LR400
PRUDENTIAL JENNISON 20/20 FOCUS FUND
PRUDENTIAL INVESTMENT PORTFOLIOS 3
Prudential Jennison Market Neutral Fund
Prudential Jennison Select Growth Fund
Prudential Real Assets Fund
Prudential Strategic Value Fund
PRUDENTIAL INVESTMENT PORTFOLIOS 4
Prudential Muni High Income Fund
PRUDENTIAL INVESTMENT PORTFOLIOS 5
Prudential Jennison Conservative Growth Fund
Prudential Small-Cap Value Fund
PRUDENTIAL INVESTMENT PORTFOLIOS 9
Prudential Absolute Return Bond Fund
Prudential International Real Estate Fund
Prudential Large-Cap Core Equity Fund
PRUDENTIAL INVESTMENT PORTFOLIOS 12
Prudential Global Real Estate Fund
Prudential U.S. Real Estate Fund
PRUDENTIAL INVESTMENT PORTFOLIOS, INC. 14
Prudential Floating Rate Income Fund
Prudential Government Income Fund
TARGET ASSET ALLOCATION FUNDS
Target Conservative Allocation Fund
Target Growth Allocation Fund
Target Moderate Allocation Fund
PRUDENTIAL SECTOR FUNDS, INC.
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Utility Fund
PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC.
PRUDENTIAL SHORT-TERM CORPORATE BOND FUND, INC.
THE TARGET PORTFOLIO TRUST
Intermediate-Term Bond Portfolio
International Equity Portfolio
Large Capitalization Growth Portfolio
Large Capitalization Value Portfolio
Mortgage-Backed Securities Portfolio
Small Capitalization Growth Portfolio
Small Capitalization Value Portfolio
Total Return Bond Portfolio
Supplement dated December 7, 2011
to the current
Prospectus and Statement of Additional Information of each of the Funds named above
This supplement amends each Fund’s Prospectus and Statement of Additional Information and is in addition to any existing supplement to each Fund’s Prospectus and Statement of Additional Information.
The following is added to the section
in the Prospectus captioned “Fund Distributions and Tax Issues”
after the header “Tax Issues – Form
1099”:
Cost Basis Reporting. Effective January 1, 2012, mutual funds must report cost basis information to you and the IRS when you sell or exchange shares acquired on or after January 1, 2012 in your non-retirement accounts. The new cost basis regulations do not affect retirement accounts, money market funds, and shares acquired before January 1, 2012. The new cost basis regulations also require mutual funds to report whether a gain or loss is short-term (shares held one year or less) or long-term (shares held more than one year) for all shares acquired on or after January 1, 2012 that are subsequently sold or exchanged. The Fund’s Transfer Agent is not required to report cost basis information on shares acquired before January 1, 2012. However, in most cases the Transfer Agent will provide this information to you as a service.
The following is added to the section in the Statement of Additional Information captioned “Taxes, Dividends and Distributions” after the sub-section “Sale or Redemption of Shares”:
Cost Basis Reporting. Effective January 1, 2012, mutual funds must report cost basis information to you and the IRS when you sell or exchange shares acquired on or after January 1, 2012 in your non-retirement accounts. The new cost basis regulations do not affect retirement accounts, money market funds, and shares acquired before January 1, 2012. The new regulations also require mutual funds to report whether a gain or loss is short-term (shares held one year or less) or long-term (shares held more than one year) for all shares acquired on or after January 1, 2012 that are subsequently sold or exchanged. To calculate the gain or loss on shares sold, you need to know the cost basis of the shares. Cost basis is the original value of an asset for tax purposes (usually the gross purchase price), adjusted for stock splits, reinvested dividends, and return of capital distributions. This value is used to determine the capital gain (or loss), which is the difference between the cost basis of the shares and the gross proceeds when the shares are sold. The Fund’s Transfer Agent supports several different cost basis methods from which you may select a cost basis method you believe best suited to your needs. If you decide to elect the Transfer Agent’s default method, which is average cost, no action is required on your part. For shares acquired on or after January 1, 2012, if you change your cost basis method, the new method will apply to all shares in the account if you request the change prior to the first redemption. If, however, you request the change after the first redemption, the new method will apply to shares acquired on or after the date of the change. Keep in mind that the Fund’s Transfer Agent is not required to report cost basis information to you or the IRS on shares acquired before January 1, 2012. However, the Transfer Agent will provide this information to you, as a service, if its cost basis records are complete for such shares. This information will be separately identified on the Form 1099-B (Proceeds from Broker and Barter Exchange Transactions) sent to you by the Transfer Agent and not transmitted to the IRS.
LR400