Supplement dated March 8, 2022
to the Currently Effective Summary Prospectus, Prospectus and
Statement of Additional Information (“SAI”)
of the Funds Listed Below
This supplement should be read in conjunction with your Summary Prospectus, Prospectus and Statement of Additional Information, be retained for future reference and is in addition to any existing Fund supplements.
Effective immediately, certain risk factors in each applicable Fund’s Summary Prospectus, Prospectus and SAI are amended and restated as set forth below. The updated risk disclosures below supplement, and should be read together with, the risks of investing in each Fund described in the applicable Summary Prospectus, Prospectus and SAI, including but not limited to, Economic and Market Events Risk, Market Risk, Emerging Markets Risk and Foreign Securities Risk, as applicable.
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The risk factor entitled “Market Disruption and Geopolitical Risks" in the section of each Fund’s Summary Prospectus entitled "Investments, Risks And Performance – Principal Risks” and in the section of each Fund’s Prospectus entitled “More About the Fund’s Principal and Non-Principal Investment Strategies, Investments and Risks—Risks of Investing in the Fund” is hereby amended and restated to read as follows: |
Market Disruption and Geopolitical Risks. Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s 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. They have also had and may continue to 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 Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
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In each Fund’s SAI, the risk factor entitled “Market Disruption and Geopolitical Risks" in the section entitled “Investments, Investment Strategies And Risk" is hereby amended and restated to read as follows: |
MARKET DISRUPTION AND GEOPOLITICAL RISKS. Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally). The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
COVID-19 and the related governmental and public responses have had and may continue to have an impact on the Fund’s 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. They have also had and may continue to 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 Fund invests. The occurrence, reoccurrence and pendency of public health epidemics could adversely affect the economies and financial markets either in specific countries or worldwide.
Global economies and financial markets have become increasingly interconnected, which increases the possibility that economic, financial or political events and factors in one country or region might adversely impact issuers in a different country or region or worldwide.
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In each applicable Fund’s SAI, the risk factor entitled “Europe Recent Events Risk” in the section entitled “Investments, Investment Strategies And Risks" is hereby amended and restated to read as follows: |
EUROPE RECENT EVENTS RISK. A number of countries in Europe have experienced severe economic and financial difficulties. Many non-governmental issuers, and even certain governments, have defaulted on, or been forced to restructure, their debts; many other issuers have faced difficulties obtaining credit or refinancing existing obligations; financial institutions have in many cases required government or central bank support, have needed to raise capital, and/or have been impaired in their ability to extend credit; and financial markets in Europe and elsewhere have experienced extreme volatility and declines in asset values and liquidity. These difficulties may continue, worsen or spread within and beyond Europe. Responses to the financial problems by European governments, central banks and others, including austerity measures and reforms, may not work, may result in social unrest and may limit future growth and economic recovery or have other unintended consequences. Further defaults or restructurings by governments and others of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world.
In addition, the United Kingdom (“UK”) has formally withdrawn from the European Union (“EU”) and one or more other countries may withdraw from the EU and/or abandon the Euro, the common currency of the EU. The UK and EU reached an agreement effective January 1, 2021 on the terms of their future trading relationship relating to the trading of goods, however, this does not cover financial services. The Fund may face risks associated with the potential uncertainty and consequences of the new relationship between the UK and EU, including volatility in exchange and interest rates and politically divergent national laws and regulations.
In addition, Russia launched a large-scale invasion of Ukraine on February 24, 2022, significantly amplifying already existing geopolitical tensions. The United States and many other countries have instituted various economic sanctions against Russian individuals and entities (including corporate and banking). The extent and duration of the military action, sanctions imposed and other punitive action taken and resulting future market disruptions in Europe and globally cannot be easily predicted, but could be significant and have a severe adverse effect on Russia and Europe in general, including significant negative impacts on the economy, sovereign debt and the markets for certain securities and commodities, such as oil and natural gas. This conflict may expand and military attacks could occur elsewhere in Europe. The potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets. Europe has also been struggling with mass migration. The impact of these actions, especially if they occur in a disorderly fashion, is not clear but could be significant and far-reaching. Whether or not the Fund invests in securities of issuers located in Europe or with significant exposure to European issuers or countries, these events could negatively affect the value and relative liquidity of the Fund’s investments. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero. The occurrence of terrorist incidents throughout Europe could also impact financial markets globally.
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In each applicable Fund’s SAI, the risk factor entitled “Russian Federation Investment Risk" in the section entitled “Investments, Investment Strategies And Risks" is hereby amended and restated to read as follows: |
RUSSIAN FEDERATION INVESTMENT RISK. Investing in the Russian securities market involves a high degree of risk and special considerations not typically associated with investing in the U.S. securities market, and should be considered highly speculative. Risks include: the absence of developed legal structures governing private and foreign investments and private property; the possibility of the loss of all or a substantial portion of the Fund’s assets invested in Russia as a result of expropriation; devaluation; certain national policies which may restrict the Fund’s investment opportunities, including, without limitation, restrictions on investing in issuers or industries deemed sensitive to relevant national interests; and potentially greater price volatility in, significantly smaller capitalization of, and relative illiquidity of, the Russian market. There can also be no assurance that the Fund’s investments in the Russian securities market would not be expropriated, nationalized or otherwise confiscated. In the event of the settlement of any such claims or such expropriation, nationalization or other confiscation, the Fund could lose its entire investment. In addition, it may be difficult and more costly to obtain and enforce a judgment in the Russian court system.
Russia is also subject to a high degree of economic, political and social instability. Such instability may result from, among other things, the following: (i) an authoritarian government or military involvement in political and economic decision-making, including changes in government through extra-constitutional means; (ii) popular unrest associated with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and (v) ethnic, religious and racial discord.
The Russian economy is heavily dependent upon the export of a range of commodities including most industrial metals, forestry products and oil and gas. Accordingly, it is strongly affected by international commodity prices and is particularly vulnerable to any weakening in global demand for these products. Any acts of terrorism or armed conflicts in Russia or internationally could have an adverse effect on the financial and commodities markets and the global economy. As Russia produces and exports large amounts of crude oil and gas, any acts of terrorism, armed conflict or government interventions (such as the imposition of sanctions or other governmental restrictions on trade) causing disruptions of Russian oil and gas exports could negatively impact the Russian economy and, thus, adversely affect the financial condition, results of operations or prospects of related companies.
Russia launched a large-scale invasion of Ukraine on February 24, 2022, significantly amplifying already existing geopolitical tensions. Actual and threatened responses to such military action may impact the markets for certain Russian commodities and may likely have collateral impacts on markets globally. The extent and duration of the military action, resulting sanctions imposed and other punitive action taken and resulting future market disruptions, including declines in its stock markets, the value of Russian sovereign debt and the value of the ruble against the U.S. dollar, cannot be easily predicted, but could be significant. Any such disruptions caused by Russian military action or other actions (including cyberattacks and espionage) or resulting actual and threatened responses to such activity, including purchasing and financing restrictions, boycotts or changes in consumer or purchaser preferences, sanctions, tariffs or cyberattacks on the Russian government, Russian companies or Russian individuals, including politicians, may impact Russia’s economy and the Fund's investments in Russian securities.
As a result of political and military actions undertaken by Russia, the United States and many other countries have instituted various economic sanctions against Russian individuals and entities (including corporate and banking). These sanctioning bodies, or others, may impose additional economic sanctions, or take other actions, against individuals and/or companies in specific sectors of the Russian economy, including, but not limited to, the financial services, energy, metals and mining, engineering, and defense and defense-related materials sectors. These sanctions, and the threat of additional punitive actions, could have adverse consequences for the Russian economy, including continued weakening of the Russian currency, downgrades in Russia’s credit rating, and a significant decline in the value and liquidity of securities issued by Russian companies or the Russian government. Russia’s invasion, the responses of countries and political bodies to Russia’s actions, and the potential for wider conflict may increase financial market volatility and could have severe adverse effects on regional and global economic markets, including the markets for certain securities and commodities, such as oil and natural gas. Any of these events could negatively impact the Fund’s investment in Russian securities. These sanctions have the possibility of impairing the Fund’s ability to invest in accordance with its investment strategy and/or to meet its investment objective. For example, the Fund may be prohibited from investing in securities issued by companies subject to such sanctions. In addition, these sanctions may require a fund to freeze its existing investments in Russian securities, thereby prohibiting the Fund from buying, selling, receiving or delivering those securities or other financial instruments. It is also possible that any counter measures or retaliatory action by Russia could further impair the value and liquidity of securities issued by Russian companies and may have an impact on the economies of other European countries and globally as well. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
The Russian government may exercise substantial influence over many aspects of the Russian private sector and may own or control many companies. Future government actions could have a significant effect on the economic conditions in Russia, which could have a negative impact on private sector companies. There is also the possibility of diplomatic developments that could adversely affect investments in Russia. In recent years, the Russian government has taken bold steps, including military actions and alleged state sponsored cyberattacks against foreign companies and governments, to reassert its regional geopolitical influence. Such steps may increase tensions between Russia, its neighbors and Western countries, and may negatively affect its economic growth.
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This supplement should be read in conjunction with your Summary Prospectus, Prospectus and Statement of Additional Information (“SAI”), should be retained for future reference and is in addition to any existing Fund supplements.
LR 1398
PGIM Funds
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The Prudential Investment Portfolios, Inc. PGIM Balanced Fund PGIM Jennison Focused Value Fund PGIM Jennison Growth Fund Prudential Investment Portfolios 2 PGIM Quant Solutions Commodity Strategies Fund PGIM Core Conservative Bond Fund PGIM Jennison Small-Cap Core Equity Fund PGIM Quant Solutions Emerging Markets Equity Fund PGIM Quant Solutions International Developed Markets Index Fund PGIM Quant Solutions Mid-Cap Core Equity Fund PGIM Quant Solutions US Broad Market Index Fund PGIM TIPS Fund Prudential Investment Portfolios 3 PGIM Global Dynamic Bond Fund PGIM Jennison Focused Growth Fund PGIM Quant Solutions Large-Cap Value Fund PGIM Real Assets Fund PGIM Strategic Bond Fund Prudential Investment Portfolios 4 PGIM Muni High Income Fund Prudential Investment Portfolios 5 PGIM 60/40 Allocation Fund PGIM Jennison Diversified Growth Fund PGIM Jennison Rising Dividend Fund Prudential Day One Income Fund Prudential Day One 2015 Fund Prudential Day One 2020 Fund Prudential Day One 2025 Fund Prudential Day One 2030 Fund Prudential Day One 2035 Fund Prudential Day One 2040 Fund Prudential Day One 2045 Fund Prudential Day One 2050 Fund Prudential Day One 2055 Fund Prudential Day One 2060 Fund Prudential Day One 2065 Fund Prudential Investment Portfolios 6 PGIM California Muni Income Fund Prudential Investment Portfolios 7 PGIM Jennison Value Fund Prudential Investment Portfolios 8 PGIM Quant Solutions Stock Index Fund PGIM Securitized Credit Fund Prudential Investment Portfolios 9 PGIM Absolute Return Bond Fund PGIM International Bond Fund PGIM Quant Solutions Large-Cap Core Equity Fund PGIM Real Estate Income Fund PGIM Select Real Estate Fund Prudential Investment Portfolios, Inc. 10 PGIM Jennison Global Equity Income Fund PGIM Quant Solutions Mid-Cap Value Fund Prudential Investment Portfolios 12 PGIM Global Real Estate Fund PGIM Jennison Technology Fund PGIM Short Duration Muni Fund PGIM US Real Estate Fund
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Prudential Government Money Market Fund, Inc. PGIM Government Money Market Fund Prudential Investment Portfolios, Inc. 14 PGIM Floating Rate Income Fund PGIM Government Income Fund Prudential Investment Portfolios, Inc. 15 PGIM High Yield Fund PGIM Short Duration High Yield Income Fund Prudential Investment Portfolios 16 PGIM Income Builder Fund Prudential Investment Portfolios, Inc. 17 PGIM Short Duration Multi-Sector Bond Fund PGIM Total Return Bond Fund Prudential Investment Portfolios 18 PGIM Jennison MLP Fund Prudential Global Total Return Fund, Inc. PGIM Global Total Return Fund PGIM Global Total Return (USD Hedged) Fund Prudential Jennison Blend Fund, Inc. PGIM Jennison Blend Fund Prudential Jennison Mid-Cap Growth Fund, Inc. PGIM Jennison Mid-Cap Growth Fund Prudential Jennison Natural Resources Fund, Inc. PGIM Jennison Natural Resources Fund Prudential Jennison Small Company Fund, Inc. PGIM Jennison Small Company Fund Prudential National Muni Fund, Inc. PGIM National Muni Fund Prudential Sector Funds, Inc. PGIM Jennison Financial Services Fund PGIM Jennison Health Sciences Fund PGIM Jennison Utility Fund Prudential Short-Term Corporate Bond Fund, Inc. PGIM Short-Term Corporate Bond Fund Prudential World Fund, Inc. PGIM Emerging Markets Debt Hard Currency Fund PGIM Emerging Markets Debt Local Currency Fund PGIM Jennison Emerging Markets Equity Opportunities Fund PGIM Jennison Global Infrastructure Fund PGIM Jennison Global Opportunities Fund PGIM Jennison International Opportunities Fund PGIM Quant Solutions International Equity Fund The Target Portfolio Trust PGIM Core Bond Fund PGIM Corporate Bond Fund PGIM Quant Solutions Small-Cap Value Fund PGIM ETF Trust PGIM Ultra Short Bond ETF PGIM Active High Yield Bond ETF PGIM Quant Solutions Strategic Alpha International Equity ETF PGIM Total Return Bond ETF
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