PGIM HIGH YIELD FUND | |||||||
A: PBHAX | B: PBHYX | C: PRHCX | R: JDYRX | Z: PHYZX | R2: PHYEX | R4: PHYGX | R6: PHYQX |
IMPORTANT INFORMATION |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. |
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-225-1852 or by sending an e-mail request to PGIM Investments at shareholderreports@pgim.com. |
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-225-1852 or send an email request to shareholderreports@pgim.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund. |
To enroll in e-delivery, go to pgiminvestments.com/edelivery | |
As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved the Fund's shares, nor has the SEC determined that this prospectus is complete or accurate. It is a criminal offense to state otherwise.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. © 2019 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. | ![]() |
Shareholder Fees (fees paid directly from your investment) | ||||||||
Class A | Class B | Class C | Class R | Class Z | Class R2 | Class R4 | Class R6 | |
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) | 3.25% | None | None | None | None | None | None | None |
Maximum deferred sales charge (load) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1.00% | 5.00% | 1.00% | None | None | None | None | None |
Maximum sales charge (load) imposed on reinvested dividends and other distributions | None | None | None | None | None | None | None | None |
Redemption fee | None | None | None | None | None | None | None | None |
Exchange fee | None | None | None | None | None | None | None | None |
Maximum account fee (accounts under $10,000) | $15 | $15 | $15 | None | None* | None | None | None |
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 R2 | Class R4 | Class R6 | |
Management fees | 0.38% | 0.38% | 0.38% | 0.38% | 0.38% | 0.38% | 0.38% | 0.38% |
Distribution and service (12b-1) fees | 0.25% | 0.75% | 1.00% | 0.75% | None | 0.25% | None | None |
Other expenses: | 0.17% | 0.15% | 0.11% | 0.21% | 0.16% | 0.59% | 0.69% | 0.02% |
Shareholder service fee | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% | 0.10%(1) | 0.10%(1) | 0.00% |
Remainder of other expenses | 0.17% | 0.15% | 0.11% | 0.21% | 0.16% | 0.49% | 0.59% | 0.02% |
Total annual Fund operating expenses | 0.80% | 1.28% | 1.49% | 1.34% | 0.54% | 1.22% | 1.07% | 0.40% |
Fee waiver and/or expense reimbursement | None | None | None | (0.25)% | None | (0.31)% | (0.41)% | None |
Total annual Fund operating expenses after fee waiver and/or expense reimbursement(2,3) | 0.80% | 1.28% | 1.49% | 1.09% | 0.54% | 0.91% | 0.66% | 0.40% |
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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 | $404 | $572 | $755 | $1,283 | $404 | $572 | $755 | $1,283 |
Class B | $630 | $706 | $802 | $1,351 | $130 | $406 | $702 | $1,351 |
Class C | $252 | $471 | $813 | $1,779 | $152 | $471 | $813 | $1,779 |
Class R | $111 | $400 | $710 | $1,591 | $111 | $400 | $710 | $1,591 |
Class Z | $55 | $173 | $302 | $677 | $55 | $173 | $302 | $677 |
Class R2 | $93 | $357 | $641 | $1,450 | $93 | $357 | $641 | $1,450 |
Class R4 | $67 | $300 | $550 | $1,269 | $67 | $300 | $550 | $1,269 |
Class R6 | $41 | $128 | $224 | $505 | $41 | $128 | $224 | $505 |
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Average Annual Total Returns % (including sales charges) (as of 12-31-18) | ||||
Return Before Taxes | One Year | Five Years | Ten Years | Since Inception |
Class A Shares | -4.76% | 3.23% | 9.74% | - |
Class B Shares | -6.68% | 3.25% | 9.54% | - |
Class C Shares | -3.20% | 3.15% | 9.34% | - |
Class R Shares | -1.85% | 3.65% | 9.82% | - |
Class R2 Shares | -1.48% | N/A | N/A | -1.40% (12-27-17) |
Class R4 Shares | -1.22% | N/A | N/A | -1.15% (12-27-17) |
Class R6 Shares | -1.18% | 4.28% | N/A | 6.05% (10-31-11) |
Class Z Shares % (as of 12-31-18) | ||||
Return Before Taxes | -1.29% | 4.20% | 10.40% | - |
Return After Taxes on Distributions | -3.76% | 1.40% | 7.34% | - |
Return After Taxes on Distribution and Sale of Fund Shares | -0.73% | 1.93% | 6.98% | - |
Index % (reflects no deduction for fees, expenses or taxes) (as of 12-31-18) | ||||
Bloomberg Barclays US Corporate High Yield 1% Issuer Capped Index | -2.21% | 3.80% | 11.14% | - |
Lipper Average % (reflects no deduction for sales charges or taxes) (as of 12-31-18) | ||||
Lipper High Yield Funds Average | -2.84% | 2.65% | 9.25% | - |
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Investment Manager | Subadvisers | Portfolio Managers | Title | Service Date |
PGIM Investments LLC | PGIM Fixed Income PGIM Limited | Robert Cignarella, CFA | Managing Director | March 2014 |
Robert Spano, CFA, CPA | Principal | October 2007 | ||
Ryan Kelly, CFA | Principal | February 2012 | ||
Brian Clapp, CFA | Principal | June 2013 | ||
Daniel Thorogood, CFA | Principal | March 2014 |
Class A** | Class C** | Class R** | Class Z** | Class R2 | Class R4 | Class R6 | |
Minimum initial investment* | $2,500 (prior to November 1, 2019) $1,000 (on/after November 1, 2019) | $2,500 (prior to November 1, 2019) $1,000 (on/after November 1, 2019) | None | None | None | None | None |
Minimum subsequent investment* | $100 | $100 | None | None | None | None | None |
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Principal Strategies: Investment Limits |
■ High Yield Fixed-Income Securities (Junk Bonds): At least 80% of investable assets |
Non-Principal Strategies: Investment Limits |
■ Foreign Fixed-Income Securities: Up to 20% of investable assets in US currency denominated securities of foreign issuers; up to 10% in non-US currency denominated securities of foreign or domestic issuers■ Loan Participations and Assignments: Percentage varies■ Zero coupon bonds, PIK and deferred payment securities: Percentage varies■ Derivatives: Up to 25% of net assets■ Equity and Equity-related securities: Up to 10% of investable assets■ Illiquid Securities: Up to 15% of net assets |
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Non-Principal Strategies: Investment Limits |
■ US Government securities or high-quality bank or corporate obligations: Up to 20% of investable assets; up to 100% on temporary basis■ Asset-Backed Securities: Percentage varies■ Convertible Securities: Percentage varies■ Credit-Linked Securities: Up to 15% of net assets■ Short Sales: Up to 25% of net assets (excluding short sales against-the-box) |
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Expected Distribution Schedule* | |
Net Investment Income | Monthly |
Short-Term Capital Gains | Annually |
Long-Term Capital Gains | Annually |
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Share Class | Eligibility |
Class A** | Retail investors |
Class B* | Retail investors |
Class C** | Retail investors |
Class R** | Certain group retirement plans |
Class Z** | Certain group retirement plans, institutional investors and certain other investors |
Class R2 | Certain group retirement plans and certain other investors |
Class R4 | Certain group retirement plans and certain other investors |
Class R6 | Certain group retirement plans, institutional investors and certain other investors |
■ | Class A shares purchased in amounts of less than $500,000 require you to pay a sales charge at the time of purchase, but the operating expenses of Class A shares are lower than the operating expenses of Class C shares. |
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Investors who purchase $500,000 or more of Class A shares and sell these shares within 12 months of purchase are also subject to a contingent deferred sales charge (CDSC) of 1.00%. The CDSC is waived for certain retirement and/or benefit plans. | |
■ | Class C shares do not require you to pay a sales charge at the time of purchase, but do require you to pay a CDSC if you sell your shares within 12 months of purchase. The operating expenses of Class C shares are higher than the operating expenses of Class A shares. |
■ | The amount of your investment and any previous or planned future investments, which may qualify you for reduced sales charges for Class A shares under Rights of Accumulation or a Letter of Intent. |
■ | The length of time you expect to hold the shares and the impact of varying distribution fees. Over time, these fees will increase the cost of your investment and may cost you more than paying other types of sales charges. For this reason, Class C shares are generally appropriate only for investors who plan to hold their shares for no more than 3 years. |
■ | The different sales charges that apply to each share class—Class A's front-end sales charge (and, in certain instances, CDSC) vs. Class C's CDSC. |
■ | Class C shares purchased in single amounts greater than $500,000 are generally less advantageous than purchasing Class A shares. Purchase orders for Class C shares above this amount generally will not be accepted. |
■ | If you purchase Class Z shares through a broker acting solely as an agent on behalf of its customers pursuant to an agreement with PIMS, the broker may charge you a commission in an amount determined and separately disclosed to you by the broker. |
■ | Because Class Z, Class R and Class R6 shares have lower operating expenses than Class A or Class C shares, as applicable, you should consider whether you are eligible to purchase such share classes. |
Class A** | Class B* | Class C*** | Class R | Class Z*** | Class R2 | Class R4 | Class R6 | |
Minimum purchase amount | $2,500 (prior to November 1, 2019) $1,000 (on/after November 1, 2019) | $2,500 | $2,500 (prior to November 1, 2019) $1,000 (on/after November 1, 2019) | None | None | None | None | None |
Minimum amount for subsequent purchases | $100 | $100 | $100 | None | None | None | None | None |
Maximum initial sales charge | 3.25% of the public offering price | None | None | None | None | None | None | None |
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Class A** | Class B* | Class C*** | Class R | Class Z*** | Class R2 | Class R4 | Class R6 | |
Contingent Deferred Sales Charge (CDSC) (as a percentage of the lower of the original purchase price or net asset value at redemption) | 1.00% on sales of $500,000 or more made within 12 months of purchase | 5.00%(Yr.1) 4.00%(Yr.2) 3.00%(Yr.3) 2.00%(Yr.4) 1.00%(Yr.5) 1.00%(Yr.6) 0.00%(Yr.7) | 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) | 0.25% | 0.75% | 1.00% | 0.75% (0.50% currently) | None | 0.25% | None | None |
Shareholder service fees | None | None | None | None | None | 0.10% | 0.10% | None |
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Class A | Class C | Class Z | Class R | |
Existing Investors (Group Retirement Plans, IRAs, and all other investors) | No Change | No Change | No Change | No Change |
New Group Retirement Plans | Closed to group retirement plans wishing to add the share classes as new additions to plan menus on June 1, 2018, subject to certain exceptions below | |||
New IRAs | No Change | No Change | No Change | Closed to all new investors on June 1, 2018, subject to certain exceptions below |
All Other New Investors | No Change | No Change | No Change |
■ | Eligible group retirement plans that are exercising their one-time 90-day repurchase privilege in the Fund will be permitted to purchase such share classes. |
■ | Plan participants in a group retirement plan that offers Class A, Class C, Class R or Class Z shares of the Fund, as applicable, as of the Effective Date will be permitted to purchase such share classes of the Fund, even if the plan participant did not own shares of that class of the Fund as of the Effective Date. |
■ | Certain new group retirement plans will be permitted to offer such share classes of the Fund after the Effective Date, provided that the plan or its financial intermediary or other agent has or is actively negotiating a contractual agreement with the Fund’s distributor or service provider to offer such share classes of the Fund prior to or on the Effective Date. |
■ | New group retirement plans that combine with, replace or are otherwise affiliated with a current plan that invests in such share classes prior to or on the Effective Date will be permitted to purchase such share classes. |
■ | The Fund also reserves the right to refuse any purchase order that might disrupt management of the Fund or to otherwise modify the closure policy at any time on a case-by-case basis. |
■ | Shareholders owning Class C shares may continue to hold their Class C shares until the shares automatically convert to Class A shares under the conversion schedule, or until the shareholder redeems their Class C shares. |
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Amount of Purchase | Sales Charge as a % of Offering Price* | Sales Charge as a % of Amount Invested* | Dealer Reallowance*** |
Less than $100,000 | 3.25% | 3.36% | 3.00% |
$100,000 to $249,999 | 3.00% | 3.09% | 2.75% |
$250,000 to $499,999 | 2.25% | 2.30% | 2.25% |
$500,000 to $4,999,999** | None | None | 1.00% |
$5,000,000 to $9,999,999** | None | None | 0.50% |
$10,000,000 and over** | None | None | 0.25% |
■ | Use your Rights of Accumulation, which allow you or an eligible group of related investors to combine (1) the current value of Class A, Class B and Class C PGIM Fund shares you or the group already own, (2) the value of money market shares (other than Direct Purchase money market shares) you or an eligible group of related investors have received for shares of other PGIM Funds in an exchange transaction, and (3) the value of the shares you or an eligible group of related investors are purchasing; or |
■ | Sign a Letter of Intent, stating in writing that you or an eligible group of related investors will purchase a certain amount of shares in the Fund and other PGIM Funds within 13 months. |
■ | Purchases made prior to the effective date of the Letter of Intent will be applied toward the satisfaction of the Letter of Intent to determine the level of sales charge that will be paid pursuant to the Letter of Intent, but will not result in any reduction in the amount of any previously paid sales charge. |
■ | All accounts held in your name (alone or with other account holders) and taxpayer identification number (“TIN”); |
■ | Accounts held in your spouse's name (alone or with other account holders) and TIN (see definition of spouse below); |
■ | Accounts for your children or your spouse's children, including children for whom you and/or your spouse are legal guardian(s) (e.g., UGMAs and UTMAs); |
■ | Accounts in the name and TINs of your parents; |
■ | Trusts with you, your spouse, your children, your spouse's children and/or your parents as the beneficiaries; |
■ | With limited exclusions, accounts with the same address (exclusions include, but are not limited to, addresses for brokerage firms and other intermediaries and Post Office boxes); and |
■ | Accounts held in the name of a company controlled by you (a person, entity or group that holds 25% or more of the outstanding voting securities of a company will be deemed to control the company, and a partnership will be deemed to be controlled by each of its general partners), including employee benefit plans of the company where the accounts are held in the plan's TIN. |
■ | The person to whom you are legally married. We also consider your spouse to include the following: |
■ | An individual of the same gender with whom you have been joined in a civil union, or legal contract similar to marriage; |
■ | A domestic partner, who is an individual (including one of the same gender) with whom you have shared a primary residence for at least six months, in a relationship as a couple where you, your domestic partner or both provide for the personal or financial welfare of the other without a fee, to whom you are not related by blood; or |
■ | An individual with whom you have a common law marriage, which is a marriage in a state where such marriages are recognized between a man and a woman arising from the fact that the two live together and hold themselves out as being married. |
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■ | Mutual fund “wrap” or asset allocation programs, where the sponsor places fund trades, links its clients' accounts to a master account in the sponsor's name and charges its clients a management, consulting or other fee for its services; or |
■ | Mutual fund “supermarket” programs, where the sponsor links its clients' accounts to a master account in the sponsor's name and the sponsor charges a fee for its services. |
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■ | Certain directors, officers, current employees (including their spouses, children and parents) and former employees (including their spouses, children and parents) of Prudential and its affiliates, the PGIM Funds, and the subadvisers of the PGIM Funds; former employees must have an existing investment in the Fund; |
■ | Persons who have retired directly from active service with Prudential or one of its subsidiaries; |
■ | Registered representatives and employees of broker-dealers (including their spouses, children and parents) that offer Class A shares; |
■ | Investors in IRAs, provided that: (a) the purchase is made either from a directed rollover to such IRA or with the proceeds of a tax-free rollover of assets from a Benefit Plan for which Prudential Retirement (the institutional Benefit Plan recordkeeping entity of Prudential) provides administrative or recordkeeping services, in each case provided that such purchase is made within 60 days of receipt of the Benefit Plan distribution, and (b) the IRA is established through Prudential Retirement as part of its “Rollover IRA” program (regardless of whether or not the purchase consists of proceeds of a tax-free rollover of assets from a Benefit Plan described above); and |
■ | Clients of financial intermediaries, who (i) offer Class A shares through a no-load network or platform, (ii) charge clients an ongoing fee for advisory, investment, consulting or similar services, or (iii) offer self-directed brokerage accounts or other similar types of accounts that may or may not charge transaction fees to customers. |
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■ | Mutual fund “wrap” or asset allocation programs where the sponsor places fund trades, links its clients' accounts to a master account in the sponsor's name and charges its clients a management, consulting or other fee for its services; |
■ | Mutual fund “supermarket” programs where the sponsor links its clients' accounts to a master account in the sponsor's name and the sponsor charges a fee for its services; or |
■ | Fee- or commission-based retail brokerage programs of certain financial intermediaries that offer Class Z shares through such programs and that have agreements with PIMS to offer such shares when acting solely on an agency basis for their customers for the purchase or sale of such shares. If you transact in Class Z shares of the Fund through one of these programs, you may be required to pay a commission and/or other forms of compensation to the broker or financial intermediary for effecting such transaction. Because the Fund is not a party to any commission arrangement between you and your broker, any transactions in Class Z shares will be made by the Fund at net asset value (before imposition of the commission). Any such fee is paid by you, not by the Fund, and the imposition of any such fee or commission by your broker or financial intermediary does not impact the net asset value for such Fund shares. Shares of the Fund are available in other share classes that have different fees and expenses. |
■ | Certain participants in the MEDLEY Program (group variable annuity contracts) sponsored by Prudential for whom Class Z shares of the PGIM Funds are an available option; |
■ | Current and former Directors/Trustees of mutual funds managed by PGIM Investments or any other affiliate of Prudential; |
■ | Current and former employees (including their spouses, children and parents) of Prudential and its affiliates; former employees must have an existing investment in the Fund; |
■ | Prudential (including any program or account sponsored by Prudential or an affiliate that includes the Fund as an available option); |
■ | PGIM Funds, including PGIM funds-of-funds; |
■ | Qualified state tuition programs (529 plans); and |
■ | Investors working with fee-based consultants for investment selection and allocations. |
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■ | You are selling more than $100,000 of shares; |
■ | You want the redemption proceeds made payable to someone that is not in the Transfer Agent’s records; |
■ | You want the redemption proceeds sent to an address that is not in the Transfer Agent’s records; |
■ | You are a business or a trust; or |
■ | You are redeeming due to the death of the shareholder or on behalf of the shareholder. |
■ | Amounts representing shares you purchased with reinvested dividends and distributions, |
■ | Amounts representing the increase in NAV above the total amount of payments for shares made during the past 12 months for Class A shares (in certain cases), six years for Class B shares, and 12 months for Class C shares, and |
■ | Amounts representing the cost of shares held beyond the CDSC period (12 months for Class A shares (in certain cases), six years for Class B shares, and 12 months for Class C shares). |
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■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or permanent disability of the grantor). This waiver applies to individual shareholders, as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability; |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account; and |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account. |
■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or permanent disability of the grantor). This waiver applies to individual shareholders, as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability; |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account; |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account; and |
■ | On certain redemptions effected through a Systematic Withdrawal Plan. |
■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or permanent disability of the grantor). This waiver applies to individual shareholders, as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability; |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account; and |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account. |
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Class A Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||
Per Share Operating Performance(a): | ||||||||||
Net Asset Value, Beginning of Year | $5.44 | $5.57 | $5.45 | $5.38 | $5.80 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.31 | 0.31 | 0.33 | 0.32 | 0.33 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.07 | (0.12) | 0.13 | 0.08 | (0.41) | |||||
Total from investment operations | 0.38 | 0.19 | 0.46 | 0.40 | (0.08) | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.33) | (0.32) | (0.34) | (0.33) | (0.34) | |||||
Net asset value, end of Year | $5.49 | $5.44 | $5.57 | $5.45 | $5.38 | |||||
Total Return(b): | 7.28% | 3.60% | 8.60% | 7.96% | (1.39)% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $1,687,802 | $1,295,643 | $1,382,192 | $1,302,432 | $1,218,179 | |||||
Average net assets (000) | $1,402,647 | $1,328,272 | $1,344,300 | $1,180,916 | $1,290,432 | |||||
Ratios to average net assets(c)(d)(e): | ||||||||||
Expenses after waivers and/or expense reimbursement | 0.80% | 0.80% | 0.81% | 0.82% | 0.83% | |||||
Expenses before waivers and/or expense reimbursement | 0.80% | 0.80% | 0.81% | 0.82% | 0.85% | |||||
Net investment income (loss) | 5.82% | 5.75% | 5.99% | 6.18% | 5.88% | |||||
Portfolio turnover rate(f) | 43% | 44% | 40% | 28% | 48% |
(a) | Calculated based on average shares outstanding during the year. |
(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 year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from 0.30% to 0.25% of the average daily net assets and the 0.05% contractual 12b-1 fee waiver was terminated. |
(d) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. |
(f) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
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Class B Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||
Per Share Operating Performance(a): | ||||||||||
Net Asset Value, Beginning of Year | $5.43 | $5.56 | $5.44 | $5.37 | $5.80 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.29 | 0.29 | 0.30 | 0.29 | 0.30 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.06 | (0.12) | 0.13 | 0.09 | (0.42) | |||||
Total from investment operations | 0.35 | 0.17 | 0.43 | 0.38 | (0.12) | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.30) | (0.30) | (0.31) | (0.31) | (0.31) | |||||
Net asset value, end of Year | $5.48 | $5.43 | $5.56 | $5.44 | $5.37 | |||||
Total Return(b): | 6.77% | 3.10% | 8.07% | 7.43% | (2.06)% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $82,018 | $124,044 | $163,904 | $188,011 | $215,462 | |||||
Average net assets (000) | $100,597 | $142,113 | $173,630 | $191,578 | $235,221 | |||||
Ratios to average net assets(c)(d): | ||||||||||
Expenses after waivers and/or expense reimbursement | 1.28% | 1.26% | 1.30% | 1.32% | 1.33% | |||||
Expenses before waivers and/or expense reimbursement | 1.28% | 1.26% | 1.30% | 1.32% | 1.33% | |||||
Net investment income (loss) | 5.35% | 5.27% | 5.49% | 5.67% | 5.38% | |||||
Portfolio turnover rate(e) | 43% | 44% | 40% | 28% | 48% |
(a) | Calculated based on average shares outstanding during the year. |
(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 year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
44 | PGIM High Yield Fund |
Class C Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||
Per Share Operating Performance(a): | ||||||||||
Net Asset Value, Beginning of Year | $5.43 | $5.56 | $5.44 | $5.37 | $5.80 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.28 | 0.28 | 0.29 | 0.28 | 0.29 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.06 | (0.13) | 0.12 | 0.08 | (0.42) | |||||
Total from investment operations | 0.34 | 0.15 | 0.41 | 0.36 | (0.13) | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.29) | (0.28) | (0.29) | (0.29) | (0.30) | |||||
Net asset value, end of Year | $5.48 | $5.43 | $5.56 | $5.44 | $5.37 | |||||
Total Return(b): | 6.55% | 2.86% | 7.80% | 7.16% | (2.31)% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $234,165 | $249,818 | $266,881 | $250,106 | $236,533 | |||||
Average net assets (000) | $234,601 | $258,579 | $260,724 | $224,095 | $254,515 | |||||
Ratios to average net assets(c)(d): | ||||||||||
Expenses after waivers and/or expense reimbursement | 1.49% | 1.50% | 1.56% | 1.57% | 1.58% | |||||
Expenses before waivers and/or expense reimbursement | 1.49% | 1.50% | 1.56% | 1.57% | 1.58% | |||||
Net investment income (loss) | 5.14% | 5.04% | 5.24% | 5.42% | 5.13% | |||||
Portfolio turnover rate(e) | 43% | 44% | 40% | 28% | 48% |
(a) | Calculated based on average shares outstanding during the year. |
(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 year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
Visit our website at www.pgiminvestments.com | 45 |
Class R Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||
Per Share Operating Performance(a): | ||||||||||
Net Asset Value, Beginning of Year | $5.43 | $5.57 | $5.45 | $5.38 | $5.80 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.30 | 0.30 | 0.32 | 0.31 | 0.31 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.07 | (0.13) | 0.12 | 0.08 | (0.40) | |||||
Total from investment operations | 0.37 | 0.17 | 0.44 | 0.39 | (0.09) | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.31) | (0.31) | (0.32) | (0.32) | (0.33) | |||||
Net asset value, end of Year | $5.49 | $5.43 | $5.57 | $5.45 | $5.38 | |||||
Total Return(b): | 7.17% | 3.10% | 8.33% | 7.70% | (1.63)% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $74,523 | $71,841 | $64,518 | $57,520 | $51,716 | |||||
Average net assets (000) | $71,667 | $71,368 | $61,642 | $50,921 | $54,089 | |||||
Ratios to average net assets(c)(d): | ||||||||||
Expenses after waivers and/or expense reimbursement | 1.09% | 1.09% | 1.06% | 1.07% | 1.08% | |||||
Expenses before waivers and/or expense reimbursement | 1.34% | 1.34% | 1.31% | 1.32% | 1.33% | |||||
Net investment income (loss) | 5.55% | 5.46% | 5.74% | 5.93% | 5.63% | |||||
Portfolio turnover rate(e) | 43% | 44% | 40% | 28% | 48% |
(a) | Calculated based on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
46 | PGIM High Yield Fund |
Class Z Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||
Per Share Operating Performance(a): | ||||||||||
Net Asset Value, Beginning of Year | $5.45 | $5.58 | $5.46 | $5.39 | $5.82 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.33 | 0.33 | 0.34 | 0.34 | 0.34 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.06 | (0.12) | 0.13 | 0.08 | (0.41) | |||||
Total from investment operations | 0.39 | 0.21 | 0.47 | 0.42 | (0.07) | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.34) | (0.34) | (0.35) | (0.35) | (0.36) | |||||
Net asset value, end of Year | $5.50 | $5.45 | $5.58 | $5.46 | $5.39 | |||||
Total Return(b): | 7.56% | 3.87% | 8.89% | 8.26% | (1.29)% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $4,643,766 | $3,670,684 | $2,912,057 | $2,661,635 | $1,510,074 | |||||
Average net assets (000) | $4,021,108 | $3,176,813 | $2,808,766 | $1,842,948 | $1,394,662 | |||||
Ratios to average net assets(c)(d): | ||||||||||
Expenses after waivers and/or expense reimbursement | 0.54% | 0.55% | 0.55% | 0.57% | 0.58% | |||||
Expenses before waivers and/or expense reimbursement | 0.54% | 0.55% | 0.55% | 0.57% | 0.58% | |||||
Net investment income (loss) | 6.09% | 6.01% | 6.25% | 6.44% | 6.13% | |||||
Portfolio turnover rate(e) | 43% | 44% | 40% | 28% | 48% |
(a) | Calculated based on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
Visit our website at www.pgiminvestments.com | 47 |
Class R2 Shares | |||||
Year Ended August 31, 2019 | December 27, 2017(a) through August 31, 2018 | ||||
Per Share Operating Performance(b): | |||||
Net Asset Value, Beginning of Period | $5.44 | $5.52 | |||
Income (loss) from investment operations: | |||||
Net investment income (loss) | 0.31 | 0.21 | |||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.07 | (0.07) | |||
Total from investment operations | 0.38 | 0.14 | |||
Less Dividends and Distributions: | |||||
Dividends from net investment income | (0.32) | (0.22) | |||
Net asset value, end of Period | $5.50 | $5.44 | |||
Total Return(c): | 7.36% | 2.53% | |||
Ratios/Supplemental Data: | |||||
Net assets, end of Period (000) | $7,402 | $4,395 | |||
Average net assets (000) | $6,253 | $967 | |||
Ratios to average net assets(d): | |||||
Expenses after waivers and/or expense reimbursement | 0.91% | 0.91%(e) | |||
Expenses before waivers and/or expense reimbursement | 1.22% | 3.42%(e) | |||
Net investment income (loss) | 5.73% | 5.89%(e) | |||
Portfolio turnover rate(f) | 43% | 44% |
(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 generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
48 | PGIM High Yield Fund |
Class R4 Shares | |||||
Year Ended August 31, 2019 | December 27, 2017(a) through August 31, 2018 | ||||
Per Share Operating Performance(b): | |||||
Net Asset Value, Beginning of Period | $5.44 | $5.52 | |||
Income (loss) from investment operations: | |||||
Net investment income (loss) | 0.33 | 0.22 | |||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.07 | (0.07) | |||
Total from investment operations | 0.40 | 0.15 | |||
Less Dividends and Distributions: | |||||
Dividends from net investment income | (0.34) | (0.23) | |||
Net asset value, end of Period | $5.50 | $5.44 | |||
Total Return(c): | 7.66% | 2.71% | |||
Ratios/Supplemental Data: | |||||
Net assets, end of Period (000) | $11,469 | $1,963 | |||
Average net assets (000) | $4,571 | $372 | |||
Ratios to average net assets(d): | |||||
Expenses after waivers and/or expense reimbursement | 0.66% | 0.66%(e) | |||
Expenses before waivers and/or expense reimbursement | 1.07% | 7.16%(e) | |||
Net investment income (loss) | 6.00% | 6.17%(e) | |||
Portfolio turnover rate(f) | 43% | 44% |
(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 generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
Visit our website at www.pgiminvestments.com | 49 |
Class R6 Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019 | 2018 | 2017 | 2016 | 2015 | ||||||
Per Share Operating Performance(a): | ||||||||||
Net Asset Value, Beginning of Year | $5.44 | $5.57 | $5.46 | $5.39 | $5.81 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.34 | 0.34 | 0.35 | 0.34 | 0.35 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.06 | (0.13) | 0.12 | 0.08 | (0.41) | |||||
Total from investment operations | 0.40 | 0.21 | 0.47 | 0.42 | (0.06) | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.35) | (0.34) | (0.36) | (0.35) | (0.36) | |||||
Net asset value, end of Year | $5.49 | $5.44 | $5.57 | $5.46 | $5.39 | |||||
Total Return(b): | 7.71% | 4.00% | 8.82% | 8.36% | (1.01)% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $3,022,241 | $2,105,086 | $1,517,154 | $327,725 | $58,416 | |||||
Average net assets (000) | $2,462,874 | $1,880,226 | $988,188 | $178,565 | $44,388 | |||||
Ratios to average net assets(c)(d): | ||||||||||
Expenses after waivers and/or expense reimbursement | 0.40% | 0.42% | 0.42% | 0.45% | 0.46% | |||||
Expenses before waivers and/or expense reimbursement | 0.40% | 0.42% | 0.42% | 0.45% | 0.46% | |||||
Net investment income (loss) | 6.22% | 6.14% | 6.35% | 6.61% | 6.27% | |||||
Portfolio turnover rate(e) | 43% | 44% | 40% | 28% | 48% |
(a) | Calculated based on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
50 | PGIM High Yield Fund |
Visit our website at www.pgiminvestments.com | 51 |
■ | Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan |
■ | Shares purchased by or through a 529 Plan, if applicable |
■ | Shares purchased through a Merrill Lynch affiliated investment advisory program |
■ | Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform |
■ | Shares of funds purchased through the Merrill Edge Self-Directed platform |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
■ | Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date |
■ | Employees and registered representatives of Merrill Lynch or its affiliates and their family members |
■ | Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this Prospectus |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement) |
■ | Death or disability of the shareholder |
■ | Shares sold as part of a systematic withdrawal plan as described in this Prospectus |
■ | Return of excess contributions from an IRA Account |
■ | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70 1⁄2 |
■ | Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch |
■ | Shares acquired through a Right of Reinstatement |
■ | Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to Class A and C shares only) |
■ | Breakpoints as described in this Prospectus |
■ | Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets |
■ | Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable) |
■ | Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans |
■ | Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules |
■ | Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund |
■ | Shares purchased through a Morgan Stanley self-directed brokerage account |
■ | Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. |
■ | Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs. |
■ | Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available). |
■ | Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available). |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family). |
■ | Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that this Prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that this Prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load waived shares, that waiver will also apply to such exchanges. |
■ | Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members. |
■ | Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, |
grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant. | |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). |
■ | Shares purchased in an investment advisory program. |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family). |
■ | Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James. |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). |
■ | A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James. |
■ | Death or disability of the shareholder. |
■ | Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus. |
■ | Return of excess contributions from an IRA Account. |
■ | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70 1⁄2 as described in the Fund’s Prospectus. |
■ | Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James. |
■ | Shares acquired through a right of reinstatement. |
■ | Breakpoints as described in this Prospectus. |
■ | Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the calculation of rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets. |
■ | Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets. |
FOR MORE INFORMATION Please read this Prospectus before you invest in the Fund and keep it for future reference. For information or shareholder questions contact: | |
■ MAIL Prudential Mutual Fund Services LLC PO Box 9658 Providence, RI 02940■ WEBSITE www.pgiminvestments.com | ■ TELEPHONE (800) 225-1852 (973) 367-3529 (from outside the US) |
■ E-DELIVERY To receive your mutual fund documents on-line, go to www.pgiminvestments.com/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. |
The Annual and Semi-Annual Reports and the SAI contain additional information about the Fund. Shareholders may obtain free copies of the SAI, Annual Report and Semi-Annual Report as well as other information about the Fund and may make other shareholder inquiries through the telephone number, address and website listed above. | |
■ STATEMENT OF ADDITIONAL INFORMATION (SAI) (incorporated by reference into this Prospectus) ■ SEMI-ANNUAL REPORT | ■ ANNUAL REPORT (contains a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year) |
You can also obtain copies of Fund documents, including the SAI, from the Securities and Exchange Commission as follows (the SEC charges a fee to copy documents): | |
■ ELECTRONIC REQUEST publicinfo@sec.gov | ■ VIA THE INTERNET on the EDGAR Database at www.sec.gov |
PGIM High Yield Fund | ||||||||
Share Class | A | B | C | R | Z | R2 | R4 | R6 |
NASDAQ | PBHAX | PBHYX | PRHCX | JDYRX | PHYZX | PHYEX | PHYGX | PHYQX |
CUSIP | 74440Y108 | 74440Y207 | 74440Y306 | 74440Y603 | 74440Y801 | 74442J604 | 74442J703 | 74440Y884 |
MF110STAT | The Fund's Investment Company Act File No. 811-02896 |
PGIM SHORT DURATION HIGH YIELD INCOME FUND | |||
A: HYSAX | C: HYSCX | Z: HYSZX | R6: HYSQX |
IMPORTANT INFORMATION |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. |
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-225-1852 or by sending an e-mail request to PGIM Investments at shareholderreports@pgim.com. |
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-225-1852 or send an email request to shareholderreports@pgim.com to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund. |
To enroll in e-delivery, go to pgiminvestments.com/edelivery | |
As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved the Fund's shares, nor has the SEC determined that this prospectus is complete or accurate. It is a criminal offense to state otherwise.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. © 2019 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. | ![]() |
Shareholder Fees (fees paid directly from your investment) | ||||
Class A | Class C | Class Z | Class R6 | |
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) | 2.25% | None | None | None |
Maximum deferred sales charge (load) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1.00% | 1.00% | None | None |
Maximum sales charge (load) imposed on reinvested dividends and other distributions | None | None | None | None |
Redemption fee | None | None | None | None |
Exchange fee | None | None | None | None |
Maximum account fee (accounts under $10,000) | $15 | $15 | None* | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||
Class A | Class C | Class Z | Class R6 | |
Management fees | 0.69% | 0.69% | 0.69% | 0.69% |
Distribution and service (12b-1) fees | 0.25% | 1.00% | None | None |
Other expenses | 0.14% | 0.12% | 0.14% | 0.05% |
Total annual Fund operating expenses | 1.08% | 1.81% | 0.83% | 0.74% |
Fee waiver and/or expense reimbursement | (0.08)% | (0.06)% | (0.08)% | (0.04)% |
Total annual Fund operating expenses after fee waiver and/or expense reimbursement(1) | 1.00% | 1.75% | 0.75% | 0.70% |
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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 | $325 | $553 | $800 | $1,506 | $325 | $553 | $800 | $1,506 |
Class C | $278 | $564 | $974 | $2,122 | $178 | $564 | $974 | $2,122 |
Class Z | $77 | $257 | $453 | $1,018 | $77 | $257 | $453 | $1,018 |
Class R6 | $72 | $233 | $408 | $915 | $72 | $233 | $408 | $915 |
4 | PGIM Short Duration High Yield Income Fund |
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6 | PGIM Short Duration High Yield Income Fund |
Average Annual Total Returns % (including sales charges) (as of 12-31-18) | |||
Return Before Taxes | One Year | Five Years | Since Inception |
Class A Shares | -1.38% | 2.53% | 2.95% (10-26-12) |
Class C Shares | -0.81% | 2.23% | 2.55% (10-26-12) |
Class R6 Shares | 1.31% | N/A | 3.48% (10-27-14) |
Class Z Shares % (as of 12-31-18) | |||
Return Before Taxes | 1.14% | 3.24% | 3.59% (10-26-12) |
Return After Taxes on Distributions | -1.08% | 0.60% | 0.97%(10-26-12) |
Return After Taxes on Distribution and Sale of Fund Shares | 0.69% | 1.26% | 1.54% (10-26-12) |
Index % (reflects no deduction for fees, expenses or taxes) (as of 12-31-18) | |||
Bloomberg Barclays US High Yield Ba/B Rated 1-5 Year 1% Capped Index | 0.65% | 3.16% | 4.01%* |
Lipper Average % (reflects no deduction for sales charges or taxes) | |||
Lipper High Yield Funds Average | -2.84% | 2.65% | 3.63%* |
Investment Manager | Subadviser | Portfolio Managers | Title | Service Date |
PGIM Investments LLC | PGIM Fixed Income | Robert Cignarella, CFA | Managing Director | March 2014 |
Robert Spano, CFA, CPA | Principal | October 2012 | ||
Ryan Kelly, CFA | Principal | October 2012 | ||
Brian Clapp, CFA | Principal | May 2013 | ||
Daniel Thorogood, CFA | Principal | October 2012 |
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Class A* | Class C* | Class Z* | Class R6 | |
Minimum initial investment | $2,500 (prior to November 1, 2019) $1,000 (on/after November 1, 2019) | $2,500 (prior to November 1, 2019) $1,000 (on/after November 1, 2019) | None | None |
Minimum subsequent investment | $100 | $100 | None | None |
8 | PGIM Short Duration High Yield Income Fund |
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10 | PGIM Short Duration High Yield Income Fund |
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Principal Strategies: Investment Limits |
■ High yield fixed income instruments (junk bonds): At least 80% of investable assets■ Portfolio duration: weighted average duration of three years or less and a weighted average maturity of five years or less |
12 | PGIM Short Duration High Yield Income Fund |
Principal Strategies: Investment Limits |
■ Foreign fixed-income instruments (including emerging markets): Up to 100% of investable assets in US currency denominated and/or foreign currency denominated instruments |
Non-Principal Strategies: Investment Limits |
■ Investment grade instruments: Up to 20% of investable assets■ Derivatives: Up to 25% of net assets■ Loan participations and assignments: Up to 20% of investable assets■ Short Sales: Up to 25% of net assets (excluding short sales against-the-box)■ Step-ups and payments-in-kind: Percentage varies■ US Government securities, money market instruments or high-quality bank or corporate obligations: Up to 20%; up to 100% of investable assets on temporary basis■ Yankee dollar obligations, Eurobonds and global bonds: Percentage varies■ Variable rate and floating rate securities: Percentage varies■ Lower rated high yield instruments: Up to 10% of investable assets■ Illiquid securities: Up to 15% of net assets |
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14 | PGIM Short Duration High Yield Income Fund |
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16 | PGIM Short Duration High Yield Income Fund |
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18 | PGIM Short Duration High Yield Income Fund |
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Expected Distribution Schedule* | |
Net Investment Income | Monthly |
Short-Term Capital Gains | Annually |
Long-Term Capital Gains | Annually |
20 | PGIM Short Duration High Yield Income Fund |
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22 | PGIM Short Duration High Yield Income Fund |
Share Class | Eligibility |
Class A* | Retail investors |
Class C* | Retail investors |
Class Z* | Certain group retirement plans, institutional investors and certain other investors |
Class R6 | Certain group retirement plans, institutional investors and certain other investors |
■ | Class A shares purchased in amounts of less than $500,000 require you to pay a sales charge at the time of purchase, but the operating expenses of Class A shares are lower than the operating expenses of Class C shares. Investors who purchase $500,000 or more of Class A shares and sell these shares within 12 months of purchase are also subject to a contingent deferred sales charge (CDSC) of 1.00%. The CDSC is waived for certain retirement and/or benefit plans. |
■ | Class C shares do not require you to pay a sales charge at the time of purchase, but do require you to pay a CDSC if you sell your shares within 12 months of purchase. The operating expenses of Class C shares are higher than the operating expenses of Class A shares. |
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■ | The amount of your investment and any previous or planned future investments, which may qualify you for reduced sales charges for Class A shares under Rights of Accumulation or a Letter of Intent. |
■ | The length of time you expect to hold the shares and the impact of varying distribution fees. Over time, these fees will increase the cost of your investment and may cost you more than paying other types of sales charges. For this reason, Class C shares are generally appropriate only for investors who plan to hold their shares for no more than 3 years. |
■ | The different sales charges that apply to each share class—Class A's front-end sales charge (and, in certain instances, CDSC) vs. Class C's CDSC. |
■ | Class C shares purchased in single amounts greater than $500,000 are generally less advantageous than purchasing Class A shares. Purchase orders for Class C shares above this amount generally will not be accepted. |
■ | If you purchase Class Z shares through a broker acting solely as an agent on behalf of its customers pursuant to an agreement with PIMS, the broker may charge you a commission in an amount determined and separately disclosed to you by the broker. |
■ | Because Class Z and Class R6 shares have lower operating expenses than Class A or Class C shares, as applicable, you should consider whether you are eligible to purchase such share classes. |
Class A* | Class C* | Class Z* | Class R6 | |
Minimum purchase amount | $2,500 (before November 1, 2019) $1,000 (on/after November 1, 2019) | $2,500 (before November 1, 2019) $1,000 (on/after November 1, 2019) | None | None |
Minimum amount for subsequent purchases | $100 | $100 | None | None |
Maximum initial sales charge | 2.25% 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 |
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Class A | Class C | Class Z | Class R | |
Existing Investors (Group Retirement Plans, IRAs, and all other investors) | No Change | No Change | No Change | No Change |
New Group Retirement Plans | Closed to group retirement plans wishing to add the share classes as new additions to plan menus on June 1, 2018, subject to certain exceptions below | |||
New IRAs | No Change | No Change | No Change | Closed to all new investors on June 1, 2018, subject to certain exceptions below |
All Other New Investors | No Change | No Change | No Change |
■ | Eligible group retirement plans that are exercising their one-time 90-day repurchase privilege in the Fund will be permitted to purchase such share classes. |
■ | Plan participants in a group retirement plan that offers Class A, Class C, Class R or Class Z shares of the Fund, as applicable, as of the Effective Date will be permitted to purchase such share classes of the Fund, even if the plan participant did not own shares of that class of the Fund as of the Effective Date. |
■ | Certain new group retirement plans will be permitted to offer such share classes of the Fund after the Effective Date, provided that the plan or its financial intermediary or other agent has or is actively negotiating a contractual agreement with the Fund’s distributor or service provider to offer such share classes of the Fund prior to or on the Effective Date. |
■ | New group retirement plans that combine with, replace or are otherwise affiliated with a current plan that invests in such share classes prior to or on the Effective Date will be permitted to purchase such share classes. |
■ | The Fund also reserves the right to refuse any purchase order that might disrupt management of the Fund or to otherwise modify the closure policy at any time on a case-by-case basis. |
■ | Shareholders owning Class C shares may continue to hold their Class C shares until the shares automatically convert to Class A shares under the conversion schedule, or until the shareholder redeems their Class C shares. |
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Amount of Purchase | Sales Charge as a % of Offering Price* | Sales Charge as a % of Amount Invested* | Dealer Reallowance*** |
Less than $100,000 | 2.25% | 2.30% | 2.00% |
$100,000 to $249,999 | 2.00% | 2.04% | 1.75% |
$250,000 to $499,999 | 1.25% | 1.27% | 1.25% |
$500,000 to $4,999,999** | None | None | 1.00% |
$5,000,000 to $9,999,999** | None | None | 0.50% |
$10,000,000 and over** | None | None | 0.25% |
■ | Use your Rights of Accumulation, which allow you or an eligible group of related investors to combine (1) the current value of Class A, Class B and Class C PGIM Fund shares you or the group already own, (2) the value of money market shares (other than Direct Purchase money market shares) you or an eligible group of related investors have received for shares of other PGIM Funds in an exchange transaction, and (3) the value of the shares you or an eligible group of related investors are purchasing; or |
■ | Sign a Letter of Intent, stating in writing that you or an eligible group of related investors will purchase a certain amount of shares in the Fund and other PGIM Funds within 13 months. |
■ | Purchases made prior to the effective date of the Letter of Intent will be applied toward the satisfaction of the Letter of Intent to determine the level of sales charge that will be paid pursuant to the Letter of Intent, but will not result in any reduction in the amount of any previously paid sales charge. |
■ | All accounts held in your name (alone or with other account holders) and taxpayer identification number (“TIN”); |
■ | Accounts held in your spouse's name (alone or with other account holders) and TIN (see definition of spouse below); |
■ | Accounts for your children or your spouse's children, including children for whom you and/or your spouse are legal guardian(s) (e.g., UGMAs and UTMAs); |
■ | Accounts in the name and TINs of your parents; |
■ | Trusts with you, your spouse, your children, your spouse's children and/or your parents as the beneficiaries; |
■ | With limited exclusions, accounts with the same address (exclusions include, but are not limited to, addresses for brokerage firms and other intermediaries and Post Office boxes); and |
■ | Accounts held in the name of a company controlled by you (a person, entity or group that holds 25% or more of the outstanding voting securities of a company will be deemed to control the company, and a partnership will be deemed to be controlled by each of its general partners), including employee benefit plans of the company where the accounts are held in the plan's TIN. |
■ | The person to whom you are legally married. We also consider your spouse to include the following: |
■ | An individual of the same gender with whom you have been joined in a civil union, or legal contract similar to marriage; |
■ | A domestic partner, who is an individual (including one of the same gender) with whom you have shared a primary residence for at least six months, in a relationship as a couple where you, your domestic partner or both provide for the personal or financial welfare of the other without a fee, to whom you are not related by blood; or |
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■ | An individual with whom you have a common law marriage, which is a marriage in a state where such marriages are recognized between a man and a woman arising from the fact that the two live together and hold themselves out as being married. |
■ | Mutual fund “wrap” or asset allocation programs, where the sponsor places fund trades, links its clients' accounts to a master account in the sponsor's name and charges its clients a management, consulting or other fee for its services; or |
■ | Mutual fund “supermarket” programs, where the sponsor links its clients' accounts to a master account in the sponsor's name and the sponsor charges a fee for its services. |
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■ | Certain directors, officers, current employees (including their spouses, children and parents) and former employees (including their spouses, children and parents) of Prudential and its affiliates, the PGIM Funds, and the subadvisers of the PGIM Funds; former employees must have an existing investment in the Fund; |
■ | Persons who have retired directly from active service with Prudential or one of its subsidiaries; |
■ | Registered representatives and employees of broker-dealers (including their spouses, children and parents) that offer Class A shares; |
■ | Investors in IRAs, provided that: (a) the purchase is made either from a directed rollover to such IRA or with the proceeds of a tax-free rollover of assets from a Benefit Plan for which Prudential Retirement (the institutional Benefit Plan recordkeeping entity of Prudential) provides administrative or recordkeeping services, in each case provided that such purchase is made within 60 days of receipt of the Benefit Plan distribution, and (b) the IRA is established through Prudential Retirement as part of its “Rollover IRA” program (regardless of whether or not the purchase consists of proceeds of a tax-free rollover of assets from a Benefit Plan described above); and |
■ | Clients of financial intermediaries, who (i) offer Class A shares through a no-load network or platform, (ii) charge clients an ongoing fee for advisory, investment, consulting or similar services, or (iii) offer self-directed brokerage accounts or other similar types of accounts that may or may not charge transaction fees to customers. |
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■ | Mutual fund “wrap” or asset allocation programs where the sponsor places fund trades, links its clients' accounts to a master account in the sponsor's name and charges its clients a management, consulting or other fee for its services; |
■ | Mutual fund “supermarket” programs where the sponsor links its clients' accounts to a master account in the sponsor's name and the sponsor charges a fee for its services; or |
■ | Fee- or commission-based retail brokerage programs of certain financial intermediaries that offer Class Z shares through such programs and that have agreements with PIMS to offer such shares when acting solely on an agency basis for their customers for the purchase or sale of such shares. If you transact in Class Z shares of the Fund through one of these programs, you may be required to pay a commission and/or other forms of compensation to the broker or financial intermediary for effecting such transaction. Because the Fund is not a party to any commission arrangement between you and your broker, any transactions in Class Z shares will be made by the Fund at net asset value (before imposition of the commission). Any such fee is paid by you, not by the Fund, and the imposition of any such fee or commission by your broker or financial intermediary does not impact the net asset value for such Fund shares. Shares of the Fund are available in other share classes that have different fees and expenses. |
■ | Certain participants in the MEDLEY Program (group variable annuity contracts) sponsored by Prudential for whom Class Z shares of the PGIM Funds are an available option; |
■ | Current and former Directors/Trustees of mutual funds managed by PGIM Investments or any other affiliate of Prudential; |
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■ | Current and former employees (including their spouses, children and parents) of Prudential and its affiliates; former employees must have an existing investment in the Fund; |
■ | Prudential (including any program or account sponsored by Prudential or an affiliate that includes the Fund as an available option); |
■ | PGIM Funds, including PGIM funds-of-funds; |
■ | Qualified state tuition programs (529 plans); and |
■ | Investors working with fee-based consultants for investment selection and allocations. |
30 | PGIM Short Duration High Yield Income Fund |
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32 | PGIM Short Duration High Yield Income Fund |
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34 | PGIM Short Duration High Yield Income Fund |
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■ | You are selling more than $100,000 of shares; |
■ | You want the redemption proceeds made payable to someone that is not in the Transfer Agent’s records; |
■ | You want the redemption proceeds sent to an address that is not in the Transfer Agent’s records; |
■ | You are a business or a trust; or |
■ | You are redeeming due to the death of the shareholder or on behalf of the shareholder. |
■ | Amounts representing shares you purchased with reinvested dividends and distributions, |
■ | Amounts representing the increase in NAV above the total amount of payments for shares made during the past 12 months for Class A shares (in certain cases) and 12 months for Class C shares, and |
■ | Amounts representing the cost of shares held beyond the CDSC period (12 months for Class A shares (in certain cases) and 12 months for Class C shares). |
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■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or permanent disability of the grantor). This waiver applies to individual shareholders, as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability; |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account; and |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account. |
■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or permanent disability of the grantor). This waiver applies to individual shareholders, as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability; |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account; and |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account. |
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38 | PGIM Short Duration High Yield Income Fund |
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40 | PGIM Short Duration High Yield Income Fund |
Class A Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019(a) | 2018(a) | 2017(a) | 2016(a) | 2015 | ||||||
Per Share Operating Performance: | ||||||||||
Net Asset Value, Beginning of Year | $8.90 | $9.06 | $9.16 | $9.21 | $9.73 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.43 | 0.43 | 0.42 | 0.42 | 0.44 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.12 | (0.10) | (0.01) | 0.08 | (0.37) | |||||
Total from investment operations | 0.55 | 0.33 | 0.41 | 0.50 | 0.07 | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.48) | (0.47) | (0.51) | (0.55) | (0.59) | |||||
Tax return of capital distributions | - | (0.02) | - | - | - | |||||
Total dividends and distributions | (0.48) | (0.49) | (0.51) | (0.55) | (0.59) | |||||
Net asset value, end of Year | $8.97 | $8.90 | $9.06 | $9.16 | $9.21 | |||||
Total Return(b): | 6.43% | 3.73% | 4.65% | 5.68% | 0.72% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $270,853 | $273,521 | $360,573 | $560,800 | $366,345 | |||||
Average net assets (000) | $252,620 | $303,566 | $462,309 | $425,721 | $381,350 | |||||
Ratios to average net assets(c)(d)(e): | ||||||||||
Expenses after waivers and/or expense reimbursement | 1.00% | 1.00% | 1.04% | 1.08% | 1.11% | |||||
Expenses before waivers and/or expense reimbursement | 1.08% | 1.07% | 1.07% | 1.08% | 1.14% | |||||
Net investment income (loss) | 4.81% | 4.80% | 4.67% | 4.67% | 4.70% | |||||
Portfolio turnover rate(f) | 49% | 67% | 66% | 58% | 56% |
(a) | Calculated based on average shares outstanding during the year. |
(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 year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from 0.30% to 0.25% of the average daily net assets and the 0.05% contractual 12b-1 fee waiver was terminated. |
(f) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
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Class C Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019(a) | 2018(a) | 2017(a) | 2016(a) | 2015 | ||||||
Per Share Operating Performance: | ||||||||||
Net Asset Value, Beginning of Year | $8.90 | $9.06 | $9.15 | $9.21 | $9.73 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.36 | 0.36 | 0.36 | 0.36 | 0.37 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.13 | (0.10) | (0.01) | 0.06 | (0.37) | |||||
Total from investment operations | 0.49 | 0.26 | 0.35 | 0.42 | - | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.42) | (0.40) | (0.44) | (0.48) | (0.52) | |||||
Tax return of capital distributions | - | (0.02) | - | - | - | |||||
Total dividends and distributions | (0.42) | (0.42) | (0.44) | (0.48) | (0.52) | |||||
Net asset value, end of Year | $8.97 | $8.90 | $9.06 | $9.15 | $9.21 | |||||
Total Return(b): | 5.64% | 2.95% | 3.98% | 4.78% | (0.02)% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $332,503 | $334,430 | $374,417 | $372,754 | $286,999 | |||||
Average net assets (000) | $326,067 | $353,409 | $377,098 | $304,363 | $298,555 | |||||
Ratios to average net assets(c)(d): | ||||||||||
Expenses after waivers and/or expense reimbursement | 1.75% | 1.75% | 1.78% | 1.83% | 1.86% | |||||
Expenses before waivers and/or expense reimbursement | 1.81% | 1.81% | 1.83% | 1.83% | 1.86% | |||||
Net investment income (loss) | 4.06% | 4.05% | 3.92% | 3.94% | 3.95% | |||||
Portfolio turnover rate(e) | 49% | 67% | 66% | 58% | 56% |
(a) | Calculated based on average shares outstanding during the year. |
(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 year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
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Class Z Shares | ||||||||||
Year Ended August 31, | ||||||||||
2019(a) | 2018(a) | 2017(a) | 2016(a) | 2015 | ||||||
Per Share Operating Performance: | ||||||||||
Net Asset Value, Beginning of Year | $8.91 | $9.06 | $9.16 | $9.21 | $9.73 | |||||
Income (loss) from investment operations: | ||||||||||
Net investment income (loss) | 0.45 | 0.45 | 0.45 | 0.44 | 0.47 | |||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.12 | (0.09) | (0.01) | 0.08 | (0.38) | |||||
Total from investment operations | 0.57 | 0.36 | 0.44 | 0.52 | 0.09 | |||||
Less Dividends and Distributions: | ||||||||||
Dividends from net investment income | (0.51) | (0.49) | (0.54) | (0.57) | (0.61) | |||||
Tax return of capital distributions | - | (0.02) | - | - | - | |||||
Total dividends and distributions | (0.51) | (0.51) | (0.54) | (0.57) | (0.61) | |||||
Net asset value, end of Year | $8.97 | $8.91 | $9.06 | $9.16 | $9.21 | |||||
Total Return(b): | 6.57% | 4.11% | 4.91% | 5.94% | 0.98% | |||||
Ratios/Supplemental Data: | ||||||||||
Net assets, end of Year (000) | $2,188,123 | $1,563,724 | $1,609,403 | $1,201,161 | $656,491 | |||||
Average net assets (000) | $1,859,209 | $1,517,050 | $1,414,559 | $818,901 | $675,793 | |||||
Ratios to average net assets(c)(d): | ||||||||||
Expenses after waivers and/or expense reimbursement | 0.75% | 0.75% | 0.78% | 0.83% | 0.86% | |||||
Expenses before waivers and/or expense reimbursement | 0.83% | 0.83% | 0.83% | 0.83% | 0.86% | |||||
Net investment income (loss) | 5.03% | 5.05% | 4.92% | 4.90% | 4.96% | |||||
Portfolio turnover rate(e) | 49% | 67% | 66% | 58% | 56% |
(a) | Calculated based on average shares outstanding during the year. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
Visit our website at www.pgiminvestments.com | 43 |
Class R6 Shares | |||||||||||
Year Ended August 31, | October 27, 2014(a) through August 31, 2015 | ||||||||||
2019(b) | 2018(b) | 2017(b) | 2016(b) | ||||||||
Per Share Operating Performance: | |||||||||||
Net Asset Value, Beginning of Period | $8.91 | $9.06 | $9.16 | $9.22 | $9.59 | ||||||
Income (loss) from investment operations: | |||||||||||
Net investment income (loss) | 0.45 | 0.46 | 0.45 | 0.45 | 0.39 | ||||||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 0.12 | (0.10) | (0.01) | 0.07 | (0.24) | ||||||
Total from investment operations | 0.57 | 0.36 | 0.44 | 0.52 | 0.15 | ||||||
Less Dividends and Distributions: | |||||||||||
Dividends from net investment income | (0.51) | (0.49) | (0.54) | (0.58) | (0.52) | ||||||
Tax return of capital distributions | - | (0.02) | - | - | - | ||||||
Total dividends and distributions | (0.51) | (0.51) | (0.54) | (0.58) | (0.52) | ||||||
Net asset value, end of Period | $8.97 | $8.91 | $9.06 | $9.16 | $9.22 | ||||||
Total Return(c): | 6.63% | 4.15% | 4.97% | 5.92% | 1.65% | ||||||
Ratios/Supplemental Data: | |||||||||||
Net assets, end of Period (000) | $164,537 | $112,437 | $58,356 | $25,252 | $16,690 | ||||||
Average net assets (000) | $141,275 | $86,373 | $46,030 | $29,782 | $15,387 | ||||||
Ratios to average net assets(d)(e): | |||||||||||
Expenses after waivers and/or expense reimbursement | 0.70% | 0.70% | 0.71% | 0.74% | 0.77%(f) | ||||||
Expenses before waivers and/or expense reimbursement | 0.74% | 0.75% | 0.72% | 0.74% | 0.77%(f) | ||||||
Net investment income (loss) | 5.08% | 5.10% | 4.97% | 4.99% | 4.77%(f) | ||||||
Portfolio turnover rate(g) | 49% | 67% | 66% | 58% | 56% |
(a) | Commencement of offering. |
(b) | Calculated based on average shares outstanding during the year. |
(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 generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(d) | Effective September 1, 2017, class specific expenses include transfer agent fees and expenses and registration fees, which are charged to their respective share class. |
(e) | Does not include expenses of the underlying funds in which the Fund invests. |
(f) | Annualized. |
(g) | The Fund's 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 Fund's portfolio turnover rate may be higher. |
44 | PGIM Short Duration High Yield Income Fund |
Visit our website at www.pgiminvestments.com | 45 |
■ | Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan |
■ | Shares purchased by or through a 529 Plan, if applicable |
■ | Shares purchased through a Merrill Lynch affiliated investment advisory program |
■ | Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform |
■ | Shares of funds purchased through the Merrill Edge Self-Directed platform |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
■ | Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date |
■ | Employees and registered representatives of Merrill Lynch or its affiliates and their family members |
■ | Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this Prospectus |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement) |
■ | Death or disability of the shareholder |
■ | Shares sold as part of a systematic withdrawal plan as described in this Prospectus |
■ | Return of excess contributions from an IRA Account |
■ | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70 1⁄2 |
■ | Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch |
■ | Shares acquired through a Right of Reinstatement |
■ | Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to Class A and C shares only) |
■ | Breakpoints as described in this Prospectus |
■ | Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets |
■ | Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable) |
■ | Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans |
■ | Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules |
■ | Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund |
■ | Shares purchased through a Morgan Stanley self-directed brokerage account |
■ | Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. |
■ | Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs. |
■ | Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available). |
■ | Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available). |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family). |
■ | Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that this Prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that this Prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load waived shares, that waiver will also apply to such exchanges. |
■ | Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members. |
■ | Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, |
grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant. | |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). |
■ | Shares purchased in an investment advisory program. |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family). |
■ | Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James. |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). |
■ | A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James. |
■ | Death or disability of the shareholder. |
■ | Shares sold as part of a systematic withdrawal plan as described in the Fund’s Prospectus. |
■ | Return of excess contributions from an IRA Account. |
■ | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70 1⁄2 as described in the Fund’s Prospectus. |
■ | Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James. |
■ | Shares acquired through a right of reinstatement. |
■ | Breakpoints as described in this Prospectus. |
■ | Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the calculation of rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets. |
■ | Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets. |
FOR MORE INFORMATION Please read this Prospectus before you invest in the Fund and keep it for future reference. For information or shareholder questions contact: | |
■ MAIL Prudential Mutual Fund Services LLC PO Box 9658 Providence, RI 02940■ WEBSITE www.pgiminvestments.com | ■ TELEPHONE (800) 225-1852 (973) 367-3529 (from outside the US) |
■ E-DELIVERY To receive your mutual fund documents on-line, go to www.pgiminvestments.com/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. |
The Annual and Semi-Annual Reports and the SAI contain additional information about the Fund. Shareholders may obtain free copies of the SAI, Annual Report and Semi-Annual Report as well as other information about the Fund and may make other shareholder inquiries through the telephone number, address and website listed above. | |
■ STATEMENT OF ADDITIONAL INFORMATION (SAI) (incorporated by reference into this Prospectus) ■ SEMI-ANNUAL REPORT | ■ ANNUAL REPORT (contains a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year) |
You can also obtain copies of Fund documents, including the SAI, from the Securities and Exchange Commission as follows (the SEC charges a fee to copy documents): | |
■ ELECTRONIC REQUEST publicinfo@sec.gov | ■ VIA THE INTERNET on the EDGAR Database at www.sec.gov |
PGIM Short Duration High Yield Income Fund | ||||
Share Class | A | C | Z | R6 |
NASDAQ | HYSAX | HYSCX | HYSZX | HYSQX |
CUSIP | 74442J109 | 74442J208 | 74442J307 | 74442J406 |
MF216STAT | The Fund's Investment Company Act File No. 811-02896 |
Term | Definition |
1933 Act | Securities Act of 1933, as amended |
1934 Act | Securities Exchange Act of 1934, as amended |
1940 Act | Investment Company Act of 1940, as amended |
1940 Act Laws, Interpretations and Exemptions | Exemptive order, SEC release, no-action letter or similar relief or interpretations, collectively |
ADR | American Depositary Receipt |
ADS | American Depositary Share |
Board | Fund’s Board of Directors or Trustees |
Board Member | A trustee or director of the Fund’s Board |
CEA | Commodity Exchange Act, as amended |
CFTC | US Commodity Futures Trading Commission |
Code | Internal Revenue Code of 1986, as amended |
CMO | Collateralized Mortgage Obligation |
ETF | Exchange-Traded Fund |
EDR | European Depositary Receipt |
Exchange | NYSE Arca, Inc. |
Fannie Mae | Federal National Mortgage Association |
FDIC | Federal Deposit Insurance Corporation |
Fitch | Fitch Ratings, Inc. |
Freddie Mac | Federal Home Loan Mortgage Corporation |
GDR | Global Depositary Receipt |
Ginnie Mae | Government National Mortgage Association |
IPO | Initial Public Offering |
IRS | Internal Revenue Service |
LIBOR | London Interbank Offered Rate |
Manager or PGIM Investments | PGIM Investments LLC |
Moody’s | Moody’s Investors Service, Inc. |
NASDAQ | National Association of Securities Dealers Automated Quotations System |
NAV | Net Asset Value |
NRSRO | Nationally Recognized Statistical Rating Organization |
NYSE | New York Stock Exchange |
OTC | Over the Counter |
Prudential | Prudential Financial, Inc. |
PMFS | Prudential Mutual Fund Services LLC |
QPTP | “Qualified publicly traded partnership” as the term is used in the Internal Revenue Code of 1986, as amended |
REIT | Real Estate Investment Trust |
RIC | Regulated Investment Company, as the term is used in the Internal Revenue Code of 1986, as amended |
Term | Definition |
S&P | S&P Global Ratings |
SEC | US Securities and Exchange Commission |
World Bank | International Bank for Reconstruction and Development |
■ | Junk bonds are issued by less creditworthy issuers. These securities are vulnerable to adverse changes in the issuer's economic condition and to general economic conditions. Issuers of junk bonds may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer developments or the unavailability of additional financing. |
■ | The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations. |
■ | Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the senior obligations are generally paid off before the junior obligations. |
■ | Junk bonds frequently have redemption features that permit an issuer to repurchase the security from a Fund before it matures. If an issuer redeems the junk bonds, a Fund may have to invest the proceeds in bonds with lower yields and may lose income. |
■ | Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a greater impact on the prices of junk bonds than on other higher rated fixed income securities. |
■ | Junk bonds may be more illiquid than higher rated fixed income securities even under normal economic conditions. There are fewer dealers in the junk bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers. Because they are less liquid, judgment may play a greater role in valuing certain of a Fund’s portfolio securities than in the case of securities trading in a more liquid market. |
■ | A Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. |
Independent Board Members | |||
Name Date of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service |
Ellen S. Alberding 3/11/58 Board Member Portfolios Overseen: 96 | President and Board Member, The Joyce Foundation (charitable foundation) (since 2002); Vice Chair, City Colleges of Chicago (community college system) (2011-2015); Trustee, National Park Foundation (charitable foundation for national park system) (2009-2018); Trustee, Economic Club of Chicago (since 2009); Trustee, Loyola University (since 2018). | None. | Since September 2013 |
Kevin J. Bannon 7/13/52 Board Member Portfolios Overseen: 96 | Retired; Managing Director (April 2008-May 2015) and Chief Investment Officer (October 2008-November 2013) of Highmount Capital LLC (registered investment adviser); formerly Executive Vice President and Chief Investment Officer (April 1993-August 2007) of Bank of New York Company; President (May 2003-May 2007) of BNY Hamilton Family of Mutual Funds. | Director of Urstadt Biddle Properties (equity real estate investment trust) (since September 2008). | Since July 2008 |
Linda W. Bynoe 7/9/52 Board Member Portfolios Overseen: 96 | President and Chief Executive Officer (since March 1995) and formerly Chief Operating Officer (December 1989-February 1995) of Telemat Ltd. (management consulting); formerly Vice President (January 1985-June 1989) at Morgan Stanley & Co. (broker-dealer). | Director of Anixter International, Inc. (communication products distributor) (since January 2006); Director of Northern Trust Corporation (financial services) (since April 2006); Trustee of Equity Residential (residential real estate) (since December 2009). | Since March 2005 |
Barry H. Evans 11/2/60 Board Member Portfolios Overseen: 95 | Retired; formerly President (2005 – 2016), Global Chief Operating Officer (2014– 2016), Chief Investment Officer – Global Head of Fixed Income (1998-2014), and various portfolio manager roles (1986-2006), Manulife Asset Management U.S. | Formerly Director, Manulife Trust Company (2011-2018); formerly Director, Manulife Asset Management Limited (2015-2017); formerly Chairman of the Board of Directors of Manulife Asset Management U.S. (2005-2016); formerly Chairman of the Board, Declaration Investment Management and Research (2008-2016). | Since September 2017 |
Keith F. Hartstein 10/13/56 Board Member & Independent Chair Portfolios Overseen: 96 | Retired; Member (since November 2014) of the Governing Council of the Independent Directors Council (organization of independent mutual fund directors); formerly President and Chief Executive Officer (2005-2012), Senior Vice President (2004-2005), Senior Vice President of Sales and Marketing (1997-2004), and various executive management positions (1990-1997), John Hancock Funds, LLC (asset management); Chairman, Investment Company Institute’s Sales Force Marketing Committee (2003-2008). | None. | Since September 2013 |
Laurie Simon Hodrick 9/29/62 Board Member Portfolios Overseen: 95 | A. Barton Hepburn Professor Emerita of Economics in the Faculty of Business, Columbia Business School (since 2018); Visiting Professor of Law, Stanford Law School (since 2015); Visiting Fellow at the Hoover Institution, Stanford University (since 2015); Sole Member, ReidCourt LLC (since 2008) (a consulting firm); formerly A. Barton Hepburn Professor of Economics in the Faculty of Business, Columbia Business School (1996-2017); formerly Managing Director, Global Head of Alternative Investment Strategies, Deutsche Bank (2006-2008). | Independent Director, Synnex Corporation (since April 2019) (information technology); Independent Director, Kabbage, Inc. (since July 2018) (financial services); Independent Director, Corporate Capital Trust (2017-2018) (a business development company). | Since September 2017 |
Independent Board Members | |||
Name Date of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service |
Michael S. Hyland, CFA 10/4/45 Board Member Portfolios Overseen: 96 | Retired (since February 2005); formerly Senior Managing Director (July 2001-February 2005) of Bear Stearns & Co, Inc.; Global Partner, INVESCO (1999-2001); Managing Director and President of Salomon Brothers Asset Management (1989-1999). | None. | Since July 2008 |
Brian K. Reid 9/22/61 Board Member Portfolios Overseen: 95 | Retired; formerly Chief Economist for the Investment Company Institute (ICI) (2005-2017); formerly Senior Economist and Director of Industry and Financial Analysis at the ICI (1998-2004); formerly Senior Economist, Industry and Financial Analysis at the ICI (1996-1998); formerly Staff Economist at the Federal Reserve Board (1989-1996); Director, ICI Mutual Insurance Company (2012-2017). | None. | Since March 2018 |
Grace C. Torres 6/28/59 Board Member Portfolios Overseen: 95 | Retired; formerly Treasurer and Principal Financial and Accounting Officer of the PGIM Funds, Target Funds, Advanced Series Trust, Prudential Variable Contract Accounts and The Prudential Series Fund (1998-June 2014); Assistant Treasurer (March 1999-June 2014) and Senior Vice President (September 1999-June 2014) of PGIM Investments LLC; Assistant Treasurer (May 2003-June 2014) and Vice President (June 2005-June 2014) of AST Investment Services, Inc.; Senior Vice President and Assistant Treasurer (May 2003-June 2014) of Prudential Annuities Advisory Services, Inc. | Formerly Director (July 2015-January 2018) of Sun Bancorp, Inc. N.A. and Sun National Bank; Director (since January 2018) of OceanFirst Financial Corp. and OceanFirst Bank. | Since November 2014 |
Interested Board Members | |||
Name Date of Birth Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service |
Stuart S. Parker 10/5/62 Board Member & President Portfolios Overseen: 96 | President of PGIM Investments LLC (formerly known as Prudential Investments LLC) (since January 2012); Executive Vice President of Prudential Investment Management Services LLC (since December 2012); formerly Executive Vice President of Jennison Associates LLC and Head of Retail Distribution of PGIM Investments LLC (June 2005-December 2011). | None. | Since January 2012 |
Scott E. Benjamin 5/21/73 Board Member & Vice President Portfolios Overseen:96 | Executive Vice President (since June 2009) of PGIM Investments LLC; Executive Vice President (June 2009-June 2012) and Vice President (since June 2012) of Prudential Investment Management Services LLC; Executive Vice President (since September 2009) of AST Investment Services, Inc.; Senior Vice President of Product Development and Marketing, PGIM Investments (since February 2006); formerly Vice President of Product Development and Product Management, PGIM Investments LLC (2003-2006). | None. | Since March 2010 |
Fund Officers(a) | ||
Name Date of Birth Fund Position | Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer |
Raymond A. O’Hara 9/11/55 Chief Legal Officer | Vice President and Corporate Counsel (since July 2010) of Prudential Insurance Company of America (Prudential); Vice President (March 2011-Present) of Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey; Vice President and Corporate Counsel (March 2011-Present) of Prudential Annuities Life Assurance Corporation; Chief Legal Officer of PGIM Investments LLC (since June 2012); Chief Legal Officer of Prudential Mutual Fund Services LLC (since June 2012) and Corporate Counsel of AST Investment Services, Inc. (since June 2012); formerly Assistant Vice President and Corporate Counsel (September 2008-July 2010) of The Hartford Financial Services Group, Inc.; formerly Associate (September 1980-December 1987) and Partner (January 1988–August 2008) of Blazzard & Hasenauer, P.C. (formerly, Blazzard, Grodd & Hasenauer, P.C.). | Since June 2012 |
Dino Capasso 8/19/74 Chief Compliance Officer | Chief Compliance Officer (July 2019-Present) of PGIM Investments LLC; Chief Compliance Officer (July 2019-Present) of the PGIM Funds, Target Funds, Advanced Series Trust, The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc., PGIM Global High Yield Fund, Inc., and PGIM High Yield Bond Fund, Inc.; Vice President and Deputy Chief Compliance Officer (June 2017-2019) of PGIM Investments LLC; formerly, Senior Vice President and Senior Counsel (January 2016-June 2017), and Vice President and Counsel (February 2012-December 2015) of Pacific Investment Management Company LLC. | Since March 2018 |
Andrew R. French 12/22/62 Secretary | Vice President of PGIM Investments LLC (December 2018-Present); formerly Vice President and Corporate Counsel (February 2010-December 2018) of Prudential; formerly Director and Corporate Counsel (2006-2010) of Prudential; Vice President and Assistant Secretary (since January 2007) of PGIM Investments LLC; Vice President and Assistant Secretary (since January 2007) of Prudential Mutual Fund Services LLC. | Since October 2006 |
Jonathan D. Shain 8/9/58 Assistant Secretary | Vice President and Corporate Counsel (since August 1998) of Prudential; Vice President and Assistant Secretary (since May 2001) of PGIM Investments LLC; Vice President and Assistant Secretary (since February 2001) of Prudential Mutual Fund Services LLC; formerly Vice President and Assistant Secretary (May 2003-June 2005) of AST Investment Services, Inc. | Since May 2005 |
Claudia DiGiacomo 10/14/74 Assistant Secretary | Vice President and Corporate Counsel (since January 2005) of Prudential; Vice President and Assistant Secretary of PGIM Investments LLC (since December 2005); formerly Associate at Sidley Austin Brown & Wood LLP (1999-2004). | Since December 2005 |
Diana N. Huffman 4/14/82 Assistant Secretary | Vice President and Corporate Counsel (since September 2015) of Prudential; formerly Associate at Willkie Farr & Gallagher LLP (2009-2015). | Since March 2019 |
Kelly A. Coyne 8/8/68 Assistant Secretary | Director, Investment Operations of Prudential Mutual Fund Services LLC (since 2010). | Since March 2015 |
Christian J. Kelly 5/5/75 Treasurer and Principal Financial and Accounting Officer | Vice President, Head of Fund Administration of PGIM Investments LLC (since November 2018); formerly, Director of Fund Administration of Lord Abbett & Co. LLC (2009-2018), Treasurer and Principal Accounting Officer of the Lord Abbett Family of Funds (2017-2018); Director of Accounting, Avenue Capital Group (2008-2009); Senior Manager, Investment Management Practice of Deloitte & Touche LLP (1998-2007). | Since January 2019 |
Lana Lomuti 6/7/67 Assistant Treasurer | Vice President (since 2007) and Director (2005-2007), within PGIM Investments Fund Administration; formerly Assistant Treasurer (December 2007-February 2014) of The Greater China Fund, Inc. | Since April 2014 |
Russ Shupak 10/08/73 Assistant Treasurer | Vice President (since 2017) and Director (2013-2017), within PGIM Investments Fund Administration. | Since October 2019 |
Deborah Conway 3/26/69 Assistant Treasurer | Vice President (since 2017) and Director (2007-2017), within PGIM Investments Fund Administration. | Since October 2019 |
Elyse M. McLaughlin 1/20/74 Assistant Treasurer | Vice President (since 2017) and Director (2011-2017), within PGIM Investments Fund Administration. | Since October 2019 |
Charles H. Smith 1/11/73 Anti-Money Laundering Compliance Officer | Vice President, Corporate Compliance, Anti-Money Laundering Unit (since January 2015) of Prudential; committee member of the American Council of Life Insurers Anti-Money Laundering and Critical Infrastructure Committee (since January 2016); formerly Global Head of Economic Sanctions Compliance at AIG Property Casualty (February 2007-December 2014); Assistant Attorney General at the New York State Attorney General's Office, Division of Public Advocacy. (August 1998-January 2007). | Since January 2017 |
■ | Board Members are deemed to be “Interested,” as defined in the 1940 Act, by reason of their affiliation with PGIM Investments LLC and/or an affiliate of PGIM Investments LLC. |
■ | Unless otherwise noted, the address of all Board Members and Officers is c/o PGIM Investments LLC, 655 Broad Street, Newark, New Jersey 07102-4410. |
■ | There is no set term of office for Board Members or Officers. The Board Members have adopted a retirement policy, which calls for the retirement of Board Members on December 31 of the year in which they reach the age of 75. |
■ | “Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the 1934 Act (that is, “public companies”) or other investment companies registered under the 1940 Act. |
■ | “Portfolios Overseen” includes all investment companies managed by PGIM Investments LLC. The investment companies for which PGIM Investments LLC serves as manager include the PGIM Funds, The Prudential Variable Contract Accounts, PGIM ETF Trust, PGIM High Yield Bond Fund, Inc., PGIM Global High Yield Fund, Inc., The Prudential Series Fund, Prudential's Gibraltar Fund, Inc. and the Advanced Series Trust. |
Name | Aggregate Fiscal Year Compensation from Funds | Pension or Retirement Benefits Accrued as Part of Fund Expenses | Estimated Annual Benefits Upon Retirement | Total Compensation from Funds and Fund Complex for Most Recent Calendar Year |
Compensation Received by Independent Board Members | ||||
Ellen S. Alberding | $22,270 | None | None | $312,000 (32/96)* |
Kevin J. Bannon | $23,280 | None | None | $322,000 (32/96)* |
Linda W. Bynoe** | $23,280 | None | None | $322,000 (32/96)* |
Barry H. Evans** | $22,117 | None | None | $309,000 (31/95)* |
Keith F. Hartstein** | $29,747 | None | None | $386,000 (32/96)* |
Laurie Simon Hodrick** | $22,507 | None | None | $313,000 (31/95)* |
Michael S. Hyland** | $22,860 | None | None | $318,000 (32/96)* |
Richard A. Redeker** # | $10,530 | None | None | $309,000 (32/96)* |
Brian K. Reid | $22,117 | None | None | $266,500 (31/95)* |
Grace C. Torres | $18,090 | None | None | $269,000 (31/95)* |
Board Committee Meetings (for most recently completed fiscal year) | ||
Audit Committee | Nominating & Governance Committee | Dryden Investment Committee |
7 | 4 | 4 |
Name | Dollar Range of Equity Securities in each Fund | Aggregate Dollar Range of Equity Securities in All Registered Investment Companies Overseen by Board Member in Fund Complex |
Board Member Share Ownership: Independent Board Members | ||
Ellen S. Alberding | None | Over $100,000 |
Kevin J. Bannon | PGIM Short Duration High Yield Income Fund: $50,001-$100,000 | Over $100,000 |
Linda W. Bynoe | None | Over $100,000 |
Barry H. Evans | None | Over $100,000 |
Keith F. Hartstein | None | Over $100,000 |
Laurie Simon Hodrick | None | Over $100,000 |
Michael S. Hyland | None | Over $100,000 |
Brian K. Reid | Over $100,000 | |
Grace C. Torres | PGIM High Yield Fund: $50,001-$100,000 | Over $100,000 |
Board Member Share Ownership: Interested Board Members | ||
Stuart S. Parker | None | Over $100,000 |
Scott E. Benjamin | None | Over $100,000 |
■ | the salaries and expenses of all of its and the Funds' personnel except the fees and expenses of Independent Board Members; |
■ | all expenses incurred by the Manager or the Funds in connection with managing the ordinary course of a Fund’s business, other than those assumed by the Funds as described below; and |
■ | the fees, costs and expenses payable to any investment subadviser pursuant to a subadvisory agreement between PGIM Investments and such investment subadviser. |
■ | the fees and expenses incurred by the Funds in connection with the management of the investment and reinvestment of the Funds' assets payable to the Manager; |
■ | the fees and expenses of Independent Board Members; |
■ | the fees and certain expenses of the Custodian and transfer and dividend disbursing agent, including the cost of providing records to the Manager in connection with its obligation of maintaining required records of the Funds and of pricing the Funds' shares; |
■ | the charges and expenses of the Funds' legal counsel and independent auditors and of legal counsel to the Independent Board Members; |
■ | brokerage commissions and any issue or transfer taxes chargeable to the Funds in connection with securities (and futures, if applicable) transactions; |
■ | all taxes and corporate fees payable by the Funds to governmental agencies; |
■ | the fees of any trade associations of which the Funds may be a member; |
■ | the cost of share certificates representing, and/or non-negotiable share deposit receipts evidencing, shares of the Funds; |
■ | the cost of fidelity, directors and officers and errors and omissions insurance; |
■ | the fees and expenses involved in registering and maintaining registration of the Funds and of Fund shares with the SEC and paying notice filing fees under state securities laws, including the preparation and printing of the Funds' registration statements and prospectuses for such purposes; allocable communications expenses with respect to investor services and all expenses of shareholders' and Board meetings and of preparing, printing and mailing reports and notices to shareholders; and |
■ | litigation and indemnification expenses and other extraordinary expenses not incurred in the ordinary course of the Funds' business and distribution and service (12b-1) fees. |
Management Fees Paid by PGIM High Yield Fund | |||
2019 | 2018 | 2017 | |
Gross Fee | $31,565,113 | $26,502,303 | $22,230,462 |
Amount Waived/Reimbursed by PGIM Investments | $(38,093) | $(32,839) | None |
Net Fee | $31,527,020 | $26,469,464 | $22,230,462 |
Management Fees Paid by PGIM Short Duration High Yield Income Fund | |||
2019 | 2018 | 2017 | |
Gross Fee | $17,909,404 | $15,757,709 | $16,024,978 |
Amount Waived/Reimbursed by PGIM Investments | $(1,854,601) | $(1,703,553) | (1,026,617) |
Net Fee | $16,054,803 | $14,054,156 | $14,998,361 |
Subadvisory Fees Paid by PGIM Investments: PGIM High Yield Fund* | |||
2019 | 2018 | 2017 | |
$15,790,102 | $13,258,624 | $11,122,595 |
Subadvisory Fees Paid by PGIM Investments: PGIM Short Duration High Yield Income Fund** | |||
2019 | 2018 | 2017 | |
$9,177,098 | $8,061,093 | $8,199,805 |
Other Funds and Investment Accounts Managed by the Portfolio Managers | |||||
Fund | Subadviser | Portfolio Managers | Registered Investment Companies/Total Assets | Other Pooled Investment Vehicles/ Total Assets | Other Accounts/ Total Assets |
PGIM High Yield Fund | PGIM Fixed Income* | Robert Cignarella, CFA | 31/$9,697,900,010 | 20/$6,518,657,535 | 122/$12,801,333,128 |
Robert Spano, CFA, CPA | 31/$9,697,900,010 | 20/$6,518,657,535 | 122/$12,801,333,128 | ||
Ryan Kelly, CFA | 31/$9,697,900,010 | 20/$6,518,657,535 | 122/$12,801,333,128 | ||
Brian Clapp, CFA | 31/$9,697,900,010 | 20/$6,518,657,535 | 122/$12,801,333,128 | ||
Daniel Thorogood, CFA | 31/$9,697,900,010 | 20/$6,518,657,535 | 122/$12,801,333,128 | ||
PGIM Short Duration High Yield Income Fund | PGIM Fixed Income* | Robert Cignarella, CFA | 31$15,225,767,021 | 20/$6,518,657,535 | 122/$12,801,333,128 |
Robert Spano, CFA, CPA | 31$15,225,767,021 | 20/$6,518,657,535 | 122/$12,801,333,128 | ||
Ryan Kelly, CFA | 31$15,225,767,021 | 20/$6,518,657,535 | 122/$12,801,333,128 | ||
Brian Clapp, CFA | 31$15,225,767,021 | 20/$6,518,657,535 | 122/$12,801,333,128 | ||
Daniel Thorogood, CFA | 31$15,225,767,021 | 20/$6,518,657,535 | 122/$12,801,333,128 |
Personal Investments and Financial Interests of the Portfolio Managers | ||
Subadviser | Portfolio Managers | Investments and Other Financial Interests in the Funds and Similar Strategies* |
PGIM Fixed Income | Robert Cignarella, CFA | $500,001 - $1,000,000 |
Robert Spano, CFA, CPA | $50,001 - $100,000 | |
Ryan Kelly, CFA | $10,001 - $50,000 | |
Brian Clapp, CFA | $100,001 - $500,000 |
Personal Investments and Financial Interests of the Portfolio Managers | ||
Subadviser | Portfolio Managers | Investments and Other Financial Interests in the Funds and Similar Strategies* |
Daniel Thorogood, CFA | None |
1. | business initiatives; |
2. | the number of investment professionals receiving a bonus and related peer group compensation; |
3. | financial metrics of the business relative to those of appropriate peer groups; and |
4. | investment performance of portfolios: (i) relative to appropriate peer groups; and/or (ii) as measured against relevant investment indices. |
■ | elimination of the conflict; |
■ | disclosure of the conflict; or |
■ | management of the conflict through the adoption of appropriate policies, procedures or other mitigants. |
■ | Performance Fees - PGIM Fixed Income manages accounts with asset-based fees alongside accounts with performance-based fees. This side-by-side management may be deemed to create an incentive for PGIM Fixed Income and its investment professionals to favor one account over another. Specifically, PGIM Fixed Income or its affiliates could be considered to have the incentive to favor accounts for which PGIM Fixed Income or an affiliate receives performance fees, and possibly take greater investment risks in those accounts, in order to bolster performance and increase its fees. |
■ | Affiliated accounts - PGIM Fixed Income manages accounts on behalf of its affiliates as well as unaffiliated accounts. PGIM Fixed Income could be considered to have an incentive to favor accounts of affiliates over others. |
■ | Large accounts/higher fee strategies - large accounts and clients typically generate more revenue than do smaller accounts or clients and certain of PGIM Fixed Income’s strategies have higher fees than others. As a result, a portfolio manager could be considered to have an incentive when allocating scarce investment opportunities to favor accounts that pay a higher fee or generate more income for PGIM Fixed Income. |
■ | Long only and long/short accounts - PGIM Fixed Income manages accounts that only allow it to hold securities long as well as accounts that permit short selling. PGIM Fixed Income may, therefore, sell a security short in some client accounts while holding the same security long in other client accounts. These short sales could reduce the value of the securities held in the long only accounts. In addition, purchases for long only accounts could have a negative impact on the short positions. |
■ | Securities of the same kind or class - PGIM Fixed Income sometimes buys or sells, or direct or recommend that a client buy or sell, securities of the same kind or class that are purchased or sold for another client at prices that may be different. Although such pricing differences could appear as preferences for one client over another, PGIM Fixed Income’s trade execution in each case is driven by its consideration of a variety of factors as PGIM Fixed Income seeks the most advantageous terms reasonably attainable in the circumstances. PGIM Fixed Income may also, at any time, execute trades of securities of the same kind or class in one direction for an account and in the opposite direction for another account, or not trade such securities in any other account. While such trades (or a decision not to trade) could appear as inconsistencies in how PGIM Fixed Income views a security for one client versus another, opposite way trades are generally due to differences in investment strategy, portfolio composition or client direction. |
■ | Investment at different levels of an issuer’s capital structure - PGIM Fixed Income may invest client assets in the same issuer, but at different levels in the issuer’s capital structure. For instance, PGIM Fixed Income may invest client assets in private securities or loans of an issuer and invest the assets of other clients in publicly traded securities of the same issuer. In addition, PGIM Fixed Income may invest client assets in a class or tranche of securities of a structured finance vehicle (such as a collateralized loan obligation, asset-backed security or mortgage-backed security) where PGIM Fixed Income also, at the same or different time, invests the assets of another client (including affiliated clients) in a different class or tranche of securities of the same vehicle. These different securities may have different voting rights, dividend or repayment priorities, rights in bankruptcy or other features that conflict with one another. For some of these securities (particularly private structured product investments for which clients own all or a significant portion of the outstanding securities or obligations), PGIM Fixed Income may have input regarding the characteristics and the relative rights and priorities of the various classes or tranches. When PGIM Fixed Income invests client assets in different levels of an issuer’s capital structure, it may take actions with respect to the assets held by one client (including affiliated clients) that are potentially adverse to other clients, for example, by foreclosing on loans or by putting an issuer into default. In negotiating the terms and conditions of any such investments, or any subsequent amendments or waivers, PGIM Fixed Income may find that the interests of a client and the interests of one or more other clients (including affiliated clients) could conflict. In these situations, decisions over proxy voting, corporate reorganizations, how to exit an investment, bankruptcy matters (including, for example, whether to trigger an event of default or the terms of any workout) or other actions or inactions may result in conflicts of interest. Similarly, if an issuer in which a client and one or more other clients directly or indirectly hold different classes of securities encounters financial problems, decisions over the terms of any workout will raise conflicts of interests (including potential conflicts over proposed waivers and amendments to debt covenants). For example, a senior bond holder may prefer a liquidation of the issuer in which it may be paid in full, whereas an equity or junior bond holder might prefer a reorganization that holds the potential to create value for the equity holders or junior bond holders. In some cases, PGIM Fixed Income may refrain from taking certain actions or making investments on behalf of certain clients or PGIM Fixed Income may sell investments for certain clients, in each case in order to mitigate conflicts of interest or legal, regulatory or other risks to PGIM Fixed Income. This could potentially disadvantage the clients on whose behalf the actions are not taken, investments are not made, or investments are sold. Conversely, in other cases, PGIM Fixed Income will not refrain from taking actions |
or making investments on behalf of some clients (including affiliated clients), which could potentially disadvantage other clients. Any of the foregoing conflicts of interest will be resolved on a case-by-case basis. Any such resolution will take into consideration the interests of the relevant clients, the circumstances giving rise to the conflict and applicable laws. | |
■ | Financial interests of investment professionals - PGIM Fixed Income investment professionals may invest in certain investment vehicles that it manages, including ETFs, mutual funds and private funds. Also, certain of these investment vehicles are options under the 401(k) and deferred compensation plans offered by Prudential Financial, Inc. In addition, the value of grants under PGIM Fixed Income’s long-term incentive plan and targeted long-term incentive plan is affected by the performance of certain client accounts. As a result, PGIM Fixed Income investment professionals may have financial interests in accounts managed by PGIM Fixed Income or that are related to the performance of certain client accounts. |
■ | Non-discretionary accounts - PGIM Fixed Income provides non-discretionary investment advice to some clients and manages others on a discretionary basis. Trades in non-discretionary accounts or accounts where discretion is limited could occur before, in concert with, or after PGIM Fixed Income executes similar trades in its discretionary accounts. The non-discretionary/limited discretion clients may be disadvantaged if PGIM Fixed Income delivers investment advice to them after it initiates trading for the discretionary clients, or vice versa. |
■ | In keeping with PGIM Fixed Income’s fiduciary obligations, its policy with respect to trade aggregation and allocation is to treat all of its client accounts fairly and equitably over time. PGIM Fixed Income’s trade management oversight committee, which generally meets quarterly, is responsible for providing oversight with respect to trade aggregation and allocation. Its compliance group periodically reviews a sampling of new issue allocations and related documentation to confirm compliance with the trade aggregation and allocation procedures. In addition, the compliance and investment risk management groups review forensic reports regarding new issue and secondary trade activity on a quarterly basis. This forensic analysis includes such data as the: (i) number of new issues allocated in the strategy; (ii) size of new issue allocations to each portfolio in the strategy; (iii) profitability of new issue transactions; (iv) portfolio turnover; and (v) metrics related to large and block trade activity. The results of these analyses are reviewed and discussed at PGIM Fixed Income’s trade management oversight committee meetings. The procedures above are designed to detect patterns and anomalies in PGIM Fixed Income’s side-by-side management and trading so that it may assess and improve its processes. |
■ | PGIM Fixed Income has procedures that specifically address its side-by-side management of certain long/short and long only portfolios. These procedures address potential conflicts that could arise from differing positions between long/short and long only portfolios. In addition, lending opportunities with respect to securities for which the market is demanding a slight premium rate over normal market rates are allocated to long only accounts prior to allocating the opportunities to long/short accounts. |
■ | Conflicts Related to Outside Business Activity. From time to time, certain of PGIM Fixed Income employees or officers may engage in outside business activity, including outside directorships. Any outside business activity is subject to prior approval pursuant to PGIM Fixed Income’s personal conflicts of interest and outside business activities policy. Actual and potential conflicts of interest are analyzed during such approval process. PGIM Fixed Income could be restricted in trading the securities of certain issuers in client portfolios in the unlikely event that an employee or officer, as a result of outside business activity, obtains material, non-public information regarding an issuer. |
■ | Conflicts Related to Investment of Client Assets in Affiliated Funds. PGIM Fixed Income may invest client assets in funds that it manages or subadvises for an affiliate. PGIM Fixed Income may also invest cash collateral from securities lending transactions in these funds. These investments benefit both PGIM Fixed Income and its affiliate. |
■ | PICA General Account. Because of the substantial size of the general accounts of PGIM Fixed Income’s affiliated insurance companies, trading by these general accounts, including PGIM Fixed Income’s trades on behalf of the accounts, may affect the market prices or limit the availability of the securities or instruments transacted. Although PGIM Fixed Income does not expect that the general accounts of affiliate insurers will execute transactions that will move a market frequently, and generally only in response to unusual market or issuer events, the execution of these transactions could have an adverse effect on transactions for or positions held by other clients. |
■ | it serves as investment adviser for the proprietary accounts of investment consultants and/or their affiliates, and as adviser or subadviser to funds offered by investment consultants and/or their affiliates; |
■ | it invites investment consultants to events or other entertainment hosted by PGIM Fixed Income; |
■ | it purchases software applications, market data, access to databases, technology services and other products or services from certain investment consultants; and |
■ | it may pay for the opportunity to participate in conferences organized by investment consultants. |
Securities Lending Activities | ||
PGIM High Yield Fund | PGIM Short Duration High Yield Income Fund | |
Gross income from securities lending activities | $49,190,329 | $11,671,179 |
Fees and/or compensation for securities lending activities and related services | ||
Fees paid to securities lending agent from a revenue split | $(672,857) | $(93,455) |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) | $(1,275,017) | $(330,176) |
Administrative fees not included in revenue split | $0 | $0 |
Indemnification fee not included in revenue split | $0 | $0 |
Rebate (paid to borrower) | $(39,467,678) | $(10,171,629) |
Other fees not included in revenue split (specify) | $0 | $0 |
Aggregate fees/compensation for securities lending activities | $(41,415,552) | $(10,595,260) |
Net income from securities lending activities | $7,774,777 | $1,075,919 |
Fees Paid to PMFS | |
Fund Name | Amount |
PGIM High Yield Fund | $1,017,743 |
PGIM Short Duration High Yield Income Fund | $118,190 |
Payments Received by the Distributor: PGIM High Yield Fund | |
CLASS A CONTINGENT DEFERRED SALES CHARGES (CDSC) | $1,472 |
CLASS A DISTRIBUTION AND SERVICE (12B-1) FEES | $3,506,604 |
CLASS A INITIAL SALES CHARGES | $2,245,252 |
CLASS B CONTINGENT DEFERRED SALES CHARGES (CDSC) | $38,592 |
CLASS B DISTRIBUTION AND SERVICE (12B-1) FEES | $754,472 |
CLASS C CONTINGENT DEFERRED SALES CHARGES (CDSC) | $12,385 |
CLASS C DISTRIBUTION AND SERVICE (12B-1) FEES | $2,346,016 |
CLASS R DISTRIBUTION AND SERVICE (12B-1) FEES | $537,504 |
CLASS R2 DISTRIBUTION (12B-1) FEES | $15,634 |
Payments Received by the Distributor: PGIM Short Duration High Yield Income Fund | |
CLASS A CONTINGENT DEFERRED SALES CHARGES (CDSC) | $0 |
CLASS A DISTRIBUTION AND SERVICE (12B-1) FEES | 631,534 |
CLASS A INITIAL SALES CHARGES | $740,837 |
CLASS C CONTINGENT DEFERRED SALES CHARGES (CDSC) | $33,759 |
CLASS C DISTRIBUTION AND SERVICE (12B-1) FEES | $3,260,672 |
Amounts Spent by the Distributor: PGIM High Yield Fund | ||||
Share Class | Printing & Mailing Prospectuses to Other than Current Shareholders | Compensation to Broker/Dealers for Commissions to Representatives and Other Expenses* | Overhead Costs** | Total Amount Spent |
CLASS A | $0 | $3,430,481 | $275,698 | $3,706,179 |
CLASS B | $0 | $248,533 | $11 | $248,544 |
CLASS C | $0 | $2,107,623 | $51,565 | $2,159,188 |
CLASS R | $0 | $316,635 | $6,678 | $323,313 |
CLASS R2 | $0 | $15,751 | $5,169 | $20,920 |
CLASS R4 | $0 | $0 | $3,981 | $3,981 |
Amounts Spent by the Distributor: PGIM Short Duration High Yield Income Fund | ||||
Share Class | Printing & Mailing Prospectuses to Other than Current Shareholders | Compensation to Broker/Dealers for Commissions to Representatives and Other Expenses* | Overhead Costs** | Total Amount Spent |
CLASS A | $0 | $563,211 | $173,176 | $736,387 |
CLASS C | $0 | $2,919,006 | $85,576 | $3,004,582 |
■ | Prudential Retirement |
■ | Wells Fargo Advisors, LLC |
■ | Ameriprise Financial, Inc. |
■ | Charles Schwab & Co, Inc. |
■ | Morgan Stanley Smith Barney |
■ | Raymond James Financial |
■ | Merrill Lynch Pierce Fenner & Smith, Inc. |
■ | National Financial Services |
■ | UBS |
■ | LPL Financial LLC |
■ | Edward Jones |
■ | Great-West |
■ | Commonwealth Financial Network |
■ | Principal Securities, Inc. |
■ | Cetera Advisor Networks |
■ | Matrix Financial Group |
■ | Voya Financial |
■ | PNC |
■ | AIG Advisor Group |
■ | American United Life Insurance Co. |
■ | ADP Broker Dealer, Inc. |
■ | Nationwide Investment Services Co. |
■ | John Hancock |
■ | Massachusetts Mutual |
■ | TIAA-CREF |
■ | Ascensus, Inc. |
■ | Midatlantic Capital Group |
■ | Reliance Trust Company |
■ | The Hartford |
■ | Standard Insurance Company |
■ | Northwestern Mutual |
■ | Alight Financial Solutions |
■ | Securities America, Inc. |
■ | Cambridge Investment Research |
■ | T. Rowe Price |
■ | Valic Financial Advisors, Inc. |
■ | Lincoln Financial Group |
■ | RBC Capital Markets, LLC |
■ | The Ohio National Life Insurance Company |
■ | TD Ameritrade |
■ | Sammons Retirement Solutions |
■ | The Vanduard Group, Inc. |
■ | Conduent, Inc. |
■ | Genworth Financial, Inc. |
■ | Citigroup, Inc. |
■ | Security Benefit |
■ | Newport Group, Inc. |
■ | Janney Montgomery Scott, LLC |
■ | Securities Service Network, LLC |
■ | KMS Financial Services, Inc. |
■ | Investacorp |
■ | Northern Trust |
■ | Oppenheimer & Co, Inc. |
Offering Price Per Share | ||
PGIM High Yield Fund | PGIM Short Duration High Yield Income Fund | |
Class A | ||
NAV and redemption price per Class A share | $5.49 | $8.97 |
Maximum initial sales charge (4.50% and 2.25% of offering price for each of PGIM High Yield Fund and PGIM Short Duration High Yield Income Fund) | $0.18 | $0.21 |
Maximum offering price to public | $5.67 | $9.18 |
Offering Price Per Share | ||
PGIM High Yield Fund | PGIM Short Duration High Yield Income Fund | |
Class B (PGIM High Yield Fund only) | ||
NAV, offering price and redemption price per Class B share | $5.48 | N/A |
Class C | ||
NAV, offering price and redemption price per Class C share | $5.48 | $8.97 |
Class R (PGIM High Yield Fund only) | ||
NAV, offering price and redemption price per Class R share | $5.49 | N/A |
Class Z | ||
NAV, offering price and redemption price per Class Z share | $5.50 | $8.97 |
Class R2 (PGIM High Yield Fund only) | ||
NAV, offering price and redemption price per Class R2 share | $5.50 | N/A |
Class R4 (PGIM High Yield Fund only) | ||
NAV, offering price and redemption price per Class R4 share | $5.50 | N/A |
Class R6 | ||
NAV, offering price and redemption price per Class R6 share | $5.49 | $8.97 |
Brokerage Commissions Paid by PGIM High Yield Fund ($) | |||
2019 | 2018 | 2017 | |
Total brokerage commissions paid by the Fund | $87,700 | $75,429 | $61,112 |
Total brokerage commissions paid to affiliated brokers | None | None | None |
Percentage of total brokerage commissions paid to affiliated brokers | None | None | None |
Brokerage Commissions Paid by PGIM Short Duration High Yield Income Fund ($) | |||
2019 | 2018 | 2017 | |
Total brokerage commissions paid by the Fund | $25,309 | $19,655 | $29,676 |
Brokerage Commissions Paid by PGIM Short Duration High Yield Income Fund ($) | |||
2019 | 2018 | 2017 | |
Total brokerage commissions paid to affiliated brokers | None | None | None |
Percentage of total brokerage commissions paid to affiliated brokers | None | None | None |
Broker-Dealer Securities Holdings ($) (as of most recently completed fiscal year) | ||
Equity or Debt | Amount | |
PGIM High Yield Fund | ||
CIT CAPITAL SECURITIES, LLC | Debt | $28,590,375 |
GOLDMAN SACHS & CO. | Equity | $2,404,680 |
NatWest Market Securities Inc. | Debt | $6,489,000 |
PGIM Short Duration High Yield Income Fund | ||
CIT CAPITAL SECURITIES, LLC | Debt | $2,352,000 |
PGIM Short Duration High Yield Income Fund | |
Class A Common Stock | 160,000,000 |
Class C Common Stock | 100,000,000 |
Class R6 Common Stock | 150,000,000 |
Class Z Common Stock | 700,000,000 |
Class T Common Stock | 75,000,000 |
PGIM High Yield Fund | |
Class A Common Stock | 665,000,000 |
Class B Common Stock | 50,000,000 |
Class C Common Stock | 200,000,000 |
Class R6 Common Stock | 1,000,000,000 |
Class R Common Stock | 150,000,000 |
Class Z Common Stock | 2,250,000,000 |
Class T Common Stock | 300,000,000 |
Class R2 Common Stock | 100,000,000 |
Class R4 Common Stock | 100,000,000 |
Principal Fund Shareholders (as of October 8, 2019) | |||
Fund Name and Share Class | Shareholder Name and Address | No. of Shares | % of Class |
PGIM SHRT DUR HGH YLD INC CL A | NATIONAL FINANCIAL SERVICES LLC FOR EXCLUSIVE BENEFIT OF OUR CUSTOMERS ATTN MUTUAL FUNDS DEPT - 4TH FLOOR 499 WASHINGTON BLVD JERSEY CITY NJ 07310 | 3,797,579.839 | 12.44% |
PGIM SHRT DUR HGH YLD INC CL A | WELLS FARGO CLEARING SVCS LLC SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER 2801 MARKET ST SAINT LOUIS MO 63103-2523 | 3,618,329.208 | 11.85% |
PGIM SHRT DUR HGH YLD INC CL A | MORGAN STANLEY SMITH BARNEY LLC FOR THE EXCLUSIVE BENEFIT OF ITS CUSTOMERS 1 NEW YORK PLAZA FL 12 NEW YORK NY 10004-1901 | 3,454,414.781 | 11.32% |
PGIM SHRT DUR HGH YLD INC CL A | UBS WM USA 0O0 11011 6100 SPEC CDY A/C EXL BEN CUSTOMERS OF UBSFSI 1000 HARBOR BLVD WEEHAWKEN, NJ 07086 | 2,923,706.426 | 9.58% |
Principal Fund Shareholders (as of October 8, 2019) | |||
Fund Name and Share Class | Shareholder Name and Address | No. of Shares | % of Class |
PGIM SHRT DUR HGH YLD INC CL A | AMERICAN ENTERPRISE INVESTMENT SVC (FBO) 41999970 707 2ND AVE SOUTH MINNEAPOLIS MN 55402-2405 | 2,588,065.656 | 8.48% |
PGIM SHRT DUR HGH YLD INC CL A | EDWARD D JONES & CO ATTN: MUTUAL FUND SHAREHOLDER ACCOUNTING 201 PROGRESS PKWY MARYLAND HTS MO 63043-3003 | 2,487,801.658 | 8.15% |
PGIM SHRT DUR HGH YLD INC CL A | PERSHING LLC 1 PERSHING PLAZA JERSEY CITY NJ 07399-0002 | 2,056,551.186 | 6.74% |
PGIM SHRT DUR HGH YLD INC CL C | WELLS FARGO CLEARING SVCS LLC SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER 2801 MARKET ST SAINT LOUIS MO 63103-2523 | 8,391,928.864 | 22.60% |
PGIM SHRT DUR HGH YLD INC CL C | AMERICAN ENTERPRISE INVESTMENT SVC (FBO) 41999970 707 2ND AVE SOUTH MINNEAPOLIS MN 55402-2405 | 5,888,573.559 | 15.86% |
PGIM SHRT DUR HGH YLD INC CL C | RAYMOND JAMES OMNIBUS FOR MUTUAL FUNDS HOUSE ACCT FIRM 92500015 ATTN COURTNEY WALLER 880 CARILLON PARKWAY ST PETERSBURG FL 33716 | 3,813,941.129 | 10.27% |
PGIM SHRT DUR HGH YLD INC CL C | MERRILL LYNC,PIERC,FENNER&SMITH FOR THE SOLE BENEFIT OF ITS CUST 4800 DEER LAKE DR E JACKSONVILLE FL 32246-6484 | 3,090,055.178 | 8.32% |
PGIM SHRT DUR HGH YLD INC CL C | MORGAN STANLEY SMITH BARNEY LLC FOR THE EXCLUSIVE BENEFIT OF ITS CUSTOMERS 1 NEW YORK PLAZA FL 12 NEW YORK NY 10004-1901 | 2,795,475.099 | 7.53% |
PGIM SHRT DUR HGH YLD INC CL C | LPL FINANCIAL A/C 1000-0005 4707 EXECUTIVE DRIVE SAN DIEGO CA 92121-3091 | 2,701,014.451 | 7.27% |
PGIM SHRT DUR HGH YLD INC CL C | NATIONAL FINANCIAL SERVICES LLC FOR EXCLUSIVE BENEFIT OF OUR CUSTOMERS ATTN MUTUAL FUNDS DEPT - 4TH FLOOR 499 WASHINGTON BLVD JERSEY CITY NJ 07310 | 2,442,840.563 | 6.58% |
PGIM SHRT DUR HGH YLD INC CL C | PERSHING LLC 1 PERSHING PLAZA JERSEY CITY NJ 07399-0002 | 2,336,923.504 | 6.29% |
PGIM SHRT DUR HGH YLD INC CL R6 | BAND & CO C/O US BANK NA PO BOX 1787 MILWAUKEE WI 53201-1787 | 8,831,109.267 | 44.60% |
PGIM SHRT DUR HGH YLD INC CL R6 | EDWARD D JONES & CO ATTN: MUTUAL FUND SHAREHOLDER ACCOUNTING 201 PROGRESS PKWY MARYLAND HTS MO 63043-3003 | 7,230,857.874 | 36.52% |
Principal Fund Shareholders (as of October 8, 2019) | |||
Fund Name and Share Class | Shareholder Name and Address | No. of Shares | % of Class |
PGIM SHRT DUR HGH YLD INC CL R6 | PRUDENTIAL INVESTMENT PORTFOLIO 16 PGIM INCOME BUILDER FUND ATTN RITA TUCCI VICE PRESIDENT-OPS 2 GATEWAY CTR FL 6 NEWARK NJ 07102-5008 | 2,289,686.610 | 11.56% |
Principal Fund Shareholders (as of October 8, 2019) | |||
Fund Name and Share Class | Shareholder Name and Address | No. of Shares | % of Class |
PGIM HIGH YIELD CL A | NATIONAL FINANCIAL SERVICES LLC FOR EXCLUSIVE BENEFIT OF OUR CUSTOMERS ATTN MUTUAL FUNDS DEPT - 4TH FLOOR 499 WASHINGTON BLVD JERSEY CITY NJ 07310 | 78,051,737.575 | 24.96% |
PGIM HIGH YIELD CL A | WELLS FARGO CLEARING SVCS LLC SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER 2801 MARKET ST SAINT LOUIS MO 63103-2523 | 32,330,891.075 | 10.34% |
PGIM HIGH YIELD CL A | CHARLES SCHWAB & CO INC SPECIAL CUSTODY ACCT FBO CUSTOMERS ATTN MUTUAL FUNDS 211 MAIN ST SAN FRANCISCO CA 94105 | 20,385,160.876 | 6.52% |
PGIM HIGH YIELD CL A | EDWARD D JONES & CO ATTN: MUTUAL FUND SHAREHOLDER ACCOUNTING 201 PROGRESS PKWY MARYLAND HTS MO 63043-3003 | 20,283,546.672 | 6.49% |
PGIM HIGH YIELD CL B | NATIONAL FINANCIAL SERVICES LLC FOR EXCLUSIVE BENEFIT OF OUR CUSTOMERS ATTN MUTUAL FUNDS DEPT - 4TH FLOOR 499 WASHINGTON BLVD JERSEY CITY NJ 07310 | 4,431,187.337 | 31.31% |
PGIM HIGH YIELD CL C | WELLS FARGO CLEARING SVCS LLC SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER 2801 MARKET ST SAINT LOUIS MO 63103-2523 | 8,269,042.619 | 19.79% |
PGIM HIGH YIELD CL C | NATIONAL FINANCIAL SERVICES LLC FOR EXCLUSIVE BENEFIT OF OUR CUSTOMERS ATTN MUTUAL FUNDS DEPT - 4TH FLOOR 499 WASHINGTON BLVD JERSEY CITY NJ 07310 | 5,238,118.226 | 12.54% |
PGIM HIGH YIELD CL C | PERSHING LLC 1 PERSHING PLAZA JERSEY CITY NJ 07399-0002 | 3,568,673.060 | 8.54% |
PGIM HIGH YIELD CL C | EDWARD D JONES & CO ATTN: MUTUAL FUND SHAREHOLDER ACCOUNTING 201 PROGRESS PKWY MARYLAND HTS MO 63043-3003 | 3,327,504.386 | 7.96% |
PGIM HIGH YIELD CL C | AMERICAN ENTERPRISE INVESTMENT SVC (FBO) 41999970 707 2ND AVE SOUTH MINNEAPOLIS MN 55402-2405 | 3,151,306.292 | 7.54% |
Principal Fund Shareholders (as of October 8, 2019) | |||
Fund Name and Share Class | Shareholder Name and Address | No. of Shares | % of Class |
PGIM HIGH YIELD CL C | RAYMOND JAMES OMNIBUS FOR MUTUAL FUNDS HOUSE ACCT FIRM 92500015 ATTN COURTNEY WALLER 880 CARILLON PARKWAY ST PETERSBURG FL 33716 | 3,016,565.528 | 7.22% |
PGIM HIGH YIELD CL C | MERRILL LYNC,PIERC,FENNER&SMITH FOR THE SOLE BENEFIT OF ITS CUST 4800 DEER LAKE DR E JACKSONVILLE FL 32246-6484 | 2,873,109.821 | 6.88% |
PGIM HIGH YIELD CL C | CHARLES SCHWAB & CO INC SPECIAL CUSTODY ACCT FBO CUSTOMERS ATTN MUTUAL FUNDS 211 MAIN ST SAN FRANCISCO CA 94105 | 2,200,125.170 | 5.27% |
PGIM HIGH YIELD CL R | STATE STREET BANK AND TRUST TTEE AND/OR CUSTODIAN (FBO) ADP ACCESS PRODUCT 1 LINCOLN ST BOSTON MA 02111-2901 | 4,478,362.678 | 32.53% |
PGIM HIGH YIELD CL R | VOYA INSTITUTIONAL TRUST COMPANY ONE ORANGE WAY WINDSOR CT 06095-4774 | 3,616,506.680 | 26.27% |
PGIM HIGH YIELD CL R | DCGT AS TTEE AND/OR CUST FBO PLIC VARIOUS RETIREMENT PLANS OMNIBUS ATTN NPIO TRADE DESK 711 HIGH STREET DES MOINES, IA 50392 | 1,824,364.950 | 13.25% |
PGIM HIGH YIELD CL R | PIMS/PRUDENTIAL RETIREMENT AS NOMINEE FOR THE TTEE/CUST PL 006 PRUDENTIAL SMARTSOLUTION IRA 280 TRUMBULL ST. HARTFORD CT 06103 | 811,917.951 | 5.90% |
PGIM HIGH YIELD CL Z | CHARLES SCHWAB CO 211 MAIN ST SAN FRANCISCO CA 94105-1901 | 331,781,187.450 | 33.14% |
PGIM HIGH YIELD CL Z | WELLS FARGO CLEARING SVCS LLC SPECIAL CUSTODY ACCT FOR THE EXCLUSIVE BENEFIT OF CUSTOMER 2801 MARKET ST SAINT LOUIS MO 63103-2523 | 161,719,077.759 | 16.15% |
PGIM HIGH YIELD CL Z | NATIONAL FINANCIAL SERVICES LLC FOR EXCLUSIVE BENEFIT OF OUR CUSTOMERS ATTN MUTUAL FUNDS DEPT 4TH FLOOR 499 WASHINGTON BLVD JERSEY CITY NJ 07310 | 66,462,624.294 | 6.64% |
PGIM HIGH YIELD CL Z | AMERICAN ENTERPRISE INVESTMENT SVC (FBO) 41999970 707 2ND AVE SOUTH MINNEAPOLIS MN 55402-2405 | 61,852,176.034 | 6.18% |
PGIM HIGH YIELD CL Z | RAYMOND JAMES OMNIBUS FOR MUTUAL FUNDS HOUSE ACCT FIRM 92500015 ATTN COURTNEY WALLER 880 CARILLON PARKWAY ST PETERSBURG FL 33716 | 50,588,505.643 | 5.05% |
Principal Fund Shareholders (as of October 8, 2019) | |||
Fund Name and Share Class | Shareholder Name and Address | No. of Shares | % of Class |
PGIM HIGH YIELD CL R2 | DCGT AS TTEE AND/OR CUST FBO PLIC VARIOUS RETIREMENT PLANS OMNIBUS ATTN NPIO TRADE DESK 711 HIGH STREET DES MOINES, IA 50392 | 610,218.746 | 44.76% |
PGIM HIGH YIELD CL R2 | STATE STREET BANK AND TRUST TTEE AND/OR CUSTODIAN (FBO) ADP ACCESS PRODUCT 1 LINCOLN ST BOSTON MA 02111-2901 | 195,835.052 | 14.37% |
PGIM HIGH YIELD CL R2 | FIIOC FBO CALVARY AUTOMATION 100 MAGELLAN WAY #KW1C COVINGTON KY 41015-1987 | 160,489.124 | 11.77% |
PGIM HIGH YIELD CL R2 | FIIOC FBO LEVINSON AXELROD PC PROFIT SHARING PLAN 100 MAGELLAN WAY #KW1C COVINGTON KY 41015-1987 | 119,141.590 | 8.74% |
PGIM HIGH YIELD CL R2 | GREAT-WEST TRUST COMPANY LLC TTEE F EMPLOYEE BENEFITS CLIENTS 401K 8515 E ORCHARD RD 2T2 GREENWOOD VILLAGE CO 80111 | 106,451.443 | 7.81% |
PGIM HIGH YIELD CL R4 | MERRILL LYNC,PIERC,FENNER&SMITH FOR THE SOLE BENEFIT OF ITS CUST 4800 DEER LAKE DR E JACKSONVILLE FL 32246-6484 | 780,816.774 | 32.95% |
PGIM HIGH YIELD CL R4 | DCGT AS TTEE AND/OR CUST FBO PLIC VARIOUS RETIREMENT PLANS OMNIBUS ATTN NPIO TRADE DESK 711 HIGH STREET DES MOINES, IA 50392 | 398,636.701 | 16.82% |
PGIM HIGH YIELD CL R4 | NATIONAL FINANCIAL SERVICES LLC 499 WASHINGTON BLVD JERSEY CITY, NJ 07310 | 330,784.577 | 13.96% |
PGIM HIGH YIELD CL R4 | STATE STREET BANK AND TRUST TTEE AND/OR CUSTODIAN (FBO) ADP ACCESS PRODUCT 1 LINCOLN ST BOSTON MA 02111-2901 | 181,026.640 | 7.64% |
PGIM HIGH YIELD CL R6 | EDWARD D JONES & CO ATTN: MUTUAL FUND SHAREHOLDER ACCOUNTING 201 PROGRESS PKWY MARYLAND HTS MO 63043-3003 | 253,989,469.951 | 43.96% |
PGIM HIGH YIELD CL R6 | SAXON & CO. FBO 40400904099990 P O BOX 94597 CLEVELAND OH 44101 | 44,428,620.818 | 7.69% |
PGIM HIGH YIELD CL R6 | J P MORGAN SECURITIES LLC OMNIBUS ACCOUNT FOR THE EXCLUSIVE BENEFIT OF CUSTOMERS 4 CHASE METROTECH CENTER 3RD FLOOR MUTUAL FUND DEPARTMENT BROOKLYN NY 11245 | 38,531,901.181 | 6.67% |
■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or disability of the grantor). This waiver applies to individual shareholders as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability, |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account, |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account, and |
■ | On certain redemptions effected through a Systematic Withdrawal Plan (Class B shares only). |
■ | A request for release of portfolio holdings shall be prepared setting forth a legitimate business purpose for such release which shall specify the Fund(s), the terms of such release, and frequency (e.g., level of detail, staleness). Such request shall address whether there are any conflicts of interest between the Fund and the investment adviser, subadviser, principal underwriter or any affiliated person thereof and how such conflicts shall be dealt with to demonstrate that the disclosure is in the best interest of the shareholders of the Fund(s). |
■ | The request shall be forwarded to PGIM Investments’ Product Development Group and to the Chief Compliance Officer or his delegate for review and approval. |
■ | A confidentiality agreement in the form approved by a Fund officer must be executed by the recipient of the portfolio holdings. |
■ | A Fund officer shall approve the release and the agreement. Copies of the release and agreement shall be sent to PGIM Investments’ Law Department. |
■ | Written notification of the approval shall be sent by such officer to PGIM Investments’ Fund Administration Group to arrange the release of portfolio holdings. |
■ | PGIM Investments’ Fund Administration Group shall arrange the release by the Custodian Bank. |
■ | Full holdings on a daily basis to Institutional Shareholder Services (ISS), Broadridge and Glass, Lewis & Co. (proxy voting administrator/agents) at the end of each day; |
■ | Full holdings on a daily basis to ISS (securities class action claims administrator) at the end of each day; |
■ | Full holdings on a daily basis to a Fund's subadviser(s), Custodian Bank, sub-custodian (if any) and accounting agents (which includes the Custodian Bank and any other accounting agent that may be appointed) at the end of each day. When a Fund has more than one subadviser, each subadviser receives holdings information only with respect to the “sleeve” or segment of the Fund for which the subadviser has responsibility; |
■ | Full holdings to a Fund's independent registered public accounting firm as soon as practicable following the Fund's fiscal year-end or on an as-needed basis; |
■ | Full holdings to a Fund’s counsel on an as-needed basis; |
■ | Full holdings to counsel of a Fund’s independent board members on an as-needed basis; and |
■ | Full holdings to financial printers as soon as practicable following the end of a Fund's quarterly, semi-annual and annual period-ends. |
■ | Fund trades on a quarterly basis to Abel/Noser Corp. (an agency-only broker and transaction cost analysis company) as soon as practicable following a Fund's fiscal quarter-end; |
■ | Full holdings on a daily basis to FactSet Research Systems, Inc. (investment research provider) at the end of each day; |
■ | Full holdings on a daily basis to FT Interactive Data (a fair value information service) at the end of each day; |
■ | Full holdings on a quarterly basis to Frank Russell Company (investment research provider) when made available; |
■ | Full holdings on a monthly basis to Fidelity Advisors (wrap program provider) approximately five days after the end of each month (PGIM Jennison Growth Fund and certain other selected PGIM Funds only); |
■ | Full holdings on a daily basis to ICE (InterContinental Exchange), IHS Markit and Thompson Reuters (securities valuation); |
■ | Full holdings on a daily basis to Standard & Poor’s Corporation (securities valuation); |
■ | Full holdings on a monthly basis to FX Transparency (foreign exchange/transaction analysis) when made available. |
■ | Leading market positions in well-established industries. |
■ | High rates of return on funds employed. |
■ | Conservative capitalization structure with moderate reliance on debt and ample asset protection. |
■ | Broad margins in earnings coverage of fixed financial charges and high internal cash generation. |
■ | Well-established access to a range of financial markets and assured sources of alternate liquidity. |
■ | Amortization schedule-the longer the final maturity relative to other maturities the more likely it will be treated as a note. |
■ | Source of payment-the more dependent the issue is on the market for its refinancing, the more likely it will be treated as a note. |
Name and Principal Business Address | Positions and Offices with Underwriter | Positions and Offices with Registrant | ||
Adam Scaramella (1) | President | N/A | ||
Gary F. Neubeck (2) | Executive Vice President | N/A | ||
Stuart S. Parker (2) | Executive Vice President | Board Member and President | ||
James Gemus (2) | Executive Vice President | N/A | ||
Scott E. Benjamin (2) | Vice President | Board Member and Vice President | ||
Francine Boucher (1) | Senior Vice President, Chief Legal Officer and Secretary | N/A | ||
Peter J. Boland (2) | Senior Vice President and Chief Operating Officer | N/A | ||
John N. Christolini (3) | Senior Vice President | N/A | ||
Mark R. Hastings (2) | Senior Vice President and Chief Compliance Officer | N/A | ||
Robert Smit (2) | Senior Vice President, Comptroller and Chief Financial Officer | N/A | ||
Hansjerg Schlenker (2) | Senior Vice President and Chief Operations Officer | N/A | ||
Monica Oswald (3) | Senior Vice President and Co-Chief Operations Officer | N/A | ||
Charles Smith (4) | Vice President and Anti-Money Laundering Officer | Anti-Money Laundering Compliance Officer |
(1) | 213 Washington Street, Newark, NJ 07102 |
(2) | 655 Broad Street, Newark, NJ 07102 |
(3) | 280 Trumbull Street, Hartford, CT 06103 |
(4) | 751 Broad Street, Newark NJ, 07102 |
Prudential Investment Portfolios, Inc. 15 |
* |
Stuart S. Parker, President |
Signature | Title | Date | ||
* Ellen S. Alberding | Director | |||
* Kevin J. Bannon | Director | |||
* Scott E. Benjamin | Director | |||
* Linda W. Bynoe | Director | |||
* Barry H. Evans | Director | |||
* Keith F. Hartstein | Director | |||
* Laurie Simon Hodrick | Director | |||
* Michael S. Hyland | Director | |||
* Stuart S. Parker | Director and President, Principal Executive Officer | |||
* Brian K. Reid | Director | |||
* Grace C. Torres | Director | |||
* Christian J. Kelly | Treasurer, Principal Financial and Accounting Officer | |||
*By: /s/ Jonathan D. Shain Jonathan D. Shain | Attorney-in-Fact | October 29, 2019 |
/s/ Ellen S. Alberding Ellen S. Alberding | /s/ Laurie Simon Hodrick Laurie Simon Hodrick |
/s/ Kevin J. Bannon Kevin J. Bannon | /s/ Michael S. Hyland Michael S. Hyland |
/s/ Scott E. Benjamin Scott E. Benjamin | /s/ Christian J. Kelly Christian J. Kelly |
/s/ Linda W. Bynoe Linda W. Bynoe | /s/ Stuart S. Parker Stuart S. Parker |
/s/ Barry H. Evans Barry H. Evans | /s/ Brian K. Reid Brian K. Reid |
/s/ Keith F. Hartstein Keith F. Hartstein | /s/ Grace C. Torres Grace C. Torres |
Dated: March 7, 2019 |
Item 28 Exhibit No. | Description | |
(d)(1)(i) | Contractual expense cap for PGIM High Yield Fund | |
(d)(3)(iii) | Contractual expense cap for PGIM Short Duration High Yield Income Fund | |
(d)(5) | Subadvisory Agreement between PGIM Investments LLC, PGIM, Inc. and PGIM Limited, dated September 12, 2019, with respect to PGIM High Yield Fund | |
(j) | Consent of independent registered public accounting firm. | |
(m)(7) | Rule 12b-1 Fee Waiver for Class R Shares of PGIM High Yield Fund. |
PGIM Investments LLC
655 Broad Street – 17th Floor
Newark, New Jersey 07102
September 1, 2019
The Board of Directors
Prudential Investment Portfolios, Inc. 15
655 Broad Street—17th Floor
Newark, New Jersey 07102
Re: PGIM High Yield Fund
To the Board of Directors:
PGIM Investments LLC (PGIM Investments) has contractually agreed, through December 31, 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 0.91% of average daily net assets for Class R2 shares or 0.66% of average daily net assets for Class R4 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. Where applicable, PGIM Investments 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 Fund Operating Expenses for Class R6 shares will not exceed Total Annual Fund Operating Expenses for Class Z shares. 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 December 31, 2020 without the prior approval of the Fund’s Board of Directors.
Very truly yours,
PGIM INVESTMENTS LLC
By:/s/ Scott E. Benjamin
Name:Scott E. Benjamin
Title:Executive Vice President
PGIM Investments LLC
655 Broad Street – 17th Floor
Newark, New Jersey 07102
September 1, 2019
The Board of Directors
Prudential Investment Portfolios, Inc. 15
655 Broad Street—17th Floor
Newark, New Jersey 07102
Re: PGIM Short Duration High Yield Income Fund
To the Board of Directors:
PGIM Investments LLC (PGIM Investments) has contractually agreed, through December 31, 2020, to limit Total Annual Fund Operating Expenses after fee waivers and/or expense reimbursements to 1.00% of average daily net assets for Class A shares, 1.75% of average daily net assets for Class C shares, 0.75% of average daily net assets for Class Z shares, and 0.70% 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 Fund expenses such as dividend and interest expense and broker charges on short sales. Where applicable, PGIM Investments 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 Fund Operating Expenses for Class R6 shares will not exceed Total Annual Fund Operating Expenses for Class Z shares. 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 waiver may not be terminated prior to December 31, 2020 without the prior approval of the Fund’s Board of Directors.
Very truly yours,
PGIM INVESTMENTS LLC
By:/s/ Scott E. Benjamin
Name:Scott E. Benjamin
Title:Executive Vice President
PRUDENTIAL INVESTMENT PORTFOLIOS, INC. 15
PGIM High Yield Fund
AMENDED AND RESTATED SUBADVISORY AGREEMENT
Agreement amended and restated made as of this 12th day of September, 2019 between PGIM Investments LLC (PGIM Investments or the Manager), a New York limited liability company and PGIM, Inc. (PGIM), a New Jersey corporation and PGIM Limited, a U.K. limited company, (PGIM Limited and together with PGIM, the Subadvisers).
WHEREAS, the Manager has entered into a Management Agreement (the Management Agreement) dated July 17, 2003, with Prudential Investment Portfolios, Inc. 15, a Maryland corporation (the Corporation) and a diversified, open-end management investment company registered under the Investment Company Act of 1940 as amended (the 1940 Act), pursuant to which PGIM Investments acts as Manager of the PGIM High Yield Fund, a series of the Corporation (referred to herein as the Fund); and
WHEREAS, the Manager desires to retain the Subadviser to provide investment advisory services to the Fund and one or more of its series as specified in Schedule A hereto (individually and collectively, with the Fund, referred to herein as the Fund) and to manage such portion of the Fund as the Manager shall from time to time direct, and the Subadviser is willing to render such investment advisory services; and
WHEREAS, PGIM Limited is authorized and regulated in the United Kingdom by the Financial Conduct Authority and both PGIM Limited and PGIM are each registered with the Securities and Exchange Commission (the Commission) as an investment adviser under the Investment Advisers Act of 1940, as amended (the Advisers Act).
NOW, THEREFORE, the Parties agree as follows:
1. |
(a) Subject to the supervision of the Manager and the Board of Directors of the Fund, the Subadvisers shall manage such portion of the Fund's portfolio, including the purchase, retention and disposition thereof, in accordance with the Fund's investment objectives, policies and restrictions as stated in its then current prospectus and statement of additional information (such Prospectus and Statement of Additional Information as currently in effect and as amended or supplemented from time to time, being herein called the "Prospectus"), and subject to the following understandings: |
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(i) |
The Subadvisers shall provide supervision of such portion of the Fund's investments as the Manager shall direct, and shall determine from time to time what investments and securities will be purchased, retained, sold or loaned by the Fund, and what portion of the assets will be invested or held uninvested as cash. |
|
(ii) |
In the performance of their duties and obligations under this Agreement, the Subadvisers shall act in conformity with the copies of the Articles of Incorporation, By-Laws and Prospectus of the Fund provided to it by the Manager (the Fund Documents) and with the instructions and directions of the Manager and of the Board of Directors of the Fund, co-operate with the Manager's (or its designee's) personnel responsible for monitoring the Fund's compliance and will conform to and comply with the requirements of the 1940 Act, the Internal Revenue Code of 1986, as amended, and all other applicable federal and state laws and regulations. In connection therewith, the Subadvisers shall, among other things, prepare and file such reports as are, or may in the future be, required by the Commission. The Manager shall provide Subadvisers timely with copies of any updated Fund documents. |
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The Subadvisers shall determine the securities and futures contracts to be purchased or sold by such portion of the Fund's portfolio, as applicable, and will place orders with or through such persons, brokers, dealers or futures commission merchants (including but not limited to Prudential Securities Incorporated (or any broker or dealer affiliated with the Subadvisers) to carry out the policy with respect to brokerage as set forth in the Fund's Prospectus or as the Board of Directors may direct from time to time. In providing the Fund with investment supervision, it is recognized that the Subadvisers will give primary consideration to securing the most favorable price and efficient execution. Within the framework of this policy, the Subadvisers may consider the financial responsibility, research and investment information and other services provided by brokers, dealers or futures commission merchants who may effect or be a party to any such transaction or other transactions to which the Subadvisers’ other clients may be a party. The Manager (or Subadviser) to the Fund each shall have discretion to effect investment transactions for the Fund through broker-dealers (including, to the extent legally permissible, broker-dealers affiliated with the Subadviser(s)) qualified to obtain best execution of such transactions who provide brokerage and/or research services, as such services are defined in Section 28(e) of the Securities Exchange Act of 1934, as amended (the "1934 Act"), and to cause the Fund to pay any such broker-dealers an amount of commission for effecting a portfolio transaction in excess of the amount of commission another broker-dealer would have charged for effecting that transaction, if the brokerage or research services provided by such broker dealer, viewed in light of either that particular investment transaction or the overall responsibilities of the Manager (or the Subadvisers) with respect to the Fund and other accounts as to which they or it may exercise investment discretion (as such term is defined in Section 3(a)(35) of the 1934 Act), are reasonable in relation to the amount of commission.
On occasions when the Subadvisers deem the purchase or sale of a security or futures contract to be in the best interest of the Fund as well as other clients of the Subadvisers, the Subadvisers, to the extent permitted by applicable laws and regulations, may, but shall be under no obligation to, aggregate the securities or futures contracts to be sold or purchased in order to obtain the most favorable price or lower brokerage commissions and efficient execution. In such event, allocation of the securities or futures contracts so purchased or sold, as well as the expenses incurred in the transaction, will be made by the Subadvisers in the manner the Subadvisers consider to be the most equitable and consistent with their fiduciary obligations to the Fund and to such other clients.
(iii) |
Each Subadviser shall maintain all books and records with respect to the Fund's portfolio transactions effected by it as required by subparagraphs (b)(5), (6), (7), (9), (10) and (11) and paragraph (f) of Rule 3 la- 1 under the 1940 Act, and shall render to the Fund's Board of Directors such periodic and special reports as the Directors may reasonably request. The Subadvisers shall make reasonably available their employees and officers for consultation with any of the Directors or officers or employees of the Fund with respect to any matter discussed herein, including, without limitation, the valuation of the Fund's securities. |
|
(iv) |
Each Subadviser or an affiliate shall provide the Fund's Custodian on each business day with information relating to all transactions concerning the portion of the Fund's assets it manages, and shall provide the Manager with such information upon request of the Manager. |
|
(v) |
The investment management services provided by the Subadvisers hereunder are not to be deemed exclusive, and the Subadvisers shall be free to render similar services to others. Conversely, the Subadvisers and Manager understand and agree that if the Manager manages the Fund in a "manager-of-managers" style, the Manager will, among other things, (i) continually evaluate the performance of the Subadvisers through quantitative and qualitative analysis and consultations with the Subadvisers, (ii) periodically make recommendations to the Fund's Board as to whether the contract with one or more subadvisers should be renewed, modified, or terminated, and (iii) periodically report to the Fund's Board regarding the results of its evaluation and monitoring functions. The Subadvisers recognize that their services may be terminated or modified pursuant to this process. |
|
(vi) |
The Subadvisers acknowledge that the Manager and the Fund intend to rely on Rule 17a-10, Rule l0f- 3, Rule 12d3-l and Rule 17e-1 under the 1940 Act, and the Subadvisers hereby agree that they shall not consult with any other subadviser to the Fund with respect to transactions in securities for the Fund's portfolio or any other transactions of Fund assets. |
|
The Subadvisers further acknowledge that they shall not consult with any other subadviser of the Fund that is a principal underwriter or an affiliated person of a principal underwriter with respect to transactions in securities for the Fund's portfolio or any other transaction of Fund assets, and that their investment advisory responsibilities as set forth in this Agreement are limited to such discrete portion of the Fund's portfolio as determined by the Manager.
(b) |
The Subadvisers shall authorize and permit any of their directors, officers and employees who may be elected as Directors or officers of the Fund to serve in the capacities in which they are elected. Services to be furnished by the Subadvisers under this Agreement may be furnished through the medium of any of such directors, officers or employees. |
|
(c) |
The Subadvisers shall keep the Fund's books and records required to be maintained by the Subadvisers pursuant to paragraph l(a) hereof and shall timely furnish to the Manager all information relating to the Subadvisers’ services hereunder needed by the Manager to keep the other books and records of the Fund required by Rule 31a-1 under the 1940 Act or any successor regulation. The Subadvisers agree that all records which they maintain for the Fund are the property of the Fund, and the Subadvisers will surrender promptly to the Fund any of such records upon the Fund's request, provided, however, that the Subadvisers may retain a copy of such records. The Subadvisers further agree to preserve for the periods prescribed by Rule 31a-2 of the Commission under the 1940 Act or any successor regulation any such records as are required to be maintained by it pursuant to paragraph l(a) hereof. |
|
(d) |
In connection with their duties under this Agreement, the Subadvisers agree to maintain adequate compliance procedures to ensure their compliance with the 1940 Act, the Advisers Act, and other applicable state and federal regulations. |
|
(e) |
The Subadvisers shall furnish to the Manager copies of all records prepared in connection with (i) the performance of this Agreement and (ii) the maintenance of compliance procedures pursuant to paragraph 1(d) hereof as the Manager may reasonably request. |
|
(f) |
The Subadvisers shall be responsible for the voting of all shareholder proxies with respect to the investments and securities held in the Fund's portfolio, subject to such reporting and other requirements as shall be established by the Manager. |
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1. |
The Manager shall continue to have responsibility for all services to be provided to the Fund pursuant to the Management Agreement and, as more particularly discussed above, shall oversee and review the Subadvisers’ performance of their duties under this Agreement. The Manager shall provide (or cause the Fund's custodian to provide) timely information to the Subadvisers regarding such matters as the composition of assets in the portion of the Fund managed by the Subadvisers, cash requirements and cash available for investment in such portion of the Fund, and all other information as may be reasonably necessary for the Subadvisers to perform their duties hereunder (including any excerpts of minutes of meetings of the Board of Directors of the Fund that affect the duties of the Subadvisers). |
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2. |
For the services provided and the expenses assumed pursuant to this Agreement, the Manager shall pay the Subadvisers as full compensation therefor, a fee equal to the percentage of the Fund's average daily net assets of the portion of the Fund managed by the Subadvisers as described in the attached Schedule A. Liability for payment of compensation by the Manager to the Subadvisers under this Agreement is contingent upon the Manager's receipt of payment from the Fund for management services described under the Management Agreement between the Fund and the Manager. Expense caps or fee waivers for the Fund that may be agreed to by the Manager, but not agreed to by the Subadvisers, shall not cause a reduction in the amount of the payment to the Subadvisers by the Manager. |
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3. |
The Subadvisers shall not be liable for any error of judgment or for any loss suffered by the Fund or the Manager in connection with the matters to which this Agreement relates, except a loss resulting from willful misfeasance, bad faith or gross negligence on the Subadvisers’ part in the performance of their duties or from their reckless disregard of their obligations and duties under this Agreement, provided, however, that nothing in this Agreement shall be deemed to waive any rights the Manager or the Fund may have against the Subadvisers under federal or state securities laws. The Manager shall indemnify each Subadviser, its affiliated persons, and their officers, directors and employees for any liability and expenses, including attorneys' fees, which may be sustained as a result of the Manager's willful misfeasance, bad faith, gross negligence, reckless disregard of their duties hereunder or violation of applicable law, including, without limitation, the 1940 Act and federal and state securities laws. Each Subadviser shall indemnify the Manager, its affiliated persons, and their officers, directors and employees for any liability and expenses, including attorneys' fees, which may be sustained as a result of the Subadviser’s willful misfeasance, bad faith, gross negligence, or reckless disregard of its duties hereunder or violation of applicable law, including, without limitation, the 1940 Act and federal and state securities laws. |
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4. |
This Agreement shall continue in effect for a period of more than two years from the date hereof only so long as such continuance is specifically approved at least annually in conformity with the requirements of the 1940 Act; provided, however, that this Agreement may be terminated by the Fund at any time, without the payment of any penalty, by the Board of Directors of the Fund or by vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the Fund, or by the Manager or a Subadviser at any time, without the payment of any penalty, on not more than 60 days' nor less than 30 days' written notice to the other party. This Agreement shall terminate automatically in the event of their assignment (as defined in the 1940 Act) or upon the termination of the Management Agreement. The Subadvisers agree that they will promptly notify the Fund and the Manager of the occurrence or anticipated occurrence of any event that would result in the assignment (as defined in the 1940 Act) of this Agreement, including, but not limited to, a change or anticipated change in control (as defined in the 1940 Act) of the Subadvisers; provided that the Subadvisers need not provide notice of such an anticipated event before the anticipated event is a matter of public record. |
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Any notice or other communication required to be given pursuant to this Agreement shall be deemed duly given if delivered or mailed by registered mail, postage prepaid, (1) to the Manager and/or Fund at 655 Broad Street, 17th Floor, Newark, NJ 07102- 4077, Attention: Secretary; and (2) to the Subadvisers at 655 Broad Street, Newark, NJ 07102, Attention: Chief Legal Officer (for PGIM) and at Grand Buildings 1-3 Strand Trafalgar Square, London, WC2N 5HR, Attention: Chief Legal Officer (for PGIM Limited).
5. |
Nothing in this Agreement shall limit or restrict the right of any of the Subadvisers’ directors, officers or employees who may also be a Director, officer or employee of the Fund to engage in any other business or to devote his or her time and attention in part to the management or other aspects of any business, whether of a similar or a dissimilar nature, nor limit or restrict the Subadvisers’ right to engage in any other business or to render services of any kind to any other corporation, firm, individual or association. |
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6. |
During the term of this Agreement, the Manager agrees to furnish the Subadvisers at their principal office all prospectuses, proxy statements, reports to shareholders, sales literature or other material prepared for distribution to shareholders of the Fund or the public, which refer to the Subadvisers in any way, prior to use thereof and not to use material if the Subadvisers reasonably object in writing five business days (or such other time as may be mutually agreed) after receipt thereof. Sales literature may be furnished to the Subadvisers hereunder by first-class or overnight mail, facsimile transmission equipment or hand delivery. |
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7. |
This Agreement may be amended by mutual consent, but the consent of the Fund must be obtained in conformity with the requirements of the 1940 Act. |
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8. |
This Agreement shall be governed by the laws of the State of New York. |
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9. |
Any question of interpretation of any term or provision of this Agreement having a counterpart in or otherwise derived from a term or provision of the 1940 Act, shall be resolved by reference to such term or provision of the 1940 Act and to interpretations thereof, if any, by the United States courts or, in the absence of any controlling decision of any such court, by rules, regulations or orders of the Commission issued pursuant to the 1940 Act. In addition, where the effect of a requirement of the 1940 Act, reflected in any provision of this Agreement, is related by rules, regulation or order of the Commission, such provision shall be deemed to incorporate the effect of such rule, regulation or order. |
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IN WITNESS WHEREOF, the Parties hereto have caused this instrument to be executed by their officers designated below as of the day and year first above written.
PGIM INVESTMENTS LLC
By: /s/ Scott E. Benjamin
Name: Scott E. Benjamin
Title: Executive Vice President
PGIM, INC.
By: /s/ Steven B. Saperstein
Name: Steven B. Saperstein
Title: Vice President
PGIM LIMITED
By: /s/ Richard Greenwood
Name: Richard Greenwood
Title: Director
SCHEDULE A
PRUDENTIAL INVESTMENT PORTFOLIOS, INC. 15
As compensation for services provided by PGIM Fixed Income, a business unit of PGIM, Inc. (PGIM), and PGIM Limited (together, the Subadvisers), PGIM Investments will pay the Subadvisers, in aggregate, an advisory fee on the net asset value of the portion of the Fund’s portfolio that is managed by the Subadvisers that is equal, on an annualized basis, to the following:
Fund Name |
Advisory Fee |
PGIM High Yield Fund |
0.250% on average daily net assets up to and including $250 million; 0.238% on the next $500 million of average daily net assets; 0.225% on the next $750 million of average daily net assets; 0.213% on the next $500 million of average daily net assets; 0.200% on the next $500 million of average daily net assets; 0.188% on the next $500 million of average daily net assets; 0.175% on average daily net assets exceeding $3 billion. |
Dated as of September 12, 2019.
Consent of Independent Registered Public Accounting Firm
The Board of Directors
Prudential Investment Portfolios, Inc. 15:
We consent to the use of our reports dated October 18, 2019, with respect to the financial statements and financial highlights of PGIM High Yield Fund and PGIM Short Duration High Yield Income Fund, each a series of Prudential Investment Portfolios, Inc. 15, as of August 31, 2019, and for the respective years or periods presented therein, incorporated by reference herein. We also consent to the references to our firm under the headings “Financial Highlights” in the prospectuses and “Other Service Providers – Independent Registered Public Accounting Firm” and “Financial Statements” in the statement of additional information.
New York, New York
October 28, 2019
Prudential Investment Portfolios, Inc. 15
PGIM High Yield Fund
Notice of Rule 12b-1 Fee Waiver
Class R Shares
THIS NOTICE OF RULE 12B-1 FEE WAIVER is signed as of September 1, 2019, by PRUDENTIAL
INVESTMENT MANAGEMENT SERVICES LLC (PIMS), the principal underwriter of PGIM High Yield Fund (the Fund), a series of Prudential Investment Portfolios, Inc. 15, an open-end management investment company (the RIC).
WHEREAS, PIMS desires to waive a portion of its distribution and shareholder services fees payable on Class R shares of the Fund (Rule 12b-1 fees); and
WHEREAS, PIMS understands and intends that the RIC will rely on this Notice and agreement in preparing a registration statement on Form N-1A and in accruing the Fund’s expenses for purposes of calculating net asset value and for other purposes, and expressly permits the Fund to do so; and
WHEREAS, shareholders of the Fund will benefit from the ongoing contractual waiver by incurring lower Fund operating expenses than they would absent such waiver.
NOW, THEREFORE, PIMS hereby provides notice that it has agreed to limit the distribution and service (12b-1) fees incurred by Class R shares of the Fund to 0.50% of the average daily net assets of the Fund’s Class R shares. This contractual waiver shall be effective from the date hereof until December 31, 2020.
IN WITNESS WHEREOF, PIMS has signed this Notice of Rule 12b-1 Fee Waiver as of the day and year first above written.
PRUDENTIAL INVESTMENT
MANAGEMENT SERVICES LLC
By: /s/ Scott E. Benjamin
Name: Scott E. Benjamin
Title: Vice President
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