, Series 0727 | 2.500 | % | 07/25/27 | PLN | 1,600 | $ | 455,850 | |||||||||
Bonds, Series 1029 | 2.750 | 10/25/29 | PLN | 1,740 | 501,072 | |||||||||||
Bonds, Series 1030 | 1.250 | 10/25/30 | PLN | 750 | 189,835 | |||||||||||
|
| |||||||||||||||
3,170,014 | ||||||||||||||||
Romania 2.6% | ||||||||||||||||
Romania Government Bond, | ||||||||||||||||
Bonds, Series 05YR | 3.650 | 07/28/25 | RON | 1,000 | 254,875 | |||||||||||
Bonds, Series 05YR | 4.250 | 06/28/23 | RON | 2,670 | 679,506 | |||||||||||
Bonds, Series 07YR | 3.250 | 04/29/24 | RON | 750 | 188,153 | |||||||||||
Bonds, Series 07YR | 4.850 | 04/22/26 | RON | 980 | 264,000 | |||||||||||
Bonds, Series 10YR | 5.000 | 02/12/29 | RON | 500 | 139,615 | |||||||||||
Bonds, Series 10YR | 5.850 | 04/26/23 | RON | 460 | 120,245 | |||||||||||
Bonds, Series 15YR | 3.650 | 09/24/31 | RON | 590 | 148,604 | |||||||||||
|
| |||||||||||||||
1,794,998 | ||||||||||||||||
Russia 3.3% | ||||||||||||||||
Russian Federal Bond - OFZ, | ||||||||||||||||
Bonds, Series 6212 | 7.050 | 01/19/28 | RUB | 19,800 | 267,944 | |||||||||||
Bonds, Series 6218 | 8.500 | 09/17/31 | RUB | 16,712 | 246,246 | |||||||||||
Bonds, Series 6219 | 7.750 | 09/16/26 | RUB | 12,000 | 167,595 | |||||||||||
Bonds, Series 6221 | 7.700 | 03/23/33 | RUB | 17,050 | 238,221 | |||||||||||
Bonds, Series 6222 | 7.100 | 10/16/24 | RUB | 10,000 | 136,633 | |||||||||||
Bonds, Series 6224 | 6.900 | 05/23/29 | RUB | 15,000 | 199,844 | |||||||||||
Bonds, Series 6228 | 7.650 | 04/10/30 | RUB | 22,600 | 315,106 | |||||||||||
Bonds, Series 6229 | 7.150 | 11/12/25 | RUB | 7,500 | 102,507 | |||||||||||
Bonds, Series 6230 | 7.700 | 03/16/39 | RUB | 15,200 | 214,188 | |||||||||||
Bonds, Series 6232 | 6.000 | 10/06/27 | RUB | 8,500 | 108,973 | |||||||||||
Russian Federal Inflation Linked Bond, | ||||||||||||||||
Unsec’d. Notes, Series 2003 | 2.500 | 07/17/30 | RUB | 21,112 | 276,822 | |||||||||||
|
| |||||||||||||||
2,274,079 | ||||||||||||||||
South Africa 9.9% | ||||||||||||||||
Republic of South Africa Government Bond, | ||||||||||||||||
Sr. Unsec’d. Notes, Series 2023 | 7.750 | 02/28/23 | ZAR | 1,500 | 108,871 | |||||||||||
Sr. Unsec’d. Notes, Series 2030 | 8.000 | 01/31/30 | ZAR | 16,110 | 1,027,353 | |||||||||||
Sr. Unsec’d. Notes, Series 2032 | 8.250 | 03/31/32 | ZAR | 14,030 | 850,322 | |||||||||||
Sr. Unsec’d. Notes, Series 2035 | 8.875 | 02/28/35 | ZAR | 12,270 | 727,916 | |||||||||||
Sr. Unsec’d. Notes, Series 2037 | 8.500 | 01/31/37 | ZAR | 7,880 | 440,762 |
See Notes to Financial Statements.
14 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
South Africa (cont’d.) | ||||||||||||||||
Republic of South Africa Government Bond, (cont’d.) | ||||||||||||||||
Sr. Unsec’d. Notes, Series 2040 | 9.000 | % | 01/31/40 | ZAR | 4,130 | $ | 236,028 | |||||||||
Sr. Unsec’d. Notes, Series 2044 | 8.750 | 01/31/44 | ZAR | 5,485 | 301,117 | |||||||||||
Sr. Unsec’d. Notes, Series 2048 | 8.750 | 02/28/48 | ZAR | 10,375 | 569,115 | |||||||||||
Sr. Unsec’d. Notes, Series R186 | 10.500 | 12/21/26 | ZAR | 21,126 | 1,662,884 | |||||||||||
Sr. Unsec’d. Notes, Series R209 | 6.250 | 03/31/36 | ZAR | 3,850 | 177,404 | |||||||||||
Sr. Unsec’d. Notes, Series R213 | 7.000 | 02/28/31 | ZAR | 7,830 | 447,895 | |||||||||||
Sr. Unsec’d. Notes, Series R214 | 6.500 | 02/28/41 | ZAR | 4,470 | 194,915 | |||||||||||
|
| |||||||||||||||
6,744,582 | ||||||||||||||||
Thailand 7.3% | ||||||||||||||||
Thailand Government Bond, | ||||||||||||||||
Bonds | 1.600 | 12/17/29 | THB | 20,635 | 659,543 | |||||||||||
Bonds | 2.875 | 12/17/28 | THB | 24,740 | 870,505 | |||||||||||
Bonds | 2.875 | 06/17/46 | THB | 7,150 | 233,982 | |||||||||||
Bonds | 3.300 | 06/17/38 | THB | 8,300 | 301,950 | |||||||||||
Bonds | 3.400 | 06/17/36 | THB | 11,040 | 406,394 | |||||||||||
Sr. Unsec’d. Notes | 1.600 | 06/17/35 | THB | 7,100 | 213,979 | |||||||||||
Sr. Unsec’d. Notes | 2.125 | 12/17/26 | THB | 22,820 | 769,815 | |||||||||||
Sr. Unsec’d. Notes | 3.625 | 06/16/23 | THB | 8,530 | 291,710 | |||||||||||
Sr. Unsec’d. Notes | 3.650 | 06/20/31 | THB | 17,100 | 643,828 | |||||||||||
Sr. Unsec’d. Notes | 3.775 | 06/25/32 | THB | 15,300 | 581,948 | |||||||||||
|
| |||||||||||||||
4,973,654 | ||||||||||||||||
Turkey 2.3% | ||||||||||||||||
Turkey Government Bond, | ||||||||||||||||
Bonds | 8.500 | 09/14/22 | TRY | 395 | 42,806 | |||||||||||
Bonds | 8.800 | 09/27/23 | TRY | 500 | 50,243 | |||||||||||
Bonds | 9.000 | 07/24/24 | TRY | 2,700 | 258,623 | |||||||||||
Bonds | 10.500 | 08/11/27 | TRY | 1,031 | 90,614 | |||||||||||
Bonds | 10.600 | 02/11/26 | TRY | 2,480 | 230,130 | |||||||||||
Bonds | 11.000 | 02/24/27 | TRY | 1,630 | 148,787 | |||||||||||
Bonds | 12.200 | 01/18/23 | TRY | 2,315 | 259,691 | |||||||||||
Bonds | 12.400 | 03/08/28 | TRY | 1,000 | 94,945 | |||||||||||
Turkey Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 7.375 | 02/05/25 | 350 | 371,575 | ||||||||||||
|
| |||||||||||||||
1,547,414 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 15 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal (000)# | Value | ||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||
Ukraine 1.1% | ||||||||||||||||
Ukraine Government International Bond, | ||||||||||||||||
Bonds | 17.000 | % | 05/11/22 | UAH | 500 | $ | 18,833 | |||||||||
Bonds, 144A | 11.670 | 11/22/23 | UAH | 2,414 | 84,479 | |||||||||||
Sr. Unsec’d. Notes | 6.750 | 06/20/26 | EUR | 150 | 192,797 | |||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/24 | 402 | 431,447 | ||||||||||||
Unsec’d. Notes, 144A | 17.250 | 01/05/22 | UAH | 1,328 | 49,616 | |||||||||||
|
| |||||||||||||||
777,172 | ||||||||||||||||
Uruguay 0.2% | ||||||||||||||||
Uruguay Government International Bond, | ||||||||||||||||
Sr. Unsec’d. Notes | 9.875 | 06/20/22 | UYU | 3,260 | 77,024 | |||||||||||
Sr. Unsec’d. Notes, 144A | 8.500 | 03/15/28 | UYU | 1,870 | 44,452 | |||||||||||
|
| |||||||||||||||
121,476 | ||||||||||||||||
|
| |||||||||||||||
TOTAL SOVEREIGN BONDS | ||||||||||||||||
(cost $58,782,427) | 58,106,978 | |||||||||||||||
|
| |||||||||||||||
CORPORATE BONDS 7.9% |
| |||||||||||||||
Belarus 0.3% | ||||||||||||||||
Development Bank of the Republic of Belarus JSC, | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 05/02/24 | 200 | 195,551 | ||||||||||||
|
| |||||||||||||||
Brazil 0.6% | ||||||||||||||||
JSM Global Sarl, | ||||||||||||||||
Gtd. Notes, 144A | 4.750 | 10/20/30 | 200 | 202,483 | ||||||||||||
Petrobras Global Finance BV, | ||||||||||||||||
Gtd. Notes | 8.750 | 05/23/26 | 165 | 210,327 | ||||||||||||
|
| |||||||||||||||
412,810 | ||||||||||||||||
Jamaica 0.3% | ||||||||||||||||
Digicel Ltd., | ||||||||||||||||
Gtd. Notes | 6.750 | 03/01/23 | 235 | 221,771 | ||||||||||||
|
| |||||||||||||||
Malaysia 0.3% | ||||||||||||||||
Gohl Capital Ltd., | ||||||||||||||||
Gtd. Notes | 4.250 | 01/24/27 | 200 | 211,355 | ||||||||||||
|
|
See Notes to Financial Statements.
16 |
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||
Mexico 2.5% | ||||||||||||||||
America Movil SAB de CV, | ||||||||||||||||
Sr. Unsec’d. Notes | 6.450 | % | 12/05/22 | MXN | 14,250 | $ | 712,917 | |||||||||
Petroleos Mexicanos, | ||||||||||||||||
Gtd. Notes | 6.490 | 01/23/27 | 55 | 58,139 | ||||||||||||
Gtd. Notes | 6.500 | 03/13/27 | 80 | 84,539 | ||||||||||||
Gtd. Notes | 7.190 | 09/12/24 | MXN | 8,000 | 373,359 | |||||||||||
Gtd. Notes, 144A | 7.650 | 11/24/21 | MXN | 4,120 | 204,055 | |||||||||||
Gtd. Notes, MTN | 6.875 | 08/04/26 | 235 | 255,129 | ||||||||||||
|
| |||||||||||||||
1,688,138 | ||||||||||||||||
Russia 1.7% | ||||||||||||||||
Gazprom Capital OOO, | ||||||||||||||||
Gtd. Notes, Series BO03 | 7.150 | (cc) | 02/15/28 | RUB | 45,000 | 602,772 | ||||||||||
Gtd. Notes, Series BO05 | 8.900 | (cc) | 02/03/27 | RUB | 42,000 | 585,833 | ||||||||||
|
| |||||||||||||||
1,188,605 | ||||||||||||||||
South Africa 0.6% | ||||||||||||||||
Eskom Holdings SOC Ltd., | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.750 | 08/06/23 | 200 | 209,005 | ||||||||||||
Sasol Financing USA LLC, | ||||||||||||||||
Gtd. Notes | 5.875 | 03/27/24 | 200 | 213,504 | ||||||||||||
|
| |||||||||||||||
422,509 | ||||||||||||||||
Supranational Bank 1.6% | ||||||||||||||||
European Bank for Reconstruction & Development, | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 7.500 | 05/15/22 | IDR | 900,000 | 63,601 | |||||||||||
Sr. Unsec’d. Notes, GMTN | 6.450 | 12/13/22 | IDR | 7,500,000 | 530,245 | |||||||||||
European Investment Bank, | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 3.000 | 05/24/24 | PLN | 600 | 169,208 | |||||||||||
Sr. Unsec’d. Notes, EMTN | 12.576 | (s) | 09/05/22 | TRY | 1,260 | 120,511 | ||||||||||
International Bank for Reconstruction & Development, | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 7.450 | 08/20/21 | IDR | 2,500,000 | 173,934 | |||||||||||
|
| |||||||||||||||
1,057,499 | ||||||||||||||||
|
| |||||||||||||||
TOTAL CORPORATE BONDS | ||||||||||||||||
(cost $5,765,219) | 5,398,238 | |||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 17 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||
FOREIGN TREASURY OBLIGATION 1.0% |
| |||||||||||||||
Brazil | ||||||||||||||||
Brazil Letras do Tesouro Nacional, | ||||||||||||||||
(cost $679,000) | 6.144 | %(s) | 01/01/24 | BRL | 4,318 | $ | 655,936 | |||||||||
|
| |||||||||||||||
TOTAL LONG-TERM INVESTMENTS | ||||||||||||||||
(cost $65,226,646) | 64,161,152 | |||||||||||||||
|
| |||||||||||||||
Shares | ||||||||||||||||
SHORT-TERM INVESTMENTS 3.2% | ||||||||||||||||
AFFILIATED MUTUAL FUNDS 3.2% | ||||||||||||||||
PGIM Core Ultra Short Bond Fund(wa) | 1,919,078 | 1,919,078 | ||||||||||||||
PGIM Institutional Money Market Fund | ||||||||||||||||
(cost $248,110; includes $248,101 of cash collateral for securities on loan)(b)(wa) | 248,233 | 248,110 | ||||||||||||||
|
| |||||||||||||||
TOTAL AFFILIATED MUTUAL FUNDS | ||||||||||||||||
(cost $2,167,188) | 2,167,188 | |||||||||||||||
|
|
OPTIONS PURCHASED*~ 0.0% | ||||||||||||||||
(cost $21,226) | 10,286 | |||||||||||||||
|
| |||||||||||||||
TOTAL SHORT-TERM INVESTMENTS | ||||||||||||||||
(cost $2,188,414) | 2,177,474 | |||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS, BEFORE OPTIONS WRITTEN | ||||||||||||||||
(cost $67,415,060) | 66,338,626 | |||||||||||||||
|
| |||||||||||||||
OPTIONS WRITTEN*~ (0.1)% | ||||||||||||||||
(premiums received $(59,300)) | (47,574 | ) | ||||||||||||||
|
| |||||||||||||||
TOTAL INVESTMENTS, NET OF OPTIONS WRITTEN 97.1% | ||||||||||||||||
(cost $67,355,760) | 66,291,052 | |||||||||||||||
Other assets in excess of liabilities(z) 2.9% | 1,949,001 | |||||||||||||||
|
| |||||||||||||||
NET ASSETS 100.0% | $ | 68,240,053 | ||||||||||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
AUD—Australian Dollar
BRL—Brazilian Real
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
See Notes to Financial Statements.
18 |
CZK—Czech Koruna
DOP—Dominican Peso
EUR—Euro
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—Israeli Shekel
INR—Indian Rupee
JPY—Japanese Yen
KRW—South Korean Won
MXN—Mexican Peso
MYR—Malaysian Ringgit
NZD—New Zealand Dollar
PEN—Peruvian Nuevo Sol
PHP—Philippine Peso
PLN—Polish Zloty
RON—Romanian Leu
RUB—Russian Ruble
SGD—Singapore Dollar
THB—Thai Baht
TRY—Turkish Lira
TWD—New Taiwanese Dollar
UAH—Ukraine Hryvna
USD—US Dollar
UYU—Uruguayan Peso
ZAR—South African Rand
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
A—Annual payment frequency for swaps
BROIS—Brazil Overnight Index Swap
CLOIS—Sinacofi Chile Interbank Rate Average
COOIS—Colombia Overnight Interbank Reference Rate
EMTN—Euro Medium Term Note
GMTN—Global Medium Term Note
JIBAR—Johannesburg Interbank Agreed Rate
KLIBOR—Kuala Lumpur Interbank Offered Rate
KWCDC—Korean Won Certificate of Deposit
LIBOR—London Interbank Offered Rate
M—Monthly payment frequency for swaps
MosPRIME—Moscow Prime Offered Rate
MTN—Medium Term Note
OFZ—Obligatsyi Federal’novo Zaima (Federal Loan Obligations)
OTC—Over-the-counter
Q—Quarterly payment frequency for swaps
S—Semiannual payment frequency for swaps
T—Swap payment upon termination
WIBOR—Warsaw Interbank Offered Rate
* | Non-income producing security. |
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
~ | See tables subsequent to the Schedule of Investments for options detail. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 19 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $227,221; cash collateral of $248,101 (included in liabilities) was received with which the Series purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Series may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(cc) | Variable rate instrument. The rate shown is based on the latest available information as of April 30, 2021. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post-maturity. |
(s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
(z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Options Purchased:
OTC Traded
Description | Call/ | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 07/12/21 | 7.30 | — | 944 | $ | 50 | ||||||||||||||
Currency Option USD vs INR | Call | Morgan Stanley & Co. International PLC | 05/21/21 | 75.00 | — | 3,456 | 10,181 | |||||||||||||||
Currency Option USD vs INR | Call | Goldman Sachs International | 05/21/21 | 83.00 | — | 3,456 | 31 | |||||||||||||||
Currency Option USD vs RUB | Call | Goldman Sachs International | 05/06/21 | 90.00 | — | 339 | — | |||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 05/05/21 | 18.50 | — | 683 | — | |||||||||||||||
Currency Option USD vs RUB | Put | JPMorgan Chase Bank, N.A. | 05/04/21 | 70.00 | — | 340 | — | |||||||||||||||
Currency Option USD vs RUB | Put | JPMorgan Chase Bank, N.A. | 05/06/21 | 70.00 | — | 692 | — | |||||||||||||||
Currency Option USD vs RUB | Put | Morgan Stanley & Co. International PLC | 05/06/21 | 70.00 | — | 340 | — | |||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/03/21 | 7.50 | — | 339 | — | |||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/26/21 | 7.00 | — | 677 | 16 | |||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/26/21 | 7.00 | — | 339 | 8 | |||||||||||||||
|
| |||||||||||||||||||||
Total Options Purchased (cost $21,226) |
| $ | 10,286 | |||||||||||||||||||
|
|
See Notes to Financial Statements.
20 |
Options Written:
OTC Traded
Description | Call/ | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 07/12/21 | 6.70 | — | 944 | $ | (1,216 | ) | |||||||||||||
Currency Option USD vs INR | Call | Goldman Sachs International | 05/21/21 | 75.00 | — | 3,456 | (10,181 | ) | ||||||||||||||
Currency Option USD vs RUB | Call | Goldman Sachs International | 05/06/21 | 77.00 | — | 339 | (334 | ) | ||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 05/05/21 | 20.05 | — | 683 | (1,077 | ) | ||||||||||||||
Currency Option USD vs RUB | Put | JPMorgan Chase Bank, N.A. | 05/04/21 | 76.50 | — | 340 | (6,038 | ) | ||||||||||||||
Currency Option USD vs RUB | Put | JPMorgan Chase Bank, N.A. | 05/06/21 | 75.50 | — | 692 | (5,787 | ) | ||||||||||||||
Currency Option USD vs RUB | Put | Morgan Stanley & Co. International PLC | 05/06/21 | 77.50 | — | 340 | (10,532 | ) | ||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/03/21 | 8.00 | — | 339 | (1 | ) | ||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/26/21 | 8.25 | — | 677 | (8,272 | ) | ||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/26/21 | 8.25 | — | 339 | (4,136 | ) | ||||||||||||||
|
| |||||||||||||||||||||
Total Options Written (premiums received $59,300) |
| $ | (47,574 | ) | ||||||||||||||||||
|
|
Futures contracts outstanding at April 30, 2021:
Number | Type | Expiration | Current | Value / | ||||||||
Short Positions: | ||||||||||||
5 | 2 Year U.S. Treasury Notes | Jun. 2021 | $ | 1,103,789 | $ | 908 | ||||||
3 | 5 Year Euro-Bobl | Jun. 2021 | 485,938 | 190 | ||||||||
20 | 5 Year U.S. Treasury Notes | Jun. 2021 | 2,478,750 | 15,866 | ||||||||
4 | 10 Year U.S. Treasury Notes | Jun. 2021 | 528,125 | 9,456 | ||||||||
1 | Euro Schatz Index | Jun. 2021 | 134,748 | 41 | ||||||||
|
| |||||||||||
$ | 26,461 | |||||||||||
|
|
Forward foreign currency exchange contracts outstanding at April 30, 2021:
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||
OTC Forward Foreign Currency Exchange Contracts: | ||||||||||||||
Australian Dollar, Expiring 07/20/21 | Barclays Bank PLC | AUD | 672 | $ 520,441 | $ 517,631 | $ — | $ (2,810) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 21 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Australian Dollar (cont’d.), | ||||||||||||||||||||||||||
Expiring 07/20/21 | Goldman Sachs International | AUD | 218 | $ | 170,000 | $ | 168,042 | $ | — | $ | (1,958 | ) | ||||||||||||||
Expiring 07/20/21 | JPMorgan Chase Bank, N.A. | AUD | 218 | 168,523 | 167,996 | — | (527 | ) | ||||||||||||||||||
Expiring 07/20/21 | Morgan Stanley & Co. International PLC | AUD | 218 | 170,000 | 167,897 | — | (2,103 | ) | ||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||||||
Expiring 05/04/21 | Barclays Bank PLC | BRL | 411 | 73,000 | 75,593 | 2,593 | — | |||||||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 912 | 164,744 | 167,788 | 3,044 | — | |||||||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 826 | 147,000 | 152,018 | 5,018 | — | |||||||||||||||||||
Expiring 05/04/21 | Credit Suisse International | BRL | 767 | 136,000 | 141,156 | 5,156 | — | |||||||||||||||||||
Expiring 05/04/21 | Credit Suisse International | BRL | 491 | 89,000 | 90,372 | 1,372 | — | |||||||||||||||||||
Expiring 05/04/21 | JPMorgan Chase Bank, N.A. | BRL | 18,523 | 3,438,849 | 3,408,635 | — | (30,214 | ) | ||||||||||||||||||
Expiring 05/04/21 | JPMorgan Chase Bank, N.A. | BRL | 912 | 159,730 | 167,884 | 8,154 | — | |||||||||||||||||||
Expiring 05/04/21 | Morgan Stanley & Co. International PLC | BRL | 1,154 | 206,000 | 212,278 | 6,278 | — | |||||||||||||||||||
Expiring 05/04/21 | Morgan Stanley & Co. International PLC | BRL | 750 | 136,000 | 137,952 | 1,952 | — | |||||||||||||||||||
Expiring 07/02/21 | Deutsche Bank AG | BRL | 15,038 | 2,716,918 | 2,752,907 | 35,989 | — | |||||||||||||||||||
Expiring 07/02/21 | Morgan Stanley & Co. International PLC | BRL | 1,411 | 259,691 | 258,370 | — | (1,321 | ) | ||||||||||||||||||
Expiring 07/02/21 | Morgan Stanley & Co. International PLC | BRL | 150 | 27,000 | 27,410 | 410 | — | |||||||||||||||||||
Chilean Peso, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 120,951 | 170,000 | 170,130 | 130 | — | |||||||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||||||
Expiring 05/14/21 | Citibank, N.A. | CNH | 4,640 | 664,965 | 716,081 | 51,116 | — | |||||||||||||||||||
Expiring 05/18/21 | BNP Paribas S.A. | CNH | 675 | 103,319 | 104,159 | 840 | — | |||||||||||||||||||
Expiring 05/18/21 | Goldman Sachs International | CNH | 1,123 | 172,456 | 173,222 | 766 | — | |||||||||||||||||||
Expiring 05/18/21 | Goldman Sachs International | CNH | 824 | 127,472 | 127,084 | — | (388 | ) | ||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 2,127 | 329,000 | 328,170 | — | (830 | ) | ||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 1,732 | 265,000 | 267,140 | 2,140 | — | |||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 1,731 | 265,000 | 267,062 | 2,062 | — | |||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 1,140 | 175,000 | 175,927 | 927 | — | |||||||||||||||||||
Expiring 05/18/21 | JPMorgan Chase Bank, N.A. | CNH | 10,969 | 1,685,376 | 1,692,381 | 7,005 | — |
See Notes to Financial Statements.
22 |
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Chinese Renminbi (cont’d.), | ||||||||||||||||||||||||||
Expiring 05/18/21 | JPMorgan Chase Bank, N.A. | CNH | 892 | $ | 138,000 | $ | 137,576 | $ | — | $ | (424 | ) | ||||||||||||||
Expiring 05/18/21 | JPMorgan Chase Bank, N.A. | CNH | 456 | 70,519 | 70,426 | — | (93 | ) | ||||||||||||||||||
Expiring 05/18/21 | Morgan Stanley & Co. International PLC | CNH | 2,595 | 399,000 | 400,400 | 1,400 | — | |||||||||||||||||||
Expiring 05/18/21 | Morgan Stanley & Co. International PLC | CNH | 536 | 81,127 | 82,668 | 1,541 | — | |||||||||||||||||||
Expiring 05/18/21 | Morgan Stanley & Co. International PLC | CNH | 395 | 61,124 | 60,892 | — | (232 | ) | ||||||||||||||||||
Expiring 05/18/21 | UBS AG | CNH | 1,177 | 181,000 | 181,565 | 565 | — | |||||||||||||||||||
Colombian Peso, | ||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | COP | 616,123 | 168,000 | 163,770 | — | (4,230 | ) | ||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | COP | 349,575 | 96,000 | 92,919 | — | (3,081 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | COP | 437,017 | 119,591 | 116,162 | — | (3,429 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | COP | 1,218,239 | 336,000 | 323,816 | — | (12,184 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | COP | 486,200 | 130,000 | 129,235 | — | (765 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | COP | 481,563 | 131,000 | 128,002 | — | (2,998 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | COP | 471,590 | 132,000 | 125,352 | — | (6,648 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | COP | 623,117 | 171,000 | 165,629 | — | (5,371 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 331,064 | 91,000 | 87,999 | — | (3,001 | ) | ||||||||||||||||||
Czech Koruna, | ||||||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | CZK | 18,171 | 837,527 | 844,811 | 7,284 | — | |||||||||||||||||||
Expiring 07/19/21 | Morgan Stanley & Co. International PLC | CZK | 17,459 | 798,445 | 811,681 | 13,236 | — | |||||||||||||||||||
Euro, | ||||||||||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | EUR | 282 | 337,000 | 339,112 | 2,112 | — | |||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | EUR | 71 | 85,383 | 84,899 | — | (484 | ) | ||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | EUR | 71 | 85,382 | 84,899 | — | (483 | ) | ||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | EUR | 140 | 170,000 | 168,434 | — | (1,566 | ) | ||||||||||||||||||
Expiring 07/19/21 | The Toronto-Dominion Bank | EUR | 140 | 168,000 | 168,702 | 702 | — | |||||||||||||||||||
Hungarian Forint, | ||||||||||||||||||||||||||
Expiring 07/19/21 | Barclays Bank PLC | HUF | 46,188 | 155,000 | 154,066 | — | (934 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 23 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Indian Rupee, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | INR | 5,819 | $ | 78,740 | $ | 77,883 | $ | — | $ | (857 | ) | ||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | INR | 4,189 | 56,630 | 56,063 | — | (567 | ) | ||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 13,740 | 182,000 | 183,897 | 1,897 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 13,064 | 173,000 | 174,853 | 1,853 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 12,735 | 168,000 | 170,455 | 2,455 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 123,461 | 1,660,666 | 1,652,462 | — | (8,204 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 92,452 | 1,245,814 | 1,237,422 | — | (8,392 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 32,676 | 443,633 | 437,347 | — | (6,286 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 13,818 | 182,000 | 184,948 | 2,948 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 87,989 | 1,191,328 | 1,177,685 | — | (13,643 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 13,099 | 173,000 | 175,324 | 2,324 | — | |||||||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | IDR | 2,718,204 | 186,000 | 186,792 | 792 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | IDR | 1,608,501 | 111,000 | 110,534 | — | (466 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 8,893,222 | 609,083 | 611,134 | 2,051 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 2,472,274 | 169,000 | 169,892 | 892 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 740,144 | 51,015 | 50,861 | — | (154 | ) | ||||||||||||||||||
Expiring 06/16/21 | UBS AG | IDR | 1,595,000 | 110,000 | 109,607 | — | (393 | ) | ||||||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | ILS | 2,450 | 739,263 | 754,525 | 15,262 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 2,450 | 741,502 | 754,525 | 13,023 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 601 | 183,000 | 185,187 | 2,187 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 554 | 170,000 | 170,545 | 545 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 551 | 168,000 | 169,821 | 1,821 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | ILS | 272 | 81,673 | 83,663 | 1,990 | — | |||||||||||||||||||
Japanese Yen, | ||||||||||||||||||||||||||
Expiring 07/19/21 | BNP Paribas S.A. | JPY | 18,209 | 167,311 | 166,730 | — | (581 | ) | ||||||||||||||||||
Malaysian Ringgit, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MYR | 3,184 | 769,910 | 775,181 | 5,271 | — |
See Notes to Financial Statements.
24 |
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Malaysian Ringgit (cont’d.), | ||||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. | |||||||||||||||||||||||||
International PLC | MYR | 283 | $ | 68,009 | $ | 68,873 | $ | 864 | $ | — | ||||||||||||||||
Mexican Peso, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Bank of America, N.A. | MXN | 2,743 | 131,883 | 134,686 | 2,803 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs | |||||||||||||||||||||||||
International | MXN | 3,578 | 171,338 | 175,698 | 4,360 | — | ||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | MXN | 3,415 | 170,000 | 167,694 | — | (2,306 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 3,605 | 173,000 | 177,013 | 4,013 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 2,898 | 135,000 | 142,315 | 7,315 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 2,751 | 132,000 | 135,100 | 3,100 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 2,715 | 130,000 | 133,333 | 3,333 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MXN | 27,356 | 1,309,120 | 1,343,289 | 34,169 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MXN | 27,356 | 1,305,989 | 1,343,289 | 37,300 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MXN | 4,984 | 248,653 | 244,742 | — | (3,911 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MXN | 2,913 | 138,959 | 143,033 | 4,074 | — | |||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | TWD | 48,629 | 1,769,790 | 1,748,540 | — | (21,250 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | TWD | 2,510 | 89,583 | 90,256 | 673 | — | |||||||||||||||||||
New Zealand Dollar, | ||||||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | NZD | 235 | 170,000 | 168,004 | — | (1,996 | ) | ||||||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | PEN | 775 | 215,000 | 204,780 | — | (10,220 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 733 | 192,000 | 193,713 | 1,713 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 669 | 183,400 | 176,896 | — | (6,504 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | PEN | 988 | 267,000 | 261,265 | — | (5,735 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | PEN | 650 | 172,408 | 171,786 | — | (622 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. | |||||||||||||||||||||||||
International PLC | PEN | 757 | 205,000 | 200,166 | — | (4,834 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 25 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Peruvian Nuevo Sol (cont’d.), | ||||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | PEN | 153 | $ | 40,738 | $ | 40,343 | $ | — | $ | (395 | ) | ||||||||||||||
Philippine Peso, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PHP | 21,854 | 446,000 | 449,581 | 3,581 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PHP | 10,773 | 220,000 | 221,626 | 1,626 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | PHP | 18,755 | 383,000 | 385,811 | 2,811 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | PHP | 13,176 | 269,000 | 271,055 | 2,055 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | PHP | 13,095 | 266,000 | 269,391 | 3,391 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | PHP | 10,868 | 221,000 | 223,575 | 2,575 | — | |||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | PHP | 12,980 | 265,000 | 267,013 | 2,013 | — | |||||||||||||||||||
Polish Zloty, | ||||||||||||||||||||||||||
Expiring 07/19/21 | Barclays Bank PLC | PLN | 566 | 150,000 | 149,215 | — | (785 | ) | ||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | PLN | 4,341 | 1,140,755 | 1,145,080 | 4,325 | — | |||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | PLN | 568 | 149,498 | 149,834 | 336 | — | |||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | PLN | 574 | 152,000 | 151,452 | — | (548 | ) | ||||||||||||||||||
Romanian Leu, | ||||||||||||||||||||||||||
Expiring 07/19/21 | Goldman Sachs International | RON | 1,708 | 411,456 | 415,731 | 4,275 | — | |||||||||||||||||||
Russian Ruble, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | RUB | 104,291 | 1,400,080 | 1,378,305 | — | (21,775 | ) | ||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | RUB | 15,185 | 207,000 | 200,685 | — | (6,315 | ) | ||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | RUB | 10,002 | 129,000 | 132,184 | 3,184 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | RUB | 2,410 | 31,377 | 31,850 | 473 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | RUB | 2,915 | 38,257 | 38,527 | 270 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | RUB | 104,291 | 1,398,006 | 1,378,304 | — | (19,702 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | RUB | 65,868 | 881,120 | 870,508 | — | (10,612 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | RUB | 5,678 | 75,201 | 75,032 | — | (169 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 25,540 | 340,000 | 337,538 | — | (2,462 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 12,670 | 170,000 | 167,444 | — | (2,556 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 8,782 | 113,000 | 116,056 | 3,056 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 5,612 | 73,000 | 74,163 | 1,163 | — |
See Notes to Financial Statements.
26 |
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | SGD | 234 | $ | 174,000 | $ | 175,751 | $ | 1,751 | $ | — | |||||||||||||||
Expiring 06/16/21 | Credit Suisse International | SGD | 361 | 269,000 | 270,910 | 1,910 | — | |||||||||||||||||||
South African Rand, | ||||||||||||||||||||||||||
Expiring 06/17/21 | Barclays Bank PLC | ZAR | 4,919 | 340,657 | 336,890 | — | (3,767 | ) | ||||||||||||||||||
Expiring 06/17/21 | Barclays Bank PLC | ZAR | 1,432 | 94,281 | 98,055 | 3,774 | — | |||||||||||||||||||
Expiring 06/17/21 | BNP Paribas S.A. | ZAR | 1,271 | 86,000 | 87,077 | 1,077 | — | |||||||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 1,915 | 127,000 | 131,149 | 4,149 | — | �� | ||||||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 1,667 | 114,000 | 114,148 | 148 | — | |||||||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 1,113 | 76,000 | 76,201 | 201 | — | |||||||||||||||||||
Expiring 06/17/21 | UBS AG | ZAR | 1,144 | 76,110 | 78,371 | 2,261 | — | |||||||||||||||||||
Expiring 06/17/21 | UBS AG | ZAR | 745 | 50,659 | 51,002 | 343 | — | |||||||||||||||||||
South Korean Won, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | KRW | 377,480 | 334,000 | 337,659 | 3,659 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | KRW | 246,422 | 220,000 | 220,427 | 427 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | KRW | 188,224 | 170,000 | 168,368 | — | (1,632 | ) | ||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International | KRW | 151,949 | 134,000 | 135,920 | 1,920 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | KRW | 373,827 | 335,000 | 334,391 | — | (609 | ) | ||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | KRW | 156,135 | 138,000 | 139,664 | 1,664 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | KRW | 150,170 | 133,000 | 134,329 | 1,329 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | KRW | 148,119 | 131,000 | 132,494 | 1,494 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | KRW | 189,387 | 170,000 | 169,408 | — | (592 | ) | ||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | KRW | 203,418 | 180,000 | 181,959 | 1,959 | — | |||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | KRW | 197,146 | 175,000 | 176,349 | 1,349 | — | |||||||||||||||||||
Thai Baht, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | THB | 7,545 | 241,000 | 242,250 | 1,250 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | THB | 4,667 | 148,000 | 149,842 | 1,842 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 29,840 | 966,169 | 958,071 | — | (8,098 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 5,314 | 170,000 | 170,615 | 615 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 4,250 | 137,730 | 136,437 | — | (1,293 | ) | ||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 39,506 | 1,297,412 | 1,268,403 | — | (29,009 | ) | ||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 13,563 | 432,000 | 435,466 | 3,466 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 10,444 | 332,000 | 335,325 | 3,325 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | THB | 6,796 | 217,000 | 218,199 | 1,199 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 27 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Thai Baht (cont’d.), | ||||||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | THB | 5,541 | $ | 177,100 | $ | 177,902 | $ | 802 | $ | — | |||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | THB | 2,033 | 65,159 | 65,256 | 97 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | THB | 5,279 | 169,000 | 169,481 | 481 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | THB | 4,597 | 147,000 | 147,607 | 607 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | THB | 2,123 | 67,836 | 68,157 | 321 | — | |||||||||||||||||||
Turkish Lira, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | TRY | 2,033 | 260,749 | 239,670 | — | (21,079 | ) | ||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | TRY | 1,851 | 243,194 | 218,172 | — | (25,022 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | TRY | 1,547 | 184,258 | 182,372 | — | (1,886 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | TRY | 907 | 116,963 | 106,916 | — | (10,047 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | TRY | 161 | 20,419 | 19,002 | — | (1,417 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | TRY | 2,576 | 342,751 | 303,704 | — | (39,047 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | TRY | 2,419 | 317,675 | 285,193 | — | (32,482 | ) | ||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 53,223,892 | $ | 53,198,972 | 399,374 | (424,294 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
Sale | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: |
| |||||||||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 2,481 | $ | 438,218 | $ | 456,549 | $ | — | $ | (18,331 | ) | ||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 1,075 | 183,000 | 197,905 | — | (14,905 | ) | ||||||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 517 | 88,000 | 95,071 | — | (7,071 | ) | ||||||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 511 | 89,000 | 94,014 | — | (5,014 | ) | ||||||||||||||||||
Expiring 05/04/21 | Deutsche Bank AG | BRL | 15,038 | 2,729,270 | 2,767,445 | — | (38,175 | ) | ||||||||||||||||||
Expiring 05/04/21 | JPMorgan Chase Bank, N.A. | BRL | 1,158 | 208,000 | 213,038 | — | (5,038 | ) | ||||||||||||||||||
Expiring 05/04/21 | JPMorgan Chase Bank, N.A. | BRL | 960 | 171,000 | 176,750 | — | (5,750 | ) |
See Notes to Financial Statements.
28 |
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Brazilian Real (cont’d.), | ||||||||||||||||||||||||||
Expiring 05/04/21 | Morgan Stanley & Co. International PLC | BRL | 1,910 | $ | 342,000 | $ | 351,504 | $ | — | $ | (9,504 | ) | ||||||||||||||
Expiring 05/04/21 | Morgan Stanley & Co. International PLC | BRL | 556 | 99,245 | 102,370 | — | (3,125 | ) | ||||||||||||||||||
Expiring 05/04/21 | Morgan Stanley & Co. International PLC | BRL | 538 | 94,857 | 99,031 | — | (4,174 | ) | ||||||||||||||||||
Expiring 07/02/21 | Credit Suisse International | BRL | 610 | 113,000 | 111,627 | 1,373 | — | |||||||||||||||||||
Expiring 07/02/21 | JPMorgan Chase Bank, N.A. | BRL | 269 | 49,352 | 49,321 | 31 | — | |||||||||||||||||||
Chilean Peso, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | CLP | 118,449 | 170,000 | 166,612 | 3,388 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | CLP | 123,826 | 169,000 | 174,175 | — | (5,175 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 377,114 | 509,958 | 530,453 | — | (20,495 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 126,636 | 173,000 | 178,128 | — | (5,128 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 123,953 | 169,000 | 174,354 | — | (5,354 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 28,960 | 40,653 | 40,736 | — | (83 | ) | ||||||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||||||
Expiring 05/14/21 | JPMorgan Chase Bank, N.A. | CNH | 4,640 | 666,044 | 716,081 | — | (50,037 | ) | ||||||||||||||||||
Expiring 05/18/21 | BNP Paribas S.A. | CNH | 950 | 146,215 | 146,567 | — | (352 | ) | ||||||||||||||||||
Expiring 05/18/21 | Citibank, N.A. | CNH | 1,717 | 260,000 | 264,879 | — | (4,879 | ) | ||||||||||||||||||
Expiring 05/18/21 | Citibank, N.A. | CNH | 846 | 128,735 | 130,584 | — | (1,849 | ) | ||||||||||||||||||
Expiring 05/18/21 | Goldman Sachs International | CNH | 6,513 | 991,000 | 1,004,828 | — | (13,828 | ) | ||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 2,655 | 402,000 | 409,616 | — | (7,616 | ) | ||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 2,176 | 332,000 | 335,695 | — | (3,695 | ) | ||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 2,123 | 323,000 | 327,492 | — | (4,492 | ) | ||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 1,019 | 154,345 | 157,191 | — | (2,846 | ) | ||||||||||||||||||
Expiring 05/18/21 | JPMorgan Chase Bank, N.A. | CNH | 1,211 | 184,025 | 186,880 | — | (2,855 | ) | ||||||||||||||||||
Expiring 05/18/21 | JPMorgan Chase Bank, N.A. | CNH | 901 | 138,356 | 139,082 | — | (726 | ) | ||||||||||||||||||
Expiring 05/18/21 | Morgan Stanley & Co. International PLC | CNH | 1,649 | 252,000 | 254,439 | — | (2,439 | ) | ||||||||||||||||||
Expiring 05/18/21 | UBS AG | CNH | 4,526 | 692,017 | 698,257 | — | (6,240 | ) | ||||||||||||||||||
Colombian Peso, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | COP | 533,397 | 143,724 | 141,780 | 1,944 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 29 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Colombian Peso (cont’d.), | ||||||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | COP | 301,699 | $ | 80,442 | $ | 80,194 | $ | 248 | $ | — | |||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 460,194 | 126,000 | 122,322 | 3,678 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 407,744 | 112,000 | 108,381 | 3,619 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 278,265 | 77,000 | 73,965 | 3,035 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 272,867 | 74,531 | 72,530 | 2,001 | — | |||||||||||||||||||
Euro, | ||||||||||||||||||||||||||
Expiring 07/19/21 | BNP Paribas S.A. | EUR | 33 | 39,148 | 39,312 | — | (164 | ) | ||||||||||||||||||
Expiring 07/19/21 | HSBC Bank PLC | EUR | 43 | 51,863 | 52,112 | — | (249 | ) | ||||||||||||||||||
Expiring 07/19/21 | Morgan Stanley & Co. International PLC | EUR | 307 | 368,503 | 369,705 | — | (1,202 | ) | ||||||||||||||||||
Hungarian Forint, | ||||||||||||||||||||||||||
Expiring 07/19/21 | Bank of America, N.A. | HUF | 21,601 | 71,899 | 72,054 | — | (155 | ) | ||||||||||||||||||
Expiring 07/19/21 | Barclays Bank PLC | HUF | 126,917 | 419,345 | 423,350 | — | (4,005 | ) | ||||||||||||||||||
Expiring 07/19/21 | Barclays Bank PLC | HUF | 18,931 | 62,684 | 63,148 | — | (464 | ) | ||||||||||||||||||
Expiring 07/19/21 | Goldman Sachs International | HUF | 39,255 | 130,181 | 130,943 | — | (762 | ) | ||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | HUF | 17,902 | 59,767 | 59,716 | 51 | — | |||||||||||||||||||
Indian Rupee, | ||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | INR | 16,813 | 223,000 | 225,038 | — | (2,038 | ) | ||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | INR | 9,712 | 129,000 | 129,985 | — | (985 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | INR | 23,390 | 318,000 | 313,061 | 4,939 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | INR | 12,603 | 171,000 | 168,688 | 2,312 | — | |||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International | INR | 15,885 | 216,000 | 212,608 | 3,392 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 15,610 | 211,000 | 208,927 | 2,073 | — | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 13,400 | 182,000 | 179,347 | 2,653 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 15,275 | 201,000 | 204,448 | — | (3,448 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 14,616 | 197,000 | 195,632 | 1,368 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 13,812 | 184,000 | 184,866 | — | (866 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 10,523 | 143,000 | 140,840 | 2,160 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 18,250 | 244,000 | 244,264 | — | (264 | ) |
See Notes to Financial Statements.
30 |
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Indian Rupee (cont’d.), | ||||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 15,301 | $ | 205,000 | $ | 204,799 | $ | 201 | $ | — | |||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 5,619 | 74,531 | 75,206 | — | (675 | ) | ||||||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | IDR | 6,163,124 | 417,697 | 423,524 | — | (5,827 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | IDR | 996,070 | 67,700 | 68,449 | — | (749 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | IDR | 726,557 | 49,635 | 49,928 | — | (293 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 2,541,009 | 174,000 | 174,616 | — | (616 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 1,684,923 | 115,000 | 115,786 | — | (786 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | IDR | 2,570,128 | 176,000 | 176,617 | — | (617 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | IDR | 2,397,112 | 162,612 | 164,727 | — | (2,115 | ) | ||||||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Bank of America, N.A. | ILS | 429 | 129,000 | 131,984 | — | (2,984 | ) | ||||||||||||||||||
Expiring 06/16/21 | Bank of America, N.A. | ILS | 134 | 40,653 | 41,209 | — | (556 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 628 | 189,000 | 193,389 | — | (4,389 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 440 | 132,000 | 135,673 | — | (3,673 | ) | ||||||||||||||||||
Japanese Yen, | ||||||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | JPY | 36,604 | 339,000 | 335,159 | 3,841 | — | |||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | JPY | 18,228 | 167,670 | 166,900 | 770 | — | |||||||||||||||||||
Expiring 07/20/21 | JPMorgan Chase Bank, N.A. | JPY | 18,494 | 170,000 | 169,344 | 656 | — | |||||||||||||||||||
Malaysian Ringgit, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | MYR | 457 | 110,000 | 111,397 | — | (1,397 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | MYR | 434 | 105,000 | 105,797 | — | (797 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MYR | 365 | 88,082 | 88,837 | — | (755 | ) | ||||||||||||||||||
Mexican Peso, | ||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | MXN | 2,251 | 111,000 | 110,550 | 450 | — | |||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | MXN | 1,936 | 94,000 | 95,053 | — | (1,053 | ) | ||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | MXN | 1,702 | 81,000 | 83,552 | — | (2,552 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | MXN | 6,916 | 340,856 | 339,585 | 1,271 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | MXN | 4,858 | 233,004 | 238,571 | — | (5,567 | ) | ||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | MXN | 3,885 | 191,000 | 190,787 | 213 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 31 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Mexican Peso (cont’d.), | ||||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | MXN | 3,981 | $ | 198,924 | $ | 195,463 | $ | 3,461 | $ | — | |||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | MXN | 3,579 | 175,973 | 175,726 | 247 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | MXN | 1,616 | 77,000 | 79,333 | — | (2,333 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 1,405 | 65,337 | 68,972 | — | (3,635 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 1,387 | 68,434 | 68,119 | 315 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MXN | 2,337 | 115,184 | 114,780 | 404 | — | |||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | TWD | 5,801 | 207,000 | 208,593 | — | (1,593 | ) | ||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International TWD | 8,873 | 316,000 | 319,063 | — | (3,063 | ) | |||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International TWD | 8,277 | 296,000 | 297,608 | — | (1,608 | ) | |||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International TWD | 4,912 | 174,000 | 176,609 | — | (2,609 | ) | |||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | TWD | 8,255 | 292,000 | 296,809 | — | (4,809 | ) | ||||||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 3,158 | 852,606 | 834,855 | 17,751 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 638 | 170,000 | 168,650 | 1,350 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 138 | 38,000 | 36,461 | 1,539 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | PEN | 1,700 | 459,009 | 449,538 | 9,471 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | PEN | 1,160 | 317,799 | 306,654 | 11,145 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | PEN | 139 | 36,716 | 36,769 | — | (53 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | PEN | 1,183 | 322,996 | 312,788 | 10,208 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | PEN | 297 | 80,000 | 78,411 | 1,589 | — | |||||||||||||||||||
Philippine Peso, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PHP | 9,630 | 198,000 | 198,111 | — | (111 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | PHP | 16,304 | 335,000 | 335,409 | — | (409 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | PHP | 10,729 | 221,000 | 220,715 | 285 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | PHP | 1,052 | 21,527 | 21,637 | — | (110 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | PHP | 4,312 | 88,082 | 88,710 | — | (628 | ) |
See Notes to Financial Statements.
32 |
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
Philippine Peso (cont’d.), | ||||||||||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | PHP | 9,229 | $ | 190,000 | $ | 189,861 | $ | 139 | $ | — | |||||||||||||||
Polish Zloty, | ||||||||||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | PLN | 135 | 35,581 | 35,551 | 30 | — | |||||||||||||||||||
Romanian Leu, | ||||||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | RON | 217 | 52,722 | 52,689 | 33 | — | |||||||||||||||||||
Russian Ruble, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | RUB | 4,584 | 59,434 | 60,584 | — | (1,150 | ) | ||||||||||||||||||
Expiring 06/16/21 | Deutsche Bank AG | RUB | 5,591 | 75,000 | 73,885 | 1,115 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | RUB | 7,827 | 105,000 | 103,444 | 1,556 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | RUB | 5,144 | 70,000 | 67,985 | 2,015 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 25,364 | 339,000 | 335,205 | 3,795 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 6,175 | 82,000 | 81,603 | 397 | — | |||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 3,172 | 40,653 | 41,925 | — | (1,272 | ) | ||||||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | SGD | 242 | 181,000 | 181,728 | — | (728 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | SGD | 55 | 40,653 | 40,959 | — | (306 | ) | ||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | SGD | 329 | 245,000 | 246,864 | — | (1,864 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | SGD | 588 | 441,987 | 442,141 | — | (154 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | SGD | 295 | 222,000 | 221,776 | 224 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | SGD | 247 | 184,000 | 185,558 | — | (1,558 | ) | ||||||||||||||||||
Expiring 06/16/21 | UBS AG | SGD | 287 | 215,000 | 215,612 | — | (612 | ) | ||||||||||||||||||
South African Rand, | ||||||||||||||||||||||||||
Expiring 06/17/21 | Bank of America, N.A. | ZAR | 2,034 | 130,000 | 139,279 | — | (9,279 | ) | ||||||||||||||||||
Expiring 06/17/21 | Barclays Bank PLC | ZAR | 12,240 | 802,122 | 838,324 | — | (36,202 | ) | ||||||||||||||||||
Expiring 06/17/21 | Barclays Bank PLC | ZAR | 2,620 | 181,454 | 179,428 | 2,026 | — | |||||||||||||||||||
Expiring 06/17/21 | Barclays Bank PLC | ZAR | 1,294 | 90,604 | 88,622 | 1,982 | — | |||||||||||||||||||
Expiring 06/17/21 | BNP Paribas S.A. | ZAR | 2,050 | 132,000 | 140,368 | — | (8,368 | ) | ||||||||||||||||||
Expiring 06/17/21 | BNP Paribas S.A. | ZAR | 1,425 | 91,725 | 97,580 | — | (5,855 | ) | ||||||||||||||||||
Expiring 06/17/21 | Deutsche Bank AG | ZAR | 11,868 | 771,501 | 812,824 | — | (41,323 | ) | ||||||||||||||||||
Expiring 06/17/21 | HSBC Bank PLC | ZAR | 2,155 | 137,000 | 147,580 | — | (10,580 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 33 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||||
South African Rand (cont’d.), | ||||||||||||||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 31,475 | $ | 2,059,418 | $ | 2,155,691 | $ | — | $ | (96,273 | ) | ||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 1,073 | 73,549 | 73,523 | 26 | — | |||||||||||||||||||
Expiring 06/17/21 | Morgan Stanley & Co. International PLC | ZAR | 2,608 | 170,000 | 178,651 | — | (8,651 | ) | ||||||||||||||||||
Expiring 06/17/21 | UBS AG | ZAR | 1,092 | 73,236 | 74,778 | — | (1,542 | ) | ||||||||||||||||||
Expiring 06/17/21 | UBS AG | ZAR | 866 | 57,087 | 59,345 | — | (2,258 | ) | ||||||||||||||||||
South Korean Won, | ||||||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | KRW | 2,058,793 | 1,802,101 | 1,841,609 | — | (39,508 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | KRW | 242,547 | 218,000 | 216,960 | 1,040 | — | |||||||||||||||||||
Expiring 06/16/21 | UBS AG | KRW | 161,908 | 142,000 | 144,829 | — | (2,829 | ) | ||||||||||||||||||
Thai Baht, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | THB | 8,272 | 268,000 | 265,574 | 2,426 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 9,365 | 305,000 | 300,678 | 4,322 | — | |||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 6,197 | 196,490 | 198,967 | — | (2,477 | ) | ||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 10,619 | 340,000 | 340,929 | — | (929 | ) | ||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 5,452 | 176,000 | 175,057 | 943 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | THB | 7,980 | 259,000 | 256,219 | 2,781 | — | |||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | THB | 6,905 | 220,000 | 221,685 | — | (1,685 | ) | ||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | THB | 1,203 | 38,359 | 38,640 | — | (281 | ) | ||||||||||||||||||
Turkish Lira, | ||||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | TRY | 647 | 82,000 | 76,243 | 5,757 | — | |||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | TRY | 2,468 | 279,600 | 291,004 | — | (11,404 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | TRY | 6,318 | 729,098 | 744,877 | — | (15,779 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | TRY | 513 | 65,647 | 60,533 | 5,114 | — | |||||||||||||||||||
Expiring 06/16/21 | UBS AG | TRY | 1,764 | 209,424 | 207,912 | 1,512 | — | |||||||||||||||||||
Ukraine Hryvna, | ||||||||||||||||||||||||||
Expiring 05/05/21 | JPMorgan Chase Bank, N.A. | UAH | 5,337 | 186,405 | 191,608 | — | (5,203 | ) | ||||||||||||||||||
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|
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|
| |||||||||||||||||||
$ | 36,698,254 | $ | 37,185,799 | 140,665 | (628,210 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
| |||||||||||||||||||
$ | 540,039 | $ | (1,052,504 | ) | ||||||||||||||||||||||
|
|
|
|
See Notes to Financial Statements.
34 |
Cross currency exchange contracts outstanding at April 30, 2021:
Settlement | Type | Notional Amount (000) | In Exchange For (000) | Unrealized Appreciation | Unrealized Depreciation | Counterparty | ||||||||
OTC Cross Currency Exchange Contracts: | ||||||||||||||
07/19/21 | Buy | EUR 141 | JPY | 18,447 | $891 | $— | JPMorgan Chase Bank, N.A. | |||||||
07/20/21 | Buy | AUD 218 | JPY | 18,346 | 11 | — | JPMorgan Chase Bank, N.A. | |||||||
|
| |||||||||||||
$902 | $— | |||||||||||||
|
|
Interest rate swap agreements outstanding at April 30, 2021:
Notional | Termination Date | Fixed | Floating | Value at Trade Date | Value at April 30, 2021 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Centrally Cleared Interest Rate Swap Agreements: | ||||||||||||||||||||||||
BRL | 3,678 | 01/02/23 | 4.245%(T) | 1 Day BROIS(2)(T) | $ | — | $ | (16,486 | ) | $ | (16,486 | ) | ||||||||||||
BRL | 4,661 | 01/02/23 | 6.440%(T) | 1 Day BROIS(2)(T) | — | 5,822 | 5,822 | |||||||||||||||||
BRL | 3,324 | 01/02/23 | 6.450%(T) | 1 Day BROIS(2)(T) | — | 3,349 | 3,349 | |||||||||||||||||
BRL | 4,559 | 01/02/23 | 6.565%(T) | 1 Day BROIS(2)(T) | — | 7,723 | 7,723 | |||||||||||||||||
BRL | 1,374 | 01/02/24 | 4.590%(T) | 1 Day BROIS(2)(T) | — | (11,644 | ) | (11,644 | ) | |||||||||||||||
BRL | 3,769 | 01/02/25 | 5.755%(T) | 1 Day BROIS(2)(T) | — | (20,247 | ) | (20,247 | ) | |||||||||||||||
BRL | 1,478 | 01/02/25 | 5.840%(T) | 1 Day BROIS(2)(T) | — | (5,131 | ) | (5,131 | ) | |||||||||||||||
BRL | 2,540 | 01/02/25 | 8.140%(T) | 1 Day BROIS(1)(T) | — | (10,629 | ) | (10,629 | ) | |||||||||||||||
BRL | 1,190 | 01/02/25 | 8.250%(T) | 1 Day BROIS(1)(T) | — | (5,954 | ) | (5,954 | ) | |||||||||||||||
BRL | 668 | 01/04/27 | 6.325%(T) | 1 Day BROIS(2)(T) | — | (7,456 | ) | (7,456 | ) | |||||||||||||||
BRL | 1,056 | 01/04/27 | 6.529%(T) | 1 Day BROIS(2)(T) | — | (9,299 | ) | (9,299 | ) | |||||||||||||||
BRL | 1,292 | 01/04/27 | 6.595%(T) | 1 Day BROIS(2)(T) | — | (15,703 | ) | (15,703 | ) | |||||||||||||||
BRL | 6,170 | 01/04/27 | 7.060%(T) | 1 Day BROIS(1)(T) | 30,830 | 55,672 | 24,842 | |||||||||||||||||
BRL | 1,885 | 01/04/27 | 7.745%(T) | 1 Day BROIS(1)(T) | — | 5,477 | 5,477 | |||||||||||||||||
BRL | 1,372 | 01/04/27 | 8.570%(T) | 1 Day BROIS(1)(T) | — | (7,162 | ) | (7,162 | ) | |||||||||||||||
BRL | 1,431 | 01/04/27 | 8.600%(T) | 1 Day BROIS(1)(T) | — | (8,044 | ) | (8,044 | ) | |||||||||||||||
CLP | 220,800 | 05/03/31 | 3.680%(S) | 1 Day CLOIS(1)(S) | — | (1,144 | ) | (1,144 | ) | |||||||||||||||
CNH | 2,100 | 06/15/25 | 2.175%(Q) | 7 Day China Fixing Repo Rates(2)(Q) | (2 | ) | (6,828 | ) | (6,826 | ) | ||||||||||||||
CNH | 3,515 | 06/19/25 | 2.200%(Q) | 7 Day China Fixing Repo Rates(2)(Q) | (5 | ) | (10,887 | ) | (10,882 | ) | ||||||||||||||
CNH | 3,085 | 10/30/25 | 2.535%(Q) | 7 Day China Fixing Repo Rates(2)(Q) | 21 | (3,994 | ) | (4,015 | ) | |||||||||||||||
COP | 950,000 | 12/12/23 | 5.530%(Q) | 1 Day COOIS(2)(Q) | — | 15,510 | 15,510 | |||||||||||||||||
COP | 1,042,000 | 12/19/24 | 4.900%(Q) | 1 Day COOIS(1)(Q) | (1,535 | ) | (10,680 | ) | (9,145 | ) | ||||||||||||||
COP | 2,400,000 | 03/15/26 | 3.793%(Q) | 1 Day COOIS(1)(Q) | 1,995 | 16,634 | 14,639 | |||||||||||||||||
COP | 1,290,000 | 04/07/26 | 4.425%(Q) | 1 Day COOIS(2)(Q) | — | 77 | 77 | |||||||||||||||||
KRW | 3,700,000 | 03/12/26 | 1.407%(Q) | 3 Month KWCDC(2)(Q) | (9,177 | ) | (9,731 | ) | (554 | ) | ||||||||||||||
MXN | 27,450 | 02/03/25 | 6.405%(M) | 28 Day Mexican Interbank Rate(2)(M) | — | 34,460 | 34,460 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 35 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Interest rate swap agreements outstanding at April 30, 2021 (continued):
Notional | Termination Date | Fixed | Floating | Value at Trade Date | Value at April 30, 2021 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||
Centrally Cleared Interest Rate Swap Agreements (cont’d.): | ||||||||||||||||||||||||
MXN | 6,470 | 02/26/25 | 6.145%(M) | 28 Day Mexican Interbank Rate(2)(M) | $ | 7 | $ | 4,653 | $ | 4,646 | ||||||||||||||
MXN | 1,757 | 03/03/25 | 6.090%(M) | 28 Day Mexican Interbank Rate(2)(M) | 3 | 1,189 | 1,186 | |||||||||||||||||
MXN | 1,757 | 03/03/25 | 6.140%(M) | 28 Day Mexican Interbank Rate(2)(M) | 2 | 1,344 | 1,342 | |||||||||||||||||
MXN | 27,880 | 05/02/25 | 5.285%(M) | 28 Day Mexican Interbank Rate(2)(M) | 71 | (24,501 | ) | (24,572 | ) | |||||||||||||||
MXN | 2,775 | 03/11/26 | 4.800%(M) | 28 Day Mexican Interbank Rate(2)(M) | — | (7,223 | ) | (7,223 | ) | |||||||||||||||
MXN | 25,560 | 03/11/26 | 4.845%(M) | 28 Day Mexican Interbank Rate(2)(M) | (14,936 | ) | (64,047 | ) | (49,111 | ) | ||||||||||||||
MXN | 25,403 | 03/19/26 | 6.026%(M) | 28 Day Mexican Interbank Rate(2)(M) | 4,007 | 429 | (3,578 | ) | ||||||||||||||||
MXN | 9,380 | 06/10/26 | 5.800%(M) | 28 Day Mexican Interbank Rate(1)(M) | — | 6,853 | 6,853 | |||||||||||||||||
MXN | 2,040 | 01/28/30 | 6.640%(M) | 28 Day Mexican Interbank Rate(2)(M) | — | (633 | ) | (633 | ) | |||||||||||||||
MXN | 3,800 | 04/04/31 | 6.530%(M) | 28 Day Mexican Interbank Rate(2)(M) | (36 | ) | (5,192 | ) | (5,156 | ) | ||||||||||||||
PLN | 2,700 | 07/24/24 | 1.798%(A) | 6 Month WIBOR(2)(S) | — | 27,639 | 27,639 | |||||||||||||||||
PLN | 1,500 | 09/08/25 | 0.637%(A) | 6 Month WIBOR(2)(S) | 1,813 | (9,675 | ) | (11,488 | ) | |||||||||||||||
PLN | 2,286 | 02/15/26 | 0.875%(A) | 6 Month WIBOR(1)(S) | 5,956 | 13,900 | 7,944 | |||||||||||||||||
ZAR | 4,500 | 06/25/25 | 5.010%(Q) | 3 Month JIBAR(2)(Q) | (25 | ) | (4,670 | ) | (4,645 | ) | ||||||||||||||
ZAR | 21,771 | 08/21/25 | 4.978%(Q) | 3 Month JIBAR(1)(Q) | (10,249 | ) | 28,102 | 38,351 | ||||||||||||||||
ZAR | 26,705 | 03/24/26 | 6.010%(Q) | 3 Month JIBAR(1)(Q) | (6,994 | ) | (18,925 | ) | (11,931 | ) | ||||||||||||||
ZAR | 2,472 | 04/15/26 | 5.605%(Q) | 3 Month JIBAR(2)(Q) | (37 | ) | (1,735 | ) | (1,698 | ) | ||||||||||||||
ZAR | 6,890 | 03/17/31 | 6.829%(Q) | 3 Month JIBAR(1)(Q) | — | 23,206 | 23,206 | |||||||||||||||||
ZAR | 3,244 | 04/09/31 | 7.535%(Q) | 3 Month JIBAR(1)(Q) | 94 | 119 | 25 | |||||||||||||||||
ZAR | 3,244 | 04/13/31 | 7.530%(Q) | 3 Month JIBAR(2)(Q) | (47 | ) | (349 | ) | (302 | ) | ||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$ | 1,756 | $ | (45,811 | ) | $ | (47,567 | ) | |||||||||||||||||
|
|
|
|
|
|
Notional | Termination Date | Fixed Rate | Floating | Fair Value | Upfront Premiums Paid(Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||
OTC Interest Rate Swap Agreements: | ||||||||||||||||||||||
MYR 1,900 | 04/08/26 | 2.650%(Q) | 3 Month KLIBOR(1)(Q) | $ | 262 | $ | 36 | $ | 226 | Morgan Stanley & Co. International PLC | ||||||||||||
MYR 2,800 | 04/21/26 | 2.595%(Q) | 3 Month KLIBOR(1)(Q) | 2,482 | 24 | 2,458 | HSBC Bank PLC | |||||||||||||||
MYR 1,800 | 04/27/26 | 2.668%(Q) | 3 Month KLIBOR(1)(Q) | 144 | 26 | 118 | HSBC Bank PLC |
See Notes to Financial Statements.
36 |
Interest rate swap agreements outstanding at April 30, 2021 (continued):
Notional Amount (000)# | Termination Date | Fixed Rate | Floating Rate | Fair Value | Upfront Premiums Paid(Received) | Unrealized Appreciation (Depreciation) | Counterparty | |||||||||||||||||
OTC Interest Rate Swap Agreements (cont’d.): | ||||||||||||||||||||||||
RUB 50,000 | 06/16/23 | 6.002%(A) | 3 Month MosPRIME(2)(Q) | $ | (12,909 | ) | $ | — | $ | (12,909 | ) | Goldman Sachs International | ||||||||||||
RUB 96,500 | 06/16/26 | 6.653%(A) | 3 Month MosPRIME(2)(Q) | (29,559 | ) | — | (29,559 | ) | Goldman Sachs International | |||||||||||||||
|
|
|
|
|
| |||||||||||||||||||
$ | (39,580 | ) | $ | 86 | $ | (39,666 | ) | |||||||||||||||||
|
|
|
|
|
|
(1) | The Series pays the fixed rate and receives the floating rate. |
(2) | The Series pays the floating rate and receives the fixed rate. |
Balances Reported in the Statement of Assets and Liabilities for OTC Swap Agreements:
Premiums Paid | Premiums Received | Unrealized Appreciation | Unrealized Depreciation | |||||
OTC Swap Agreements | $86 | $— | $2,802 | $(42,468) |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
Broker | Cash and/or Foreign Currency | Securities Market Value | ||
Citigroup Global Markets, Inc. | $550,000 | $— | ||
J.P. Morgan Securities LLC | 170,000 | — | ||
|
| |||
Total | $720,000 | $— | ||
|
|
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2021 in valuing such portfolio securities:
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 37 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Sovereign Bonds | ||||||||||||
Angola | $ | — | $ | 438,885 | $ | — | ||||||
Argentina | — | 236,999 | — | |||||||||
Brazil | — | 2,732,455 | — | |||||||||
Chile | — | 1,664,307 | — | |||||||||
China | — | 6,561,745 | — | |||||||||
Colombia | — | 2,434,536 | — | |||||||||
Czech Republic | — | 2,006,709 | — | |||||||||
Dominican Republic | — | 154,083 | — | |||||||||
El Salvador | — | 131,424 | — | |||||||||
Gabon | — | 212,824 | — | |||||||||
Hungary | — | 2,670,583 | — | |||||||||
Indonesia | — | 6,933,564 | — | |||||||||
Ivory Coast | — | 155,195 | — | |||||||||
Malaysia | — | 4,467,240 | — | |||||||||
Mexico | — | 3,129,385 | — | |||||||||
Nigeria | — | 227,565 | — | |||||||||
Pakistan | — | 634,392 | — | |||||||||
Peru | — | 1,792,497 | — | |||||||||
Philippines | — | 119,201 | — | |||||||||
Poland | — | 3,170,014 | — | |||||||||
Romania | — | 1,794,998 | — | |||||||||
Russia | — | 2,274,079 | — | |||||||||
South Africa | — | 6,744,582 | — | |||||||||
Thailand | — | 4,973,654 | — | |||||||||
Turkey | — | 1,547,414 | — | |||||||||
Ukraine | — | 777,172 | — | |||||||||
Uruguay | — | 121,476 | — | |||||||||
Corporate Bonds | ||||||||||||
Belarus | — | 195,551 | — | |||||||||
Brazil | — | 412,810 | — | |||||||||
Jamaica | — | 221,771 | — | |||||||||
Malaysia | — | 211,355 | — | |||||||||
Mexico | — | 1,688,138 | — | |||||||||
Russia | — | 1,188,605 | — | |||||||||
South Africa | — | 422,509 | — | |||||||||
Supranational Bank | — | 1,057,499 | — | |||||||||
Affiliated Mutual Funds | 2,167,188 | — | — | |||||||||
Options Purchased | — | 10,286 | — | |||||||||
Foreign Treasury Obligation | — | 655,936 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 2,167,188 | $ | 64,171,438 | $ | — | ||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Options Written | $ | — | $ | (47,574 | ) | $ | — | |||||
|
|
|
|
|
|
See Notes to Financial Statements.
38 |
Level 1 | Level 2 | Level 3 | ||||||||||
Other Financial Instruments* | ||||||||||||
Assets | ||||||||||||
Futures Contracts | $ | 26,461 | $ | — | $ | — | ||||||
OTC Forward Foreign Currency Exchange Contracts | — | 540,039 | — | |||||||||
OTC Cross Currency Exchange Contracts | — | 902 | — | |||||||||
Centrally Cleared Interest Rate Swap Agreements | — | 223,091 | — | |||||||||
OTC Interest Rate Swap Agreements | — | 2,888 | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 26,461 | $ | 766,920 | $ | — | ||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
OTC Forward Foreign Currency Exchange Contracts | $ | — | $ | (1,052,504 | ) | $ | — | |||||
Centrally Cleared Interest Rate Swap Agreements | — | (270,658 | ) | — | ||||||||
OTC Interest Rate Swap Agreements | — | (42,468 | ) | — | ||||||||
|
|
|
|
|
| |||||||
Total | $ | — | $ | (1,365,630 | ) | $ | — | |||||
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2021 were as follows:
Sovereign Bonds | 85.1 | % | ||
Affiliated Mutual Funds (0.4% represents investments purchased with collateral from securities on loan) | 3.2 | |||
Oil & Gas | 1.8 | |||
Investment Companies | 1.7 | |||
Multi-National | 1.6 | |||
Telecommunications | 1.3 | |||
Foreign Treasury Obligation | 1.0 | |||
Chemicals | 0.3 | |||
Lodging | 0.3 | |||
Electric | 0.3 |
Retail | 0.3 | % | ||
Banks | 0.3 | |||
Options Purchased | 0.0 | * | ||
|
| |||
97.2 | ||||
Options Written | (0.1 | ) | ||
Other assets in excess of liabilities | 2.9 | |||
|
| |||
100.0 | % | |||
|
|
* | Less than +/- 0.05% |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Series invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are foreign exchange contracts risk and interest rate contracts risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Series’ financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 39 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Fair values of derivative instruments as of April 30, 2021 as presented in the Statement of Assets and Liabilities:
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Foreign exchange contracts | Unaffiliated investments | $ | 10,286 | Options written outstanding, at value | $ | 47,574 | ||||||
Foreign exchange contracts | Unrealized appreciation on OTC cross currency exchange contracts | 902 | — | — | ||||||||
Foreign exchange contracts | Unrealized appreciation on OTC forward foreign currency exchange contracts | 540,039 | Unrealized depreciation on OTC forward foreign currency exchange contracts | 1,052,504 | ||||||||
Interest rate contracts | Due from/to broker- variation margin futures | 26,461 | * | — | — | |||||||
Interest rate contracts | Due from/to broker- variation margin swaps | 223,091 | * | Due from/to broker- variation margin swaps | 270,658 | * | ||||||
Interest rate contracts | Premiums paid for OTC swap agreements | 86 | — | — | ||||||||
Interest rate contracts | Unrealized appreciation on OTC swap agreements | 2,802 | Unrealized depreciation on OTC swap | 42,468 | ||||||||
|
|
|
| |||||||||
$ | 803,667 | $ | 1,413,204 | |||||||||
|
|
|
|
* | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2021 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging | Options Purchased(1) | Options Written | Futures | Forward & Cross Currency Exchange Contracts | Swaps | |||||||||||||||
Foreign exchange contracts | $ | (90,058) | $ | 292,980 | $ | — | $ | 1,131,441 | $ | — | ||||||||||
Interest rate contracts | — | — | 44,651 | — | 365,783 | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | (90,058) | $ | 292,980 | $ | 44,651 | $ | 1,131,441 | $ | 365,783 | ||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
See Notes to Financial Statements.
40 |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | ||||||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Options Purchased(2) | Options Written | Futures | Forward & Cross Currency Exchange Contracts | Swaps | |||||||||||||||
Foreign exchange contracts | $ | (10,940) | $ | 16,423 | $ | — | $ | (540,416) | $ | — | ||||||||||
Interest rate contracts | — | — | 19,257 | — | (418,561) | |||||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
Total | $ | (10,940) | $ | 16,423 | $ | 19,257 | $ | (540,416) | $ | (418,561) | ||||||||||
|
|
|
|
|
|
|
|
|
|
(2) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2021, the Series’ average volume of derivative activities is as follows:
Options | Options Written(2) | Futures Contracts— Short Positions(2) | Forward Foreign Currency Exchange Contracts— Purchased(3) | |||||
$27,790 | $ | 7,483,089 | $4,965,529 | $52,666,673 |
Forward Foreign | Cross Currency Exchange Contracts(4) | Interest Rate Swap Agreements(2) | ||||||||
$34,190,149 | $581,124 | $27,207,735 |
(1) | Cost. |
(2) | Notional Amount in USD. |
(3) | Value at Settlement Date. |
(4) | Value at Trade Date. |
Average volume is based on average quarter end balances as noted for the six months ended April 30, 2021.
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Series invested in OTC derivatives and entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives and financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(2) | Net Amount | |||
Securities on Loan | $227,221 | $(227,221) | $— | |||
|
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 41 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Offsetting of OTC derivative assets and liabilities:
Counterparty | Gross Amounts of Recognized Assets(1) | Gross Amounts of Recognized Liabilities(1) | Net Amounts of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(2) | Net Amount | |||||||||||||||
Bank of America, N.A. | $ | 2,803 | $ | (12,974 | ) | $ | (10,171 | ) | $ | — | $ | (10,171 | ) | |||||||
Barclays Bank PLC | 34,578 | (124,555 | ) | (89,977 | ) | — | (89,977 | ) | ||||||||||||
BNP Paribas S.A. | 4,118 | (45,306 | ) | (41,188 | ) | — | (41,188 | ) | ||||||||||||
Citibank, N.A. | 135,261 | (94,934 | ) | 40,327 | — | 40,327 | ||||||||||||||
Credit Suisse International | 15,123 | (7,280 | ) | 7,843 | — | 7,843 | ||||||||||||||
Deutsche Bank AG | 37,104 | (79,498 | ) | (42,394 | ) | — | (42,394 | ) | ||||||||||||
Goldman Sachs International | 42,034 | (152,812 | ) | (110,778 | ) | — | (110,778 | ) | ||||||||||||
HSBC Bank PLC | 34,279 | (112,677 | ) | (78,398 | ) | — | (78,398 | ) | ||||||||||||
JPMorgan Chase Bank, N.A. | 80,971 | (373,883 | ) | (292,912 | ) | 290,000 | (2,912 | ) | ||||||||||||
Morgan Stanley & Co. International PLC | 157,001 | (124,753 | ) | 32,248 | — | 32,248 | ||||||||||||||
Standard Chartered | 5,460 | — | 5,460 | — | 5,460 | |||||||||||||||
The Toronto-Dominion Bank | 702 | — | 702 | — | 702 | |||||||||||||||
UBS AG | 4,681 | (13,874 | ) | (9,193 | ) | — | (9,193 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
| |||||||||||
$ | 554,115 | $ | (1,142,546 | ) | $ | (588,431 | ) | $ | 290,000 | $ | (298,431 | ) | ||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
(2) | Collateral amount disclosed by the Series is limited to the market value of financial instruments/transactions and the Series’ OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
42 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Assets | ||||
Investments at value, including securities on loan of $227,221: | ||||
Unaffiliated investments (cost $65,247,872) | $ | 64,171,438 | ||
Affiliated investments (cost $2,167,188) | 2,167,188 | |||
Foreign currency, at value (cost $219,747) | 220,177 | |||
Cash segregated for counterparty - OTC | 290,000 | |||
Dividends and interest receivable | 1,162,217 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 720,000 | |||
Unrealized appreciation on OTC forward foreign currency exchange contracts | 540,039 | |||
Receivable for investments sold | 285,073 | |||
Receivable for Series shares sold | 169,017 | |||
Tax reclaim receivable | 70,733 | |||
Unrealized appreciation on OTC swap agreements | 2,802 | |||
Unrealized appreciation on OTC cross currency exchange contracts | 902 | |||
Premiums paid for OTC swap agreements | 86 | |||
Prepaid expenses | 1,697 | |||
|
| |||
Total Assets | 69,801,369 | |||
|
| |||
Liabilities | ||||
Unrealized depreciation on OTC forward foreign currency exchange contracts | 1,052,504 | |||
Payable to broker for collateral for securities on loan | 248,101 | |||
Accrued expenses and other liabilities | 79,416 | |||
Payable for Series shares purchased | 71,104 | |||
Options written outstanding, at value (premiums received $59,300) | 47,574 | |||
Unrealized depreciation on OTC swap agreements | 42,468 | |||
Management fee payable | 13,384 | |||
Due to broker—variation margin swaps | 2,159 | |||
Due to broker—variation margin futures | 1,279 | |||
Distribution fee payable | 1,060 | |||
Directors’ fees payable | 921 | |||
Affiliated transfer agent fee payable | 733 | |||
Dividends payable | 613 | |||
|
| |||
Total Liabilities | 1,561,316 | |||
|
| |||
Net Assets | $ | 68,240,053 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 117,975 | ||
Paid-in capital in excess of par | 74,526,019 | |||
Total distributable earnings (loss) | (6,403,941 | ) | ||
|
| |||
Net assets, April 30, 2021 | $ | 68,240,053 | ||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 43 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Class A | ||||
Net asset value and redemption price per share, | ||||
($4,104,119 ÷ 715,797 shares of common stock issued and outstanding) | $ | 5.73 | ||
Maximum sales charge (3.25% of offering price) | 0.19 | |||
|
| |||
Maximum offering price to public | $ | 5.92 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share, | $ | 5.77 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share, | $ | 5.79 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, | $ | 5.78 | ||
|
|
See Notes to Financial Statements.
44 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income (net of $41,886 foreign withholding tax) | $ | 1,642,514 | ||
Affiliated dividend income | 2,459 | |||
Income from securities lending, net (including affiliated income of $76) | 126 | |||
|
| |||
Total income | 1,645,099 | |||
|
| |||
Expenses | ||||
Management fee | 218,555 | |||
Distribution fee(a) | 7,058 | |||
Custodian and accounting fees | 55,939 | |||
Audit fee | 32,350 | |||
Registration fees(a) | 31,116 | |||
Transfer agent’s fees and expenses (including affiliated expense of $1,802)(a) | 23,621 | |||
Legal fees and expenses | 8,218 | |||
Directors’ fees | 5,448 | |||
Shareholders’ reports | 4,149 | |||
SEC registration fees | 15 | |||
Miscellaneous | 11,948 | |||
|
| |||
Total expenses | 398,417 | |||
Less: Fee waiver and/or expense reimbursement(a) | (145,764 | ) | ||
|
| |||
Net expenses | 252,653 | |||
|
| |||
Net investment income (loss) | 1,392,446 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(48)) | (334,115 | ) | ||
Futures transactions | 44,651 | |||
Forward and cross currency contract transactions | 1,131,441 | |||
Options written transactions | 292,980 | |||
Swap agreement transactions | 365,783 | |||
Foreign currency transactions | (322,482 | ) | ||
|
| |||
1,178,258 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 1,476,364 | |||
Futures | 19,257 | |||
Forward and cross currency contracts | (540,416 | ) | ||
Options written | 16,423 | |||
Swap agreements | (418,561 | ) | ||
Foreign currencies | 88,643 | |||
|
| |||
641,710 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 1,819,968 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 3,212,414 | ||
|
|
PGIM Emerging Markets Debt Local Currency Fund | 45 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 4,980 | 2,078 | — | — | ||||||||||||
Registration fees | 7,905 | 7,094 | 9,022 | 7,095 | ||||||||||||
Transfer agent’s fees and expenses | 2,549 | 545 | 20,492 | 35 | ||||||||||||
Fee waiver and/or expense reimbursement | (12,907 | ) | (7,904 | ) | (117,738 | ) | (7,215 | ) |
See Notes to Financial Statements.
46 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 1,392,446 | $ | 2,855,666 | ||||
Net realized gain (loss) on investment and foreign currency transactions | 1,178,258 | (4,985,868 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 641,710 | (3,815,388 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 3,212,414 | (5,945,590 | ) | |||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class A | (87,214 | ) | — | |||||
Class C | (7,602 | ) | — | |||||
Class Z | (1,499,505 | ) | — | |||||
Class R6 | (1,167 | ) | — | |||||
|
|
|
| |||||
(1,595,488 | ) | — | ||||||
|
|
|
| |||||
Tax return of capital distributions | ||||||||
Class A | — | (167,490 | ) | |||||
Class C | — | (19,547 | ) | |||||
Class Z | — | (2,965,432 | ) | |||||
Class R6 | — | (2,195 | ) | |||||
|
|
|
| |||||
— | (3,154,664 | ) | ||||||
|
|
|
| |||||
Series share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 12,166,860 | 25,439,494 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 1,587,851 | 3,077,906 | ||||||
Cost of shares purchased | (8,892,604 | ) | (30,057,181 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Series share transactions | 4,862,107 | (1,539,781 | ) | |||||
|
|
|
| |||||
Total increase (decrease) | 6,479,033 | (10,640,035 | ) | |||||
Net Assets: | ||||||||
Beginning of period | 61,761,020 | 72,401,055 | ||||||
|
|
|
| |||||
End of period | $ | 68,240,053 | $ | 61,761,020 | ||||
|
|
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 47 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company and currently consists of seven series: PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Jennison Global Infrastructure Fund, PGIM Jennison Global Opportunities Fund, PGIM Jennison International Opportunities Fund, PGIM QMA International Equity Fund and PGIM Emerging Markets Debt Hard Currency Fund, each of which are diversified funds for purposes of the 1940 Act, and PGIM Emerging Markets Debt Local Currency Fund, which is a non-diversified fund for purposes of the 1940 Act , and therefore, may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. These financial statements relate only to the PGIM Emerging Markets Debt Local Currency Fund (the “Series”).
The investment objective of the Series is total return, through a combination of current income and capital appreciation.
2. Accounting Policies
The Series follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Series in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Series’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The Fund’s Board of Directors (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A
48 |
record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Series’ foreign investments may change on days when investors cannot purchase or redeem Series shares.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Series utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
PGIM Emerging Markets Debt Local Currency Fund | 49 |
Notes to Financial Statements (unaudited) (continued)
OTC and centrally cleared derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valued using the market approach and/or income approach which generally involves obtaining data from an approved independent third-party vendor source. The Series utilizes the market approach when quoted prices in broker-dealer markets are available but also includes consideration of alternative valuation approaches, including the income approach. In the absence of reliable market quotations, the income approach is typically utilized for purposes of valuing derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument is equal to the present value of its future cash inflows or outflows. Such analysis includes projecting future cash flows and determining the discount rate (including the present value factors that affect the discount rate) used to discount the future cash flows. In addition, the third-party vendors’ valuation techniques used to derive the evaluated derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing unobservable inputs in the income approach. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value 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 the 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 Manager 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the current rates of exchange;
50 |
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Notwithstanding the above, the Series does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Forward and Cross Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Series enters into forward currency contracts, as defined in the prospectus, in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency and to gain exposure to certain currencies. The contracts are valued daily at current forward exchange rates and any unrealized gain (loss) is included in net unrealized appreciation or depreciation on forward and cross currency contracts. Gain (loss) is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain (loss), if any, is included in net realized gain (loss) on forward and cross currency contract transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Series’ maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life. A cross currency contract is a forward contract where a specified amount of one foreign currency will be exchanged for a specified amount of another foreign currency.
PGIM Emerging Markets Debt Local Currency Fund | 51 |
Notes to Financial Statements (unaudited) (continued)
Options: The Series purchased and/or wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign currency exchange rates with respect to securities or financial instruments which the Series currently owns or intends to purchase. The Series may also use options to gain additional market exposure. The Series’ principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Series purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Series writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Series realizes a gain (loss) to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Series has realized a gain (loss). The difference between the premium and the amount received or paid at the closing of a purchase or sale transaction is also treated as a realized gain (loss). Gain (loss) on purchased options is included in net realized gain (loss) on investment transactions. Gain (loss) on written options is presented separately as net realized gain (loss) on options written transactions.
The Series, as writer of an option, may have no control over whether the underlying securities or financial instruments may be sold (called) or purchased (put). As a result, the Series bears the market risk of an unfavorable change in the price of the security or financial instrument underlying the written option. The Series, as purchaser of an OTC option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts. With exchange-traded options contracts, there is minimal counterparty credit risk to the Series since the exchanges’ clearinghouse acts as counterparty to all exchange-traded options and guarantees the options contracts against default.
When the Series writes an option on a swap, an amount equal to any premium received by the Series is recorded as a liability and is subsequently adjusted to the current market value of the written option on the swap. If a call option on a swap is exercised, the Series becomes obligated to pay a fixed interest rate (noted as the strike price) and receive a variable interest rate on a notional amount. If a put option on a swap is exercised, the Series becomes obligated to pay a variable interest rate and receive a fixed interest rate (noted as the strike price) on a notional amount. Premiums received from writing options on swaps that expire or are exercised are treated as realized gains upon the expiration or exercise of such options on swaps. The risk associated with writing put and call options on swaps is that the Series will be obligated to be party to a swap agreement if an option on a swap is exercised.
Financial Futures Contracts: 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.
52 |
Upon entering into a financial futures contract, the Series is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Series each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Series invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Series intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Series may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Series since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Swap Agreements: The Series entered into certain types of swap agreements detailed in the disclosures below. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the OTC market and may be executed either directly with a counterparty (“OTC-traded”) or through a central clearing facility, such as a registered exchange. Swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on swap agreements. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiums paid and swap premiums received in the Statement of Assets and Liabilities. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments.
Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Series is subject to interest rate risk exposure in the normal course of pursuing its investment objective. The Series used interest rate swaps to maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments. The Series’ maximum risk of loss from counterparty credit risk is the discounted net present value of the cash flows to be received from the counterparty over the contract’s remaining life.
Master Netting Arrangements: The Fund, on behalf of the Series, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are
PGIM Emerging Markets Debt Local Currency Fund | 53 |
Notes to Financial Statements (unaudited) (continued)
agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Series. A master netting arrangement between the Series and the counterparty permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
The Fund, on behalf of the Series, is a party to International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Series is held in a segregated account by the Series’ custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Schedule of Investments. Collateral pledged by the Series is segregated by the Series’ custodian and identified in the Schedule of Investments. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the Series and the applicable counterparty. Collateral requirements are determined based on the Series’ net position with each counterparty. Termination events applicable to the Series may occur upon a decline in the Series’ net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Series’ counterparties to elect early termination could impact the Series’ future derivative activity.
In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified or received as collateral from the counterparty in accordance with
54 |
the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such OTC derivative agreements include conditions which, when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.
Short sales and OTC contracts, including forward foreign currency exchange contracts, swaps, forward rate agreements and written options involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities, if applicable. Such risks may be mitigated by engaging in master netting arrangements.
Securities Lending: The Series lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral.
The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Series becomes aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may
PGIM Emerging Markets Debt Local Currency Fund | 55 |
Notes to Financial Statements (unaudited) (continued)
differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
The Series is subject to foreign income taxes imposed by certain countries in which it invests. Additionally, capital gains realized upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. All taxes are computed in accordance with the applicable foreign tax law, and, to the extent permitted, capital losses are used to offset capital gains. Taxes attributable to income are accrued by the Series as a reduction of income. Current and deferred tax expense attributable to capital gains is reflected as a component of realized or change in unrealized gain/loss on securities in the accompanying financial statements. To the extent that the Series has country specific capital loss carryforwards, such carryforwards are applied against net unrealized gains when determining the deferred tax liability. Any deferred tax liability incurred by the Series is included in either Other liabilities or Deferred tax liability on the accompanying Statement of Assets and Liabilities.
Dividends and Distributions: The Series expects to declare dividends of its net investment income daily and pay such dividends monthly. Distributions of net realized capital and currency gains, if any, are declared and paid at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
56 |
3. Agreements
The Fund, on behalf of the Series, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadvisers’ performance of such services.
The Manager has entered into a subadvisory agreement with PGIM, Inc., which provides subadvisory services to the Series through its PGIM Fixed Income unit, and PGIM Limited (each a subadviser and collectively, the subadvisers). The Manager pays for the services of subadvisers.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.65% of the Series’ average daily net assets up to and including $1 billion; 0.63% from $1 billion to $3 billion of average daily net assets; 0.61% from $3 billion to $5 billion of average daily net assets; 0.60% from $5 billion to $10 billion of average daily net assets; and 0.59% on average daily net assets exceeding $10 billion. The effective management fee rate before any waivers and/or expense reimbursements was 0.65% for the reporting period ended April 30, 2021.
The Manager has contractually agreed, through February 28, 2022, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.13% of average daily net assets for Class A shares, 1.88% of average daily net assets for Class C shares, 0.72% of average daily net assets for Class Z shares and 0.65% of average daily net assets for Class R6 shares. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Series expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
The Fund, on behalf of the Series, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to 0.25% and 1% of the average daily net assets of the Class A and Class C shares, respectively. The distribution fees are accrued daily and payable
PGIM Emerging Markets Debt Local Currency Fund | 57 |
Notes to Financial Statements (unaudited) (continued)
monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z or Class R6 shares of the Series.
For the reporting period ended April 30, 2021, PIMS received $4,311 in front-end sales charges resulting from sales of Class A shares. Additionally, for the reporting period ended April 30, 2021, PIMS received $36 in contingent deferred sales charges imposed upon redemptions by certain Class C shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs.
PGIM Investments, PGIM, Inc. and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2021, no 17a-7 transactions were entered into by the Series.
58 |
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2021, were $14,459,158 and $8,645,690, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2021, is presented as follows:
Value, Beginning of Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wa) | ||||||||||||||||||||||||||||
$2,133,355 | $ | 13,455,279 | $ | 13,669,556 | $ | — | $ | — | $ | 1,919,078 | 1,919,078 | $ | 2,459 | |||||||||||||||
PGIM Institutional Money Market Fund (1)(b)(wa) | ||||||||||||||||||||||||||||
— | 731,194 | 483,036 | — | (48 | ) | 248,110 | 248,233 | 76 | (2) | |||||||||||||||||||
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$2,133,355 | $ | 14,186,473 | $ | 14,152,592 | $ | — | $ | (48 | ) | $ | 2,167,188 | $ | 2,535 | |||||||||||||||
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(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized depreciation as of April 30, 2021 were as follows:
Tax Basis | $68,608,427 | |||
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| |||
Gross Unrealized Appreciation | 1,479,697 | |||
Gross Unrealized Depreciation | (4,369,322 | ) | ||
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Net Unrealized Depreciation | $ (2,889,625 | ) | ||
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The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Series had a capital loss carryforward as of October 31, 2020 of approximately $4,412,000 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. Since tax
PGIM Emerging Markets Debt Local Currency Fund | 59 |
Notes to Financial Statements (unaudited) (continued)
authorities can examine previously filed tax returns, the Series’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2020 are subject to such review.
7. Capital and Ownership
The Series offers Class A, Class C, Class Z and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 3.25%. Investors who purchase $500,000 or more of Class A shares and sell those shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1.00% on sales although these purchases are not subject to a front-end sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock, below.
The Fund is authorized to issue 5.075 billion shares of common stock, $0.01 par value per share, 550 million of which are designated as shares of the Series. The shares are currently classified and designated as follows:
Class A | 10,000,000 | |
Class C | 50,000,000 | |
Class Z | 250,000,000 | |
Class T | 190,000,000 | |
Class R6 | 50,000,000 |
The Series currently does not have any Class T shares outstanding.
As of April 30, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Series as follows:
Number of Shares | Percentage of Outstanding Shares | |||||
Class Z | 3,548,884 | 32.2% | ||||
Class R6 | 184 | 2.1% |
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At the reporting period end, the number of shareholders holding greater than 5% of the Series are as follows:
Affiliated | Unaffiliated | |||||
Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | |||
1 | 30.1% | 3 | 63.1% |
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 61,453 | $ | 360,794 | |||||
Shares issued in reinvestment of dividends and distributions | 14,498 | 85,437 | ||||||
Shares purchased | (75,728 | ) | (453,983 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 223 | (7,752 | ) | |||||
Shares issued upon conversion from other share class(es) | 23,916 | 145,005 | ||||||
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Net increase (decrease) in shares outstanding | 24,139 | $ | 137,253 | |||||
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Year ended October 31, 2020: | ||||||||
Shares sold | 151,614 | $ | 859,877 | |||||
Shares issued in reinvestment of dividends and distributions | 28,771 | 163,559 | ||||||
Shares purchased | (102,959 | ) | (560,731 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 77,426 | 462,705 | ||||||
Shares issued upon conversion from other share class(es) | 5,898 | 31,679 | ||||||
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Net increase (decrease) in shares outstanding | 83,324 | $ | 494,384 | |||||
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Class C | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 1,860 | $ | 11,057 | |||||
Shares issued in reinvestment of dividends and distributions | 1,263 | 7,535 | ||||||
Shares purchased | (16,862 | ) | (98,042 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | (13,739 | ) | (79,450 | ) | ||||
Shares purchased upon conversion into other share class(es) | (23,758 | ) | (145,005 | ) | ||||
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Net increase (decrease) in shares outstanding | (37,497 | ) | $ | (224,455 | ) | |||
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Year ended October 31, 2020: | ||||||||
Shares sold | 8,600 | $ | 49,850 | |||||
Shares issued in reinvestment of dividends and distributions | 3,393 | 19,430 | ||||||
Shares purchased | (17,874 | ) | (104,373 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | (5,881 | ) | (35,093 | ) | ||||
Shares purchased upon conversion into other share class(es) | (5,855 | ) | (31,679 | ) | ||||
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Net increase (decrease) in shares outstanding | (11,736 | ) | $ | (66,772 | ) | |||
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Class Z | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 1,964,119 | $ | 11,789,180 | |||||
Shares issued in reinvestment of dividends and distributions | 251,060 | 1,493,712 | ||||||
Shares purchased | (1,392,979 | ) | (8,333,466 | ) | ||||
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Net increase (decrease) in shares outstanding | 822,200 | $ | 4,949,426 | |||||
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Year ended October 31, 2020: | ||||||||
Shares sold | 4,164,373 | $ | 24,507,148 | |||||
Shares issued in reinvestment of dividends and distributions | 504,320 | 2,892,722 | ||||||
Shares purchased | (5,579,432 | ) | (29,392,019 | ) | ||||
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Net increase (decrease) in shares outstanding | (910,739 | ) | $ | (1,992,149 | ) | |||
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PGIM Emerging Markets Debt Local Currency Fund | 61 |
Notes to Financial Statements (unaudited) (continued)
Class R6 | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 993 | $ | 5,829 | |||||
Shares issued in reinvestment of dividends and distributions | 197 | 1,167 | ||||||
Shares purchased | (1,210 | ) | (7,113 | ) | ||||
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Net increase (decrease) in shares outstanding | (20 | ) | $ | (117 | ) | |||
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Year ended October 31, 2020: | ||||||||
Shares sold | 3,743 | $ | 22,619 | |||||
Shares issued in reinvestment of dividends and distributions | 386 | 2,195 | ||||||
Shares purchased | (9 | ) | (58 | ) | ||||
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Net increase (decrease) in shares outstanding | 4,120 | $ | 24,756 | |||||
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8. Borrowings
The Fund, on behalf of the Series, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/2/2020 – 9/30/2021 | |
Total Commitment | $ 1,200,000,000 | |
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | |
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Series did not utilize the SCA during the reporting period ended April 30, 2021.
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9. Risks of Investing in the Series
The Series’ risks include, but are not limited to, some or all of the risks discussed below. For further information on the Series’ risks, please refer to the Series’ Prospectus and Statement of Additional Information.
Bond Obligations Risk: As with credit risk, market risk and interest rate risk, the Series’ holdings, share price, yield and total return may fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Series for redemption before it matures and the Series may lose income.
Credit Risk: This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract, may be unable or unwilling to make timely principal and interest payments, or to otherwise honor its obligations. Additionally, fixed income securities could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back debt. The longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Series. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Series will depend on the subadviser’s ability to analyze and manage derivative transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Series. The Series’ use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Series’ derivatives positions. In fact, many OTC derivative instruments lack liquidity beyond the counterparty to the instrument. OTC derivative instruments also involve the risk that the other party will not meet its obligations to the Series.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-US investors, or that prevent non-US investors from withdrawing their money at will. Countries with emerging markets can be found in regions such as Asia, Latin America, Eastern Europe and Africa.
The Series may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures
PGIM Emerging Markets Debt Local Currency Fund | 63 |
Notes to Financial Statements (unaudited) (continued)
and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Foreign Securities Risk: The Series’ investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. The securities of such issuers may trade in markets that are less liquid, less regulated and more volatile than US markets. The value of the Series’ investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial instability. Lack of information may also affect the value of these securities.
Interest Rate Risk: The value of your investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration debt securities. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Series may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Series’ holdings may fall sharply. This is referred to as “extension risk.” The Series may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Series’ shares. There is no requirement that these entities maintain their investment in the Series. There is a risk that such large shareholders or that the Series’ shareholders generally may redeem all or a substantial portion of their investments in the Series in a short period of time, which could have a significant negative impact on the Series’ NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Series’ ability to implement its investment strategy. The Series’ ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Series may invest a larger portion of its assets in cash or cash equivalents.
LIBOR Risk: Many financial instruments use or may use a floating rate based on the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks. Over the course of the last several years, global regulators have indicated an intent to phase out the use of LIBOR and similar interbank offering rates (IBOR). On November 30, 2020, the administrator of LIBOR announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until June 30,
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2023, with the remainder of LIBOR publications to still end at the end of 2021. There still remains uncertainty regarding the nature of any replacement rates for LIBOR and the other IBORs as well as around fallback approaches for instruments extending beyond the any phase-out of these reference rates. The lack of consensus around replacement rates and the uncertainty of the phase out of LIBOR and other IBORs may result in increased volatility in corporate or governmental debt, bank loans, derivatives and other instruments invested in by a Fund as well as loan facilities used by a Fund. As such, the potential impact of a transition away from LIBOR on a Fund or the financial instruments in which a Fund invests cannot yet be determined. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR and the other IBORs as benchmarks could deteriorate during the transition period, these effects could begin to be experienced by the end of 2021 and beyond until the anticipated discontinuance date in 2023 for the majority of the LIBOR rates.
Liquidity Risk: Liquidity risk is the risk that the Series could not meet requests to redeem shares issued by the Series without significant dilution of remaining investors’ interests in the Series. The Series may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Series is forced to sell these investments to pay redemption proceeds or for other reasons, the Series may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Series may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Series’ value or prevent the Series from being able to take advantage of other investment opportunities.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Series’ investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Series invests. Government intervention in
PGIM Emerging Markets Debt Local Currency Fund | 65 |
Notes to Financial Statements (unaudited) (continued)
markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Series’ securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Series fall, the value of your investment in the Series will decline.
Non-diversification Risk: The Series is non-diversified for purposes of the 1940 Act. This means that the Series may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. Investing in a non-diversified fund involves greater risk than investing in a diversified fund because a loss resulting from the decline in value of any one security may represent a greater portion of the total assets of a non-diversified fund.
10. Recent Accounting Pronouncement and Regulatory Developments
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance for applying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria are met. ASU 2020-04 is elective and is effective on March 12, 2020 through December 31, 2022. At this time, management is evaluating the implications of certain provisions of the ASU and any impact on the financial statement disclosures has not yet been determined.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Series.
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Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months 2021 | Year Ended October 31, | |||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $5.57 | $6.07 | $5.52 | $6.40 | $6.44 | $6.24 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.11 | 0.24 | 0.30 | 0.33 | 0.35 | 0.33 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.18 | (0.47 | ) | 0.57 | (0.86 | ) | (0.02 | ) | 0.23 | |||||||||||||||||||
Total from investment operations | 0.29 | (0.23 | ) | 0.87 | (0.53 | ) | 0.33 | 0.56 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income* | (0.13 | ) | - | (0.31 | ) | - | (0.15 | ) | - | (b) | ||||||||||||||||||
Tax return of capital distributions | - | (0.27 | ) | (0.01 | ) | (0.35 | ) | (0.22 | ) | (0.36 | ) | |||||||||||||||||
Total dividends and distributions | (0.13 | ) | (0.27 | ) | (0.32 | ) | (0.35 | ) | (0.37 | ) | (0.36 | ) | ||||||||||||||||
Net asset value, end of period | $5.73 | $5.57 | $6.07 | $5.52 | $6.40 | $6.44 | ||||||||||||||||||||||
Total Return(c): | 5.13 | % | (3.75 | )% | 16.14 | % | (8.68 | )% | 5.36 | % | 9.29 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $4,104 | $3,853 | $3,692 | $3,146 | $3,085 | $3,990 | ||||||||||||||||||||||
Average net assets (000) | $4,017 | $3,518 | $3,223 | $4,105 | $3,639 | $3,343 | ||||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.13 | %(f) | 1.13 | % | 1.13 | % | 1.13 | % | 1.13 | % | 1.28 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.78 | %(f) | 2.04 | % | 2.03 | % | 2.16 | % | 2.15 | % | 2.33 | % | ||||||||||||||||
Net investment income (loss) | 3.77 | %(f) | 4.24 | % | 5.13 | % | 5.34 | % | 5.42 | % | 5.20 | % | ||||||||||||||||
Portfolio turnover rate(g) | 14 | % | 64 | % | 69 | % | 113 | % | 186 | % | 196 | % |
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 67 |
Financial Highlights (unaudited) (continued)
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2021 | Year Ended October 31, | |||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $5.61 | $6.11 | $5.56 | $6.46 | $6.49 | $6.28 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.09 | 0.20 | 0.26 | 0.29 | 0.30 | 0.28 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.18 | (0.47 | ) | 0.57 | (0.88 | ) | (0.01 | ) | 0.25 | |||||||||||||||||||
Total from investment operations | 0.27 | (0.27 | ) | 0.83 | (0.59 | ) | 0.29 | 0.53 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income* | (0.11 | ) | - | (0.27 | ) | - | (0.13 | ) | - | (b) | ||||||||||||||||||
Tax return of capital distributions | - | (0.23 | ) | (0.01 | ) | (0.31 | ) | (0.19 | ) | (0.32 | ) | |||||||||||||||||
Total dividends and distributions | (0.11 | ) | (0.23 | ) | (0.28 | ) | (0.31 | ) | (0.32 | ) | (0.32 | ) | ||||||||||||||||
Net asset value, end of period | $5.77 | $5.61 | $6.11 | $5.56 | $6.46 | $6.49 | ||||||||||||||||||||||
Total Return(c): | 4.72 | % | (4.41 | )% | 15.18 | % | (9.61 | )% | 4.66 | % | 8.61 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $263 | $466 | $579 | $538 | $718 | $787 | ||||||||||||||||||||||
Average net assets (000) | $419 | $484 | $566 | $672 | $649 | $721 | ||||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.88 | %(f) | 1.88 | % | 1.88 | % | 1.88 | % | 1.88 | % | 2.03 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 5.68 | %(f) | 5.82 | % | 4.82 | % | 4.89 | % | 2.88 | % | 3.07 | % | ||||||||||||||||
Net investment income (loss) | 3.01 | %(f) | 3.54 | % | 4.37 | % | 4.56 | % | 4.63 | % | 4.40 | % | ||||||||||||||||
Portfolio turnover rate(g) | 14 | % | 64 | % | 69 | % | 113 | % | 186 | % | 196 | % |
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
68 |
Class Z Shares | ||||||||||||||||||||||||||||
Six Months 2021 | Year Ended October 31, | |||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $5.62 | $6.13 | $5.57 | $6.48 | $6.50 | $6.31 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.12 | 0.27 | 0.32 | 0.34 | 0.36 | 0.34 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.19 | (0.48 | ) | 0.58 | (0.88 | ) | 0.01 | 0.23 | ||||||||||||||||||||
Total from investment operations | 0.31 | (0.21 | ) | 0.90 | (0.54 | ) | 0.37 | 0.57 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income* | (0.14 | ) | - | (0.33 | ) | - | (0.16 | ) | - | (b) | ||||||||||||||||||
Tax return of capital distributions | - | (0.30 | ) | (0.01 | ) | (0.37 | ) | (0.23 | ) | (0.38 | ) | |||||||||||||||||
Total dividends and distributions | (0.14 | ) | (0.30 | ) | (0.34 | ) | (0.37 | ) | (0.39 | ) | (0.38 | ) | ||||||||||||||||
Net asset value, end of period | $5.79 | $5.62 | $6.13 | $5.57 | $6.48 | $6.50 | ||||||||||||||||||||||
Total Return(c): | 5.50 | % | (3.45 | )% | 16.50 | % | (8.83 | )% | 5.85 | % | 9.31 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $63,822 | $57,392 | $68,101 | $55,000 | $27,020 | $27,462 | ||||||||||||||||||||||
Average net assets (000) | $63,321 | $56,989 | $63,219 | $49,644 | $26,437 | $25,994 | ||||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.72 | %(f) | 0.74 | % | 0.88 | % | 0.88 | % | 0.88 | % | 1.03 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.09 | %(f) | 1.27 | % | 1.31 | % | 1.41 | % | 1.88 | % | 2.06 | % | ||||||||||||||||
Net investment income (loss) | 4.17 | %(f) | 4.72 | % | 5.35 | % | 5.50 | % | 5.58 | % | 5.36 | % | ||||||||||||||||
Portfolio turnover rate(g) | 14 | % | 64 | % | 69 | % | 113 | % | 186 | % | 196 | % |
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Local Currency Fund | 69 |
Financial Highlights (unaudited) (continued)
Class R6 Shares | ||||||||||||||||||||||||||||
Six Months 2021 | Year Ended October 31, | |||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $5.62 | $6.12 | $5.56 | $6.47 | $6.50 | $6.30 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.13 | 0.27 | 0.31 | 0.36 | 0.37 | 0.35 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.17 | (0.47 | ) | 0.58 | (0.89 | ) | - | (b) | 0.23 | |||||||||||||||||||
Total from investment operations | 0.30 | (0.20 | ) | 0.89 | (0.53 | ) | 0.37 | 0.58 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income* | (0.14 | ) | - | (0.32 | ) | - | (0.16 | ) | - | (b) | ||||||||||||||||||
Tax return of capital distributions | - | (0.30 | ) | (0.01 | ) | (0.38 | ) | (0.24 | ) | (0.38 | ) | |||||||||||||||||
Total dividends and distributions | (0.14 | ) | (0.30 | ) | (0.33 | ) | (0.38 | ) | (0.40 | ) | (0.38 | ) | ||||||||||||||||
Net asset value, end of period | $5.78 | $5.62 | $6.12 | $5.56 | $6.47 | $6.50 | ||||||||||||||||||||||
Total Return(c): | 5.36 | % | (3.24 | )% | 16.41 | % | (8.63 | )% | 5.82 | % | 9.55 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $51 | $50 | $29 | $1 | $1 | $1 | ||||||||||||||||||||||
Average net assets (000) | $49 | $42 | $15 | $1 | $1 | $1 | ||||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.65 | %(f) | 0.67 | % | 0.88 | % | 0.88 | % | 0.88 | % | 1.03 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 30.62 | %(f) | �� | 40.50 | % | 92.22 | % | 1,595.87 | % | 1.83 | % | 2.06 | % | |||||||||||||||
Net investment income (loss) | 4.25 | %(f) | 4.64 | % | 5.20 | % | 5.73 | % | 5.73 | % | 5.47 | % | ||||||||||||||||
Portfolio turnover rate(g) | 14 | % | 64 | % | 69 | % | 113 | % | 186 | % | 196 | % |
* | Dividends from net investment income may include other items that are ordinary income for tax purposes. |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
70 |
Series Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Series has adopted and implemented a liquidity risk management program (the “LRMP”). The Series’ LRMP seeks to assess and manage the Series’ liquidity risk, which is defined as the risk that the Series is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Series. The Company’s Board of Directors (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Series’ investment manager, to serve as the administrator of the Series’ LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Series’ LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Series’ LRMP includes no less than annual assessments of factors that influence the Series’ liquidity risk; no less than monthly classifications of the Series’ investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Series’ assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Series does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 2-5, 2021, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Series’ LRMP, including any material changes to the LRMP for the period from January 1, 2020 through December 31, 2020 (“Reporting Period”). The LRMP Report concluded that the Series’ LRMP was reasonably designed to assess and manage the Series’ liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Series’ investment strategies continue to be appropriate given the Series’ status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Series, including liquidity risks presented by the Series’ investment portfolio, is found in the Series’ Prospectus and Statement of Additional Information.
PGIM Emerging Markets Debt Local Currency Fund | 71 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
SUBADVISERS | PGIM Fixed Income
| 655 Broad Street Newark, NJ 07102 | ||
PGIM Limited | Grand Buildings, 1-3 Strand Trafalgar Square London, WC2N 5HR United Kingdom | |||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
| ||||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
| ||||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
| ||||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
|
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Emerging Markets Debt Local Currency Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM EMERGING MARKETS DEBT LOCAL CURRENCY FUND
SHARE CLASS | A | C | Z | R6 | ||||
NASDAQ | EMDAX | EMDCX | EMDZX | EMDQX | ||||
CUSIP | 743969750 | 743969743 | 743969727 | 743969735 |
MF212E2
PGIM JENNISON EMERGING MARKETS EQUITY OPPORTUNITIES FUND
SEMIANNUAL REPORT
APRIL 30, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
3 | ||||
4 | ||||
6 | ||||
9 |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2021 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2021 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM Jennison Emerging Markets Equity Opportunities Fund informative and useful. The report covers performance for the six-month period ended April 30, 2021.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for
risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Jennison Emerging Markets Equity Opportunities Fund
June 15, 2021
PGIM Jennison Emerging Markets Equity Opportunities Fund | 3 |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
(without sales charges) | Average Annual Total Returns as of 4/30/21 (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class A | 28.14 | 78.66 | 20.12 | 12.16 (9/16/14) | ||||
Class C | 27.68 | 86.63 | 20.58 | 12.28 (9/16/14) | ||||
Class Z | 28.28 | 89.46 | 21.80 | 13.40 (9/16/14) | ||||
Class R6 | 28.28 | 89.46 | 21.80 | 13.41 (9/16/14) | ||||
MSCI Emerging Markets Index | ||||||||
22.95 | 48.71 | 12.50 | 6.95 |
*Not annualized
Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the Fund’s inception date.
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% (0.25% currently) | 1.00% | None | None |
4 | Visit our website at pgim.com/investments |
Benchmark Definitions
MSCI Emerging Markets Index—The MSCI Emerging Markets Index is an unmanaged free float-adjusted market capitalization-weighted index that is designed to measure equity market performance of emerging markets. The MSCI Emerging Markets Index consists of the following 24 emerging market country indexes: Brazil, Chile, China, Colombia, the Czech Republic, Egypt, Greece, Hungary, India, Indonesia, Korea, Malaysia, Mexico, Pakistan, Peru, the Philippines, Poland, Qatar, Russia, South Africa, Taiwan, Thailand, Turkey, and the United Arab Emirates.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
Presentation of Fund Holdings as of 4/30/21
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
Sea Ltd., ADR | Entertainment | Taiwan | 8.0% | |||
MercadoLibre, Inc. | Internet & Direct Marketing Retail | Argentina | 5.7% | |||
Bilibili, Inc., ADR | Entertainment | China | 4.7% | |||
Contemporary Amperex Technology Co. Ltd. (Class A Stock) | Electrical Equipment | China | 4.0% | |||
Samsung SDI Co. Ltd. | Electronic Equipment, Instruments & Components | South Korea | 3.7% | |||
Wuxi Biologics Cayman, Inc., 144A | Life Sciences Tools & Services | China | 3.6% | |||
HDFC Bank Ltd., ADR | Banks | India | 3.5% | |||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | Semiconductors & Semiconductor Equipment | Taiwan | 3.2% | |||
Ashok Leyland Ltd. | Machinery | India | 3.1% | |||
Meituan (Class B Stock), 144A | Internet & Direct Marketing Retail | China | 3.0% |
Holdings reflect only long-term investments and are subject to change.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 5 |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2021. The example is for illustrative purposes only; you should consult the Fund’s Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period
6 | Visit our website at pgim.com/investments |
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison Emerging Markets Equity Opportunities Fund | Beginning Account Value November 1, 2020 | Ending Account | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,281.40 | 1.42 | % | $ | 8.03 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.75 | 1.42 | % | $ | 7.10 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,276.80 | 2.17 | % | $ | 12.25 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,014.03 | 2.17 | % | $ | 10.84 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,282.80 | 1.16 | % | $ | 6.57 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.04 | 1.16 | % | $ | 5.81 | ||||||||||
Class R6 | Actual | $ | 1,000.00 | $ | 1,282.80 | 1.14 | % | $ | 6.45 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.14 | 1.14 | % | $ | 5.71 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2021, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 7 |
Schedule of Investments (unaudited)
as of April 30, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 96.9% | ||||||||
COMMON STOCKS | ||||||||
Argentina 5.7% | ||||||||
MercadoLibre, Inc.* | 15,585 | $ | 24,483,723 | |||||
Brazil 1.6% | ||||||||
Magazine Luiza SA | 1,882,020 | 6,946,641 | ||||||
China 39.0% | ||||||||
Agora, Inc., ADR*(a) | 71,778 | 3,489,129 | ||||||
Aier Eye Hospital Group Co. Ltd. (Class A Stock) | 580,242 | 6,665,363 | ||||||
BeiGene Ltd., ADR* | 13,867 | 4,763,869 | ||||||
Bilibili, Inc., ADR*(a) | 185,042 | 20,513,756 | ||||||
Burning Rock Biotech Ltd., ADR* | 139,263 | 4,247,522 | ||||||
Contemporary Amperex Technology Co. Ltd. (Class A Stock) | 285,921 | 17,115,482 | ||||||
Genetron Holdings Ltd., ADR* | 262,423 | 5,552,871 | ||||||
Hygeia Healthcare Holdings Co. Ltd., 144A* | 641,532 | 5,058,795 | ||||||
Innovent Biologics, Inc., 144A* | 744,514 | 8,085,434 | ||||||
Kuaishou Technology, 144A* | 106,021 | 3,574,192 | ||||||
Li Ning Co. Ltd. | 1,572,486 | 12,853,545 | ||||||
Meituan (Class B Stock), 144A* | 338,021 | 12,944,088 | ||||||
Pharmaron Beijing Co. Ltd. (Class H Stock), 144A | 416,904 | 8,676,058 | ||||||
Silergy Corp. | 103,000 | 10,656,461 | ||||||
Tencent Holdings Ltd. | 127,522 | 10,248,369 | ||||||
Wuliangye Yibin Co. Ltd. (Class A Stock) | 249,451 | 10,939,916 | ||||||
Wuxi Biologics Cayman, Inc., 144A* | 1,114,062 | 15,661,956 | ||||||
Zai Lab Ltd., ADR* | 45,403 | 7,546,433 | ||||||
|
| |||||||
168,593,239 | ||||||||
India 18.9% | ||||||||
Ashok Leyland Ltd.* | 8,710,847 | 13,281,351 | ||||||
Asian Paints Ltd. | 227,949 | 7,810,678 | ||||||
Divi’s Laboratories Ltd.* | 137,124 | 7,539,624 | ||||||
HDFC Bank Ltd., ADR* | 217,123 | 15,259,405 | ||||||
Hindustan Unilever Ltd. | 241,988 | 7,693,504 | ||||||
Larsen & Toubro Ltd. | 331,695 | 6,003,889 | ||||||
MakeMyTrip Ltd.* | 386,132 | 10,587,739 | ||||||
Shriram Transport Finance Co. Ltd. | 296,634 | 5,392,069 | ||||||
Titan Co. Ltd. | 399,567 | 8,043,912 | ||||||
|
| |||||||
81,612,171 | ||||||||
Macau 2.5% | ||||||||
Galaxy Entertainment Group Ltd.* | 1,249,581 | 10,986,964 |
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
South Korea 8.7% | ||||||||
Kakao Corp. | 91,026 | $ | 9,273,755 | |||||
NAVER Corp. | 37,743 | 12,186,393 | ||||||
Samsung SDI Co. Ltd. | 27,340 | 16,021,964 | ||||||
|
| |||||||
37,482,112 | ||||||||
Taiwan 13.5% | ||||||||
MediaTek, Inc. | 235,000 | 9,973,470 | ||||||
Sea Ltd., ADR* | 136,619 | 34,501,762 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 117,146 | 13,675,624 | ||||||
|
| |||||||
58,150,856 | ||||||||
Thailand 4.7% | ||||||||
Airports of Thailand PCL | 4,862,286 | 9,670,238 | ||||||
Minor International PCL* | 11,105,645 | 10,701,716 | ||||||
|
| |||||||
20,371,954 | ||||||||
United States 2.3% | ||||||||
Globant SA* | 43,766 | 10,030,292 | ||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 418,657,952 | |||||||
|
| |||||||
SHORT-TERM INVESTMENTS 6.8% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
PGIM Core Ultra Short Bond Fund(wa) | 18,417,073 | 18,417,073 | ||||||
PGIM Institutional Money Market Fund | 10,968,229 | 10,962,746 | ||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 29,379,819 | |||||||
|
| |||||||
TOTAL INVESTMENTS 103.7% | 448,037,771 | |||||||
Liabilities in excess of other assets (3.7)% | (16,128,358 | ) | ||||||
|
| |||||||
NET ASSETS 100.0% | $ | 431,909,413 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
ADR—American Depositary Receipt
See Notes to Financial Statements.
10 |
LIBOR—London Interbank Offered Rate
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $10,378,831; cash collateral of $10,961,581 (included in liabilities) was received with which the Series purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Series may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Common Stocks | ||||||||||||
Argentina | $ | 24,483,723 | $ | — | $— | |||||||
Brazil | 6,946,641 | — | — | |||||||||
China | 46,113,580 | 122,479,659 | — | |||||||||
India | 25,847,144 | 55,765,027 | — | |||||||||
Macau | — | 10,986,964 | — | |||||||||
South Korea | — | 37,482,112 | — | |||||||||
Taiwan | 48,177,386 | 9,973,470 | — | |||||||||
Thailand | — | 20,371,954 | — | |||||||||
United States | 10,030,292 | — | — | |||||||||
Affiliated Mutual Funds | 29,379,819 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 190,978,585 | $ | 257,059,186 | $— | |||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2021 were as follows:
Entertainment | 12.7 | % | ||
Internet & Direct Marketing Retail | 8.7 | |||
Interactive Media & Services | 8.2 |
Semiconductors & Semiconductor Equipment | 8.0 | % | ||
Hotels, Restaurants & Leisure | 7.5 | |||
Life Sciences Tools & Services | 7.3 |
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Industry Classification (continued):
Biotechnology | 7.0 | % | ||
Affiliated Mutual Funds (2.5% represents investments purchased with collateral from securities on loan) | 6.8 | |||
Textiles, Apparel & Luxury Goods | 4.9 | |||
Electrical Equipment | 4.0 | |||
Electronic Equipment, Instruments & Components | 3.7 | |||
Banks | 3.5 | |||
Machinery | 3.1 | |||
Health Care Providers & Services | 2.7 | |||
Beverages | 2.5 | |||
IT Services | 2.3 | |||
Transportation Infrastructure | 2.2 |
Chemicals | 1.8 | % | ||
Household Products | 1.8 | |||
Multiline Retail | 1.6 | |||
Construction & Engineering | 1.4 | |||
Consumer Finance | 1.2 | |||
Software | 0.8 | |||
|
| |||
103.7 | ||||
Liabilities in excess of other assets | (3.7 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Series entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||
Securities on Loan | $10,378,831 | $(10,378,831) | $— | |||
|
|
|
(1) | Collateral amount disclosed by the Series is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
12 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Assets | ||||
Investments at value, including securities on loan of $10,378,831: | ||||
Unaffiliated investments (cost $385,341,537) | $ | 418,657,952 | ||
Affiliated investments (cost $29,379,819) | 29,379,819 | |||
Receivable for Series shares sold | 10,219,070 | |||
Receivable for investments sold | 3,401,118 | |||
Dividends receivable | 8,175 | |||
Prepaid expenses and other assets | 67,545 | |||
|
| |||
Total Assets | 461,733,679 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 13,233,164 | |||
Payable to broker for collateral for securities on loan | 10,961,581 | |||
Payable for Series shares purchased | 5,066,819 | |||
Management fee payable | 288,353 | |||
Foreign capital gains tax liability accrued | 229,892 | |||
Accrued expenses and other liabilities | 31,099 | |||
Distribution fee payable | 8,043 | |||
Affiliated transfer agent fee payable | 4,936 | |||
Directors’ fees payable | 379 | |||
|
| |||
Total Liabilities | 29,824,266 | |||
|
| |||
Net Assets | $ | 431,909,413 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 188,093 | ||
Paid-in capital in excess of par | 399,939,403 | |||
Total distributable earnings (loss) | 31,781,917 | |||
|
| |||
Net assets, April 30, 2021 | $ | 431,909,413 | ||
|
|
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 13 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Class A | ||||
Net asset value and redemption price per share, | $ | 22.63 | ||
Maximum sales charge (5.50% of offering price) | 1.32 | |||
|
| |||
Maximum offering price to public | $ | 23.95 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share, | $ | 21.54 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share, | $ | 23.00 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, | $ | 23.00 | ||
|
|
See Notes to Financial Statements.
14 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $17,480 foreign withholding tax) | $ 67,426 | |||
Income from securities lending, net (including affiliated income of $2,891) | 12,595 | |||
Affiliated dividend income | 8,373 | |||
|
| |||
Total income | 88,394 | |||
|
| |||
Expenses | ||||
Management fee | 1,071,972 | |||
Distribution fee(a) | 37,369 | |||
Custodian and accounting fees | 52,592 | |||
Registration fees(a) | 43,610 | |||
Transfer agent’s fees and expenses (including affiliated expense of $9,979)(a) | 37,498 | |||
Audit fee | 15,144 | |||
Legal fees and expenses | 8,262 | |||
Directors’ fees | 5,675 | |||
SEC registration fees | 3,455 | |||
Shareholders’ reports | 3,092 | |||
Miscellaneous | 18,086 | |||
Total expenses | 1,296,755 | |||
Less: Fee waiver and/or expense reimbursement(a) | (77,223 | ) | ||
Distribution fee waiver(a) | (3,774 | ) | ||
|
| |||
Net expenses | 1,215,758 | |||
Net investment income (loss) | (1,127,364 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(1,030)) (net of foreign capital gains taxes $(90)) | 1,307,005 | |||
Foreign currency transactions | (60,834 | ) | ||
|
| |||
1,246,171 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $(602)) (net of change in foreign capital gains taxes $(225,865)) | 14,848,895 | |||
Foreign currencies | (1,440 | ) | ||
|
| |||
14,847,455 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 16,093,626 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $14,966,262 | |||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 22,644 | 14,725 | — | — | ||||||||||||
Registration fees | 8,520 | 8,334 | 16,573 | 10,183 | ||||||||||||
Transfer agent’s fees and expenses | 7,527 | 795 | 29,067 | 109 | ||||||||||||
Fee waiver and/or expense reimbursement | (15,592 | ) | (9,010 | ) | (38,065 | ) | (14,556 | ) | ||||||||
Distribution fee waiver | (3,774 | ) | — | — | — |
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 15 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ (1,127,364 | ) | $ (263,560 | ) | ||||||
Net realized gain (loss) on investment and foreign currency transactions | 1,246,171 | 700,191 | ||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 14,847,455 | 12,802,353 | ||||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 14,966,262 | 13,238,984 | ||||||||
|
|
|
| |||||||
Series share transactions (Net of share conversions) | ||||||||||
Net proceeds from shares sold | 430,758,251 | 33,021,175 | ||||||||
Cost of shares purchased | (74,855,207 | ) | (4,808,707 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Series share transactions | 355,903,044 | 28,212,468 | ||||||||
|
|
|
| |||||||
Total increase (decrease) | 370,869,306 | 41,451,452 | ||||||||
Net Assets: | ||||||||||
Beginning of period | 61,040,107 | 19,588,655 | ||||||||
|
|
|
| |||||||
End of period | $431,909,413 | $61,040,107 | ||||||||
|
|
|
|
See Notes to Financial Statements.
16 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company and currently consists of seven series: PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Jennison Global Infrastructure Fund, PGIM Jennison Global Opportunities Fund, PGIM Jennison International Opportunities Fund, PGIM QMA International Equity Fund and PGIM Emerging Markets Debt Hard Currency Fund, each of which are diversified funds for purposes of the 1940 Act, and PGIM Emerging Markets Debt Local Currency Fund, which is a non-diversified fund for purposes of the 1940 Act , and therefore, may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. These financial statements relate only to the PGIM Jennison Emerging Markets Equity Opportunities Fund (the “Series”).
The investment objective of the Series is to seek long-term growth of capital.
2. Accounting Policies
The Series follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Series in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Series’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The Fund’s Board of Directors (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 17 |
Notes to Financial Statements (unaudited) (continued)
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Series’ foreign investments may change on days when investors cannot purchase or redeem Series shares.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Series is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be
18 |
classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value 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 the 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 Manager 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The Fund, on behalf of the Series, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Series. A master netting arrangement between the Series and the counterparty
PGIM Jennison Emerging Markets Equity Opportunities Fund | 19 |
Notes to Financial Statements (unaudited) (continued)
permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Series lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral.
The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Series becomes aware of such dividends. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class
20 |
specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
The Series is subject to foreign income taxes imposed by certain countries in which it invests. Additionally, capital gains realized upon disposition of securities issued in or by certain foreign countries are subject to capital gains tax imposed by those countries. All taxes are computed in accordance with the applicable foreign tax law, and, to the extent permitted, capital losses are used to offset capital gains. Taxes attributable to income are accrued by the Series as a reduction of income. Current and deferred tax expense attributable to capital gains is reflected as a component of realized or change in unrealized gain/loss on securities in the accompanying financial statements. To the extent that the Series has country specific capital loss carryforwards, such carryforwards are applied against net unrealized gains when determining the deferred tax liability. Any deferred tax liability incurred by the Series is included in either Other liabilities or Deferred tax liability on the accompanying Statement of Assets and Liabilities.
Dividends and Distributions: The Series expects to pay dividends from net investment income and distributions from net realized capital and currency gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The Fund, on behalf of the Series, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 21 |
Notes to Financial Statements (unaudited) (continued)
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison” or the “subadviser”). The Manager pays for the services of Jennison.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 1.05% of the Series’ average daily net assets up to $5 billion and 1.025% of the Series’ average daily net assets in excess of $5 billion. The effective management fee rate before any waivers and/or expense reimbursements was 1.05% for the reporting period ended April 30, 2021.
Effective April 7, 2021, the Manager has contractually agreed, through February 28, 2023, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.30% of average daily net assets for Class A shares, 2.05% of average daily net assets for Class C shares, 1.05% of average daily net assets for Class Z shares and 0.98% of average daily net assets for Class R6 shares. Prior to April 7, 2021, the Manager had contractually agreed, through February 28, 2022, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.45% of average daily net assets for Class A shares, 2.20% of average daily net assets for Class C shares, 1.20% of average daily net assets for Class Z shares and 1.20% of average daily net assets for Class R6 shares. The contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extra ordinary expenses and certain other Series expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
The Fund, on behalf of the Series, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to 0.30% and 1% of the average daily net assets of the Class A and Class C shares, respectively.PIMS has contractually agreed through
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February 28, 2022 to limit such fee to 0.25% of the average daily net assets of the Class A shares. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z and Class R6 shares of the Series.
For the reporting period ended April 30, 2021, PIMS received $221,312 in front-end sales charges resulting from sales of Class A shares. Additionally, for the reporting period ended April 30, 2021, PIMS received $405 in contingent deferred sales charges imposed upon redemptions by certain Class C shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs.
PGIM Investments, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. Through the Series’ investments in the mentioned underlying funds, PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2021, no 17a-7 transactions were entered into by the Series.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2021, were $408,143,188 and $63,030,051, respectively.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 23 |
Notes to Financial Statements (unaudited) (continued)
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2021, is presented as follows:
Value, | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wa) | ||||||||||||||||||||||||||||||
$5,578,205 | $147,114,419 | $134,275,551 | $ — | $ — | $18,417,073 | 18,417,073 | $ 8,373 | |||||||||||||||||||||||
PGIM Institutional Money Market Fund (1)(b)(wa) | ||||||||||||||||||||||||||||||
4,072,761 | 63,737,145 | 56,845,528 | (602) | (1,030) | 10,962,746 | 10,968,229 | 2,891 | (2) | ||||||||||||||||||||||
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$9,650,966 | $210,851,564 | $191,121,079 | $(602) | $(1,030) | $29,379,819 | $11,264 | ||||||||||||||||||||||||
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(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of April 30, 2021 were as follows:
Tax Basis | $415,041,217 | |||||||
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| |||||||
Gross Unrealized Appreciation | 41,898,353 | |||||||
Gross Unrealized Depreciation | (8,901,799 | ) | ||||||
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| |||||||
Net Unrealized Appreciation | $ | 32,996,554 | ||||||
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The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Series had a capital loss carryforward as of April 30, 2021 of approximately $1,093,000 which can be carried forward for an unlimited period. The Fund utilized approximately $826,000 of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended October 31, 2020. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Series elected to treat late year ordinary income losses of approximately $240,000 as having been incurred in the following fiscal year (October 31, 2021).
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The Manager has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Series’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2020 are subject to such review.
7. Capital and Ownership
The Series offers Class A, Class C, Class Z and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock, below.
The Fund is authorized to issue 5.075 billion shares of common stock, $0.01 par value per share, 865 million of which are designated as shares of the Series. The shares are further classified and designated as follows:
Class A | 25,000,000 | |||
Class C | 65,000,000 | |||
Class Z | 300,000,000 | |||
Class T | 225,000,000 | |||
Class R6 | 250,000,000 |
The Series currently does not have any Class T shares outstanding.
As of April 30, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Series as follows:
Number of Shares | Percentage of Outstanding Shares | |||
Class A | 17,167 | 1.5% | ||
Class R6 | 20,907 | 0.5% |
PGIM Jennison Emerging Markets Equity Opportunities Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
At the reporting period end, the number of shareholders holding greater than 5% of the Series are as follows:
Affiliated | Unaffiliated | |||||
Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | |||
— | —% | 4 | 88.8% |
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 1,135,382 | $ | 25,289,112 | |||||
Shares purchased | (338,809 | ) | (7,369,883 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 796,573 | 17,919,229 | ||||||
Shares issued upon conversion from other share class(es) | 4,017 | 102,994 | ||||||
Shares purchased upon conversion into other share class(es) | (7,435 | ) | (155,281 | ) | ||||
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Net increase (decrease) in shares outstanding | 793,155 | $ | 17,866,942 | |||||
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Year ended October 31, 2020: | ||||||||
Shares sold | 103,935 | $ | 1,518,736 | |||||
Shares purchased | (71,824 | ) | (955,318 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 32,111 | 563,418 | ||||||
Shares issued upon conversion from other share class(es) | 3,633 | 54,429 | ||||||
Shares purchased upon conversion into other share class(es) | (902 | ) | (11,761 | ) | ||||
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Net increase (decrease) in shares outstanding | 34,842 | $ | 606,086 | |||||
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Class C | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 127,932 | $ | 2,818,469 | |||||
Shares purchased | (11,694 | ) | (247,133 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 116,238 | 2,571,336 | ||||||
Shares purchased upon conversion into other share class(es) | (4,656 | ) | (111,712 | ) | ||||
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Net increase (decrease) in shares outstanding | 111,582 | $ | 2,459,624 | |||||
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Year ended October 31, 2020: | ||||||||
Shares sold | 13,233 | $ | 188,787 | |||||
Shares purchased | (11,358 | ) | (155,204 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 1,875 | 33,583 | ||||||
Shares purchased upon conversion into other share class(es) | (3,792 | ) | (54,429 | ) | ||||
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Net increase (decrease) in shares outstanding | (1,917 | ) | $ | (20,846 | ) | |||
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Class Z | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 13,034,998 | $ | 302,549,422 | |||||
Shares purchased | (1,867,312 | ) | (42,363,500 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 11,167,686 | 260,185,922 | ||||||
Shares issued upon conversion from other share class(es) | 7,736 | 163,999 | ||||||
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Net increase (decrease) in shares outstanding | 11,175,422 | $ | 260,349,921 | |||||
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Year ended October 31, 2020: | ||||||||
Shares sold | 2,007,443 | $ | 30,937,061 | |||||
Shares purchased | (247,957 | ) | (3,693,491 | ) | ||||
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Net increase (decrease) in shares outstanding before conversion | 1,759,486 | 27,243,570 | ||||||
Shares issued upon conversion from other share class(es) | 890 | 11,761 | ||||||
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Net increase (decrease) in shares outstanding | 1,760,376 | $ | 27,255,331 | |||||
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Class R6 | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 4,410,949 | $ | 100,101,248 | |||||
Shares purchased | (1,097,007 | ) | (24,874,691 | ) | ||||
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Net increase (decrease) in shares outstanding | 3,313,942 | $ | 75,226,557 | |||||
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Year ended October 31, 2020: | ||||||||
Shares sold | 22,744 | $ | 376,591 | |||||
Shares purchased | (328 | ) | (4,694 | ) | ||||
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Net increase (decrease) in shares outstanding | 22,416 | $ | 371,897 | |||||
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8. Borrowings
The Fund, on behalf of the Series, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/2/2020 – 9/30/2021 | |
Total Commitment | $1,200,000,000 | |
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | |
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager
PGIM Jennison Emerging Markets Equity Opportunities Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Series did not utilize the SCA during the reporting period ended April 30, 2021.
9. Risks of Investing in the Series
The Series’ risks include, but are not limited to, some or all of the risks discussed below. For further information on the Series’ risks, please refer to the Series’ Prospectus and Statement of Additional Information.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-US investors, or that prevent non-US investors from withdrawing their money at will. Countries with emerging markets can be found in regions such as Asia, Latin America, Eastern Europe and Africa.
The Series may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Series invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: The Series’ investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. The securities of such issuers may trade in markets that are less liquid, less regulated and more volatile than US markets. The value of the Series’ investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial instability. Lack of information may also affect the value of these securities.
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Geographic Concentration Risk: The Series’ performance may be closely tied to the market, economic, political, regulatory or other conditions in the countries or regions in which the Series invests. This can result in more pronounced risks based upon conditions that impact one or more countries or regions more or less than other countries or regions.
Investments in China Risk: Investments in China subject a Series to risks specific to China and may make it more volatile than other funds. Over the last few decades, the Chinese government has undertaken reform of economic and market practices and has expanded the sphere of private ownership of property in China. However, Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries, including military conflicts in response to such events, may also disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation.
China has experienced security concerns, such as terrorism and strained international relations. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and the Series’ investments. Export growth continues to be a major driver of China’s rapid economic growth. Reduction in spending on Chinese products and services, institution of additional tariffs or other trade barriers, including as a result of heightened trade tensions between China and the U.S., or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. Chinese companies, including Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulatory requirements, accounting standards or auditor oversight as companies in more developed countries, and as a result, information about the Chinese securities in which the Series invests may be less reliable or complete. There may be significant obstacles to obtaining information necessary for investigations into or litigation against Chinese companies and shareholders may have limited legal remedies.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Series’ shares. There is no requirement that these entities maintain their investment in the Series. There is a risk that such large shareholders or that the Series’ shareholders generally may redeem all or a substantial portion of their investments in the Series in a short period of time, which could have a significant negative impact on the Series’ NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Series’ ability to implement its investment strategy. The Series’ ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Series may invest a larger portion of its assets in cash or cash equivalents.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern
PGIM Jennison Emerging Markets Equity Opportunities Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Series’ investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Series invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Series’ securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Series fall, the value of your investment in the Series will decline.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Series.
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Financial Highlights (unaudited)
Class A Shares
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Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.66 | $12.16 | $9.58 | $11.19 | $9.34 | $8.81 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.15 | ) | (0.14 | ) | (0.04 | ) | (0.04 | ) | (0.04 | ) | (0.04 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 5.12 | 5.64 | 2.62 | (1.57 | ) | 1.89 | 0.57 | |||||||||||||||||||||
Total from investment operations | 4.97 | 5.50 | 2.58 | (1.61 | ) | 1.85 | 0.53 | |||||||||||||||||||||
Net asset value, end of period | $22.63 | $17.66 | $12.16 | $9.58 | $11.19 | $9.34 | ||||||||||||||||||||||
Total Return(b): | 28.14 | % | 45.23 | % | 26.93 | % | (14.39 | )% | 19.81 | % | 6.02 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $25,822 | $6,144 | $3,806 | $2,316 | $2,204 | $869 | ||||||||||||||||||||||
Average net assets (000) | $15,221 | $4,507 | $3,074 | $2,956 | $1,363 | $528 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.42 | %(e) | 1.45 | % | 1.45 | % | 1.45 | % | 1.45 | % | 1.45 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.68 | %(e) | 2.61 | % | 3.35 | % | 3.27 | % | 3.28 | % | 3.87 | % | ||||||||||||||||
Net investment income (loss) | (1.34 | )%(e) | (0.99 | )% | (0.37 | )% | (0.35 | )% | (0.35 | )% | (0.49 | )% | ||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 58 | % | 33 | % | 23 | % | 45 | % | 44 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 31 |
Financial Highlights (unaudited) (continued)
Class C Shares
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Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $16.88 | $11.71 | $9.29 | $10.93 | $9.20 | $8.74 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.22 | ) | (0.23 | ) | (0.11 | ) | (0.13 | ) | (0.11 | ) | (0.11 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 4.88 | 5.40 | 2.53 | (1.51 | ) | 1.84 | 0.57 | |||||||||||||||||||||
Total from investment operations | 4.66 | 5.17 | 2.42 | (1.64 | ) | 1.73 | 0.46 | |||||||||||||||||||||
Net asset value, end of period | $21.54 | $16.88 | $11.71 | $9.29 | $10.93 | $9.20 | ||||||||||||||||||||||
Total Return(b): | 27.68 | % | 44.06 | % | 26.05 | % | (15.00 | )% | 18.80 | % | 5.26 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $4,399 | $1,563 | $1,107 | $1,363 | $1,516 | $734 | ||||||||||||||||||||||
Average net assets (000) | $2,969 | $1,244 | $1,438 | $1,775 | $973 | $672 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 2.17 | %(e) | 2.20 | % | 2.20 | % | 2.20 | % | 2.20 | % | 2.20 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.78 | %(e) | 4.15 | % | 4.23 | % | 4.20 | % | 4.00 | % | 4.62 | % | ||||||||||||||||
Net investment income (loss) | (2.09 | )%(e) | (1.73 | )% | (1.05 | )% | (1.14 | )% | (1.17 | )% | (1.29 | )% | ||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 58 | % | 33 | % | 23 | % | 45 | % | 44 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
32 |
Class Z Shares
| ||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.93 | $12.31 | $9.67 | $11.27 | $9.39 | $8.82 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.12 | ) | (0.13 | ) | (0.01 | ) | (0.01 | ) | (0.02 | ) | (0.03 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 5.19 | 5.75 | 2.65 | (1.59 | ) | 1.90 | 0.60 | |||||||||||||||||||||
Total from investment operations | 5.07 | 5.62 | 2.64 | (1.60 | ) | 1.88 | 0.57 | |||||||||||||||||||||
Net asset value, end of period | $23.00 | $17.93 | $12.31 | $9.67 | $11.27 | $9.39 | ||||||||||||||||||||||
Total Return(b): | 28.28 | % | 45.65 | % | 27.30 | % | (14.20 | )% | 20.02 | % | 6.46 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $301,935 | $34,993 | $2,357 | $1,215 | $980 | $183 | ||||||||||||||||||||||
Average net assets (000) | $146,938 | $11,195 | $1,866 | $1,443 | $490 | $102 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.16 | %(e) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.21 | %(e) | 1.93 | % | 3.17 | % | 3.56 | % | 2.94 | % | 3.55 | % | ||||||||||||||||
Net investment income (loss) | (1.07 | )%(e) | (0.83 | )% | (0.08 | )% | (0.13 | )% | (0.19 | )% | (0.31 | )% | ||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 58 | % | 33 | % | 23 | % | 45 | % | 44 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 33 |
Financial Highlights (unaudited) (continued)
Class R6 Shares
| ||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $17.93 | $12.31 | $9.67 | $11.27 | $9.39 | $8.83 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.12 | ) | (0.10 | ) | (0.01 | ) | (0.02 | ) | (0.01 | ) | (0.03 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 5.19 | 5.72 | 2.65 | (1.58 | ) | 1.89 | 0.59 | |||||||||||||||||||||
Total from investment operations | 5.07 | 5.62 | 2.64 | (1.60 | ) | 1.88 | 0.56 | |||||||||||||||||||||
Net asset value, end of period | $23.00 | $17.93 | $12.31 | $9.67 | $11.27 | $9.39 | ||||||||||||||||||||||
Total Return(b): | 28.28 | % | 45.65 | % | 27.30 | % | (14.20 | )% | 20.02 | % | 6.34 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $99,753 | $18,340 | $12,319 | $9,675 | $11,271 | $9,404 | ||||||||||||||||||||||
Average net assets (000) | $40,749 | $14,144 | $11,249 | $11,852 | $9,893 | $8,722 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.14 | %(e) | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | 1.20 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.21 | %(e) | 1.80 | % | 2.41 | % | 2.32 | % | 2.78 | % | 3.13 | % | ||||||||||||||||
Net investment income (loss) | (1.05 | )%(e) | (0.74 | )% | (0.11 | )% | (0.17 | )% | (0.13 | )% | (0.29 | )% | ||||||||||||||||
Portfolio turnover rate(f) | 31 | % | 58 | % | 33 | % | 23 | % | 45 | % | 44 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
34 |
Series Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Series has adopted and implemented a liquidity risk management program (the “LRMP”). The Series’ LRMP seeks to assess and manage the Series’ liquidity risk, which is defined as the risk that the Series is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Series. The Company’s Board of Directors (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Series’ investment manager, to serve as the administrator of the Series’ LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Series’ LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Series’ LRMP includes no less than annual assessments of factors that influence the Series’ liquidity risk; no less than monthly classifications of the Series’ investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Series’ assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Series does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 2-5, 2021, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Series’ LRMP, including any material changes to the LRMP for the period from January 1, 2020 through December 31, 2020 (“Reporting Period”). The LRMP Report concluded that the Series’ LRMP was reasonably designed to assess and manage the Series’ liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Series’ investment strategies continue to be appropriate given the Series’ status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Series, including liquidity risks presented by the Series’ investment portfolio, is found in the Series’ Prospectus and Statement of Additional Information.
PGIM Jennison Emerging Markets Equity Opportunities Fund | 35 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM JENNISON EMERGING MARKETS EQUITY OPPORTUNITIES FUND
SHARE CLASS | A | C | Z | R6 | ||||
NASDAQ | PDEAX | PDECX | PDEZX | PDEQX | ||||
CUSIP | 743969644 | 743969636 | 743969610 | 743969628 |
MF225E2
PGIM JENNISON GLOBAL OPPORTUNITIES FUND
SEMIANNUAL REPORT
APRIL 30, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
3 | ||||
4 | ||||
7 | ||||
9 |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2021 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2021 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM Jennison Global Opportunities Fund informative and useful. The report covers performance for the six-month period ended April 30, 2021.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Jennison Global Opportunities Fund
June 15, 2021
PGIM Jennison Global Opportunities Fund | 3 |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
(without sales charges) | Average Annual Total Returns as of 4/30/21 (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class A | 20.76 | 60.65 | 25.15 | 17.60 (3/14/12) | ||||
Class C | 20.27 | 67.53 | 25.55 | 17.40 (3/14/12) | ||||
Class Z | 20.86 | 70.22 | 26.81 | 18.59 (3/14/12) | ||||
Class R2 | 20.67 | 69.60 | N/A | 42.45 (12/27/18) | ||||
Class R4 | 20.79 | 70.07 | N/A | 42.84 (12/27/18) | ||||
Class R6 | 20.89 | 70.37 | 26.95 | 21.07 (12/22/14) | ||||
MSCI All Country World Net Dividends Index | ||||||||
28.29 | 45.75 | 13.85 | 9.17 |
Average Annual Total Returns as of 4/30/21 Since Inception (%) | ||||||
Class A, C, Z (3/14/12) | Class R2, R4 (12/27/18) | Class R6 (12/22/14) | ||||
MSCI All Country World Net Dividends Index | ||||||
10.70 | 22.52 | 10.66 |
*Not annualized
Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to each class’ inception date.
4 | Visit our website at pgim.com/investments |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R2 | Class R4 | Class R6 | |||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | None | ||||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | None | None | ||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% (0.25% currently) | 1.00% | None | 0.25% | None | None | ||||||
Shareholder service fee | None | None | None | 0.10%* | 0.10%* | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
MSCI All Country World Net Dividends Index—The Morgan Stanley Capital International All Country World Net Dividends Index (MSCI ACWI ND Index) is an unmanaged free float-adjusted market capitalization-weighted index that is designed to measure the equity market performance of developed and emerging markets. The MSCI ACWI ND Index consists of 47 country indexes comprising 23 developed and 24 emerging market country indexes. The ND version of the MSCI ACWI Index reflects the impact of the maximum withholding taxes on reinvested dividends. The MSCI ACWI ND Index is unmanaged and the total return includes the reinvestment of all dividends.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Jennison Global Opportunities Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/21
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
Adyen NV, 144A | IT Services | Netherlands | 5.3% | |||
MercadoLibre, Inc. | Internet & Direct Marketing Retail | Argentina | 5.2% | |||
Tesla, Inc. | Automobiles | United States | 5.2% | |||
Amazon.com, Inc. | Internet & Direct Marketing Retail | United States | 5.0% | |||
LVMH Moet Hennessy Louis Vuitton SE | Textiles, Apparel & Luxury Goods | France | 4.7% | |||
Match Group, Inc. | Interactive Media & Services | United States | 4.6% | |||
Apple, Inc. | Technology Hardware, Storage & Peripherals | United States | 4.3% | |||
Wuxi Biologics Cayman, Inc., 144A | Life Sciences Tools & Services | China | 4.1% | |||
Shopify, Inc. (Class A Stock) | IT Services | Canada | 3.5% | |||
Ferrari NV | Automobiles | Italy | 3.2% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2021. The example is for illustrative purposes only; you should consult the Fund’s Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period
PGIM Jennison Global Opportunities Fund | 7 |
Fees and Expenses (continued)
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison Global Opportunities Fund | Beginning Account Value November 1, 2020 | Ending Account Value April 30, 2021 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,207.60 | 1.08 | % | $ | 5.91 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.44 | 1.08 | % | $ | 5.41 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,202.70 | 1.90 | % | $ | 10.38 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.37 | 1.90 | % | $ | 9.49 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,208.60 | 0.91 | % | $ | 4.98 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.28 | 0.91 | % | $ | 4.56 | ||||||||||
Class R2 | Actual | $ | 1,000.00 | $ | 1,206.70 | 1.12 | % | $ | 6.13 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.24 | 1.12 | % | $ | 5.61 | ||||||||||
Class R4 | Actual | $ | 1,000.00 | $ | 1,207.90 | 1.03 | % | $ | 5.64 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.69 | 1.03 | % | $ | 5.16 | ||||||||||
Class R6 | Actual | $ | 1,000.00 | $ | 1,208.90 | 0.83 | % | $ | 4.55 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.68 | 0.83 | % | $ | 4.16 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2021, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2021
Description | Shares | Value | ||||||||
LONG-TERM INVESTMENTS 99.1% | ||||||||||
COMMON STOCKS | ||||||||||
Argentina 5.2% | ||||||||||
MercadoLibre, Inc.* | 272,166 | $ | 427,567,343 | |||||||
Canada 3.5% | ||||||||||
Shopify, Inc. (Class A Stock)* | 243,873 | 288,382,261 | ||||||||
China 8.0% | ||||||||||
Meituan (Class B Stock), 144A* | 4,073,525 | 155,990,506 | ||||||||
Tencent Holdings Ltd. | 2,027,403 | 162,933,255 | ||||||||
Wuxi Biologics Cayman, Inc., 144A* | 24,125,641 | 339,168,497 | ||||||||
|
| |||||||||
658,092,258 | ||||||||||
France 14.6% | ||||||||||
Hermes International | 166,521 | 208,718,687 | ||||||||
Kering SA | 243,290 | 195,267,321 | ||||||||
L’Oreal SA | 462,666 | 189,481,698 | ||||||||
LVMH Moet Hennessy Louis Vuitton SE | 516,304 | 388,103,478 | ||||||||
Pernod Ricard SA | 488,318 | 100,226,745 | ||||||||
Remy Cointreau SA | 570,692 | 113,974,093 | ||||||||
|
| |||||||||
1,195,772,022 | ||||||||||
Israel 1.4% | ||||||||||
Wix.com Ltd.* | 352,686 | 112,111,826 | ||||||||
Italy 3.2% | ||||||||||
Ferrari NV | 1,231,809 | 263,223,357 | ||||||||
Netherlands 7.4% | ||||||||||
Adyen NV, 144A* | 176,736 | 433,428,075 | ||||||||
ASML Holding NV | 262,026 | 170,122,696 | ||||||||
|
| |||||||||
603,550,771 | ||||||||||
Switzerland 1.7% | ||||||||||
Givaudan SA | 32,410 | 135,859,817 | ||||||||
Taiwan 2.6% | ||||||||||
Sea Ltd., ADR*(a) | 832,570 | 210,257,228 | ||||||||
United States 51.5% | ||||||||||
Airbnb, Inc. (Class A Stock)*(a) | 1,279,595 | 220,998,853 |
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund 9
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||||
COMMON STOCKS (Continued) | ||||||||||
United States (cont’d.) | ||||||||||
Alphabet, Inc. (Class A Stock)* | 72,704 | $ | 171,108,864 | |||||||
Amazon.com, Inc.* | 119,031 | 412,730,470 | ||||||||
Apple, Inc. | 2,704,642 | 355,552,237 | ||||||||
Atlassian Corp. PLC (Class A Stock)* | 482,984 | 114,737,679 | ||||||||
DocuSign, Inc.* | 863,333 | 192,471,459 | ||||||||
Dynatrace, Inc.* | 4,043,529 | 210,425,249 | ||||||||
HubSpot, Inc.* | 204,243 | 107,523,727 | ||||||||
Match Group, Inc.* | 2,417,711 | 376,268,363 | ||||||||
Netflix, Inc.* | 317,867 | 163,215,169 | ||||||||
NIKE, Inc. (Class B Stock) | 461,787 | 61,242,192 | ||||||||
NVIDIA Corp. | 345,164 | 207,229,562 | ||||||||
Peloton Interactive, Inc. (Class A Stock)* | 565,166 | 55,584,076 | ||||||||
RingCentral, Inc. (Class A Stock)* | 687,373 | 219,237,618 | ||||||||
Snap, Inc. (Class A Stock)* | 3,882,481 | 240,014,976 | ||||||||
Snowflake, Inc. (Class A Stock)*(a) | 282,476 | 65,418,617 | ||||||||
Square, Inc. (Class A Stock)* | 757,204 | 185,378,683 | ||||||||
Tesla, Inc.* | 597,779 | 424,088,334 | ||||||||
Trade Desk, Inc. (The) (Class A Stock)* | 203,829 | 148,654,528 | ||||||||
Twilio, Inc. (Class A Stock)* | 622,635 | 229,005,153 | ||||||||
Zoom Video Communications, Inc. (Class A Stock)* | 188,574 | 60,262,593 | ||||||||
|
| |||||||||
4,221,148,402 | ||||||||||
|
| |||||||||
TOTAL LONG-TERM INVESTMENTS | 8,115,965,285 | |||||||||
|
| |||||||||
SHORT-TERM INVESTMENTS 5.6% | ||||||||||
AFFILIATED MUTUAL FUNDS | ||||||||||
PGIM Core Ultra Short Bond Fund(wa) | 104,732,931 | 104,732,931 | ||||||||
PGIM Institutional Money Market Fund | 354,997,465 | 354,819,966 | ||||||||
|
| |||||||||
TOTAL SHORT-TERM INVESTMENTS | 459,552,897 | |||||||||
|
| |||||||||
TOTAL INVESTMENTS 104.7% | 8,575,518,182 | |||||||||
Liabilities in excess of other assets (4.7)% | (386,168,258 | ) | ||||||||
|
| |||||||||
NET ASSETS 100.0% | $ | 8,189,349,924 | ||||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
See Notes to Financial Statements.
10
ADR—American Depositary Receipt
LIBOR—London Interbank Offered Rate
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $340,157,477; cash collateral of $354,642,414 (included in liabilities) was received with which the Series purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Series may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Common Stocks | ||||||||||||
Argentina | $ | 427,567,343 | $ | — | $— | |||||||
Canada | 288,382,261 | — | — | |||||||||
China | — | 658,092,258 | — | |||||||||
France | — | 1,195,772,022 | — | |||||||||
Israel | 112,111,826 | — | — | |||||||||
Italy | — | 263,223,357 | — | |||||||||
Netherlands | — | 603,550,771 | — | |||||||||
Switzerland | — | 135,859,817 | — | |||||||||
Taiwan | 210,257,228 | — | — | |||||||||
United States | 4,221,148,402 | — | — | |||||||||
Affiliated Mutual Funds | 459,552,897 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 5,719,019,957 | $ | 2,856,498,225 | $— | |||||||
|
|
|
|
|
|
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund 11
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2021 were as follows:
IT Services | 16.1 | % | ||
Software | 12.9 | |||
Internet & Direct Marketing Retail | 12.1 | |||
Interactive Media & Services | 11.6 | |||
Textiles, Apparel & Luxury Goods | 10.4 | |||
Automobiles | 8.4 | |||
Affiliated Mutual Funds (4.3% represents investments purchased with collateral from securities on loan) | 5.6 | |||
Semiconductors & Semiconductor Equipment | 4.6 | |||
Entertainment | 4.6 | |||
Technology Hardware, Storage & Peripherals | 4.3 |
Life Sciences Tools & Services | 4.1 | % | ||
Hotels, Restaurants & Leisure | 2.7 | |||
Beverages | 2.6 | |||
Personal Products | 2.3 | |||
Chemicals | 1.7 | |||
Leisure Products | 0.7 | |||
|
| |||
104.7 | ||||
Liabilities in excess of other assets | (4.7 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Series entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||
Securities on Loan | $340,157,477 | $(340,157,477) | $— | |||
|
|
|
(1) | Collateral amount disclosed by the Series is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
12
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Assets | ||||
Investments at value, including securities on loan of $340,157,477: | ||||
Unaffiliated investments (cost $5,231,197,101) | $ | 8,115,965,285 | ||
Affiliated investments (cost $459,411,765) | 459,552,897 | |||
Receivable for Series shares sold | 42,461,771 | |||
Tax reclaim receivable | 1,889,517 | |||
Dividends receivable | 1,112,883 | |||
Prepaid expenses | 13,100 | |||
|
| |||
Total Assets | 8,620,995,453 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 354,642,414 | |||
Payable for investments purchased | 51,460,233 | |||
Payable for Series shares purchased | 18,693,592 | |||
Management fee payable | 5,257,882 | |||
Accrued expenses and other liabilities | 1,018,796 | |||
Distribution fee payable | 507,374 | |||
Affiliated transfer agent fee payable | 61,937 | |||
Payable to custodian | 3,301 | |||
|
| |||
Total Liabilities | 431,645,529 | |||
|
| |||
Net Assets | $ | 8,189,349,924 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 1,764,297 | ||
Paid-in capital in excess of par | 4,875,369,788 | |||
Total distributable earnings (loss) | 3,312,215,839 | |||
|
| |||
Net assets, April 30, 2021 | $ | 8,189,349,924 | ||
|
|
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund 13
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Class A | ||||
Net asset value and redemption price per share, | $ | 45.72 | ||
Maximum sales charge (5.50% of offering price) | 2.66 | |||
|
| |||
Maximum offering price to public | $ | 48.38 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share, | $ | 42.50 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share, | $ | 46.65 | ||
|
| |||
Class R2 | ||||
Net asset value, offering price and redemption price per share, | $ | 46.41 | ||
|
| |||
Class R4 | ||||
Net asset value, offering price and redemption price per share, | $ | 46.71 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, | $ | 46.93 | ||
|
|
See Notes to Financial Statements.
14
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $1,640,453 foreign withholding tax) | $ | 12,321,953 | ||
Income from securities lending, net (including affiliated income of $191,581) | 417,146 | |||
Affiliated dividend income | 93,188 | |||
|
| |||
Total income | 12,832,287 | |||
|
| |||
Expenses | ||||
Management fee | 30,731,909 | |||
Distribution fee(a) | 3,134,908 | |||
Shareholder servicing fees(a) | 387 | |||
Transfer agent’s fees and expenses (including affiliated expense of $150,397)(a) | 2,053,677 | |||
Custodian and accounting fees | 367,755 | |||
Registration fees(a) | 211,792 | |||
SEC registration fees | 133,283 | |||
Shareholders’ reports | 68,720 | |||
Directors’ fees | 46,264 | |||
Legal fees and expenses | 22,888 | |||
Audit fee | 14,208 | |||
Miscellaneous | 42,075 | |||
|
| |||
Total expenses | 36,827,866 | |||
Less: Fee waiver and/or expense reimbursement(a) | (228,405 | ) | ||
Distribution fee waiver(a) | (158,967 | ) | ||
|
| |||
Net expenses | 36,440,494 | |||
|
| |||
Net investment income (loss) | (23,608,207 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(21,067)) | 487,400,023 | |||
Foreign currency transactions | (518,926 | ) | ||
|
| |||
486,881,097 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $(51,702)) | 819,588,720 | |||
Foreign currencies | 86,788 | |||
|
| |||
819,675,508 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 1,306,556,605 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 1,282,948,398 | ||
|
|
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund 15
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R2 | Class R4 | Class R6 | |||||||||||||||||||
Distribution fee | 953,803 | 2,175,259 | — | 5,846 | — | — | ||||||||||||||||||
Shareholder servicing fees | — | — | — | 202 | 185 | — | ||||||||||||||||||
Transfer agent’s fees and expenses | 217,351 | 151,436 | 1,678,270 | 434 | 412 | 5,774 | ||||||||||||||||||
Registration fees | 28,056 | 17,167 | 75,591 | 5,299 | 5,299 | 80,380 | ||||||||||||||||||
Fee waiver and/or expense reimbursement | (218,227 | ) | — | — | (4,938 | ) | (5,240 | ) | — | |||||||||||||||
Distribution fee waiver | (158,967 | ) | — | — | — | — | — |
See Notes to Financial Statements.
16
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | (23,608,207 | ) | $ | (24,110,346 | ) | ||
Net realized gain (loss) on investment and foreign currency transactions | 486,881,097 | 185,878,039 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 819,675,508 | 1,677,114,199 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 1,282,948,398 | 1,838,881,892 | ||||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class A | (9,958,088 | ) | — | |||||
Class C | (7,632,427 | ) | — | |||||
Class Z | (66,508,567 | ) | — | |||||
Class R2 | (7,434 | ) | — | |||||
Class R4 | (9,579 | ) | — | |||||
Class R6 | (36,320,678 | ) | — | |||||
|
|
|
| |||||
(120,436,773 | ) | — | ||||||
|
|
|
| |||||
Series share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 2,038,071,018 | 2,869,534,185 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 117,629,727 | — | ||||||
Cost of shares purchased | (1,182,101,678 | ) | (1,210,949,163 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Series share transactions | 973,599,067 | 1,658,585,022 | ||||||
|
|
|
| |||||
Total increase (decrease) | 2,136,110,692 | 3,497,466,914 | ||||||
Net Assets: | ||||||||
Beginning of period | 6,053,239,232 | 2,555,772,318 | ||||||
|
|
|
| |||||
End of period | $ | 8,189,349,924 | $ | 6,053,239,232 | ||||
|
|
|
|
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund 17
Notes to Financial Statements (unaudited)
1. | Organization |
Prudential World Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company and currently consists of seven series: PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Jennison Global Infrastructure Fund, PGIM Jennison Global Opportunities Fund, PGIM Jennison International Opportunities Fund, PGIM QMA International Equity Fund and PGIM Emerging Markets Debt Hard Currency Fund, each of which are diversified funds for purposes of the 1940 Act, and PGIM Emerging Markets Debt Local Currency Fund, which is a non-diversified fund for purposes of the 1940 Act , and therefore, may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. These financial statements relate only to the PGIM Jennison Global Opportunities Fund (the “Series”).
The investment objective of the Series is to seek long-term growth of capital.
2. | Accounting Policies |
The Series follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Series in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Series’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The Fund’s Board of Directors (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
18
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Series’ foreign investments may change on days when investors cannot purchase or redeem Series shares.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Series is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
PGIM Jennison Global Opportunities Fund 19
Notes to Financial Statements (unaudited) (continued)
When determining the fair value 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 the 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 Manager 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The Fund, on behalf of the Series, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a
20
portion of the Series. A master netting arrangement between the Series and the counterparty permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Series lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral.
The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Series becomes aware of such dividends. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific
PGIM Jennison Global Opportunities Fund 21
Notes to Financial Statements (unaudited) (continued)
expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: The Series expects to pay dividends from net investment income and distributions from net realized capital and currency gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. | Agreements |
The Fund, on behalf of the Series, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The Manager pays for the services of Jennison.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.825% of the Series’ average daily net assets up to $1 billion and 0.800% of such assets in excess of $1 billion. The effective management fee rate before any waivers and/or expense reimbursements was 0.803% for the reporting period ended April 30, 2021.
The Manager has contractually agreed, through February 28, 2022, to limit net annual operating expenses (exclusive of distribution and service (12b-1) fees, shareholder servicing fee, and transfer agency expenses (including sub-transfer agency and networking fees), of
22
each class of shares to 0.84% of the Series’ average daily net assets, and to limit transfer agency, shareholder servicing, sub-transfer agency, and blue sky fees, as applicable, to the extent that such fees cause the net annual operating expenses to exceed 1.34% of average daily net assets for Class R2 shares or 1.09% of average daily net assets for Class R4 shares. Additionally, the Manager has contractually agreed, through February 28, 2022, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.08% of average daily net assets for Class A shares. These contractual waivers and expense limitation exclude interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Series expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
The Fund, on behalf of the Series, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z, Class R2, Class R4 and Class R6 shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A, Class C and Class R2 shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to 0.30%, 1% and 0.25% of the average daily net assets of the Class A, Class C and Class R2 shares, respectively. PIMS has contractually agreed through February 28, 2022 to limit such fees to 0.25% of the average daily net assets of the Class A shares. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z, Class R4 and Class R6 shares of the Series.
The Series has adopted a Shareholder Services Plan with respect to Class R2 and Class R4 shares. Under the terms of the Shareholder Services Plan, Class R2 and Class R4 shares are authorized to pay to Prudential Mutual Fund Services LLC (“PMFS”), its affiliates or third-party service providers, as compensation for services rendered to the shareholders of such Class R2 or Class R4 shares, a shareholder service fee at an annual rate of up to 0.10% of the average daily net assets attributable to Class R2 and Class R4 shares. The shareholder service fee is accrued daily and paid monthly, as applicable.
PGIM Jennison Global Opportunities Fund 23
Notes to Financial Statements (unaudited) (continued)
For the reporting period ended April 30, 2021, PIMS received $2,386,883 in front-end sales charges resulting from sales of Class A shares. Additionally, for the reporting period ended April 30, 2021, PIMS received $11,410 and $19,469 in contingent deferred sales charges imposed upon redemptions by certain Class A and Class C shareholders, respectively. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs.
PGIM Investments, PIMS, PMFS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. | Other Transactions with Affiliates |
PMFS serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2021, no 17a-7 transactions were entered into by the Series.
5. | Portfolio Securities |
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2021, were $3,350,724,700 and $2,430,465,582, respectively.
24
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2021, is presented as follows:
Value, | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: |
| |||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wa) |
| |||||||||||||||||||||||||||
$179,094,560 | $ | 1,339,624,246 | $ | 1,413,985,875 | $ | — | $ | — | $ | 104,732,931 | 104,732,931 | $ | 93,188 | |||||||||||||||
PGIM Institutional Money Market Fund (1)(b)(wa) |
| |||||||||||||||||||||||||||
462,551,442 | 2,127,587,734 | 2,235,246,441 | (51,702 | ) | (21,067 | ) | 354,819,966 | 354,997,465 | 191,581 | (2) | ||||||||||||||||||
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|
|
|
|
|
|
|
| ||||||||||||||||
$641,646,002 | $ | 3,467,211,980 | $ | 3,649,232,316 | $ | (51,702 | ) | $ | (21,067 | ) | $ | 459,552,897 | $ | 284,769 | ||||||||||||||
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(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of April 30, 2021 were as follows:
Tax Basis | $ | 5,709,811,149 | ||
|
| |||
Gross Unrealized Appreciation | 2,967,381,948 | |||
Gross Unrealized Depreciation | (101,674,915 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 2,865,707,033 | ||
|
|
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
The Series elected to treat certain late-year ordinary income losses of approximately $16,406,000 as having been incurred in the following fiscal year (October 31, 2021).
The Manager has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Series’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2020 are subject to such review.
PGIM Jennison Global Opportunities Fund 25
Notes to Financial Statements (unaudited) (continued)
7. | Capital and Ownership |
The Series offers Class A, Class C, Class Z, Class R2, Class R4 and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z, Class R2, Class R4 and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock, below.
The Fund is authorized to issue 5.075 billion shares of common stock, $0.01 par value per share, 950 million of which are designated as shares of the Series. The shares are currently classified and designated as follows:
Class A | 50,000,000 | |||
Class C | 70,000,000 | |||
Class Z | 300,000,000 | |||
Class T | 125,000,000 | |||
Class R2 | 75,000,000 | |||
Class R4 | 75,000,000 | |||
Class R6 | 255,000,000 |
The Series currently does not have any Class T shares outstanding.
As of April 30, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Series as follows:
Number of Shares | Percentage of Outstanding Shares | |||
Class R2 | 494 | 0.1% | ||
Class R4 | 494 | 3.3% |
26
At the reporting period end, the number of shareholders holding greater than 5% of the Series are as follows:
Affiliated | Unaffiliated | |||||
Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | |||
— | —% | 6 | 78.4% |
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 3,200,596 | $ | 144,169,010 | |||||
Shares issued in reinvestment of dividends and distributions | 222,928 | 9,777,601 | ||||||
Shares purchased | (1,244,521 | ) | (55,818,073 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 2,179,003 | 98,128,538 | ||||||
Shares issued upon conversion from other share class(es) | 493,987 | 23,261,361 | ||||||
Shares purchased upon conversion into other share class(es) | (311,847 | ) | (14,141,658 | ) | ||||
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|
|
| |||||
Net increase (decrease) in shares outstanding | 2,361,143 | $ | 107,248,241 | |||||
|
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|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 5,738,717 | $ | 181,584,437 | |||||
Shares purchased | (2,465,079 | ) | (74,149,989 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 3,273,638 | 107,434,448 | ||||||
Shares issued upon conversion from other share class(es) | 428,288 | 13,295,901 | ||||||
Shares purchased upon conversion into other share class(es) | (474,524 | ) | (15,077,525 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 3,227,402 | $ | 105,652,824 | |||||
|
|
|
| |||||
Class C | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 1,389,995 | $ | 58,489,923 | |||||
Shares issued in reinvestment of dividends and distributions | 184,797 | 7,556,334 | ||||||
Shares purchased | (619,108 | ) | (25,793,527 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 955,684 | 40,252,730 | ||||||
Shares purchased upon conversion into other share class(es) | (555,941 | ) | (24,485,016 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 399,743 | $ | 15,767,714 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 3,153,742 | $ | 91,465,665 | |||||
Shares purchased | (1,559,131 | ) | (43,284,069 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,594,611 | 48,181,596 | ||||||
Shares purchased upon conversion into other share class(es) | (584,386 | ) | (16,711,305 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,010,225 | $ | 31,470,291 | |||||
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|
|
|
PGIM Jennison Global Opportunities Fund 27
Notes to Financial Statements (unaudited) (continued)
Class Z | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 20,619,717 | $ | 944,446,017 | |||||
Shares issued in reinvestment of dividends and distributions | 1,448,278 | 64,781,490 | ||||||
Shares purchased | (16,982,826 | ) | (778,742,609 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 5,085,169 | 230,484,898 | ||||||
Shares issued upon conversion from other share class(es) | 522,552 | 24,134,654 | ||||||
Shares purchased upon conversion into other share class(es) | (211,939 | ) | (9,598,050 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 5,395,782 | $ | 245,021,502 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 54,820,204 | $ | 1,691,528,205 | |||||
Shares purchased | (27,602,817 | ) | (875,896,188 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 27,217,387 | 815,632,017 | ||||||
Shares issued upon conversion from other share class(es) | 853,698 | 26,946,718 | ||||||
Shares purchased upon conversion into other share class(es) | (323,337 | ) | (10,207,454 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 27,747,748 | $ | 832,371,281 | |||||
|
|
|
| |||||
Class R2 | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 428,642 | $ | 19,042,200 | |||||
Shares issued in reinvestment of dividends and distributions | 167 | 7,434 | ||||||
Shares purchased | (4,684 | ) | (214,627 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 424,125 | $ | 18,835,007 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 9,568 | $ | 296,916 | |||||
Shares purchased | (416) | (15,390 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 9,152 | $ | 281,526 | |||||
|
|
|
| |||||
Class R4 | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 2,578 | $ | 122,458 | |||||
Shares issued in reinvestment of dividends and distributions | 214 | 9,579 | ||||||
Shares purchased | (661 | ) | (29,574 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 2,131 | $ | 102,463 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 1,345 | $ | 40,198 | |||||
Shares purchased | (2,925 | ) | (101,382 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,580 | ) | $ | (61,184 | ) | |||
|
|
|
|
28
Class R6 | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 18,809,952 | $ | 871,801,410 | |||||
Shares issued in reinvestment of dividends and distributions | 789,179 | 35,497,289 | ||||||
Shares purchased | (6,857,559 | ) | (321,503,268 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 12,741,572 | 585,795,431 | ||||||
Shares issued upon conversion from other share class(es) | 34,170 | 1,566,694 | ||||||
Shares purchased upon conversion into other share class(es) | (15,831 | ) | (737,985 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 12,759,911 | $ | 586,624,140 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 26,781,782 | $ | 904,618,764 | |||||
Shares purchased | (6,652,807 | ) | (217,502,145 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 20,128,975 | 687,116,619 | ||||||
Shares issued upon conversion from other share class(es) | 59,984 | 1,964,598 | ||||||
Shares purchased upon conversion into other share class(es) | (6,636 | ) | (210,933 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 20,182,323 | $ | 688,870,284 | |||||
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8. | Borrowings |
The Fund, on behalf of the Series, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/2/2020 – 9/30/2021 | |
Total Commitment | $ 1,200,000,000 | |
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | |
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Series did not utilize the SCA during the reporting period ended April 30, 2021.
PGIM Jennison Global Opportunities Fund 29
Notes to Financial Statements (unaudited) (continued)
9. | Risks of Investing in the Series |
The Series’ risks include, but are not limited to, some or all of the risks discussed below. For further information on the Series’ risks, please refer to the Series’ Prospectus and Statement of Additional Information.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-US investors, or that prevent non-US investors from withdrawing their money at will. Countries with emerging markets can be found in regions such as Asia, Latin America, Eastern Europe and Africa.
The Series may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Series invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-US issuers (including those denominated in US dollars) generally involve more risk than investing in securities of US issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the US. Foreign legal systems generally have fewer regulatory requirements than the US legal system. In general, less information is publicly available about non-US companies than about US companies. Non-US companies generally are not subject to the same accounting, auditing, and financial reporting standards as are US companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Series holds and the Series’ performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines. In addition, the Series’ investments in non-US securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency
30
exchange controls or restrictions on the repatriation of non-US currency, confiscatory taxation and adverse diplomatic developments. Special US tax considerations may apply.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Series’ shares. There is no requirement that these entities maintain their investment in the Series. There is a risk that such large shareholders or that the Series’ shareholders generally may redeem all or a substantial portion of their investments in the Series in a short period of time, which could have a significant negative impact on the Series’ NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Series’ ability to implement its investment strategy. The Series’ ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Series may invest a larger portion of its assets in cash or cash equivalents.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Series’ investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Series invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Series’ securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Series fall, the value of your investment in the Series will decline.
10. | Recent Regulatory Developments |
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in
PGIM Jennison Global Opportunities Fund 31
Notes to Financial Statements (unaudited) (continued)
part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Series.
32
Financial Highlights (unaudited)
Class A Shares | |||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2021 | Year Ended October 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||
Per Share Operating Performance(a): |
| ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $38.50 | $24.58 | $21.47 | $20.72 | $15.14 | $15.63 | |||||||||||||||||||||||||||
Income (loss) from investment operations: |
| ||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.17 | ) | (0.22 | ) | (0.11 | ) | (0.13 | ) | (0.09 | ) | (0.05 | ) | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 8.13 | 14.14 | 3.22 | 0.88 | 5.67 | (0.44 | ) | ||||||||||||||||||||||||||
Total from investment operations | 7.96 | 13.92 | 3.11 | 0.75 | 5.58 | (0.49 | ) | ||||||||||||||||||||||||||
Less Dividends and Distributions: |
| ||||||||||||||||||||||||||||||||
Distributions from net realized gains | (0.74 | ) | - | - | - | - | - | ||||||||||||||||||||||||||
Net asset value, end of period | $45.72 | $38.50 | $24.58 | $21.47 | $20.72 | $15.14 | |||||||||||||||||||||||||||
Total Return(b): | 20.76 | % | 56.63 | % | 14.49 | % | 3.62 | % | 36.86 | % | (3.13 | )% | |||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $694,767 | $494,173 | $236,118 | $164,764 | $90,247 | $89,579 | |||||||||||||||||||||||||||
Average net assets (000) | $641,138 | $344,283 | $205,653 | $142,313 | $70,810 | $100,220 | |||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | |||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.08 | %(e) | 1.08 | % | 1.08 | % | 1.14 | % | 1.19 | % | 1.20 | % | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.20 | %(e) | 1.24 | % | 1.28 | % | 1.30 | % | 1.33 | % | 1.36 | % | |||||||||||||||||||||
Net investment income (loss) | (0.74 | )%(e) | (0.69 | )% | (0.45 | )% | (0.55 | )% | (0.55 | )% | (0.31 | )% | |||||||||||||||||||||
Portfolio turnover rate(f) | 33 | % | 57 | % | 52 | % | 62 | % | 79 | % | 88 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund 33
Financial Highlights (unaudited) (continued)
Class C Shares | |||||||||||||||||||||||||||||||||
Six Months Ended April 30, 2021 | Year Ended October 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||
Per Share Operating Performance(a): |
| ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $35.98 | $23.16 | $20.41 | $19.85 | $14.61 | $15.20 | |||||||||||||||||||||||||||
Income (loss) from investment operations: |
| ||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.33 | ) | (0.45 | ) | (0.29 | ) | (0.30 | ) | (0.22 | ) | (0.15 | ) | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 7.59 | 13.27 | 3.04 | 0.86 | 5.46 | (0.44 | ) | ||||||||||||||||||||||||||
Total from investment operations | 7.26 | 12.82 | 2.75 | 0.56 | 5.24 | (0.59 | ) | ||||||||||||||||||||||||||
Less Dividends and Distributions: |
| ||||||||||||||||||||||||||||||||
Distributions from net realized gains | (0.74 | ) | - | - | - | - | - | ||||||||||||||||||||||||||
Net asset value, end of period | $42.50 | $35.98 | $23.16 | $20.41 | $19.85 | $14.61 | |||||||||||||||||||||||||||
Total Return(b): | 20.27 | % | 55.31 | % | 13.47 | % | 2.82 | % | 35.87 | % | (3.88 | )% | |||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $447,611 | $364,557 | $211,290 | $168,587 | $79,531 | $52,246 | |||||||||||||||||||||||||||
Average net assets (000) | $438,657 | $279,272 | $198,518 | $136,788 | $55,922 | $50,113 | |||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | |||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.90 | %(e) | 1.93 | % | 1.94 | % | 1.94 | % | 1.94 | % | 1.95 | % | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.90 | %(e) | 1.93 | % | 1.97 | % | 1.99 | % | 2.03 | % | 2.06 | % | |||||||||||||||||||||
Net investment income (loss) | (1.57 | )%(e) | (1.53 | )% | (1.31 | )% | (1.35 | )% | (1.28 | )% | (1.07 | )% | |||||||||||||||||||||
Portfolio turnover rate(f) | 33 | % | 57 | % | 52 | % | 62 | % | 79 | % | 88 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
34
Class Z Shares | |||||||||||||||||||||||||||||||||
Six Months 2021 | Year Ended October 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||
Per Share Operating Performance(a): | |||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $39.24 | $25.01 | $21.82 | $21.00 | $15.31 | $15.77 | |||||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.13 | ) | (0.17 | ) | (0.07 | ) | (0.08 | ) | (0.05 | ) | (0.01 | ) | |||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 8.28 | 14.40 | 3.26 | 0.90 | 5.74 | (0.45 | ) | ||||||||||||||||||||||||||
Total from investment operations | 8.15 | 14.23 | 3.19 | 0.82 | 5.69 | (0.46 | ) | ||||||||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||||||
Distributions from net realized gains | (0.74 | ) | - | - | - | - | - | ||||||||||||||||||||||||||
Net asset value, end of period | $46.65 | $39.24 | $25.01 | $21.82 | $21.00 | $15.31 | |||||||||||||||||||||||||||
Total Return(b): | 20.86 | % | 56.90 | % | 14.62 | % | 3.90 | % | 37.17 | % | (2.92 | )% | |||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $4,282,002 | $3,390,006 | $1,466,571 | $927,492 | $334,783 | $114,228 | |||||||||||||||||||||||||||
Average net assets (000) | $4,193,633 | $2,338,060 | $1,228,375 | $693,749 | $193,977 | $131,042 | |||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | |||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.91 | %(e) | 0.93 | % | 0.94 | % | 0.93 | % | 0.94 | % | 0.95 | % | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.91 | %(e) | 0.93 | % | 0.96 | % | 0.97 | % | 1.02 | % | 1.06 | % | |||||||||||||||||||||
Net investment income (loss) | (0.57 | )%(e) | (0.54 | )% | (0.31 | )% | (0.35 | )% | (0.28 | )% | (0.07 | )% | |||||||||||||||||||||
Portfolio turnover rate(f) | 33 | % | 57 | % | 52 | % | 62 | % | 79 | % | 88 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund 35
Financial Highlights (unaudited) (continued)
Class R2 Shares | ||||||||||||||||||||
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | December 27, 2018(a) through October 31, 2019 | ||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||
Net Asset Value, Beginning of Period | $ | 39.10 | $ | 25.02 | $ | 20.59 | ||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||
Net investment income (loss) | (0.08 | ) | (0.31 | ) | (0.12 | ) | ||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 8.13 | 14.39 | 4.55 | |||||||||||||||||
Total from investment operations | 8.05 | 14.08 | 4.43 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||
Distributions from net realized gains | (0.74 | ) | - | - | ||||||||||||||||
Net asset value, end of period | $ | 46.41 | $ | 39.10 | $ | 25.02 | ||||||||||||||
Total Return(c): | 20.67 | % | 56.27 | % | 21.52 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||
Net assets, end of period (000) | $ | 20,133 | $ | 377 | $ | 12 | ||||||||||||||
Average net assets (000) | $ | 4,716 | $ | 221 | $ | 13 | ||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.12 | %(e) | 1.33 | % | 1.34 | %(e) | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.33 | %(e) | 7.68 | % | 216.05 | %(e) | ||||||||||||||
Net investment income (loss) | (0.35 | )%(e) | (0.92 | )% | (0.58 | )%(e) | ||||||||||||||
Portfolio turnover rate(f) | 33 | % | 57 | % | 52 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
36
Class R4 Shares | |||||||||||||||||
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | December 27, 2018(a) through October 31, 2019 | |||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||
Net Asset Value, Beginning of Period | $39.31 | $25.08 | $20.59 | ||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | (0.16 | ) | (0.19 | ) | (0.10 | ) | |||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 8.30 | 14.42 | 4.59 | ||||||||||||||
Total from investment operations | 8.14 | 14.23 | 4.49 | ||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||
Distributions from net realized gains | (0.74 | ) | - | - | |||||||||||||
Net asset value, end of period | $46.71 | $39.31 | $25.08 | ||||||||||||||
Total Return(c): | 20.79 | % | 56.74 | % | 21.81 | % | |||||||||||
Ratios/Supplemental Data: | |||||||||||||||||
Net assets, end of period (000) | $700 | $505 | $362 | ||||||||||||||
Average net assets (000) | $647 | $433 | $122 | ||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.03 | %(e) | 1.02 | % | 0.97 | %(e) | |||||||||||
Expenses before waivers and/or expense reimbursement | 2.66 | %(e) | 4.28 | % | 23.67 | %(e) | |||||||||||
Net investment income (loss) | (0.69 | )%(e) | (0.60 | )% | (0.46 | )%(e) | |||||||||||
Portfolio turnover rate(f) | 33 | % | 57 | % | 52 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Opportunities Fund 37
Financial Highlights (unaudited) (continued)
Class R6 Shares | |||||||||||||||||||||||||||||||||
Six Months 2021 | Year Ended October 31, | ||||||||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||||||||
Per Share Operating Performance(a): | |||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $39.46 | $25.13 | $21.90 | $21.06 | $15.33 | $15.78 | |||||||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.11 | ) | (0.15 | ) | (0.06 | ) | (0.06 | ) | (0.04 | ) | 0.01 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 8.32 | 14.48 | 3.29 | 0.90 | 5.77 | (0.46 | ) | ||||||||||||||||||||||||||
Total from investment operations | 8.21 | 14.33 | 3.23 | 0.84 | 5.73 | (0.45 | ) | ||||||||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||||||||
Distributions from net realized gains | (0.74 | ) | - | - | - | - | - | ||||||||||||||||||||||||||
Net asset value, end of period | $46.93 | $39.46 | $25.13 | $21.90 | $21.06 | $15.33 | |||||||||||||||||||||||||||
Total Return(b): | 20.89 | % | 57.02 | % | 14.75 | % | 3.99 | % | 37.38 | % | (2.85 | )% | |||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $2,744,137 | $1,803,620 | $641,419 | $253,010 | $29,023 | $8,647 | |||||||||||||||||||||||||||
Average net assets (000) | $2,436,607 | $1,074,262 | $448,178 | $133,984 | $14,700 | $7,736 | |||||||||||||||||||||||||||
Ratios to average net assets(c)(d): | |||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.83 | %(e) | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.83 | %(e) | 0.84 | % | 0.87 | % | 0.90 | % | 0.92 | % | 0.95 | % | |||||||||||||||||||||
Net investment income (loss) | (0.49 | )%(e) | (0.46 | )% | (0.23 | )% | (0.26 | )% | (0.23 | )% | 0.05 | % | |||||||||||||||||||||
Portfolio turnover rate(f) | 33 | % | 57 | % | 52 | % | 62 | % | 79 | % | 88 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
38
Series Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Series has adopted and implemented a liquidity risk management program (the “LRMP”). The Series’ LRMP seeks to assess and manage the Series’ liquidity risk, which is defined as the risk that the Series is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Series. The Company’s Board of Directors (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Series’ investment manager, to serve as the administrator of the Series’ LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Series’ LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Series’ LRMP includes no less than annual assessments of factors that influence the Series’ liquidity risk; no less than monthly classifications of the Series’ investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Series’ assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Series does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 2-5, 2021, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Series’ LRMP, including any material changes to the LRMP for the period from January 1, 2020 through December 31, 2020 (“Reporting Period”). The LRMP Report concluded that the Series’ LRMP was reasonably designed to assess and manage the Series’ liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Series’ investment strategies continue to be appropriate given the Series’ status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Series, including liquidity risks presented by the Series’ investment portfolio, is found in the Series’ Prospectus and Statement of Additional Information.
PGIM Jennison Global Opportunities Fund | 39 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Jennison Global Opportunities Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM JENNISON GLOBAL OPPORTUNITIES FUND
SHARE CLASS | A | C | Z | R2 | R4 | R6 | ||||||
NASDAQ | PRJAX | PRJCX | PRJZX | PRJBX | PRJDX | PRJQX | ||||||
CUSIP | 743969719 | 743969693 | 743969685 | 743969438 | 743969420 | 743969594 |
MF214E2
PGIM JENNISON INTERNATIONAL OPPORTUNITIES FUND
SEMIANNUAL REPORT
APRIL 30, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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9 |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2021 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2021 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM Jennison International Opportunities Fund informative and useful. The report covers performance for the six-month period ended April 30, 2021.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for
risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Jennison International Opportunities Fund
June 15, 2021
PGIM Jennison International Opportunities Fund | 3 |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
(without sales charges) | Average Annual Total Returns as of 4/30/21 (with sales charges) | |||||||||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||||||||
Class A | 21.69 | 59.50 | 21.35 | 14.61 (6/5/12) | ||||||||||
Class C | 21.20 | 66.42 | 21.76 | 14.46 (6/5/12) | ||||||||||
Class R | 21.48 | 68.18 | N/A | 21.02 (11/20/17) | ||||||||||
Class Z | 21.78 | 69.16 | 23.00 | 15.61 (6/5/12) | ||||||||||
Class R2 | 21.55 | 68.43 | N/A | 42.20 (12/27/18) | ||||||||||
Class R4 | 21.77 | 68.92 | N/A | 42.59 (12/27/18) | ||||||||||
Class R6 | 21.83 | 69.24 | 23.08 | 19.92 (12/23/15) | ||||||||||
MSCI All Country World ex-US Index | ||||||||||||||
27.40 | 42.98 | 9.83 | — | |||||||||||
Average Annual Total Returns as of 4/30/21 Since Inception (%) | ||||||||
Class A, C, Z (6/5/12) | Class R (11/20/17) | Class R2, R4 (12/27/18) | Class R6 (12/23/15) | |||||
MSCI All Country World ex-US Index | 8.42 | 6.91 | 16.65 | 9.64 |
*Not annualized
Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to each class’ inception date.
4 | Visit our website at pgim.com/investments |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class R | Class Z | Class R2 | Class R4 | Class R6 | ||||||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | None | None | None | |||||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | None | None | None | |||||||
Annual distribution or distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% (0.25% currently) | 1.00% | 0.75% (0.50% currently) | None | 0.25% | None | None | |||||||
Shareholder service fee | None | None | None | None | 0.10%* | 0.10%* | None |
*Shareholder service fee reflects maximum allowable fees under a shareholder services plan.
Benchmark Definitions
MSCI All Country World ex-US Index—The Morgan Stanley Capital International All Country World ex-US (MSCI ACWI ex-US) Index is an unmanaged, free float-adjusted market-capitalization weighted index designed to provide a broad measure of stock performance throughout the world, with the exception of US-based companies. The MSCI ACWI ex-US Index includes both developed and emerging markets.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
PGIM Jennison International Opportunities Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/21
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
Adyen NV, 144A | IT Services | Netherlands | 6.5% | |||
MercadoLibre, Inc. | Internet & Direct Marketing Retail | Argentina | 5.3% | |||
Sea Ltd., ADR | Entertainment | Taiwan | 5.0% | |||
LVMH Moet Hennessy Louis Vuitton SE | Textiles, Apparel & Luxury Goods | France | 4.7% | |||
Shopify, Inc. (Class A Stock) | IT Services | Canada | 4.5% | |||
Sartorius AG (PRFC) | Health Care Equipment & Supplies | Germany | 4.4% | |||
Wuxi Biologics Cayman, Inc., 144A | Life Sciences Tools & Services | China | 4.1% | |||
Wix.com Ltd. | IT Services | Israel | 3.9% | |||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | Semiconductors & Semiconductor Equipment | Taiwan | 3.9% | |||
Techtronic Industries Co. Ltd. | Machinery | Hong Kong | 3.7% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2021. The example is for illustrative purposes only; you should consult the Fund’s Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period
PGIM Jennison International Opportunities Fund | 7 |
Fees and Expenses (continued)
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison International Opportunities Fund | Beginning Account Value November 1, 2020 | Ending Account April 30, 2021 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,216.90 | 1.09 | % | $ | 5.99 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.39 | 1.09 | % | $ | 5.46 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,212.00 | 1.90 | % | $ | 10.42 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.37 | 1.90 | % | $ | 9.49 | ||||||||||
Class R | Actual | $ | 1,000.00 | $ | 1,214.80 | 1.46 | % | $ | 8.02 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.55 | 1.46 | % | $ | 7.30 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,217.80 | 0.90 | % | $ | 4.95 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.33 | 0.90 | % | $ | 4.51 | ||||||||||
Class R2 | Actual | $ | 1,000.00 | $ | 1,215.50 | 1.28 | % | $ | 7.03 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.45 | 1.28 | % | $ | 6.41 | ||||||||||
Class R4 | Actual | $ | 1,000.00 | $ | 1,217.70 | 0.98 | % | $ | 5.39 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.93 | 0.98 | % | $ | 4.91 | ||||||||||
Class R6 | Actual | $ | 1,000.00 | $ | 1,218.30 | 0.84 | % | $ | 4.62 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,020.63 | 0.84 | % | $ | 4.21 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2021, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 98.9% | ||||||||
COMMON STOCKS 94.5% | ||||||||
Argentina 5.3% | ||||||||
MercadoLibre, Inc.* | 154,048 | $ | 242,006,327 | |||||
Canada 4.5% | ||||||||
Shopify, Inc. (Class A Stock)* | 174,558 | 206,416,581 | ||||||
China 10.1% | ||||||||
Bilibili, Inc., ADR*(a) | 584,528 | 64,800,774 | ||||||
Meituan (Class B Stock), 144A* | 2,753,757 | 105,451,654 | ||||||
Tencent Holdings Ltd. | 1,304,170 | 104,810,274 | ||||||
Wuxi Biologics Cayman, Inc., 144A* | 13,084,659 | 183,949,688 | ||||||
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459,012,390 | ||||||||
France 18.8% | ||||||||
Dassault Systemes SE | 504,143 | 116,806,892 | ||||||
Hermes International | 66,555 | 83,420,543 | ||||||
Kering SA | 138,575 | 111,221,871 | ||||||
L’Oreal SA | 351,374 | 143,902,820 | ||||||
LVMH Moet Hennessy Louis Vuitton SE | 285,577 | 214,666,993 | ||||||
Pernod Ricard SA | 563,793 | 115,717,908 | ||||||
Remy Cointreau SA | 353,320 | 70,562,276 | ||||||
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856,299,303 | ||||||||
Hong Kong 3.7% | ||||||||
Techtronic Industries Co. Ltd. | 9,181,049 | 166,894,772 | ||||||
Israel 6.7% | ||||||||
Nice Ltd., ADR* | 519,753 | 125,380,016 | ||||||
Wix.com Ltd.* | 562,189 | 178,708,639 | ||||||
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304,088,655 | ||||||||
Italy 4.6% | ||||||||
Brunello Cucinelli SpA* | 1,437,015 | 73,592,034 | ||||||
Ferrari NV | 647,345 | 138,330,151 | ||||||
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211,922,185 | ||||||||
Japan 5.4% | ||||||||
GMO Payment Gateway, Inc. | 599,253 | 76,434,393 |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Japan (cont’d.) | ||||||||
Keyence Corp. | 212,989 | $ | 102,413,556 | |||||
Menicon Co. Ltd. | 1,095,642 | 66,495,258 | ||||||
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245,343,207 | ||||||||
Luxembourg 1.9% | ||||||||
Eurofins Scientific SE* | 858,570 | 85,066,508 | ||||||
Netherlands 11.1% | ||||||||
Adyen NV, 144A* | 120,850 | 296,373,025 | ||||||
Argenx SE, ADR* | 228,764 | 65,588,926 | ||||||
ASML Holding NV | 225,153 | 146,182,575 | ||||||
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508,144,526 | ||||||||
Sweden 0.8% | ||||||||
Evolution Gaming Group AB, 144A | 188,258 | 37,259,776 | ||||||
Switzerland 6.0% | ||||||||
Alcon, Inc.* | 756,305 | 56,725,173 | ||||||
Givaudan SA | 26,141 | 109,580,731 | ||||||
Straumann Holding AG | 73,876 | 105,725,663 | ||||||
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272,031,567 | ||||||||
Taiwan 8.9% | ||||||||
Sea Ltd., ADR*(a) | 905,332 | 228,632,543 | ||||||
Taiwan Semiconductor Manufacturing Co. Ltd., ADR | 1,497,166 | 174,779,159 | ||||||
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403,411,702 | ||||||||
United Kingdom 1.9% | ||||||||
Abcam PLC* | 4,092,627 | 87,557,849 | ||||||
United States 4.8% | ||||||||
Atlassian Corp. PLC (Class A Stock)* | 542,592 | 128,898,155 | ||||||
Spotify Technology SA* | 365,581 | 92,170,282 | ||||||
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221,068,437 | ||||||||
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TOTAL COMMON STOCKS | 4,306,523,785 | |||||||
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See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
PREFERRED STOCK 4.4% | ||||||||
Germany | ||||||||
Sartorius AG (PRFC) | 356,587 | $ | 201,491,373 | |||||
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TOTAL LONG-TERM INVESTMENTS | 4,508,015,158 | |||||||
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SHORT-TERM INVESTMENTS 3.7% | ||||||||
AFFILIATED MUTUAL FUNDS | ||||||||
PGIM Core Ultra Short Bond Fund(wa) | 55,270,637 | 55,270,637 | ||||||
PGIM Institutional Money Market Fund | 113,762,074 | 113,705,193 | ||||||
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TOTAL SHORT-TERM INVESTMENTS | 168,975,830 | |||||||
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TOTAL INVESTMENTS 102.6% | 4,676,990,988 | |||||||
Liabilities in excess of other assets (2.6)% | (120,385,404 | ) | ||||||
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NET ASSETS 100.0% | $ | 4,556,605,584 | ||||||
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Below is a list of the abbreviation(s) used in the semiannual report:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
ADR—American Depositary Receipt
LIBOR—London Interbank Offered Rate
PRFC—Preference Shares
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $109,020,000; cash collateral of $113,690,239 (included in liabilities) was received with which the Series purchased highly liquid short-term investments. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the Series may reflect a collateral value that is less than the market value of the loaned securities and such shortfall is remedied the following business day. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Common Stocks | ||||||||||||
Argentina | $ | 242,006,327 | $ | — | $ | — | ||||||
Canada | 206,416,581 | — | — | |||||||||
China | 64,800,774 | 394,211,616 | — | |||||||||
France | — | 856,299,303 | — | |||||||||
Hong Kong | — | 166,894,772 | — | |||||||||
Israel | 304,088,655 | — | — | |||||||||
Italy | — | 211,922,185 | — | |||||||||
Japan | — | 245,343,207 | — | |||||||||
Luxembourg | — | 85,066,508 | — | |||||||||
Netherlands | 65,588,926 | 442,555,600 | — | |||||||||
Sweden | — | 37,259,776 | — | |||||||||
Switzerland | — | 272,031,567 | — | |||||||||
Taiwan | 403,411,702 | — | — | |||||||||
United Kingdom | — | 87,557,849 | — | |||||||||
United States. | 221,068,437 | — | — | |||||||||
Preferred Stock | ||||||||||||
Germany | — | 201,491,373 | — | |||||||||
Affiliated Mutual Funds | 168,975,830 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 1,676,357,232 | $ | 3,000,633,756 | $ | — | ||||||
|
|
|
|
|
|
See Notes to Financial Statements.
12 |
Industry Classification:
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2021 were as follows:
IT Services | 16.6 | % | ||
Textiles, Apparel & Luxury Goods | 10.5 | |||
Health Care Equipment & Supplies | 9.5 | |||
Entertainment | 8.4 | |||
Software | 8.2 | |||
Internet & Direct Marketing Retail | 7.6 | |||
Semiconductors & Semiconductor Equipment | 7.1 | |||
Life Sciences Tools & Services | 6.0 | |||
Beverages | 4.1 | |||
Affiliated Mutual Funds (2.5% represents investments purchased with collateral from securities on loan) | 3.7 | |||
Machinery | 3.7 |
Biotechnology | 3.3 | % | ||
Personal Products | 3.2 | |||
Automobiles | 3.0 | |||
Chemicals | 2.4 | |||
Interactive Media & Services | 2.3 | |||
Electronic Equipment, Instruments & Components | 2.2 | |||
Hotels, Restaurants & Leisure | 0.8 | |||
|
| |||
102.6 | ||||
Liabilities in excess of other assets | (2.6 | ) | ||
|
| |||
100.0 | % | |||
|
|
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Series entered into financial instruments/transactions during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for financial instruments/transactions where the legal right to set-off exists is presented in the summary below.
Offsetting of financial instrument/transaction assets and liabilities:
Description | Gross Market Value of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(1) | Net Amount | |||||||||
Securities on Loan | $ | 109,020,000 | $ | (109,020,000 | ) | $ | — | |||||
|
|
|
|
|
|
(1) | Collateral amount disclosed by the Series is limited to the market value of financial instruments/transactions. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 13 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Assets | ||||
Investments at value, including securities on loan of $109,020,000: | ||||
Unaffiliated investments (cost $3,327,596,854) | $ | 4,508,015,158 | ||
Affiliated investments (cost $168,973,111) | 168,975,830 | |||
Receivable for Series shares sold | 25,905,661 | |||
Tax reclaim receivable | 1,741,017 | |||
Dividends receivable | 969,060 | |||
Prepaid expenses and other assets | 15,564 | |||
|
| |||
Total Assets | 4,705,622,290 | |||
|
| |||
Liabilities | ||||
Payable to broker for collateral for securities on loan | 113,690,239 | |||
Payable for Series shares purchased | 16,235,830 | |||
Payable for investments purchased | 15,926,505 | |||
Management fee payable | 2,815,063 | |||
Distribution fee payable | 192,936 | |||
Affiliated transfer agent fee payable | 90,536 | |||
Accrued expenses and other liabilities | 62,923 | |||
Payable to custodian | 1,587 | |||
Affiliated shareholder servicing fees payable | 1,087 | |||
|
| |||
Total Liabilities | 149,016,706 | |||
|
| |||
Net Assets | $ | 4,556,605,584 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 1,313,095 | ||
Paid-in capital in excess of par | 3,374,079,112 | |||
Total distributable earnings (loss) | 1,181,213,377 | |||
|
| |||
Net assets, April 30, 2021 | $ | 4,556,605,584 | ||
|
|
See Notes to Financial Statements.
14
Class A | ||||
Net asset value and redemption price per share, | $ | 34.24 | ||
Maximum sales charge (5.50% of offering price) | 1.99 | |||
|
| |||
Maximum offering price to public | $ | 36.23 | ||
|
| |||
Class C | ||||
Net asset value, offering price and redemption price per share, | $ | 31.97 | ||
|
| |||
Class R | ||||
Net asset value, offering price and redemption price per share, | $ | 33.99 | ||
|
| |||
Class Z | ||||
Net asset value, offering price and redemption price per share, | $ | 34.78 | ||
|
| |||
Class R2 | ||||
Net asset value, offering price and redemption price per share, | $ | 34.46 | ||
|
| |||
Class R4 | ||||
Net asset value, offering price and redemption price per share, | $ | 34.68 | ||
|
| |||
Class R6 | ||||
Net asset value, offering price and redemption price per share, | $ | 34.84 | ||
|
|
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 15 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $1,677,242 foreign withholding tax) | $ | 7,801,190 | ||
Income from securities lending, net (including affiliated income of $19,285) | 193,879 | |||
Affiliated dividend income | 64,209 | |||
|
| |||
Total income | 8,059,278 | |||
|
| |||
Expenses | ||||
Management fee | 14,393,088 | |||
Distribution fee(a) | 1,515,095 | |||
Shareholder servicing fees (including affiliated expense of $4,232)(a) | 5,677 | |||
Transfer agent’s fees and expenses (including affiliated expense of $247,446)(a) | 984,311 | |||
Custodian and accounting fees | 259,469 | |||
Registration fees(a) | 173,923 | |||
SEC registration fees | 61,778 | |||
Shareholders’ reports | 33,235 | |||
Directors’ fees | 20,046 | |||
Audit fee | 13,911 | |||
Legal fees and expenses | 13,643 | |||
Miscellaneous | 25,633 | |||
|
| |||
Total expenses | 17,499,809 | |||
Less: Fee waiver and/or expense reimbursement(a) | (187,112 | ) | ||
Distribution fee waiver(a) | (435,763 | ) | ||
|
| |||
Net expenses | 16,876,934 | |||
|
| |||
Net investment income (loss) | (8,817,656 | ) | ||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $67,055) | 49,200,005 | |||
Foreign currency transactions | (900,091 | ) | ||
|
| |||
48,299,914 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments (including affiliated of $(73,167)) | 558,778,034 | |||
Foreign currencies | 36,984 | |||
|
| |||
558,815,018 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 607,114,932 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 598,297,276 | ||
|
|
See Notes to Financial Statements.
16 |
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class R | Class Z | Class R2 | Class R4 | Class R6 | ||||||||||||||||||||||
Distribution fee | 166,017 | 116,938 | 1,224,280 | — | 7,860 | — | — | |||||||||||||||||||||
Shareholder servicing fees | — | — | — | — | 2,623 | 3,054 | — | |||||||||||||||||||||
Transfer agent’s fees and expenses | 40,712 | 7,257 | 195,201 | 733,035 | 3,467 | 2,548 | 2,091 | |||||||||||||||||||||
Registration fees | 12,246 | 8,890 | 7,910 | 80,152 | 5,028 | 5,028 | 54,669 | |||||||||||||||||||||
Fee waiver and/or expense reimbursement | (47,941 | ) | (8,072 | ) | — | (113,352 | ) | (4,741 | ) | (4,655 | ) | (8,351 | ) | |||||||||||||||
Distribution fee waiver | (27,670 | ) | — | (408,093 | ) | — | — | — | — |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 17 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | (8,817,656 | ) | $ | (6,212,110 | ) | ||
Net realized gain (loss) on investment and foreign currency transactions | 48,299,914 | (4,015,917 | ) | |||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 558,815,018 | 502,180,663 | ||||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 598,297,276 | 491,952,636 | ||||||
|
|
|
| |||||
Series share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 1,990,422,793 | 1,727,331,268 | ||||||
Cost of shares purchased | (460,438,863 | ) | (415,033,423 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Series share transactions | 1,529,983,930 | 1,312,297,845 | ||||||
|
|
|
| |||||
Total increase (decrease) | 2,128,281,206 | 1,804,250,481 | ||||||
Net Assets: | ||||||||
Beginning of period | 2,428,324,378 | 624,073,897 | ||||||
|
|
|
| |||||
End of period | $ | 4,556,605,584 | $ | 2,428,324,378 | ||||
|
|
|
|
See Notes to Financial Statements.
18 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company and currently consists of seven series: PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Jennison Global Infrastructure Fund, PGIM Jennison Global Opportunities Fund, PGIM Jennison International Opportunities Fund, PGIM QMA International Equity Fund and PGIM Emerging Markets Debt Hard Currency Fund, each of which are diversified funds for purposes of the 1940 Act, and PGIM Emerging Markets Debt Local Currency Fund, which is a non-diversified fund for purposes of the 1940 Act , and therefore, may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. These financial statements relate only to the PGIM Jennison International Opportunities Fund (the “Series”).
The investment objective of the Series is to seek long-term growth of capital.
2. Accounting Policies
The Series follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Series in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Series’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The Fund’s Board of Directors (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
PGIM Jennison International Opportunities Fund | 19 |
Notes to Financial Statements (unaudited) (continued)
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Series’ foreign investments may change on days when investors cannot purchase or redeem Series shares.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Series is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be
20 |
classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value 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 the 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 Manager 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The Fund, on behalf of the Series, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Series. A master netting arrangement between the Series and the counterparty
PGIM Jennison International Opportunities Fund | 21 |
Notes to Financial Statements (unaudited) (continued)
permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Securities Lending: The Series lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral.
The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Series becomes aware of such dividends. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class
22 |
specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: The Series expects to pay dividends from net investment income and distributions from net realized capital and currency gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The Fund, on behalf of the Series, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The Manager pays for the services of Jennison.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.825% of the Series’ average daily net assets up to and including $1 billion and 0.800% of such assets in excess of $1 billion. The effective management fee rate before any waivers and/or expense reimbursements was 0.807% for the reporting period ended April 30, 2021.
The Manager has contractually agreed, through February 28, 2022, to reimburse and/or waive fees so that the Series’ net annual operating expenses of each share class does not exceed 0.84% of the Series’ average daily net assets (exclusive of distribution and service
PGIM Jennison International Opportunities Fund | 23 |
Notes to Financial Statements (unaudited) (continued)
(12b-1) fees, shareholder servicing fee, and transfer agency expenses (including sub-transfer agency and networking fees)). Separately, the Manager has contractually agreed, through February 28, 2022, to limit transfer agency, shareholder servicing, sub-transfer agency, and blue sky fees, as applicable, to the extent that such fees cause the net annual operating expenses to exceed 1.34% of average daily net assets for Class R2 shares or 1.09% of average daily net assets for Class R4 shares. Additionally, the Manager has contractually agreed, through February 28, 2022, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.09% of average daily net assets for Class A shares. Separately, the Manager has contractually agreed to waive and/or reimburse up to 0.06% of certain other expenses on an annualized basis, through February 28, 2022, to the extent that the total net annual operating expenses exceed 1.90% of average daily net assets for Class C shares, 1.48% of average daily net assets for Class R shares. 0.90% of average daily net assets for Class Z shares and 0.84% of average daily net assets for Class R6 shares. The contractual waivers and expense limitation above exclude interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Series expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for the fiscal year.
The Fund, on behalf of the Series, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class R, Class Z, Class R2, Class R4 and Class R6 shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A, Class C, Class R and Class R2 shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to 0.30%, 1%, 0.75% and 0.25% of the average daily net assets of the Class A, Class C, Class R and Class R2 shares, respectively. PIMS has contractually agreed through February 28, 2022 to limit such fees to 0.25% and 0.50% of the average daily net assets of the Class A and Class R shares, respectively. The distribution
24 |
fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z, Class R4 and Class R6 shares of the Series.
The Series has adopted a Shareholder Services Plan with respect to Class R2 and Class R4 shares. Under the terms of the Shareholder Services Plan, Class R2 and Class R4 shares are authorized to pay to Prudential Mutual Fund Services LLC (“PMFS”), its affiliates or third-party service providers, as compensation for services rendered to the shareholders of such Class R2 or Class R4 shares, a shareholder service fee at an annual rate of up to 0.10% of the average daily net assets attributable to Class R2 and Class R4 shares. The shareholder service fee is accrued daily and paid monthly, as applicable.
For the reporting period ended April 30, 2021, PIMS received $576,171 in front-end sales charges resulting from sales of Class A shares. Additionally, for the reporting period ended April 30, 2021, PIMS received $3,264 and $1,008 in contingent deferred sales charges imposed upon redemptions by certain Class A and Class C shareholders, respectively. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs.
PGIM Investments, PIMS, PMFS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
PMFS serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2021, no 17a-7 transactions were entered into by the Series.
PGIM Jennison International Opportunities Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2021, were $2,368,422,945 and $767,376,000, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2021, is presented as follows:
Value, Period | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wa) | ||||||||||||||||||||||||||||||
$ | 103,564,166 | $ | 853,928,032 | $ | 902,221,561 | $ | — | $ | — | $ | 55,270,637 | 55,270,637 | $ | 64,209 | ||||||||||||||||
PGIM Institutional Money Market Fund (1)(b)(wa) | ||||||||||||||||||||||||||||||
39,573,646 | 268,293,573 | 194,155,914 | (73,167 | ) | 67,055 | 113,705,193 | 113,762,074 | 19,285 | (2) | |||||||||||||||||||||
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|
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|
|
|
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|
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| |||||||||||||||||
$ | 143,137,812 | $ | 1,122,221,605 | $ | 1,096,377,475 | $ | (73,167 | ) | $ | 67,055 | $ | 168,975,830 | $ | 83,494 | ||||||||||||||||
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|
|
|
|
|
|
|
|
|
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of April 30, 2021 were as follows:
Tax Basis | $ | 3,512,274,663 | ||||||
|
| |||||||
Gross Unrealized Appreciation | 1,253,765,752 | |||||||
Gross Unrealized Depreciation | (89,049,427 | ) | ||||||
|
| |||||||
Net Unrealized Appreciation | $ | 1,164,716,325 | ||||||
|
|
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Series had a capital loss carryforward as of October 31, 2020 of approximately $22,985,000 which can be carried forward for an unlimited period. The Series utilized approximately $3,278,000 of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended October 31, 2020. No capital gains
26 |
distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Series’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2020 are subject to such review.
7. Capital and Ownership
The Series offers Class A, Class C, Class R, Class Z, Class R2, Class R4 and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class R, Class Z, Class R2, Class R4 and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock, below.
The Fund is authorized to issue 5.075 billion shares of common stock, $0.01 par value per share, 900 million of which are designated as shares of the Series. The shares are currently classified and designated as follows:
Class A | 50,000,000 | |||
Class C | 50,000,000 | |||
Class R | 150,000,000 | |||
Class Z | 175,000,000 | |||
Class T | 125,000,000 | |||
Class R2 | 75,000,000 | |||
Class R4 | 75,000,000 | |||
Class R6 | 200,000,000 |
The Series currently does not have any Class T shares outstanding.
PGIM Jennison International Opportunities Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
As of April 30, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Series as follows:
Number of Shares | Percentage of Outstanding Shares | |||
Class C | 180 | 0.1% | ||
Class R | 10,228,123 | 99.9% | ||
Class R2 | 662 | 0.2% | ||
Class R4 | 9,764 | 2.6% | ||
Class R6 | 160,974 | 0.4% |
At the reporting period end, the number of shareholders holding greater than 5% of the Series are as follows:
Affiliated | Unaffiliated | |||||
Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | |||
1 | 7.8% | 5 | 71.4% |
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 1,804,800 | $ | 59,351,660 | |||||
Shares purchased | (333,076 | ) | (10,966,155 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,471,724 | 48,385,505 | ||||||
Shares issued upon conversion from other share class(es) | 122,006 | 4,024,321 | ||||||
Shares purchased upon conversion into other share class(es) | (59,477 | ) | (1,958,171 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,534,253 | $ | 50,451,655 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 1,695,560 | $ | 40,214,421 | |||||
Shares purchased | (420,360 | ) | (9,438,204 | ) | ||||
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|
| |||||
Net increase (decrease) in shares outstanding before conversion | 1,275,200 | 30,776,217 | ||||||
Shares issued upon conversion from other share class(es) | 95,713 | 2,224,143 | ||||||
Shares purchased upon conversion into other share class(es) | (38,524 | ) | (927,812 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,332,389 | $ | 32,072,548 | |||||
|
|
|
|
28 |
Class C | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 388,539 | $ | 11,975,013 | |||||
Shares purchased | (37,207 | ) | (1,136,249 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 351,332 | 10,838,764 | ||||||
Shares purchased upon conversion into other share class(es) | (86,537 | ) | (2,646,157 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 264,795 | $ | 8,192,607 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 410,402 | $ | 9,190,379 | |||||
Shares purchased | (62,287 | ) | (1,217,976 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 348,115 | 7,972,403 | ||||||
Shares purchased upon conversion into other share class(es) | (13,404 | ) | (290,342 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 334,711 | $ | 7,682,061 | |||||
|
|
|
| |||||
Class R | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 691,790 | $ | 22,022,546 | |||||
Shares purchased | (865,747 | ) | (28,129,311 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (173,957 | ) | $ | (6,106,765 | ) | |||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 378,910 | $ | 7,835,637 | |||||
Shares purchased | (4,361,022 | ) | (97,013,298 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (3,982,112 | ) | $ | (89,177,661 | ) | |||
|
|
|
| |||||
Class Z | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 34,417,257 | $ | 1,148,165,431 | |||||
Shares purchased | (8,587,769 | ) | (285,130,475 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 25,829,488 | 863,034,956 | ||||||
Shares issued upon conversion from other share class(es) | 124,596 | 4,118,289 | ||||||
Shares purchased upon conversion into other share class(es) | (117,333 | ) | (3,911,566 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 25,836,751 | $ | 863,241,679 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 47,468,230 | $ | 1,144,158,328 | |||||
Shares purchased | (10,173,878 | ) | (246,291,300 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 37,294,352 | 897,867,028 | ||||||
Shares issued upon conversion from other share class(es) | 44,259 | 1,069,933 | ||||||
Shares purchased upon conversion into other share class(es) | (99,914 | ) | (2,358,141 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 37,238,697 | $ | 896,578,820 | |||||
|
|
|
| |||||
Class R2 | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 175,061 | $ | 5,762,287 | |||||
Shares purchased | (40,672 | ) | (1,370,559 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 134,389 | $ | 4,391,728 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 163,996 | $ | 4,301,050 | |||||
Shares purchased | (11,299 | ) | (312,729 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 152,697 | $ | 3,988,321 | |||||
|
|
|
|
PGIM Jennison International Opportunities Fund | 29 |
Notes to Financial Statements (unaudited) (continued)
Class R4 | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 614,341 | $ | 20,312,643 | |||||
Shares purchased | (292,727 | ) | (9,689,677 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 321,614 | $ | 10,622,966 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 11,923 | $ | 287,951 | |||||
Shares purchased | (7,067 | ) | (150,270 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 4,856 | $ | 137,681 | |||||
|
|
|
| |||||
Class R6 | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 21,753,764 | $ | 722,833,213 | |||||
Shares purchased | (3,668,934 | ) | (124,016,437 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 18,084,830 | 598,816,776 | ||||||
Shares issued upon conversion from other share class(es) | 10,810 | 373,284 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 18,095,640 | $ | 599,190,060 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 20,878,982 | $ | 521,343,502 | |||||
Shares purchased | (2,482,915 | ) | (60,609,646 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 18,396,067 | 460,733,856 | ||||||
Shares issued upon conversion from other share class(es) | 13,891 | 331,285 | ||||||
Shares purchased upon conversion into other share class(es) | (2,198 | ) | (49,066 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 18,407,760 | $ | 461,016,075 | |||||
|
|
|
|
8. Borrowings
The Fund, on behalf of the Series, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/2/2020 – 9/30/2021 | |
Total Commitment | $ 1,200,000,000 | |
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | |
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large
30 |
scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Series did not utilize the SCA during the reporting period ended April 30, 2021.
9. Risks of Investing in the Series
The Series’ risks include, but are not limited to, some or all of the risks discussed below. For further information on the Series’ risks, please refer to the Series’ Prospectus and Statement of Additional Information.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-US investors, or that prevent non-US investors from withdrawing their money at will. Countries with emerging markets can be found in regions such as Asia, Latin America, Eastern Europe and Africa.
The Series may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Series invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-US issuers (including those denominated in US dollars) generally involve more risk than investing in securities of US issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the US. Foreign legal systems generally have fewer regulatory requirements than the US legal system. In general, less information is publicly available about non-US companies than about US companies. Non-US companies generally are not subject to the same accounting, auditing, and financial reporting standards as are US companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Series holds and the Series’ performance. Certain foreign countries may impose
PGIM Jennison International Opportunities Fund | 31 |
Notes to Financial Statements (unaudited) (continued)
restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines. In addition, the Series’ investments in non-US securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-US currency, confiscatory taxation and adverse diplomatic developments. Special US tax considerations may apply.
Investments in China Risk: Investments in China subject a Series to risks specific to China and may make it more volatile than other funds. Over the last few decades, the Chinese government has undertaken reform of economic and market practices and has expanded the sphere of private ownership of property in China. However, Chinese markets generally continue to experience inefficiency, volatility and pricing anomalies resulting from governmental influence, a lack of publicly available information and/or political and social instability. Internal social unrest or confrontations with other neighboring countries, including military conflicts in response to such events, may also disrupt economic development in China and result in a greater risk of currency fluctuations, currency non-convertibility, interest rate fluctuations and higher rates of inflation.
China has experienced security concerns, such as terrorism and strained international relations. Incidents involving China’s or the region’s security may cause uncertainty in Chinese markets and may adversely affect the Chinese economy and the Series’ investments. Export growth continues to be a major driver of China’s rapid economic growth. Reduction in spending on Chinese products and services, institution of additional tariffs or other trade barriers, including as a result of heightened trade tensions between China and the U.S., or a downturn in any of the economies of China’s key trading partners may have an adverse impact on the Chinese economy. Chinese companies, including Chinese companies that are listed on U.S. exchanges, are not subject to the same degree of regulatory requirements, accounting standards or auditor oversight as companies in more developed countries, and as a result, information about the Chinese securities in which the Series invests may be less reliable or complete. There may be significant obstacles to obtaining information necessary for investigations into or litigation against Chinese companies and shareholders may have limited legal remedies.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Series’ shares. There is no requirement that these entities maintain their investment in the Series. There is a risk that such large shareholders or that the Series’ shareholders generally may redeem all or a substantial portion of their investments in the Series in a short period of time, which could have a significant negative impact on the Series’ NAV, liquidity, and brokerage costs.
32 |
Large redemptions could also result in tax consequences to shareholders and impact the Series’ ability to implement its investment strategy. The Series’ ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Series may invest a larger portion of its assets in cash or cash equivalents.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Series’ investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Series invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Series’ securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Series fall, the value of your investment in the Series will decline.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Series.
PGIM Jennison International Opportunities Fund | 33 |
Financial Highlights (unaudited)
Class A Shares
| ||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $28.14 | $19.51 | $15.82 | $17.10 | $12.36 | $13.09 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.10 | ) | (0.12 | ) | 0.01 | (0.06 | ) | (0.01 | ) | 0.02 | ||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 6.20 | 8.75 | 3.68 | (1.22 | ) | 4.75 | (0.75 | ) | ||||||||||||||||||||
Total from investment operations | 6.10 | 8.63 | 3.69 | (1.28 | ) | 4.74 | (0.73 | ) | ||||||||||||||||||||
Net asset value, end of period | $34.24 | $28.14 | $19.51 | $15.82 | $17.10 | $12.36 | ||||||||||||||||||||||
Total Return(b): | 21.69 | % | 44.11 | % | 23.39 | % | (7.49 | )% | 38.35 | % | (5.58 | )% | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $145,117 | $76,093 | $26,778 | $14,496 | $5,303 | $2,918 | ||||||||||||||||||||||
Average net assets (000) | $111,595 | $46,059 | $20,599 | $10,393 | $3,121 | $3,575 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.09 | %(e) | 1.09 | % | 1.09 | % | 1.13 | % | 1.15 | % | 1.15 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.23 | %(e) | 1.34 | % | 1.46 | % | 1.55 | % | 1.63 | % | 1.74 | % | ||||||||||||||||
Net investment income (loss) | (0.64 | )%(e) | (0.52 | )% | 0.04 | % | (0.32 | )% | (0.07 | )% | 0.15 | % | ||||||||||||||||
Portfolio turnover rate(f) | 22 | % | 43 | % | 53 | % | 59 | % | 69 | % | 65 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
34 |
Class C Shares
| ||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $26.38 | $18.44 | $15.08 | $16.43 | $11.96 | $12.77 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.22 | ) | (0.29 | ) | (0.13 | ) | (0.18 | ) | (0.11 | ) | (0.08 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 5.81 | 8.23 | 3.49 | (1.17 | ) | 4.58 | (0.73 | ) | ||||||||||||||||||||
Total from investment operations | 5.59 | 7.94 | 3.36 | (1.35 | ) | 4.47 | (0.81 | ) | ||||||||||||||||||||
Net asset value, end of period | $31.97 | $26.38 | $18.44 | $15.08 | $16.43 | $11.96 | ||||||||||||||||||||||
Total Return(b): | 21.20 | % | 43.00 | % | 22.28 | % | (8.22) | % | 37.37 | % | (6.34) | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $28,354 | $16,411 | $5,302 | $3,800 | $1,759 | $779 | ||||||||||||||||||||||
Average net assets (000) | $23,581 | $9,894 | $4,683 | $3,449 | $1,080 | $895 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.90 | %(e) | 1.90 | % | 1.91 | % | 1.92 | % | 1.89 | % | 1.90 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.97 | %(e) | 2.15 | % | 2.33 | % | 2.54 | % | 2.32 | % | 2.44 | % | ||||||||||||||||
Net investment income (loss) | (1.47 | )%(e) | (1.32 | )% | (0.80 | )% | (1.05 | )% | (0.80 | )% | (0.67 | )% | ||||||||||||||||
Portfolio turnover rate(f) | 22 | % | 43 | % | 53 | % | 59 | % | 69 | % | 65 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 35 |
Financial Highlights (unaudited) (continued)
Class R Shares
| ||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | November 20, 2017(a) 2018 | ||||||||||||||||||||||
2021 | 2020 | 2019 | ||||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $27.98 | $19.48 | $15.86 | $17.62 | ||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | (0.17 | ) | (0.20 | ) | (0.06 | ) | (0.09 | ) | ||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 6.18 | 8.70 | 3.68 | (1.67 | ) | |||||||||||||||||||
Total from investment operations | 6.01 | 8.50 | 3.62 | (1.76 | ) | |||||||||||||||||||
Net asset value, end of period | $33.99 | $27.98 | $19.48 | $15.86 | ||||||||||||||||||||
Total Return(c): | 21.48 | % | 43.56 | % | 22.89 | % | (9.99 | )% | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $347,731 | $291,162 | $280,311 | $266,294 | ||||||||||||||||||||
Average net assets (000) | $329,180 | $281,238 | $278,086 | $299,955 | ||||||||||||||||||||
Ratios to average net assets(d): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.46 | %(e) | 1.47 | % | 1.47 | % | 1.46 | %(e) | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.71 | %(e) | 1.77 | % | 1.81 | % | 1.80 | %(e) | ||||||||||||||||
Net investment income (loss) | (1.03 | )%(e) | (0.87) | % | (0.36) | % | (0.53 | )%(e) | ||||||||||||||||
Portfolio turnover rate(f) | 22 | % | 43 | % | 53 | % | 59 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
36 |
Class Z Shares
| ||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $28.56 | $19.77 | $16.01 | $17.29 | $12.50 | $13.20 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | (0.07 | ) | (0.10 | ) | 0.03 | (0.01 | ) | 0.03 | 0.03 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 6.29 | 8.89 | 3.74 | (1.24 | ) | 4.79 | (0.73 | ) | ||||||||||||||||||||
Total from investment operations | 6.22 | 8.79 | 3.77 | (1.25 | ) | 4.82 | (0.70 | ) | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | - | - | (0.01) | (0.03 | ) | (0.03 | ) | - | ||||||||||||||||||||
Net asset value, end of period | $34.78 | $28.56 | $19.77 | $16.01 | $17.29 | $12.50 | ||||||||||||||||||||||
Total Return(b) : | 21.78 | % | 44.46 | % | 23.56 | % | (7.24) | % | 38.65 | % | (5.30) | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $2,561,106 | $1,364,899 | $208,629 | $104,113 | $28,612 | $18,667 | ||||||||||||||||||||||
Average net assets (000) | $2,043,368 | $639,223 | $139,982 | $75,711 | $21,756 | $23,274 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.90 | %(e) | 0.90 | % | 0.90 | % | 0.89 | % | 0.89 | % | 0.90 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.91 | %(e) | 0.99 | % | 1.04 | % | 1.04 | % | 1.34 | % | 1.41 | % | ||||||||||||||||
Net investment income (loss) | (0.45) | %(e) | (0.38 | )% | 0.15 | % | (0.08) | % | 0.23 | % | 0.25 | % | ||||||||||||||||
Portfolio turnover rate(f) | 22% | 43% | 53% | 59% | 69% | 65% |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 37 |
Financial Highlights (unaudited) (continued)
Class R2 Shares
| ||||||||||||
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | December 27, 2018(a) through October 31, 2019 | ||||||||||
Per Share Operating Performance(b): | ||||||||||||
Net Asset Value, Beginning of Period | $28.35 | $19.70 | $15.10 | |||||||||
Income (loss) from investment operations: | ||||||||||||
Net investment income (loss) | (0.12 | ) | (0.29 | ) | (0.12 | ) | ||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 6.23 | 8.94 | 4.72 | |||||||||
Total from investment operations | 6.11 | 8.65 | 4.60 | |||||||||
Net asset value, end of period | $34.46 | $28.35 | $19.70 | |||||||||
Total Return(c): | 21.55 | % | 43.91 | % | 30.46 | % | ||||||
Ratios/Supplemental Data: | ||||||||||||
Net assets, end of period (000) | $10,301 | $4,664 | $233 | |||||||||
Average net assets (000) | $6,340 | $1,557 | $44 | |||||||||
Ratios to average net assets(d): | ||||||||||||
Expenses after waivers and/or expense reimbursement | 1.28 | %(e) | 1.32 | % | 1.26 | %(e) | ||||||
Expenses before waivers and/or expense reimbursement | 1.43 | %(e) | 2.23 | % | 64.97 | %(e) | ||||||
Net investment income (loss) | (0.75 | )%(e) | (1.06 | )% | (0.76 | )%(e) | ||||||
Portfolio turnover rate(f) | 22% | 43% | 53% |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
38 |
Class R4 Shares
| |||||||||||||||||
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | December 27, 2018(a) through October 31, 2019 | |||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||
Net Asset Value, Beginning of Period | $28.49 | $19.75 | $15.10 | ||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||
Net investment income (loss) | (0.08 | ) | (0.11 | ) | (0.02 | ) | |||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 6.27 | 8.85 | 4.67 | ||||||||||||||
Total from investment operations | 6.19 | 8.74 | 4.65 | ||||||||||||||
Net asset value, end of period | $34.68 | $28.49 | $19.75 | ||||||||||||||
Total Return(c): | 21.77 | % | 44.20 | % | 30.79 | % | |||||||||||
Ratios/Supplemental Data: | |||||||||||||||||
Net assets, end of period (000) | $12,808 | $1,359 | $846 | ||||||||||||||
Average net assets (000) | $8,325 | $1,023 | $293 | ||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.98 | %(e) | 1.04 | % | 0.95 | %(e) | |||||||||||
Expenses before waivers and/or expense reimbursement | 1.09 | %(e) | 2.47 | % | 10.65 | %(e) | |||||||||||
Net investment income (loss) | (0.48 | )%(e) | (0.46 | )% | (0.11 | )%(e) | |||||||||||
Portfolio turnover rate(f) | 22 | % | 43 | % | 53 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison International Opportunities Fund | 39 |
Financial Highlights (unaudited) (continued)
Class R6 Shares
| |||||||||||||||||||||||||||||||||
Six Months Ended April 30, | Year Ended October 31, | December 23, 2015(a) 2016 | |||||||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | |||||||||||||||||||||||||||||
Per Share Operating Performance(b): |
| ||||||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $28.59 | $19.78 | $16.02 | $17.29 | $12.50 | $13.25 | |||||||||||||||||||||||||||
Income (loss) from investment operations: |
| ||||||||||||||||||||||||||||||||
Net investment income (loss) | (0.06 | ) | (0.08 | ) | 0.04 | (0.01 | ) | 0.04 | 0.06 | ||||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 6.31 | 8.89 | 3.74 | (1.22 | ) | 4.79 | (0.81 | ) | |||||||||||||||||||||||||
Total from investment operations | 6.25 | 8.81 | 3.78 | (1.23 | ) | 4.83 | (0.75 | ) | |||||||||||||||||||||||||
Less Dividends and Distributions: |
| ||||||||||||||||||||||||||||||||
Dividends from net investment income | - | - | (0.02 | ) | (0.04 | ) | (0.04 | ) | - | ||||||||||||||||||||||||
Net asset value, end of period | $34.84 | $28.59 | $19.78 | $16.02 | $17.29 | $12.50 | |||||||||||||||||||||||||||
Total Return(c) : | 21.83 | % | 44.54 | % | 23.72 | % | (7.15 | )% | 38.75 | % | (5.66 | )% | |||||||||||||||||||||
Ratios/Supplemental Data: | |||||||||||||||||||||||||||||||||
Net assets, end of period (000) | $1,451,188 | $673,736 | $101,975 | $35,141 | $26,252 | $23,073 | |||||||||||||||||||||||||||
Average net assets (000) | $1,074,452 | $295,968 | $54,900 | $26,736 | $24,927 | $23,677 | |||||||||||||||||||||||||||
Ratios to average net assets(d)(e): | |||||||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.84 | %(f) | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | % | 0.84 | %(f) | |||||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.84 | %(f) | 0.91 | % | 0.98 | % | 1.00 | % | 1.30 | % | 1.43 | %(f) | |||||||||||||||||||||
Net investment income (loss) | (0.38 | )%(f) | (0.32 | )% | 0.20 | % | (0.05 | )% | 0.28 | % | 0.60 | %(f) | |||||||||||||||||||||
Portfolio turnover rate(g) | 22 | % | 43 | % | 53 | % | 59 | % | 69 | % | 65 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
40 |
Series Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Series has adopted and implemented a liquidity risk management program (the “LRMP”). The Series’ LRMP seeks to assess and manage the Series’ liquidity risk, which is defined as the risk that the Series is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Series. The Company’s Board of Directors (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Series’ investment manager, to serve as the administrator of the Series’ LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Series’ LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Series’ LRMP includes no less than annual assessments of factors that influence the Series’ liquidity risk; no less than monthly classifications of the Series’ investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Series’ assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Series does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 2-5, 2021, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Series’ LRMP, including any material changes to the LRMP for the period from January 1, 2020 through December 31, 2020 (“Reporting Period”). The LRMP Report concluded that the Series’ LRMP was reasonably designed to assess and manage the Series’ liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Series’ investment strategies continue to be appropriate given the Series’ status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Series, including liquidity risks presented by the Series’ investment portfolio, is found in the Series’ Prospectus and Statement of Additional Information.
PGIM Jennison International Opportunities Fund | 41 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
|
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Jennison International Opportunities Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM JENNISON INTERNATIONAL OPPORTUNITIES FUND
SHARE CLASS | A | C | R | Z | R2 | R4 | R6 | |||||||
NASDAQ | PWJAX | PWJCX | PWJRX | PWJZX | PWJBX | PWJDX | PWJQX | |||||||
CUSIP | 743969677 | 743969669 | 743969487 | 743969651 | 743969412 | 743969396 | 743969586 |
MF215E2
PGIM JENNISON GLOBAL INFRASTRUCTURE FUND
SEMIANNUAL REPORT
APRIL 30, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
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4 | ||||
7 | ||||
9 |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2021 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates LLC is a registered investment adviser. Both are Prudential Financial companies. © 2021 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM, and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM Jennison Global Infrastructure Fund informative and useful. The report covers performance for the six-month period ended April 30, 2021.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Jennison Global Infrastructure Fund
June 15, 2021
PGIM Jennison Global Infrastructure Fund | 3 |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
(without sales charges) | Average Annual Total Returns as of 4/30/21 (with sales charges) | |||||||
Six Months* (%) | One Year (%) | Five Years (%) | Since Inception (%) | |||||
Class A | 14.68 | 15.29 | 6.75 | 6.69 (9/25/13) | ||||
Class C | 14.26 | 20.04 | 7.16 | 6.67 (9/25/13) | ||||
Class Z | 14.85 | 22.46 | 8.30 | 7.78 (9/25/13) | ||||
Class R6 | 14.86 | 22.38 | N/A | 9.43 (12/28/16) | ||||
S&P Global Infrastructure Index | ||||||||
23.58 | 28.66 | 6.05 | — | |||||
S&P 500 Index | ||||||||
28.85 | 45.96 | 17.41 | — |
Average Annual Total Returns as of 4/30/21 Since Inception (%) | ||||
Class A, C, Z (9/25/13) | Class R6 (12/28/16) | |||
S&P Global Infrastructure Index | 5.75 | 6.90 | ||
S&P 500 Index | 15.02 | 17.72 |
*Not annualized
Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Indexes are measured from the closest month-end to the class’ inception date.
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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 5.50% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.30% (0.25% currently) | 1.00% | None | None |
Benchmark Definitions
S&P Global Infrastructure Index—The S&P Global Infrastructure Index is an unmanaged index that consists of 75 companies from around the world that represent the listed infrastructure universe. To create diversified exposure across the global listed infrastructure market, the Index has balanced weights across three distinct infrastructure clusters: Utilities, Transportation, and Energy.
S&P 500 Index*—The S&P 500 Index is an unmanaged index of over 500 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.
Investors cannot invest directly in an index. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
*The S&P 500 Index (“Index”) is a product of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for use by PGIM, Inc. and/or its affiliates. Copyright © 2021 S&P Dow Jones Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All rights reserved. Redistribution or reproduction in whole or in part are prohibited without written permission of S&P Dow Jones Indices LLC. For more information on any of S&P Dow Jones Indices LLC’s indices please visit www.spdji.com. S&P® is a registered trademark of S&P Global and Dow Jones® is a registered trademark of Dow Jones Trademark Holdings LLC.
PGIM Jennison Global Infrastructure Fund | 5 |
Your Fund’s Performance (continued)
Presentation of Fund Holdings as of 4/30/21
Ten Largest Holdings | Line of Business | Country | % of Net Assets | |||
NextEra Energy, Inc. | Electric Utilities | United States | 4.7% | |||
Cellnex Telecom SA, 144A | Diversified Telecommunication Services | Spain | 4.3% | |||
Norfolk Southern Corp. | Road & Rail | United States | 3.9% | |||
Eiffage SA | Construction & Engineering | France | 3.7% | |||
Cheniere Energy, Inc. | Oil, Gas & Consumable Fuels | United States | 3.6% | |||
Targa Resources Corp. | Oil, Gas & Consumable Fuels | United States | 3.5% | |||
Union Pacific Corp. | Road & Rail | United States | 3.4% | |||
Vinci SA | Construction & Engineering | France | 3.1% | |||
Enel SpA | Electric Utilities | Italy | 2.8% | |||
Ferrovial SA | Construction & Engineering | Spain | 2.8% |
Holdings reflect only long-term investments and are subject to change.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2021. The example is for illustrative purposes only; you should consult the Fund’s Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period
PGIM Jennison Global Infrastructure Fund | 7 |
Fees and Expenses (continued)
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Jennison Global Infrastructure Fund | Beginning Account Value November 1, 2020 | Ending Account Value April 30, 2021 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,146.80 | 1.50 | % | $ | 7.98 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,017.36 | 1.50 | % | $ | 7.50 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,142.60 | 2.25 | % | $ | 11.95 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,013.64 | 2.25 | % | $ | 11.23 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,148.50 | 1.17 | % | $ | 6.23 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.99 | 1.17 | % | $ | 5.86 | ||||||||||
Class R6 | Actual | $ | 1,000.00 | $ | 1,148.60 | 1.17 | % | $ | 6.23 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,018.99 | 1.17 | % | $ | 5.86 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2021, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2021
Description | Shares | Value | ||||||
LONG-TERM INVESTMENTS 94.0% | ||||||||
COMMON STOCKS 89.6% | ||||||||
Australia 7.4% | ||||||||
APA Group | 56,586 | $ | 438,375 | |||||
Atlas Arteria Ltd. | 198,451 | 922,438 | ||||||
Spark Infrastructure Group | 349,856 | 591,442 | ||||||
Sydney Airport* | 154,623 | 736,495 | ||||||
Transurban Group | 82,697 | 905,285 | ||||||
|
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3,594,035 | ||||||||
Canada 5.3% | ||||||||
Canadian National Railway Co. | 8,672 | 933,626 | ||||||
Enbridge, Inc. | 18,449 | 711,603 | ||||||
Pembina Pipeline Corp. | 15,280 | 471,646 | ||||||
TC Energy Corp. | 9,654 | 477,614 | ||||||
|
| |||||||
2,594,489 | ||||||||
China 1.6% | ||||||||
China Longyuan Power Group Corp. Ltd. (Class H Stock) | 355,247 | 524,531 | ||||||
Jiangsu Expressway Co. Ltd. (Class H Stock) | 197,558 | 233,073 | ||||||
|
| |||||||
757,604 | ||||||||
Denmark 1.4% | ||||||||
Orsted A/S, 144A | 4,632 | 675,649 | ||||||
France 9.1% | ||||||||
Eiffage SA* | 16,759 | 1,830,730 | ||||||
Engie SA* | 43,528 | 647,782 | ||||||
Getlink SE* | 29,688 | 471,660 | ||||||
Vinci SA | 13,811 | 1,515,023 | ||||||
|
| |||||||
4,465,195 | ||||||||
Germany 2.3% | ||||||||
RWE AG | 30,156 | 1,144,649 | ||||||
Italy 3.8% | ||||||||
Atlantia SpA* | 24,451 | 479,908 | ||||||
Enel SpA | 137,740 | 1,372,981 | ||||||
|
| |||||||
1,852,889 |
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 9 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Shares | Value | ||||||
COMMON STOCKS (Continued) | ||||||||
Mexico 2.1% | ||||||||
Grupo Aeroportuario del Pacifico SAB de CV (Class B Stock)* | 55,976 | $ | 576,229 | |||||
Grupo Aeroportuario del Sureste SAB de CV (Class B Stock)* | 25,833 | 437,466 | ||||||
|
| |||||||
1,013,695 | ||||||||
Spain 12.9% | ||||||||
Aena SME SA, 144A* | 6,389 | 1,111,088 | ||||||
Cellnex Telecom SA, 144A | 37,339 | 2,110,250 | ||||||
EDP Renovaveis SA* | 32,462 | 774,774 | ||||||
Ferrovial SA | 47,352 | 1,344,830 | ||||||
Iberdrola SA | 69,865 | 944,206 | ||||||
|
| |||||||
6,285,148 | ||||||||
United States 43.7% | ||||||||
American Tower Corp., REIT | 1,894 | 482,534 | ||||||
American Water Works Co., Inc. | 5,601 | 873,700 | ||||||
Cheniere Energy, Inc.* | 22,628 | 1,754,123 | ||||||
Dominion Energy, Inc. | 14,723 | 1,176,368 | ||||||
Edison International | 14,741 | 876,352 | ||||||
Equinix, Inc., REIT | 661 | 476,422 | ||||||
Essential Utilities, Inc. | 14,825 | 698,702 | ||||||
Eversource Energy | 10,271 | 885,566 | ||||||
Kansas City Southern | 2,624 | 766,759 | ||||||
NextEra Energy Partners LP | 8,593 | 640,608 | ||||||
NextEra Energy, Inc. | 29,668 | 2,299,567 | ||||||
Norfolk Southern Corp. | 6,853 | 1,913,632 | ||||||
ONEOK, Inc. | 8,994 | 470,746 | ||||||
PG&E Corp.* | 77,323 | 875,296 | ||||||
Public Service Enterprise Group, Inc. | 11,877 | 750,151 | ||||||
SBA Communications Corp., REIT | 1,617 | 484,647 | ||||||
Sempra Energy | 6,571 | 903,973 | ||||||
Targa Resources Corp. | 49,324 | 1,711,050 | ||||||
Union Pacific Corp. | 7,388 | 1,640,801 | ||||||
Waste Connections, Inc. | 4,422 | 526,704 | ||||||
Williams Cos., Inc. (The) | 46,575 | 1,134,567 | ||||||
|
| |||||||
21,342,268 | ||||||||
|
| |||||||
TOTAL COMMON STOCKS | 43,725,621 | |||||||
|
|
See Notes to Financial Statements.
10 |
Description | Shares | Value | ||||||
PREFERRED STOCKS 4.4% | ||||||||
Canada 2.2% | ||||||||
GFL Environmental, Inc., CVT, 6.000%, Maturing 03/15/23 | 13,990 | $ | 1,071,214 | |||||
United States 2.2% | ||||||||
AES Corp. (The), CVT, 6.875%, Maturing 02/15/24* | 4,319 | 470,728 | ||||||
NextEra Energy, Inc., CVT, 6.219%, Maturing 09/01/23 | 12,590 | 635,417 | ||||||
|
| |||||||
1,106,145 | ||||||||
|
| |||||||
TOTAL PREFERRED STOCKS | 2,177,359 | |||||||
|
| |||||||
TOTAL LONG-TERM INVESTMENTS | 45,902,980 | |||||||
|
| |||||||
SHORT-TERM INVESTMENT 3.4% | ||||||||
AFFILIATED MUTUAL FUND | ||||||||
PGIM Core Ultra Short Bond Fund | 1,642,499 | 1,642,499 | ||||||
|
| |||||||
TOTAL INVESTMENTS 97.4% | 47,545,479 | |||||||
Other assets in excess of liabilities 2.6% | 1,261,552 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 48,807,031 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
CVT—Convertible Security
LIBOR—London Interbank Offered Rate
LP—Limited Partnership
REITs—Real Estate Investment Trust
* | Non-income producing security. |
(wb) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund. |
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 11 |
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
The following is a summary of the inputs used as of April 30, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities | ||||||||||||
Assets | ||||||||||||
Common Stocks | ||||||||||||
Australia | $ | — | $ | 3,594,035 | $— | |||||||
Canada | 2,594,489 | — | — | |||||||||
China | — | 757,604 | — | |||||||||
Denmark | — | 675,649 | — | |||||||||
France | — | 4,465,195 | — | |||||||||
Germany | — | 1,144,649 | — | |||||||||
Italy | — | 1,852,889 | — | |||||||||
Mexico | 1,013,695 | — | — | |||||||||
Spain | — | 6,285,148 | — | |||||||||
United States | 21,342,268 | — | — | |||||||||
Preferred Stocks | ||||||||||||
Canada | 1,071,214 | — | — | |||||||||
United States | 1,106,145 | — | — | |||||||||
Affiliated Mutual Fund | 1,642,499 | — | — | |||||||||
|
|
|
|
|
| |||||||
Total | $ | 28,770,310 | $ | 18,775,169 | $— | |||||||
|
|
|
|
|
|
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2021 were as follows:
Electric Utilities | 18.7 | % | ||
Oil, Gas & Consumable Fuels | 13.8 | |||
Transportation Infrastructure | 12.2 | |||
Road & Rail | 10.8 | |||
Construction & Engineering | 9.6 | |||
Multi-Utilities | 9.3 | |||
Independent Power & Renewable Electricity Producers | 4.9 | |||
Diversified Telecommunication Services | 4.3 | |||
Affiliated Mutual Fund | 3.4 |
Commercial Services & Supplies | 3.3 | % | ||
Water Utilities | 3.2 | |||
Equity Real Estate Investment Trusts (REITs) | 3.0 | |||
Gas Utilities | 0.9 | |||
|
| |||
97.4 | ||||
Other assets in excess of liabilities | 2.6 | |||
|
| |||
100.0 | % | |||
|
|
See Notes to Financial Statements.
12 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $35,090,067) | $ | 45,902,980 | ||
Affiliated investments (cost $1,642,499) | 1,642,499 | |||
Foreign currency, at value (cost $4,823) | 4,827 | |||
Receivable for Series shares sold | 865,262 | |||
Receivable for investments sold | 860,056 | |||
Dividends receivable | 50,498 | |||
Tax reclaim receivable | 23,401 | |||
Prepaid expenses | 1,452 | |||
|
| |||
Total Assets | 49,350,975 | |||
|
| |||
Liabilities | ||||
Payable for investments purchased | 261,230 | |||
Payable for Series shares purchased | 186,084 | |||
Accrued expenses and other liabilities | 65,954 | |||
Management fee payable | 23,235 | |||
Distribution fee payable | 4,391 | |||
Affiliated transfer agent fee payable | 1,918 | |||
Directors’ fees payable | 1,132 | |||
|
| |||
Total Liabilities | 543,944 | |||
|
| |||
Net Assets | $ | 48,807,031 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 30,952 | ||
Paid-in capital in excess of par | 37,545,130 | |||
Total distributable earnings (loss) | 11,230,949 | |||
|
| |||
Net assets, April 30, 2021 | $ | 48,807,031 | ||
|
|
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 13 |
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Class A | ||||||||
Net asset value and redemption price per share, | $15.78 | |||||||
Maximum sales charge (5.50% of offering price) | 0.92 | |||||||
|
| |||||||
Maximum offering price to public | $16.70 | |||||||
|
| |||||||
Class C | ||||||||
Net asset value, offering price and redemption price per share, | $15.57 | |||||||
|
| |||||||
Class Z | ||||||||
Net asset value, offering price and redemption price per share, | $15.79 | |||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, | $15.78 | |||||||
|
|
See Notes to Financial Statements.
14 |
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Unaffiliated dividend income (net of $29,778 foreign withholding tax) | $ | 470,159 | ||
Affiliated dividend income | 1,016 | |||
|
| |||
Total income | 471,175 | |||
|
| |||
Expenses | ||||
Management fee | 212,635 | |||
Distribution fee(a) | 27,137 | |||
Custodian and accounting fees | 34,996 | |||
Registration fees(a) | 33,183 | |||
Transfer agent’s fees and expenses (including affiliated expense of $4,648)(a) | 23,796 | |||
Audit fee | 14,399 | |||
Legal fees and expenses | 7,822 | |||
Directors’ fees | 5,455 | |||
Shareholders’ reports | 5,280 | |||
Miscellaneous | 10,445 | |||
|
| |||
Total expenses | 375,148 | |||
Less: Fee waiver and/or expense reimbursement(a) | (95,153 | ) | ||
Distribution fee waiver(a) | (1,647 | ) | ||
|
| |||
Net expenses | 278,348 | |||
|
| |||
Net investment income (loss) | 192,827 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 1,129,667 | |||
Foreign currency transactions | (4,363 | ) | ||
|
| |||
1,125,304 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 4,154,482 | |||
Foreign currencies | (514 | ) | ||
|
| |||
4,153,968 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 5,279,272 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 5,472,099 | ||
|
|
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||
Distribution fee | 9,882 | 17,255 | — | — | ||||||||||||
Registration fees | 8,167 | 8,167 | 8,167 | 8,682 | ||||||||||||
Transfer agent’s fees and expenses | 6,007 | 2,569 | 15,186 | 34 | ||||||||||||
Fee waiver and/or expense reimbursement | (18,093 | ) | (12,799 | ) | (47,636 | ) | (16,625 | ) | ||||||||
Distribution fee waiver | (1,647 | ) | — | — | — |
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 15 |
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | |||||||
Increase (Decrease) in Net Assets | ||||||||
Operations | ||||||||
Net investment income (loss) | $ | 192,827 | $ | 446,665 | ||||
Net realized gain (loss) on investment and foreign currency transactions | 1,125,304 | 649,332 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 4,153,968 | (3,570,052 | ) | |||||
|
|
|
| |||||
Net increase (decrease) in net assets resulting from operations | 5,472,099 | (2,474,055 | ) | |||||
|
|
|
| |||||
Dividends and Distributions | ||||||||
Distributions from distributable earnings | ||||||||
Class A | (18,974 | ) | (61,847 | ) | ||||
Class C | (737 | ) | (15,905 | ) | ||||
Class Z | (110,886 | ) | (253,973 | ) | ||||
Class R6 | (40,937 | ) | (102,001 | ) | ||||
|
|
|
| |||||
(171,534 | ) | (433,726 | ) | |||||
|
|
|
| |||||
Tax return of capital distributions | ||||||||
Class A | — | (6,071 | ) | |||||
Class C | — | (1,561 | ) | |||||
Class Z | — | (24,932 | ) | |||||
Class R6 | — | (10,013 | ) | |||||
|
|
|
| |||||
— | (42,577 | ) | ||||||
|
|
|
| |||||
Series share transactions (Net of share conversions) | ||||||||
Net proceeds from shares sold | 13,761,911 | 7,990,286 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 171,269 | 473,968 | ||||||
Cost of shares purchased | (5,413,793 | ) | (16,121,559 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in net assets from Series share transactions | 8,519,387 | (7,657,305 | ) | |||||
|
|
|
| |||||
Total increase (decrease) | 13,819,952 | (10,607,663 | ) | |||||
Net Assets: | ||||||||
Beginning of period | 34,987,079 | 45,594,742 | ||||||
|
|
|
| |||||
End of period | $ | 48,807,031 | $ | 34,987,079 | ||||
|
|
|
|
See Notes to Financial Statements.
16 |
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company and currently consists of seven series: PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Jennison Global Infrastructure Fund, PGIM Jennison Global Opportunities Fund, PGIM Jennison International Opportunities Fund, PGIM QMA International Equity Fund and PGIM Emerging Markets Debt Hard Currency Fund, each of which are diversified funds for purposes of the 1940 Act, and PGIM Emerging Markets Debt Local Currency Fund, which is a non-diversified fund for purposes of the 1940 Act , and therefore, may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. These financial statements relate only to the PGIM Jennison Global Infrastructure Fund (the “Series”).
The investment objective of the Series is to seek total return.
2. Accounting Policies
The Series follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Series in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Series’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The Fund’s Board of Directors (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
PGIM Jennison Global Infrastructure Fund | 17 |
Notes to Financial Statements (unaudited) (continued)
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Series’ foreign investments may change on days when investors cannot purchase or redeem Series shares.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Foreign equities traded on foreign securities exchanges are generally valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. The models generate an evaluated adjustment factor for each security, which is applied to the local closing price to adjust it for post closing market movements up to the time the Series is valued. Utilizing that evaluated adjustment factor, the vendor provides an evaluated price for each security. If the vendor does not provide an evaluated price, securities are valued in accordance with exchange-traded common and preferred stock valuation policies discussed above.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be
18 |
classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value 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 the 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 Manager 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions.
Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Master Netting Arrangements: The Fund, on behalf of the Series, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Series. A master netting arrangement between the Series and the counterparty
PGIM Jennison Global Infrastructure Fund | 19 |
Notes to Financial Statements (unaudited) (continued)
permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
Equity and Mortgage Real Estate Investment Trusts (collectively REITs): The Series invested in REITs, which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. When material, these estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Series becomes aware of such dividends. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: The Series expects to pay dividends from net investment income quarterly. Distributions from net realized capital and currency gains, if any, are declared and paid annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from
20 |
GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The Fund, on behalf of the Series, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadviser’s performance of such services.
The Manager has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The Manager pays for the services of Jennison.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 1.00% of the Series’ average daily net assets up to $1 billion, 0.98% of the next $2 billion, 0.96% of the next $2 billion, 0.95% of the next $5 billion and 0.94% of the Series’ average daily net assets in excess of $10 billion. The effective management fee rate before any waivers and/or expense reimbursements was 1.00% for the reporting period ended April 30, 2021.
The Manager has contractually agreed, through February 28, 2022, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.50% of average daily net assets for Class A shares, 2.25% of average daily net assets for Class C shares, 1.17% of average daily net assets for Class Z shares and 1.17% of average daily net assets for Class R6 shares. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Series expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives similar expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for the fiscal year.
The Fund, on behalf of the Series, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Series. The Series compensates PIMS for distributing
PGIM Jennison Global Infrastructure Fund | 21 |
Notes to Financial Statements (unaudited) (continued)
and servicing the Series’ Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to 0.30%,and 1% of the average daily net assets of the Class A and Class C shares, respectively. PIMS has contractually agreed through February 28, 2022 to limit such fees to 0.25% of the average daily net assets of the Class A shares. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z and Class R6 shares of the Series.
For the reporting period ended April 30, 2021, PIMS received $19,076 in front-end sales charges resulting from sales of Class A shares. Additionally, for the reporting period ended April 30, 2021, PIMS did not receive any contingent deferred sales charges imposed upon redemptions by certain Class A and Class C shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs.
PGIM Investments, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund. In addition to the realized and unrealized gains on investments in the Core Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income”.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2021, no 17a-7 transactions were entered into by the Series.
22 |
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2021, were $20,268,527 and $13,710,847, respectively.
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the reporting period ended April 30, 2021, is presented as follows:
Value, | Cost of Purchases | Proceeds from Sales | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||
Short-Term Investments - Affiliated Mutual Fund: | ||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wb) | ||||||||||||||||||||
$665,468 | $14,776,317 | $13,799,286 | $— | $— | $1,642,499 | 1,642,499 | $1,016 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(wb) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund. |
6. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of April 30, 2021 were as follows:
Tax Basis | $ | 36,943,339 | ||
|
| |||
Gross Unrealized Appreciation | 10,950,955 | |||
Gross Unrealized Depreciation | (348,815 | ) | ||
|
| |||
Net Unrealized Appreciation | $ | 10,602,140 | ||
|
|
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Series had a capital loss carryforward as of October 31, 2020 of approximately $518,000, which can be carried forward for an unlimited period. The Series utilized approximately $751,000 of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended October 31, 2020. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Series’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended October 31, 2020 are subject to such review.
PGIM Jennison Global Infrastructure Fund | 23 |
Notes to Financial Statements (unaudited) (continued)
7. Capital and Ownership
The Series offers Class A, Class C, Class Z and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 5.50%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, although they are not subject to an initial sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock, below.
The Fund is authorized to issue 5.075 billion shares of common stock, with a par value of $0.01 per share, which is divided into seven series. There are 510 million shares authorized for the Series, divided into five classes as follows:
Class A | 20,000,000 | |||
Class C | 100,000,000 | |||
Class Z | 150,000,000 | |||
Class T | 115,000,000 | |||
Class R6 | 125,000,000 |
The Series currently does not have any Class T shares outstanding.
As of April 30, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Series as follows:
Number of Shares | Percentage of Outstanding Shares | |||
Class Z | 559,316 | 33.8% | ||
Class R6 | 697,386 | 93.1% |
At the reporting period end, the number of shareholders holding greater than 5% of the Series are as follows:
Affiliated | Unaffiliated | |||||
Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | |||
2 | 40.6% | 4 | 46.3% |
24 |
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 52,173 | $ | 799,029 | |||||
Shares issued in reinvestment of dividends and distributions | 1,244 | 18,930 | ||||||
Shares purchased | (34,538 | ) | (523,975 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 18,879 | 293,984 | ||||||
Shares issued upon conversion from other share class(es) | 6,631 | 101,880 | ||||||
Shares purchased upon conversion into other share class(es) | (9 | ) | (133 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 25,501 | $ | 395,731 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 40,098 | $ | 569,464 | |||||
Shares issued in reinvestment of dividends and distributions | 4,619 | 67,705 | ||||||
Shares purchased | (137,855 | ) | (1,881,572 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (93,138 | ) | (1,244,403 | ) | ||||
Shares issued upon conversion from other share class(es) | 4,972 | 68,903 | ||||||
Shares purchased upon conversion into other share class(es) | (878 | ) | (13,161 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (89,044 | ) | $ | (1,188,661 | ) | |||
|
|
|
| |||||
Class C | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 26,554 | $ | 403,147 | |||||
Shares issued in reinvestment of dividends and distributions | 44 | 652 | ||||||
Shares purchased | (17,397 | ) | (261,974 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 9,201 | 141,825 | ||||||
Shares purchased upon conversion into other share class(es) | (10,684 | ) | (161,860 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (1,483 | ) | $ | (20,035 | ) | |||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 6,868 | $ | 98,374 | |||||
Shares issued in reinvestment of dividends and distributions | 1,083 | 15,727 | ||||||
Shares purchased | (48,016 | ) | (671,692 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (40,065 | ) | (557,591 | ) | ||||
Shares purchased upon conversion into other share class(es) | (7,028 | ) | (100,339 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (47,093 | ) | $ | (657,930 | ) | |||
|
|
|
| |||||
Class Z | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 475,463 | $ | 7,201,210 | |||||
Shares issued in reinvestment of dividends and distributions | 7,260 | 110,749 | ||||||
Shares purchased | (293,550 | ) | (4,451,877 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | 189,173 | 2,860,082 | ||||||
Shares issued upon conversion from other share class(es) | 3,932 | 60,113 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 193,105 | $ | 2,920,195 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 246,053 | $ | 3,526,924 | |||||
Shares issued in reinvestment of dividends and distributions | 19,133 | 278,522 | ||||||
Shares purchased | (299,875 | ) | (4,159,893 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding before conversion | (34,689 | ) | (354,447 | ) | ||||
Shares issued upon conversion from other share class(es) | 2,853 | 44,597 | ||||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (31,836 | ) | $ | (309,850 | ) | |||
|
|
|
|
PGIM Jennison Global Infrastructure Fund | 25 |
Notes to Financial Statements (unaudited) (continued)
Class R6 | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 349,244 | $ | 5,358,525 | |||||
Shares issued in reinvestment of dividends and distributions | 2,673 | 40,938 | ||||||
Shares purchased | (11,544 | ) | (175,967 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 340,373 | $ | 5,223,496 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 261,907 | $ | 3,795,524 | |||||
Shares issued in reinvestment of dividends and distributions | 7,666 | 112,014 | ||||||
Shares purchased | (676,564 | ) | (9,408,402 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (406,991 | ) | $ | (5,500,864 | ) | |||
|
|
|
|
8. Borrowings
The Fund, on behalf of the Series, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/2/2020 – 9/30/2021 | |
Total Commitment | $ 1,200,000,000 | |
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | |
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Series utilized the SCA during the reporting period ended April 30, 2021. The average daily balance for the 6 days that the Series had loans outstanding during the period was approximately $257,333, borrowed at a weighted average interest rate of 1.41%. The maximum loan outstanding amount during the period was $285,000. At April 30, 2021, the Series did not have an outstanding loan amount.
26 |
9. Risks of Investing in the Series
The Series’ risks include, but are not limited to, some or all of the risks discussed below. For further information on the Series’ risks, please refer to the Series’ Prospectus and Statement of Additional Information.
Equity and Equity-Related Securities Risk: Equity and equity-related securities may be subject to changes in value, and their values may be more volatile than those of other asset classes. In addition to an individual security losing value, the value of the equity markets or a sector in which the Series invests could go down. Different parts of a market can react differently to adverse issuer, market, regulatory, political and economic developments.
Foreign Securities Risk: Investments in securities of non-US issuers (including those denominated in US dollars) generally involve more risk than investing in securities of US issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the US. Foreign legal systems generally have fewer regulatory requirements than the US legal system. In general, less information is publicly available about non-US companies than about US companies. Non-US companies generally are not subject to the same accounting, auditing, and financial reporting standards as are US companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Series holds and the Series’ performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines. In addition, the Series’ investments in non-US securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-US currency, confiscatory taxation and adverse diplomatic developments. Special US tax considerations may apply.
Investing in Infrastructure Companies Risk: Securities of infrastructure companies are more susceptible to adverse economic, social, political and regulatory occurrences affecting their industries. Infrastructure companies may be subject to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with capital construction programs, high leverage, costs associated with environmental and other regulations, the effects of economic slowdown, surplus capacity, insufficient supply of necessary resources, increased competition from other providers of similar services, uncertainties concerning the availability of fuel at reasonable prices, the effects of energy conservation policies and other factors. Certain infrastructure companies may operate in limited areas or have few sources of revenue.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Series’ shares. There is no requirement that these entities maintain their investment in the Series. There is a risk that such large shareholders or that the Series’ shareholders generally may redeem all
PGIM Jennison Global Infrastructure Fund | 27 |
Notes to Financial Statements (unaudited) (continued)
or a substantial portion of their investments in the Series in a short period of time, which could have a significant negative impact on the Series’ NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Series’ ability to implement its investment strategy. The Series’ ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Series may invest a larger portion of its assets in cash or cash equivalents.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Series’ investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Series invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Series’ securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Series fall, the value of your investment in the Series will decline.
10. Recent Regulatory Developments
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on
28 |
related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Series.
PGIM Jennison Global Infrastructure Fund | 29 |
Financial Highlights (unaudited)
Class A Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, 2021 | Year Ended October 31, | |||||||||||||||||||||||||||
2020 | 2019 | 2018 | 2017 | 2016 | ||||||||||||||||||||||||
Per Share Operating Performance(a): | ||||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.80 | $14.66 | $12.21 | $13.05 | $11.61 | $11.48 | ||||||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||||||
Net investment income (loss) | 0.06 | 0.14 | 0.18 | 0.16 | 0.14 | 0.09 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.96 | (0.86 | ) | 2.49 | (0.81 | ) | 1.49 | 0.21 | ||||||||||||||||||||
Total from investment operations | 2.02 | (0.72 | ) | 2.67 | (0.65 | ) | 1.63 | 0.30 | ||||||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||||||
Dividends from net investment income | (0.04 | ) | (0.12 | ) | (0.21 | ) | (0.19 | ) | (0.13 | ) | (0.08 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.02 | ) | (0.01 | ) | - | (0.06 | ) | (0.09 | ) | ||||||||||||||||||
Total dividends and distributions | (0.04 | ) | (0.14 | ) | (0.22 | ) | (0.19 | ) | (0.19 | ) | (0.17 | ) | ||||||||||||||||
Net asset value, end of period | $15.78 | $13.80 | $14.66 | $12.21 | $13.05 | $11.61 | ||||||||||||||||||||||
Total Return(b): | 14.68 | % | (4.93 | )% | 22.01 | % | (5.10 | )% | 14.15 | % | 2.62 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $7,219 | $5,961 | $7,637 | $8,073 | $11,689 | $12,277 | ||||||||||||||||||||||
Average net assets (000) | $6,643 | $6,859 | $7,718 | $10,218 | $11,433 | $16,694 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.50 | %(e) | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | 1.50 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.10 | %(e) | 2.20 | % | 2.10 | % | 2.00 | % | 1.81 | % | 1.79 | % | ||||||||||||||||
Net investment income (loss) | 0.73 | %(e) | 0.95 | % | 1.34 | % | 1.21 | % | 1.10 | % | 0.76 | % | ||||||||||||||||
Portfolio turnover rate(f) | 33 | % | 62 | % | 62 | % | 75 | % | 80 | % | 82 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
30 |
Class C Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, |
Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): |
| |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.63 | $14.51 | $12.12 | $12.97 | $11.55 | $11.42 | ||||||||||||||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||||||||||
Net investment income (loss) | - | (b) | 0.03 | 0.08 | 0.06 | 0.04 | - | (b) | ||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.94 | (0.84 | ) | 2.45 | (0.81 | ) | 1.50 | 0.21 | ||||||||||||||||||||
Total from investment operations | 1.94 | (0.81 | ) | 2.53 | (0.75 | ) | 1.54 | 0.21 | ||||||||||||||||||||
Less Dividends and Distributions: |
| |||||||||||||||||||||||||||
Dividends from net investment income | - | (b) | (0.05 | ) | (0.13 | ) | (0.10 | ) | (0.08 | ) | (0.04 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.02 | ) | (0.01 | ) | - | (0.04 | ) | (0.04 | ) | ||||||||||||||||||
Total dividends and distributions | - | (0.07 | ) | (0.14 | ) | (0.10 | ) | (0.12 | ) | (0.08 | ) | |||||||||||||||||
Net asset value, end of period | $15.57 | $13.63 | $14.51 | $12.12 | $12.97 | $11.55 | ||||||||||||||||||||||
Total Return(c): | 14.26 | % | (5.63 | )% | 21.01 | % | (5.82 | )% | 13.39 | % | 1.88 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $3,681 | $3,242 | $4,135 | $4,162 | $6,101 | $5,738 | ||||||||||||||||||||||
Average net assets (000) | $3,480 | $3,771 | $4,131 | $5,464 | $6,111 | $5,783 | ||||||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 2.25 | %(f) | 2.25 | % | 2.25 | % | 2.25 | % | 2.25 | % | 2.25 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 2.99 | %(f) | 3.05 | % | 2.90 | % | 2.81 | % | 2.51 | % | 2.49 | % | ||||||||||||||||
Net investment income (loss) | (0.01 | )%(f) | 0.21 | % | 0.59 | % | 0.48 | % | 0.34 | % | (0.02 | )% | ||||||||||||||||
Portfolio turnover rate(g) | 33 | % | 62 | % | 62 | % | 75 | % | 80 | % | 82 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Amount rounds to zero. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 31 |
Financial Highlights (unaudited) (continued)
Class Z Shares | ||||||||||||||||||||||||||||
Six Months Ended April 30, |
Year Ended October 31, | |||||||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |||||||||||||||||||||||
Per Share Operating Performance(a): |
| |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.80 | $14.66 | $12.21 | $13.06 | $11.61 | $11.47 | ||||||||||||||||||||||
Income (loss) from investment operations: |
| |||||||||||||||||||||||||||
Net investment income (loss) | 0.08 | 0.18 | 0.23 | 0.19 | 0.18 | 0.11 | ||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.98 | (0.85 | ) | 2.48 | (0.82 | ) | 1.49 | 0.23 | ||||||||||||||||||||
Total from investment operations | 2.06 | (0.67 | ) | 2.71 | (0.63 | ) | 1.67 | 0.34 | ||||||||||||||||||||
Less Dividends and Distributions: |
| |||||||||||||||||||||||||||
Dividends from net investment income | (0.07 | ) | (0.17 | ) | (0.25 | ) | (0.22 | ) | (0.14 | ) | (0.09 | ) | ||||||||||||||||
Tax return of capital distributions | - | (0.02 | ) | (0.01 | ) | - | (0.08 | ) | (0.11 | ) | ||||||||||||||||||
Total dividends and distributions | (0.07 | ) | (0.19 | ) | (0.26 | ) | (0.22 | ) | (0.22 | ) | (0.20 | ) | ||||||||||||||||
Net asset value, end of period | $15.79 | $13.80 | $14.66 | $12.21 | $13.06 | $11.61 | ||||||||||||||||||||||
Total Return(b): | 14.85 | % | (4.56 | )% | 22.30 | % | (4.94 | )% | 14.51 | % | 2.96 | % | ||||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||||||
Net assets, end of period (000) | $26,090 | $20,148 | $21,868 | $23,074 | $28,831 | $40,811 | ||||||||||||||||||||||
Average net assets (000) | $24,590 | $21,048 | $21,608 | $27,549 | $29,597 | $40,236 | ||||||||||||||||||||||
Ratios to average net assets(c)(d): | ||||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.17 | %(e) | 1.17 | % | 1.17 | % | 1.25 | % | 1.25 | % | 1.25 | % | ||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.56 | %(e) | 1.66 | % | 1.57 | % | 1.52 | % | 1.51 | % | 1.49 | % | ||||||||||||||||
Net investment income (loss) | 1.07 | %(e) | 1.25 | % | 1.66 | % | 1.45 | % | 1.49 | % | 0.94 | % | ||||||||||||||||
Portfolio turnover rate(f) | 33 | % | 62 | % | 62 | % | 75 | % | 80 | % | 82 | % |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying funds in which the Series invests. |
(d) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
32 |
Class R6 Shares | ||||||||||||||||||||||||
Six Months Ended April 30, |
Year Ended October 31, | December 28, 2016(a) through October 31, | ||||||||||||||||||||||
2021 | 2020 | 2019 | 2018 | 2017 | ||||||||||||||||||||
Per Share Operating Performance(b): | ||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $13.80 | $14.66 | $12.21 | $13.06 | $11.39 | |||||||||||||||||||
Income (loss) from investment operations: | ||||||||||||||||||||||||
Net investment income (loss) | 0.07 | 0.18 | 0.23 | 0.18 | 0.11 | |||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.98 | (0.85 | ) | 2.48 | (0.81 | ) | 1.71 | |||||||||||||||||
Total from investment operations | 2.05 | (0.67 | ) | 2.71 | (0.63 | ) | 1.82 | |||||||||||||||||
Less Dividends and Distributions: | ||||||||||||||||||||||||
Dividends from net investment income | (0.07 | ) | (0.17 | ) | (0.25 | ) | (0.22 | ) | (0.10 | ) | ||||||||||||||
Tax return of capital distributions | - | (0.02 | ) | (0.01 | ) | - | (0.05 | ) | ||||||||||||||||
Total dividends and distributions | (0.07 | ) | (0.19 | ) | (0.26 | ) | (0.22 | ) | (0.15 | ) | ||||||||||||||
Net asset value, end of period | $15.78 | $13.80 | $14.66 | $12.21 | $13.06 | |||||||||||||||||||
Total Return(c): | 14.86 | % | (4.62 | )% | 22.40 | % | (4.94 | )% | 16.02 | % | ||||||||||||||
Ratios/Supplemental Data: | ||||||||||||||||||||||||
Net assets, end of period (000) | $11,816 | $5,636 | $11,954 | $13,912 | $21,979 | |||||||||||||||||||
Average net assets (000) | $8,167 | $8,565 | $13,787 | $17,657 | $19,274 | |||||||||||||||||||
Ratios to average net assets(d)(e): | ||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.17 | %(f) | 1.17 | % | 1.17 | % | 1.25 | % | 1.25 | %(f) | ||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.58 | %(f) | 1.66 | % | 1.48 | % | 1.44 | % | 1.40 | %(f) | ||||||||||||||
Net investment income (loss) | 0.96 | %(f) | 1.28 | % | 1.70 | % | 1.39 | % | 1.00 | %(f) | ||||||||||||||
Portfolio turnover rate(g) | 33 | % | 62 | % | 62 | % | 75 | % | 80 | % |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Effective November 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(f) | Annualized. |
(g) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Jennison Global Infrastructure Fund | 33 |
Series Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Series has adopted and implemented a liquidity risk management program (the ���LRMP”). The Series’ LRMP seeks to assess and manage the Series’ liquidity risk, which is defined as the risk that the Series is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Series. The Company’s Board of Directors (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Series’ investment manager, to serve as the administrator of the Series’ LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Series’ LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Series’ LRMP includes no less than annual assessments of factors that influence the Series’ liquidity risk; no less than monthly classifications of the Series’ investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Series’ assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Series does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 2-5, 2021, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Series’ LRMP, including any material changes to the LRMP for the period from January 1, 2020 through December 31, 2020 (“Reporting Period”). The LRMP Report concluded that the Series’ LRMP was reasonably designed to assess and manage the Series’ liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Series’ investment strategies continue to be appropriate given the Series’ status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Series, including liquidity risks presented by the Series’ investment portfolio, is found in the Series’ Prospectus and Statement of Additional Information.
34 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
| ||||
DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
| ||||
CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
| ||||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
| ||||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
| ||||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
|
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Jennison Global Infrastructure Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM JENNISON GLOBAL INFRASTRUCTURE FUND
SHARE CLASS | A | C | Z | R6 | ||||
NASDAQ | PGJAX | PGJCX | PGJZX | PGJQX | ||||
CUSIP | 743969792 | 743969784 | 743969776 | 743969560 |
MF217E2
PGIM EMERGING MARKETS DEBT HARD
CURRENCY FUND
SEMIANNUAL REPORT
APRIL 30, 2021
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
3 | ||||
4 | ||||
7 | ||||
9 |
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The information about the Fund’s portfolio holdings is for the period covered by this report and is subject to change thereafter.
The accompanying financial statements as of April 30, 2021 were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. © 2021 Prudential Financial, Inc. and its related entities. PGIM and the PGIM logo are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
2 | Visit our website at pgim.com/investments |
Dear Shareholder,
We hope you find the semiannual report for the PGIM Emerging Markets Debt Hard Currency Fund informative and useful. The report covers performance for the six-month period ended April 30, 2021.
Regarding your investments with PGIM, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for
risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. However, diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
At PGIM Investments, we consider it a great privilege and responsibility to help investors participate in opportunities across global markets while meeting their toughest investment challenges. PGIM is a top-10 global investment manager with more than $1 trillion in assets under management. This investment expertise allows us to deliver actively managed funds and strategies to meet the needs of investors around the globe.
Thank you for choosing our family of funds.
Sincerely,
Stuart S. Parker, President
PGIM Emerging Markets Debt Hard Currency Fund
June 15, 2021
PGIM Emerging Markets Debt Hard Currency Fund | 3 |
Performance data quoted represents past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at pgim.com/investments or by calling (800) 225-1852.
(without sales charges) | Average Annual Total Returns as of 4/30/21 (with sales charges) | |||||
Six Months* (%) | One Year (%) | Since Inception (%) | ||||
Class A | 5.48 | 17.32 | 1.60 (12/12/17) | |||
Class C | 5.08 | 19.35 | 1.84 (12/12/17) | |||
Class Z | 5.63 | 21.60 | 2.90 (12/12/17) | |||
Class R6 | 5.80 | 21.73 | 2.99 (12/12/17) | |||
JP Morgan Emerging Markets Bond Index Global Diversified Index | ||||||
3.26 | 15.97 | 3.90 |
*Not annualized
Since Inception returns are provided since the Fund has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest month-end to the Fund’s inception date.
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.
Class A | Class C | Class Z | Class R6 | |||||
Maximum initial sales charge | 3.25% of the public offering price | None | None | None | ||||
Contingent deferred sales charge (CDSC) (as a percentage of the lower of the original purchase price or the net asset value at redemption) | 1.00% on sales of $500,000 or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None | ||||
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.25% | 1.00% | None | None |
4 | Visit our website at pgim.com/investments |
Benchmark Definitions
JP Morgan Emerging Markets Bond Index Global Diversified Index—The JP Morgan Emerging Markets Bond Index Global Diversified Index tracks total returns for USD-denominated debt instruments issued by emerging market sovereign and quasi-sovereign entities: Brady bonds, loans, and Eurobonds. It limits the weights of those index countries with larger debt stocks by only including specified portions of these countries’ eligible current face amounts of debt outstanding.
Investors cannot invest directly in an index. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes that may be paid by an investor.
Credit Quality expressed as a percentage of total investments as of 4/30/21 (%) | ||||
AA | 4.6 | |||
A | 6.7 | |||
BBB | 29.1 | |||
BB | 24.8 | |||
B | 22.5 | |||
CCC | 7.5 | |||
CC | 0.8 | |||
C | 0.3 | |||
Not Rated | 2.3 | |||
Cash/Cash Equivalents | 1.4 | |||
Total | 100.0 |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global Ratings (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent and are widely used. The Not Rated category consists of securities that have not been rated by a NRSRO. Credit ratings are subject to change.
PGIM Emerging Markets Debt Hard Currency Fund | 5 |
Your Fund’s Performance (continued)
Distributions and Yields as of 4/30/21 | ||||||
Total Distributions Paid for Six Months ($) | SEC 30-Day Subsidized Yield* (%) | SEC 30-Day Unsubsidized Yield** (%) | ||||
Class A | 0.21 | 3.67 | –11.60 | |||
Class C | 0.17 | 3.04 | –59.85 | |||
Class Z | 0.22 | 4.10 | 3.76 | |||
Class R6 | 0.22 | 4.19 | 4.01 |
*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements). The investor experience is represented by the SEC 30-Day Subsidized Yield.
**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses. The investor experience is represented by the SEC 30-Day Subsidized Yield.
6 | Visit our website at pgim.com/investments |
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution, and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 held through the six-month period ended April 30, 2021. The example is for illustrative purposes only; you should consult the Fund’s Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of PGIM funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period
PGIM Emerging Markets Debt Hard Currency Fund | 7 |
Fees and Expenses (continued)
and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
PGIM Emerging Markets Debt Hard Currency Fund | Beginning Account Value November 1, 2020 | Ending Account | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,054.80 | 1.05 | % | $ | 5.35 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,019.59 | 1.05 | % | $ | 5.26 | ||||||||||
Class C | Actual | $ | 1,000.00 | $ | 1,050.80 | 1.80 | % | $ | 9.15 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,015.87 | 1.80 | % | $ | 9.00 | ||||||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,056.30 | 0.75 | % | $ | 3.82 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.08 | 0.75 | % | $ | 3.76 | ||||||||||
Class R6 | Actual | $ | 1,000.00 | $ | 1,058.00 | 0.65 | % | $ | 3.32 | |||||||||
Hypothetical | $ | 1,000.00 | $ | 1,021.57 | 0.65 | % | $ | 3.26 |
*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended April 30, 2021, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2021 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
8 | Visit our website at pgim.com/investments |
Schedule of Investments (unaudited)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
LONG-TERM INVESTMENTS 97.1% |
| |||||||||||||||||
CORPORATE BONDS 24.8% |
| |||||||||||||||||
Azerbaijan 0.8% | ||||||||||||||||||
Southern Gas Corridor CJSC, | ||||||||||||||||||
Gov’t. Gtd. Notes | 6.875% | 03/24/26 | 450 | $ | 540,653 | |||||||||||||
Gov’t. Gtd. Notes, 144A | 6.875 | 03/24/26 | 250 | 300,363 | ||||||||||||||
State Oil Co. of the Azerbaijan Republic, |
| |||||||||||||||||
Sr. Unsec’d. Notes | 6.950 | 03/18/30 | 200 | 247,734 | ||||||||||||||
|
| |||||||||||||||||
1,088,750 | ||||||||||||||||||
Bahrain 0.5% | ||||||||||||||||||
Oil & Gas Holding Co. BSCC (The), |
| |||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 11/07/24 | 400 | 448,739 | ||||||||||||||
Sr. Unsec’d. Notes | 8.375 | 11/07/28 | 200 | 233,116 | ||||||||||||||
|
| |||||||||||||||||
681,855 | ||||||||||||||||||
Brazil 1.5% | ||||||||||||||||||
Braskem America Finance Co., |
| |||||||||||||||||
Gtd. Notes, 144A | 7.125 | 07/22/41 | 200 | 234,304 | ||||||||||||||
JSM Global Sarl, | ||||||||||||||||||
Gtd. Notes, 144A | 4.750 | 10/20/30 | 400 | 404,966 | ||||||||||||||
Petrobras Global Finance BV, | ||||||||||||||||||
Gtd. Notes | 5.093 | 01/15/30 | 367 | 387,780 | ||||||||||||||
Gtd. Notes | 5.600 | 01/03/31 | 459 | 495,877 | ||||||||||||||
Gtd. Notes | 6.900 | 03/19/49 | 150 | 168,950 | ||||||||||||||
Gtd. Notes | 7.375 | 01/17/27 | 66 | 80,006 | ||||||||||||||
Suzano Austria GmbH, | ||||||||||||||||||
Gtd. Notes | 3.750 | 01/15/31 | 150 | 153,573 | ||||||||||||||
Vale Overseas Ltd., | ||||||||||||||||||
Gtd. Notes | 3.750 | 07/08/30 | 90 | 94,583 | ||||||||||||||
|
| |||||||||||||||||
2,020,039 | ||||||||||||||||||
Chile 0.9% | ||||||||||||||||||
Corp. Nacional del Cobre de Chile, |
| |||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 11/04/44 | 600 | 712,248 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.875 | 11/04/44 | 200 | 237,416 | ||||||||||||||
VTR Finance NV, | ||||||||||||||||||
Sr. Unsec’d. Notes | 6.375 | 07/15/28 | 200 | 216,094 | ||||||||||||||
|
| |||||||||||||||||
1,165,758 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 9
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||||
China 1.3% | ||||||||||||||||||
Agile Group Holdings Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes | 6.050% | 10/13/25 | 200 | $ | 203,635 | |||||||||||||
Country Garden Holdings Co. Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes | 4.200 | 02/06/26 | 210 | 219,023 | ||||||||||||||
New Metro Global Ltd., | ||||||||||||||||||
Gtd. Notes | 4.800 | 12/15/24 | 200 | 199,436 | ||||||||||||||
Sinopec Group Overseas Development 2012 Ltd., | ||||||||||||||||||
Gtd. Notes | 4.875 | 05/17/42 | 200 | 239,222 | ||||||||||||||
Sinopec Group Overseas Development 2017 Ltd., | ||||||||||||||||||
Gtd. Notes | 4.000 | 09/13/47 | 200 | 215,602 | ||||||||||||||
Sinopec Group Overseas Development 2018 Ltd., | ||||||||||||||||||
Gtd. Notes, 144A | 3.680 | 08/08/49 | 400 | 409,573 | ||||||||||||||
Sunac China Holdings Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes | 6.500 | 01/10/25 | 200 | 203,475 | ||||||||||||||
|
| |||||||||||||||||
1,689,966 | ||||||||||||||||||
Colombia 0.2% | ||||||||||||||||||
Grupo Aval Ltd., | ||||||||||||||||||
Gtd. Notes, 144A | 4.375 | 02/04/30 | 200 | 200,626 | ||||||||||||||
Guatemala 0.2% | ||||||||||||||||||
Energuate Trust, | ||||||||||||||||||
Gtd. Notes | 5.875 | 05/03/27 | 200 | 210,607 | ||||||||||||||
India 1.4% | ||||||||||||||||||
Azure Power Solar Energy Pvt. Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes, 144A, MTN | 5.650 | 12/24/24 | 200 | 212,083 | ||||||||||||||
GMR Hyderabad International Airport Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes | 4.250 | 10/27/27 | 200 | 187,231 | ||||||||||||||
HPCL-Mittal Energy Ltd., | ||||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 04/28/27 | 200 | 205,762 | ||||||||||||||
NTPC Ltd., | ||||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 2.750 | 02/01/27 | EUR | 100 | 127,614 | |||||||||||||
Periama Holdings LLC, | ||||||||||||||||||
Gtd. Notes | 5.950 | 04/19/26 | 200 | 212,664 | ||||||||||||||
Power Finance Corp. Ltd., | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 06/18/29 | 400 | 418,762 | ||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.150 | 12/06/28 | 200 | 234,563 | ||||||||||||||
TML Holdings Pte Ltd., | ||||||||||||||||||
Sr. Unsec’d. Notes | 5.500 | 06/03/24 | 200 | 206,966 | ||||||||||||||
|
| |||||||||||||||||
1,805,645 |
See Notes to Financial Statements.
10
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||||
Indonesia 2.7% | ||||||||||||||||||
Cikarang Listrindo Tbk PT, | ||||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.950% | 09/14/26 | 200 | $ | 206,023 | |||||||||||||
Indonesia Asahan Aluminium Persero PT, | ||||||||||||||||||
Sr. Unsec’d. Notes | 5.450 | 05/15/30 | 500 | 575,329 | ||||||||||||||
Sr. Unsec’d. Notes | 6.530 | 11/15/28 | 220 | 266,746 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.750 | 05/15/25 | 200 | 217,825 | ||||||||||||||
Pelabuhan Indonesia III Persero PT, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 10/01/24 | 400 | 439,838 | ||||||||||||||
Pertamina Persero PT, | ||||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 05/03/42 | 200 | 241,357 | ||||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.700 | 07/30/49 | 200 | 212,279 | ||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.500 | 11/07/48 | 200 | 260,881 | ||||||||||||||
Perusahaan Listrik Negara PT, | ||||||||||||||||||
Sr. Unsec’d. Notes | 1.875 | 11/05/31 | EUR | 100 | 118,422 | |||||||||||||
Sr. Unsec’d. Notes | 2.875 | 10/25/25 | EUR | 200 | 257,449 | |||||||||||||
Perusahaan Perseroan Persero PT Perusahaan Listrik Negara, | ||||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 5.450 | 05/21/28 | 420 | 486,815 | ||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.150 | 05/21/48 | 200 | 247,031 | ||||||||||||||
|
| |||||||||||||||||
3,529,995 | ||||||||||||||||||
Israel 0.4% | ||||||||||||||||||
Energean Israel Finance Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes, 144A | 4.875 | 03/30/26 | 75 | 77,472 | ||||||||||||||
Sr. Sec’d. Notes, 144A | 5.375 | 03/30/28 | 115 | 118,839 | ||||||||||||||
Sr. Sec’d. Notes, 144A | 5.875 | 03/30/31 | 115 | 118,526 | ||||||||||||||
Leviathan Bond Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes, 144A | 6.125 | 06/30/25 | 200 | 218,964 | ||||||||||||||
|
| |||||||||||||||||
533,801 | ||||||||||||||||||
Jamaica 0.1% | ||||||||||||||||||
Digicel International Finance Ltd./Digicel International Holdings Ltd., | ||||||||||||||||||
Gtd. Notes, 144A | 8.000 | 12/31/26 | 39 | 37,608 | ||||||||||||||
Gtd. Notes, 144A, Cash coupon 6.000% and PIK 7.000% | 13.000 | 12/31/25 | 51 | 51,916 | ||||||||||||||
Sr. Sec’d. Notes, 144A | 8.750 | 05/25/24 | 97 | 101,029 | ||||||||||||||
|
| |||||||||||||||||
190,553 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 11
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||||
Kazakhstan 1.1% | ||||||||||||||||||
Kazakhstan Temir Zholy Finance BV, | ||||||||||||||||||
Gtd. Notes | 6.950% | 07/10/42 | 400 | $ | 536,980 | |||||||||||||
KazMunayGas National Co. JSC, | ||||||||||||||||||
Sr. Unsec’d. Notes | 5.375 | 04/24/30 | 200 | 237,812 | ||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 04/19/47 | 400 | 480,886 | ||||||||||||||
Sr. Unsec’d. Notes | 6.375 | 10/24/48 | 200 | 257,431 | ||||||||||||||
|
| |||||||||||||||||
1,513,109 | ||||||||||||||||||
Kuwait 0.4% | ||||||||||||||||||
MEGlobal Canada ULC, | ||||||||||||||||||
Gtd. Notes, 144A, MTN | 5.875 | 05/18/30 | 400 | 489,112 | ||||||||||||||
Malaysia 1.5% | ||||||||||||||||||
Gohl Capital Ltd., | ||||||||||||||||||
Gtd. Notes | 4.250 | 01/24/27 | 250 | 264,193 | ||||||||||||||
Petroliam Nasional Bhd, | ||||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 10/15/26 | 250 | 328,083 | ||||||||||||||
Petronas Capital Ltd., | ||||||||||||||||||
Gtd. Notes, 144A, MTN | 4.550 | 04/21/50 | 800 | 952,343 | ||||||||||||||
Gtd. Notes, EMTN | 3.500 | 04/21/30 | 200 | 216,397 | ||||||||||||||
Gtd. Notes, EMTN | 4.550 | 04/21/50 | 200 | 238,086 | ||||||||||||||
|
| |||||||||||||||||
1,999,102 | ||||||||||||||||||
Mexico 4.9% | ||||||||||||||||||
Cemex SAB de CV, | ||||||||||||||||||
Sr. Sec’d. Notes | 5.450 | 11/19/29 | 400 | 438,834 | ||||||||||||||
FEL Energy VI Sarl, | ||||||||||||||||||
Sr. Sec’d. Notes, 144A | 5.750 | 12/01/40 | 235 | 244,348 | ||||||||||||||
Mexico City Airport Trust, | ||||||||||||||||||
Sr. Sec’d. Notes | 4.250 | 10/31/26 | 360 | 387,400 | ||||||||||||||
Sr. Sec’d. Notes | 5.500 | 07/31/47 | 600 | 611,702 | ||||||||||||||
Nemak SAB de CV, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 01/23/25 | 200 | 206,564 | ||||||||||||||
Petroleos Mexicanos, | ||||||||||||||||||
Gtd. Notes | 4.500 | 01/23/26 | 285 | 286,153 | ||||||||||||||
Gtd. Notes | 5.350 | 02/12/28 | 195 | 191,439 | ||||||||||||||
Gtd. Notes | 5.950 | 01/28/31 | 180 | 173,631 | ||||||||||||||
Gtd. Notes | 6.350 | 02/12/48 | 376 | 320,698 | ||||||||||||||
Gtd. Notes | 6.490 | 01/23/27 | 315 | 332,980 | ||||||||||||||
Gtd. Notes | 6.500 | 03/13/27 | 975 | 1,030,318 | ||||||||||||||
Gtd. Notes | 6.500 | 01/23/29 | 435 | 442,717 |
See Notes to Financial Statements.
12
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||||
Mexico (cont’d.) | ||||||||||||||||||
Petroleos Mexicanos, (cont’d.) | ||||||||||||||||||
Gtd. Notes | 6.500% | 06/02/41 | 630 | $ | 564,437 | |||||||||||||
Gtd. Notes | 6.840 | 01/23/30 | 243 | 249,294 | ||||||||||||||
Gtd. Notes | 7.690 | 01/23/50 | 550 | 529,528 | ||||||||||||||
Gtd. Notes, MTN | 6.875 | 08/04/26 | 455 | 493,974 | ||||||||||||||
|
| |||||||||||||||||
6,504,017 | ||||||||||||||||||
Netherlands 0.2% | ||||||||||||||||||
VEON Holdings BV, | ||||||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.375 | 11/25/27 | 200 | 201,281 | ||||||||||||||
Peru 0.3% | ||||||||||||||||||
Nexa Resources SA, | ||||||||||||||||||
Gtd. Notes, 144A | 5.375 | 05/04/27 | 210 | 223,810 | ||||||||||||||
Petroleos del Peru SA, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 06/19/32 | 200 | 203,920 | ||||||||||||||
|
| |||||||||||||||||
427,730 | ||||||||||||||||||
Philippines 0.1% | ||||||||||||||||||
Globe Telecom, Inc., | ||||||||||||||||||
Sr. Unsec’d. Notes | 3.000 | 07/23/35 | 200 | 183,825 | ||||||||||||||
Russia 1.3% | ||||||||||||||||||
Gazprom PJSC Via Gaz Capital SA, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.950 | 02/06/28 | 200 | 221,059 | ||||||||||||||
Sr. Unsec’d. Notes, EMTN | 7.288 | 08/16/37 | 300 | 416,969 | ||||||||||||||
Sr. Unsec’d. Notes, EMTN | 8.625 | 04/28/34 | 465 | 692,534 | ||||||||||||||
Lukoil Securities BV, | ||||||||||||||||||
Gtd. Notes | 3.875 | 05/06/30 | 400 | 420,081 | ||||||||||||||
|
| |||||||||||||||||
1,750,643 | ||||||||||||||||||
Saudi Arabia 0.2% | ||||||||||||||||||
Saudi Arabian Oil Co., | ||||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.250 | 04/16/39 | 200 | 218,653 | ||||||||||||||
South Africa 2.1% | ||||||||||||||||||
Eskom Holdings SOC Ltd., | ||||||||||||||||||
Gov’t. Gtd. Notes, MTN | 6.350 | 08/10/28 | 400 | 435,075 | ||||||||||||||
Sr. Unsec’d. Notes | 7.125 | 02/11/25 | 600 | 629,551 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 13
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||||
South Africa (cont’d.) | ||||||||||||||||||
Eskom Holdings SOC Ltd., (cont’d.) | ||||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.750% | 08/06/23 | 400 | $ | 418,009 | |||||||||||||
Sr. Unsec’d. Notes, MTN | 8.450 | 08/10/28 | 660 | 730,086 | ||||||||||||||
MTN Mauritius Investments Ltd., | ||||||||||||||||||
Gtd. Notes, 144A | 6.500 | 10/13/26 | 200 | 226,992 | ||||||||||||||
Sasol Financing USA LLC, | ||||||||||||||||||
Gtd. Notes | 6.500 | 09/27/28 | 300 | 332,380 | ||||||||||||||
|
| |||||||||||||||||
2,772,093 | ||||||||||||||||||
Thailand 0.1% | ||||||||||||||||||
Thaioil Treasury Center Co. Ltd., | ||||||||||||||||||
Gtd. Notes, 144A, MTN | 3.750 | 06/18/50 | 200 | 183,031 | ||||||||||||||
Trinidad & Tobago 0.1% | ||||||||||||||||||
Trinidad Petroleum Holdings Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes, 144A | 9.750 | 06/15/26 | 166 | 185,682 | ||||||||||||||
Turkey 0.1% | ||||||||||||||||||
Turkiye Sinai Kalkinma Bankasi A/S, | ||||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.000 | 01/23/25 | 200 | 199,428 | ||||||||||||||
Ukraine 0.5% | ||||||||||||||||||
NAK Naftogaz Ukraine via Kondor Finance PLC, | ||||||||||||||||||
Sr. Unsec’d. Notes | 7.125 | 07/19/24 | EUR | 420 | 510,178 | |||||||||||||
State Savings Bank of Ukraine Via SSB #1 PLC, | ||||||||||||||||||
Sr. Unsec’d. Notes | 9.625 | 03/20/25 | 80 | 84,804 | ||||||||||||||
|
| |||||||||||||||||
594,982 | ||||||||||||||||||
United Arab Emirates 1.4% | ||||||||||||||||||
Abu Dhabi Crude Oil Pipeline LLC, | ||||||||||||||||||
Sr. Sec’d. Notes | 3.650 | 11/02/29 | 200 | 221,905 | ||||||||||||||
Sr. Sec’d. Notes | 4.600 | 11/02/47 | 200 | 229,326 | ||||||||||||||
Abu Dhabi National Energy Co. PJSC, | ||||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.000 | 10/03/49 | 200 | 221,685 | ||||||||||||||
DP World PLC, | ||||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.850 | 07/02/37 | 600 | 798,693 |
See Notes to Financial Statements.
14
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
CORPORATE BONDS (Continued) | ||||||||||||||||||
United Arab Emirates (cont’d.) | ||||||||||||||||||
Galaxy Pipeline Assets Bidco Ltd., | ||||||||||||||||||
Sr. Sec’d. Notes, 144A | 2.940% | 09/30/40 | 200 | $ | 196,149 | |||||||||||||
ICD Funding Ltd., | ||||||||||||||||||
Gtd. Notes | 4.625 | 05/21/24 | 200 | 215,325 | ||||||||||||||
|
| |||||||||||||||||
1,883,083 | ||||||||||||||||||
United States 0.2% | ||||||||||||||||||
JBS Investments II GmbH, | ||||||||||||||||||
Gtd. Notes, 144A | 5.750 | 01/15/28 | 200 | 211,855 | ||||||||||||||
Venezuela 0.1% | ||||||||||||||||||
Petroleos de Venezuela SA, | ||||||||||||||||||
Gtd. Notes | 5.375 | 04/12/27(d) | 205 | 8,903 | ||||||||||||||
Gtd. Notes | 6.000 | 05/16/24(d) | 45 | 1,953 | ||||||||||||||
Gtd. Notes | 6.000 | 11/15/26(d) | 65 | 2,777 | ||||||||||||||
Sr. Sec’d. Notes | 8.500 | 10/27/20(d) | 205 | 55,871 | ||||||||||||||
|
| |||||||||||||||||
69,504 | ||||||||||||||||||
Vietnam 0.2% | ||||||||||||||||||
Mong Duong Finance Holdings BV, | ||||||||||||||||||
Sr. Sec’d. Notes | 5.125 | 05/07/29 | 250 | 251,929 | ||||||||||||||
|
| |||||||||||||||||
TOTAL CORPORATE BONDS | ||||||||||||||||||
(cost $32,287,625) | 32,756,654 | |||||||||||||||||
|
| |||||||||||||||||
SOVEREIGN BONDS 72.3% | ||||||||||||||||||
Angola 2.0% | ||||||||||||||||||
Angolan Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 05/09/28 | 600 | 616,962 | ||||||||||||||
Sr. Unsec’d. Notes | 9.375 | 05/08/48 | 200 | 206,263 | ||||||||||||||
Sr. Unsec’d. Notes | 9.500 | 11/12/25 | 950 | 1,042,352 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 9.375 | 05/08/48 | 200 | 206,263 | ||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 8.000 | 11/26/29 | 200 | 202,576 | ||||||||||||||
Sr. Unsec’d. Notes, EMTN | 8.000 | 11/26/29 | 400 | 405,152 | ||||||||||||||
|
| |||||||||||||||||
2,679,568 | ||||||||||||||||||
Argentina 1.6% | ||||||||||||||||||
Argentina Bonar Bonds, | ||||||||||||||||||
Bonds | 0.125(cc) | 07/09/30 | 2 | 568 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 15
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||
Argentina (cont’d.) | ||||||||||||||||||
Argentina Bonar Bonds, (cont’d.) | ||||||||||||||||||
Unsec’d. Notes | 1.000% | 07/09/29 | 12 | $ | 4,065 | |||||||||||||
Argentine Republic Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 0.125(cc) | 07/09/30 | 2,080 | 741,974 | ||||||||||||||
Sr. Unsec’d. Notes | 0.125(cc) | 07/09/35 | 102 | 32,209 | ||||||||||||||
Sr. Unsec’d. Notes | 0.125(cc) | 01/09/38 | 1,620 | 610,583 | ||||||||||||||
Sr. Unsec’d. Notes | 0.125(cc) | 07/09/41 | 597 | 212,062 | ||||||||||||||
Sr. Unsec’d. Notes | 0.125(cc) | 07/09/46 | 335 | 107,501 | ||||||||||||||
Sr. Unsec’d. Notes | 1.000 | 07/09/29 | 254 | 96,028 | ||||||||||||||
Provincia de Buenos Aires, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.000 | 05/01/20(d) | EUR | 15 | 7,087 | |||||||||||||
Sr. Unsec’d. Notes | 5.375 | 01/20/23(d) | EUR | 100 | 45,027 | |||||||||||||
Sr. Unsec’d. Notes | 9.950 | 06/09/21(d) | 430 | 190,257 | ||||||||||||||
|
| |||||||||||||||||
2,047,361 | ||||||||||||||||||
Bahrain 1.6% | ||||||||||||||||||
Bahrain Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 6.750 | 09/20/29 | 400 | 439,784 | ||||||||||||||
Sr. Unsec’d. Notes | 7.000 | 01/26/26 | 200 | 230,355 | ||||||||||||||
Sr. Unsec’d. Notes | 7.000 | 10/12/28 | 400 | 449,177 | ||||||||||||||
Sr. Unsec’d. Notes | 7.375 | 05/14/30 | 720 | 814,055 | ||||||||||||||
Sr. Unsec’d. Notes | 7.500 | 09/20/47 | 200 | 211,443 | ||||||||||||||
|
| |||||||||||||||||
2,144,814 | ||||||||||||||||||
Belarus 0.8% | ||||||||||||||||||
Republic of Belarus International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 6.200 | 02/28/30 | 200 | 190,877 | ||||||||||||||
Sr. Unsec’d. Notes | 6.875 | 02/28/23 | 200 | 204,222 | ||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 06/29/27 | 425 | 441,303 | ||||||||||||||
Republic of Belarus Ministry of Finance, | ||||||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 02/24/26 | 200 | 193,671 | ||||||||||||||
|
| |||||||||||||||||
1,030,073 | ||||||||||||||||||
Benin 0.1% | ||||||||||||||||||
Benin Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 01/19/32 | EUR | 100 | 120,331 | |||||||||||||
Brazil 2.4% | ||||||||||||||||||
Brazil Minas SPE via State of Minas Gerais, | ||||||||||||||||||
Gov’t. Gtd. Notes | 5.333 | 02/15/28 | 200 | 216,114 |
See Notes to Financial Statements.
16
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||
Brazil (cont’d.) | ||||||||||||||||||
Brazilian Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.500% | 05/30/29 | 300 | $ | 315,918 | |||||||||||||
Sr. Unsec’d. Notes | 5.625 | 01/07/41 | 270 | 288,577 | ||||||||||||||
Sr. Unsec’d. Notes | 7.125 | 01/20/37 | 950 | 1,199,649 | ||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 01/20/34 | 828 | 1,127,341 | ||||||||||||||
|
| |||||||||||||||||
3,147,599 | ||||||||||||||||||
Bulgaria 0.4% | ||||||||||||||||||
Bulgaria Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 1.375 | 09/23/50 | EUR | 415 | 475,834 | |||||||||||||
Cameroon 0.3% | ||||||||||||||||||
Republic of Cameroon International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 9.500 | 11/19/25 | 400 | 448,782 | ||||||||||||||
Colombia 1.9% | ||||||||||||||||||
Colombia Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 6.125 | 01/18/41 | 660 | 788,549 | ||||||||||||||
Sr. Unsec’d. Notes | 7.375 | 09/18/37 | 1,015 | 1,345,165 | ||||||||||||||
Sr. Unsec’d. Notes | 10.375 | 01/28/33 | 200 | 307,878 | ||||||||||||||
|
| |||||||||||||||||
2,441,592 | ||||||||||||||||||
Congo (Republic) 0.1% | ||||||||||||||||||
Congolese International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 06/30/29 | 255 | 191,271 | ||||||||||||||
Costa Rica 1.2% | ||||||||||||||||||
Costa Rica Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.250 | 01/26/23 | 200 | 203,620 | ||||||||||||||
Sr. Unsec’d. Notes | 4.375 | 04/30/25 | 1,000 | 1,018,873 | ||||||||||||||
Sr. Unsec’d. Notes | 6.125 | 02/19/31 | 200 | 208,980 | ||||||||||||||
Sr. Unsec’d. Notes | 7.000 | 04/04/44 | 200 | 205,364 | ||||||||||||||
|
| |||||||||||||||||
1,636,837 | ||||||||||||||||||
Croatia 0.3% | ||||||||||||||||||
Croatia Government International Bond, | ||||||||||||||||||
Unsec’d. Notes | 1.500 | 06/17/31 | EUR | 285 | 357,738 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 17
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||
Dominican Republic 3.1% | ||||||||||||||||||
Dominican Republic International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 4.500% | 01/30/30 | 150 | $ | 155,939 | |||||||||||||
Sr. Unsec’d. Notes | 5.500 | 01/27/25 | 100 | 110,564 | ||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 04/18/24 | 555 | 597,164 | ||||||||||||||
Sr. Unsec’d. Notes | 6.875 | 01/29/26 | 400 | 468,494 | ||||||||||||||
Sr. Unsec’d. Notes | 7.450 | 04/30/44 | 1,400 | 1,694,927 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.875 | 09/23/32 | 150 | 156,990 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.300 | 01/21/41 | 150 | 152,880 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.875 | 01/30/60 | 425 | 423,524 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.000 | 07/19/28 | 320 | 366,509 | ||||||||||||||
|
| |||||||||||||||||
4,126,991 | ||||||||||||||||||
Ecuador 1.6% | ||||||||||||||||||
Ecuador Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes, 144A | 7.187(s) | 07/31/30 | 179 | 97,926 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 0.500(cc) | 07/31/30 | 639 | 534,391 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 0.500(cc) | 07/31/35 | 1,240 | 844,940 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 0.500(cc) | 07/31/40 | 1,111 | 659,997 | ||||||||||||||
|
| |||||||||||||||||
2,137,254 | ||||||||||||||||||
Egypt 2.2% | ||||||||||||||||||
Egypt Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 8.875 | 05/29/50 | 200 | 210,524 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 8.700 | 03/01/49 | 210 | 218,870 | ||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.750 | 04/16/26 | EUR | 200 | 249,507 | |||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 6.375 | 04/11/31 | EUR | 420 | 526,615 | |||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 7.600 | 03/01/29 | 200 | 217,113 | ||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 8.500 | 01/31/47 | 255 | 263,163 | ||||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.750 | 04/11/25 | EUR | 100 | 125,070 | |||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.750 | 04/16/26 | EUR | 200 | 249,507 | |||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.625 | 04/16/30 | EUR | 200 | 241,352 | |||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.375 | 04/11/31 | EUR | 100 | 125,385 | |||||||||||||
Sr. Unsec’d. Notes, MTN | 7.500 | 01/31/27 | 200 | 221,145 | ||||||||||||||
Sr. Unsec’d. Notes, MTN | 8.500 | 01/31/47 | 250 | 258,003 | ||||||||||||||
|
| |||||||||||||||||
2,906,254 | ||||||||||||||||||
El Salvador 1.3% | ||||||||||||||||||
El Salvador Government International Bond, | ||||||||||||||||||
Sr. Unsec’d. Notes | 5.875 | 01/30/25 | 355 | 366,752 | ||||||||||||||
Sr. Unsec’d. Notes | 6.375 | 01/18/27 | 425 | 440,411 |
See Notes to Financial Statements.
18
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
El Salvador (cont’d.) | ||||||||||||||||||||
El Salvador Government International Bond, (cont’d.) | ||||||||||||||||||||
Sr. Unsec’d. Notes | 7.625% | 02/01/41 | 150 | $ | 154,599 | |||||||||||||||
Sr. Unsec’d. Notes | 7.650 | 06/15/35 | 57 | 59,913 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/24/23 | 145 | 152,452 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 04/10/32 | 425 | 468,355 | ||||||||||||||||
|
| |||||||||||||||||||
1,642,482 | ||||||||||||||||||||
Gabon 0.8% | ||||||||||||||||||||
Gabon Government International Bond, Bonds | 6.375 | 12/12/24 | 200 | 211,592 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.950 | 06/16/25 | 600 | 638,473 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.625 | 02/06/31 | 215 | 216,139 | ||||||||||||||||
|
| |||||||||||||||||||
1,066,204 | ||||||||||||||||||||
Ghana 1.8% | ||||||||||||||||||||
Ghana Government International Bond, | ||||||||||||||||||||
Bank Gtd. Notes | 10.750 | 10/14/30 | 400 | 505,449 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.875 | 03/26/27 | 400 | 417,787 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.125 | 01/18/26 | 400 | 429,169 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.125 | 03/26/32 | 200 | 202,065 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.375 | 02/11/27 | 400 | 398,412 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 7.875 | 02/11/35 | 200 | 197,156 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 8.950 | 03/26/51 | 205 | 203,749 | ||||||||||||||||
|
| |||||||||||||||||||
2,353,787 | ||||||||||||||||||||
Guatemala 0.7% | ||||||||||||||||||||
Guatemala Government Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 02/13/28 | 400 | 449,183 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.125 | 06/01/50 | 400 | 480,335 | ||||||||||||||||
|
| |||||||||||||||||||
929,518 | ||||||||||||||||||||
Honduras 0.6% | ||||||||||||||||||||
Honduras Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 6.250 | 01/19/27 | 300 | 330,023 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.500 | 03/15/24 | 400 | 435,424 | ||||||||||||||||
|
| |||||||||||||||||||
765,447 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 19
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Hungary 1.2% | ||||||||||||||||||||
Hungary Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 1.750% | 06/05/35 | EUR | 495 | $ | 631,669 | ||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 03/29/41 | 546 | 882,046 | ||||||||||||||||
|
| |||||||||||||||||||
1,513,715 | ||||||||||||||||||||
India 0.3% | ||||||||||||||||||||
Export-Import Bank of India, | ||||||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 3.250 | 01/15/30 | 400 | 399,455 | ||||||||||||||||
Indonesia 2.0% | ||||||||||||||||||||
Indonesia Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 1.400 | 10/30/31 | EUR | 100 | 121,928 | |||||||||||||||
Sr. Unsec’d. Notes | 1.450 | 09/18/26 | EUR | 100 | 125,195 | |||||||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/17/38 | 360 | 535,243 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.500 | 10/12/35 | 450 | 710,350 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.625 | 02/17/37 | 110 | 148,048 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 3.750 | 06/14/28 | EUR | 100 | 143,068 | |||||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.625 | 04/15/43 | 200 | 225,311 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.125 | 01/15/45 | 200 | 241,232 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.250 | 01/17/42 | 200 | 243,034 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.750 | 01/15/44 | 100 | 144,139 | ||||||||||||||||
|
| |||||||||||||||||||
2,637,548 | ||||||||||||||||||||
Iraq 0.8% | ||||||||||||||||||||
Iraq International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.800 | 01/15/28 | 438 | 421,928 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.752 | 03/09/23 | 600 | 612,402 | ||||||||||||||||
|
| |||||||||||||||||||
1,034,330 | ||||||||||||||||||||
Israel 0.8% | ||||||||||||||||||||
Israel Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/03/2120 | 900 | 1,104,274 | ||||||||||||||||
Ivory Coast 1.4% | ||||||||||||||||||||
Ivory Coast Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 03/22/30 | EUR | 200 | 252,574 | |||||||||||||||
Sr. Unsec’d. Notes | �� | 5.875 | 10/17/31 | EUR | 300 | 390,625 | ||||||||||||||
Sr. Unsec’d. Notes | 6.375 | 03/03/28 | 400 | 442,879 |
See Notes to Financial Statements.
20
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Ivory Coast (cont’d.) | ||||||||||||||||||||
Ivory Coast Government International Bond, (cont’d.) | ||||||||||||||||||||
Sr. Unsec’d. Notes | 6.625% | 03/22/48 | EUR | 240 | $ | 301,679 | ||||||||||||||
Sr. Unsec’d. Notes | 6.875 | 10/17/40 | EUR | 350 | 455,078 | |||||||||||||||
|
| |||||||||||||||||||
1,842,835 | ||||||||||||||||||||
Jamaica 0.9% | ||||||||||||||||||||
Jamaica Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 07/09/25 | 225 | 261,945 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.875 | 07/28/45 | 200 | 278,462 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.000 | 03/15/39 | 300 | 422,502 | ||||||||||||||||
Sr. Unsec’d. Notes | 9.250 | 10/17/25 | 200 | 244,261 | ||||||||||||||||
|
| |||||||||||||||||||
1,207,170 | ||||||||||||||||||||
Jordan 0.6% | ||||||||||||||||||||
Jordan Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.850 | 07/07/30 | 200 | 207,514 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.125 | 01/29/26 | 200 | 216,350 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.375 | 10/10/47 | 400 | 420,687 | ||||||||||||||||
|
| |||||||||||||||||||
844,551 | ||||||||||||||||||||
Kazakhstan 0.2% | ||||||||||||||||||||
Kazakhstan Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.500 | 07/21/45 | 200 | 289,809 | ||||||||||||||||
Kenya 0.5% | ||||||||||||||||||||
Kenya Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 7.000 | 05/22/27 | 400 | 435,939 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.000 | 05/22/32 | 200 | 219,196 | ||||||||||||||||
|
| |||||||||||||||||||
655,135 | ||||||||||||||||||||
Lebanon 0.3% | ||||||||||||||||||||
Lebanon Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 01/27/23(d) | 191 | 24,353 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.650 | 04/22/24(d) | 172 | 21,930 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.750 | 11/29/27(d) | 170 | 21,675 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.000 | 04/22/31(d) | 115 | 14,377 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.100 | 10/04/22(d) | 75 | 9,451 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.850 | 05/25/29(d) | 335 | 42,193 | ||||||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.250 | 05/27/22(d) | 245 | 30,987 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 21
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Lebanon (cont’d.) | ||||||||||||||||||||
Lebanon Government International Bond, (cont’d.) | ||||||||||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.250% | 11/04/24(d) | 320 | $ | 40,800 | |||||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.375 | 03/09/20(d) | 220 | 27,754 | ||||||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.400 | 05/26/23(d) | 250 | 31,843 | ||||||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.600 | 11/27/26(d) | 30 | 3,918 | ||||||||||||||||
Sr. Unsec’d. Notes, GMTN | 6.650 | 02/26/30(d) | 715 | 91,390 | ||||||||||||||||
Sr. Unsec’d. Notes, GMTN | 7.150 | 11/20/31(d) | 415 | 51,875 | ||||||||||||||||
|
| |||||||||||||||||||
412,546 | ||||||||||||||||||||
Malaysia 1.5% | ||||||||||||||||||||
1MDB Global Investments Ltd., | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.400 | 03/09/23 | 2,000 | 2,014,768 | ||||||||||||||||
Mexico 0.9% | ||||||||||||||||||||
Mexico Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes, GMTN | 5.750 | 10/12/2110 | 126 | 143,265 | ||||||||||||||||
Sr. Unsec’d. Notes, MTN | 6.050 | 01/11/40 | 634 | 773,690 | ||||||||||||||||
Sr. Unsec’d. Notes, Series A, MTN | 6.750 | 09/27/34 | 203 | 264,847 | ||||||||||||||||
|
| |||||||||||||||||||
1,181,802 | ||||||||||||||||||||
Mongolia 0.4% | ||||||||||||||||||||
Mongolia Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 8.750 | 03/09/24 | 400 | 461,300 | ||||||||||||||||
Morocco 0.8% | ||||||||||||||||||||
Morocco Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 1.500 | 11/27/31 | EUR | 200 | 226,023 | |||||||||||||||
Sr. Unsec’d. Notes | 2.000 | 09/30/30 | EUR | 400 | 476,002 | |||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.000 | 12/15/32 | 400 | 380,724 | ||||||||||||||||
|
| |||||||||||||||||||
1,082,749 | ||||||||||||||||||||
Mozambique 0.4% | ||||||||||||||||||||
Mozambique International Bond, | ||||||||||||||||||||
Unsec’d. Notes | 5.000(cc) | 09/15/31 | 400 | 330,197 | ||||||||||||||||
Unsec’d. Notes, 144A | 5.000(cc) | 09/15/31 | 200 | 165,098 | ||||||||||||||||
|
| |||||||||||||||||||
495,295 |
See Notes to Financial Statements.
22
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Namibia 0.2% | ||||||||||||||||||||
Namibia International Bonds, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.250% | 10/29/25 | 200 | $ | 210,812 | |||||||||||||||
Nigeria 2.0% | ||||||||||||||||||||
Nigeria Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 11/21/25 | 300 | 341,347 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.875 | 02/16/32 | 400 | 430,859 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.747 | 01/21/31 | 1,100 | 1,254,275 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 7.696 | 02/23/38 | 200 | 205,825 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.500 | 11/28/27 | 400 | 422,883 | ||||||||||||||||
|
| |||||||||||||||||||
2,655,189 | ||||||||||||||||||||
Oman 2.4% | ||||||||||||||||||||
Oman Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 06/15/26 | 430 | 446,819 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.375 | 03/08/27 | 200 | 209,273 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.625 | 01/17/28 | 200 | 210,276 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.500 | 03/08/47 | 225 | 220,392 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.750 | 10/28/27 | 600 | 673,961 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.750 | 01/17/48 | 200 | 199,805 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.375 | 10/28/32 | 460 | 525,869 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 01/17/48 | 200 | 199,805 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.875 | 02/01/25 | 200 | 209,994 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.000 | 08/01/29 | 200 | 212,429 | ||||||||||||||||
|
| |||||||||||||||||||
3,108,623 | ||||||||||||||||||||
Pakistan 1.6% | ||||||||||||||||||||
Pakistan Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 6.875 | 12/05/27 | 600 | 627,672 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 04/15/24 | 400 | 440,069 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.250 | 09/30/25 | 770 | 857,880 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 7.375 | 04/08/31 | 200 | 210,013 | ||||||||||||||||
|
| |||||||||||||||||||
2,135,634 | ||||||||||||||||||||
Panama 1.6% | ||||||||||||||||||||
Panama Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 3.870 | 07/23/60 | 200 | 199,669 | ||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/16/50 | 400 | 443,390 | ||||||||||||||||
Sr. Unsec’d. Notes | 4.500 | 04/01/56 | 200 | 220,158 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 23
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Panama (cont’d.) | ||||||||||||||||||||
Panama Government International Bond, (cont’d.) | ||||||||||||||||||||
Sr. Unsec’d. Notes | 6.700% | 01/26/36 | 760 | $ | 1,020,677 | |||||||||||||||
Sr. Unsec’d. Notes | 9.375 | 04/01/29 | 105 | 154,571 | ||||||||||||||||
|
| |||||||||||||||||||
2,038,465 | ||||||||||||||||||||
Papua New Guinea 0.2% | ||||||||||||||||||||
Papua New Guinea Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes, 144A | 8.375 | 10/04/28 | 200 | 206,380 | ||||||||||||||||
Paraguay 0.5% | ||||||||||||||||||||
Paraguay Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.700 | 03/27/27 | 200 | 222,539 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.100 | 08/11/44 | 400 | 480,722 | ||||||||||||||||
|
| |||||||||||||||||||
703,261 | ||||||||||||||||||||
Peru 1.6% | ||||||||||||||||||||
Peruvian Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 2.780 | 12/01/60 | 370 | 314,924 | ||||||||||||||||
Sr. Unsec’d. Notes | 2.783 | 01/23/31 | 30 | 30,046 | ||||||||||||||||
Sr. Unsec’d. Notes | 3.230 | 07/28/2121 | 110 | 92,603 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.625 | 11/18/50 | 140 | 186,127 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.550 | 03/14/37 | 225 | 302,744 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.750 | 11/21/33 | 780 | 1,206,972 | ||||||||||||||||
|
| |||||||||||||||||||
2,133,416 | ||||||||||||||||||||
Philippines 1.9% | ||||||||||||||||||||
Philippine Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 1.750 | 04/28/41 | EUR | 165 | 194,470 | |||||||||||||||
Sr. Unsec’d. Notes | 2.650 | 12/10/45 | 200 | 183,320 | ||||||||||||||||
Sr. Unsec’d. Notes | 2.950 | 05/05/45 | 200 | 191,573 | ||||||||||||||||
Sr. Unsec’d. Notes | 3.700 | 03/01/41 | 400 | 424,827 | ||||||||||||||||
Sr. Unsec’d. Notes | 3.950 | 01/20/40 | 700 | 766,231 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.375 | 10/23/34 | 100 | 139,616 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.750 | 01/14/31 | 420 | 615,650 | ||||||||||||||||
|
| |||||||||||||||||||
2,515,687 | ||||||||||||||||||||
Qatar 2.7% | ||||||||||||||||||||
Qatar Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.400 | 04/16/50 | 200 | 233,336 |
See Notes to Financial Statements.
24
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Qatar (cont’d.) | ||||||||||||||||||||
Qatar Government International Bond, (cont’d.) | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.103% | 04/23/48 | 1,400 | $ | 1,780,599 | |||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.400 | 04/16/50 | 200 | 233,336 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.817 | 03/14/49 | 810 | 997,594 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.103 | 04/23/48 | 200 | 254,371 | ||||||||||||||||
|
| |||||||||||||||||||
3,499,236 | ||||||||||||||||||||
Romania 2.0% | ||||||||||||||||||||
Romanian Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.125 | 06/15/48 | 294 | 342,502 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.000 | 02/14/51 | 70 | 69,796 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.625 | 04/03/49 | EUR | 71 | 105,654 | |||||||||||||||
Sr. Unsec’d. Notes, EMTN | 3.875 | 10/29/35 | EUR | 450 | 627,575 | |||||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.125 | 03/11/39 | EUR | 310 | 436,592 | |||||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.625 | 04/03/49 | EUR | 257 | 382,437 | |||||||||||||||
Sr. Unsec’d. Notes, EMTN | 6.125 | 01/22/44 | 346 | 451,438 | ||||||||||||||||
Unsec’d. Notes, 144A | 2.750 | 04/14/41 | EUR | 170 | 200,882 | |||||||||||||||
|
| |||||||||||||||||||
2,616,876 | ||||||||||||||||||||
Russia 2.0% | ||||||||||||||||||||
Russian Foreign Bond - Eurobond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.100 | 03/28/35 | 1,000 | 1,177,697 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.625 | 04/04/42 | 1,000 | 1,263,487 | ||||||||||||||||
Sr. Unsec’d. Notes | 12.750 | 06/24/28 | 140 | 233,212 | ||||||||||||||||
|
| |||||||||||||||||||
2,674,396 | ||||||||||||||||||||
Saudi Arabia 2.1% | ||||||||||||||||||||
Saudi Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.250 | 01/16/50 | 200 | 250,083 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.250 | 01/16/50 | 400 | 500,166 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.500 | 10/26/46 | 1,000 | 1,118,678 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 4.625 | 10/04/47 | 400 | 457,131 | ||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.000 | 04/17/49 | 400 | 484,015 | ||||||||||||||||
|
| |||||||||||||||||||
2,810,073 | ||||||||||||||||||||
Senegal 0.2% | ||||||||||||||||||||
Senegal Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.750 | 03/13/28 | EUR | 200 | 250,099 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 25
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Serbia 1.0% | ||||||||||||||||||||
Serbia International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 1.500% | 06/26/29 | EUR | 740 | $ | 882,063 | ||||||||||||||
Sr. Unsec’d. Notes, 144A | 1.650 | 03/03/33 | EUR | 125 | 144,834 | |||||||||||||||
Sr. Unsec’d. Notes, 144A | 2.125 | 12/01/30 | 230 | 211,910 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.125 | 05/15/27 | EUR | 100 | 132,258 | |||||||||||||||
|
| |||||||||||||||||||
1,371,065 | ||||||||||||||||||||
South Africa 0.8% | ||||||||||||||||||||
Republic of South Africa Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.300 | 10/12/28 | 200 | 201,075 | ||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 04/14/26 | 200 | 213,387 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.650 | 09/27/47 | 200 | 192,735 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 09/30/49 | 200 | 192,939 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.250 | 03/08/41 | 200 | 210,219 | ||||||||||||||||
|
| |||||||||||||||||||
1,010,355 | ||||||||||||||||||||
Sri Lanka 1.1% | ||||||||||||||||||||
Sri Lanka Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 04/18/23 | 200 | 144,603 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.200 | 05/11/27 | 200 | 131,160 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.350 | 06/28/24 | 200 | 139,141 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.850 | 11/03/25 | 350 | 233,279 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.850 | 03/14/29 | 250 | 163,870 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 5.750 | 04/18/23 | 200 | 144,603 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.750 | 04/18/28 | 200 | 131,164 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 6.850 | 03/14/24 | 265 | 184,349 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 7.850 | 03/14/29 | 200 | 131,096 | ||||||||||||||||
|
| |||||||||||||||||||
1,403,265 | ||||||||||||||||||||
Turkey 3.9% | ||||||||||||||||||||
Turkey Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.250 | 04/14/26 | 400 | 374,206 | ||||||||||||||||
Sr. Unsec’d. Notes | 4.875 | 10/09/26 | 300 | 286,810 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.600 | 11/14/24 | 320 | 322,071 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.750 | 03/22/24 | 600 | 610,472 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 03/25/27 | 880 | 876,344 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.000 | 01/14/41 | 200 | 175,571 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.125 | 10/24/28 | 620 | 610,838 | ||||||||||||||||
Sr. Unsec’d. Notes | 6.350 | 08/10/24 | 200 | 205,916 |
See Notes to Financial Statements.
26
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Turkey (cont’d.) | ||||||||||||||||||||
Turkey Government International Bond, (cont’d.) | ||||||||||||||||||||
Sr. Unsec’d. Notes | 6.375% | 10/14/25 | 200 | $ | 205,095 | |||||||||||||||
Sr. Unsec’d. Notes | 6.875 | 03/17/36 | 264 | 258,550 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.375 | 02/05/25 | 505 | 536,130 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 04/26/29 | 480 | 510,773 | ||||||||||||||||
Turkiye Ihracat Kredi Bankasi A/S, | 8.250 | 01/24/24 | 200 | 213,065 | ||||||||||||||||
|
| |||||||||||||||||||
5,185,841 | ||||||||||||||||||||
Ukraine 3.5% | ||||||||||||||||||||
Ukraine Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 0.000(cc) | 05/31/40 | 285 | 300,327 | ||||||||||||||||
Sr. Unsec’d. Notes | 4.375 | 01/27/30 | EUR | 210 | 231,459 | |||||||||||||||
Sr. Unsec’d. Notes | 6.750 | 06/20/26 | EUR | 900 | 1,156,781 | |||||||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/25 | 375 | 404,215 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/26 | 600 | 647,221 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.750 | 09/01/27 | 100 | 107,334 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.994 | 02/01/24 | 200 | 219,890 | ||||||||||||||||
Sr. Unsec’d. Notes | 9.750 | 11/01/28 | 965 | 1,118,751 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 0.000(cc) | 05/31/40 | 35 | 36,882 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 4.375 | 01/27/30 | EUR | 100 | 110,219 | |||||||||||||||
Sr. Unsec’d. Notes, 144A | 7.253 | 03/15/33 | 200 | 200,438 | ||||||||||||||||
Ukreximbank Via Biz Finance PLC, | 9.750 | 01/22/25 | 100 | 107,081 | ||||||||||||||||
|
| |||||||||||||||||||
4,640,598 | ||||||||||||||||||||
United Arab Emirates 1.2% | ||||||||||||||||||||
Abu Dhabi Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 3.125 | 09/30/49 | 200 | 195,250 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A | 3.125 | 09/30/49 | 200 | 195,250 | ||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 3.875 | 04/16/50 | 200 | 222,327 | ||||||||||||||||
Emirate of Dubai Government International Bonds, | ||||||||||||||||||||
Sr. Unsec’d. Notes, EMTN | 5.250 | 01/30/43 | 600 | 663,408 | ||||||||||||||||
Finance Department Government of Sharjah, | ||||||||||||||||||||
Sr. Unsec’d. Notes, 144A, MTN | 4.000 | 07/28/50 | 200 | 175,254 | ||||||||||||||||
Sr. Unsec’d. Notes, MTN | 4.000 | 07/28/50 | 200 | 175,254 | ||||||||||||||||
|
| |||||||||||||||||||
1,626,743 |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 27
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Description | Interest Rate | Maturity Date | Principal Amount (000)# | Value | ||||||||||||||||
SOVEREIGN BONDS (Continued) | ||||||||||||||||||||
Uruguay 1.4% | ||||||||||||||||||||
Uruguay Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 4.125% | 11/20/45 | 120 | $ | 136,753 | |||||||||||||||
Sr. Unsec’d. Notes | 4.975 | 04/20/55 | 350 | 432,207 | ||||||||||||||||
Sr. Unsec’d. Notes | 5.100 | 06/18/50 | 350 | 437,799 | ||||||||||||||||
Sr. Unsec’d. Notes | 7.625 | 03/21/36 | 590 | 896,719 | ||||||||||||||||
|
| |||||||||||||||||||
1,903,478 | ||||||||||||||||||||
Venezuela 0.0% | ||||||||||||||||||||
Venezuela Government International Bond, | 12.750 | 08/23/22(d) | 180 | 18,822 | ||||||||||||||||
Zambia 0.6% | ||||||||||||||||||||
Zambia Government International Bond, | ||||||||||||||||||||
Sr. Unsec’d. Notes | 8.500 | 04/14/24(d) | 600 | 367,717 | ||||||||||||||||
Sr. Unsec’d. Notes | 8.970 | 07/30/27(d) | 400 | 242,587 | ||||||||||||||||
Unsec’d. Notes | 5.375 | 09/20/22(d) | 200 | 120,392 | ||||||||||||||||
|
| |||||||||||||||||||
730,696 | ||||||||||||||||||||
|
| |||||||||||||||||||
TOTAL SOVEREIGN BONDS | 95,276,029 | |||||||||||||||||||
|
| |||||||||||||||||||
Shares | ||||||||||||||||||||
COMMON STOCK 0.0% | ||||||||||||||||||||
Colombia | ||||||||||||||||||||
Frontera Energy Corp.* | 2,232 | 10,490 | ||||||||||||||||||
|
| |||||||||||||||||||
TOTAL LONG-TERM INVESTMENTS | 128,043,173 | |||||||||||||||||||
|
|
See Notes to Financial Statements.
28
Description | Shares | Value | ||||||
SHORT-TERM INVESTMENTS 1.7% | ||||||||
AFFILIATED MUTUAL FUND 1.7% | ||||||||
PGIM Core Ultra Short Bond Fund | 2,288,223 | $ | 2,288,223 | |||||
|
| |||||||
OPTIONS PURCHASED*~ 0.0% | 9,488 | |||||||
|
| |||||||
TOTAL SHORT-TERM INVESTMENTS | 2,297,711 | |||||||
|
| |||||||
TOTAL INVESTMENTS, BEFORE OPTIONS WRITTEN 98.8% | 130,340,884 | |||||||
|
| |||||||
OPTIONS WRITTEN*~ (0.0)% | (45,530 | ) | ||||||
|
| |||||||
TOTAL INVESTMENTS, NET OF OPTIONS WRITTEN 98.8% | �� | 130,295,354 | ||||||
Other assets in excess of liabilities(z) 1.2% | 1,554,345 | |||||||
|
| |||||||
NET ASSETS 100.0% | $ | 131,849,699 | ||||||
|
|
Below is a list of the abbreviation(s) used in the semiannual report:
AUD—Australian Dollar
BRL—Brazilian Real
CLP—Chilean Peso
CNH—Chinese Renminbi
COP—Colombian Peso
CZK—Czech Koruna
EUR—Euro
HUF—Hungarian Forint
IDR—Indonesian Rupiah
ILS—Israeli Shekel
INR—Indian Rupee
JPY—Japanese Yen
KRW—South Korean Won
MXN—Mexican Peso
NZD—New Zealand Dollar
PEN—Peruvian Nuevo Sol
PHP—Philippine Peso
PLN—Polish Zloty
RUB—Russian Ruble
SGD—Singapore Dollar
THB—Thai Baht
TRY—Turkish Lira
TWD—New Taiwanese Dollar
USD—US Dollar
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 29
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
ZAR—South African Rand
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
EMTN—Euro Medium Term Note
GMTN—Global Medium Term Note
LIBOR—London Interbank Offered Rate
M—Monthly payment frequency for swaps
MTN—Medium Term Note
OTC—Over-the-counter
PIK—Payment-in-Kind
PJSC—Public Joint-Stock Company
Q—Quarterly payment frequency for swaps
* | Non-income producing security. |
# | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
~ | See tables subsequent to the Schedule of Investments for options detail. |
(cc) | Variable rate instrument. The rate shown is based on the latest available information as of April 30, 2021. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
(d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post-maturity. |
(s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
(z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Options Purchased:
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 07/12/21 | 7.30 | — | 927 | $ | 49 | ||||||||||||||||||||||||
Currency Option USD vs INR | Call | Morgan Stanley & Co. International PLC | 05/21/21 | 75.00 | — | 3,186 | 9,386 | |||||||||||||||||||||||||
Currency Option USD vs INR | Call | Goldman Sachs International | 05/21/21 | 83.00 | — | 3,186 | 29 | |||||||||||||||||||||||||
Currency Option USD vs RUB | Call | Goldman Sachs International | 05/06/21 | 90.00 | — | 328 | — | |||||||||||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 05/05/21 | 18.50 | — | 656 | — | |||||||||||||||||||||||||
Currency Option USD vs RUB | Put | JPMorgan Chase Bank, N.A. | 05/04/21 | 70.00 | — | 330 | — | |||||||||||||||||||||||||
Currency Option USD vs RUB | Put | JPMorgan Chase Bank, N.A. | 05/06/21 | 70.00 | — | 656 | — | |||||||||||||||||||||||||
Currency Option USD vs RUB | Put | Morgan Stanley & Co. International PLC | 05/06/21 | 70.00 | — | 330 | — | |||||||||||||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/03/21 | 7.50 | — | 329 | — | |||||||||||||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/26/21 | 7.00 | — | 656 | 16 | |||||||||||||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/26/21 | 7.00 | — | 328 | 8 | |||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||
Total Options Purchased (cost $19,581) |
| $ | 9,488 | |||||||||||||||||||||||||||||
|
|
See Notes to Financial Statements.
30
Options Written:
OTC Traded
Description | Call/ Put | Counterparty | Expiration Date | Strike | Contracts | Notional Amount (000)# | Value | |||||||||||||||||||
Currency Option USD vs CNH | Call | Goldman Sachs International | 07/12/21 | 6.70 | — | 927 | $ | (1,194 | ) | |||||||||||||||||
Currency Option USD vs INR | Call | Goldman Sachs International | 05/21/21 | 75.00 | — | 3,186 | (9,386 | ) | ||||||||||||||||||
Currency Option USD vs RUB | Call | Goldman Sachs International | 05/06/21 | 77.00 | — | 328 | (323 | ) | ||||||||||||||||||
Currency Option USD vs MXN | Put | JPMorgan Chase Bank, N.A. | 05/05/21 | 20.05 | — | 656 | (1,034 | ) | ||||||||||||||||||
Currency Option USD vs RUB | Put | JPMorgan Chase Bank, N.A. | 05/04/21 | 76.50 | — | 330 | (5,860 | ) | ||||||||||||||||||
Currency Option USD vs RUB | Put | JPMorgan Chase Bank, N.A. | 05/06/21 | 75.50 | — | 656 | (5,486 | ) | ||||||||||||||||||
Currency Option USD vs RUB | Put | Morgan Stanley & Co. International PLC | 05/06/21 | 77.50 | — | 330 | (10,223 | ) | ||||||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/03/21 | 8.00 | — | 329 | (1 | ) | ||||||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/26/21 | 8.25 | — | 656 | (8,015 | ) | ||||||||||||||||||
Currency Option USD vs TRY | Put | Morgan Stanley & Co. International PLC | 05/26/21 | 8.25 | — | 328 | (4,008 | ) | ||||||||||||||||||
|
| |||||||||||||||||||||||||
Total Options Written (premiums received $56,616) | $ | (45,530 | ) | |||||||||||||||||||||||
|
|
Futures contracts outstanding at April 30, 2021:
Number of Contracts | Type | Expiration Date | Current Notional Amount | Value / Unrealized Appreciation (Depreciation) | |||||||||||||
Long Positions: | |||||||||||||||||
28 | 2 Year U.S. Treasury Notes | Jun. 2021 | $ | 6,181,218 | $ | (3,861 | ) | ||||||||||
30 | 5 Year U.S. Treasury Notes | Jun. 2021 | 3,718,125 | (18,044 | ) | ||||||||||||
45 | 10 Year U.S. Treasury Notes | Jun. 2021 | 5,941,406 | (65,763 | ) | ||||||||||||
15 | 30 Year U.S. Ultra Treasury Bonds | Jun. 2021 | 2,788,594 | (34,519 | ) | ||||||||||||
|
| ||||||||||||||||
(122,187 | ) | ||||||||||||||||
|
| ||||||||||||||||
Short Positions: | |||||||||||||||||
20 | 5 Year Euro-Bobl | Jun. 2021 | 3,239,583 | 1,833 | |||||||||||||
50 | 10 Year Euro-Bund | Jun. 2021 | 10,219,125 | 75,899 | |||||||||||||
40 | 20 Year U.S. Treasury Bonds | Jun. 2021 | 6,290,000 | 101,054 | |||||||||||||
5 | Euro Schatz Index | Jun. 2021 | 673,741 | 110 | |||||||||||||
|
| ||||||||||||||||
178,896 | |||||||||||||||||
|
| ||||||||||||||||
$ | 56,709 | ||||||||||||||||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 31
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021:
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: | ||||||||||||||||||||||||||||||
Australian Dollar, | ||||||||||||||||||||||||||||||
Expiring 07/20/21 | Barclays Bank PLC | AUD | 647 | $ | 501,225 | $ | 498,519 | $ | — | $ (2,706 | ) | |||||||||||||||||||
Expiring 07/20/21 | Goldman Sachs International | AUD | 209 | 163,000 | 161,123 | — | (1,877 | ) | ||||||||||||||||||||||
Expiring 07/20/21 | JPMorgan Chase Bank, N.A. | AUD | 216 | 166,977 | 166,455 | — | (522 | ) | ||||||||||||||||||||||
Expiring 07/20/21 | Morgan Stanley & Co. International PLC | AUD | 209 | 163,000 | 160,984 | — | (2,016 | ) | ||||||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||||||||||
Expiring 05/04/21 | Barclays Bank PLC | BRL | 388 | 69,000 | 71,451 | 2,451 | — | |||||||||||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 781 | 139,000 | 143,745 | 4,745 | — | |||||||||||||||||||||||
Expiring 05/04/21 | Credit Suisse International | BRL | 739 | 131,000 | 135,966 | 4,966 | — | |||||||||||||||||||||||
Expiring 05/04/21 | Credit Suisse International | BRL | 469 | 85,000 | 86,310 | 1,310 | — | |||||||||||||||||||||||
Expiring 05/04/21 | JPMorgan Chase Bank, N.A. | BRL | 4,418 | 820,206 | 813,000 | — | (7,206 | ) | ||||||||||||||||||||||
Expiring 05/04/21 | JPMorgan Chase Bank, N.A. | BRL | 485 | 85,000 | 89,339 | 4,339 | — | |||||||||||||||||||||||
Expiring 05/04/21 | Morgan Stanley & Co. International PLC | BRL | 1,103 | 197,000 | 203,004 | 6,004 | — | |||||||||||||||||||||||
Expiring 05/04/21 | Morgan Stanley & Co. International PLC | BRL | 909 | 165,000 | 167,369 | 2,369 | — | |||||||||||||||||||||||
Expiring 07/02/21 | Deutsche Bank AG | BRL | 2,947 | 532,387 | 539,439 | 7,052 | — | |||||||||||||||||||||||
Chilean Peso, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 117,393 | 165,000 | 165,127 | 127 | — | |||||||||||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||||||||||
Expiring 05/14/21 | Citibank, N.A. | CNH | 994 | 142,393 | 153,339 | 10,946 | — | |||||||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 2,037 | 315,000 | 314,205 | — | (795 | ) | ||||||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 1,660 | 254,000 | 256,051 | 2,051 | — | |||||||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 1,633 | 250,000 | 251,946 | 1,946 | — | |||||||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 1,056 | 162,000 | 162,858 | 858 | — | |||||||||||||||||||||||
Expiring 05/18/21 | JPMorgan Chase Bank, N.A. | CNH | 3,272 | 502,743 | 504,833 | 2,090 | — | |||||||||||||||||||||||
Expiring 05/18/21 | JPMorgan Chase Bank, N.A. | CNH | 246 | 38,000 | 37,883 | — | (117 | ) | ||||||||||||||||||||||
Expiring 05/18/21 | Morgan Stanley & Co. International PLC | CNH | 2,420 | 372,000 | 373,305 | 1,305 | — | |||||||||||||||||||||||
Expiring 05/18/21 | UBS AG | CNH | 1,632 | 251,000 | 251,784 | 784 | — | |||||||||||||||||||||||
Colombian Peso, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | COP | 612,456 | 167,000 | 162,795 | — | (4,205 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | COP | 335,010 | 92,000 | 89,048 | — | (2,952 | ) |
See Notes to Financial Statements.
32
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | ||||||||||||||||||||||||||||||
Colombian Peso (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | COP | 1,189,233 | $ | 328,000 | $ | 316,106 | $ | — | $ | (11,894 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | COP | 471,240 | 126,000 | 125,259 | — | (741 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | COP | 463,182 | 126,000 | 123,117 | — | (2,883 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | COP | 450,154 | 126,000 | 119,654 | — | (6,346 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | COP | 597,609 | 164,000 | 158,848 | — | (5,152 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 312,874 | 86,000 | 83,164 | — | (2,836 | ) | ||||||||||||||||||||||
Czech Koruna, | ||||||||||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | CZK | 7,841 | 361,394 | 364,537 | 3,143 | — | |||||||||||||||||||||||
Expiring 07/19/21 | Morgan Stanley & Co. International PLC | CZK | 7,533 | 344,530 | 350,242 | 5,712 | — | |||||||||||||||||||||||
Euro, | ||||||||||||||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | EUR | 278 | 333,000 | 335,087 | 2,087 | — | |||||||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | EUR | 69 | 82,961 | 82,491 | — | (470 | ) | ||||||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | EUR | 69 | 82,960 | 82,491 | — | (469 | ) | ||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | EUR | 134 | 163,000 | 161,498 | — | (1,502 | ) | ||||||||||||||||||||||
Expiring 07/19/21 | The Toronto-Dominion Bank | EUR | 137 | 164,000 | 164,685 | 685 | — | |||||||||||||||||||||||
Hungarian Forint, | ||||||||||||||||||||||||||||||
Expiring 07/19/21 | Barclays Bank PLC | HUF | 44,102 | 148,000 | 147,108 | — | (892 | ) | ||||||||||||||||||||||
Indian Rupee, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 13,287 | 176,000 | 177,835 | 1,835 | — | |||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 12,659 | 167,000 | 169,440 | 2,440 | — | |||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 12,384 | 164,000 | 165,757 | 1,757 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 101,417 | 1,364,149 | 1,357,410 | — | (6,739 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 85,263 | 1,148,939 | 1,141,199 | — | (7,740 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 30,219 | 410,280 | 404,466 | — | (5,814 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 13,363 | 176,000 | 178,851 | 2,851 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 81,493 | 1,103,381 | 1,090,745 | — | (12,636 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 33
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | ||||||||||||||||||||||||||||||
Indian Rupee (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 12,418 | $ | 164,000 | $ | 166,203 | $ | 2,203 | $ | — | |||||||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | IDR | 1,521,555 | 105,000 | 104,560 | — | (440 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 18,125,564 | 1,241,392 | 1,245,572 | 4,180 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 2,632,140 | 180,000 | 180,878 | 878 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 2,399,130 | 164,000 | 164,866 | 866 | — | |||||||||||||||||||||||
Expiring 06/16/21 | UBS AG | IDR | 1,537,000 | 106,000 | 105,621 | — | (379 | ) | ||||||||||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | ILS | 2,016 | 608,380 | 620,940 | 12,560 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 2,016 | 610,223 | 620,940 | 10,717 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 598 | 182,000 | 184,175 | 2,175 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 548 | 167,000 | 168,811 | 1,811 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 537 | 165,000 | 165,529 | 529 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | ILS | 779 | 236,464 | 239,824 | 3,360 | — | |||||||||||||||||||||||
Japanese Yen, | ||||||||||||||||||||||||||||||
Expiring 07/19/21 | BNP Paribas S.A. | JPY | 13,910 | 127,811 | 127,367 | — | (444 | ) | ||||||||||||||||||||||
Mexican Peso, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | MXN | 3,274 | 163,000 | 160,789 | — | (2,211 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 3,417 | 164,000 | 167,804 | 3,804 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 2,726 | 127,000 | 133,881 | 6,881 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 2,626 | 125,998 | 128,959 | 2,961 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | MXN | 2,611 | 125,000 | 128,205 | 3,205 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MXN | 15,343 | 734,229 | 753,393 | 19,164 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | MXN | 15,343 | 732,473 | 753,393 | 20,920 | — | |||||||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | TWD | 44,182 | 1,607,963 | 1,588,656 | — | (19,307 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | TWD | 3,666 | 130,838 | 131,822 | 984 | — |
See Notes to Financial Statements.
34
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | ||||||||||||||||||||||||||||||||
New Zealand Dollar, | ||||||||||||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | NZD | 225 | $ | 163,000 | $ | 161,086 | $ | — | $ | (1,914 | ) | ||||||||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | PEN | 746 | 207,000 | 197,159 | — | (9,841 | ) | ||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 706 | 185,000 | 186,650 | 1,650 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | PEN | 933 | 252,000 | 246,587 | — | (5,413 | ) | ||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | PEN | 720 | 195,000 | 190,401 | — | (4,599 | ) | ||||||||||||||||||||||||
Philippine Peso, | ||||||||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PHP | 20,874 | 426,000 | 429,421 | 3,421 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PHP | 10,578 | 216,000 | 217,595 | 1,595 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | PHP | 17,922 | 366,000 | 368,687 | 2,687 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | PHP | 12,539 | 256,000 | 257,956 | 1,956 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | PHP | 12,554 | 255,000 | 258,250 | 3,250 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | PHP | 10,278 | 209,000 | 211,435 | 2,435 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | PHP | 12,294 | 251,000 | 252,907 | 1,907 | — | |||||||||||||||||||||||||
Polish Zloty, | ||||||||||||||||||||||||||||||||
Expiring 07/19/21 | Barclays Bank PLC | PLN | 543 | 144,000 | 143,247 | — | (753 | ) | ||||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | PLN | 555 | 147,000 | 146,470 | — | (530 | ) | ||||||||||||||||||||||||
Russian Ruble, | ||||||||||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | RUB | 52,901 | 710,184 | 699,137 | — | (11,047 | ) | ||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | RUB | 14,378 | 196,000 | 190,020 | — | (5,980 | ) | ||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | RUB | 9,537 | 123,000 | 126,036 | 3,036 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | RUB | 52,901 | 709,132 | 699,137 | — | (9,995 | ) | ||||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | RUB | 33,411 | 446,944 | 441,564 | — | (5,380 | ) | ||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 24,564 | 327,000 | 324,632 | — | (2,368 | ) | ||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 12,074 | 162,000 | 159,564 | — | (2,436 | ) | ||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 8,393 | 108,000 | 110,921 | 2,921 | — | |||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 5,458 | 71,000 | 72,131 | 1,131 | — | |||||||||||||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | SGD | 223 | 166,000 | 167,670 | 1,670 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 35
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | ||||||||||||||||||||||||||||||
Singapore Dollar (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International | SGD | 342 | $ | 255,000 | $ | 256,811 | $ 1,811 | $ | — | ||||||||||||||||||||
South African Rand, | ||||||||||||||||||||||||||||||
Expiring 06/17/21 | BNP Paribas S.A. | ZAR | 1,212 | 82,000 | 83,027 | 1,027 | — | |||||||||||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 1,855 | 123,000 | 127,018 | 4,018 | — | |||||||||||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 1,579 | 108,000 | 108,140 | 140 | — | |||||||||||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 1,069 | 73,000 | 73,193 | 193 | — | |||||||||||||||||||||||
South Korean Won, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | KRW | 363,918 | 322,000 | 325,528 | 3,528 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | KRW | 239,701 | 214,000 | 214,415 | 415 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | KRW | 180,473 | 163,000 | 161,435 | — | (1,565 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International | KRW | 142,878 | 126,000 | 127,805 | 1,805 | — | |||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | KRW | 371,595 | 333,000 | 332,395 | — | (605 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | KRW | 148,215 | 131,000 | 132,579 | 1,579 | — | |||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | KRW | 143,396 | 127,000 | 128,269 | 1,269 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | KRW | 143,596 | 127,000 | 128,448 | 1,448 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | KRW | 183,817 | 165,000 | 164,426 | — | (574 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | KRW | 194,377 | 172,000 | 173,872 | 1,872 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | KRW | 188,134 | 167,000 | 168,287 | 1,287 | — | |||||||||||||||||||||||
Thai Baht, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | THB | 7,420 | 237,002 | 238,230 | 1,228 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | THB | 4,541 | 144,000 | 145,792 | 1,792 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 10,265 | 332,363 | 329,577 | — | (2,786 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 6,051 | 196,128 | 194,287 | — | (1,841 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 5,095 | 163,000 | 163,589 | 589 | — | |||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 19,384 | 636,577 | 622,344 | — | (14,233 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 12,998 | 414,000 | 417,322 | 3,322 | — | |||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 10,161 | 323,000 | 326,235 | 3,235 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | THB | 6,640 | 212,000 | 213,171 | 1,171 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | THB | 5,123 | 164,000 | 164,467 | 467 | — |
See Notes to Financial Statements.
36
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Purchase Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | ||||||||||||||||||||||||
Thai Baht (cont’d.), | ||||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | THB | 4,441 | $ 142,000 | $ 142,586 | $ 586 | $ — | |||||||||||||||||
Turkish Lira, | ||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | TRY | 4,082 | 523,600 | 481,271 | — | (42,329 | ) | ||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | TRY | 3,361 | 441,645 | 396,205 | — | (45,440 | ) | ||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | TRY | 4,393 | 576,905 | 517,916 | — | (58,989 | ) | ||||||||||||||||
$34,727,776 | $34,619,359 | 231,492 | (339,909 | ) | ||||||||||||||||||||
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts: | ||||||||||||||||||||||||
Brazilian Real, | ||||||||||||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 1,516 | $ | 258,000 | $ | 279,014 | $ | — | $ | (21,014 | ) | ||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 488 | 85,000 | 89,788 | — | (4,788 | ) | ||||||||||||||||
Expiring 05/04/21 | Citibank, N.A. | BRL | 487 | 83,000 | 89,669 | — | (6,669 | ) | ||||||||||||||||
Expiring 05/04/21 | Deutsche Bank AG | BRL | 2,947 | 534,807 | 542,288 | — | (7,481 | ) | ||||||||||||||||
Expiring 05/04/21 | JPMorgan Chase Bank, N.A. | BRL | 1,102 | 198,000 | 202,796 | — | (4,796 | ) | ||||||||||||||||
Expiring 05/04/21 | JPMorgan Chase Bank, N.A. | BRL | 921 | 164,000 | 169,514 | — | (5,514 | ) | ||||||||||||||||
Expiring 05/04/21 | Morgan Stanley & Co. International PLC | BRL | 1,832 | 328,000 | 337,115 | — | (9,115 | ) | ||||||||||||||||
Expiring 07/02/21 | Credit Suisse International | BRL | 588 | 109,000 | 107,675 | 1,325 | — | |||||||||||||||||
Chilean Peso, | ||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | CLP | 114,965 | 165,000 | 161,712 | 3,288 | — | |||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | CLP | 117,965 | 161,000 | 165,930 | — | (4,930 | ) | ||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 404,036 | 546,364 | 568,322 | — | (21,958 | ) | ||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 119,316 | 163,000 | 167,831 | — | (4,831 | ) | ||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | CLP | 118,085 | 161,000 | 166,100 | — | (5,100 | ) | ||||||||||||||||
Chinese Renminbi, | ||||||||||||||||||||||||
Expiring 05/14/21 | JPMorgan Chase Bank, N.A. | CNH | 994 | 142,624 | 153,339 | — | (10,715 | ) | ||||||||||||||||
Expiring 05/18/21 | Citibank, N.A. | CNH | 1,651 | 250,000 | 254,692 | — | (4,692 | ) | ||||||||||||||||
Expiring 05/18/21 | Goldman Sachs International | CNH | 4,699 | 715,000 | 724,977 | — | (9,977 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 37
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | ||||||||||||||||||||||||||||||
Chinese Renminbi (cont’d.), | ||||||||||||||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 2,563 | $ | 388,000 | $ | 395,350 | $ | — | $ | (7,350 | ) | ||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 2,091 | 319,000 | 322,551 | — | (3,551 | ) | ||||||||||||||||||||||
Expiring 05/18/21 | HSBC Bank PLC | CNH | 2,018 | 307,000 | 311,270 | — | (4,270 | ) | ||||||||||||||||||||||
Expiring 05/18/21 | Morgan Stanley & Co. International PLC | CNH | 1,564 | 239,000 | 241,313 | — | (2,313 | ) | ||||||||||||||||||||||
Colombian Peso, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | COP | 1,547,705 | 419,861 | 411,390 | 8,471 | — | |||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | COP | 1,143,956 | 313,301 | 304,071 | 9,230 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 396,822 | 109,000 | 105,478 | 3,522 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 274,651 | 76,000 | 73,004 | 2,996 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | COP | 262,968 | 72,000 | 69,899 | 2,101 | — | |||||||||||||||||||||||
Euro, | ||||||||||||||||||||||||||||||
Expiring 07/19/21 | Bank of America, N.A. | EUR | 130 | 157,025 | 156,155 | 870 | — | |||||||||||||||||||||||
Expiring 07/19/21 | BNP Paribas S.A. | EUR | 3,915 | 4,694,468 | 4,714,151 | — | (19,683 | ) | ||||||||||||||||||||||
Expiring 07/19/21 | HSBC Bank PLC | EUR | 5,189 | 6,219,074 | 6,248,990 | — | (29,916 | ) | ||||||||||||||||||||||
Expiring 07/19/21 | HSBC Bank PLC | EUR | 61 | 73,439 | 73,901 | — | (462 | ) | ||||||||||||||||||||||
Expiring 07/19/21 | Morgan Stanley & Co. International PLC | EUR | 287 | 344,535 | 345,659 | — | (1,124 | ) | ||||||||||||||||||||||
Hungarian Forint, | ||||||||||||||||||||||||||||||
Expiring 07/19/21 | Barclays Bank PLC | HUF | 200,980 | 664,057 | 670,399 | — | (6,342 | ) | ||||||||||||||||||||||
Indian Rupee, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | INR | 16,361 | 217,000 | 218,983 | — | (1,983 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | INR | 9,260 | 123,000 | 123,940 | — | (940 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | INR | 22,213 | 302,000 | 297,310 | 4,690 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | INR | 11,940 | 162,000 | 159,810 | 2,190 | — | |||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 14,722 | 199,000 | 197,045 | 1,955 | — | |||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | INR | 12,884 | 175,000 | 172,449 | 2,551 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 15,199 | 200,000 | 203,431 | — | (3,431 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 14,097 | 190,000 | 188,681 | 1,319 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 13,211 | 176,000 | 176,828 | — | (828 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | INR | 10,081 | 137,000 | 134,931 | 2,069 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 17,502 | 234,000 | 234,253 | — | (253 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | INR | 14,704 | 197,000 | 196,807 | 193 | — |
See Notes to Financial Statements.
38
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | ||||||||||||||||||||||||||||||
Indonesian Rupiah, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 2,453,388 | $ | 168,000 | $ | 168,595 | $ | — | $ | (595 | ) | ||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | IDR | 1,597,014 | 109,000 | 109,745 | — | (745 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | IDR | 2,453,304 | 168,000 | 168,589 | — | (589 | ) | ||||||||||||||||||||||
Israeli Shekel, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Bank of America, N.A. | ILS | 405 | 122,000 | 124,822 | — | (2,822 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 591 | 178,000 | 182,134 | — | (4,134 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | ILS | 420 | 126,000 | 129,506 | — | (3,506 | ) | ||||||||||||||||||||||
Japanese Yen, | ||||||||||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | JPY | 31,313 | 290,000 | 286,714 | 3,286 | — | |||||||||||||||||||||||
Expiring 07/19/21 | JPMorgan Chase Bank, N.A. | JPY | 17,414 | 160,185 | 159,450 | 735 | — | |||||||||||||||||||||||
Expiring 07/20/21 | JPMorgan Chase Bank, N.A. | JPY | 17,733 | 163,000 | 162,371 | 629 | — | |||||||||||||||||||||||
Mexican Peso, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | MXN | 1,833 | 89,000 | 89,997 | — | (997 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | BNP Paribas S.A. | MXN | 1,618 | 77,000 | 79,426 | — | (2,426 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | MXN | 6,691 | 329,796 | 328,566 | 1,230 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | MXN | 3,702 | 182,000 | 181,797 | 203 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | MXN | 2,478 | 123,827 | 121,672 | 2,155 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | MXN | 1,574 | 75,000 | 77,273 | — | (2,273 | ) | ||||||||||||||||||||||
New Taiwanese Dollar, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | TWD | 5,577 | 199,000 | 200,532 | — | (1,532 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International | TWD | 8,424 | 300,000 | 302,908 | — | (2,908 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International | TWD | 7,801 | 279,000 | 280,515 | — | (1,515 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Credit Suisse International | TWD | 4,686 | 166,000 | 168,489 | — | (2,489 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | TWD | 7,887 | 279,000 | 283,595 | — | (4,595 | ) | ||||||||||||||||||||||
Peruvian Nuevo Sol, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 1,995 | 538,505 | 527,294 | 11,211 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 615 | 164,000 | 162,698 | 1,302 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PEN | 428 | 118,000 | 113,222 | 4,778 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | PEN | 1,074 | 289,910 | 283,928 | 5,982 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | PEN | 769 | 210,744 | 203,353 | 7,391 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | PEN | 785 | 214,190 | 207,420 | 6,770 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 39
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale Contracts | Counterparty | Notional Amount (000) | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): | ||||||||||||||||||||||||||||||
Philippine Peso, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | PHP | 9,290 | $ | 191,000 | $ | 191,107 | $ | — | $ | (107 | ) | ||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | PHP | 15,672 | 322,000 | 322,393 | — | (393 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | PHP | 10,392 | 214,000 | 213,773 | 227 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Standard Chartered | PHP | 8,986 | 185,000 | 184,864 | 136 | — | |||||||||||||||||||||||
Polish Zloty, | ||||||||||||||||||||||||||||||
Expiring 07/19/21 | Citibank, N.A. | PLN | 2,406 | 632,306 | 634,703 | — | (2,397 | ) | ||||||||||||||||||||||
Russian Ruble, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | RUB | 8,380 | 111,000 | 110,752 | 248 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Deutsche Bank AG | RUB | 5,292 | 71,000 | 69,945 | 1,055 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 24,092 | 322,000 | 318,395 | 3,605 | — | |||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | RUB | 3,916 | 52,000 | 51,748 | 252 | — | |||||||||||||||||||||||
Singapore Dollar, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | SGD | 238 | 178,000 | 178,715 | — | (715 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | SGD | 321 | 239,000 | 240,818 | — | (1,818 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | SGD | 557 | 418,086 | 418,232 | — | (146 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | SGD | 286 | 215,000 | 214,784 | 216 | — | |||||||||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | SGD | 244 | 182,000 | 183,541 | — | (1,541 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | UBS AG | SGD | 280 | 210,000 | 210,598 | — | (598 | ) | ||||||||||||||||||||||
South African Rand, | ||||||||||||||||||||||||||||||
Expiring 06/17/21 | Bank of America, N.A. | ZAR | 1,940 | 124,000 | 132,851 | — | (8,851 | ) | ||||||||||||||||||||||
Expiring 06/17/21 | Barclays Bank PLC | ZAR | 5,552 | 363,796 | 380,215 | — | (16,419 | ) | ||||||||||||||||||||||
Expiring 06/17/21 | BNP Paribas S.A. | ZAR | 1,941 | 125,000 | 132,925 | — | (7,925 | ) | ||||||||||||||||||||||
Expiring 06/17/21 | Deutsche Bank AG | ZAR | 6,609 | 429,626 | 452,638 | — | (23,012 | ) | ||||||||||||||||||||||
Expiring 06/17/21 | HSBC Bank PLC | ZAR | 2,045 | 130,000 | 140,039 | — | (10,039 | ) | ||||||||||||||||||||||
Expiring 06/17/21 | JPMorgan Chase Bank, N.A. | ZAR | 14,275 | 934,034 | 977,698 | — | (43,664 | ) | ||||||||||||||||||||||
Expiring 06/17/21 | Morgan Stanley & Co. International PLC | ZAR | 2,486 | 162,000 | 170,244 | — | (8,244 | ) | ||||||||||||||||||||||
Expiring 06/17/21 | UBS AG | ZAR | 1,975 | 131,371 | 135,273 | — | (3,902 | ) | ||||||||||||||||||||||
South Korean Won, | ||||||||||||||||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | KRW | 1,954,742 | 1,711,024 | 1,748,535 | — | (37,511 | ) | ||||||||||||||||||||||
Expiring 06/16/21 | Morgan Stanley & Co. International PLC | KRW | 231,421 | 208,000 | 207,008 | 992 | — | |||||||||||||||||||||||
Expiring 06/16/21 | UBS AG | KRW | 155,067 | 136,000 | 138,709 | — | (2,709 | ) |
See Notes to Financial Statements.
40
Forward foreign currency exchange contracts outstanding at April 30, 2021 (continued):
Sale Contracts | Counterparty | Notional | Value at Settlement Date | Current Value | Unrealized Appreciation | Unrealized Depreciation | ||||||||||||||||||
OTC Forward Foreign Currency Exchange Contracts (cont’d.): |
| |||||||||||||||||||||||
Thai Baht, | ||||||||||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | THB | 7,840 | $ 254,000 | $ 251,700 | $ 2,300 | $ — | |||||||||||||||||
Expiring 06/16/21 | Goldman Sachs International | THB | 8,904 | 290,000 | 285,890 | 4,110 | — | |||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 10,244 | 328,000 | 328,896 | — | (896 | ) | ||||||||||||||||
Expiring 06/16/21 | HSBC Bank PLC | THB | 5,236 | 169,000 | 168,095 | 905 | — | |||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | THB | 7,580 | 246,000 | 243,359 | 2,641 | — | |||||||||||||||||
Turkish Lira, | ||||||||||||||||||||||||
Expiring 06/16/21 | Barclays Bank PLC | TRY | 607 | 77,000 | 71,594 | 5,406 | — | |||||||||||||||||
Expiring 06/16/21 | Citibank, N.A. | TRY | 2,230 | 252,603 | 262,906 | — | (10,303 | ) | ||||||||||||||||
Expiring 06/16/21 | JPMorgan Chase Bank, N.A. | TRY | 8,999 | 1,038,419 | 1,060,893 | — | (22,474) | |||||||||||||||||
|
$36,542,977 |
| $36,867,258 | 114,535 | (438,816 | ) | ||||||||||||||||||
|
$346,027 |
| $(778,725 | ) |
Cross currency exchange contracts outstanding at April 30, 2021:
Settlement | Type | Notional Amount (000) | In Exchange | Unrealized Appreciation | Unrealized Depreciation | Counterparty | ||||||||||||||||
OTC Cross Currency Exchange Contracts: | ||||||||||||||||||||||
07/19/21 | Buy | EUR | 137 | JPY | 17,924 | $866 | $— | JPMorgan Chase Bank, N.A. | ||||||||||||||
07/20/21 | Buy | AUD | 212 | JPY | 17,841 | 11 | — | JPMorgan Chase Bank, N.A. | ||||||||||||||
$877 | $— |
Interest rate swap agreements outstanding at April 30, 2021:
Notional Amount (000)# | Termination | Fixed Rate | Floating Rate | Value at Trade Date | Value at April 30, 2021 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||
Centrally Cleared Interest Rate Swap Agreements: | ||||||||||||||||||||||||||||||||||
CNH 2,200 | 05/11/25 | 1.900 | %(Q) | 7 Day China Fixing Repo Rates(2)(Q) | $ (2 | ) | $ | (10,687 | ) | $ | (10,685 | ) | ||||||||||||||||||||||
CNH 2,200 | 05/29/25 | 2.020 | %(Q) | 7 Day China Fixing Repo Rates(2)(Q) | 4 | (9,135 | ) | (9,139 | ) |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 41
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Interest rate swap agreements outstanding at April 30, 2021 (continued):
Notional Amount (000)# | Termination | Fixed Rate | Floating Rate | Value at Trade Date | Value at April 30, 2021 | Unrealized Appreciation (Depreciation) | ||||||||||||||||||||||||||||
Centrally Cleared Interest Rate Swap Agreements (cont’d.): | ||||||||||||||||||||||||||||||||||
CNH 7,600 | 07/24/25 | 2.525%(Q) | 7 Day China Fixing Repo Rates(2)(Q) | $ | (4,302 | ) | $ | (9,060 | ) | $ | (4,758 | ) | ||||||||||||||||||||||
MXN 34,655 | 04/28/27 | 5.930%(M) | 28 Day Mexican Interbank Rate(2)(M) | 37,752 | (29,284 | ) | (67,036 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
| |||||||||||||||||||||||||||||
$ |
33,452 |
| $ | (58,166 | ) | $ | (91,618 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
(1) | The Series pays the fixed rate and receives the floating rate. |
(2) | The Series pays the floating rate and receives the fixed rate. |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
Broker | Cash and/or Foreign Currency | Securities Market Value | ||
J.P. Morgan Securities LLC | $700,000 | $— |
Fair Value Measurements:
Various inputs are used in determining the value of the Series’ investments. These inputs are summarized in the three broad levels listed below.
Level 1—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of April 30, 2021 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||||
Investments in Securities | ||||||||||||||
Assets | ||||||||||||||
Corporate Bonds | ||||||||||||||
Azerbaijan | $ | — | $ | 1,088,750 | $— | |||||||||
Bahrain | — | 681,855 | — | |||||||||||
Brazil | — | 2,020,039 | — | |||||||||||
Chile | — | 1,165,758 | — | |||||||||||
China | — | 1,689,966 | — | |||||||||||
Colombia | — | 200,626 | — | |||||||||||
Guatemala | — | 210,607 | — | |||||||||||
India | — | 1,805,645 | — | |||||||||||
Indonesia | — | 3,529,995 | — |
See Notes to Financial Statements.
42
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Corporate Bonds (continued) | ||||||||||||
Israel | $ | — | $ | 533,801 | $— | |||||||
Jamaica | — | 190,553 | — | |||||||||
Kazakhstan | — | 1,513,109 | — | |||||||||
Kuwait | — | 489,112 | — | |||||||||
Malaysia | — | 1,999,102 | — | |||||||||
Mexico | — | 6,504,017 | — | |||||||||
Netherlands | — | 201,281 | — | |||||||||
Peru | — | 427,730 | — | |||||||||
Philippines | — | 183,825 | — | |||||||||
Russia | — | 1,750,643 | — | |||||||||
Saudi Arabia | — | 218,653 | — | |||||||||
South Africa | — | 2,772,093 | — | |||||||||
Thailand | — | 183,031 | — | |||||||||
Trinidad & Tobago | — | 185,682 | — | |||||||||
Turkey | — | 199,428 | — | |||||||||
Ukraine | — | 594,982 | — | |||||||||
United Arab Emirates | — | 1,883,083 | — | |||||||||
United States | — | 211,855 | — | |||||||||
Venezuela | — | 69,504 | — | |||||||||
Vietnam | — | 251,929 | — | |||||||||
Sovereign Bonds | ||||||||||||
Angola | — | 2,679,568 | — | |||||||||
Argentina | — | 2,047,361 | — | |||||||||
Bahrain | — | 2,144,814 | — | |||||||||
Belarus | — | 1,030,073 | — | |||||||||
Benin | — | 120,331 | — | |||||||||
Brazil | — | 3,147,599 | — | |||||||||
Bulgaria | — | 475,834 | — | |||||||||
Cameroon | — | 448,782 | — | |||||||||
Colombia | — | 2,441,592 | — | |||||||||
Congo (Republic) | — | 191,271 | — | |||||||||
Costa Rica | — | 1,636,837 | — | |||||||||
Croatia | — | 357,738 | — | |||||||||
Dominican Republic | — | 4,126,991 | — | |||||||||
Ecuador | — | 2,137,254 | — | |||||||||
Egypt | — | 2,906,254 | — | |||||||||
El Salvador | — | 1,642,482 | — | |||||||||
Gabon | — | 1,066,204 | — | |||||||||
Ghana | — | 2,353,787 | — | |||||||||
Guatemala | — | 929,518 | — | |||||||||
Honduras | — | 765,447 | — | |||||||||
Hungary | — | 1,513,715 | — | |||||||||
India | — | 399,455 | — | |||||||||
Indonesia | — | 2,637,548 | — | |||||||||
Iraq | — | 1,034,330 | — | |||||||||
Israel | — | 1,104,274 | — |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 43
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities (continued) | ||||||||||||
Assets (continued) | ||||||||||||
Sovereign Bonds (continued) | ||||||||||||
Ivory Coast | $ | — | $ | 1,842,835 | $— | |||||||
Jamaica | — | 1,207,170 | — | |||||||||
Jordan | — | 844,551 | — | |||||||||
Kazakhstan | — | 289,809 | — | |||||||||
Kenya | — | 655,135 | — | |||||||||
Lebanon | — | 412,546 | — | |||||||||
Malaysia | — | 2,014,768 | — | |||||||||
Mexico | — | 1,181,802 | — | |||||||||
Mongolia | — | 461,300 | — | |||||||||
Morocco | — | 1,082,749 | — | |||||||||
Mozambique | — | 495,295 | — | |||||||||
Namibia | — | 210,812 | — | |||||||||
Nigeria | — | 2,655,189 | — | |||||||||
Oman | — | 3,108,623 | — | |||||||||
Pakistan | — | 2,135,634 | — | |||||||||
Panama | — | 2,038,465 | — | |||||||||
Papua New Guinea | — | 206,380 | — | |||||||||
Paraguay | — | 703,261 | — | |||||||||
Peru | — | 2,133,416 | — | |||||||||
Philippines | — | 2,515,687 | — | |||||||||
Qatar | — | 3,499,236 | — | |||||||||
Romania | — | 2,616,876 | — | |||||||||
Russia | — | 2,674,396 | — | |||||||||
Saudi Arabia | — | 2,810,073 | — | |||||||||
Senegal | — | 250,099 | — | |||||||||
Serbia | — | 1,371,065 | — | |||||||||
South Africa | — | 1,010,355 | — | |||||||||
Sri Lanka | — | 1,403,265 | — | |||||||||
Turkey | — | 5,185,841 | — | |||||||||
Ukraine | — | 4,640,598 | — | |||||||||
United Arab Emirates | — | 1,626,743 | — | |||||||||
Uruguay | — | 1,903,478 | — | |||||||||
Venezuela | — | 18,822 | — | |||||||||
Zambia | — | 730,696 | — | |||||||||
Common Stock | 10,490 | — | — | |||||||||
Affiliated Mutual Fund | 2,288,223 | — | — | |||||||||
Options Purchased | — | 9,488 | — | |||||||||
|
|
|
| |||||||||
Total |
$ |
2,298,713 |
| $ | 128,042,171 | $— | ||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Options Written | $ | — | $ | (45,530 | ) | $— | ||||||
|
|
|
|
|
| |||||||
Other Financial Instruments* | ||||||||||||
Assets | ||||||||||||
Futures Contracts | $ | 178,896 | $ | — | $— |
See Notes to Financial Statements.
44
Level 1 | Level 2 | Level 3 | ||||||||||
Other Financial Instruments* (continued) | ||||||||||||
Assets (continued) | ||||||||||||
OTC Forward Foreign Currency Exchange Contracts | $ | — | $ | 346,027 | $— | |||||||
OTC Cross Currency Exchange Contracts | — | 877 | — | |||||||||
|
|
|
| |||||||||
Total |
$ |
178,896 |
| $ | 346,904 | $— | ||||||
|
|
|
|
|
| |||||||
Liabilities | ||||||||||||
Futures Contracts | $ | (122,187 | ) | $ | — | $— | ||||||
OTC Forward Foreign Currency Exchange Contracts | — | (778,725 | ) | — | ||||||||
Centrally Cleared Interest Rate Swap Agreements | — | (91,618 | ) | — | ||||||||
|
|
|
| |||||||||
Total |
$ |
(122,187 |
) | $ | (870,343 | ) | $— | |||||
|
|
|
|
|
|
* | Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and centrally cleared swap contracts, which are recorded at the unrealized appreciation (depreciation) on the instrument, and OTC swap contracts which are recorded at fair value. |
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2021 were as follows:
Sovereign Bonds | 72.3 | % | ||
Oil & Gas | 11.0 | |||
Electric | 3.6 | |||
Affiliated Mutual Funds | 1.7 | |||
Mining | 1.7 | |||
Pipelines | 1.1 | |||
Engineering & Construction | 0.9 | |||
Chemicals | 0.8 | |||
Transportation | 0.7 | |||
Real Estate | 0.6 | |||
Telecommunications | 0.6 | |||
Commercial Services | 0.6 | |||
Diversified Financial Services | 0.5 | |||
Banks | 0.4 | |||
Building Materials | 0.3 | |||
Retail | 0.3 | |||
Iron/Steel | 0.3 | |||
Lodging | 0.2 |
Media | 0.2 | % | ||
Energy-Alternate Sources | 0.2 | |||
Agriculture | 0.2 | |||
Auto Manufacturers | 0.2 | |||
Auto Parts & Equipment | 0.2 | |||
Investment Companies | 0.1 | |||
Forest Products & Paper | 0.1 | |||
Oil, Gas & Consumable Fuels | 0.0 | * | ||
Options Purchased | 0.0 | * | ||
|
| |||
|
98.8 |
| ||
Options Written | (0.0 | )* | ||
Other assets in excess of liabilities | 1.2 | |||
|
| |||
100.0 | % | |||
|
|
* | Less than +/- 0.05% |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Series invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are foreign exchange contracts risk and interest rate contracts risk. See the Notes to Financial
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 45
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Series’ financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of April 30, 2021 as presented in the Statement of Assets and Liabilities:
Asset Derivatives | Liability Derivatives | |||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Statement of Assets and Liabilities Location | Fair Value | Statement of Assets and Liabilities Location | Fair Value | ||||||||
Foreign exchange contracts | Unaffiliated investments | $ | 9,488 | Options written outstanding, at value | $ | 45,530 | ||||||
Foreign exchange contracts | Unrealized appreciation on OTC cross currency exchange contracts | 877 | — | — | ||||||||
Foreign exchange contracts | Unrealized appreciation on OTC forward foreign currency exchange contracts | 346,027 | Unrealized depreciation on OTC forward foreign currency exchange contracts | 778,725 | ||||||||
Interest rate contracts | Due from/to broker-variation margin futures | 178,896 | * | Due from/to broker-variation margin futures | 122,187 | * | ||||||
Interest rate contracts | — | — | Due from/to broker-variation margin swaps | 91,618 | * | |||||||
|
|
|
| |||||||||
$ | 535,288 | $ | 1,038,060 | |||||||||
|
|
|
|
* | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2021 are as follows:
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Options Purchased(1) | Options Written | Futures | Forward & Cross Currency Exchange Contracts | Swaps | ||||||||||||||||||||
Foreign exchange contracts | $ | (83,458 | ) | $ | 259,571 | $ | — | $ | 738,024 | $ | — | ||||||||||||||
Interest rate contracts | — | — | 291,037 | — | (9,551 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total | $ | (83,458 | ) | $ | 259,571 | $ | 291,037 | $ | 738,024 | $ | (9,551 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Included in net realized gain (loss) on investment transactions in the Statement of Operations. |
See Notes to Financial Statements.
46
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |||||||||||||||||||||||||
Derivatives not accounted for as hedging instruments, carried at fair value | Options Purchased(2) | Options Written | Futures | Forward & Cross Currency Exchange Contracts | Swaps | ||||||||||||||||||||
Foreign exchange contracts | $ | (10,093 | ) | $ | 10,989 | $ | — | $ | (567,613 | ) | $ | — | |||||||||||||
Interest rate contracts | — | — | 87,395 | — | (82,425 | ) | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
Total | $ | (10,093 | ) | $ | 10,989 | $ | 87,395 | $ | (567,613 | ) | $ | (82,425 | ) | ||||||||||||
|
|
|
|
|
|
|
|
|
|
(2) | Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations. |
For the six months ended April 30, 2021, the Series’ average volume of derivative activities is as follows:
Options Purchased(1) | Options Written(2) | Futures Contracts— Long Positions(2) | Futures Contracts— Short Positions(2) | Forward Foreign Currency Exchange Contracts— Purchased(3) | ||||
$25,720 | $6,816,307 | $13,360,786 | $17,999,093 | $30,846,954 |
Forward Foreign Currency Exchange Contracts - Sold(3) |
| Cross Currency Exchange Contracts(4) | Interest Rate Swap Agreements(2) | |||||
$29,776,090 | $527,106 | $3,676,821 |
(1) | Cost. |
(2) | Notional Amount in USD. |
(3) | Value at Settlement Date. |
(4) | Value at Trade Date. |
Average volume is based on average quarter end balances as noted for the six months ended April 30, 2021.
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Series invested in OTC derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives where the legal right to set-off exists is presented in the summary below.
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 47
Schedule of Investments (unaudited) (continued)
as of April 30, 2021
Offsetting of OTC derivative assets and liabilities:
Counterparty | Gross Amounts of Recognized Assets(1) | Gross Amounts of Recognized Liabilities(1) | Net Amounts of Recognized Assets/(Liabilities) | Collateral Pledged/(Received)(2) | Net Amount | ||||||||||||||||||||
Bank of America, N.A. | $ | 870 | $ | (11,673 | ) | $ | (10,803 | ) | $ | — | $ | (10,803 | ) | ||||||||||||
Barclays Bank PLC | 23,701 | (131,908 | ) | (108,207 | ) | — | (108,207 | ) | |||||||||||||||||
BNP Paribas S.A. | 20,398 | (51,396 | ) | (30,998 | ) | — | (30,998 | ) | |||||||||||||||||
Citibank, N.A. | 77,831 | (61,646 | ) | 16,185 | — | 16,185 | |||||||||||||||||||
Credit Suisse International | 11,217 | (6,912 | ) | 4,305 | — | 4,305 | |||||||||||||||||||
Deutsche Bank AG | 8,107 | (30,493 | ) | (22,386 | ) | — | (22,386 | ) | |||||||||||||||||
Goldman Sachs International | 21,289 | (79,560 | ) | (58,271 | ) | — | (58,271 | ) | |||||||||||||||||
HSBC Bank PLC | 30,346 | (121,411 | ) | (91,065 | ) | — | (91,065 | ) | |||||||||||||||||
JPMorgan Chase Bank, N.A. | 59,625 | (218,429 | ) | (158,804 | ) | — | (158,804 | ) | |||||||||||||||||
Morgan Stanley & Co. International PLC | 96,110 | (103,239 | ) | (7,129 | ) | — | (7,129 | ) | |||||||||||||||||
Standard Chartered | 5,429 | — | 5,429 | — | 5,429 | ||||||||||||||||||||
The Toronto-Dominion Bank | 685 | — | 685 | — | 685 | ||||||||||||||||||||
UBS AG | 784 | (7,588 | ) | (6,804 | ) | — | (6,804 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||||
$ | 356,392 | $ | (824,255 | ) | $ | (467,863 | ) | $ | — | $ | (467,863 | ) | |||||||||||||
|
|
|
|
|
|
|
|
|
|
(1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
(2) | Collateral amount disclosed by the Series is limited to the market value of financial instruments/transactions and the Series’ OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
48
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $127,334,086) | $ | 128,052,661 | ||
Affiliated investments (cost $2,288,223) | 2,288,223 | |||
Foreign currency, at value (cost $143,147) | 142,390 | |||
Dividends and interest receivable | 1,653,646 | |||
Deposit with broker for centrally cleared/exchange-traded derivatives | 700,000 | |||
Receivable for investments sold | 351,457 | |||
Unrealized appreciation on OTC forward foreign currency exchange contracts | 346,027 | |||
Receivable for Series shares sold | 309,580 | |||
Unrealized appreciation on OTC cross currency exchange contracts | 877 | |||
Prepaid expenses | 1,163 | |||
|
| |||
Total Assets | 133,846,024 | |||
|
| |||
Liabilities | ||||
Unrealized depreciation on OTC forward foreign currency exchange contracts | 778,725 | |||
Payable for investments purchased | 694,993 | |||
Payable for Series shares purchased | 317,172 | |||
Accrued expenses and other liabilities | 95,482 | |||
Management fee payable | 45,575 | |||
Options written outstanding, at value (premiums received $56,616) | 45,530 | |||
Dividends payable | 7,703 | |||
Due to broker—variation margin futures | 5,192 | |||
Due to broker—variation margin swaps | 3,409 | |||
Affiliated transfer agent fee payable | 2,059 | |||
Directors’ fees payable | 467 | |||
Distribution fee payable | 18 | |||
|
| |||
Total Liabilities | 1,996,325 | |||
|
| |||
Net Assets | $ | 131,849,699 | ||
|
| |||
Net assets were comprised of: | ||||
Common stock, at par | $ | 144,119 | ||
Paid-in capital in excess of par | 133,270,328 | |||
Total distributable earnings (loss) | (1,564,748 | ) | ||
|
| |||
Net assets, April 30, 2021 | $ | 131,849,699 | ||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 49
Statement of Assets and Liabilities (unaudited)
as of April 30, 2021
Class A | ||||||||
Net asset value, offering price and redemption price per share, ($51,402 ÷ 5,621 shares of beneficial interest issued and outstanding) | $ | 9.15 | ||||||
Maximum sales charge (3.25% of offering price) | 0.30 | |||||||
|
| |||||||
Maximum offering price to public | $ | 9.45 | ||||||
|
| |||||||
Class C | ||||||||
Net asset value, offering price and redemption price per share, ($10,642 ÷ 1,164 shares of beneficial interest issued and outstanding) | $ | 9.14 | ||||||
|
| |||||||
Class Z | ||||||||
Net asset value, offering price and redemption price per share, ($33,695,135 ÷ 3,681,501 shares of beneficial interest issued and outstanding) | $ | 9.15 | ||||||
|
| |||||||
Class R6 | ||||||||
Net asset value, offering price and redemption price per share, ($98,092,520 ÷ 10,723,572 shares of beneficial interest issued and outstanding) | $ | 9.15 | ||||||
|
| |||||||
Net Asset Values Per Share may not recalculate due to rounding. |
See Notes to Financial Statements.
50
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
Net Investment Income (Loss) | ||||
Income | ||||
Interest income | $ | 3,100,558 | ||
Affiliated dividend income | 3,080 | |||
Affiliated income from securities lending, net | 115 | |||
|
| |||
Total income | 3,103,753 | |||
|
| |||
Expenses | ||||
Management fee | 413,507 | |||
Distribution fee(a) | 102 | |||
Custodian and accounting fees | 38,480 | |||
Registration fees(a) | 22,595 | |||
Transfer agent’s fees and expenses (including affiliated expense of $5,122)(a) | 22,140 | |||
Audit fee | 19,369 | |||
Legal fees and expenses | 8,129 | |||
Directors’ fees | 5,688 | |||
Shareholders’ reports | 5,608 | |||
SEC registration fees | 2,841 | |||
Miscellaneous | 10,545 | |||
|
| |||
Total expenses | 549,004 | |||
Less: Fee waiver and/or expense reimbursement(a) | (121,722 | ) | ||
|
| |||
Net expenses | 427,282 | |||
|
| |||
Net investment income (loss) | 2,676,471 | |||
|
| |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions (including affiliated of $(102)) | (728,721 | ) | ||
Futures transactions | 291,037 | |||
Forward and cross currency contract transactions | 738,024 | |||
Options written transactions | 259,571 | |||
Swap agreement transactions | (9,551 | ) | ||
Foreign currency transactions | (142,708 | ) | ||
|
| |||
407,652 | ||||
|
| |||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 3,963,465 | |||
Futures | 87,395 | |||
Forward and cross currency contracts | (567,613 | ) | ||
Options written | 10,989 | |||
Swap agreements | (82,425 | ) | ||
Foreign currencies | 39,842 | |||
|
| |||
3,451,653 | ||||
|
| |||
Net gain (loss) on investment and foreign currency transactions | 3,859,305 | |||
|
| |||
Net Increase (Decrease) In Net Assets Resulting From Operations | $ | 6,535,776 | ||
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 51
Statement of Operations (unaudited)
Six Months Ended April 30, 2021
(a) | Class specific expenses and waivers were as follows: |
Class A | Class C | Class Z | Class R6 | |||||||||||||||||
Distribution fee | 49 | 53 | — | — | ||||||||||||||||
Registration fees | 4,715 | 4,715 | 8,450 | 4,715 | ||||||||||||||||
Transfer agent’s fees and expenses | 73 | 20 | 21,963 | 84 | ||||||||||||||||
Fee waiver and/or expense reimbursement | (4,787 | ) | (4,734 | ) | (35,528 | ) | (76,673 | ) |
See Notes to Financial Statements.
52
Statements of Changes in Net Assets (unaudited)
Six Months Ended April 30, 2021 | Year Ended October 31, 2020 | |||||||||
Increase (Decrease) in Net Assets | ||||||||||
Operations | ||||||||||
Net investment income (loss) | $ | 2,676,471 | $ | 1,898,277 | ||||||
Net realized gain (loss) on investment and foreign currency transactions | 407,652 | (968,569 | ) | |||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | 3,451,653 | (2,644,924 | ) | |||||||
|
|
|
| |||||||
Net increase (decrease) in net assets resulting from operations | 6,535,776 | (1,715,216 | ) | |||||||
|
|
|
| |||||||
Dividends and Distributions | ||||||||||
Distributions from distributable earnings | ||||||||||
Class A | (880 | ) | (875 | ) | ||||||
Class C | (198 | ) | (450 | ) | ||||||
Class Z | (644,046 | ) | (567,453 | ) | ||||||
Class R6 | (2,435,333 | ) | (1,662,605 | ) | ||||||
|
|
|
| |||||||
(3,080,457 | ) | (2,231,383 | ) | |||||||
|
|
|
| |||||||
Series share transactions | ||||||||||
Net proceeds from shares sold | 24,801,674 | 92,242,382 | ||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 3,056,133 | 2,227,284 | ||||||||
Cost of shares purchased | (16,254,709 | ) | (6,029,574 | ) | ||||||
|
|
|
| |||||||
Net increase (decrease) in net assets from Series share transactions | 11,603,098 | 88,440,092 | ||||||||
|
|
|
| |||||||
Total increase (decrease) | 15,058,417 | 84,493,493 | ||||||||
Net Assets: | ||||||||||
Beginning of period | 116,791,282 | 32,297,789 | ||||||||
|
|
|
| |||||||
End of period | $ | 131,849,699 | $ | 116,791,282 | ||||||
|
|
|
|
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 53
Notes to Financial Statements (unaudited)
1. Organization
Prudential World Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company and currently consists of seven series: PGIM Jennison Emerging Markets Equity Opportunities Fund, PGIM Jennison Global Infrastructure Fund, PGIM Jennison Global Opportunities Fund, PGIM Jennison International Opportunities Fund, PGIM QMA International Equity Fund and PGIM Emerging Markets Debt Hard Currency Fund, each of which are diversified funds for purposes of the 1940 Act, and PGIM Emerging Markets Debt Local Currency Fund, which is a non-diversified fund for purposes of the 1940 Act , and therefore, may invest a greater percentage of its assets in the securities of a single company or other issuer than a diversified fund. These financial statements relate only to the PGIM Emerging Markets Debt Hard Currency Fund (the “Series”).
The investment objective of the Series is total return, through a combination of current income and capital appreciation.
2. Accounting Policies
The Series follows the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Series in the preparation of its financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Series consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Series holds securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Series’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The Board of Directors (the “Board”) has adopted valuation procedures for security valuation under which fair valuation responsibilities have been delegated to PGIM Investments LLC (“PGIM Investments” or the “Manager”). Pursuant to the Board’s delegation, the Manager has established a Valuation Committee responsible for supervising the fair valuation of portfolio securities and other assets and liabilities. The valuation procedures permit the Series to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. A
54
record of the Valuation Committee’s actions is subject to the Board’s review at its first quarterly meeting following the quarter in which such actions take place.
For the fiscal reporting period-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Series’ foreign investments may change on days when investors cannot purchase or redeem Series shares.
Various inputs determine how the Series’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 - Fair Value Measurements and Disclosures.
Common or preferred stocks, exchange-traded funds and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Investments in open-end funds (other than exchange-traded funds) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Series utilizes the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
PGIM Emerging Markets Debt Hard Currency Fund 55
Notes to Financial Statements (unaudited) (continued)
OTC and centrally cleared derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valued using the market approach and/or income approach which generally involves obtaining data from an approved independent third-party vendor source. The Series utilizes the market approach when quoted prices in broker-dealer markets are available but also includes consideration of alternative valuation approaches, including the income approach. In the absence of reliable market quotations, the income approach is typically utilized for purposes of valuing derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument is equal to the present value of its future cash inflows or outflows. Such analysis includes projecting future cash flows and determining the discount rate (including the present value factors that affect the discount rate) used to discount the future cash flows. In addition, the third-party vendors’ valuation techniques used to derive the evaluated derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing unobservable inputs in the income approach. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value 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 the 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 Manager 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Series are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the current rates of exchange;
56
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the period, the Series does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Notwithstanding the above, the Series does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Series’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Forward and Cross Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Series enters into forward currency contracts, as defined in the prospectus, in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency and to gain exposure to certain currencies. The contracts are valued daily at current forward exchange rates and any unrealized gain (loss) is included in net unrealized appreciation or depreciation on forward and cross currency contracts. Gain (loss) is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain (loss), if any, is included in net realized gain (loss) on forward and cross currency contract transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Series’ maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life. A cross currency contract is a forward contract where a specified amount of one foreign currency will be exchanged for a specified amount of another foreign currency.
PGIM Emerging Markets Debt Hard Currency Fund 57
Notes to Financial Statements (unaudited) (continued)
Options: The Series purchased and/or wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates, value of equities or foreign currency exchange rates with respect to securities or financial instruments which the Series currently owns or intends to purchase. The Series may also use options to gain additional market exposure. The Series’ principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Series purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Series writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Series realizes a gain (loss) to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Series has realized a gain (loss). The difference between the premium and the amount received or paid at the closing of a purchase or sale transaction is also treated as a realized gain (loss). Gain (loss) on purchased options is included in net realized gain (loss) on investment transactions. Gain (loss) on written options is presented separately as net realized gain (loss) on options written transactions.
The Series, as writer of an option, may have no control over whether the underlying securities or financial instruments may be sold (called) or purchased (put). As a result, the Series bears the market risk of an unfavorable change in the price of the security or financial instrument underlying the written option. The Series, as purchaser of an OTC option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts. With exchange-traded options contracts, there is minimal counterparty credit risk to the Series since the exchanges’ clearinghouse acts as counterparty to all exchange-traded options and guarantees the options contracts against default.
When the Series writes an option on a swap, an amount equal to any premium received by the Series is recorded as a liability and is subsequently adjusted to the current market value of the written option on the swap. If a call option on a swap is exercised, the Series becomes obligated to pay a fixed interest rate (noted as the strike price) and receive a variable interest rate on a notional amount. If a put option on a swap is exercised, the Series becomes obligated to pay a variable interest rate and receive a fixed interest rate (noted as the strike price) on a notional amount. Premiums received from writing options on swaps that expire or are exercised are treated as realized gains upon the expiration or exercise of such options on swaps. The risk associated with writing put and call options on swaps is that the Series will be obligated to be party to a swap agreement if an option on a swap is exercised.
Financial Futures Contracts: 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.
58
Upon entering into a financial futures contract, the Series is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Series each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Series invested in financial futures contracts in order to hedge its existing portfolio securities, or securities the Series intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Series may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Series since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Swap Agreements: The Series entered into certain types of swap agreements detailed in the disclosures below. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the OTC market and may be executed either directly with a counterparty (“OTC-traded”) or through a central clearing facility, such as a registered exchange. Swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on swap agreements. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiums paid and swap premiums received in the Statement of Assets and Liabilities. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments.
Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Series is subject to interest rate risk exposure in the normal course of pursuing its investment objective. The Series used interest rate swaps to maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments. The Series’ maximum risk of loss from counterparty credit risk is the discounted net present value of the cash flows to be received from the counterparty over the contract’s remaining life.
Master Netting Arrangements: The Fund, on behalf of the Series, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are
PGIM Emerging Markets Debt Hard Currency Fund 59
Notes to Financial Statements (unaudited) (continued)
agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of the Series. A master netting arrangement between the Series and the counterparty permits the Series to offset amounts payable by the Series to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Series to cover the Series’ exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
The Fund, on behalf of the Series, is a party to International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Series is held in a segregated account by the Series’ custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Schedule of Investments. Collateral pledged by the Series is segregated by the Series’ custodian and identified in the Schedule of Investments. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the Series and the applicable counterparty. Collateral requirements are determined based on the Series’ net position with each counterparty. Termination events applicable to the Series may occur upon a decline in the Series’ net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Series’ counterparties to elect early termination could impact the Series’ future derivative activity.
In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified or received as collateral from the counterparty in accordance with
60
the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such OTC derivative agreements include conditions which, when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.
Short sales and OTC contracts, including forward foreign currency exchange contracts, swaps, forward rate agreements and written options involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities, if applicable. Such risks may be mitigated by engaging in master netting arrangements.
Payment-In-Kind: The Series invested in the open market or received pursuant to debt restructuring, securities that pay-in-kind (PIK) the interest due on such debt instruments. The PIK interest, computed at the contractual rate specified, is added to the existing principal balance of the debt when issued bonds have same terms as the bond or recorded as a separate bond when terms are different from the existing debt, and is recorded as interest income.
Securities Lending: The Series lends its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Series. Upon termination of the loan, the borrower will return to the Series securities identical to the loaned securities. The remaining maturities of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Series has the right to repurchase the securities in the open market using the collateral.
The Series recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Series also continues to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition, realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
PGIM Emerging Markets Debt Hard Currency Fund 61
Notes to Financial Statements (unaudited) (continued)
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Series becomes aware of such dividends. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is the Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: The Series expects to declare dividends of its net investment income daily and pay such dividends monthly. Distributions of net realized capital and currency gains, if any, are declared and paid at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate.
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
3. Agreements
The Fund, on behalf of the Series, has a management agreement with the Manager. Pursuant to this agreement, the Manager has responsibility for all investment advisory services and supervises the subadvisers’ performance of such services.
62
The Manager has entered into a subadvisory agreement with PGIM, Inc., which provides subadvisory services to the Series through its business unit PGIM Fixed Income, and PGIM Limited (each a “subadviser” and collectively the “subadvisers”). The Manager pays for the services of the subadvisers.
The management fee paid to the Manager is accrued daily and payable monthly at an annual rate of 0.65% of the Series’ average daily net assets up to and including $1 billion; 0.63% from $1 billion to $3 billion of average daily net assets; 0.61% from $3 billion to $5 billion of average daily net assets; 0.60% from $5 billion to $10 billion of average daily net assets; and 0.59% of the average daily net assets exceeding $10 billion. The effective management fee rate before any waivers and/or expense reimbursements was 0.65% for the reporting period ended April 30, 2021.
The Manager has contractually agreed, through February 28, 2022, to limit total annual operating expenses after fee waivers and/or expense reimbursements to 1.05% of average daily net assets for Class A shares, 1.80% of average daily net assets for Class C shares, 0.75% of average daily net assets for Class Z shares and 0.65% of average daily net assets for Class R6 shares. This contractual waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Series expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the recoupment for that fiscal year.
The Fund, on behalf of the Series, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C, Class Z and Class R6 shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A and Class C shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to 0.25% and 1% of the average daily net assets of the Class A and Class C shares, respectively. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z or Class R6 shares of the Series.
For the reporting period ended April 30, 2021, PIMS has not received any front-end sales charges resulting from sales of Class A shares. Additionally, for the reporting period ended
PGIM Emerging Markets Debt Hard Currency Fund 63
Notes to Financial Statements (unaudited) (continued)
April 30, 2021, PIMS did not receive any contingent deferred sales charges imposed upon redemptions by certain Class A and Class C shareholders.
PGIM Investments, PGIM, Inc., PGIM Limited and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
4. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PGIM Investments and an indirect, wholly-owned subsidiary of Prudential, serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Series may invest its overnight sweep cash in the PGIM Core Ultra Short Bond Fund (the “Core Fund”), and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), each a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments. PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Fund and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Fund and Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
The Series may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the reporting period ended April 30, 2021, no 17a-7 transactions were entered into by the Series.
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended April 30, 2021, were $26,454,387 and $12,725,605, respectively.
A summary of the cost of purchases and proceeds from sales of shares of an affiliated mutual fund for the reporting period ended April 30, 2021, is presented as follows:
64
Value, of Period | Cost of | Proceeds | Change in Unrealized Gain (Loss) | Realized Gain (Loss) | Value, End of Period | Shares, End of Period | Income | |||||||||||||||||||||
Short-Term Investments - Affiliated Mutual Funds: | ||||||||||||||||||||||||||||
PGIM Core Ultra Short Bond Fund (1)(wa) | ||||||||||||||||||||||||||||
$3,839,427 | $18,931,175 | $20,482,379 | $— | $ — | $2,288,223 | 2,288,223 | $3,080 | |||||||||||||||||||||
PGIM Institutional Money Market Fund (1)(wa) | ||||||||||||||||||||||||||||
1,047,645 | 27,961 | 1,075,504 | — | (102) | — | — | 115 | (2) | ||||||||||||||||||||
$4,887,072 | $18,959,136 | $21,557,883 | $— | $(102) | $2,288,223 | $3,195 |
(1) | The Fund did not have any capital gain distributions during the reporting period. |
(2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
(wa) | PGIM Investments LLC, the manager of the Series, also serves as manager of the PGIM Core Ultra Short Bond Fund and PGIM Institutional Money Market Fund, if applicable. |
6. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized depreciation as of April 30, 2021 were as follows:
Tax Basis | $ | 130,161,454 | ||||||
|
| |||||||
Gross Unrealized Appreciation | 5,016,683 | |||||||
Gross Unrealized Depreciation | (5,349,513 | ) | ||||||
|
| |||||||
Net Unrealized Depreciation | $ | (332,830 | ) | |||||
|
|
The GAAP basis may differ from tax basis due to certain tax-related adjustments.
For federal income tax purposes, the Series had a capital loss carryforward as of October 31, 2020 of approximately $1,167,000 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
The Manager has analyzed the Series’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Series’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Series’ U.S. federal and state tax returns for each of the three fiscal years up to the most recent fiscal year ended October 31, 2020 are subject to such review.
7. Capital and Ownership
The Series offers Class A, Class C, Class Z and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 3.25%. Investors who purchase $500,000 or more of Class A shares and sell those shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1.00% on sales although these purchases are
PGIM Emerging Markets Debt Hard Currency Fund 65
Notes to Financial Statements (unaudited) (continued)
not subject to a front-end sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class Z and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Series to one or more other share classes of the Series as presented in the table of transactions in shares of common stock, below.
The Fund is authorized to issue 5.075 billion shares of common stock, $0.01 par value per share, 600 million of which are designated as shares of the Series. The shares are currently classified and designated as follows:
Class A | 100,000,000 | |||
Class C | 100,000,000 | |||
Class Z | 200,000,000 | |||
Class R6 | 200,000,000 |
As of April 30, 2021, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of the Series as follows:
Number of Shares | Percentage of Outstanding Shares | |||
Class A | 1,193 | 21.2% | ||
Class C | 1,164 | 100.0% | ||
Class R6 | 8,748,437 | 81.6% |
At the reporting period end, the number of shareholders holding greater than 5% of the Series are as follows:
Affiliated | Unaffiliated | |||||
Number of Shareholders | Percentage of Outstanding Shares | Number of Shareholders | Percentage of Outstanding Shares | |||
2 | 60.7% | 2 | 31.6% |
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Transactions in shares of common stock were as follows:
Class A | Shares | Amount | ||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 2,388 | $ | 21,800 | |||||
Shares issued in reinvestment of dividends and distributions | 95 | 879 | ||||||
Shares purchased | (27 | ) | (251 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 2,456 | $ | 22,428 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 1,688 | $ | 15,061 | |||||
Shares issued in reinvestment of dividends and distributions | 98 | 875 | ||||||
Shares purchased | (12 | ) | (114 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,774 | $ | 15,822 | |||||
|
|
|
| |||||
Class C | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares issued in reinvestment of dividends and distributions | 21 | $ | 197 | |||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 21 | $ | 197 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares issued in reinvestment of dividends and distributions | 51 | $ | 451 | |||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 51 | $ | 451 | |||||
|
|
|
| |||||
Class Z | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 2,121,613 | $ | 19,667,845 | |||||
Shares issued in reinvestment of dividends and distributions | 66,777 | 616,849 | ||||||
Shares purchased | (647,046 | ) | (5,941,261 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,541,344 | $ | 14,343,433 | |||||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 2,197,725 | $ | 19,583,643 | |||||
Shares issued in reinvestment of dividends and distributions | 63,662 | 566,499 | ||||||
Shares purchased | (729,035 | ) | (6,023,373 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 1,532,352 | $ | 14,126,769 | |||||
|
|
|
| |||||
Class R6 | ||||||||
Six months ended April 30, 2021: | ||||||||
Shares sold | 545,660 | $ | 5,112,029 | |||||
Shares issued in reinvestment of dividends and distributions | 263,655 | 2,438,208 | ||||||
Shares purchased | (1,115,964 | ) | (10,313,197 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | (306,649 | ) | $ | (2,762,960 | ) | |||
|
|
|
| |||||
Year ended October 31, 2020: | ||||||||
Shares sold | 8,059,230 | $ | 72,643,678 | |||||
Shares issued in reinvestment of dividends and distributions | 185,305 | 1,659,459 | ||||||
Shares purchased | (643 | ) | (6,087 | ) | ||||
|
|
|
| |||||
Net increase (decrease) in shares outstanding | 8,243,892 | $ | 74,297,050 | |||||
|
|
|
|
8. Borrowings
The Fund, on behalf of the Series, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of
PGIM Emerging Markets Debt Hard Currency Fund 67
Notes to Financial Statements (unaudited) (continued)
temporary funding for capital share redemptions. The table below provides details of the SCA.
SCA | ||
Term of Commitment | 10/2/2020 – 9/30/2021 | |
Total Commitment | $ 1,200,000,000 | |
Annualized Commitment Fee on the Unused Portion of the SCA | 0.15% | |
Annualized Interest Rate on Borrowings | 1.30% plus the higher of (1) the effective federal funds rate, (2) the one-month LIBOR rate or (3) zero percent |
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Series did not utilize the SCA during the reporting period ended April 30, 2021.
9. Risks of Investing in the Series
The Series’ risks include, but are not limited to, some or all of the risks discussed below. For further information on the Series’ risks, please refer to the Series’ Prospectus and Statement of Additional Information.
Bond Obligations Risk: As with credit risk, market risk and interest rate risk, the Series’ holdings, share price, yield and total return may fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Series for redemption before it matures and the Series may lose income.
Credit Risk: This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract, may be unable or unwilling to make timely principal and interest payments, or to otherwise honor its obligations. Additionally, fixed income securities could lose value due to a loss of confidence in the ability of the issuer,
68
guarantor, insurer or counterparty to pay back debt. The longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Series. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Series will depend on the subadviser’s ability to analyze and manage derivative transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” and therefore may magnify or otherwise increase investment losses to the Series. The Series’ use of derivatives may also increase the amount of taxes payable by shareholders. Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Series’ derivatives positions. In fact, many OTC derivative instruments lack liquidity beyond the counterparty to the instrument. OTC derivative instruments also involve the risk that the other party will not meet its obligations to the Series.
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-US investors, or that prevent non-US investors from withdrawing their money at will. Countries with emerging markets can be found in regions such as Asia, Latin America, Eastern Europe and Africa.
The Series may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Foreign Securities Risk: The Series’ investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. The securities of such issuers may trade in markets that are less liquid, less regulated and more volatile than US markets. The value of the Series’ investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial instability. Lack of information may also affect the value of these securities.
Interest Rate Risk: The value of your investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration debt securities. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Series may be required to reinvest the proceeds at a
PGIM Emerging Markets Debt Hard Currency Fund 69
Notes to Financial Statements (unaudited) (continued)
lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Series’ holdings may fall sharply. This is referred to as “extension risk.” The Series may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time to time own or control a substantial amount of the Series’ shares. There is no requirement that these entities maintain their investment in the Series. There is a risk that such large shareholders or that the Series’ shareholders generally may redeem all or a substantial portion of their investments in the Series in a short period of time, which could have a significant negative impact on the Series’ NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Series’ ability to implement its investment strategy. The Series’ ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Series may invest a larger portion of its assets in cash or cash equivalents.
LIBOR Risk: Many financial instruments use or may use a floating rate based on the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks. Over the course of the last several years, global regulators have indicated an intent to phase out the use of LIBOR and similar interbank offering rates (IBOR). On November 30, 2020, the administrator of LIBOR announced a delay in the phase out of a majority of the U.S. dollar LIBOR publications until June 30, 2023, with the remainder of LIBOR publications to still end at the end of 2021. There still remains uncertainty regarding the nature of any replacement rates for LIBOR and the other IBORs as well as around fallback approaches for instruments extending beyond the any phase-out of these reference rates. The lack of consensus around replacement rates and the uncertainty of the phase out of LIBOR and other IBORs may result in increased volatility in corporate or governmental debt, bank loans, derivatives and other instruments invested in by a Fund as well as loan facilities used by a Fund. As such, the potential impact of a transition away from LIBOR on a Fund or the financial instruments in which a Fund invests cannot yet be determined. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect a Fund’s performance and/or net asset value. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not completed in a timely manner. Because the usefulness of LIBOR and the other IBORs as benchmarks could deteriorate during the transition period,
70
these effects could begin to be experienced by the end of 2021 and beyond until the anticipated discontinuance date in 2023 for the majority of the LIBOR rates.
Liquidity Risk: Liquidity risk is the risk that the Series could not meet requests to redeem shares issued by the Series without significant dilution of remaining investors’ interests in the Series. The Series may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Series is forced to sell these investments to pay redemption proceeds or for other reasons, the Series may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Series may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Series’ value or prevent the Series from being able to take advantage of other investment opportunities.
Market Disruption and Geopolitical Risks: International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Series’ investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market. Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Series invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
Market Risk: Securities markets may be volatile and the market prices of the Series’ securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Series fall, the value of your investment in the Series will decline.
10. Recent Accounting Pronouncement and Regulatory Developments
In March 2020, the FASB issued Accounting Standard Update (“ASU”) No. 2020-04, which provides optional guidance for applying GAAP to contract modifications, hedging relationships and other transactions affected by the reference rate reform if certain criteria are met. ASU 2020-04 is elective and is effective on March 12, 2020 through December 31,
PGIM Emerging Markets Debt Hard Currency Fund 71
Notes to Financial Statements (unaudited) (continued)
2022. At this time, management is evaluating the implications of certain provisions of the ASU and any impact on the financial statement disclosures has not yet been determined.
On December 3, 2020, the SEC announced that it voted to adopt a new rule that establishes an updated regulatory framework for fund valuation practices (the “Rule”). The Rule, in part, provides (i) a framework for determining fair value in good faith and (ii) provides for a fund Board’s assignment of its responsibility for the execution of valuation-related activities to a fund’s investment adviser. Further, the SEC is rescinding previously issued guidance on related issues. The Rule took effect on March 8, 2021, with a compliance date of September 8, 2022. Management is currently evaluating the Rule and its impact to the Series.
72
Financial Highlights (unaudited)
Class A Shares
| |||||||||||||||||||||||||||
Six Months Ended April 30, 2021 | |||||||||||||||||||||||||||
December 12, 2017(a) through October 31, 2018 | |||||||||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||||||||
2020 |
2019 | ||||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.86 | $9.51 | $8.88 | $10.00 | |||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.18 | 0.38 | 0.46 | 0.38 | |||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.32 | (0.56 | ) | 0.69 | (1.06 | ) | |||||||||||||||||||||
Total from investment operations | 0.50 | (0.18 | ) | 1.15 | (0.68 | ) | |||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | (0.21 | ) | (0.47 | ) | (0.52 | ) | (0.43 | ) | |||||||||||||||||||
Tax return of capital distributions | - | - | - | (0.01 | ) | ||||||||||||||||||||||
Total dividends and distributions | (0.21 | ) | (0.47 | ) | (0.52 | ) | (0.44 | ) | |||||||||||||||||||
Net asset value, end of period | $9.15 | $8.86 | $9.51 | $8.88 | |||||||||||||||||||||||
Total Return(c): | 5.48 | % | (1.82 | )% | 13.23 | % | (6.97 | )% | |||||||||||||||||||
Ratios/Supplemental Data:
| |||||||||||||||||||||||||||
Net assets, end of period (000) | $51 | $28 | $13 | $9 | |||||||||||||||||||||||
Average net assets (000) | $40 | $18 | $12 | $10 | |||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.05 | %(e) | 1.05 | % | 1.05 | % | 1.05 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 25.36 | %(e) | 66.11 | % | 115.95 | % | 358.14 | %(e) | |||||||||||||||||||
Net investment income (loss) | 3.83 | %(e) | 4.19 | % | 4.95 | % | 4.49 | %(e) | |||||||||||||||||||
Portfolio turnover rate(f)(g) | 10 | % | 23 | % | 33 | % | 17 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions (if any). |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 73
Financial Highlights (unaudited) (continued)
Class C Shares
| |||||||||||||||||||||||||||
Six Months Ended April 30, 2021 | |||||||||||||||||||||||||||
December 12, 2017(a) through October 31, 2018 | |||||||||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||||||||
2020 |
2019 | ||||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.86 | $9.51 | $8.88 | $10.00 | |||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.14 | 0.32 | 0.39 | 0.31 | |||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.31 | (0.57 | ) | 0.69 | (1.05 | ) | |||||||||||||||||||||
Total from investment operations | 0.45 | (0.25 | ) | 1.08 | (0.74 | ) | |||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | (0.17 | ) | (0.40 | ) | (0.45 | ) | (0.37 | ) | |||||||||||||||||||
Tax return of capital distributions | - | - | - | (0.01 | ) | ||||||||||||||||||||||
Total dividends and distributions | (0.17 | ) | (0.40 | ) | (0.45 | ) | (0.38 | ) | |||||||||||||||||||
Net asset value, end of period | $9.14 | $8.86 | $9.51 | $8.88 | |||||||||||||||||||||||
Total Return(c): | 5.08 | % | (2.55 | )% | 12.40 | % | (7.58 | )% | |||||||||||||||||||
Ratios/Supplemental Data:
| |||||||||||||||||||||||||||
Net assets, end of period (000) | $11 | $10 | $10 | $9 | |||||||||||||||||||||||
Average net assets (000) | $11 | $10 | $10 | $10 | |||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 1.80 | %(e) | 1.80 | % | 1.80 | % | 1.80 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 91.39 | %(e) | 114.46 | % | 139.02 | % | 359.95 | %(e) | |||||||||||||||||||
Net investment income (loss) | 3.08 | %(e) | 3.56 | % | 4.22 | % | 3.73 | %(e) | |||||||||||||||||||
Portfolio turnover rate(f)(g) | 10 | % | 23 | % | 33 | % | 17 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions (if any). |
See Notes to Financial Statements.
74
Class Z Shares
| |||||||||||||||||||||||||||
Six Months Ended April 30, 2021 | |||||||||||||||||||||||||||
December 12, 2017(a) through October 31, 2018 | |||||||||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||||||||
2020 |
2019 | ||||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.87 | $9.51 | $8.88 | $10.00 | |||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.40 | 0.48 | 0.39 | |||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.31 | (0.54 | ) | 0.69 | (1.05 | ) | |||||||||||||||||||||
Total from investment operations | 0.50 | (0.14 | ) | 1.17 | (0.66 | ) | |||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | (0.22 | ) | (0.50 | ) | (0.54 | ) | (0.45 | ) | |||||||||||||||||||
Tax return of capital distributions | - | - | - | (0.01 | ) | ||||||||||||||||||||||
Total dividends and distributions | (0.22 | ) | (0.50 | ) | (0.54 | ) | (0.46 | ) | |||||||||||||||||||
Net asset value, end of period | $9.15 | $8.87 | $9.51 | $8.88 | |||||||||||||||||||||||
Total Return(c): | 5.63 | % | (1.43 | )% | 13.51 | % | (6.79 | )% | |||||||||||||||||||
Ratios/Supplemental Data:
| |||||||||||||||||||||||||||
Net assets, end of period (000) | $33,695 | $18,982 | $5,782 | $2,234 | |||||||||||||||||||||||
Average net assets (000) | $27,494 | $10,951 | $3,498 | $766 | |||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.75 | %(e) | 0.75 | % | 0.80 | % | 0.80 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 1.01 | %(e) | 1.53 | % | 2.41 | % | 6.65 | %(e) | |||||||||||||||||||
Net investment income (loss) | 4.09 | %(e) | 4.45 | % | 5.12 | % | 4.83 | %(e) | |||||||||||||||||||
Portfolio turnover rate(f)(g) | 10 | % | 23 | % | 33 | % | 17 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions (if any). |
See Notes to Financial Statements.
PGIM Emerging Markets Debt Hard Currency Fund 75
Financial Highlights (unaudited) (continued)
Class R6 Shares
| |||||||||||||||||||||||||||
Six Months Ended April 30, 2021 | |||||||||||||||||||||||||||
December 12, 2017(a) through October 31, 2018 | |||||||||||||||||||||||||||
Year Ended October 31, | |||||||||||||||||||||||||||
2020 |
2019 | ||||||||||||||||||||||||||
Per Share Operating Performance(b): | |||||||||||||||||||||||||||
Net Asset Value, Beginning of Period | $8.86 | $9.51 | $8.88 | $10.00 | |||||||||||||||||||||||
Income (loss) from investment operations: | |||||||||||||||||||||||||||
Net investment income (loss) | 0.19 | 0.43 | 0.49 | 0.40 | |||||||||||||||||||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.32 | (0.57 | ) | 0.69 | (1.06 | ) | |||||||||||||||||||||
Total from investment operations | 0.51 | (0.14 | ) | 1.18 | (0.66 | ) | |||||||||||||||||||||
Less Dividends and Distributions: | |||||||||||||||||||||||||||
Dividends from net investment income | (0.22 | ) | (0.51 | ) | (0.55 | ) | (0.45 | ) | |||||||||||||||||||
Tax return of capital distributions | - | - | - | (0.01 | ) | ||||||||||||||||||||||
Total dividends and distributions | (0.22 | ) | (0.51 | ) | (0.55 | ) | (0.46 | ) | |||||||||||||||||||
Net asset value, end of period | $9.15 | $8.86 | $9.51 | $8.88 | |||||||||||||||||||||||
Total Return(c): | 5.80 | % | (1.44 | )% | 13.58 | % | (6.72 | )% | |||||||||||||||||||
Ratios/Supplemental Data:
| |||||||||||||||||||||||||||
Net assets, end of period (000) | $98,093 | $97,771 | $26,493 | $23,333 | |||||||||||||||||||||||
Average net assets (000) | $100,743 | $30,037 | $25,144 | $24,014 | |||||||||||||||||||||||
Ratios to average net assets(d): | |||||||||||||||||||||||||||
Expenses after waivers and/or expense reimbursement | 0.65 | %(e) | 0.66 | % | 0.74 | % | 0.74 | %(e) | |||||||||||||||||||
Expenses before waivers and/or expense reimbursement | 0.80 | %(e) | 1.16 | % | 1.49 | % | 1.76 | %(e) | |||||||||||||||||||
Net investment income (loss) | 4.24 | %(e) | 4.69 | % | 5.27 | % | 4.82 | %(e) | |||||||||||||||||||
Portfolio turnover rate(f)(g) | 10 | % | 23 | % | 33 | % | 17 | % |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Series invests. |
(e) | Annualized. |
(f) | The Series’ portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments and certain derivatives. If such transactions were included, the Series’ portfolio turnover rate may be higher. |
(g) | Portfolio turnover excludes the value of portfolio securities received or delivered as a result of in-kind fund share transactions (if any). |
See Notes to Financial Statements.
76
Series Liquidity Risk Management Program (unaudited)
Consistent with Rule 22e-4 under the 1940 Act (the “Liquidity Rule”), the Series has adopted and implemented a liquidity risk management program (the “LRMP”). The Series’ LRMP seeks to assess and manage the Series’ liquidity risk, which is defined as the risk that the Series is unable to meet investor redemption requests without significantly diluting the remaining investors’ interests in the Series. The Company’s Board of Directors (the “Board”) has approved PGIM Investments LLC (“PGIM Investments”), the Series’ investment manager, to serve as the administrator of the Series’ LRMP. As part of its responsibilities as administrator, PGIM Investments has retained a third party to perform certain functions, including providing market data and liquidity classification model information.
The Series’ LRMP includes a number of processes designed to support the assessment and management of its liquidity risk. In particular, the Series’ LRMP includes no less than annual assessments of factors that influence the Series’ liquidity risk; no less than monthly classifications of the Series’ investments into one of four liquidity classifications provided for in the Liquidity Rule; a 15% of net assets limit on the acquisition of “illiquid investments” (as defined under the Liquidity Rule); establishment of a minimum percentage of the Series’ assets to be invested in investments classified as “highly liquid” (as defined under the Liquidity Rule) if the Series does not invest primarily in highly liquid investments; and regular reporting to the Board.
At a meeting of the Board on March 2-5, 2021, PGIM Investments provided a written report (“LRMP Report”) to the Board addressing the operation, adequacy, and effectiveness of the Series’ LRMP, including any material changes to the LRMP for the period from January 1, 2020 through December 31, 2020 (“Reporting Period”). The LRMP Report concluded that the Series’ LRMP was reasonably designed to assess and manage the Series’ liquidity risk and was adequately and effectively implemented during the Reporting Period. There were no material changes to the LRMP during the Reporting Period. The LRMP Report further concluded that the Series’ investment strategies continue to be appropriate given the Series’ status as an open-end fund.
There can be no assurance that the LRMP will achieve its objectives in the future. Additional information regarding risks of investing in the Series, including liquidity risks presented by the Series’ investment portfolio, is found in the Series’ Prospectus and Statement of Additional Information.
PGIM Emerging Markets Debt Hard Currency Fund | 77 |
∎ TELEPHONE | ∎ WEBSITE | |||
655 Broad Street Newark, NJ 07102 | (800) 225-1852 | pgim.com/investments |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s subadvisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Barry H. Evans • Keith F. Hartstein • Laurie Simon Hodrick • Stuart S. Parker • Brian K. Reid • Grace C. Torres |
OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • Christian J. Kelly, Treasurer and Principal Financial and Accounting Officer • Claudia DiGiacomo, Chief Legal Officer • Dino Capasso, Chief Compliance Officer • Jonathan Corbett, Anti-Money Laundering Compliance Officer • Andrew R. French, Secretary • Melissa Gonzalez, Assistant Secretary • Diana N. Huffman, Assistant Secretary • Kelly A. Coyne, Assistant Secretary • Patrick McGuinness, Assistant Secretary • Debra Rubano, Assistant Secretary • Lana Lomuti, Assistant Treasurer • Russ Shupak, Assistant Treasurer • Elyse McLaughlin, Assistant Treasurer • Deborah Conway, Assistant Treasurer |
MANAGER | PGIM Investments LLC | 655 Broad Street Newark, NJ 07102 | ||
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SUBADVISERS | PGIM Fixed Income
PGIM Limited | 655 Broad Street Newark, NJ 07102
Grand Buildings, 1-3 Strand | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | 655 Broad Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York Mellon | 240 Greenwich Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | PricewaterhouseCoopers LLP | 300 Madison Avenue New York, NY 10017 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 | ||
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain the prospectus and summary prospectus by visiting our website at pgim.com/investments or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents online, go to pgim.com/investments/resource/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, PGIM Emerging Markets Debt Hard Currency Fund, PGIM Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to that Director at the same address. Communications are not screened before being delivered to the addressee. |
AVAILABILITY OF PORTFOLIO HOLDINGS |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year as an exhibit to its reports on Form N-PORT. The Fund’s Form N-PORT filings are available on the Commission’s website at sec.gov. |
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | MAY LOSE VALUE | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
PGIM EMERGING MARKETS DEBT HARD CURRENCY FUND
SHARE CLASS | A | C | Z | R6 | ||||
NASDAQ | PDHAX | PDHCX | PDHVX | PDHQX | ||||
CUSIP | 743969479 | 743969461 | 743969446 | 743969453 |
MF239E2
Item 2 – | Code of Ethics – Not required, as this is not an annual filing. |
Item 3 – | Audit Committee Financial Expert – Not required, as this is not an annual filing. |
Item 4 – | Principal Accountant Fees and Services – Not required, as this is not an annual filing. |
Item 5 – | Audit Committee of Listed Registrants – Not applicable. |
Item 6 – | Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
Item 7 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. |
Item 8 – | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. |
Item 9 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
Item 10 – | Submission of Matters to a Vote of Security Holders – There have been no material changes to these procedures. |
Item 11 – | 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 has been no significant change in the registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
Item 12 – | Controls and Procedures - Disclosure of Securities Lending Activities for Closed-End |
Management Investment Companies – Not applicable.
Item 13 – | Exhibits |
(a) | (1) | Code of Ethics – Not required, as this is not an annual filing. | ||||
(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT. | |||||
(3) | Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. | |||||
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT. |
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 World Fund, Inc. | |
By: | /s/ Andrew R. French | |
Andrew R. French | ||
Secretary | ||
Date: | June 18, 2021 |
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: | /s/ Stuart S. Parker | |
Stuart S. Parker | ||
President and Principal Executive Officer | ||
Date: | June 18, 2021 | |
By: | /s/ Christian J. Kelly | |
Christian J. Kelly | ||
Treasurer and Principal Financial and Accounting Officer | ||
Date: | June 18, 2021 |