Prudential Investment Portfolios 16
PGIM Income Builder Fund
(the “Fund”)
Supplement dated December 14, 2018
to the Currently Effective Summary
Prospectus, Prospectus
and Statement of Additional Information of the Fund
The Board of Trustees for the Fund has approved the addition of PGIM Limited as a subadviser to the Fund. As a result, effective December 14, 2018, the Fund’s Summary Prospectus, Prospectus and Statement of Additional Information are amended as set forth below.
This supplement should be read in conjunction with your Summary Prospectus, Statutory Prospectus and Statement of Additional Information, be retained for future reference and is in addition to any existing Fund supplements.
| 1. | In the Fund’s Summary Prospectus and Statutory Prospectus, the section entitled “Management of the Fund” is restated as follows: |
MANAGEMENT OF THE FUND
| Investment Manager | Subadviser | Portfolio Managers | Title | Service Date |
| PGIM Investments LLC | Quantitative Management Associates LLC | Edward L. Campbell, MBA, CFA | Managing Director and Portfolio Manager | September 2014 |
| Rory Cummings, MBA, CFA | Vice President and Portfolio Manager | September 2014 | ||
| Peter Vaiciunas, MBA, CFA | Senior Investment Associate and Portfolio Manager | February 2018 | ||
| Jennison Associates LLC | Ubong “Bobby” Edemeka | Managing Director | September 2014 | |
| Shaun Hong, CFA | Managing Director | September 2014 | ||
| Stephen J. Maresca, CFA | Managing Director | July 2016 | ||
| PGIM Fixed Income | David Bessey | Managing Director and Co-Head of PGIM Fixed Income's Emerging Markets Debt Team | September 2014 |
| Cathy L. Hepworth, CFA | Managing Director and Co-Head of PGIM Fixed Income's Emerging Markets Debt Team | September 2014 | ||
| Mariusz Banasiak, CFA | Principal and Head of PGIM Fixed Income’s Foreign Exchange Team | June 2017 | ||
| Robert Cignarella, CFA | Managing Director and Head of PGIM Fixed Income’s Leveraged Finance Team | September 2014 | ||
| Brian Clapp, CFA | Principal and a high yield portfolio manager | September 2014 | ||
| Robert Spano, CFA, CPA | Principal and a high yield portfolio manager | September 2014 | ||
| Daniel Thorogood, CFA | Vice President and a high yield portfolio manager | September 2014 | ||
| Ryan Kelly, CFA | Principal and a high yield portfolio manager | September 2014 | ||
| PGIM Real Estate | Rick J. Romano, CFA | Managing Director and Head of Global Real Estate Securities | September 2014 | |
| Daniel Cooney, CFA | Vice President & Portfolio Manager: North American Real Estate Securities | June 2018 | ||
| Kwok Wing Cheong, CFA | Executive Director and Portfolio Manager: Asian Real Estate Securities | May 2015 | ||
| PGIM Limited | Michael Gallagher | Executive Director and Portfolio Manager: European Real Estate Securities | September 2014 |
| 2. | In the Fund’s Statutory Prospectus, the following paragraph is added at the end of the section entitled “How the Fund is Managed—Investment Subadvisers”: |
PGIM Limited is an indirect wholly-owned subsidiary of PGIM. PGIM Limited is located at Grand Buildings, 1-3 Strand, Trafalgar Square, London WC2N 5HR. PGIM Limited provides investment advisory services with respect to securities in certain foreign markets. As of September 30, 2018, PGIM Limited managed approximately $42.7 billion in assets, and PGIM Limited-Fixed Income managed approximately $39.0 billion.
| 3. | In the Fund’s Statutory Prospectus, in the section entitled “How the Fund is Managed—Portfolio Managers”, the entry for Michael Gallagher is restated as follows: |
Michael Gallagher is an Executive Director and Portfolio Manager for PGIM Limited based in London. He is the Portfolio Manager for the European real estate securities. Mr. Gallagher has over 20 years of real estate experience and 16 years in the broader public markets. Prior to joining Prudential, Mr. Gallagher was the Assistant Fund Manager for Global Real Estate Securities at Aviva Investors (London) where he was responsible for portfolio construction and stock selection of European real estate securities.
Prior to Aviva, Mr. Gallagher was a Vice President of Citigroup (London) where he covered diversified financials and the real estate sector. At Citigroup, Mr. Gallagher was responsible for modeling and research for companies under his coverage. Mr. Gallagher came to Citigroup from Deutsche Bank (London-Frankfurt) where he was a pan-European equity analyst covering bank stocks and diversified German companies. Mr. Gallagher holds a BA in Economics from Harvard University, magna cum laude, and was the recipient of the Harvard College Scholarship. Mr. Gallagher also holds a MA in International Political Economy from Cornell University where he was awarded the Mellon Foundation Scholarship. Mr. Gallagher speaks several languages including English (native), German, French, Italian and Portuguese.
| 4. | In Part I of the Fund’s Statement of Additional Information, the tables in the section entitled “Management & Advisory Arrangements—The Fund’s Portfolio Managers: Information About Other Accounts Managed” is restated the read as follows: |
| Other Funds and Investment Accounts Managed by the Portfolio Managers | ||||
| Subadviser | Portfolio Managers | Registered Investment Companies/Total Assets |
Other Pooled Investment Vehicles/ Total Assets |
Other Accounts/ Total Assets |
| Quantitative Management Associates LLC | Edward L. Campbell, MBA, CFA | 34/$84,685,398,281 | 5/$2,497,496,407 | 21/$1,458,034,859 |
| Rory Cummings, MBA, CFA | 34/$84,685,398,281 | 5/$2,497,496,407 | 21/$1,458,034,859 | |
| Peter Vaiciunas, MBA, CFA | 34/$84,685,398,281 | 5/$2,497,496,407 | 21/$1,458,034,859 | |
| Jennison Associates LLC | Ubong “Bobby” Edemeka | 7/$5,437,741,000 | 1/$11,997,000 | None |
| Shaun Hong, CFA | 7/$5,437,741,000 | 1/$11,997,000 | None | |
| Stephen J. Maresca, CFA | 1/$529,628,000 | None | None | |
| PGIM Fixed Income* | David Bessey | 18 / $2,461,594,866 | 24 / $2,805,892,990 1 / $(22,612,782) |
165 / $39,205,724,771 1 / $9,192,032 |
| Cathy L. Hepworth, CFA | 18 / $2,461,594,866 | 24 / $2,805,892,990 1 / $(22,612,782) |
165 / $39,205,724,771 1 / $9,192,032 | |
| Mariusz Banasiak, CFA | 18 / $2,461,594,866 | 24 / $2,805,892,990 1 / $(22,612,782) |
165 / $39,205,724,771 1 / $9,192,032 | |
| Robert Cignarella, CFA | 29 / $17,633,132,240 | 19 / $4,894,475,646 | 113 / $16,493,797,580 | |
| Brian Clapp, CFA | 29 / $17,104,772,616 | 19 / $4,894,475,646 | 113 / $15,986,930,710 | |
| Robert Spano, CFA, CPA | 29 / $17,104,773,591 | 19 / $4,894,475,646 | 113 / $15,986,930,710 | |
| Daniel Thorogood, CFA | 29 / $17,104,772,616 | 19 / $4,894,475,646 | 113 / $15,986,930,710 | |
| Ryan Kelly, CFA | 29 / $17, 104,773,591 | 19 / $4,894,475,646 | 113 / $15,986,930,710 | |
| PGIM Real Estate | Rick J. Romano, CFA | 9 / $2,644,169,933 | None | 4 / $581,667,062 |
| Daniel Cooney, CFA | 9 / $2,644,169,933 | None | 4 / $581,667,062 | |
| Kwok Wing Cheong, CFA | 9 / $2,644,169,933 | None | 4 / $581,667,062 | |
| PGIM Limited | Michael Gallagher | 9 / $2,644,169,933 | None | 4 / $581,667,062 |
*Accounts are managed on a team basis. If a portfolio manager is a member of a team, any account managed by that team is included in the number of accounts and total assets for such portfolio manager (even if such portfolio manager is not primarily involved in the day-to-day management of the account).
| 5. | In Part I of the Fund’s Statement of Additional Information, the section entitled “Management & Advisory Arrangements—The Fund’s Portfolio Managers: Personal Investments and Financial Interests” is restated the read as follows: |
| Personal Investments and Financial Interests of the Portfolio Managers | ||
| Subadviser | Portfolio Managers | Investments and Other Financial Interests in the Fund and Similar Strategies* |
| Quantitative Management Associates LLC | Edward L. Campbell, MBA, CFA | $10,001 - $50,000 |
| Rory Cummings | $1 - $10,000 | |
| Peter Vaiciunas, MBA, CFA | None | |
| Jennison Associates LLC | Ubong “Bobby” Edemeka | $100,001 - $500,000 |
| Shaun Hong, CFA | Over $1,000,000 | |
| Stephen J. Maresca, CFA | $100,001 - $500,000 | |
| PGIM Fixed Income | David Bessey | None |
| Cathy L. Hepworth, CFA | None | |
| Mariusz Banasiak, CFA | None | |
| Robert Cignarella, CFA | $10,001 - $50,000 | |
| Brian Clapp, CFA | None | |
| Robert Spano, CFA, CPA | None | |
| Daniel Thorogood, CFA | None | |
| Ryan Kelly, CFA | None | |
| PGIM Real Estate | Rick J. Romano, CFA | None |
| Daniel Cooney, CFA | None | |
| Kwok Wing Cheong, CFA | None | |
| PGIM Limited | Michael Gallagher | None |
PGIM Fixed Income/PGIM Real Estate/PGIM Limited:
*“Investments and Other Financial Interests in the Fund and Similar Strategies” include direct investment in the Fund and investment in all other investment accounts which are managed by the same portfolio manager that utilize investment strategies, investment objectives and mandates that are similar to those of the Fund. “Other financial interests” are interests related to awards under a targeted long-term incentive plan, the value of which is subject to increase or decrease based on the performance of the Fund. “Other Investment Accounts” in similar strategies include other Prudential mutual funds, insurance company separate accounts, and collective and commingled trusts.
The dollar range of each Portfolio Manager’s direct investment in the Fund is as follows: David Bessey: None; Cathy L. Hepworth, CFA: None; Mariusz Banasiak, CFA: None; Robert Cignarella, CFA: $10,001 - $50,000; Brian Clapp, CFA: None; Robert Spano, CFA, CPA: None; Daniel Thorogood, CFA: None; Ryan Kelly, CFA: None; Rick J. Romano, CFA: None; Daniel Cooney, CFA: None; Kwok Wing Cheong, CFA: None; Michael Gallagher: None.
Jennison Associates LLC:
*“Investments and Other Financial Interests in the Fund and Similar Strategies” include the Fund and all other investment accounts which are managed by the same portfolio manager that utilize investment strategies, investment objectives and policies that are similar to those of the Fund. “Other Investment Accounts” in similar strategies includes other mutual funds, including Prudential mutual funds, insurance company separate accounts, and collective and commingled trusts. “Investments” include holdings in the Fund and in investment accounts in similar strategies, including shares or units that may be held through a 401(k) or other retirement plan. "Other Financial Interests" include an investment professional's notional investments in the Fund through a deferred compensation plan for Jennison employees where such notional investments track the performance of the Fund and are subject to increase or decrease based on the annual performance of the Fund. The dollar ranges for each Portfolio Manager’s investment in the Fund are as follows for each of: Shaun Hong, CFA: Over $1,000,000; Ubong “Bobby” Edemeka: $100,001 - $500,000; and Stephen J. Maresca, CFA: $100,001 - $500,000.
Quantitative Management Associates LLC:
*“Investments and Other Financial Interests in the Fund and Similar Strategies” include the Fund and all other investment accounts which are managed by the same portfolio manager that utilize investment strategies, investment objectives and policies that are similar to those of the Fund. “Other Investment Accounts” in similar strategies include other Prudential mutual funds, insurance company separate accounts, and collective and commingled trusts. “Investments” include holdings in the Fund and in investment accounts in similar strategies, including shares or units that may be held through a 401(k) plan and/or deferred compensation plan. “Other Financial Interests” include interests in the Fund and in investment accounts in similar strategies resulting from awards under an investment professional’s long-term compensation plan, where such awards track the performance of certain strategies and are subject to increase or decrease based on the annual performance of such strategies. The dollar range of each QMA portfolio manager’s investment in the Fund is as follows: Edward L. Campbell, MBA, CFA: $10,001 - $50,000; Rory Cummings, MBA, CFA: $1 - $10,000; Peter Vaiciunas, MBA, CFA: None.
LR1152