PGIM
INVESTMENTS | Bringing you the investment managers of Prudential Financial, Inc.
PGIM QMA Defensive Equity Fund
Formerly, Prudential QMA
Defensive Equity Fund
| A: PAMGX | B: DMGBX | C: PIMGX | R: SPMRX | Z: PDMZX | R6†: PAMQX |
SUMMARY PROSPECTUS
| February 26, 2018 (AS REISSUED JUNE 11, 2018 & JUNE 14, 2018)
Before you invest, you may want
to review the Fund’s Prospectus, which contains more information about the Fund and its risks. You can find the Fund's Prospectus, Statement of Additional Information (SAI), Annual Report and other
information about the Fund online at www.pgiminvestments.com/prospectus. You can also get this information at no cost by calling 1-800-225-1852 or by sending an e-mail to: prospectus@pgim.com. The Fund’s
Prospectus and SAI, both dated February 26, 2018, as supplemented and amended from time to time, and the Fund's most recent shareholder report, dated October 31, 2017, are all incorporated by reference into (legally
made a part of) this Summary Prospectus.
INVESTMENT OBJECTIVE
The investment objective of the Fund is to seek long-term capital appreciation.
FUND FEES AND EXPENSES
The tables below describe the sales charges, fees
and expenses that you may pay if you buy and hold shares of the Fund. You may qualify for sales charge discounts if you and an eligible group of related investors purchase, or agree to purchase in the future, $25,000
or more in shares of the Fund or other funds in the PGIM Funds family. More information about these discounts as well as other waivers or discounts is available from your financial professional and is explained in
Reducing or Waiving Class A's and Class C’s Sales Charges on page 23 of the Fund's Prospectus, Appendix A: Waivers and Discounts Available From Certain Financial Intermediaries on page 47 of the Fund's Prospectus and in Rights of Accumulation on page 62 of the Fund's Statement of Additional Information (SAI).
| Shareholder Fees (fees paid directly from your investment) | ||||||
| Class A | Class B | Class C | Class R | Class Z | Class R6† | |
| Maximum sales charge (load) imposed on purchases (as a percentage of offering price) | 5.50% | None | None | None | None | None |
| Maximum deferred sales charge (load) (as percentage of the lower of original purchase price or net asset value at redemption) | 1.00% | 5.00% | 1.00% | None | None | None |
| Maximum sales charge (load) imposed on reinvested dividends and other distributions | None | None | None | None | None | None |
| Redemption fee | None | None | None | None | None | None |
| Exchange fee | None | None | None | None | None | None |
| Maximum account fee (accounts under $10,000) | $15 | $15 | $15 | None | None* | None |
* Direct Transfer Agent
Accounts holding under $10,000 of Class Z shares are subject to the $15 fee.
†Formerly known as Class Q.
†Formerly known as Class Q.
| Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||||
| Class A | Class B | Class C | Class R | Class Z | Class R6(1) | |
| Management fees | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% | 0.75% |
| Distribution and service (12b-1) fees | 0.30% | 1.00% | 1.00% | 0.75% | None | None |
| Other expenses(2) | 0.25% | 0.82% | 0.25% | 207.43% | 0.42% | 12.13% |
| Total annual Fund operating expenses | 1.30% | 2.57% | 2.00% | 208.93% | 1.17% | 12.88% |
| Fee waiver and/or expense reimbursement | (0.05)% | (0.29)% | None | (207.15)% | None | (11.74)% |
| Total annual Fund operating expenses after fee waiver and/or expense reimbursement(3,4) | 1.25% | 2.28% | 2.00% | 1.78% | 1.17% | 1.14% |
(1) Formerly known as Class Q.
(2) Other expenses are based on estimates.
(3) PGIM Investments LLC (PGIM Investments) has contractually agreed, through February 29, 2020, to limit transfer agency, shareholder servicing, sub-transfer agency, and blue sky
fees, as applicable, to the extent that such fees cause the Total Annual Fund Operating Expenses to exceed 2.28% of average daily net assets for Class B shares, 1.14% of average daily net assets for Class R6 shares,
or 1.78% of average daily net assets for Class R shares. This contractual expense limitation 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 Fund expenses such as dividend and interest
expense and broker charges on short sales.
Fees and/or expenses waived and/or reimbursed by PGIM Investments may be recouped by PGIM Investments 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. This expense limitation may not be terminated prior to February 29, 2020, without the prior approval of the
Fund's Board of Trustees.
(4) The distributor has contractually agreed through February 28, 2019 to reduce its distribution and service (12b-1) fees for Class A shares to an annual rate of .25% of the
average daily net assets of Class A shares and its distribution and service (12b-1) fees for Class R shares to an annual rate of .50% of the average daily net assets of Class R shares. These waivers may not be
terminated prior to February 28, 2019 without the prior approval of the Fund’s Board of Trustees.
Example. The following hypothetical example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. It assumes that you invest $10,000 in
the Fund for the time periods indicated and then, except as indicated, redeem all your shares at the end of those periods. It assumes a 5% return on your investment each year, that the Fund's operating expenses remain
the same (except that fee waivers or reimbursements, if any, are only reflected in the 1-Year figures) and that all dividends and distributions are reinvested. Your actual costs may be higher or lower.
| If Shares Are Redeemed | If Shares Are Not Redeemed | |||||||
| Share Class | 1 Year | 3 Years | 5 Years | 10 Years | 1 Year | 3 Years | 5 Years | 10 Years |
| Class A | $670 | $935 | $1,219 | $2,027 | $670 | $935 | $1,219 | $2,027 |
| Class B | $731 | $1,043 | $1,412 | $2,399 | $231 | $743 | $1,312 | $2,399 |
| Class C | $303 | $627 | $1,078 | $2,327 | $203 | $627 | $1,078 | $2,327 |
| Class R | $181 | $11,022 | $11,022 | $11,022 | $181 | $11,022 | $11,022 | $11,022 |
| Class Z | $119 | $372 | $644 | $1,420 | $119 | $372 | $644 | $1,420 |
| Class R6† | $116 | $1,571 | $3,934 | $8,390 | $116 | $1,571 | $3,934 | $8,390 |
†Formerly known as Class Q.
Portfolio Turnover. The Fund pays transaction costs, such as commissions, when it buys and sells securities (or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher
transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in annual fund operating expenses or in the example, affect the Fund's performance.
During the Fund's most recent fiscal year, the Fund's portfolio turnover rate was 103% of the average value of its portfolio.
INVESTMENTS, RISKS AND
PERFORMANCE
Principal Investment Strategies. The Fund seeks to achieve its investment objective by investing in a well diversified portfolio of equity and equity-related securities. Under normal market conditions, the Fund will
invest at least 80% of its investable assets (net assets plus borrowings for investment purposes, if any) in equity and equity-related securities. For purposes of this 80% policy, equity and equity-related securities
include (i) common and preferred stock (and securities convertible into, or that the subadviser expects to be exchanged for, common or preferred stock), (ii) exchange-traded funds (ETFs), and (iii) synthetic
instruments and derivatives that have economic characteristics that are similar to equity securities, including certain options, futures, swaps, and exchange-traded notes (ETNs) whose interest or principal payments
are linked to one or more equity securities or equity indices. The subadviser will evaluate investments across equity market sectors, based on a variety of factors, including but not limited to momentum, valuation,
volatility and correlation, and will allocate and periodically rebalance the Fund’s portfolio across the different sectors based on changes in these factors. The subadviser may also use risk mitigation
techniques to reduce downside risk. Investment decisions will be determined using a combination of quantitative tools and the judgment of the subadviser's investment professionals.
The Fund may invest in securities
of any market capitalization. The Fund may invest up to 20% of its investable assets in debt securities of varying credit quality. The Fund may invest up to 20% of total assets in securities of foreign issuers. The
Fund may invest up to 25% of its net assets in derivatives. Although the Fund is not limited in the types of derivatives it can use, the Fund currently expects that its principal investments in derivative instruments
will include investments in futures contracts, but the Fund may also invest in options and swaps.
Principal Risks. All investments have risks to some degree. An investment in the Fund is not guaranteed to achieve its investment objective; is not a deposit with a bank; is not insured, endorsed or
guaranteed by the Federal Deposit Insurance Corporation or any other government agency; and is subject to investment risks, including possible loss of your original investment.
Equity and Equity-Related Securities
Risks. The value of a particular security could go down and you could lose money. In addition to an individual security losing value, the value of the equity markets or a sector in which the
Fund invests could go down. The Fund's holdings can vary significantly from broad market indexes and the performance of the Fund can deviate from the performance of these indexes. Different parts of a market can react
differently to adverse issuer, market, regulatory, political and economic developments.
Large Capitalization Company
Risk. Companies with large market capitalizations go in and out of favor based on market and economic conditions. Larger companies tend to be less volatile than companies with smaller market
capitalizations. In exchange for this potentially lower risk, the Fund's value may not rise or fall as much as the value of funds that emphasize companies with smaller market capitalizations.
Sector Focused Investing Risk. This is the risk that events negatively affecting an industry or market sector in which the Fund focuses its investments will cause the value of the Fund’s shares to decrease,
perhaps significantly.
Derivatives Risk. Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives
are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives 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 Fund. The Fund’s 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 Fund’s derivatives positions. In fact, many over-the-counter
derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the
Fund.
The US Government and foreign
governments are in the process of adopting and implementing regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements. The ultimate impact of the
regulations remains unclear. Additional regulation of derivatives may make derivatives more costly, limit their availability or utility, or otherwise adversely affect their performance or disrupt markets.
Management Risk. Actively managed mutual funds are subject to management risk. The subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but there can
be no guarantee that these techniques will produce the desired results. Additionally, the securities selected by the subadviser may underperform the markets in general, the Fund’s benchmark and other mutual
funds with similar investment objectives.
Risks of Small and Medium Sized
Companies. Small and medium capitalization companies usually offer a smaller range of products and services than larger companies. Smaller companies may also have limited financial resources and may
lack management depth. As a result, their prices may fluctuate more than the stocks of larger, more established companies. Historically, small and mid-cap companies have sometimes gone through extended periods when
they did not perform as well as larger companies. Small and mid-cap companies generally are less liquid than larger companies, which may make such investments more difficult to sell at the time and price that the Fund
would like.
Market Risk. Securities markets may be volatile and the market prices of the Fund’s 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 Fund fall, the value of your investment in the Fund will decline.
Economic and Market Events Risk. Events in the US and global financial markets, including actions taken by the US Federal Reserve or foreign central banks to stimulate or stabilize economic growth, may at times result in
unusually high market volatility, which could negatively impact performance. Reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
Risk of Increase in Expenses. Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table for a variety of reasons. For example, expense ratios may be higher than those shown if
average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase
expenses.
Performance. The following bar chart shows the Fund's performance for Class Z shares for each full calendar year of operations or for the last 10 calendar years, whichever is shorter. The
following table shows the average annual returns of each of the Fund’s share classes and also compares the Fund’s performance with the average annual total returns of an index or other benchmark and a
group of similar mutual funds. The bar chart and table demonstrate the risk of investing in the Fund by showing how returns can change from year to year.
Past performance (before and after
taxes) does not mean that the Fund will achieve similar results in the future. Updated Fund performance information is available online at www.pgiminvestments.com.
1 Prior to this year, the annual returns bar chart displayed returns for the Fund’s Class A shares. The Fund now shows annual returns for Class Z shares in light of the
relative growth of assets in this share class.
| Average Annual Total Returns % (including sales charges) (as of 12-31-17) | ||||
| Return Before Taxes | One Year | Five Years | Ten Years | Since Inception |
| Class A shares | 9.91% | 9.73% | 5.43% | - |
| Class B shares | 10.36% | 9.98% | 5.22% | - |
| Class C shares | 14.41% | 10.15% | 5.23% | - |
| Class R shares | 17.34% | 10.94% | 5.88% | - |
| Class R6 shares† | 16.69% | N/A | N/A | 16.16% (12-28-16) |
| Class Z Shares % | ||||
| Return Before Taxes | 16.61% | 11.24% | 6.28% | - |
| Return After Taxes on Distributions | 15.20% | 9.73% | 5.33% | - |
| Return After Taxes on Distributions and Sale of Fund Shares | 10.21% | 8.71% | 4.88% | - |
° After-tax returns are
calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may
differ from those shown. After-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns
are shown only for Class Z shares. After-tax returns for other classes will vary due to differing sales charges and expenses.
†Formerly known as Class Q shares.
Effective May 8, 2013, the Fund’s investment strategy and policies were changed and Quantitative Management Associates LLC (QMA) became the subadviser to the Fund. The Fund’s performance prior to May 8, 2013 is not attributable to QMA or to the Fund’s current investment strategies.
†Formerly known as Class Q shares.
Effective May 8, 2013, the Fund’s investment strategy and policies were changed and Quantitative Management Associates LLC (QMA) became the subadviser to the Fund. The Fund’s performance prior to May 8, 2013 is not attributable to QMA or to the Fund’s current investment strategies.
| Index % (reflects no deduction for fees, expenses or taxes) | ||||
| S&P 500 Index | 21.82% | 15.78% | 8.49% | - |
| Russell 1000 Defensive Index | 20.64% | 15.19% | 8.74% | - |
| Lipper Average % (reflects no deduction for sales charges or taxes) | ||||
| Lipper Large-Cap Core Funds Average | 20.65% | 14.26% | 7.50% | - |
MANAGEMENT OF THE FUND
| Investment Manager | Subadviser | Portfolio Managers | Title | Service Date |
| PGIM Investments LLC | Quantitative Management Associates LLC | Ted Lockwood, MBA, MS* | Managing Director | May 2013 |
| Edward L. Campbell, MBA, CFA | Managing Director and Portfolio Manager | May 2013 | ||
| Joel M. Kallman, MBA, CFA | Vice President and Portfolio Manager | May 2013 | ||
| Edward J. Lithgow, MBA | Portfolio Manager | December 2016 | ||
| Peter Vaiciunas, MBA, CFA | Portfolio Manager | February 2018 |
* Mr. Lockwood has announced
his intention to retire during the third quarter of 2018.
BUYING AND SELLING FUND
SHARES
| Class A** | Class C** | Class R** | Class Z** | Class R6† | |
| Minimum initial investment* | $2,500 | $2,500 | None | Institutions: $5 million Group Retirement Plans: None | Institutions: $5 million Group Retirement Plans: None |
| Minimum subsequent investment* | $100 | $100 | None | None | None |
* Class B shares are closed
to new purchases except for exchanges from Class B shares of another fund. Please see “How to Buy, Sell and Exchange Fund Shares—Closure of Class B Shares” in the Prospectus for more information.
** Certain share classes were generally closed to investments by new group retirement plans effective on or about June 1, 2018. Please see “How to Buy, Sell and Exchange Fund Shares—Closure of Certain Share Classes to New Group Retirement Plans” in the Prospectus for more information.
** Certain share classes were generally closed to investments by new group retirement plans effective on or about June 1, 2018. Please see “How to Buy, Sell and Exchange Fund Shares—Closure of Certain Share Classes to New Group Retirement Plans” in the Prospectus for more information.
†Formerly known as Class Q.
For Class A and Class C shares, the
minimum initial investment for retirement accounts and custodial accounts for minors is $1,000 and the minimum subsequent investment is $100. For Class A and Class C shares, the minimum initial and subsequent
investment for Automatic Investment Plan purchases is $50. Class R6 shares and Class R shares are generally not available for purchase by individuals. Class Z shares may be purchased by certain individuals, subject to
minimum investment and/or other requirements. Please see “How to Buy, Sell and Exchange Fund Shares—How to Buy Shares—Qualifying for Class R Shares,” “—Qualifying for Class Z
Shares,” and “—Qualifying for Class R6 Shares” in the Prospectus for purchase eligibility requirements.
Your financial intermediary may
impose different investment minimums. You can purchase or redeem shares on any business day that the Fund is open through the Fund's transfer agent or through servicing agents, including brokers, dealers and other
financial intermediaries appointed by the distributor to receive purchase and redemption orders. Current shareholders may also purchase or redeem shares through the Fund's website or by calling (800) 225-1852.
TAX INFORMATION
Dividends, Capital Gains and Taxes. The Fund's dividends and distributions are taxable and will be taxed as ordinary income or capital gains, unless you are investing through a tax-deferred arrangement, such as a 401(k) plan
or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal of monies from those arrangements.
PAYMENTS TO FINANCIAL
INTERMEDIaries
If you purchase Fund shares through a financial
intermediary such as a broker-dealer, bank, retirement recordkeeper or other financial services firm, the Fund or its affiliates may pay the financial intermediary for the sale of Fund shares and/or for services to
shareholders. This may create a conflict of interest by influencing the financial intermediary or its representatives to recommend the Fund over another investment. Ask your financial intermediary or representative or
visit your financial intermediary’s website for more information.
Notes
Notes
| ||
| By Mail: | Prudential Mutual Fund Services LLC, PO Box 9658, Providence, RI 02940 | |
| By Telephone: | 800-225-1852 or 973-367-3529 (outside the US) | |
| On the Internet: | www.pgiminvestments.com |
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