UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT 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:	2/28/2014
Date of reporting period:	8/31/2013

Item 1 – Reports to Stockholders

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

PRUDENTIAL GOVERNMENT INCOME FUND

SEMIANNUAL REPORT ^· AUGUST 31, 2013

Fund Type

Government Bond

Objective

Seek high current return

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.

The accompanying financial statements as of August 31, 2013, were not audited and, accordingly, no auditor’s opinion is expressed on them.

Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS). Prudential Fixed Income is a unit of Prudential Investment Management, Inc. (PIM), a registered investment adviser. PIMS and PIM are Prudential Financial companies. ^© 2013 Prudential Financial, Inc., and its related entities. Prudential Investments, Prudential, the Prudential logo, Bring Your Challenges, and the Rock symbol are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.

October 15, 2013

Dear Shareholder:

We hope you find the semiannual report for the Prudential Government Income Fund informative and useful. The report covers performance for the six-month period that ended August 31, 2013.

We recognize that ongoing market volatility may make it a difficult time to be an investor. We continue to believe a prudent response to uncertainty is to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.

Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. Keep in mind, however, that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.

Prudential Investments^® is dedicated to helping you solve your toughest investment challenges—whether it’s capital growth, reliable income, or protection from market volatility and other risks. We offer the expertise of Prudential Financial’s affiliated asset managers* that strive to be leaders in a broad range of funds to help you stay on course to the future you envision. They also manage money for major corporations and pension funds around the world, which means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.

Thank you for choosing the Prudential Investments family of funds.

Sincerely,

Stuart S. Parker, President

Prudential Government Income Fund

*Most of Prudential Investments’ equity funds are advised by Jennison Associates LLC, Quantitative Management Associates LLC (QMA), or Prudential Real Estate Investors. Prudential Investments’ fixed income and money market funds are advised by Prudential Investment Management, Inc. (PIM) through its Prudential Fixed Income unit. Jennison Associates, QMA, and PIM are registered investment advisers and Prudential Financial companies. Prudential Real Estate Investors is a unit of PIM.

Prudential Government Income Fund 1

Your Fund’s Performance (Unaudited)

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852.

Cumulative Total Returns (Without Sales Charges) as of 8/31/13
	Six Months			One Year			Five Years			Ten Years			Since Inception
Class A		–2.82	%		–2.64	%		26.52	%		49.81	%		—
Class B		–3.29			–3.45			21.71			38.98			—
Class C		–3.19			–3.36			22.40			41.50			—
Class R		–3.04			–2.97			24.81			N/A			44.07% (5/17/04)
Class Z		–2.70			–2.40			28.00			53.63			—
Barclays U.S. Government Bond Index		–2.36			–2.91			21.34			53.75			—
Barclays U.S. Aggregate ex-Credit Index		–2.26			–2.58			23.53			55.88			—
Lipper General U.S. Government Funds Average		–3.42			–4.18			21.08			45.21			—
Average Annual Total Returns (With Sales Charges) as of 9/30/13
				One Year			Five Years			Ten Years			Since Inception
Class A					–6.36	%		4.09	%		3.45	%		—
Class B					–7.34			4.12			3.15			—
Class C					–3.60			4.36			3.33			—
Class R					–2.28			4.79			N/A			4.08% (5/17/04)
Class Z					–1.70			5.33			4.19			—
Barclays U.S. Government Bond Index					–1.98			4.00			4.17			—
Barclays U.S. Aggregate ex-Credit Index					–1.58			4.47			4.40			—
Lipper General U.S. Government Funds Average					–3.25			4.07			3.58			—

2 Visit our website at www.prudentialfunds.com

Distributions and Yields as of 8/31/13
	Total Distributions Paid for Six Months		30-Day SEC Yield
Class A	$	0.08		1.58	%
Class B		0.05		0.90
Class C		0.05		0.91
Class R		0.07		1.40
Class Z		0.10		1.91

Source: Prudential Investments LLC and Lipper Inc.

Inception returns are provided for any share class with less than 10 calendar years of returns. The returns in the tables reflect the share class expense structure in effect at the close of the fiscal period. The fund’s returns do not reflect the deduction of income taxes on an individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the fund or any gains you may realize if you sell your shares.

The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.

	Class A	Class B	Class C	Class R	Class Z
Maximum Initial Sales Charge	4.50% of the public offering price	None	None	None	None
Contingent deferred sales charge (CDSC)	1% on sales of $1 million or more made within 12 months of purchase	5% (Yr. 1) 4% (Yr. 2) 3% (Yr. 3) 2% (Yr. 4) 1% (Yr. 5) 1% (Yr. 6) 0%  (Yr. 7)	1% 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)	.30% (.25% currently)	1% up to $3 billion, .80% next $1 billion, and .50% over $4 billion	1%	.75% (.50% currently)	None

Benchmark Definitions

Barclays U.S. Government Bond Index

The Barclays U.S. Government Bond Index is an unmanaged index of securities issued or backed by the U.S. government, its agencies, and instrumentalities with between one and 30 years remaining to maturity. It gives a broad look at how U.S. government bonds have performed. Barclays U.S. Government Bond Index Closest Month-End to Inception cumulative total return as of 8/31/13 is 50.87% for Class R. Barclays U.S. Government Bond Index Closest Month-End to Inception average annual total return as of 9/30/13 is 4.58% for Class R.

Prudential Government Income Fund 3

Your Fund’s Performance (continued)

Barclays U.S. Aggregate ex-Credit Index

The Barclays U.S. Aggregate ex-Credit Index is an unmanaged index which represents securities that are SEC-registered, taxable, and dollar-denominated. The index covers the U.S. investment-grade fixed-rate bond market, with index components for government securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indexes that are calculated and reported on a regular basis. Barclays U.S. Aggregate ex-Credit Index Closest Month-End to Inception cumulative total return as of 8/31/13 is 52.43% for Class R. Barclays U.S. Aggregate ex-Credit Index Closest Month-End to Inception average annual total return as of 9/30/13 is 4.73% for Class R.

Lipper General U.S. Government Funds Average

The Lipper General U.S. Government Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper General U.S. Government Funds category for the periods noted. Funds in the Lipper Average invest primarily in U.S. government and agency issues. Lipper Average Closest Month-End to Inception cumulative total return as of 8/31/13 is 42.76% for Class R. Lipper Average Closest Month-End to Inception average annual total return as of 9/30/13 is 3.94% for Class R.

Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.

Five Largest Issues expressed as a percentage of net assets as of 8/31/13
Federal National Mortgage Association, 3.500%, TBA	7.4	%
Federal National Mortgage Association, 4.000%, TBA	5.9
U.S. Treasury Notes, 1.375%, 07/31/18	5.5
U.S. Treasury Bonds, 2.875%, 05/15/43	5.0
U.S. Treasury Notes, 0.625%, 08/15/16	2.8

Holdings reflect only long-term investments and are subject to change.

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Fees and Expenses (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on March 1, 2013, at the beginning of the period, and held through the six-month period ended August 31, 2013. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

Actual Expenses

The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses should not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of

Prudential Government Income Fund 5

Fees and Expenses (continued)

Prudential Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Prudential Government Income Fund		Beginning Account Value March 1, 2013		Ending Account Value August 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month  Period*
Class A	Actual	$	1,000.00	$	971.80		0.95	%	$	4.72
	Hypothetical	$	1,000.00	$	1,020.42		0.95	%	$	4.84
Class B	Actual	$	1,000.00	$	967.10		1.70	%	$	8.43
	Hypothetical	$	1,000.00	$	1,016.64		1.70	%	$	8.64
Class C	Actual	$	1,000.00	$	968.10		1.70	%	$	8.43
	Hypothetical	$	1,000.00	$	1,016.64		1.70	%	$	8.64
Class R	Actual	$	1,000.00	$	969.60		1.20	%	$	5.96
	Hypothetical	$	1,000.00	$	1,019.16		1.20	%	$	6.11
Class Z	Actual	$	1,000.00	$	973.00		0.70	%	$	3.48
	Hypothetical	$	1,000.00	$	1,021.68		0.70	%	$	3.57

*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 184 days in the six-month period ended August 31, 2013, and divided by the 365 days in the Fund’s fiscal year ending February 28, 2014 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.

6 Visit our website at www.prudentialfunds.com

The Fund’s annualized expense ratios for the six-month period ended August 31, 2013 are as follows:

Class	Gross Operating Expenses	Net Operating Expenses
A	1.00%	0.95%
B	1.70%	1.70%
C	1.70%	1.70%
R	1.45%	1.20%
Z	0.70%	0.70%

Net operating expenses shown above reflect fee waivers and/or expense reimbursements. Additional information on Fund expenses and any fee waivers and/or expense reimbursements can be found in the “Financial Highlights” tables in this report and in the Notes to the Financial Statements in this report.

Prudential Government Income Fund 7

Portfolio of Investments

as of August 31, 2013 (Unaudited)

Description	Interest Rate	Maturity Date	Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS    99.0%
COMMERCIAL MORTGAGE-BACKED SECURITIES    19.9%
Citigroup Commercial Mortgage Trust, Series 2007-C6, Class A4	5.885%(a)	12/10/49		3,000	$	3,359,910
Citigroup/Deutsche Bank Commercial Mortgage Trust, Series 2007-CD4, Class A3	5.293%	12/11/49		3,000		3,064,020
COBALT Commercial Mortgage Trust, Series 2006-C1, Class A4	5.223%	08/15/48		3,000		3,232,344
Commercial Mortgage Pass-Through Certificates, Series 2012-CR5, Class A3	2.540%	12/10/45		2,000		1,818,336
Credit Suisse Mortgage Capital Certificates, Series 2006-C1, Class AM	5.567%(a)	02/15/39		300		319,612
Fannie Mae-ACES, Series 2012-M2, Class A2	2.717%	02/25/22		270		257,944
Federal National Mortgage Association, Series 2012-M13, Class A2	2.377%	05/25/22		3,250		3,008,512
FHLMC Multifamily Structured Pass-Through Certificates, Series K003, Class A5	5.085%	03/25/19		500		564,234
FHLMC Multifamily Structured Pass-Through Certificates, Series K004, Class A2	4.186%	08/25/19		8,500		9,189,987
FHLMC Multifamily Structured Pass-Through Certificates, Series K005, Class A2	4.317%	11/25/19		1,900		2,065,456
FHLMC Multifamily Structured Pass-Through Certificates, Series K010, Class A2	4.333%	10/25/20		6,400		6,921,043
FHLMC Multifamily Structured Pass-Through Certificates, Series K011, Class A2	4.084%(a)	11/25/20		6,400		6,819,731
FHLMC Multifamily Structured Pass-Through Certificates, Series K013, Class A2	3.974%(a)	01/25/21		6,600		6,997,142
FHLMC Multifamily Structured Pass-Through Certificates, Series K016, Class A2(b)	2.968%	10/25/21		4,700		4,631,206

See Notes to Financial Statements.

Prudential Government Income Fund 9

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Interest Rate	Maturity Date	Principal Amount (000)#		Value (Note 1)
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued)
FHLMC Multifamily Structured Pass-Through Certificates, Series K020, Class X1, I/O	1.611%(a)	05/25/22		15,379	$	1,490,441
FHLMC Multifamily Structured Pass-Through Certificates, Series K021, Class A2	2.396%	06/25/22		6,400		5,953,389
FHLMC Multifamily Structured Pass-Through Certificates, Series K021, Class X1, I/O	1.646%(a)	06/25/22		16,636		1,679,520
FHLMC Multifamily Structured Pass-Through Certificates, Series K024, Class A2	2.573%	09/25/22		3,125		2,931,625
FHLMC Multifamily Structured Pass-Through Certificates, Series K026, Class A2	2.510%	11/25/22		6,400		5,931,072
FHLMC Multifamily Structured Pass-Through Certificates, Series K029, Class A2	3.320%(a)	02/25/23		6,400		6,296,288
FHLMC Multifamily Structured Pass-Through Certificates, Series K501, Class X1A, I/O	1.876%(a)	08/25/16		7,061		262,703
FHLMC Multifamily Structured Pass-Through Certificates, Series K710, Class X1, I/O	1.914%(a)	05/25/19		13,438		1,129,191
FHLMC Multifamily Structured Pass-Through Certificates, Series K711, Class X1, I/O	1.833%(a)	07/25/19		12,968		1,063,535
FHLMC Multifamily Structured Pass-Through Certificates, Series KSMC, Class A2	2.615%	01/25/23		688		638,529
Greenwich Capital Commercial Mortgage Trust I, Series 2007-GG9, Class A2	5.381%	03/10/39		1,204		1,243,166
GS Mortgage Securities Corp. II, Series 2007-GG10, Class A2	5.778%(a)	08/10/45		1,437		1,451,521
JPMorgan Chase Commercial Mortgage Securities Corp., Series 2007-LD11, Class A3	6.003%(a)	06/15/49		1,600		1,671,544
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2006-4, Class A3	5.172%(a)	12/12/49		3,300		3,593,370

See Notes to Financial Statements.

10

Description	Interest Rate	Maturity Date	Principal Amount (000)#		Value (Note 1)
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued)
Merrill Lynch/Countrywide Commercial Mortgage Trust, Series 2007-9, Class A2	5.590%	09/12/49		944	$	946,299
Morgan Stanley Capital I Trust, Series 2005-IQ10, Class A4B	5.284%(a)	09/15/42		1,192		1,259,487
NCUA Guaranteed Notes, Series 2010-C1, Class A2	2.900%	10/29/20		4,000		4,128,264
UBS-Barclays Commercial Mortgage Trust, Series 2012-C4, Class A4	2.792%	12/10/45		2,400		2,194,440
Wachovia Bank Commercial Mortgage Trust, Series 2006-C23, Class A5	5.416%(a)	01/15/45		2,000		2,177,552
Wachovia Bank Commercial Mortgage Trust, Series 2006-C25, Class A5	5.915%(a)	05/15/43		3,000		3,310,305
Wachovia Bank Commercial Mortgage Trust, Series 2006-C27, Class A3	5.765%(a)	07/15/45		4,440		4,747,023
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (cost $110,191,385)						106,348,741
CORPORATE BONDS    1.1%
Depfa ACS Bank (Ireland), Covered Notes, 144A	5.125%	03/16/37		1,145		951,781
DNB Boligkreditt AS (Norway), Covered Notes, 144A	1.450%	03/21/19		1,320		1,277,364
Kommunalbanken AS (Norway), Sr. Unsec’d. Notes, 144A	1.125%	05/23/18		1,868		1,799,071
Kreditanstalt Fuer Wiederaufbau (Germany), Gov’t. Notes(b)	2.375%	08/25/21		1,080		1,048,896
Stadshypotek AB (Sweden), Covered Notes, 144A(b)	1.250%	05/23/18		700		672,280
TOTAL CORPORATE BONDS (cost $6,083,558)						5,749,392
MUNICIPAL BONDS    1.3%
New York City Water & Sewer System, BABs, Revenue Bonds, Series EE	5.000%	06/15/47		2,775		2,774,806
Ohio State Turnpike Commission, BABs, Revenue Bonds, Series A-1	5.000%	02/15/48		1,325		1,287,807

See Notes to Financial Statements.

Prudential Government Income Fund 11

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Interest Rate	Maturity Date	Principal Amount (000)#		Value (Note 1)
MUNICIPAL BONDS (Continued)
Pennsylvania Turnpike Commission, Series C	5.000%	12/01/43		1,595	$	1,544,151
Utah St., BABs, Series D, GO	4.554%	07/01/24		1,170		1,255,176
TOTAL MUNICIPAL BONDS (cost $6,997,753)						6,861,940
RESIDENTIAL MORTGAGE-BACKED SECURITIES    0.2%
MLCC Mortgage Investors, Inc., Series 2003-E, Class A1	0.804%(a)	10/25/28		217		205,600
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-1, Class 4A3	2.487%(a)	02/25/34		804		793,791
TOTAL RESIDENTIAL MORTGAGE-BACKED SECURITIES (cost $1,024,915)						999,391
SMALL BUSINESS ADMINISTRATION AGENCIES    0.6%
Small Business Administration Participation Certificates, Series 1995-20B, Class 1	8.150%	02/01/15		133		139,210
Small Business Administration Participation Certificates, Series 1995-20L, Class 1	6.450%	12/01/15		636		665,692
Small Business Administration Participation Certificates, Series 1996-20H, Class 1	7.250%	08/01/16		575		604,026
Small Business Administration Participation Certificates, Series 1996-20K, Class 1	6.950%	11/01/16		623		656,526
Small Business Administration Participation Certificates, Series 1997-20A, Class 1	7.150%	01/01/17		194		205,250
Small Business Administration Participation Certificates, Series 1998-20I, Class 1	6.000%	09/01/18		1,007		1,082,631
TOTAL SMALL BUSINESS ADMINISTRATION AGENCIES (cost $3,173,616)						3,353,335

See Notes to Financial Statements.

12

Description	Interest Rate	Maturity Date	Principal Amount (000)#		Value (Note 1)
U.S. GOVERNMENT AGENCY OBLIGATIONS    45.6%
Federal Home Loan Mortgage Corp.(b)	0.750%	01/12/18		1,425	$	1,375,906
Federal Home Loan Mortgage Corp.	2.354%(a)	05/01/34		1,373		1,456,022
Federal Home Loan Mortgage Corp.(c)	3.500%	TBA		1,000		1,043,906
Federal Home Loan Mortgage Corp.(c)	3.500%	TBA		2,000		1,993,359
Federal Home Loan Mortgage Corp.	3.500%	09/01/26		879		919,212
Federal Home Loan Mortgage Corp.	4.000%	06/01/26-12/01/40		5,929		6,159,485
Federal Home Loan Mortgage Corp.	4.500%	09/01/39		5,420		5,705,258
Federal Home Loan Mortgage Corp.	5.000%	10/15/17-05/01/34		11,490		12,372,636
Federal Home Loan Mortgage Corp.	5.500%	09/15/17-01/01/38		4,106		4,394,346
Federal Home Loan Mortgage Corp.	6.000%	08/01/32-09/01/34		565		619,229
Federal Home Loan Mortgage Corp.	6.500%	09/01/32-09/01/32		599		671,749
Federal Home Loan Mortgage Corp.	7.000%	09/01/32		129		147,726
Federal Home Loan Mortgage Corp.	8.000%	03/01/22-08/01/22		61		62,734
Federal Home Loan Mortgage Corp.	8.500%	01/01/17-09/01/19		57		60,817
Federal Home Loan Mortgage Corp.	9.000%	01/01/20		29		29,845
Federal Home Loan Mortgage Corp.	11.500%	10/01/19		27		27,330
Federal National Mortgage Association	0.875%	05/21/18		935		898,172
Federal National Mortgage Association	1.875%	09/18/18		6,905		6,903,018
Federal National Mortgage Association	2.157%(a)	07/01/33		4,121		4,358,904
Federal National Mortgage Association	2.249%(a)	06/01/34		1,122		1,186,359
Federal National Mortgage Association	2.255%(a)	04/01/34		533		562,028
Federal National Mortgage Association	2.500%	TBA		9,500		9,427,266
Federal National Mortgage Association	2.549%(a)	04/01/34		990		1,046,238
Federal National Mortgage Association	3.000%	TBA		12,500		12,791,015
Federal National Mortgage Association	3.000%	TBA		1,000		1,020,937
Federal National Mortgage Association(c)	3.000%	TBA		6,500		6,233,144
Federal National Mortgage Association	3.000%	01/01/27		1,901		1,948,065
Federal National Mortgage Association	3.500%	TBA		4,000		3,988,125

See Notes to Financial Statements.

Prudential Government Income Fund 13

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Interest Rate	Maturity Date	Principal Amount (000)#			Value (Note 1)
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued)
Federal National Mortgage Association(c)	3.500%	TBA		500		$	522,734
Federal National Mortgage Association(c)	3.500%	TBA		39,500			39,487,656
Federal National Mortgage Association	3.500%	06/01/39-03/01/42		1,451			1,452,293
Federal National Mortgage Association(c)	4.000%	TBA		30,500			31,415,002
Federal National Mortgage Association(c)	4.500%	TBA		10,000			10,562,891
Federal National Mortgage Association	4.500%	01/01/20		281			298,427
Federal National Mortgage Association	5.000%	07/01/18-05/01/36		6,487			6,941,541
Federal National Mortgage Association	5.500%	08/01/15-11/01/36		18,244			19,828,593
Federal National Mortgage Association	6.000%	11/01/14-05/01/36		5,739			6,287,472
Federal National Mortgage Association	6.500%	02/01/14-10/01/37		6,187			6,919,220
Federal National Mortgage Association	7.000%	12/01/13-02/01/36		2,125			2,380,400
Federal National Mortgage Association	8.500%	06/01/17		298	(d)		299
Federal National Mortgage Association	9.000%	04/01/25-04/01/25		23			25,327
Federal National Mortgage Association	9.500%	01/01/25-02/01/25		24			24,427
Government National Mortgage Association(c)	3.500%	TBA		7,000			7,068,907
Government National Mortgage Association	4.000%	TBA		2,000			2,079,375
Government National Mortgage Association(c)	4.500%	TBA		4,500			4,774,219
Government National Mortgage Association(c)	4.500%	TBA		2,500			2,662,500
Government National Mortgage Association	4.500%	01/20/41-02/20/41		4,026			4,305,800
Government National Mortgage Association	5.000%	07/15/33-04/15/34		3,588			3,904,210

See Notes to Financial Statements.

14

Description	Interest Rate	Maturity Date	Principal Amount (000)#		Value (Note 1)
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued)
Government National Mortgage Association	5.500%	02/15/34-02/15/36		1,930	$	2,125,766
Government National Mortgage Association	7.000%	03/15/22-02/15/29		2,814		3,198,595
Government National Mortgage Association	7.500%	01/15/23-07/15/24		368		400,539
Government National Mortgage Association	8.500%	04/15/25		347		381,826
Government National Mortgage Association	9.500%	09/15/16-08/20/21		142		145,584
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (cost $238,388,150)						244,596,434
U.S. TREASURY OBLIGATIONS    30.3%
U.S. Treasury Bonds	2.875%	05/15/43		31,470		26,788,837
U.S. Treasury Bonds(b)	6.125%	11/15/27		2,805		3,755,194
U.S. Treasury Bonds	8.125%	08/15/19		10,965		14,855,009
U.S. Treasury Notes	0.500%	07/31/17		7,200		7,004,246
U.S. Treasury Notes(b)	0.625%	08/15/16		15,055		14,997,369
U.S. Treasury Notes	0.750%	10/31/17		2,500		2,442,188
U.S. Treasury Notes	1.375%	06/30/18		5,295		5,251,152
U.S. Treasury Notes(b)	1.375%	07/31/18		29,875		29,590,261
U.S. Treasury Notes	2.000%	07/31/20		1,070		1,057,043
U.S. Treasury Notes	2.125%	08/31/20		3,015		2,998,276
U.S. Treasury Notes(b)	2.500%	08/15/23		10,465		10,239,354
U.S. Treasury Notes(e)(f)	4.250%	11/15/17		3,050		3,418,861
U.S. Treasury Notes(b)	4.750%	08/15/17		2,725		3,099,050
U.S. Treasury STRIPS, I/O	2.933%(g)	02/15/22		6,660		5,320,401
U.S. Treasury STRIPS, I/O	3.013%(g)	05/15/22		14,120		11,152,894
U.S. Treasury STRIPS, I/O	4.012%(g)	02/15/26		2,030		1,346,911
U.S. Treasury STRIPS, I/O(b)	4.135%(g)	08/15/26		6,885		4,460,509
U.S. Treasury STRIPS, I/O	4.526%(g)	05/15/28		9,405		5,613,892
U.S. Treasury STRIPS, I/O(b)	4.580%(g)	08/15/28		14,400		8,495,338
U.S. Treasury STRIPS, P/O	7.195%(g)	02/15/43		2,205		699,885
TOTAL U.S. TREASURY OBLIGATIONS (cost $166,873,304)						162,586,670
TOTAL LONG-TERM INVESTMENTS (cost $532,732,681)						530,495,903

See Notes to Financial Statements.

Prudential Government Income Fund 15

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Shares		Value (Note 1)
SHORT-TERM INVESTMENTS    38.9%
AFFILIATED MUTUAL FUNDS
Prudential Investment Portfolios 2 - Prudential Core Short-Term Bond Fund (cost $90,698,320)(h)		9,299,243	$	86,389,967
Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $122,145,636; includes $56,829,103 of cash collateral for securities on loan)(h)(i)		122,145,636		122,145,636
TOTAL SHORT-TERM INVESTMENTS (cost $212,843,956; Note 3)				208,535,603
TOTAL INVESTMENTS    137.9% (cost $745,576,637; Note 5)				739,031,506
Liabilities in excess of other assets(j)    (37.9)%				(203,225,422	)
NET ASSETS    100.0%			$	535,806,084

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.

ACES—Alternative Credit Enhancement Securities

BABs—Build America Bonds

FHLMC—Federal Home Loan Mortgage Corp.

GO—General Obligation

I/O—Interest Only

LIBOR—London Interbank Offered Rate

P/O—Principal Only

STRIPS—Separate Trading of Registered Interest and Principal of Securities.

TBA—To Be Announced

# Principal amount or notional amount shown in U.S. dollars unless otherwise stated.

(a) Variable rate instrument. The interest rate shown reflects the rate in effect at August 31, 2013.

(b) All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $55,651,772; cash collateral of $56,829,103 (included with liabilities) was received with which the Fund purchased highly liquid short-term investments.

(c) All or a partial principal amount of $60,000,000 represents a to-be announced (“TBA”) mortgage dollar roll.

(d) Amount is actual; not rounded to thousands.

(e) Represents security, or a portion thereof, segregated as collateral for futures contracts.

(f) Represents security, or a portion thereof, segregated as collateral for swap agreements.

(g) Rates shown are the yield to maturity at purchase date.

See Notes to Financial Statements.

16

(h) 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.

(i) Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

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

Open futures contracts outstanding at August 31, 2013:

Number of Contracts		Type	Expiration Date		Value at Trade Date		Value at August 31, 2013		Unrealized Appreciation (Depreciation)
		Long Positions:
	633	5 Year U.S. Treasury Notes		Dec. 2013	$	75,512,297	$	75,757,242	$	244,945
		Short Positions:
	223	2 Year U.S. Treasury Notes		Sep. 2013		49,122,444		49,087,875		34,569
	160	10 Year U.S. Treasury Notes		Dec. 2013		19,887,491		19,885,000		2,491
	271	U.S. Long Treasury Bonds		Dec. 2013		35,437,042		35,746,594		(309,552	)
	90	U.S. Ultra Treasury Bonds		Dec. 2013		12,536,694		12,768,750		(232,056	)
									$	(259,603	)

Interest rate swap agreements outstanding at August 31, 2013:

Notional Amount (000)#		Termination Date		Fixed Rate		Floating Rate	Fair Value			Upfront Premiums Paid (Received)		Unrealized Appreciation (Depreciation)			Counterparty
	Over-the-counter swap agreements:
	9,555		08/31/16		0.975%	3 Month LIBOR(1)	$	(11,276	)	$	—	$	(11,276	)	JPMorgan Chase Bank NA
	9,555		08/31/16		0.978%	3 Month LIBOR(1)		(12,275	)		—		(12,275	)	JPMorgan Chase Bank NA
	4,755		11/30/16		0.945%	3 month LIBOR(1)		3,169			—		3,169		Citibank NA
	8,190		08/31/17		0.751%	3 Month LIBOR(1)		199,989			—		199,989		Bank of Nova Scotia
	11,410		11/30/17		1.155%	3 month LIBOR(1)		157,080			—		157,080		Morgan Stanley Capital Services
	1,868		05/17/18		0.989%	3 month LIBOR(1)		51,665			—		51,665		Credit Suisse International
	5,000		08/23/18		1.773%	3 month LIBOR(1)		(7,074	)		172		(7,246	)	Citibank NA

See Notes to Financial Statements.

Prudential Government Income Fund 17

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Notional Amount (000)#		Termination Date		Fixed Rate		Floating Rate	Fair Value			Upfront Premiums Paid (Received)		Unrealized Appreciation (Depreciation)			Counterparty
	7,700		02/15/19		1.656%	3 month LIBOR(1)	$	103,304		$	—	$	103,304		Citibank NA
	34,025		01/28/23		1.895%	3 month LIBOR(1)		2,743,248			—		2,743,248		Morgan Stanley Capital Services
	19,365		06/07/16		0.654%	3 Month LIBOR(2)		(82,160	)		—		(82,160	)	JPMorgan Chase Bank NA
	1,460		09/14/16		1.206%	3 month LIBOR(2)		(18,415	)		—		(18,415	)	Deutsche Bank AG
	15,965		02/28/17		0.680%	3 month LIBOR(2)		(258,373	)		—		(258,373	)	Citibank NA
	7,700		02/15/19		1.794%	3 month LIBOR(2)		(46,676	)		—		(46,676	)	JPMorgan Chase Bank NA
	9,095		02/15/20		1.355%	3 Month LIBOR(2)		(488,081	)		—		(488,081	)	Morgan Stanley Capital Services
	19,895		08/05/23		4.210%	3 month LIBOR(2)		(79,077	)		—		(79,077	)	Citibank NA
	7,960		08/06/23		4.220%	3 month LIBOR(2)		(28,340	)		—		(28,340	)	Citibank NA
	10,630		08/09/23		4.231%	3 month LIBOR(2)		(33,323	)		196		(33,519	)	Citibank NA
							$	2,193,385		$	368	$	2,193,017

(1) The Fund pays the fixed rate and receives the floating rate.

(2) The Fund pays the floating rate and receives the fixed rate.

# 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 in active markets for identical securities.

Level 2—other significant observable inputs including, but not limited to, quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates, and amortized cost.

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

See Notes to Financial Statements.

18

The following is a summary of the inputs used as of August 31, 2013 in valuing such portfolio securities:

	Level 1			Level 2		Level 3
Investments in Securities
Commercial Mortgage-Backed Securities	$	—		$	106,348,741	$	—
Corporate Bonds		—			5,749,392		—
Municipal Bonds		—			6,861,940		—
Residential Mortgage-Backed Securities		—			999,391		—
Small Business Administration Agencies		—			3,353,335		—
U.S. Government Agency Obligations		—			244,596,434		—
U.S. Treasury Obligations		—			162,586,670		—
Affiliated Mutual Funds		208,535,603			—		—
Other Financial Instruments*
Futures Contracts		(259,603	)		—		—
Interest Rate Swaps		—			2,193,017		—
Total	$	208,276,000		$	532,688,920	$	—

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

The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of August 31, 2013 was as follows:

U.S. Government Agency Obligations	45.6	%
Affiliated Mutual Funds (including 10.6% of collateral received for securities on loan)	38.9
U.S. Treasury Obligations	30.3
Commercial Mortgage-Backed Securities	19.9
Municipal Bonds	1.3
Corporate Bonds	1.1	%
Small Business Administration Agencies	0.6
Residential Mortgage-Backed Securities	0.2
	137.9
Liabilities in excess of other assets	(37.9	)
	100.0	%

See Notes to Financial Statements.

Prudential Government Income Fund 19

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

The Fund invested in derivative instruments during the reporting period. The primary type of risk associated with these derivative instruments is interest rate risk. The effect of such derivative instruments on the Fund's financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.

Fair values of derivative instruments as of August 31, 2013 as presented in the Statement of Assets and Liabilities:

Derivatives not accounted for as hedging instruments, carried at fair value	Asset Derivatives				Liability Derivatives
	Balance Sheet Location	Fair Value			Balance Sheet Location	Fair Value
Interest rate contracts	Due to broker—variation margin	$	282,005	*	Due to broker—variation margin	$	541,608	*
Interest rate contracts	Unrealized appreciation on over-the-counter swap agreements		3,258,455		Unrealized depreciation on over-the-counter swap agreements		1,065,438
Interest rate contracts	Premiums paid for swap agreements		368		—		—
Total		$	3,540,828			$	1,607,046

* Includes cumulative appreciation/depreciation as reported in schedule of open futures. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities.

The effects of derivative instruments on the Statement of Operations for the six months ended August 31, 2013 are as follows:

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Futures			Written Options			Swaps		Total
Interest rate contracts	$	(867,156	)	$	(12,193	)	$	1,045,242	$	165,893

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Futures			Swaps		Total
Interest rate contracts	$	(241,773	)	$	2,164,106	$	1,922,333

See Notes to Financial Statements.

20

For the six months ended August 31, 2013, the Fund's average volume of derivative activities are as follows:

Purchased Options(1)		Futures Contracts—Long Positions(2)		Futures Contracts—Short Positions(2)		Interest rate  swap agreements(3)
$	61,327	$	70,097,119	$	59,461,999	$	205,755,333

(1) Cost.

(2) Value at Trade Date.

(3) Notional Amount.

The Fund invested in financial instruments and derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar arrangements that permit offsetting. The information about offsetting and related netting arrangements for assets and liabilities, where the legal right to set-off exists, is presented in the summary below.

Offsetting of financial instrument and derivative assets and liabilities:

Description	Gross Amounts Recognized			Gross Amounts not subject to netting		Gross Amounts Offset in the Statement of Financial Position	Net Amounts Presented in the Statement of Financial Position
Assets:
Securities on loan	$	55,651,772		$	—	$  —	$	55,651,772
Over-the-counter derivatives		3,258,455			—	—		3,258,455
								58,910,227
Liabilities:
Exchange-traded and cleared derivatives		(138,356	)		—	—		(138,356	)
Over-the-counter derivatives		(1,065,438	)		—	—		(1,065,438	)
								(1,203,794	)
Collateral Amounts Pledged/(Received):
Securities on loan								(55,651,772	)
Exchange-traded and cleared derivatives								138,356
Over-the-counter derivatives								(2,339,209	)
Net Amount							$	(146,192	)

See Notes to Financial Statements.

Prudential Government Income Fund 21

Statement of Assets & Liabilities

as of August 31, 2013 (Unaudited)

Assets
Investments at value, including securities on loan of $55,651,772:
Unaffiliated investments (cost $532,732,681)	$	530,495,903
Affiliated investments (cost $212,843,956)		208,535,603
Cash		114,144
Receivable for investments sold		146,072,955
Unrealized appreciation on over-the-counter swap agreements		3,258,455
Dividends and interest receivable		1,758,481
Receivable for Fund shares sold		213,895
Premium paid for swap agreements		368
Prepaid expenses		8,099
Total assets		890,457,903
Liabilities
Payable for investments purchased		293,154,618
Payable to broker for collateral for securities on loan		56,829,103
Payable for Fund shares reacquired		2,805,920
Unrealized depreciation on over-the-counter swap agreements		1,065,438
Management fee payable		233,898
Accrued expenses		148,464
Due to broker—variation margin		138,356
Distribution fee payable		114,869
Dividends payable		83,832
Affiliated transfer agent fee payable		59,173
Deferred directors’ fees		18,148
Total liabilities		354,651,819
Net Assets	$	535,806,084
Net assets were comprised of:
Common stock, at par	$	568,942
Paid-in capital in excess of par		542,024,674
		542,593,616
Distributions in excess of net investment income		(760,049	)
Accumulated net realized loss on investment transactions		(1,413,726	)
Net unrealized depreciation on investments		(4,613,757	)
Net assets, August 31, 2013	$	535,806,084

See Notes to Financial Statements.

22

Class A
Net asset value and redemption price per share
($428,374,977 ÷ 45,478,255 shares of common stock issued and outstanding)	$	9.42
Maximum sales charge (4.50% of offering price)		0.44
Maximum offering price to public	$	9.86
Class B
Net asset value, offering price and redemption price per share
($7,127,831 ÷ 755,566 shares of common stock issued and outstanding)	$	9.43
Class C
Net asset value, offering price and redemption price per share
($14,875,330 ÷ 1,575,874 shares of common stock issued and outstanding)	$	9.44
Class R
Net asset value, offering price and redemption price per share
($9,633,975 ÷ 1,021,355 shares of common stock issued and outstanding)	$	9.43
Class Z
Net asset value, offering price and redemption price per share
($75,793,971 ÷ 8,063,164 shares of common stock issued and outstanding)	$	9.40

See Notes to Financial Statements.

Prudential Government Income Fund 23

Statement of Operations

Six Months Ended August 31, 2013 (Unaudited)

Net Income
Income
Interest income	$	6,449,436
Affiliated dividend income		655,000
Affiliated income from securities loaned, net		41,262
Total income		7,145,698
Expenses
Management fee		1,470,326
Distribution fee—Class A		570,939
Distribution fee—Class B		41,908
Distribution fee—Class C		91,700
Distribution fee—Class R		26,420
Transfer agent’s fees and expenses (including affiliated expense of $175,700) (Note 3)		364,000
Custodian’s fees and expenses		93,000
Registration fees		37,000
Shareholders’ reports		27,000
Audit fee		17,000
Legal fees and expenses		12,000
Director’s fees		12,000
Insurance		6,000
Miscellaneous		8,153
Total expenses		2,777,446
Net investment income		4,368,252
Realized and Unrealized Gain (Loss) on Investments
Net realized gain (loss) on:
Investment transactions		(2,595,364	)
Swap agreements transactions		1,045,242
Financial futures transactions		(867,156	)
Options written transactions		(12,193	)
		(2,429,471	)
Net change in unrealized appreciation (depreciation) on:
Investments (including affiliated: ($186,462))		(20,757,013	)
Financial futures contracts		(241,773	)
Swap agreements		2,164,106
		(18,834,680	)
Net loss on investment transactions		(21,264,151	)
Net Decrease In Net Assets Resulting From Operations	$	(16,895,899	)

See Notes to Financial Statements.

24

Statement of Changes in Net Assets

(Unaudited)

	Six Months Ended August 31, 2013			Year Ended February 28, 2013
Increase (Decrease) in Net Assets
Operations
Net investment income	$	4,368,252		$	11,192,473
Net realized gain (loss) on investment transactions		(2,429,471	)		13,809,616
Net change in unrealized appreciation (depreciation) on investments		(18,834,680	)		(6,118,476	)
Net increase (decrease) in net assets resulting from operations		(16,895,899	)		18,883,613
Dividends and Distributions (Note 1)
Dividends from net investment income
Class A		(3,980,242	)		(11,032,625	)
Class B		(41,556	)		(154,840	)
Class C		(90,721	)		(303,907	)
Class R		(78,799	)		(183,765	)
Class Z		(936,729	)		(2,301,065	)
		(5,128,047	)		(13,976,202	)
Distributions from net realized gains
Class A		—			(14,796,796	)
Class B		—			(301,371	)
Class C		—			(646,860	)
Class R		—			(314,987	)
Class Z		—			(2,831,597	)
		—			(18,891,611	)
Fund share transactions (Net of share conversions) (Note 6)
Net proceeds from shares sold		37,645,636			93,645,514
Net asset value of shares issued in reinvestment of dividends and distributions		4,608,182			29,331,266
Cost of shares reacquired		(89,319,627	)		(178,837,574	)
Net decrease in net assets from Fund share transactions		(47,065,809	)		(55,860,794	)
Total decrease		(69,089,755	)		(69,844,994	)
Net Assets:
Beginning of period		604,895,839			674,740,833
End of period	$	535,806,084		$	604,895,839

See Notes to Financial Statements.

Prudential Government Income Fund 25

Notes to Financial Statements

(Unaudited)

Prudential Investment Portfolios, Inc. 14 (the “Company”) is a diversified open-end management investment company registered under the Investment Company Act of 1940, as amended, (“1940 Act”). The Company consists of two funds: Prudential Government Income Fund (the “Fund”) and Prudential Floating Rate Income Fund. These financial statements relate to Prudential Government Income Fund. The Fund’s investment objective is to seek high current return.

Note 1. Accounting Policies

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Securities Valuations: The Fund holds portfolio securities and other assets that are fair valued at the close of each day the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Trustees (the “Board”) has delegated fair valuation responsibilities to Prudential Investments LLC (“PI” or “Manager”) through the adoption of Valuation Procedures for valuation of the Fund’s securities. Under the current Valuation Procedures, a Valuation Committee is established and responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures allow the Fund to utilize independent pricing vendor services, quotations from market makers and other valuation methods in events when market quotations are not readily available or not representative of the fair value of the securities. A record of the Valuation Committee’s actions is subject to review, approval and ratification by the Board at its next regularly scheduled quarterly meeting.

Various inputs are used in determining the value of the Fund’s investments, which are summarized in the three broad level hierarchies based on any observable inputs used as described in the table following the Portfolio of Investments. The valuation methodologies and significant inputs used in determining the fair value of securities and other assets classified as Level 1, Level 2 and Level 3 of the hierarchy are as follows:

Common stocks, exchange-traded funds and financial derivative instruments (including futures contracts and certain options and swap contracts on securities), that are traded on a national securities exchange are valued at the last sale price as of the

26

close of trading on the applicable exchange. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 of the fair value hierarchy.

In the event there is no sale or official closing price on such day, these securities are valued at the mean between the last reported bid and asked prices, or at the last bid price in absence of an asked price. These securities are classified as Level 2 of the fair value hierarchy as these inputs are considered as significant other observable inputs to the valuation.

Common stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy, as the adjustment factors are observable and considered to be significant to the valuation.

Investments in open-end, non-exchange-traded mutual funds are valued at their net asset value as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 as these securities have the ability to be purchased or sold at their net asset value on the date of valuation.

Fixed income securities traded in the over-the-counter market, such as corporate bonds, municipal bonds, U.S. Government agencies issues and guaranteed obligations, U.S. Treasury obligations, and sovereign issues are usually valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices usually after evaluating observable inputs including yield curves, credit rating, yield spreads, default rates, cash flows as well as broker/dealer quotations and reported trades. Securities valued using such vendor prices are classified as Level 2 of the fair value hierarchy.

Asset-backed and mortgage-related securities are usually valued by approved independent pricing vendors. The pricing vendors provide the prices using their internal pricing models with inputs from deal terms, tranche level attributes, yield curves, prepayment speeds, default rates and broker/dealer quotes. Securities valued using such vendor prices are classified as Level 2 of the fair value hierarchy.

Over-the-counter financial derivative instruments, such as option contracts, foreign currency contracts and swaps agreements, are usually valued using pricing vendor services, which derive the valuation based on underlying asset prices, indices,

Prudential Government Income Fund 27

Notes to Financial Statements

(Unaudited) continued

spreads, interest rates, exchange rates and other inputs. These instruments are categorized as Level 2 of the fair value hierarchy.

Securities and other assets that cannot be priced using the methods described above are valued with pricing methodologies approved by the Board of Directors. In the event there are unobservable inputs used when determining such valuations, the securities will be classified as Level 3 of the fair value hierarchy.

When determining the fair value 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 the 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 adviser 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.

Options: The Fund purchased and wrote options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates or foreign currency exchange rates with respect to securities or financial instruments which the Fund currently owns or intends to purchase. The Fund also purchased options to gain exposure to certain securities and foreign currencies. The Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone.

When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option.

If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase in determining whether the Fund has realized a gain or loss. The difference

28

between the premium and the amount received or paid on at a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in net realized gain or loss on investment transactions. Gain or loss on written options is presented separately as net realized gain or loss on options written.

The Fund, as writer of an option, may have no control over whether the underlying securities may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security or currency underlying the written option. Over-the-counter options involve the risk of the potential inability of the counterparties to meet the terms of their contracts.

When a Fund writes an option on a swap contract, an amount equal to any premium received by the Fund is recorded as a liability and is subsequently adjusted to the current market value of the written option on the swap. If a call option on a swap is exercised, the Fund becomes obligated to pay a fixed interest rate (noted as the strike price) and receive a variable interest rate on a notional amount. If a put option on a swap is exercised, the Fund becomes obligated to pay a variable interest rate and receive a fixed interest rate (noted as the strike price) on a notional amount. Premiums received from writing options on swaps that expire or are exercised are treated as realized gains upon the expiration or exercise of such options on swaps. The risk associated with writing put and call options on swaps is that the Fund will be obligated to be party to a swap agreement if an option on a swap is exercised.

Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the Statement of Operations as net realized gain or loss on financial futures contracts.

The Fund invests in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the

Prudential Government Income Fund 29

Notes to Financial Statements

(Unaudited) continued

risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. Financial futures contracts involve elements of risk in excess of the amounts reflected on the Statement of Assets and Liabilities.

With exchange-traded futures and options contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearinghouse acts as counterparty to all exchange traded futures and options, and guarantees the futures and options contracts against default.

Swap Agreements: The Fund may enter into credit default, interest rate, total return and other forms of swap agreements. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the over-the-counter market and may be executed either directly with the counterparty (“OTC Traded”) or through a central clearing facility, such as a registered commodities exchange (“Exchange Traded”). The swap agreements are valued daily at current market value and any change in value is included in the net unrealized appreciation or depreciation on investments. Upon entering into an exchange traded swap, the Fund pledges with the clearing broker an initial margin and thereafter, pays or receives an amount, known as “variation margin”, based on daily changes in valuation of swap contract. Payments received or paid by the Fund are recorded as realized gains or losses upon termination or maturity of the swap. Risk of loss may exceed amounts recognized on the Statements of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Portfolio of Investments.

Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives. The Fund used interest rate swaps to generate steady cash flow by receiving a stream of fixed rate payments and to increase exposure to prevailing market rates by receiving floating rate payments. The Fund’s maximum risk of loss from counterparty credit risk is the discounted net value of the cash flows to be received from the counterparty over the contract’s remaining life. This risk may be mitigated by having a master netting arrangement between the Fund and the counterparty which may permit the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral

30

from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable.

Inflation Swaps: The Fund entered into inflation swap agreements to provide a measure of protection against the effect of inflation on yield. Inflation swap agreements involve two parties exchanging cash flows at a later date at rates related to inflation indices.

Master Netting Arrangements: Certain Portfolios are subject to various Master Agreements, or netting arrangements, with select counterparties. A master netting arrangement between the Portfolio and the counterparty permits the Portfolio to offset amounts payable by the Portfolio to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Portfolio to cover the Portfolio’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. The right to set-off exists when all the conditions are met such that each of the parties owes the other a determinable amount, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off, and the right of set-off is enforceable by law. During the reporting period, no instances occurred where the right to set-off existed and management has not elected to offset.

Certain Portfolios are parties to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements (Master Agreements) with certain counterparties that govern over-the-counter derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to the Portfolio is held in a segregated account by the Portfolio’s custodian and with respect to those amounts which can be sold or re-pledged, are presented in the Schedule of Investments. Collateral pledged by the Portfolio is segregated by the Portfolio’s custodian and identified in the Schedule of Investments. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by the Portfolio and the applicable counterparty. Collateral requirements are determined based on the Portfolio’s net position with each counterparty. Termination events applicable to the Portfolio may occur upon a decline in the Portfolio’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts

Prudential Government Income Fund 31

Notes to Financial Statements

(Unaudited) continued

outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of the Portfolio’s counterparties to elect early termination could impact the Portfolio’s future derivative activity.

In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified or received as collateral from the counterparty in accordance with the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such over-the-counter derivative agreements include conditions which, when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.

As of August 31, 2013, none of the Portfolios have met conditions under such agreements which give the counterparty the right to call for an early termination.

Written options, short sales, swaps and financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. Such risks may be mitigated by engaging in master netting arrangements.

Securities Lending: The Fund may lend its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in a highly liquid short-term money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities using the collateral in the open

32

market. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities, and any interest on the investment of cash received as collateral. The Fund also continues to receive interest and dividends or amounts equivalent thereto, on the securities loaned and recognizes any unrealized gain or loss in the market price of the securities loaned that may occur during the term of the loan.

Dollar Rolls: The Fund enters into mortgage dollar rolls in which the Fund sells mortgage securities for delivery in the current month, realizing a gain (loss), and simultaneously contracts to repurchase somewhat similar (same type, coupon and maturity) securities on a specified future date. During the roll period, the Fund forgoes principal and interest paid on the securities. The Fund is compensated by the interest earned on the cash proceeds of the initial sale and by the lower repurchase price at the future date. The difference between the sales proceeds and the lower repurchase price is recorded as a realized gain. The Fund maintains a segregated account, the dollar value of which is at least equal to its obligations, with respect to dollar rolls. The Fund accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis, which may require the use of certain estimates by management, that may differ from actual.

Net investment income or loss (other than distribution fees which are charged directly to the respective class) and unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.

Dividends and Distributions: The Fund declares daily dividends from net investment income. Payment of dividends is made monthly. Distributions of net capital gains, if any, are made annually. Dividends and distributions are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles, and are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified amongst distributions in excess of net income, accumulated net realized gain or loss and paid-in-capital in excess of par, as appropriate.

Prudential Government Income Fund 33

Notes to Financial Statements

(Unaudited) continued

Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.

Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Note 2. Agreements

The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PIM is obligated to keep certain books and records of the Fund. PI pays for the services of PIM, the cost of compensation of officers and employees of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.

The management fee paid to PI is accrued daily and payable monthly at an annual rate of .50% of the Fund’s average daily net assets up to and including $1 billion, .45% of the Fund’s average daily net assets of the next $1 billion, .35% of the Fund’s average daily net assets of the next $1 billion, and .30% of the average daily net assets of the Fund in excess of $3 billion. The effective management fee rate was .50% for the six months ended August 31, 2013.

The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class R and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B, Class C and Class R shares pursuant to plans of distribution (the “Class A, B, C and R Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund.

34

Pursuant to the Class A, C and R Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, 1% and .75% of the average daily net assets of the Class A, C and R shares, respectively. For the six months ended August 31, 2013, PIMS contractually agreed to limit such fees to .25% and .50% of the average daily net assets of the Class A and R shares, respectively. Pursuant to the Class B Plan, the Fund compensates PIMS for distribution related activities at an annual rate of up to 1% of the average daily net assets of the Class B shares up to $3 billion, .80% of the next $1 billion of such assets and .50% of such assets in excess of $4 billion. The effective distribution fee rate for Class B was 1% for the six months ended August 31, 2013.

PIMS has advised the Fund that it has received $47,679 in front-end sales charges resulting from sales of Class A shares, for the six months ended August 31, 2013. From these fees, PIMS paid a substantial portion of such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.

PIMS has advised the Fund that for the six months ended August 31, 2013, it received $853, $10,396 and $2,228 in contingent deferred sales charges imposed upon redemptions by certain Class A, Class B, and Class C shareholders, respectively.

PI, PIM and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

Note 3. Other Transactions with Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

Prudential Investment Management, Inc., (“PIM”), an indirect, wholly-owned subsidiary of Prudential, is the Fund’s security lending agent. For the six months ended August 31, 2013, PIM has been compensated $12,325 for these services.

The Fund invests 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 (the “Core Funds”), each a portfolio of the Prudential Investment Portfolios 2 registered under the 1940 Act and managed by PI. Earnings from the Core Funds are disclosed on the Statement of Operations as affiliated dividend income.

Prudential Government Income Fund 35

Notes to Financial Statements

(Unaudited) continued

Note 4. Portfolio Securities

Purchases and sales of portfolio securities, excluding short-term investments, for the six months ended August 31, 2013, aggregated $3,672,052,239 and $3,716,662,359, respectively.

The average balance of dollar rolls outstanding during the six months ended August 31, 2013 was approximately $101,008,152. The amount of dollar rolls outstanding at August 31, 2013 was $61,612,326 (Principal $60,000,000), which was 11.5% of net assets.

Transactions in options written during the six months ended August 31, 2013, were as follows:

	Contracts			Premiums Received
Options outstanding at February 28, 2013		—		$	—
Options written		18,662,074			91,804
Options terminated in closing purchase transactions		(18,662,000	)		(66,535	)
Options expired		(74	)		(25,269	)
Options outstanding at August 31, 2013		—		$	—

Note 5. Distributions and Tax Information

The United States federal income tax basis of investments and net unrealized depreciation as of August 31, 2013, were as follows:

Tax Basis	$	747,890,442
Appreciation		5,535,036
Depreciation		(14,393,972	)
Net Unrealized Depreciation	$	(8,858,936	)

The book basis may differ from tax basis due to certain tax related adjustments.

36

Note 6. Capital

The Fund offers Class A, Class B, Class C, Class R and Class Z shares. Class A shares are sold with a front-end sales charge of up to 4.50% and all investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, including investors who purchase their shares through broker-dealers affiliated with Prudential. Class B shares are sold with a contingent deferred sales charge which declines from 5% to zero depending on the period of time the shares are held. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class C shares purchased are subject to a CDSC of 1% for 12 months from the date of purchase. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class R and Class Z shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.

Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock.

There are 2.5 billion shares of common stock, $.01 par value per share, divided into five classes, designated Class A, Class B, Class C, Class R and Class Z common stock, each of which consists of 500,000,000 authorized shares.

Prudential Government Income Fund 37

Notes to Financial Statements

(Unaudited) continued

Transactions in shares of common stock were as follows:

Class A	Shares			Amount
Six months ended August 31, 2013:
Shares sold		1,981,112		$	19,151,185
Shares issued in reinvestment of dividends		366,143			3,520,710
Shares reacquired		(4,768,150	)		(45,836,697	)
Net increase (decrease) in shares outstanding before conversion		(2,420,895	)		(23,164,802	)
Shares issued upon conversion from Class B and Class Z		74,056			716,744
Shares reacquired upon conversion into Class Z		(131,989	)		(1,283,014	)
Net increase (decrease) in shares outstanding		(2,478,828	)	$	(23,731,072	)
Year ended February 28, 2013:
Shares sold		4,383,056		$	43,961,434
Shares issued in reinvestment of dividends and distributions		2,277,474			22,670,866
Shares reacquired		(12,442,194	)		(124,667,454	)
Net increase (decrease) in shares outstanding before conversion		(5,781,664	)		(58,035,154	)
Shares issued upon conversion from Class B and Class Z		276,649			2,777,375
Shares reacquired upon conversion into Class Z		(39,837	)		(395,748	)
Net increase (decrease) in shares outstanding		(5,544,852	)	$	(55,653,527	)
Class B
Six months ended August 31, 2013:
Shares sold		29,015		$	280,779
Shares issued in reinvestment of dividends		3,695			35,612
Shares reacquired		(164,697	)		(1,579,970	)
Net increase (decrease) in shares outstanding before conversion		(131,987	)		(1,263,579	)
Shares reacquired upon conversion into Class A		(72,577	)		(703,186	)
Net increase (decrease) in shares outstanding		(204,564	)	$	(1,966,765	)
Year ended February 28, 2013:
Shares sold		186,445		$	1,873,120
Shares issued in reinvestment of dividends and distributions		39,722			395,571
Shares reacquired		(308,895	)		(3,095,138	)
Net increase (decrease) in shares outstanding before conversion		(82,728	)		(826,447	)
Shares reacquired upon conversion into Class A		(276,022	)		(2,775,593	)
Net increase (decrease) in shares outstanding		(358,750	)	$	(3,602,040	)

38

Class C	Shares			Amount
Six months ended August 31, 2013:
Shares sold		106,512		$	1,035,537
Shares issued in reinvestment of dividends		8,425			81,259
Shares reacquired		(573,400	)		(5,508,830	)
Net increase (decrease) in shares outstanding before conversion		(458,463	)		(4,392,034	)
Shares reacquired upon conversion into Class Z		(33,460	)		(319,498	)
Net increase (decrease) in shares outstanding		(491,923	)	$	(4,711,532	)
Year ended February 28, 2013:
Shares sold		665,793		$	6,686,130
Shares issued in reinvestment of dividends and distributions		81,973			816,566
Shares reacquired		(819,513	)		(8,202,504	)
Net increase (decrease) in shares outstanding before conversion		(71,747	)		(699,808	)
Shares reacquired upon conversion into Class Z		(6,825	)		(67,439	)
Net increase (decrease) in shares outstanding		(78,572	)	$	(767,247	)
Class R
Six months ended August 31, 2013
Shares sold		343,035		$	3,329,527
Shares issued in reinvestment of dividends		6,475			62,367
Shares reacquired		(381,150	)		(3,672,807	)
Net increase (decrease) in shares outstanding		(31,640	)	$	(280,913	)
Year ended February 28, 2013:
Shares sold		640,738		$	6,428,100
Shares issued in reinvestment of dividends and distributions		41,902			417,270
Shares reacquired		(525,706	)		(5,251,396	)
Net increase (decrease) in shares outstanding		156,934		$	1,593,974
Class Z
Six months ended August 31, 2013:
Shares sold		1,443,199		$	13,848,608
Shares issued in reinvestment of dividends		94,639			908,234
Shares reacquired		(3,442,074	)		(32,721,323	)
Net increase (decrease) in shares outstanding before conversion		(1,904,236	)		(17,964,481	)
Shares issued upon conversion from Class A and Class C		165,862			1,602,512
Shares reacquired upon conversion into Class A		(1,391	)		(13,558	)
Net increase (decrease) in shares outstanding		(1,739,765	)	$	(16,375,527	)
Year ended February 28, 2013:
Shares sold		3,477,516		$	34,696,730
Shares issued in reinvestment of dividends and distributions		506,295			5,030,993
Shares reacquired		(3,765,799	)		(37,621,082	)
Net increase (decrease) in shares outstanding before conversion		218,012			2,106,641
Shares issued upon conversion from Class A and Class C		46,770			463,187
Shares reacquired upon conversion into Class A		(180	)		(1,782	)
Net increase (decrease) in shares outstanding		264,602		$	2,568,046

Prudential Government Income Fund 39

Notes to Financial Statements

(Unaudited) continued

Note 7. Borrowing

The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period November 15, 2012 through November 14, 2013. The Funds pay an annualized commitment fee of .08% of the unused portion of the SCA. Prior to November 15, 2012, the Funds had another Syndicated Credit Agreement with substantially similar terms. Interest on any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.

The Fund did not utilize the SCA during the six months ended August 31, 2013.

40

Financial Highlights

(Unaudited)

Class A Shares
	Six Months Ended August 31,			Year Ended February 28/29,
	2013			2013			2012			2011			2010			2009
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$9.78			$10.01			$9.57			$9.39			$8.78			$8.94
Income (loss) from investment operations:
Net investment income		.07			.17			.22			.25			.28			.30
Net realized and unrealized gain (loss) on investment transactions		(.35	)		.12			.46			.20			.61			(.15	)
Total from investment operations		(.28	)		.29			.68			.45			.89			.15
Less Dividends and Distributions:
Dividends from net investment income		(.08	)		(.22	)		(.24	)		(.27	)		(.28	)		(.31	)
Distributions from net realized gains		-			(.30	)		-			-			-			-
Total dividends and distributions		(.08	)		(.52	)		(.24	)		(.27	)		(.28	)		(.31	)
Capital Contributions(e):		-			-			-			-	(f)		-			-
Net asset value, end of period		$9.42			$9.78			$10.01			$9.57			$9.39			$8.78
Total Return(a):		(2.82)%			2.87%			7.18%			4.79%			10.25%			1.73%
Ratios/Supplemental Data:
Net assets, end of period (000)		$428,375			$469,188			$535,682			$527,773			$559,817			$562,826
Average net assets (000)		$452,737			$511,930			$533,151			$557,516			$561,947			$608,533
Ratios to average net assets(b):
Expenses(c)		.95%	(g)		.93%			.94%			.93%			.90%			.94%
Net investment income		1.49%	(g)		1.73%			2.21%			2.67%			3.09%			3.48%
Portfolio turnover rate(d)		556%	(h)		1,251%			1,404%			1,277%			971%			2,216%

(a) 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 period reported and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

(b) Does not include expenses of the underlying portfolios in which the Fund invests.

(c) The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .25% of the average daily net assets of the Class A shares.

(d) The Fund accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate.

(e) The Fund received payments related to a former affiliate’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended February 28, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Less than $.005 per share.

(g) Annualized.

(h) Not annualized.

See Notes to Financial Statements.

Prudential Government Income Fund 41

Financial Highlights

(Unaudited) continued

Class B Shares
	Six Months Ended August 31,			Year Ended February 28/29,
	2013			2013			2012			2011			2010			2009
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$9.80			$10.03			$9.59			$9.41			$8.79			$8.95
Income (loss) from investment operations:
Net investment income		.02			.08			.14			.16			.20			.23
Net realized and unrealized gain (loss) on investment transactions		(.34	)		.13			.47			.22			.63			(.15	)
Total from investment operations		(.32	)		.21			.61			.38			.83			.08
Less Dividends and Distributions:
Dividends from net investment income		(.05	)		(.14	)		(.17	)		(.20	)		(.21	)		(.24	)
Distributions from net realized gains		-			(.30	)		-			-			-			-
Total dividends and distributions		(.05	)		(.44	)		(.17	)		(.20	)		(.21	)		(.24	)
Capital Contributions(d):		-			-			-			-	(e)		-			-
Net asset value, end of period		$9.43			$9.80			$10.03			$9.59			$9.41			$8.79
Total Return(a):		(3.29)%			2.11%			6.37%			4.01%			9.54%			.98%
Ratios/Supplemental Data:
Net assets, end of period (000)		$7,128			$9,408			$13,225			$14,454			$25,219			$38,126
Average net assets (000)		$8,296			$10,975			$12,988			$18,360			$30,299			$44,738
Ratios to average net assets(b):
Expenses		1.70%	(f)		1.68%			1.69%			1.68%			1.65%			1.69%
Net investment income		.74%	(f)		.98%			1.46%			1.92%			2.33%			2.73%
Portfolio turnover rate(c)		556%	(g)		1,251%			1,404%			1,277%			971%			2,216%

(a) 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 period reported and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

(b) Does not include expenses of the underlying portfolios in which the Fund invests.

(c) The Fund accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate.

(d) The Fund received payments related to a former affiliate’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended February 28, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(e) Less than $.005 per share.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.

42

Class C Shares
	Six Months Ended August 31,			Year Ended February 28/29,
	2013			2013			2012			2011			2010			2009
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$9.80			$10.03			$9.59			$9.41			$8.80			$8.96
Income (loss) from investment operations:
Net investment income		.04			.10			.15			.19			.24			.26
Net realized and unrealized gain (loss) on investment transactions		(.35	)		.11			.46			.19			.60			(.15	)
Total from investment operations		(.31	)		.21			.61			.38			.84			.11
Less Dividends and Distributions:
Dividends from net investment income		(.05	)		(.14	)		(.17	)		(.20	)		(.23	)		(.27	)
Distributions from net realized gains		-			(.30	)		-			-			-			-
Total dividends and distributions		(.05	)		(.44	)		(.17	)		(.20	)		(.23	)		(.27	)
Capital Contributions(e):		-			-			-			-	(f)		-			-
Net asset value, end of period		$9.44			$9.80			$10.03			$9.59			$9.41			$8.80
Total Return(a):		(3.19)%			2.11%			6.37%			4.10%			9.69%			1.23%
Ratios/Supplemental Data:
Net assets, end of period (000)		$14,875			$20,274			$21,535			$17,294			$18,375			$17,295
Average net assets (000)		$18,150			$21,678			$18,831			$20,013			$17,575			$12,733
Ratios to average net assets(b):
Expenses(c)		1.70%	(g)		1.68%			1.69%			1.60%			1.40%			1.44%
Net investment income		.73%	(g)		.97%			1.45%			1.99%			2.59%			2.96%
Portfolio turnover rate(d)		556%	(h)		1,251%			1,404%			1,277%			971%			2,216%

(a) 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 period reported and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

(b) Does not include expenses of the underlying portfolios in which the Fund invests.

(c) The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .75% of the average daily net assets of the Class C shares through June 30, 2010.

(d) The Fund accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate.

(e) The Fund received payments related to a former affiliate’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended February 28, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Less than $.005 per share.

(g) Annualized.

(h) Not annualized.

See Notes to Financial Statements.

Prudential Government Income Fund 43

Financial Highlights

(Unaudited) continued

Class R Shares
	Six Months Ended August 31, 2013			Year Ended February 28/29,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$9.80			$10.03			$9.58			$9.41			$8.79			$8.95
Income (loss) from investment operations:
Net investment income		.06			.15			.19			.23			.26			.28
Net realized and unrealized gain (loss) on investment transactions		(.36	)		.11			.48			.18			.62			(.15	)
Total from investment operations		(.30	)		.26			.67			.41			.88			.13
Less Dividends and Distributions:
Dividends from net investment income		(.07	)		(.19	)		(.22	)		(.24	)		(.26	)		(.29	)
Distributions from net realized gains		-			(.30	)		-			-			-			-
Total dividends and distributions		(.07	)		(.49	)		(.22	)		(.24	)		(.26	)		(.29	)
Capital Contributions(e):		-			-			-			-	(f)		-			-
Net asset value, end of period		$9.43			$9.80			$10.03			$9.58			$9.41			$8.79
Total Return(a):		(3.04)%			2.62%			7.01%			4.42%			10.09%			1.49%
Ratios/Supplemental Data:
Net assets, end of period (000)		$9,634			$10,316			$8,984			$6,131			$3,565			$2,028
Average net assets (000)		$10,473			$9,701			$7,400			$5,062			$2,868			$1,328
Ratios to average net assets(b):
Expenses(c)		1.20%	(g)		1.18%			1.19%			1.18%			1.15%			1.19%
Net investment income		1.23%	(g)		1.47%			1.94%			2.41%			2.84%			3.22%
Portfolio turnover rate(d)		556%	(h)		1,251%			1,404%			1,277%			971%			2,216%

(a) 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. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

(b) Does not include expenses of the underlying portfolios in which the Fund invests.

(c) The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .50% of the average daily net assets of the Class R shares.

(d) The Fund accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate.

(e) The Fund received payments related to a former affiliate’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended February 28, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Less than $.005 per share.

(g) Annualized.

(h) Not annualized.

See Notes to Financial Statements.

44

Class Z Shares
	Six Months Ended August 31, 2013			Year Ended February 28/29,
				2013			2012			2011			2010			2009
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$9.76			$9.99			$9.55			$9.37			$8.76			$8.92
Income (loss) from investment operations:
Net investment income		.08			.20			.24			.28			.30			.33
Net realized and unrealized gain (loss) on investment transactions		(.34	)		.11			.46			.19			.61			(.16	)
Total from investment operations		(.26	)		.31			.70			.47			.91			.17
Less Dividends and Distributions:
Dividends from net investment income		(.10	)		(.24	)		(.26	)		(.29	)		(.30	)		(.33	)
Distributions from net realized gains		-			(.30	)		-			-			-			-
Total dividends and distributions		(.10	)		(.54	)		(.26	)		(.29	)		(.30	)		(.33	)
Capital Contributions(d):		-			-			-			-	(e)		-			-
Net asset value, end of period		$9.40			$9.76			$9.99			$9.55			$9.37			$8.76
Total Return(a):		(2.70)%			3.13%			7.45%			5.06%			10.55%			1.98%
Ratios/Supplemental Data:
Net assets, end of period (000)		$75,794			$95,710			$95,314			$98,552			$95,895			$102,905
Average net assets (000)		$93,181			$95,810			$100,654			$99,126			$97,887			$106,949
Ratios to average net assets(b):
Expenses		.70%	(f)		.68%			.69%			.68%			.65%			.69%
Net investment income		1.74%	(f)		1.97%			2.46%			2.92%			3.34%			3.73%
Portfolio turnover rate(c)		556%	(g)		1,251%			1,404%			1,277%			971%			2,216%

(a) 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. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualize.

(b) Does not include expenses of the underlying portfolios in which the Fund invests.

(c) The Fund accounts for mortgage dollar roll transactions as purchases and sales which, as a result, can increase its portfolio turnover rate.

(d) The Fund received payments related to a former affiliate’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended February 28, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(e) Less than $.005 per share.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.

Prudential Government Income Fund 45

Approval of Advisory Agreements

The Fund’s Board of Directors

The Board of Directors (the “Board”) of Prudential Government Income Fund (the “Fund”)¹ consists of ten individuals, eight of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Directors”).² The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Director. The Board has established three standing committees: the Audit Committee, the Nominating and Governance Committee, and the Investment Committee. Each committee is chaired by, and composed of, Independent Directors.

Annual Approval of the Fund’s Advisory Agreements

As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with Prudential Investments LLC (“PI”) and the Fund’s subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). In considering the renewal of the agreements, the Board, including all of the Independent Directors, met on June 4-6, 2013 and approved the renewal of the agreements through July 31, 2014, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.

In advance of the meetings, the Board received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PI and PIM. Also, the Board considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups, as is further discussed below.

In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PI and the subadviser, the performance of the Fund, the profitability of PI and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders as the Fund’s assets grow. In their deliberations, the Directors did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund. In connection with its deliberations,

¹  Prudential Government Income Fund is a series of Prudential Investment Portfolios, Inc. 14.

²  Ms. Alberding and Messrs. Hartstein and Quinn were elected to the Board effective September 1, 2013.

Prudential Government Income Fund

Approval of Advisory Agreements (continued)

the Board considered information provided by PI throughout the year at regular Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on June 4-6, 2013.

meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on June 4-6, 2013.

The Directors determined that the overall arrangements between the Fund and PI, which serves as the Fund’s investment manager pursuant to a management agreement, and between PI and PIM, which serves as the Fund’s subadviser pursuant to the terms of a subadvisory agreement with PI, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment.

The material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.

Nature, Quality and Extent of Services

The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PI and PIM. The Board considered the services provided by PI, including but not limited to the oversight of the subadviser for the Fund, as well as the provision of fund recordkeeping, compliance, and other services to the Fund. With respect to PI’s oversight of the subadviser, the Board noted that PI’s Strategic Investment Research Group (“SIRG”), which is a business unit of PI, is responsible for monitoring and reporting to PI’s senior management on the performance and operations of the subadviser. The Board also considered that PI pays the salaries of all of the officers and non-independent Directors of the Fund. The Board also considered the investment subadvisory services provided by PIM, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PI’s evaluation of the subadviser as well as PI’s recommendation, based on its review of the subadviser, to renew the subadvisory agreement.

The Board considered the qualifications, backgrounds and responsibilities of PI’s senior management responsible for the oversight of the Fund and PIM, and also considered the qualifications, backgrounds and responsibilities of PIM’s portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PI’s and PIM’s organizational structure, senior management, investment operations, and other relevant information pertaining to both PI and PIM. The Board also noted that it received favorable

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compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to both PI and PIM. The Board noted that PIM is affiliated with PI.

The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PI and the subadvisory services provided to the Fund by PIM, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PI and PIM under the management and subadvisory agreements.

Costs of Services and Profits Realized by PI

The Board was provided with information on the profitability of PI and its affiliates in serving as the Fund’s investment manager. The Board discussed with PI the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the adviser’s capital structure and cost of capital. The Board separately considered information regarding the profitability of the subadviser, an affiliate of PI. Taking these factors into account, the Board concluded that the profitability of PI and its affiliates in relation to the services rendered was not unreasonable.

Economies of Scale

The Board noted that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as net assets increase, but at the current level of net assets, the Fund does not realize the effect of those rate reductions. The Board received and discussed information concerning whether PI realizes economies of scale as the Fund’s net assets grow beyond current levels. The Board took note that the Fund’s fee structure would result in benefits to Fund shareholders when (and if) net assets reach the levels at which the fee rate is reduced. These benefits will accrue whether or not PI is then realizing any economies of scale. The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PI’s costs are not specific to any individual funds, but rather are incurred across a variety of products and services.

Other Benefits to PI and PIM

The Board considered potential ancillary benefits that might be received by PI and PIM and their affiliates as a result of their relationship with the Fund. The Board

Prudential Government Income Fund

Approval of Advisory Agreements (continued)

concluded that potential benefits to be derived by PI included fees received by affiliates of PI for serving as the Fund’s securities lending agent, transfer agency fees received by the Fund’s transfer agent (which is affiliated with PI), as well as benefits to its reputation or other intangible benefits resulting from PI’s association with the Fund. The Board concluded that the potential benefits to be derived by PIM included its ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to its reputation. The Board concluded that the benefits derived by PI and PIM were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.

Performance of the Fund / Fees and Expenses

The Board considered certain additional specific factors and made related conclusions relating to the historical performance of the Fund for the one-, three-, five- and ten-year periods ended December 31, 2012.

The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended February 29, 2012. The Board considered the management fee for the Fund as compared to the management fee charged by PI to other funds and the fee charged by other advisers to comparable mutual funds in a Peer Group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.

The mutual funds included in the Peer Universe (the Lipper General U.S. Government Funds Performance Universe) and the Peer Group were objectively determined by Lipper Inc. (“Lipper”), an independent provider of mutual fund data. The comparisons placed the Fund in various quartiles, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).

The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth gross performance comparisons (which do not reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the Peer Universe, actual management fees with the Peer Group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the Peer Group, each of which were key factors considered by the Board.

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Performance	1 Year	3 Years	5 Years	10 Years
	1st Quartile	1st Quartile	1st Quartile	2nd Quartile
Actual Management Fees: 3rd Quartile
Net Total Expenses: 2nd Quartile

• The Board noted that the Fund outperformed its benchmark index over all periods.

• The Board concluded that, in light of the Fund’s competitive performance, it would be in the best interests of the Fund and its shareholders to renew the agreements.

• The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided.

*    *    *

After full consideration of these factors, the Board concluded that the approval of the agreements was in the best interests of the Fund and its shareholders.

Prudential Government Income Fund

n    MAIL	n    TELEPHONE	n    WEBSITE
Gateway Center Three 100 Mulberry Street Newark, NJ 07102	(800) 225-1852	www.prudentialfunds.com

PROXY VOTING

The Board of Directors of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.

DIRECTORS

Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Douglas H. McCorkindale • Stephen P. Munn • Stuart S. Parker • James E. Quinn • Richard A. Redeker • Robin B. Smith • Stephen G. Stoneburn

OFFICERS

Stuart S. Parker, President • Scott E. Benjamin, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Bruce Karpati, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Amanda S. Ryan, Assistant Secretary • Andrew R. French, Assistant Secretary • M. Sadiq Peshimam, Assistant Treasurer • Peter Parrella, Assistant Treasurer

MANAGER	Prudential Investments LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
INVESTMENT SUBADVISER	Prudential Investment Management, Inc.	Gateway Center Two 100 Mulberry Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
CUSTODIAN	The Bank of New York Mellon	One Wall Street New York, NY 10286
TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 9658 Providence, RI 02940
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	KPMG LLP	345 Park Avenue New York, NY 10154
FUND COUNSEL	Willkie Farr & Gallagher LLP	787 Seventh Avenue New York, NY 10019

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.

E-DELIVERY

To receive your mutual fund documents online, go to www.prudentialfunds.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.

SHAREHOLDER COMMUNICATIONS WITH DIRECTORS

Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Government Income Fund, Prudential Investments, Attn: Board of Directors, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee.

AVAILABILITY OF PORTFOLIO SCHEDULE

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month.

Mutual Funds:

ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE

PRUDENTIAL GOVERNMENT INCOME FUND

SHARE CLASS	A	B	C	R	Z
NASDAQ	PGVAX	PBGPX	PRICX	JDRVX	PGVZX
CUSIP	74439V107	74439V206	74439V305	74439V503	74439V404

MF128E2    0252515-00001-00

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

PRUDENTIAL FLOATING RATE INCOME FUND

SEMIANNUAL REPORT ^· AUGUST 31, 2013

Fund Type

Floating Rate

Objective

Primary objective is to seek to maximize current income. Secondary objective is to seek capital appreciation when consistent with primary objective.

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.

The accompanying financial statements as of August 31, 2013, were not audited and, accordingly, no auditor’s opinion is expressed on them.

Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS). Prudential Fixed Income is a unit of Prudential Investment Management, Inc. (PIM), a registered investment adviser. PIMS and PIM are Prudential Financial companies. ^© 2013 Prudential Financial, Inc., and its related entities. Prudential Investments, Prudential, the Prudential logo, Bring Your Challenges, and the Rock symbol are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.

October 15, 2013

Dear Shareholder:

We hope you find the semiannual report for the Prudential Floating Rate Income Fund informative and useful. The report covers performance for the six-month period that ended August 31, 2013.

We recognize that ongoing market volatility may make it a difficult time to be an investor. We continue to believe a prudent response to uncertainty is to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.

Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. Keep in mind, however, that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.

Prudential Investments^® is dedicated to helping you solve your toughest investment challenges—whether it’s capital growth, reliable income, or protection from market volatility and other risks. We offer the expertise of Prudential Financial’s affiliated asset managers* that strive to be leaders in a broad range of funds to help you stay on course to the future you envision. They also manage money for major corporations and pension funds around the world, which means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.

Thank you for choosing the Prudential Investments family of funds.

Sincerely,

Stuart S. Parker, President

Prudential Floating Rate Income Fund

*Most of Prudential Investments’ equity funds are advised by Jennison Associates LLC, Quantitative Management Associates LLC (QMA), or Prudential Real Estate Investors. Prudential Investments’ fixed income and money market funds are advised by Prudential Investment Management, Inc. (PIM) through its Prudential Fixed Income unit. Jennison Associates, QMA, and PIM are registered investment advisers and Prudential Financial companies. Prudential Real Estate Investors is a unit of PIM.

Prudential Floating Rate Income Fund 1

Your Fund’s Performance (Unaudited)

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852.

Cumulative Total Returns (Without Sales Charges) as of 8/31/13
	Six Months			One Year			Since Inception
Class A		1.65	%		5.48	%	11.82% (3/30/11)
Class C		1.26			4.69		9.89    (3/30/11)
Class Z		1.78			5.74		12.69    (3/30/11)
Credit Suisse Leveraged Loan Index		2.40			6.66		12.83    (3/30/11)
Lipper Flexible Loan Participation Funds Average		1.94			5.98		11.83    (3/30/11)
Average Annual Total Returns (With Sales Charges) as of 9/30/13
				One Year			Since Inception
Class A					1.18	%	3.25% (3/30/11)
Class C					2.78		3.87    (3/30/11)
Class Z					4.93		4.95    (3/30/11)
Credit Suisse Leveraged Loan Index					5.83		5.07    (3/30/11)
Lipper Flexible Loan Participation Funds Average					5.12		4.67    (3/30/11)

Source: Prudential Investments LLC and Lipper Inc.

Inception returns are provided for any share class with less than 10 calendar years of returns. The returns in the tables reflect the share class expense structure in effect at the close of the fiscal period. The Fund’s returns do not reflect the deduction of income taxes or an individual’s investment. Taxes may reduce your actual investment returns or income or gains paid by the fund or any gains you may realize if you sell your shares.

2 Visit our website at www.prudentialfunds.com

The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.

	Class A	Class C	Class Z
Maximum initial sales charge	3.25% of the public offering price	None	None
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or sale proceeds)	1% on sales of $1 million or more made within 12 months of purchase	1% on sales made within 12 months of purchase	None
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets)	.30% (.25% currently)	1%	None

Benchmark Definitions

Credit Suisse Leveraged Loan Index

The Credit Suisse Leveraged Loan Index is an unmanaged index that represents the investable universe of the dollar-denominated leveraged loan market.

Lipper Flexible Loan Participation Funds Average

The Lipper Flexible Loan Participation Funds Average (Lipper Average) is based on the average return of all mutual funds in the Lipper Loan Participation category.

Investors cannot invest directly in an index or average. The returns for the Index would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes. The Since Inception returns for the Credit Suisse Leveraged Loan Index and the Lipper Average are measured from the closest month-end to inception date, and not from the Fund’s actual inception date.

Distributions and Yields as of 8/31/13
	Total Distributions Paid for Six Months		30-Day SEC Yield
Class A	$	0.17		2.85	%
Class C		0.14		2.19
Class Z		0.19		3.19

Prudential Floating Rate Income Fund 3

Your Fund’s Performance (continued)

Five Largest Holdings expressed as a percentage of net assets as of 8/31/13
Valeant Pharmaceuticals International, Inc., Healthcare & Pharmaceutical	1.02	%
Gardner Denver Inc., Capital Goods	0.87
Generic Drug Holdings, Healthcare & Pharmaceutical	0.86
Allflex Holdings III, Inc., Capital Goods	0.81
CDW Corp., Technology	0.80
Holdings reflect only long-term investments and are subject to change.

Credit Quality* expressed as a percentage of net assets as of 8/31/13
Baa	1.2	%
Ba	33.8
B	51.8
Caa or Lower	2.5
Not Rated**	16.8
Total Investments	106.1
Liabilities in excess of other assets	–6.1
Net Assets	100.0	%

*Source: Moody’s rating, defaulting to S&P when not rated by Moody’s.

**Approximately 16.8% of Not Rated is invested in an affiliated money market mutual fund.

Credit Quality is subject to change.

4 Visit our website at www.prudentialfunds.com

Fees and Expenses (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on March 1, 2013, at the beginning of the period, and held through the six-month period ended August 31, 2013. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

Actual Expenses

The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses should not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in

Prudential Floating Rate Income Fund 5

Fees and Expenses (continued)

amount, or may be waived, based on your total account balance or the number of Prudential Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Prudential Floating Rate Income Fund		Beginning Account Value March 1, 2013		Ending Account Value August 31, 2013		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During  the Six-Month Period*
Class A	Actual	$	1,000.00	$	1,016.50		1.20	%	$	6.10
	Hypothetical	$	1,000.00	$	1,019.16		1.20	%	$	6.11
Class C	Actual	$	1,000.00	$	1,012.60		1.95	%	$	9.89
	Hypothetical	$	1,000.00	$	1,015.38		1.95	%	$	9.91
Class Z	Actual	$	1,000.00	$	1,017.80		0.95	%	$	4.83
	Hypothetical	$	1,000.00	$	1,020.42		0.95	%	$	4.84

*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 184 days in the six-month period ended August 31, 2013, and divided by the 365 days in the Fund’s fiscal year ending February 28, 2014 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.

6 Visit our website at www.prudentialfunds.com

The Fund’s annualized expense ratios for the six-month period ended August 31, 2013 are as follows:

Class	Gross Operating Expenses	Net Operating Expenses
A	1.53%	1.20%
C	2.23%	1.95%
Z	1.23%	0.95%

Net operating expenses shown above reflect fee waivers and/or expense reimbursements. Additional information on Fund expenses and any fee waivers and/or expense reimbursements can be found in the “Financial Highlights” tables in this report and in the Notes to the Financial Statements in this report.

Prudential Floating Rate Income Fund 7

Portfolio of Investments

as of August 31, 2013 (Unaudited)

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS    89.3%
BANK LOANS(a)    80.1%
Aerospace & Defense    1.5%
Booz Allen & Hamilton, Inc.	Ba3	3.750%		07/31/19		248	$	247,918
Dundee Holding, Inc.	B2	5.500		04/09/20		499		503,114
Tasc, Inc.	B1	4.500		12/18/15		247		245,310
Transdigm, Inc.	Ba3	3.750		02/28/20		800		798,571
								1,794,913
Airlines    1.0%
American Airlines, Inc.	D(b)	4.750		06/27/19		590		582,773
United Airlines	Ba2	4.000		04/01/19		324		325,079
US Airways, Inc.	B2	4.250		05/23/19		350		345,406
								1,253,258
Automotive    1.3%
ASP HHI Acquisition Co., Inc.	B2	5.000		10/05/18		225		226,588
Chrysler Group LLC	Ba1	4.250		05/24/17		761		769,752
KAR Auctions Services, Inc.	Ba3	3.750		05/19/17		146		146,604
Schaeffler AG	Ba3	4.250		01/27/17		450		451,233
								1,594,177
Brokerage    0.9%
BATS Global Markets, Inc.	B1	7.000		12/14/18		178		177,944
Cetera Financial Group, Inc.	B3	6.500		08/07/19		300		298,500
KCG Holdings, Inc.	Ba3	5.750		12/05/17		450		448,875
VFH Parent LLC	Ba2	5.775		07/08/16		226		227,172
								1,152,491
Building Materials & Construction    2.0%
Apex Tool Group, LLC	B1	4.500		01/31/20		499		499,919
Armstrong World Industries, Inc.	B1	3.500		03/16/20		200		198,902
CHI Overhead Doors, Inc.	B3	5.500		03/18/19		197		196,785
Continental Building Products LLC	B1	4.500		08/28/20		500		499,166
QS0001 Corp./Tomkins Air Distribution	B1	5.000		11/09/18		249		250,512
Summit Materials LLC	B1	5.000		01/30/19		272		272,255
Wilsonart LLC	B2	4.000		10/31/19		499		494,760
								2,412,299

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 9

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Cable    3.5%
Bragg Communications, Inc.	Ba3	3.500%		02/28/18		199	$	199,239
Cequel Comm LLC	Ba2	3.500		02/14/19		499		498,735
Charter Communications Operating LLC	Baa3	3.000		07/01/20		500		494,531
CSC Holdings LLC	Baa3	2.682		04/17/20		500		493,750
Media Gen, Inc.	B1	0.500		07/31/20		600		599,994
Nine Entertainment Co. Pty Ltd.	Ba2	3.504		02/05/20		499		495,009
Virgin Media Investment Holdings Ltd.	Ba3	3.500		06/08/20		500		497,050
WideOpenWest Finance LLC	B1	4.750		04/01/19		494		497,107
Yankee Cable Acquisition LLC	B1	5.250		03/01/20		546		547,901
								4,323,316
Capital Goods    7.4%
ADS Waste Holdings, Inc.	B1	4.250		10/09/19		423		423,668
Allflex Holdings III, Inc.	B1	4.250		07/17/20		1,000		1,000,313
Brand Energy & Infrastructure Services	B2	6.250		10/23/18		248		250,683
Brand Energy & Infrastructure Services	Caa2	11.000		10/23/19		200		204,167
CeramTec GmbH	Ba3	4.250		08/30/20		600		599,250
Colfax Corp.	Ba2	3.250		01/11/19		249		248,491
CPM Acquisition Corp.	B1	6.250		08/29/17		720		720,912
Gardner Denver Inc	B1	4.250		07/30/20		1,075		1,069,381
Generac Power Systems, Inc.	B2	3.500		05/31/20		127		125,366
Hupah Finance, Inc.	B1	4.500		01/21/19		622		625,689
Husky Injection Molding Systems Ltd.	Ba3	4.250		06/30/18		223		222,696
Laureate Education, Inc.	B1	5.250		06/15/18		249		249,123
MX Holdings US, Inc.	B2	4.500		08/16/20		375		377,344
Pelican Products, Inc.	B1	7.000		07/11/18		125		124,740
Pro Mach, Inc.	B2	5.000		07/06/17		344		345,684
RBS Global, Inc./Rexnord LLC	B2	4.000		08/21/20		750		743,162
Silver II Borrower S.C.A.	B1	4.000		12/13/19		498		494,002
Synagro Infrastructure Co., Inc.	B3	6.250		08/21/20		250		245,625
TriNet HR Corp.	B1	5.000		08/13/20		250		248,125
Unifrax I LLC (original cost $129,932; purchased 12/06/11)(c)(d)	B2	4.250		11/28/18		133		132,729

See Notes to Financial Statements.

10

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Capital Goods (cont’d.)
W3 Co.	B2	5.750%		03/13/20		200	$	200,747
WCA Waste Corp.	B1	4.000		03/23/18		99		98,750
Wesco Distribution, Inc.	Ba3	4.500		12/12/19		245		246,454
WireCo WorldGroup, Inc.	Ba2	6.000		02/15/17		149		148,875
								9,145,976
Chemicals    4.8%
Arysta LifeScience SPC LLC	Ba3	4.500		05/29/20		650		650,000
Arysta LifeScience SPC LLC	Caa1	8.250		11/30/20		125		124,844
Cyanco Intermediate Corp.	B2	5.500		05/01/20		150		150,937
Emerald Performance Materials LLC	B1	6.750		05/18/18		198		199,485
Houghton International, Inc.	B1	4.000		12/20/19		498		495,633
Macdermid, Inc.	Ba3	4.000		06/08/20		250		249,687
Macdermid, Inc.	Caa1	7.750		12/07/20		150		151,500
Nexeo Solutions LLC	B2	5.000		09/08/17		293		290,317
Nusil Technology LLC(c)	B1	5.250		04/07/17		203		199,171
Oxea Fin LLC	B1	4.250		01/15/20		500		498,750
Oxea Fin LLC	Caa1	8.250		06/06/20		250		248,750
Royal Adhesives & Sealants LLC	B1	5.500		07/31/18		300		302,625
Tata Chemicals NA, Inc.	Ba3	3.750		08/07/20		750		748,750
Tronox Pigments Netherlands BV	Ba2	4.500		03/19/20		541		545,776
Univar, Inc.	B2	5.000		06/30/17		243		237,633
U.S. Coatings Acquistion, Inc.	B1	4.750		02/03/20		748		752,427
								5,846,285
Consumer    4.1%
Bombardier Recreational Products, Inc.	B1	4.000		01/30/19		377		376,554
Bright Horizons Family Solutions	B1	4.000		01/30/20		224		224,211
Fender Musical Instruments Corp.	B2	5.750		04/03/19		100		99,999
Huish Detergents, Inc.	B1	5.500		03/23/20		499		481,294
Party City Holdings, Inc.(c)	B1	4.250		07/29/19		298		297,737
Prestige Brands Holdings, Inc.	Ba3	3.750		01/31/19		241		242,033
Revlon Consumer Products Corp.	Ba2	4.000		08/19/19		190		190,081
Serta Simmons Holdings LLC	B2	5.000		10/01/19		498		498,744
ServiceMaster Co.	B1	4.440		01/31/17		500		485,250
Spectrum Brands, Inc.	Ba3	3.000		09/11/17		550		549,537
Spectrum Brands, Inc.	Ba3	3.500		08/13/19		300		299,847

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 11

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Consumer (cont’d.)
SRAM Corp.	B1	4.018%		04/10/20		342	$	340,123
Tempur-Pedic International, Inc.	Ba3	3.500		03/18/20		426		421,053
Travelport LLC	B1	6.250		06/26/19		200		201,833
Water Pik, Inc.	B(b)	5.750		07/08/20		250		245,313
Wolverine Worldwide, Inc.	Ba2	4.160		10/09/19		136		136,631
								5,090,240
Electric    2.0%
AES Corp. (The)	Ba1	3.750		06/01/18		498		500,920
Dynegy, Inc.	B1	4.000		04/23/20		92		91,615
Freif North American Power I LLC	Ba3	4.750		03/29/19		237		236,636
Gim Channelview Cogeneration LLC	Ba3	4.250		05/08/20		140		139,825
Intergen NV	B1	5.500		06/15/20		525		516,469
Star West Generation LLC	Ba3	4.250		03/13/20		499		502,491
TPF Generation Holdings LLC	B2	4.750		12/31/17		425		429,250
								2,417,206
Energy - Other    2.0%
Drillships Financial Holding, Inc.	B2	5.500		07/15/16		325		327,437
EP Energy LLC	Ba3	4.500		04/30/19		103		102,803
Exco Resources Inc	Ba3	5.000		08/19/19		350		346,500
Frac Tech Services LLC	B3	8.500		05/06/16		249		243,646
HGIM Corp.	B1	5.500		06/18/20		125		125,312
Pacific Drilling SA	B1	4.500		06/01/18		525		526,969
Pilot Travel Centers LLC	Ba2	3.750		03/30/18		500		498,750
Power Buyer LLC	B2	3.250		05/06/20		39		38,306
Power Buyer LLC	B2	4.250		05/06/20		311		307,222
								2,516,945
Foods    3.3%
AdvancePierre Foods, Inc.	B1	5.750		07/10/17		249		251,030
Albertson’s, LLC	B1	4.250		03/21/16		151		151,541
Albertson’s, LLC	B1	4.750		03/21/19		98		98,512
ARAMARK Corp.	B1	4.000		08/22/19		250		251,406
Bellisio Foods, Inc.	B2	4.526		08/01/19		375		373,548
California Pizza Kitchen, Inc.	B2	5.250		03/29/18		150		148,690
Del Monte Foods Co.	B1	4.000		03/08/18		465		464,550
DS Waters of America, Inc.	Ba3	5.250		08/31/20		175		175,656

See Notes to Financial Statements.

12

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Foods (cont’d.)
GFA Brands, Inc./UHF Acquisition Corp.	B1	5.000%		07/09/20		250	$	250,156
H.J. Heinz Co.	Ba2	3.500		06/08/20		750		753,750
Landry’s Restaurants, Inc.	Ba3	4.750		04/24/18		246		247,167
Michael Foods, Inc.	Ba3	4.250		02/25/18		135		136,429
Mill US Acquisition, LLC	B1	4.750		07/03/20		175		173,141
PF Changs China Bistro, Inc.(c)	Ba3	5.250		06/22/19		74		75,275
Pinnacle Foods Finance LLC	Ba3	3.250		04/29/20		289		286,021
Wendy’s International, Inc.	B1	3.250		05/15/19		171		170,598
								4,007,470
Gaming    3.0%
Affinity Gaming LLC	Ba2	5.500		11/09/17		120		121,489
Bally Technologies, Inc.	Ba3	0.000		06/30/21		625		623,906
Boyd Gaming Corp.	Ba3	4.000		08/14/20		500		501,094
Caesars Entertainment Operating Co., Inc.	B3	5.434		01/29/18		190		169,836
Cannery Casino Resorts LLC	B2	6.000		10/02/18		244		243,679
CCM Merger, Inc.	B2	5.000		03/01/17		472		474,957
Global Cash Access, Inc.	B1	4.000		03/01/16		60		60,127
Pinnacle Entertainment, Inc.	Ba2	3.750		08/13/20		500		501,550
Station Casinos LLC	B2	5.000		03/02/20		299		301,307
Yonkers Racing Corp.	Ba3	4.250		08/20/19		500		497,500
Yonkers Racing Corp.	B3	8.750		08/20/20		150		148,875
								3,644,320
Healthcare & Pharmaceutical    8.2%
Alere, Inc.	Ba3	4.250		06/30/17		222		222,882
Alliance HealthCare Services, Inc.	Ba3	4.250		06/03/19		750		750,000
Apria Healthcare Group, Inc.	B2	6.750		04/06/20		374		376,396
BioScrip, Inc.	B2	6.500		07/31/20		501		506,563
Boston Luxembourg III SARL	Ba3	4.000		08/28/19		250		250,312
Catalent Pharma Solutions, Inc.	Ba3	4.250		09/15/17		395		396,496
Catalent Pharma Solutions, Inc.	Caa1	6.500		12/29/17		250		250,781
Emergency Medical Services Corp.	B1	4.000		05/25/18		465		464,971
Generic Drug Holdings	B1	5.000		08/31/20		1,048		1,054,375
Grifols, Inc.	Ba1	4.250		06/01/17		488		490,754
HCA, Inc.	BB(b)	2.932		05/01/18		750		749,062
HCR Healthcare LLC	B1	5.000		04/06/18		193		188,687

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 13

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Healthcare & Pharmaceutical (cont’d.)
Hologic, Inc.	Ba2	3.750%		08/01/19		436	$	438,074
IASIS Healthcare Corp.	Ba3	4.500		05/03/18		494		496,239
MModal, Inc.	B1	7.500		08/17/19		334		324,980
Multiplan, Inc.	Ba2	4.000		08/26/17		242		243,008
One Call Medical, Inc.	Ba3	5.500		08/19/19		200		200,500
Par Pharmaceutical Cos., Inc.(c)	B1	4.250		09/28/19		397		395,020
RadNet, Inc.	Ba3	4.253		10/10/18		298		297,564
Select Medical Corp.	Ba2	4.002		06/01/18		116		115,721
Truven Health Analytics, Inc.	Ba3	4.500		06/06/19		99		99,188
Valeant Pharmaceuticals International, Inc.	Ba1	4.500		08/05/20		1,244		1,250,687
Vanguard Health Holding Co. LLC	Ba2	3.750		01/29/16		274		274,141
Warner Chilcott Corp.	Ba3	4.250		03/15/18		187		186,934
								10,023,335
Insurance    1.4%
AmWINS Group, Inc	B1	5.000		09/06/19		249		249,434
Asurion LLC	Ba2	3.500		07/08/20		259		247,973
Asurion LLC	Ba2	4.500		05/24/19		483		476,796
CCC Information Services, Inc.	B1	4.000		12/20/19		324		324,186
Sedgwick Claims Management Services, Inc.	B1	4.250		06/12/18		375		375,703
								1,674,092
Lodging    0.9%
Four Seasons Holdings, Inc.	B1	4.250		06/29/20		600		606,000
Playa Resorts Holding BV	B2	4.750		08/09/19		450		451,688
								1,057,688
Media & Entertainment    6.8%
AMC Entertainment, Inc.	Ba2	3.500		04/30/20		499		498,594
Audio Visual Services Group, Inc.	B1	6.750		11/09/18		347		350,849
Clear Channel Communcations, Inc.	Caa1	3.832		01/29/16		500		465,834
Crown Media Holdings, Inc.	Ba2	4.000		07/16/18		82		82,109
Emerald Expositions Holding, Inc.	B2	5.500		06/17/20		375		376,641
EMI Group North America Holdings, Inc.	Ba3	4.250		06/29/18		347		348,246
Entravision Communications Corp.	B2	3.500		05/29/20		250		246,875

See Notes to Financial Statements.

14

Description	Moody’s Ratings†	Interest Rate			Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Media & Entertainment (cont’d.)
FoxCo Acquisition Sub LLC	B2		5.500	%		07/14/17		348	$	349,067
Getty Images, Inc.	B1		4.750			10/18/19		498		478,999
Granite Broadcasting Corp.	B2		6.750			05/23/18		92		92,527
Gray Television, Inc.	B2		4.750			10/14/19		241		242,045
Great Wolf Resorts, Inc.	B3		4.500			08/06/20		300		299,250
Intelsat Jackson Holdings SA	Ba3		4.250			04/02/18		541		544,465
Kasima LLC	Baa2		3.250			05/17/21		500		497,708
Live Nation Entertainment, Inc.	Ba3		3.500			08/17/20		350		350,000
Mood Media Corp.	Ba2		7.000			05/06/18		44		44,125
NEP/NCP Holdco, Inc.	B1		4.750			01/22/20		498		499,055
NEP/NCP Holdco, Inc.	Caa1		9.500			07/22/20		57		58,429
RentPath, Inc.	B2		6.250			05/29/20		325		319,719
Salem Communications Corp.	B2		4.500			03/13/20		148		148,678
SuperMedia, Inc.	Caa1		11.600			12/30/16		459		357,987
Telesat LLC	Ba3		3.500			03/28/19		396		396,008
Tribune Co.	Ba3		4.000			12/31/19		473		473,807
TWCC Holding Corp.	B3		7.000			06/26/20		175		179,375
Univision Communications, Inc.	B2		4.500			03/01/20		399		397,606
WMG Acquisition Corp.	Ba3		3.750			07/01/20		275		274,828
										8,372,826
Metals & Mining    2.4%
Alpha Natural Resources, Inc.	Ba1		3.500			05/22/20		499		477,909
Arch Coal, Inc.	Ba3		5.750			05/16/18		371		359,534
Atlas Iron Ltd.	B2		8.750			12/11/17		199		196,264
Fairmount Minerals Ltd.	B1		4.262			03/15/17		100		99,969
Fairmount Minerals Ltd.	B1		5.000			09/05/19		250		250,156
FMG Resources (August 2006) Pty. Ltd.	Ba1		5.250			10/18/17		248		248,780
JMC Steel Group, Inc.	B1		4.750			04/01/17		246		245,919
Murray Energy Corp.	Ba3		4.750			05/24/19		250		249,375
Oxbow Carbon & Minerals LLC	Ba3		4.250			07/19/19		200		200,750
Oxbow Carbon LLC	B2		8.000			01/17/20		225		227,250
Phoenix Services International LLC	B1		7.750			06/30/17		100		100,246
SunCoke Energy, Inc.	Ba1		4.000			07/26/18		53		52,819
Walter Energy, Inc.	B2		6.750			04/02/18		288		272,954
										2,981,925

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 15

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Non-Captive Finance    2.5%
Altisource Portfolio Solutions	B1	5.750%		11/27/19		349	$	350,432
Flying Fortress, Inc.	Ba2	3.500		06/30/17		271		270,833
Guggenheim Partners Investment Management	Ba2	4.250		07/22/20		375		378,047
HarbourVest Partners LLC	Ba3	4.750		11/21/17		235		235,768
ION Trading Technologies Ltd.	B2	4.500		05/22/20		250		249,896
iStar Financial, Inc.	B1	4.500		10/15/17		216		216,385
Mondrian Investment Partners Ltd.	Ba2	4.000		03/09/20		66		66,085
National Financial Partners Corp.	B2	5.250		07/01/20		250		250,781
RBS Worldpay, Inc.	Ba3	4.750		11/29/19		475		476,188
SNL Financial LC	B2	5.500		10/23/18		369		368,608
StoneRiver Holdings, Inc.	B1	4.500		11/30/19		200		198,000
								3,061,023
Other Industry    2.9%
Acosta, Inc.	B1	5.000		03/02/18		200		200,597
AlixPartners LLP	B1	5.000		07/10/20		500		502,870
Alliance Laundry Holdings LLC	B2	9.500		12/10/19		205		206,080
Expert Global Solutions, Inc.	Ba3	8.500		04/03/18		148		150,212
GCA Services Group, Inc.	B1	5.250		11/01/19		100		99,570
Genpact International, Inc.	Ba2	3.500		08/30/19		500		500,000
ISS A/S	Ba3	3.750		04/30/18		650		649,391
Spin Holdco, Inc.	B2	4.250		11/14/19		175		175,350
USIC Holdings, Inc.	B2	4.750		07/10/20		375		375,187
Valleycrest Cos. LLC	B3	5.500		06/13/19		250		249,609
West Corp.	Ba3	3.750		06/30/18		398		397,683
								3,506,549
Packaging    1.1%
BWAY Holding Co. (original cost $496,256; purchased 10/25/12 - 01/15/13)(c)(d)	B1	4.500		08/06/17		498		501,231
Exopack LLC	B2	5.000		05/31/17		245		246,838
Pact Group USA, Inc.	Ba3	3.750		05/29/20		125		123,985
Reynolds Group Holdings, Inc.	B1	4.750		09/30/18		261		262,864
Tricorbraun, Inc.(c)	B1	4.000		05/03/18		248		247,706
								1,382,624

See Notes to Financial Statements.

16

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Paper    0.3%
Appvion, Inc.	Ba3	6.750%		06/28/19		275	$	273,625
Expera Specialty Solutions LLC	Caa1	7.500		12/26/18		150		149,625
								423,250
Pipelines & Other    0.6%
Atlas Energy LP	B3	6.500		07/31/19		500		506,850
EP Energy LLC	Ba3	3.500		05/24/18		200		198,875
Ruby Western Pipeline Holdings LLC	Ba2	3.500		03/27/20		97		96,825
								802,550
Real Estate    0.8%
CBRE Services	Ba1	2.937		03/26/21		449		448,501
Realogy Corp.	Ba3	4.433		10/10/16		15		14,821
Realogy Corp.	Ba3	4.500		03/05/20		249		250,622
Starwood Property Trust, Inc.	B1	3.500		04/17/20		249		249,064
								963,008
Retailers    3.2%
Academy, Ltd.	B1	4.500		08/03/18		197		197,658
Advantage Sales & Marketing LLC	B1	4.250		12/18/17		498		498,744
Bass Pro Group LLC(c)	B1	4.000		11/20/19		244		245,209
BJ’s Wholesale Club, Inc.	B3	4.250		09/26/19		496		496,101
Calceus Acquisition, Inc.(c)	B2	5.750		01/31/20		249		250,495
Harbor Freight Tools USA, Inc.	B1	4.750		07/26/19		369		371,819
Leslie’s Poolmart, Inc.(c)	B2	5.250		10/16/19		244		245,904
Neiman Marcus Group, Inc.	B2	4.000		05/16/18		266		265,871
Petco Animal Supplies, Inc.(c)	Ba3	4.000		11/24/17		199		200,174
Rite Aid Corp.	B1	4.000		02/21/20		374		374,526
Rite Aid Corp.	B3	5.750		08/21/20		375		384,258
Sprouts Farmers LLC	B1	4.000		04/23/20		206		205,972
Toys “R” Us Delaware, Inc.	B2	5.250		05/25/18		237		228,868
								3,965,599
Technology    8.7%
Alcatel-Lucent USA, Inc.	B1	5.750		01/30/19		250		251,131
Ancestry.com, Inc.	B1	4.250		05/15/18		238		237,500
Ancestry.com, Inc.	B1	5.250		12/28/18		182		183,211
Avaya, Inc.	B1	4.762		10/26/17		440		391,413

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 17

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Technology (cont’d.)
Avaya, Inc.	B1	8.000%		03/30/18		199	$	187,661
Blackboard, Inc.	B1	6.250		10/04/18		445		447,828
BMC Software Finance, Inc.	B1	5.000		09/10/20		450		449,438
CDW Corp.	Ba3	3.500		04/29/20		999		987,306
Ceridian Corp.	B1	4.433		05/09/17		499		497,970
CompuCom Systems, Inc.	B1	4.250		05/11/20		300		298,875
Deltek, Inc.(c)	B1	5.000		10/10/18		373		373,358
Eastman Kodak Co.	B1	7.250		09/03/19		250		244,063
Edwards (Cayman Islands II) Ltd.	B2	4.750		03/26/20		585		585,765
Evertec Group LLC	B1	3.500		04/17/20		275		273,488
First Data Corp.	B1	4.184		03/26/18		569		563,515
First Data Corp	B1	4.184		09/24/18		250		246,750
Freescale Semiconductor, Inc.	B1	5.000		02/28/20		745		748,143
Genesys Telecom Holdings U.S., Inc.	B1	4.000		02/10/20		100		99,557
Hyland Software, Inc.	B2	5.500		10/25/19		249		249,372
Interactive Data Corp.	Ba3	3.750		02/12/18		487		485,994
IPC Systems, Inc.	B1	7.750		07/31/17		150		148,500
Kronos, Inc.	Ba3	9.750		04/30/20		450		465,187
MMI International Ltd.	Ba3	7.250		11/20/18		150		144,000
NXP BV	B1	4.500		03/03/17		417		422,637
RP Crown Parent LLC	B1	6.750		12/21/18		249		251,030
Sophia LP	B1	4.500		07/19/18		145		145,311
SunGard Data Systems, Inc.	Ba3	4.000		03/06/20		249		251,033
SunGard Data Systems, Inc.	Ba3	4.500		01/31/20		249		251,441
Syniverse Holdings, Inc.	B1	4.498		04/23/19		498		499,027
Ultima US Holdings LLC	B2	5.500		07/02/20		275		269,500
								10,650,004
Telecommunications    2.9%
Cincinnati Bell, Inc.	Ba3	4.000		09/10/20		425		422,131
Cricket Communications, Inc.	Ba3	4.750		03/09/20		250		250,625
Crown Castle Operating Co.	Ba2	3.250		01/31/19		200		198,036
Fibertech Networks LLC	B2	4.500		12/18/19		191		191,697
Global Tel*Link Corp.	B2	5.000		05/25/20		346		338,661
Hargray Comm Group, Inc.	B2	4.750		06/26/19		450		453,375
Level 3 Finance, Inc.	Ba3	4.000		01/15/20		500		500,150
Level 3 Finance, Inc.	Ba3	4.750		08/01/19		500		501,065
LTS Buyer LLC	B1	4.500		04/13/20		100		99,958

See Notes to Financial Statements.

18

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Telecommunications (cont’d.)
nTelos, Inc.	B1	5.750%		11/09/19		248	$	246,574
Securus Technologies, Inc.	B2	4.750		04/30/20		50		49,188
Zayo Group LLC	B1	4.500		07/02/19		298		298,490
								3,549,950
Transportation    0.6%
Avis Budget Car Rental LLC	Ba1	3.000		03/15/19		248		246,964
Fly Funding II SARL	B1	4.500		08/08/18		241		242,010
Navios Maritime Partners LP	Ba3	5.250		06/27/18		250		253,750
								742,724
TOTAL BANK LOANS (cost $97,838,302)								98,356,043
CORPORATE BONDS    9.2%
Capital Goods    0.8%
SPX Corp., Gtd. Notes	Ba3	6.875		09/01/17		350		387,625
United Rentals North America, Inc., Gtd. Notes	B3	9.250		12/15/19		550		616,687
								1,004,312
Chemicals    0.3%
NOVA Chemicals Corp. (Canada), Sr. Unsec’d. Notes	Ba2	8.625		11/01/19		200		221,500
Rentech Nitrogen Partners LP/Rentech Nitrogen Finance Corp., Sec’d. Notes, 144A	B1	6.500		04/15/21		170		166,600
								388,100
Consumer    0.7%
First Quality Finance Co., Inc., Sr. Unsec’d. Notes, 144A	B2	4.625		05/15/21		250		232,500
PVH Corp., Sr. Unsec’d. Notes	Ba3	7.375		05/15/20		200		216,000
Service Corp. International, Sr. Unsec’d. Notes	B1	7.625		10/01/18		250		284,063
Sr. Unsec’d. Notes, 144A	B1	5.375		01/15/22		125		121,406
								853,969

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 19

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
CORPORATE BONDS (Continued)
Energy - Other    0.2%
SESI LLC, Gtd. Notes	Ba2	7.125 %		12/15/21		250	$	270,625
Foods    0.7%
ARAMARK Corp., Gtd. Notes, 144A	B3	5.750		03/15/20		250		255,000
Ingles Markets, Inc., Sr. Unsec’d. Notes, 144A	B1	5.750		06/15/23		350		342,125
Landry’s, Inc., Sr. Notes, 144A (original cost $268,438; purchased 08/14/13)(c)(d)	B3	9.375		05/01/20		250		266,563
								863,688
Gaming    0.5%
PNK Finance Corp., Gtd. Notes, 144A	B2	6.375		08/01/21		250		249,375
SugarHouse HSP Gaming LP, Sr. Sec’d. Notes, 144A	B3	6.375		06/01/21		375		356,250
								605,625
Healthcare & Pharmaceutical    1.0%
Accellent, Inc., Sr. Sec’d. Notes	B1	8.375		02/01/17		275		282,563
CHS/Community Health Systems, Inc., Gtd. Notes	B3	8.000		11/15/19		375		393,750
Mallinckrodt International Finance SA (Luxembourg), Gtd. Notes, 144A	Ba2	4.750		04/15/23		200		189,634
VPII Escrow Corp. (Canada), Sr. Unsec’d. Notes, 144A	B1	6.750		08/15/18		350		370,562
								1,236,509
Lodging    0.2%
RHP Hotel Properties LP/RHP Finance Corp., Gtd. Notes, 144A	B1	5.000		04/15/21		250		232,500

See Notes to Financial Statements.

20

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
CORPORATE BONDS (Continued)
Media & Entertainment    1.3%
AMC Entertainment, Inc., Gtd. Notes	Caa1	9.750 %		12/01/20		200	$	228,500
Cedar Fair, L.P., Gtd. Notes, 144A	B1	5.250		03/15/21		250		238,750
Cinemark USA, Inc., Gtd. Notes	B2	5.125		12/15/22		250		233,750
Lamar Media Corp., Gtd. Notes	Ba2	9.750		04/01/14		100		104,250
Nielsen Finance LLC/Nielsen Finance Co., Gtd. Notes	B2	7.750		10/15/18		250		271,875
Gtd. Notes	B2	11.625		02/01/14		200		208,260
SSI Investments II Ltd./SSI Co. - Issuer LLC, Gtd. Notes	Caa1	11.125		06/01/18		200		220,500
								1,505,885
Metals & Mining    0.5%
ArcelorMittal SA (Luxembourg), Sr. Unsec’d. Notes	Ba1	9.500		02/15/15		300		329,250
CONSOL Energy, Inc., Gtd. Notes	B1	8.000		04/01/17		275		290,125
								619,375
Real Estate Investment Trusts    0.4%
Felcor Lodging LP, Sr. Sec’d. Notes	B2	5.625		03/01/23		350		325,500
Sabra Health Care LP/Sabra Capital Corp., Gtd. Notes	B1	5.375		06/01/23		200		190,000
								515,500
Retailers    0.5%
Dufry Finance SCA (Luxembourg), Gtd. Notes, 144A	Ba3	5.500		10/15/20		200		204,110
Hot Topic, Inc., Sr. Sec’d. Notes, 144A (original cost $98,618; purchased 06/06/2013)(c)(d)	B2	9.250		06/15/21		100		101,500

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 21

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

Description	Moody’s Ratings†	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
CORPORATE BONDS (Continued)
Retailers (cont’d.)
Petco Holdings, Inc., Sr. Notes, PIK, 144A (original cost $255,625; purchased 06/04/13)(c)(d)	Caa1	8.500 %		10/15/17		250	$	255,000
								560,610
Technology    1.0%
CDW LLC/CDW Finance Corp., Gtd. Notes	B3	12.535		10/12/17		92		96,025
CommScope Holding Co., Inc., Sr. Unsec’d. Notes, PIK, 144A	Caa1	6.625		06/01/20		332		328,680
Freescale Semiconductor, Inc., Sr. Sec’d. Notes, 144A	B1	9.250		04/15/18		200		216,000
Sensata Technologies BV (Netherlands), Gtd. Notes, 144A	B1	6.500		05/15/19		250		266,250
TransUnion LLC/TransUnion Financing Corp., Gtd. Notes	B2	11.375		06/15/18		300		333,750
								1,240,705
Telecommunications    1.1%
Qwest Communications International, Inc., Gtd. Notes	Ba1	7.125		04/01/18		330		342,787
Sprint Communications, Inc., Sr. Unsec’d. Notes	B1	6.000		12/01/16		600		636,000
Sprint Nextel Corp., Gtd. Notes, 144A	Ba2	9.000		11/15/18		300		350,250
								1,329,037
TOTAL CORPORATE BONDS (cost $11,363,338)								11,226,440
TOTAL LONG-TERM INVESTMENTS (cost $109,201,640)								109,582,483

See Notes to Financial Statements.

22

Description	Shares		Value (Note 1)
SHORT-TERM INVESTMENT    16.8%
AFFILIATED MONEY MARKET MUTUAL FUND
Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $20,678,596)(e)		20,678,596	$	20,678,596
TOTAL INVESTMENTS    106.1% (cost $129,880,236; Note 5)				130,261,079
Liabilities in excess of other assets    (6.1)%				(7,439,963	)
NET ASSETS    100.0%			$	122,821,116

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.

PIK—Payment-in-Kind

† The ratings reflected are as of August 31, 2013. Ratings of certain bonds may have changed subsequent to that date. The Fund’s current Statement of Additional Information contains a description of Moody’s and Standard & Poor’s ratings.

# 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 August 31, 2013.

(b) Standard & Poor’s Rating.

(c) Indicates a security or securities that have been deemed illiquid.

(d) Indicates a restricted security; the aggregate cost of the restricted securities is $1,248,869. The aggregate value, $1,257,023, is approximately 1.0% 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.

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 in active markets for identical securities.

Level 2—other significant observable inputs including, but not limited to, quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates, and amortized cost.

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

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 23

Portfolio of Investments

as of August 31, 2013 (Unaudited) continued

The following is a summary of the inputs used as of August 31, 2013 in valuing such portfolio securities:

	Level 1		Level 2		Level 3
Investments in Securities
Bank Loans	$	—	$	86,484,886	$	11,871,157
Corporate Bonds		—		11,226,440		—
Affiliated Money Market Mutual Fund		20,678,596		—		—
Total	$	20,678,596	$	97,711,326	$	11,871,157

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 2/28/13	$	6,042,023
Realized gain (loss)		22,113
Change in unrealized appreciation (depreciation)*		654,880
Purchases		8,680,477
Sales		(1,718,473	)
Accrued discount/premium		4,693
Transfers into Level 3		977,826
Transfers out of Level 3		(2,792,382	)
Balance as of 8/31/13	$	11,871,157

* Of which, $654,880 was included in Net Assets relating to securities held at the reporting period end.

It is the Fund’s policy to recognize transfers in and transfers out at the fair value as of the beginning of period. At the reporting period end, there were 5 Bank Loans transferred out of Level 3 as a result of no longer using a single broker quote and 6 Bank Loans transferred into Level 3 as a result of using a single broker quote.

Included in the table above, under Level 3, are securities that were fair valued using pricing methodologies approved by the Valuation Committee, which contain unobservable inputs. Such methodologies may include, but are not limited to, using prices provided by a single broker/dealer, the cost of the investment, and prices of any recent transactions or bids/offers for such securities or any comparable securities.

See Notes to Financial Statements.

24

The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of August 31, 2013 was as follows:

Affiliated Money Market Mutual Fund	16.8	%
Technology	9.7
Healthcare & Pharmaceutical	9.2
Capital Goods	8.2
Media & Entertainment	8.1
Chemicals	5.1
Consumer	4.8
Telecommunications	4.0
Foods	4.0
Retailers	3.7
Cable	3.5
Gaming	3.5
Metals & Mining	2.9
Other Industry	2.9
Non-Captive Finance	2.5
Energy—Other	2.2
Electric	2.0
Building Materials & Construction	2.0
Aerospace & Defense	1.5	%
Insurance	1.4
Automotive	1.3
Packaging	1.1
Lodging	1.1
Airlines	1.0
Brokerage	0.9
Real Estate	0.8
Pipelines & Other	0.6
Transportation	0.6
Real Estate Investment Trusts	0.4
Paper	0.3
	106.1
Liabilities in excess of other assets	(6.1	)
	100.0	%

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 25

Statement of Assets and Liabilities

as of August 31, 2013 (Unaudited)

Assets
Investments at value:
Unaffiliated Investments (cost $109,201,640)	$	109,582,483
Affiliated Investments (cost $20,678,596)		20,678,596
Cash		279,388
Receivable for investments sold		1,913,837
Receivable for Fund shares sold		1,702,071
Dividends and interest receivable		667,751
Prepaid expenses		1,354
Total assets		134,825,480
Liabilities
Payable for investments purchased		11,682,800
Payable for Fund shares reacquired		157,909
Accrued expenses		80,451
Management fee payable		43,904
Distribution fee payable		24,975
Dividends payable		12,924
Affiliated transfer agent fee payable		1,401
Total liabilities		12,004,364
Net Assets	$	122,821,116
Net assets were comprised of:
Common stock, at par	$	121,333
Paid-in capital in excess of par		122,120,576
		122,241,909
Undistributed net investment income		79,225
Accumulated net realized gain on investment and foreign currency transactions		119,139
Net unrealized appreciation on investments		380,843
Net assets, August 31, 2013	$	122,821,116

See Notes to Financial Statements.

26

Class A
Net asset value and redemption price per share ($36,378,127 ÷ 3,596,852 shares of common stock issued and outstanding)	$	10.11
Maximum sales charge (3.25% of offering price)		0.34
Maximum offering price to public	$	10.45
Class C
Net asset value, offering price and redemption price per share ($22,805,391 ÷ 2,252,665 shares of common stock issued and outstanding)	$	10.12
Class Z
Net asset value, offering price and redemption price per share ($63,637,598 ÷ 6,283,785 shares of common stock issued and outstanding)	$	10.13

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 27

Statement of Operations

Six Months Ended August 31, 2013 (Unaudited)

Net Income
Income
Interest income (net of foreign withholding taxes of $307)	$	1,920,101
Affiliated dividend income		9,310
Total income		1,929,411
Expenses
Management fee		282,418
Distribution fee—Class A		33,188
Distribution fee—Class C		67,186
Custodian’s fees and expenses		129,000
Audit fee		25,000
Registration fees		21,000
Legal fees and expenses		11,000
Transfer agent’s fees and expenses (including affiliated expense of $3,200) (Note 3)		11,000
Shareholders’ reports		8,000
Director’s fees		5,000
Miscellaneous		5,958
Total expenses		598,750
Less: Expense reimbursement (Note 2)		(115,024	)
Net expenses		483,726
Net investment income		1,445,685
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions
Net realized gain on:
Investment transactions		169,081
Foreign currency transactions		67
		169,148
Net change in unrealized appreciation (depreciation) on investments		(430,961	)
Net loss on investment and foreign currency transactions		(261,813	)
Net Increase In Net Assets Resulting From Operations	$	1,183,872

See Notes to Financial Statements.

28

Statement of Changes in Net Assets

(Unaudited)

	Six Months Ended August 31, 2013			Year Ended February 28, 2013
Increase (Decrease) In Net Assets
Operations
Net investment income	$	1,445,685		$	1,945,145
Net realized gain on investment and foreign currency transactions		169,148			156,484
Net change in unrealized appreciation (depreciation) on investments		(430,961	)		997,113
Net increase in net assets resulting from operations		1,183,872			3,098,742
Dividends and Distributions (Note 1)
Dividends from net investment income
Class A		(450,521	)		(522,690	)
Class C		(174,704	)		(102,219	)
Class Z		(735,267	)		(1,250,391	)
		(1,360,492	)		(1,875,300	)
Distributions from net realized gains
Class A		—			(67,017	)
Class C		—			(14,389	)
Class Z		—			(100,135	)
		—			(181,541	)
Fund share transactions (Net of share conversions) (Note 6)
Net proceeds from shares sold		79,998,383			29,270,637
Net asset value of shares issued in reinvestment of dividends and distributions		1,307,063			2,027,427
Cost of shares reacquired		(17,657,842	)		(7,356,487	)
Net increase in net assets from Fund share transactions		63,647,604			23,941,577
Total increase		63,470,984			24,983,478
Net Assets:
Beginning of period		59,350,132			34,366,654
End of period(a)	$	122,821,116		$	59,350,132
(a) Includes undistributed net investment income of:	$	79,225		$	—

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 29

Notes to Financial Statements

(Unaudited)

Prudential Investment Portfolios, Inc. 14 (the “Company”) is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Company consists of two funds: Prudential Floating Rate Income Fund (the “Fund”) and Prudential Government Income Fund. These financial statements relate to Prudential Floating Rate Income Fund. Investment operations of the Fund commenced on March 30, 2011. The Fund’s primary investment objective is to maximize current income. The secondary investment objective is to seek capital appreciation when consistent with the Fund’s primary investment objective.

Note 1. Accounting Policies

The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.

Securities Valuations: The Fund holds portfolio securities and other assets that are fair valued at the close of each day the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Trustees (the “Board”) has delegated fair valuation responsibilities to Prudential Investments LLC (“PI” or “Manager”) through the adoption of Valuation Procedures for valuation of the Fund’s securities. Under the current Valuation Procedures, a Valuation Committee is established and responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures allow the Fund to utilize independent pricing vendor services, quotations from market makers and other valuation methods in events when market quotations are not readily available or not representative of the fair value of the securities. A record of the Valuation Committee’s actions is subject to review, approval and ratification by the Board at its next regularly scheduled quarterly meeting.

Various inputs are used in determining the value of the Funds’ investments, which are summarized in the three broad levels hierarchies based on any observable inputs used as described in the table following each Fund’s Portfolio of Investments. The valuation methodologies and significant inputs used in determining the fair value of securities and other assets classified as Level 1, Level 2 and Level 3 of the hierarchy are as follows:

Common stocks, exchange-traded funds and financial derivative instruments (including futures contracts and certain options and swap contracts on securities), that

30

are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 of the fair value hierarchy.

In the event there is no sale or official closing price on such day, these securities are valued at the mean between the last reported bid and asked prices, or at the last bid price in absence of an asked price. These securities are classified as Level 2 of the fair value hierarchy as these inputs are considered as significant other observable inputs to the valuation.

Common stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy, as the adjustment factors are observable and considered to be significant to the valuation.

Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 as these securities have the ability to be purchased or sold at their net asset value on the date of valuation.

Fixed income securities traded in the over-the-counter market, such as corporate bonds, municipal bonds, U.S. Government agencies issues and guaranteed obligations, U.S. Treasury obligations, and sovereign issues are usually valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices usually after evaluating observable inputs including yield curves, credit rating, yield spreads, default rates, cash flows as well as broker/dealer quotations and reported trades. Securities valued using such vendor prices are classified as Level 2 of the fair value hierarchy.

Asset-backed and mortgage-related securities are usually valued by approved independent pricing vendors. The pricing vendors provide the prices using their internal pricing models with inputs from deal terms, tranche level attributes, yield curves, prepayment speeds, default rates and broker/dealer quotes. Securities valued using such vendor prices are classified as Level 2 of the fair value hierarchy.

Short-term debt securities of sufficient credit quality, which mature in sixty days or less, are valued using amortized cost method, which approximates fair value. The

Prudential Floating Rate Income Fund 31

Notes to Financial Statements

(Unaudited) continued

amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assumes a constant amortization to maturity of the difference between the principal amount due at maturity and cost. These securities are categorized as Level 2 of the fair value hierarchy.

Over-the-counter financial derivative instruments, such as option contracts, foreign currency contracts and swap agreements, are usually valued using pricing vendor services, which derive the valuation based on underlying asset prices, indices, spreads, interest rates, exchange rates and other inputs. These instruments are categorized as Level 2 of the fair value hierarchy.

Securities and other assets that cannot be priced using the methods described above are valued with pricing methodologies approved by the Board of Trustees. In the event there are unobservable inputs used when determining such valuations, the securities will be classified as Level 3 of the fair value hierarchy.

When determining the fair value 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 the 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 adviser 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.

Restricted and Illiquid Securities: The Fund may invest up to 15% of its net assets in illiquid securities. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the investment. Therefore, the Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among

32

qualified institutional buyers under Rule 144A of the Securities Act of 1933. These Rule 144A securities, as well as commercial paper that is sold in private placements under Section 4(2) of the Securities Act, may be deemed liquid by the Fund’s Subadviser under the guidelines adopted by the Fund. However, the liquidity of the Fund’s investments in Rule 144A securities could be impaired if trading does not develop or declines.

Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:

(i) market value of investment securities, other assets and liabilities—at the current rates of exchange.

(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.

Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of securities sold during the period. Accordingly, realized foreign currency gains or losses are included in the reported net realized gains or losses on investment transactions.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment and currency transactions are calculated on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis which may require the use of certain estimates by management, that may differ from actual. The Fund amortizes premiums and accretes discounts on purchases of debt securities as adjustments to interest income.

Net investment income or loss (other than distribution fees, which are charged directly to respective class) and unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.

Prudential Floating Rate Income Fund 33

Notes to Financial Statements

(Unaudited) continued

Dividends and Distributions: The Fund declares daily dividends from net investment income. Payment of dividends is made monthly. Distributions of net realized capital gains, if any, are made annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid-in capital in excess of par, as appropriate.

Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.

Withholding taxes on foreign interests are recorded, net of reclaimable amounts, at the time the related income is earned.

Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Note 2. Agreements

The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PIM is obligated to keep certain books and records of the Fund. PI pays for the services of PIM, the cost of compensation of officers and employees of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.

The management fee paid to PI is accrued daily and payable monthly at an annual rate of .70% of the Fund’s average daily net assets. PI has contractually agreed through June 30, 2014 to limit net annual Fund operating expenses (excluding distribution and service (12b-1) fees, extraordinary and certain other expenses,

34

including taxes, interest and brokerage commissions) to each class of shares to .95% of the Fund’s average daily net assets.

The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A and Class C shares pursuant to plans of distribution (the “Class A and C Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund.

Pursuant to the Class A and C Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30% and 1% of the average daily net assets of the Class A and C shares, respectively. PIMS has contractually agreed to limit such expenses to .25% of the average net assets of the Class A shares through contractual reduction date of June 30, 2014.

PIMS has advised the Fund that it has received $59,887 in front-end sales charges resulting from sales of Class A shares during the six months ended August 31, 2013. From these fees, PIMS paid a substantial portion of such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.

PIMS has advised the Fund that for the six months ended August 31, 2013, it received $1,102 and $8,089 in contingent deferred sales charges imposed upon redemptions by certain Class A and Class C shareholders, respectively.

PI, PIM and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

Note 3. Other Transactions with Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

The Fund invests in the Prudential Core Taxable Money Market Fund (the “Core Fund”), a portfolio of the Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PI. Earnings from the Core Fund are disclosed on the Statement of Operations as affiliated dividend income.

Prudential Floating Rate Income Fund 35

Notes to Financial Statements

(Unaudited) continued

Note 4. Portfolio Securities

Purchases and sales of portfolio securities, other than short-term investments and U.S. Government securities, for the six months ended August 31, 2013 were $74,984,033 and $22,901,429, respectively.

Note 5. Tax Information

The United States federal income tax basis of investments and net unrealized appreciation as of August 31, 2013 were as follows:

Tax Basis	$	129,946,780
Appreciation		820,674
Depreciation		(506,375	)
Net Unrealized Appreciation	$	314,299

The book basis may differ from tax basis due to certain tax related adjustments.

Note 6. Capital

The Fund offers Class A, Class C and Class Z shares. Class A shares are sold with a front-end sales charge of up to 3.25%. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1% effective October 1, 2012, including investors who purchase their shares through broker-dealers affiliated with Prudential. Class C shares purchased are subject to a CDSC of 1% for 12 months from the date of purchase. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.

At August 31, 2013, Prudential through its affiliates owned 111 Class A shares, 109 Class C shares and 2,531,614 Class Z shares of the Fund.

There are 900 million shares of common stock, $.01 par value per share, divided into three classes, designated Class A, Class C and Class Z common stock, each of which consists of 300,000,000 authorized shares.

36

Transactions in shares of common stock were as follows:

Class A	Shares			Amount
Six months ended August 31, 2013:
Shares sold		2,279,279		$	23,094,957
Shares issued in reinvestment of dividends		42,394			429,987
Shares reacquired		(904,152	)		(9,184,228	)
Net increase (decrease) in shares outstanding		1,417,521		$	14,340,716
Year ended February 28, 2013:
Shares sold		1,969,903		$	19,702,668
Shares issued in reinvestment of dividends and distributions		56,721			569,499
Shares reacquired		(366,508	)		(3,676,095	)
Net increase (decrease) in shares outstanding		1,660,116		$	16,596,072
Class C
Six months ended August 31, 2013:
Shares sold		1,724,634		$	17,509,619
Shares issued in reinvestment of dividends		16,754			170,055
Shares reacquired		(219,218	)		(2,224,913	)
Net increase (decrease) in shares outstanding		1,522,170		$	15,454,761
Year ended February 28, 2013:
Shares sold		639,541		$	6,451,732
Shares issued in reinvestment of dividends and distributions		11,181			112,382
Shares reacquired		(96,170	)		(965,585	)
Net increase (decrease) in shares outstanding		554,552		$	5,598,529
Class Z
Six months ended August 31, 2013:
Shares sold		3,879,639		$	39,393,807
Shares issued in reinvestment of dividends		69,601			707,021
Shares reacquired		(614,072	)		(6,248,701	)
Net increase (decrease) in shares outstanding		3,335,168		$	33,852,127
Year ended February 28, 2013:
Shares sold		311,402		$	3,116,237
Shares issued in reinvestment of dividends and distributions		134,227			1,345,546
Shares reacquired		(272,050	)		(2,714,807	)
Net increase (decrease) in shares outstanding		173,579		$	1,746,976

Note 7. Borrowing

The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for

Prudential Floating Rate Income Fund 37

Notes to Financial Statements

(Unaudited) continued

capital share redemptions. The SCA provides for a commitment of $900 million through November 14, 2013. The Funds pay an annualized commitment fee of 0.08% on the unused portion of the SCA. Interest on any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.

The Fund did not utilize the SCA during the six months ended August 31, 2013.

38

Financial Highlights

(Unaudited)

Class A Shares
	Six Months Ended August 31,			Year Ended February 28,			March 30, 2011(a) through February 29,
	2013			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$10.12			$9.89			$10.00
Income (loss) from investment operations:
Net investment income		.17			.43			.35
Net realized and unrealized gain (loss) on investment transactions		(.01	)		.26			(.09	)
Total from investment operations		.16			.69			.26
Less Dividends and Distributions:
Dividends from net investment income		(.17	)		(.42	)		(.37	)
Distributions from net realized gains		-			(.04	)		-	(b)
Total dividends and distributions		(.17	)		(.46	)		(.37	)
Net asset value, end of period		$10.11			$10.12			$9.89
Total Return(c):		1.65%			7.11%			2.70%
Ratios/Supplemental Data:
Net assets, end of period (000)		$36,378			$22,059			$5,136
Average net assets (000)		$26,338			$12,454			$2,434
Ratios to average net assets(d):
Expense after advisory fee waiver and expense reimbursement(e)		1.20%	(f)		1.20%			1.20%	(f)
Expense before advisory fee waiver and expense reimbursement		1.48%	(f)		1.87%			2.40%	(f)
Net investment income		3.60%	(f)		4.35%			4.10%	(f)
Portfolio turnover rate		29%	(g)		106%			163%	(g)

(a) Commencement of Fund.

(b) Less than $.005 per share.

(c) 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 period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than a full year are not annualized.

(d) Does not include expenses of the underlying portfolio in which the Fund invests.

(e) The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .25% of the average daily net assets of the Class A shares through contractual reduction date of June 30, 2014.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 39

Financial Highlights

(Unaudited) continued

Class C Shares
	Six Months Ended August 31,			Year Ended February 28,			March 30, 2011(a) through February 29,
	2013			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$10.13			$9.90			$10.00
Income (loss) from investment operations:
Net investment income		.13			.36			.28
Net realized and unrealized gain (loss) on investment transactions		.00			.26			(.08	)
Total from investment operations		.13			.62			.20
Less Dividends and Distributions:
Dividends from net investment income		(.14	)		(.35	)		(.30	)
Distributions from net realized gains		-			(.04	)		-	(b)
Total dividends and distributions		(.14	)		(.39	)		(.30	)
Net asset value, end of period		$10.12			$10.13			$9.90
Total Return(c):		1.26%			6.29%			2.10%
Ratios/Supplemental Data:
Net assets, end of period (000)		$22,805			$7,403			$1,742
Average net assets (000)		$13,328			$2,997			$1,235
Ratios to average net assets(d):
Expense after advisory fee waiver and expense reimbursement		1.95%	(e)		1.95%			1.95%	(e)
Expense before advisory fee waiver and expense reimbursement		2.23%	(e)		2.62%			3.15%	(e)
Net investment income		2.81%	(e)		3.57%			3.43%	(e)
Portfolio turnover rate		29%	(f)		106%			163%	(f)

(a) Commencement of Fund.

(b) Less than $.005 per share.

(c) 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 period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than a full year are not annualized.

(d) Does not include expenses of the underlying portfolio in which the Fund invests.

(e) Annualized.

(f) Not annualized.

See Notes to Financial Statements.

40

Class Z Shares
	Six Months Ended August 31,			Year Ended February 28,			March 30, 2011(a) through February 29,
	2013			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$10.14			$9.91			$10.00
Income (loss) from investment operations:
Net investment income		.19			.46			.37
Net realized and unrealized gain (loss) on investment transactions		(.01	)		.26			(.07	)
Total from investment operations		.18			.72			.30
Less Dividends and Distributions:
Dividends from net investment income		(.19	)		(.45	)		(.39	)
Distributions from net realized gains		-			(.04	)		-	(b)
Total dividends and distributions		(.19	)		(.49	)		(.39	)
Net asset value, end of period		$10.13			$10.14			$9.91
Total Return(c):		1.78%			7.36%			3.13%
Ratios/Supplemental Data:
Net assets, end of period (000)		$63,638			$29,889			$27,488
Average net assets (000)		$40,373			$27,983			$25,812
Ratios to average net assets(d):
Expense after advisory fee waiver and expense reimbursement		.95%	(e)		.95%			.95%	(e)
Expense before advisory fee waiver and expense reimbursement		1.23%	(e)		1.62%			2.15%	(e)
Net investment income		3.82%	(e)		4.63%			4.08%	(e)
Portfolio turnover rate		29%	(f)		106%			163%	(f)

(a) Commencement of Fund.

(b) Less than $.005 per share.

(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. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than a full year are not annualized.

(d) Does not include expenses of the underlying portfolio in which the Fund invests.

(e) Annualized.

(f) Not annualized.

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 41

Approval of Advisory Agreements

The Fund’s Board of Directors

The Board of Directors (the “Board”) of Prudential Floating Rate Income Fund (the “Fund”)¹ consists of ten individuals, eight of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Directors”).² The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the Directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Director. The Board has established three standing committees: the Audit Committee, the Nominating and Governance Committee, and the Investment Committee. Each committee is chaired by, and composed of, Independent Directors.

Annual Approval of the Fund’s Advisory Agreements

As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with Prudential Investments LLC (“PI”) and the Fund’s subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). In considering the renewal of the agreements, the Board, including all of the Independent Directors, met on June 4-6, 2013 and approved the renewal of the agreements through July 31, 2014, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.

In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PI and PIM. Also, the Board considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups, as is further discussed below.

In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PI and the subadviser, the performance of the Fund, the profitability of PI and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders as the Fund’s assets grow. In their deliberations, the Directors did not identify any single factor which alone was responsible for the Board’s decision to approve the agreements with respect to the Fund. In connection with its deliberations, the Board considered information provided by PI throughout the year at regular Board

¹  Prudential Floating Rate Income Fund is a series of Prudential Investment Portfolios, Inc. 14.

²  Ms. Alberding and Messrs. Hartstein and Quinn were elected to the Board effective September 1, 2013.

Prudential Floating Rate Income Fund

Approval of Advisory Agreements (continued)

meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on June 4-6, 2013.

The Directors determined that the overall arrangements between the Fund and PI, which serves as the Fund’s investment manager pursuant to a management agreement, and between PI and PIM, which serves as the Fund’s subadviser pursuant to the terms of a subadvisory agreement with PI, are in the interest of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment.

The material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.

Nature, Quality and Extent of Services

The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PI and PIM. The Board considered the services provided by PI, including but not limited to the oversight of the subadviser for the Fund, as well as the provision of fund recordkeeping, compliance, and other services to the Fund. With respect to PI’s oversight of the subadviser, the Board noted that PI’s Strategic Investment Research Group (“SIRG”), which is a business unit of PI, is responsible for monitoring and reporting to PI’s senior management on the performance and operations of the subadviser. The Board also considered that PI pays the salaries of all of the officers and non-independent Directors of the Fund. The Board also considered the investment subadvisory services provided by PIM, including investment research and security selection, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PI’s evaluation of the subadviser, as well as PI’s recommendation, based on its review of the subadviser, to renew the subadvisory agreement.

The Board considered the qualifications, backgrounds and responsibilities of PI’s senior management responsible for the oversight of the Fund and PIM, and also considered the qualifications, backgrounds and responsibilities of PIM’s portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PI’s and PIM’s organizational structure, senior management, investment operations, and other relevant information pertaining to both PI and PIM. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to both PI and PIM. The Board noted that PIM is affiliated with PI.

Visit our website at www.prudentialfunds.com

The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PI and the subadvisory services provided to the Fund by PIM, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PI and PIM under the management and subadvisory agreements.

Costs of Services and Profits Realized by PI

The Board was provided with information on the profitability of PI and its affiliates in serving as the Fund’s investment manager. The Board discussed with PI the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations and the adviser’s capital structure and cost of capital. However, the Board considered that the cost of services provided by PI for the year ended December 31, 2012 exceeded the management fees received by PI, resulting in an operating loss to PI. The Board separately considered information regarding the profitability of the subadviser, an affiliate of PI. Taking these factors into account, the Board concluded that the profitability of PI and its affiliates in relation to the services rendered was not unreasonable.

Economies of Scale

The Board noted that the management fee schedule for the Fund does not contain breakpoints that would reduce the fee rate on assets above specified levels. The Board received and discussed information concerning whether PI realizes economies of scale as the Fund’s assets grow beyond current levels. In light of the Fund’s current size, performance and expense structure, the Board concluded that the absence of breakpoints in the Fund’s fee schedule is acceptable at this time.

Other Benefits to PI and PIM

The Board considered potential ancillary benefits that might be received by PI and PIM and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PI included fees received by affiliates of PI for serving as the Fund’s securities lending agent, transfer agency fees received by the Fund’s transfer agent (which is affiliated with PI), as well as benefits to the reputation or other intangible benefits resulting from PI’s association with the Fund. The Board concluded that the potential benefits to be derived by PIM included the ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically,

Prudential Floating Rate Income Fund

Approval of Advisory Agreements (continued)

potential access to additional research resources and benefits to the reputation. The Board concluded that the benefits derived by PI and PIM were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.

Performance of the Fund / Fees and Expenses

The Board considered certain additional specific factors and made related conclusions relating to the historical performance of the Fund for the one-year period ended December 31, 2012. The Board considered that the Fund commenced operations on March 30, 2011 and that longer-term performance was not yet available.

The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended February 29, 2012. The Board considered the management fee for the Fund as compared to the management fee charged by PI to other funds and the fee charged by other advisers to comparable mutual funds in a Peer Group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.

The mutual funds included in the Peer Universe (the Lipper Loan Participation Funds Performance Universe) and the Peer Group were objectively determined by Lipper Inc. (“Lipper”), an independent provider of mutual fund data. The comparisons placed the Fund in various quartiles, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).

The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth gross performance comparisons (which do not reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the Peer Universe, actual management fees with the Peer Group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the Peer Group, each of which were key factors considered by the Board.

Performance	1 Year	3 Years	5 Years	10 Years
	3rd Quartile	N/A	N/A	N/A
Actual Management Fees: 1st Quartile
Net Total Expenses: 4th Quartile

Visit our website at www.prudentialfunds.com

• The Board noted that the Fund outperformed its benchmark index for the one-year period.

• The Board accepted PI’s recommendation to continue the existing expense cap of 0.95% (exclusive of 12b-1 fees and certain other fees) through June 30, 2014.

• The Board considered PI’s assertion that the Fund’s relatively small asset size resulted in high fixed costs, which significantly impacted the Fund’s expense ranking.

• The Board concluded that, in light of the Fund’s strong performance against its benchmark index, it would be in the best interests of the Fund and its shareholders to renew the agreements.

• The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided.

*    *    *

After full consideration of these factors, the Board concluded that the approval of the agreements was in the interest of the Fund and its shareholders.

Prudential Floating Rate Income Fund

n    MAIL	n    TELEPHONE	n    WEBSITE
Gateway Center Three 100 Mulberry Street Newark, NJ 07102	(800) 225-1852	www.prudentialfunds.com

PROXY VOTING

The Board of Directors of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.

DIRECTORS

Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Douglas H. McCorkindale • Stephen P. Munn • Stuart S. Parker • James E. Quinn • Richard A. Redeker • Robin B. Smith • Stephen G. Stoneburn

OFFICERS

Stuart S. Parker, President • Scott E. Benjamin, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Bruce Karpati, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Amanda S. Ryan, Assistant Secretary • Andrew R. French, Assistant Secretary • M. Sadiq Peshimam, Assistant Treasurer • Peter Parrella, Assistant Treasurer

MANAGER	Prudential Investments LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
INVESTMENT SUBADVISER	Prudential Investment Management, Inc.	Gateway Center Two 100 Mulberry Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102
CUSTODIAN	The Bank of New York Mellon	One Wall Street New York, NY 10286
TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 9658 Providence, RI 02940
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	KPMG LLP	345 Park Avenue New York, NY 10154
FUND COUNSEL	Willkie Farr & Gallagher LLP	787 Seventh Avenue New York, NY 10019

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.

E-DELIVERY

To receive your mutual fund documents online, go to www.prudentialfunds.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.

SHAREHOLDER COMMUNICATIONS WITH DIRECTORS

Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Floating Rate Income Fund, Prudential Investments, Attn: Board of Directors, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee.

AVAILABILITY OF PORTFOLIO SCHEDULE

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month.

Mutual Funds:

ARE NOT INSURED BY THE FDIC OR ANY
FEDERAL GOVERNMENT AGENCY MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED
BY ANY BANK OR ANY BANK AFFILIATE

PRUDENTIAL FLOATING RATE INCOME FUND

SHARE CLASS	A	C	Z
NASDAQ	FRFAX	FRFCX	FRFZX
CUSIP	74439V602	74439V701	74439V800

MF211E2    0252773-00001-00

Item 2 – Code of Ethics – Not required, as this is not an annual filing.

Item 3 – Audit Committee Financial Expert – Not required, as this is not an annual filing.

Item 4 – Principal Accountant Fees and Services – Not required, as this is not an annual filing.

Item 5 – Audit Committee of Listed Registrants – Not applicable.

Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers –

Not applicable.

Item 10 – Submission of Matters to a Vote of Security Holders – Not applicable.

Item 11 – 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 has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 – Exhibits

(a) (1)  Code of Ethics – Not required, as this is not an annual filing.

      (2)  Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.

      (3)  Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.

(b)  Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT.

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:	/s/ Deborah A. Docs
	Deborah A. Docs
	Secretary
Date:	October 21, 2013

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:	/s/ Stuart S. Parker
	Stuart S. Parker
	President and Principal Executive Officer
Date:	October 21, 2013

By:	/s/ Grace C. Torres
	Grace C. Torres
	Treasurer and Principal Financial Officer
Date:	October 21, 2013