N-Q 1 d274837dnq.htm PRUDENTIAL INVESTMENT PORTFOLIOS, INC. 14 Prudential Investment Portfolios, Inc. 14

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-Q

 

 

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number:   811-03712
Exact name of registrant as specified in charter:   Prudential Investment Portfolios, Inc. 14
Address of principal executive offices:   Gateway Center 3,
  100 Mulberry Street,
  Newark, New Jersey 07102
Name and address of agent for service:   Deborah A. Docs
  Gateway Center 3,
  100 Mulberry Street,
  Newark, New Jersey 07102
Registrant’s telephone number, including area code:   800-225-1852
Date of fiscal year end:   2/29/2012
Date of reporting period:   11/30/2011

 

 

 

Item 1. Schedule of Investments

Prudential Floating Rate Income Fund

Schedule of Investments

as of November 30, 2011 (Unaudited)

 

Description

   

Moody’s
Ratings*†

   

Interest
Rate

   

Maturity Date

   

Principal
Amount

(000)#

   

Value

LONG-TERM INVESTMENTS — 98.6%

BANK LOANS (a) — 88.9%

Airlines — 1.9%

Delta Air Lines, Inc.

    Ba2    4.250%    03/07/16    $          498    $   473,869

Delta Air Lines, Inc.

    Ba2    5.500%    04/20/17    100    94,887
              

 

               568,756
              

 

Automotive — 2.4%

Autoparts Holdings Ltd.

    B1    6.500%    07/29/17    250    250,312

Chrysler Group LLC

    Ba2    6.000%    05/24/17    499    457,354
              

 

               707,666
              

 

Building Materials & Construction — 1.6%

Atrium Cos., Inc.

    Caa1    7.000%    04/30/16    272    237,526

Summit Materials Cos. I LLC

    B2    6.500%    12/31/15    248    243,783
              

 

               481,309
              

 

Cable — 1.4%

Knology, Inc.

    B1    4.000%    08/18/17    149    144,957

UPC Financing Partnership

    Ba3    4.750%    12/31/17    275    271,219
              

 

               416,176
              

 

Capital Goods — 4.8%

Husky Injection Molding Systems

    Ba3    6.500%    06/29/18    249    247,712

Norit Holding BV

    B1    6.750%    07/10/17    125    123,438

Pro Mach, Inc.

    B2    6.250%    07/06/17    249    244,387

Sensus USA, Inc.

    Ba3    4.750%    05/09/17    299    292,157

SRAM LLC

    Ba2    4.765%    06/07/18    244    241,773

Unifrax I LLC

    B2    7.000%    11/28/18    300    298,500
              

 

               1,447,967
              

 

Chemicals — 5.2%

Houghton International, Inc.

    B1    6.750%    01/29/16    497    495,002

Nexeo Solutions LLC

    B1    5.000%    09/08/17    299    286,560

Nusil Tech

    B1    5.250%    04/07/17    233    227,225

Polyone Corp.

    Ba1    5.000%    11/30/17    100    99,917

Styron Corp.

    B1    6.000%    08/02/17    249    213,211

Univar, Inc.

    B2    5.000%    06/30/17    248    239,194
              

 

               1,561,109
              

 

Consumer — 5.1%

Acosta, Inc.

    Ba3    4.750%    03/01/18    299    289,358

Realogy Corp.

    B1    4.641%    10/10/16    18    15,888

Realogy Corp.

    B1    4.641%    10/10/16    229    201,522

Revlon Consumer Products Corp.

    Ba3    4.750%    11/19/17    224    221,772

Spectrum Brands

    B1    5.000%    06/17/16    182    182,093

Travelport, Inc.

    B1    4.869%    08/21/15    176    145,762

Visant Corp.

    Ba3    5.250%    12/22/16    497    463,913
              

 

               1,520,308
              

 

Electric — 1.9%

Calpine Corp.

    B1    4.500%    04/01/18    249    240,394

Calpine Corp.

    B1    4.500%    04/01/18    249    241,644

Texas Competitive Electric Holdings Co. LLC

    B2    4.891%    10/10/17    144    93,916
              

 

               575,954
              

 

Energy — Other — 1.0%

Frac Tech Services LLC

    B2    6.250%    05/06/16    294    289,164
              

 

Foods — 9.5%

B&G Foods, Inc.

    Ba2    4.500%    11/30/18    350    349,563

Del Monte Foods Co.

    Ba3    4.500%    03/08/18    499    472,566

Dole Food Co., Inc.

    Ba2    5.000%    07/08/18    70    69,476

Dole Food Co., Inc.

    Ba2    5.000%    07/08/18    130    129,027

Dunkin Brands, Inc.

    B2    4.000%    11/23/17    496    486,703

JBS USA LLC

    Ba3    4.250%    05/25/18    274    268,826

Michael Foods, Inc.

    B1    4.250%    02/25/18    150    147,380

OSI Restaurant Partners, Inc.

    B3    2.499%    06/14/13    18    16,815

OSI Restaurant Partners, Inc.

    B3    2.581%    06/14/14    182    172,384

Pierre Foods, Inc.

    B1    7.000%    09/30/16    248    246,259

SUPERVALU

    BB(b)    4.500%    04/30/18    248    239,938

Wm. Bolthouse Farms, Inc.

    B1    5.500%    02/11/16    238    235,337
              

 

               2,834,274
              

 

 

Gaming — 3.1%

Caesars Entertainment Operating Co., Inc.

    B3    3.417%    01/28/15    396    335,876

Global Cash Access, Inc.

    B1    7.000%    03/01/16    99    99,071

Isle of Capri Casinos, Inc.

    Ba3    4.750%    11/01/13    248    246,781

Las Vegas Sands LLC

    Ba2    2.840%    11/23/16    42    39,602

Las Vegas Sands LLC

    Ba2    2.840%    11/23/16    207    197,684
              

 

               919,014
              

 

Healthcare & Pharmaceutical — 12.2%

Alliance HealthCare Services, Inc.

    Ba3    7.250%    06/01/16    341    303,795

Community Health Systems, Inc.

    Ba3    3.955%    01/25/17    496    478,341

Drumm Investors LLC

    B1    5.000%    05/04/18    349    296,738

Emdeon, Inc.

    Ba3    6.750%    11/02/18    275    276,031

Emergency Medical Services

    B1    5.250%    05/25/18    348    336,738

Grifols SA

    Ba3    5.500%    06/01/16    100    99,475

Grifols SA

    Ba3    6.000%    06/01/17    499    497,503

HCR Healthcare LLC

    Ba3    5.000%    04/06/18    498    442,775

Health Management Associates, Inc.

    Ba3    4.500%    11/16/18    500    496,875

IASIS Healthcare Corp.

    Ba3    5.000%    05/03/18    249    239,940

Rural/Metro Corp.

    Ba3    5.750%    06/30/18    175    170,417
              

 

               3,638,628
              

 

Insurance — 0.8%

Asurion LLC

    Ba3    5.500%    05/24/18    239    229,538
              

 

Media & Entertainment — 5.8%

Crown Media Holdings, Inc.

    Ba2    5.750%    07/14/18    100    97,755

Cumulus Media Holdings, Inc.

    Ba2    5.750%    09/16/18    100    97,250

Getty Images, Inc.

    Ba3    5.250%    11/07/16    200    200,125

Hubbard Radio LLC

    Ba3    5.250%    04/28/17    200    196,009

Mood Media Corp.

    Ba3    7.000%    05/06/18    75    68,921

Nielsen Finance LLC

    Ba2    3.498%    05/02/16    496    483,205

Tribune Co.

    NR    5.323%    06/04/14    250    153,203

Univision Communications, Inc.

    B2    4.510%    03/31/17    500    447,344
              

 

               1,743,812
              

 

Metals — 0.6%

SunCoke Energy, Inc.

    Ba1    4.006%    07/26/18    175    173,690
              

 

Non-Captive Finance — 3.9%

International Lease Finance Corp.

    Ba2    6.750%    03/17/15    250    250,625

MIP Delaware LLC

    Ba2    5.500%    07/12/18    136    134,492

Springleaf Financial Funding Co.

    B2    5.500%    05/10/17    600    522,500

VFH Parent LLC

    Ba1    7.500%    07/08/16    275    269,729
              

 

               1,177,346
              

 

Packaging — 4.9%

Bway Holding Co.

    Ba3    4.500%    02/23/18    39    38,027

Bway Holding Co.

    Ba3    4.500%    02/23/18    423    412,523

Exopack LLC

    B1    6.500%    05/31/17    249    238,153

Pelican Products, Inc.(c)

    B1    5.000%    03/07/17    298    294,773

Reynolds Group Holdings, Inc.

    Ba3    6.500%    02/09/18    498    485,063
              

 

               1,468,539
              

 

Real Estate — 1.5%

CB Richard Ellis Services, Inc.

    Ba1    3.748%    09/04/19    448    435,311
              

 

Retailers — 3.2%

Academy Sports & Outdoors

    B2    6.000%    08/03/18    200    196,500

Leslie’s Poolmart, Inc

    Ba3    4.500%    11/30/17    299    292,513

Nieman Marcus Group, Inc.

    B2    4.750%    05/16/18    500    480,625
              

 

               969,638
              

 

Technology — 12.2%

Avaya, Inc.

    B1    4.949%    10/26/17    298    262,461

CDW LLC

    B2    4.250%    07/15/17    500    469,375

Fidelity National Information Services, Inc.

    Ba1    5.250%    07/18/16    124    124,370

First Data Corp.

    B1    4.358%    03/26/18    569    473,655

Freescale Semiconductor, Inc.

    Ba3    4.496%    12/01/16    497    469,430

Interactive Data Corp.

    Ba3    4.500%    02/11/18    299    292,996

Microsemi Corp.

    Ba2    5.750%    02/03/18    500    500,000

NXP BV

    B2    4.500%    03/03/17    550    517,000

Sensata Technologies, Inc.

    B1    4.000%    05/12/18    349    344,848

U.S. Security Associates, Inc.

    Ba3    1.500%    07/28/17    33    31,907

U.S. Security Associates, Inc.

    Ba3    6.000%    07/28/17    167    163,843
              

 

               3,649,885
              

 

 

Telecommunications — 4.4%

               

Global TelLink Corp.

    B1    5.000%    11/10/16    150    148,127

Intelsat Jackson Holdings SA

    B1    5.250%    04/02/18    498    492,027

MetroPCS Wireless, Inc.

    Ba1    4.100%    03/19/18    249    241,597

Mobilitie Investments II LLC

    B2    5.500%    06/16/17    100    98,254

Neustar, Inc.

    Ba2    5.000%    11/08/18    150    149,748

Syniverse Holdings, Inc.

    B1    5.250%    12/21/17    199    198,438
              

 

               1,328,191
              

 

Transportation — 1.5%

               

Hertz Corp.

    Ba1    3.750%    03/12/18    500    462,500
              

 

TOTAL BANK LOANS
(cost $27,503,316)

                26,598,775
              

 

CORPORATE BONDS — 9.7%

            

Cable — 0.6%

               

Videotron Ltee (Canada), Gtd. Notes

    Ba1    9.125%    04/15/18    175    192,062
              

 

Capital Goods — 0.5%

               

Case New Holland, Inc., Gtd. Notes

    Ba2    7.750%    09/01/13    150    157,500
              

 

Energy — Other — 0.7%

            

Forest Oil Corp., Gtd. Notes

    B1    8.500%    02/15/14    200    215,000
              

 

Foods — 1.1%

               

ARAMARK Corp., Gtd. Notes

    B3    8.500%    02/01/15    150    153,750

Smithfield Foods, Inc., Sr. Sec’d. Notes

    Ba2    10.000%    07/15/14    150    171,750
              

 

               325,500
              

 

Gaming — 1.1%

               

MGM Resorts International,
Sr. Sec’d. Notes

    Ba2    11.125%    11/15/17    200    223,750

Yonkers Racing Corp., Sec’d. Notes, 144A (original cost $110,875; purchased 05/18/11)(c)(d)

    B1    11.375%    07/15/16    100    101,250
              

 

               325,000
              

 

Media & Entertainment — 1.8%

            

Lamar Media Corp., Gtd. Notes

    Ba3    9.750%    04/01/14    200    218,500

LIN Television Corp., Gtd. Notes

    Caa1    6.500%    05/15/13    99    97,639

Nielsen Finance LLC / Nielsen Finance Co., Gtd. Notes

    B2    11.625%    02/01/14    200    228,000
              

 

               544,139
              

 

Non-Captive Finance — 0.9%

            

American General Finance Corp.,
Sr. Unsec’d. Notes, Ser. H, MTN

    B3    5.375%    10/01/12    125    115,000

CIT Group, Inc., Sec’d. Notes, 144A(c)

    B2    7.000%    05/02/17    150    147,750
              

 

               262,750
              

 

Paper — 1.9%

               

Graphic Packaging International, Inc.,
Gtd. Notes

    B2    9.500%    06/15/17    250    272,500

Rock-Tenn Co., Gtd. Notes

    Ba2    9.250%    03/15/16    175    185,500

Verso Paper Holdings LLC / Verso Paper, Inc., Sr. Sec’d. Notes

    Ba2    11.500%    07/01/14    100    102,000
              

 

               560,000
              

 

Technology — 1.1%

               

Seagate Technology International (Cayman Islands), Sec’d. Notes, 144A(c)

    Baa3    10.000%    05/01/14    150    170,250

SunGard Data Systems, Inc., Gtd. Notes

    Caa1    10.625%    05/15/15    150    158,250
              

 

               328,500
              

 

TOTAL CORPORATE BONDS
(cost $2,976,398)

    2,910,451
              

 

TOTAL LONG-TERM INVESTMENTS
(cost $30,479,714)

    29,509,226
              

 

                   

Shares

     

SHORT-TERM INVESTMENT — 4.2%

AFFILIATED MONEY MARKET MUTUAL FUND

Prudential Investment Portfolios 2 — Prudential Core Taxable Money Market Fund(e)
(cost $1,247,737)

    1,247,737    1,247,737
              

 

TOTAL INVESTMENTS — 102.8%
(cost $31,727,451)(f)

    30,756,963

LIABILITIES IN EXCESS OF OTHER ASSETS — (2.8)%

    (824,043)
              

 

NET ASSETS — 100.0%

    $    29,932,920
              

 

 

The following abbreviations are used in portfolio descriptions:

 

144A    Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.
MTN    Medium Term Note
NR    Not Rated

 

* The Fund’s current Statement of Additional Information contains a description of Moody’s & Standard & Poor’s ratings.
† The ratings reflected are as of November 30, 2011. Ratings of certain bonds may have changed subsequent to that date.
# Principal amount is shown in U.S. dollars unless otherwise stated.
(a) Variable rate instrument. The interest rate shown reflects the rate in effect at November 30, 2011.
(b) Standard & Poor’s Rating.
(c) Indicates a security that has been deemed illiquid.
(d) Indicates a restricted security; the aggregate original cost of such securities is $110,875. The aggregate value of $101,250 is approximately 0.3% of net assets.
(e) Prudential Investments LLC, the manager of the Portfolio, also serves as manager of the Prudential Investment Portfolios 2 — Prudential Core Taxable Money Market Fund.
(f) The United States federal income tax basis of the Fund’s investments and the net unrealized depreciation as of November 30, 2011 were as follows:

 

Tax Basis  of
Investments		     Appreciation     Depreciation     Net Unrealized
Depreciation		  
$ 31,766,920      $ 75,735      $ (1,085,692 )    $ (1,009,957 ) 

The difference between book basis and tax basis was primarily attributable to the difference in the treatment of accreting market discount and premium amortization for book and tax purposes.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

Level 1 - quoted prices generally for securities actively traded on regulated securities exchange and for open-end mutual funds which trade at daily net asset value.

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, foreign currency exchange rates and amortized cost) generally for debt securities, swaps, forward foreign currency contracts and for foreign stocks priced using vendor modeling tools.

Level 3 - significant unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.

The following is a summary of the inputs used as of November 30, 2011 in valuing such portfolio securities:

 

     Level 1      Level 2      Level 3  

Investments in Securities

         

Bank Loans

    $ —         $ 21,084,971       $ 5,513,804   

Corporate Bonds

      —           2,910,451         —     

Affiliated Money Market Mutual Fund

      1,247,737         —           —     
  

 

 

     

 

 

     

 

 

  

Total

    $ 1,247,737       $ 23,995,422       $ 5,513,804   
  

 

 

     

 

 

     

 

 

  

The following is a reconciliation of assets in which significant unobservable inputs (Level 3) were used in determining fair value:

 

     Bank Loans  

Balance as of 03/30/11 (commencement of Fund)

    $ —     

Realized gain (loss)

      —     

Change in unrealized appreciation (depreciation)*

      (102,955 ) 

Purchases

      5,616,759   

Sales

      —     

Accrued discount/premium

      —     

Transfers into Level 3

      —     

Transfers out of Level 3

      —     
  

 

 

  

Balance as of 11/30/11

    $ 5,513,804   
  

 

 

  

 

* Of which, $(102,955) was included in Net Assets relating to securities held at the reporting period end.

 

Prudential Government Income Fund

Schedule of Investments

as of November 30, 2011 (Unaudited)

 

Principal  Amount
(000)#		     

Description

   Value  

 

LONG-TERM INVESTMENTS — 93.5%

  

 

Collateralized Mortgage Obligations — 3.4%

  

  $                4,672      

Federal Home Loan Mortgage Corp.,
Ser. 2002-2496, Class PM,
5.500%, 09/15/17

   $       5,015,010   
  1,816      

Ser. 2002-2501, Class MC,

5.500%, 09/15/17

     1,941,436   
  6,650      

Ser. 2002-2513, Class HC,

5.000%, 10/15/17

     7,171,153   
  3,580      

Ser. 2002-2518, Class PV,

5.500%, 06/15/19

     3,626,581   
  2,513      

Federal National Mortgage Association,
Ser. 2002-18, Class PC,
5.500%, 04/25/17

     2,603,067   
  1,669      

Ser. 2002-57, Class ND,

5.500%, 09/25/17

     1,782,626   
  279      

MLCC Mortgage Investors, Inc.,
Ser. 2003-E, Class A1,
0.877%, 10/25/28 FRN

     242,304   
  932      

Structured Adjustable Rate Mortgage Loan Trust,
Ser. 2004-1, Class 4A3,
2.481%, 02/25/34 FRN

     830,661   
    

 

 

  
       23,212,838   
  Commercial Mortgage-Backed Securities — 10.5%   
  1,004      

Banc of America Commercial Mortgage, Inc.,
Ser. 2007-1, Class A2,
5.381%, 01/15/49

     1,003,954   
  4,000      

Bear Stearns Commercial Mortgage Securities,
Ser. 2005-PW10, Class A4,
5.405%, 12/11/40 FRN

     4,377,868   
  3,000      

Citigroup/Deutsche Bank Commercial Mortgage Trust,
Ser. 2007-CD4, Class A3,
5.293%, 12/11/49

     3,181,674   
  3,000      

Commercial Mortgage Pass-Through Certificates,
Ser. 2006-C7, Class A4,
5.943%, 06/10/46 FRN

     3,289,245   
  3,300      

Credit Suisse First Boston Mortgage Securities Corp.,
Ser. 2005-C2, Class A4,
4.832%, 04/15/37

     3,460,027   
  3,100      

CWCapital Cobalt Ltd.,
Ser. 2007-C3, Class A3,
6.011%, 05/15/46 FRN

     3,237,355   

 

            
  4,400     

Federal Home Loan Mortgage Corp.,
Ser. 2010-K005, Class A2,
4.317%, 11/25/19

   

4,852,728

  6,400     

Ser. 2010-K007, Class A2,

4.224%, 03/25/20

   

7,050,642

  5,100     

Ser. 2010-K009, Class A2,

3.808%, 08/25/20

   

5,453,644

  6,600     

Ser. 2011-K013, Class A2,

3.974%, 01/25/21 FRN

   

7,138,046

  1,727     

Greenwich Capital Commercial Funding Corp.,
Ser. 2007-GG9, Class A2,
5.381%, 03/10/39

   

1,735,154

  3,247     

GS Mortgage Securities Corp. II,
Ser. 2007-GG10, Class A2,
5.778%, 08/10/45 FRN

   

3,304,301

  1,600     

JPMorgan Chase Commercial Mortgage Securities Corp.,
Ser. 2007-LD11, Class A3,
6.005%, 06/15/49 FRN

   

1,678,197

  3,415     

Merrill Lynch Mortgage Trust,
Ser. 2006-C1, Class A4,
5.854%, 05/12/39 FRN

   

3,786,006

  4,158     

Merrill Lynch/Countrywide Commercial Mortgage Trust,
Ser. 2007-9, Class A2,
5.590%, 09/12/49

   

4,224,306

  3,000     

Morgan Stanley Capital I,
Ser. 2006-IQ12, Class A4,
5.332%, 12/15/43

   

3,311,886

  3,000     

NCUA Guaranteed Notes,
Ser. 2010-C1, Class A2,
2.900%, 10/29/20

   

3,141,414

  4,000     

Wachovia Bank Commercial Mortgage Trust,
Ser. 2006-C25, Class A4,
5.923%, 05/15/43 FRN

   

4,404,224

  3,000     

Ser. 2006-C27, Class A3,

5.765%, 07/15/45 FRN

   

3,282,483

    

 

    

    71,913,154

 

Corporate Bonds — 1.0%

  2,960     

Depfa ACS Bank (Ireland), Covered Notes, 144A,
5.125%, 03/16/37

   

2,070,727

  1,235     

Export Development Canada (Canada),
1.250%, 10/26/16

   

1,237,688

  1,080     

Kreditanstalt Fuer Wiederaufbau (Germany), Gtd. Notes,
2.375%, 08/25/21

   

1,052,856

  850     

National Bank of Canada (Canada), Covered Notes, 144A,
2.200%, 10/19/16

   

855,462

  2,000 (a)   

Toronto-Dominion Bank (The) (Canada), Covered Notes, 144A,
1.625%, 09/14/16

   

1,961,144

    

 

     7,177,877
    

 

 

             

 

Mortgage-Backed Securities — 36.2%

  

  1,938     

Federal Home Loan Mortgage Corp.,
2.479%, 05/01/34 FRN

     2,049,706   
  10,428     

4.000%, 06/01/26 - 12/01/40

     10,893,705   
  10,500     

4.500%, TBA 30 YR

     11,041,406   
  16,495     

5.000%, 06/01/33 - 05/01/34

     17,670,849   
  3,276     

5.500%, 05/01/37 - 01/01/38

     3,542,969   
  1,146     

6.000%, 08/01/32 - 09/01/34

     1,272,825   
  696     

6.500%, 01/01/12 - 09/01/32

     786,805   
  170     

7.000%, 09/01/32

     195,697   
  118     

8.000%, 03/01/22 - 08/01/22

     137,658   
  80     

8.500%, 01/01/17 - 09/01/19

     89,705   
  60     

9.000%, 01/01/20

     62,299   
  50     

11.500%, 10/01/19

     52,186   
  5,954     

Federal National Mortgage Association,
2.231%, 07/01/33 FRN

     6,249,944   
  717     

2.287%, 04/01/34 FRN

     752,271   
  1,716     

2.356%, 06/01/34 FRN

     1,807,897   
  1,374     

2.394%, 04/01/34 FRN

     1,444,994   
  1,000 (b)   

3.000%, TBA 15 YR

     1,024,219   
  21,000     

3.000%, TBA 15 YR

     21,449,532   
  1,906     

3.500%, 06/01/39

     1,946,406   
  21,000     

4.000%, TBA 30 YR

     21,836,718   
  541     

4.500%, 01/01/20

     578,831   
  500 (b)   

4.500%, TBA 30 YR

     527,891   
  13,266     

5.000%, 07/01/18 - 05/01/36

     14,304,188   
  33,255     

5.500%, 08/01/15 - 11/01/36

     36,502,591   
  13,357     

6.000%, 11/01/14 - 05/01/36

     14,754,914   
  9,721     

6.500%, 02/01/14 - 10/01/37

     10,929,583   
  3,451     

7.000%, 01/01/12 - 02/01/36

     3,905,552   
  21     

7.500%, 06/01/12 - 08/01/13

     20,813   
  3     

8.500%, 06/01/17 - 03/01/25

     2,803   
  77     

9.000%, 04/01/25

     86,337   
  25     

9.500%, 01/01/25 - 02/01/25

     30,520   
  1,000 (b)   

Government National Mortgage Association,
3.500%, TBA 30 YR

     1,030,469   
          18,000 (b)   

4.000%, TBA 30 YR

     19,136,249   
  949     

4.500%, 01/20/41

     1,032,027   
  9,000 (b)   

4.500%, TBA 30 YR

     9,736,875   
  12,500     

4.500%, TBA 30 YR

     13,552,734   
  6,068     

5.000%, 07/15/33 - 04/15/34

     6,720,697   
  2,000     

5.000%, TBA 30 YR

     2,200,625   
  3,341     

5.500%, 02/15/34 - 02/15/36

     3,776,852   
  3,999     

7.000%, 03/15/22 - 02/15/29

     4,593,407   

 

  493     

7.500%, 01/15/23 - 07/15/24

    573,287
  431     

8.500%, 04/15/25

    513,678
  243     

9.500%, 09/15/16 - 08/20/21

    273,952
    

 

     249,092,666
    

 

 

Municipal Bond — 0.2%

  1,170     

Utah St. Build America Bonds,
Ser. D, GO,
4.554%, 07/01/24

    1,326,546
    

 

 

Small Business Administration Agencies — 1.1%

  545     

Small Business Administration Participation Certificates,
Ser. 1995-20B, Class 1,

8.150%, 02/01/15

    569,925
  1,568     

Ser. 1995-20L, Class 1,

6.450%, 12/01/15

    1,676,935
  1,832     

Ser. 1996-20H, Class 1,

7.250%, 08/01/16

    1,979,263
  1,203     

Ser. 1996-20K, Class 1,

6.950%, 11/01/16

    1,308,884
  400     

Ser. 1997-20A, Class 1,

7.150%, 01/01/17

    438,399
  1,686     

Ser. 1998-20I, Class 1,

6.000%, 09/01/18

    1,832,551
    

 

     7,805,957
    

 

 

U.S. Government Agency Securities — 2.1%

  1,310 (a)   

Federal Home Loan Mortgage Corp.,
5.125%, 11/17/17

    1,567,506
  1,345     

Federal National Mortgage Association,
1.375%, 11/15/16

    1,343,628
  10,000 (c)   

Financing Corp. FICO STRIPS,
Ser. 1P,
1.920%, 05/11/18

    8,847,480
  1,240 (a)   

Tennessee Valley Authority,
5.250%, 09/15/39

    1,543,825
  1,080     

5.500%, 06/15/38

    1,386,859
    

 

     14,689,298
    

 

 

U.S. Government Treasury Obligations — 39.0%

  1,275 (a)   

United States Treasury Bonds,
3.750%, 08/15/41

    1,450,710
  2,805 (a)   

3.875%, 08/15/40

   

3,254,675

  2,650     

4.375%, 05/15/40

   

3,336,514

  2,240     

4.375%, 05/15/41

   

2,826,600

  4,535 (a)   

4.750%, 02/15/41

   

6,057,060

  15,300     

8.875%, 08/15/17

   

21,877,807

  1,310 (a)   

9.125%, 05/15/18

   

1,946,579

  16,470     

United States Treasury Notes,
0.125%, 08/31/13

    16,435,907
  8,430 (a)   

0.375%, 11/15/14

   

8,426,704

  29,685     

0.875%, 11/30/16

   

29,571,366

  7,000 (a)   

1.000%, 09/30/16

      7,031,171   
  7,640 (a)   

2.000%, 11/15/21

      7,592,250   
  36,710     

2.125%, 05/31/15

      38,731,913   
  4,410     

3.000%, 09/30/16

      4,846,863   
  4,790     

3.125%, 08/31/13

      5,030,061   
  20,000     

3.125%, 10/31/16

      22,100,000   
  10,835     

3.250%, 03/31/17

      12,067,481   
  5,000     

3.500%, 02/15/18

      5,657,420   
 

United States Treasury STRIPS, I/O,

   
  12,400 (d)   

0.600%, 05/15/15

      12,146,978   
  21,230 (d)   

2.690%, 05/15/24

      15,227,239   
  16,500 (d)(e)   

2.720%, 08/15/24

      11,701,552   
  3,080 (d)   

2.740%, 11/15/24

      2,161,131   
  12,000 (a)(d)   

3.060%, 02/15/24

      8,698,596   
  9,120 (d)(e)   

3.340%, 05/15/25

      6,262,230   
  9,570 (a)(d)   

3.700%, 05/15/27

      6,055,695   
  6,300 (d)   

3.770%, 11/15/27

      3,913,125   
  6,300 (a)(d)   

4.000%, 08/15/29

      3,666,046   
    

 

 

  
       268,073,673   
    

 

 

  
 

TOTAL LONG-TERM INVESTMENTS
(cost $613,848,869)

      643,292,009   
    

 

 

  

 

SHORT-TERM INVESTMENTS — 24.4%

   
Shares             

 

Affiliated Mutual Funds

   
  12,455,581     

Prudential Investment Portfolios 2 — Prudential Core Short-Term Bond Fund
(cost $122,515,923)(f)

      110,356,443   
  57,008,724     

Prudential Investment Portfolios 2 — Prudential Core Taxable Money Market Fund
(cost $57,008,724; includes $36,997,130 of cash collateral received for securities on loan)(f)(g)

      57,008,724   
    

 

 

  
 

TOTAL SHORT-TERM INVESTMENTS
(cost $179,524,647)

      167,365,167   
    

 

 

  
 

TOTAL INVESTMENTS — 117.9%
(cost $793,373,516)(h)

      810,657,176   
 

LIABILITIES IN EXCESS OF OTHER ASSETS(i) — (17.9%)

      (122,855,794)   
    

 

 

  
 

NET ASSETS — 100.0%

      $  687,801,382   
    

 

 

  

 

The following abbreviations are used in the portfolio descriptions:

 

144A    Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.
FICO    Financing Corporation
FRN    Floating Rate Note
GO    General Obligation

I/O    Interest Only
STRIPS    Separate Trading of Registered Interest and Principal of Securities
TBA    To Be Announced

 

# Principal amount shown in U.S. dollars unless otherwise stated.
(a) All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $35,823,066; cash collateral of $36,997,130 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments.
(b) Principal amount of $29,500,000 represents a to-be announced (“TBA”) mortgage dollar roll.
(c) Represents a zero coupon bond. Rate shown reflects the effective yield at November 30, 2011.
(d) The rate shown is the effective yield at November 30, 2011.
(e) Represents security, or a portion thereof, segregated as collateral for futures contracts.
(f) Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2-Prudential Core Taxable Money Market Fund and the Prudential Investment Portfolios 2-Prudential Core Short-Term Bond Fund.
(g) Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.
(h) The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of November 30, 2011 were as follows:

 

Tax Basis  of
Investments		   Appreciation   Depreciation   Net  Unrealized
Appreciation
$795,021,754   $29,926,241   $(14,290,819)   $15,635,422

The difference between book basis and tax basis was primarily attributable to deferred losses on wash sales as of the most recent fiscal year end and difference in the treatment of accreting market discount and premium amortization for book and tax purposes as of the current reporting period.

 

(i) Includes net unrealized appreciation (depreciation) on the following derivative contracts held at the reporting period end:

Open futures contracts outstanding at November 30, 2011:

 

Number of
Contracts

   

Type

   

Expiration

Date

    Value at
November  30, 2011		      Value at
Trade Date		      Unrealized
Appreciation/
(Depreciation)(a)		  
  

Long Positions:

            
238   

2 Year U.S. Treasury Notes

    Dec. 2011    $ 52,452,969       $ 52,454,011       $ (1,042 ) 
11   

2 Year U.S. Treasury Notes

    Mar. 2012      2,425,500         2,424,732         768   
89   

5 Year U.S. Treasury Notes

    Dec. 2011      10,947,695         10,816,391         131,304   
396   

5 Year U.S. Treasury Notes

    Mar. 2012      48,565,687         48,570,762         (5,075 ) 
90   

U.S. Ultra Bond

    Dec. 2011      14,118,751         14,276,548         (157,797 ) 
5   

U.S. Ultra Bond

    Mar. 2012      777,188         780,944         (3,756 ) 
  

Short Positions:

            
561   

10 Year U.S. Treasury Notes

    Mar. 2012      72,561,844         72,960,966         399,122   
231   

U.S. Long Bonds

    Mar. 2012      32,657,625         33,060,862         403,237   
              

 

 

  
               $ 766,761   
              

 

 

  

 

(a) The amount represents fair value of derivative instruments subject to interest rate contracts risk exposure as of November 30, 2011.

Interest rate swap agreements outstanding at November 30, 2011:

 

Notional
Amount
(000)#		      Termination
Date		      Fixed
Rate		    

Floating

Rate

    Fair
Value		     Upfront
Premiums
Paid/(Received)		      Unrealized
Appreciation/
(Depreciation)(3)		    

Counterparty

 

Over-the-counter swap agreements:

  $25,570         12/02/14         0.859 %    3 month LIBOR(1)    $ 52,556      $ —         $ 52,556      Citibank NA
  2,200         09/14/16         1.206      3 month LIBOR(1)      (243 )      —           (243 )    Deutsche Bank AG
  7,480         07/20/21         3.035      3 month LIBOR(2)      671,947        —           671,947      Citibank NA
  7,530         11/23/21         2.148      3 month LIBOR(1)      22,295        —           22,295      Citibank NA
  4,460         08/15/27         2.610      3 month LIBOR(1)      (642 )      —           (642 )    Citibank NA
  5,775         08/15/27         2.612      3 month LIBOR(2)      (1,984 )      —           (1,984 )    Morgan Stanley Capital Services
          

 

 

    

 

 

     

 

 

    
           $ 743,929      $ —         $ 743,929     
          

 

 

    

 

 

     

 

 

    

 

LIBOR—London Interbank Offered Rate

(1) The Fund pays the fixed rate and receives the floating rate.
(2) The Fund pays the floating rate and receives the fixed rate.
(3) The amount represents fair value of derivative instruments subject to interest rate contracts risk exposure as of November 30, 2011.
# Notional amount is shown in U.S. dollars unless otherwise stated.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

Level 1 - quoted prices generally for securities actively traded on a regulated securities exchange and for open-end mutual funds which trade at daily net asset value.

Level 2 - other significant observable inputs (including, but not limited to, quoted prices for similar securities, interest rates, prepayment speeds, foreign currency exchange rates, and amortized cost) generally for debt securities, swaps, forward foreign currency contracts and for foreign stocks priced using vendor modeling tools.

Level 3 - significant unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.

The following is a summary of the inputs used as of November 30, 2011 in valuing such portfolio securities:

 

     Level 1      Level 2      Level 3  

Investments in Securities

         

Collateralized Mortgage Obligations

    $ —         $ 23,212,838       $ —     

Commercial Mortgage-Backed Securities

      —           71,913,154         —     

Corporate Bonds

      —           7,177,877         —     

Mortgage-Backed Securities

      —           249,092,666         —     

Municipal Bond

      —           1,326,546         —     

Small Business Administration Agencies

      —           7,805,957         —     

U.S. Government Agency Securities

      —           14,689,298         —     

U.S. Government Treasury Obligations

      —           268,073,673         —     

Affiliated Mutual Funds

      167,365,167         —           —     

Other Financial Instruments*

         

Futures Contracts

      766,761         —           —     

Interest Rate Swaps

      —           743,929         —     
  

 

 

     

 

 

     

 

 

  

Total

    $ 168,131,928       $ 644,035,938       $ —     
  

 

 

     

 

 

     

 

 

  

 

* Other financial instruments are derivative instruments not reflected in the Schedule of Investments, such as futures, forwards and swap contracts, which are recorded at the unrealized appreciation/depreciation on the instrument.

Notes to Schedule of Investments (Unaudited)

Securities Valuation: Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and asked prices, or at the last bid price on such day in the absence of an asked price. Securities traded via NASDAQ are valued at the NASDAQ official closing price (“NOCP”) on the day of valuation, or if there was no NOCP, at the last sale price. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadvisor; to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker.

Corporate bonds (other than convertible debt securities) and U.S. government securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by an Advisor in consultation with the Manager to be over-the-counter, are valued by an independent pricing agent or more than one principal market maker (if available, otherwise by a principal market maker or a primary market dealer). Convertible debt securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by an Advisor in consultation with the Manager to be over-the-counter, are valued by an independent pricing agent or at the mean between the last reported bid and asked prices (or at the last bid price in the absence of an asked price) provided by more than one principal market maker (if available, otherwise by a principal market maker or a primary market dealer).

Futures contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted bid and asked prices on such exchange or board of trade or at the last bid price in the absence of an asked price.

Securities for which market quotations are not readily available, or whose values have been effected by events occurring after the close of the security’s foreign market and before the fund’s normal pricing time, are valued at fair value in accordance with the Board of Director’s approved fair valuation procedures. When determining the fair valuation of securities some of the factors influencing the valuation include, the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment advisor regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

Swaps are valued by “marking-to-market” the unrealized gains and losses daily.

Market values of investments traded in a foreign currency are translated into U.S. dollars at the current rates of exchange.

Investments in open end, non exchange-traded mutual funds are valued at the net asset value as of the close of the New York Stock Exchange on the date of valuation.

Short-term debt securities of sufficient credit quality, which mature in sixty days or less, are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term debt securities which mature in more than sixty days are valued at fair value.

Certain Funds invest in the Prudential Core Short-Term Bond Fund, pursuant to an exemptive order received from the Securities and Exchange Commission, and in the Prudential Core Taxable Money Market Fund, each a portfolio of the Prudential Investment Portfolios 2 registered under the Investment Company Act of 1940, as amended, and managed by PI.

Other information regarding the Funds is available in the Funds’ most recent Report to Shareholders. This information is available on the Securities and Exchange Commission’s website (www.sec.gov).

 

Item 2. Controls and Procedures

 

  (a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

 

  (b) There have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

Item 3. Exhibits

Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 – Attached hereto.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant)   Prudential Investment Portfolios, Inc. 14

 

By (Signature and Title)*  

/s/  Deborah A. Docs

  
  Deborah A. Docs  
  Secretary of the Fund  
Date January 19, 2012  

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*  

/s/  Stuart S. Parker

  
  Stuart S. Parker  
  President and Principal Executive Officer  
Date January 19, 2012  

 

By (Signature and Title)*  

/s/  Grace C. Torres

  
  Grace C. Torres  
  Treasurer and Principal Financial Officer  
Date January 19, 2012  

 

* Print the name and title of each signing officer under his or her signature.