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:	655 Broad Street, 17th Floor
	Newark, New Jersey 07102
Name and address of agent for service:	Deborah A. Docs
	655 Broad Street, 17th Floor
	Newark, New Jersey 07102
Registrant’s telephone number, including area code:	800-225-1852
Date of fiscal year end:	2/29/2016
Date of reporting period:	2/29/2016

Item 1 – Reports to Stockholders –

PRUDENTIAL INVESTMENTS, A PGIM BUSINESS  |  MUTUAL FUNDS

Prudential Government Income Fund

ANNUAL REPORT FEBRUARY 29, 2016

To enroll in e-delivery, go to prudentialfunds.com/edelivery

Objective: Seek high current return

Highlights

PRUDENTIAL GOVERNMENT INCOME FUND

• Security selection contributed positively during the reporting period, with the Fund’s higher-quality bias within Commercial Mortgage-Backed Securities (CMBS) adding to results.

• The Fund was hampered by its curve positioning strategy, as the portfolio was positioned to benefit from a flatter yield curve. A curve positioning strategy attempts to gain from changes in the Treasury yield curve.

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.

Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. Prudential Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. ^© 2016 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

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Letter from the President

Dear Shareholder:

We hope you find the annual report for the Prudential Government Income Fund informative and useful. The report covers performance for the 12-month period that ended February 29, 2016.

During the period, the US economy continued to grow modestly, but

growth outside the US has been sluggish and slowing for the past several years. Plummeting energy prices, slowing economic growth in China, and declining global earnings growth weighed heavily on the world markets. Even so, a strong US labor market and low oil prices have encouraged consumers to spend more.

The US bull market is in its seventh year, the third-longest bull market since World War II. But stocks have been extremely volatile since the beginning of 2016. Bond markets remained mixed, with US Treasuries performing well as investors have sought safe havens in the wake of recent poor stock performance. High yield, or below-investment-grade, bonds have struggled due to credit concerns in the energy sector, though higher-rated high yield bonds have done better.

Given the volatility in today’s investment environment, we believe that active professional portfolio management offers a potential advantage. Active managers often have the knowledge and flexibility to find the best investment opportunities in the most challenging markets.

Even so, it’s best if investment decisions are based on your long-term goals rather than on short-term market and economic developments. We also encourage you to work with an experienced financial advisor who can help you set goals, determine your tolerance for risk, and build a diversified plan that’s right for you and make adjustments when necessary.

By having Prudential Investments help you address your goals, you gain the advantage of asset managers that also manage money for major corporations and pension funds around the world. That means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.

Thank you for choosing our family of funds.

Sincerely,

Stuart S. Parker, President

Prudential Government Income Fund

April 15, 2016

Prudential Government Income Fund 3

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 2/29/16
	One Year (%)	Five Years (%)	Ten Years (%)
Class A	1.41	15.83	49.61
Class B	0.69	11.48	38.82
Class C	0.69	11.59	40.46
Class R	1.16	14.39	45.95
Class Z	1.67	17.30	53.45
Barclays US Government Bond Index	2.83	18.09	53.93
Barclays US Aggregate ex-Credit Index	2.68	17.69	55.39
Lipper General US Government Funds Average	1.41	15.74	44.92
Average Annual Total Returns (With Sales Charges) as of 3/31/16
	One Year (%)	Five Years (%)	Ten Years (%)
Class A	–3.14	2.12	3.79
Class B	–4.38	2.09	3.49
Class C	–0.31	2.30	3.61
Class R	1.07	2.79	4.01
Class Z	1.68	3.33	4.53
Barclays US Government Bond Index	2.37	3.42	4.52
Barclays US Aggregate ex-Credit Index	2.40	3.34	4.62
Lipper General US Government Funds Average	1.22	2.94	3.86

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Average Annual Total Returns (With Sales Charges) as of 2/29/16
	One Year (%)	Five Years (%)	Ten Years (%)
Class A	–3.15	2.04	3.63
Class B	–4.28	2.01	3.33
Class C	–0.30	2.22	3.46
Class R	1.16	2.73	3.85
Class Z	1.67	3.24	4.37
Average Annual Total Returns (Without Sales Charges) as of 2/29/16
	One Year (%)	Five Years (%)	Ten Years (%)
Class A	1.41	2.98	4.11
Class B	0.69	2.20	3.33
Class C	0.69	2.22	3.46
Class R	1.16	2.73	3.85
Class Z	1.67	3.24	4.37

Growth of a $10,000 Investment

The graph compares a $10,000 investment in the Prudential Government Income Fund (Class A shares) with a similar investment in the Barclays US Government Bond Index by portraying the initial account values at the beginning of the 10-year period for Class A shares (February 28, 2006) and the account values at the end of the current fiscal year

Prudential Government Income Fund 5

Your Fund’s Performance (continued)

(February 29, 2016) as measured on a quarterly basis. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) the maximum applicable front-end sales charge was deducted from the initial $10,000 investment in Class A shares; (b) all recurring fees (including management fees) were deducted; and (c) all dividends and distributions were reinvested. The line graph provides information for Class A shares only. As indicated in the tables provided earlier, performance for Class B, Class C, Class R, and Class Z shares will vary due to the differing charges and expenses applicable to each share class (as indicated in the following paragraphs). Without waiver of fees and/or expense reimbursement, if any, the Fund’s returns would have been lower.

Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total 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.

Source: Prudential Investments LLC and Lipper Inc.

The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund 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) (as a percentage of the lower of original purchase price or net asset value at redemption)	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)	.25%	1% up to $3 billion, .80% next $1 billion, and .50% over $4 billion	1%	.75% (.50% currently)	None

*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.

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Benchmark Definitions

Barclays US Government Bond Index—The Barclays US Government Bond Index is an unmanaged index of securities issued or backed by the US Government, its agencies, and instrumentalities with between one and 30 years remaining to maturity. It gives a broad look at how US Government bonds have performed.

Barclays US Aggregate ex-Credit Index—The Barclays US Aggregate ex-Credit Index is an unmanaged index that represents securities that are SEC registered, taxable, and dollar denominated. The Index covers the US investment-grade fixed rate bond market, with index components for government and corporate 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.

Lipper General US Government Funds Average—The Lipper General US Government Funds Average (Lipper Average) is based on the average return of all funds in the Lipper General US Government Funds category for the periods noted. Funds in the Lipper Average invest primarily in US government and agency issues.

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.

Credit Quality expressed as a percentage of total investments as of 2/29/16 (%)
AAA	99.1
AA	0.0
A	0.1
Not Rated	–1.0
Cash/Cash Equivalents	1.7
Total Investments	100.0

Source: PGIM, Inc.

Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investor Service, Inc. (Moody’s), Standard & Poor’s (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier statistical rating organizations and are widely used. The Not Rated category consists of securities that have not been rated by a NRSRO and may include derivative instruments that could have a negative value. Credit ratings are subject to change. Values may not sum to 100.0% due to rounding.

Prudential Government Income Fund 7

Your Fund’s Performance (continued)

Distributions and Yields as of 2/29/16
	Total Distributions Paid for 12 Months ($)	SEC 30-Day Subsidized Yield* (%)	SEC 30-Day Unsubsidized Yield** (%)
Class A	0.21	0.95	0.95
Class B	0.14	0.26	0.26
Class C	0.14	0.26	0.26
Class R	0.18	0.75	0.51
Class Z	0.23	1.25	1.25

*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s net expenses (net of any expense waivers or reimbursements).

**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses.

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Strategy and Performance Overview

How did the Fund perform?

Prudential Government Income Fund’s Class A shares returned 1.41% during the 12-month reporting period that ended February 29, 2016, underperforming the 2.83% return of the Barclays US Government Bond Index (the “Index”). In addition, the Fund underperformed the 2.68% return of the Barclays US Aggregate-ex Credit Index (the style-appropriate benchmark index). The Fund performed in line with the Lipper General US Government Funds Average, which returned 1.41% during the period.

What were market conditions?

When the reporting period began in March 2015, softening economic conditions, a lack of inflation, and the higher yields offered by US government bonds compared to the government bonds of other developed countries fueled demand for Treasury securities, pushing down their yields.

In the second calendar quarter, the global economy remained subdued. The powerful, year-long rally in German bonds brought the 10-year yield all the way down to an intraday low of 5 bps on April 17th—less than three weeks into the ECB’s quantitative easing (QE) program. Next, the bubble popped. Bonds sold off aggressively, with the yield rising 101 bps, reaching a high for the quarter of 1.06% on June 10th—a breathtaking move. Treasuries followed bond yields higher along the entire curve. US agency mortgage-backed securities (MBS) generally performed in line with Treasuries. Top-of-the-capital structure commercial mortgage-backed securities (CMBS) remained attractive, although their spreads (yield differentials) versus interest rate swaps widened near quarter-end. Top-of-the-capital structure CMBS are those A-rated or higher.

The third quarter was dominated by concerns about weakening global growth, turbulence in the international equity markets, and anticipation of a potential rate hike by the Federal Reserve (“Fed”). The increased volatility drove a decline in long-term yields, including that of the 10-year US Treasury. Treasuries overall recorded a positive return. Agency MBS also performed well, though they slightly lagged Treasuries. In general, the MBS sector benefited from declining prepayment speeds as primary mortgage interest rates remained in a fairly narrow range. The Fed’s MBS reinvestment program continued, helping to absorb supply. CMBS underperformed Treasuries during the third quarter.

In the fourth quarter, global market turbulence calmed, opening the door for the Fed to raise the target federal funds rate for the first time in nearly 10 years. The Treasury yield curve flattened, with yields rising considerably in the two-year to 10-year segment of the curve and 30-year yields remaining relatively unchanged. Agency MBS outperformed Treasuries. The Fed’s MBS reinvestment program continued at approximately $24 billion per month, helping to absorb supply. CMBS spreads widened amid unfavorable supply and demand conditions.

Prudential Government Income Fund 9

Strategy and Performance Overview (continued)

During January 2016, volatility returned to the global markets, driving a sustained rally in Treasury prices. The Treasury yield curve flattened as yields across the maturity spectrum fell. US economic data was mixed, with softer domestic demand on one hand and improving employment conditions on the other. Agency MBS underperformed Treasuries during the month. At the same time, CMBS spreads continued to widen.

Global market volatility persisted in early February, moderating in the middle of the month. The Treasury yield curve continued to flatten across the maturity spectrum. Agency MBS underperformed Treasuries, while CMBS were generally flat for the month.

What worked?

• Security selection contributed positively during the reporting period, with the Fund’s higher-quality bias within CMBS adding to results.

• Holdings among MBS, agencies, and collateralized loan obligations enhanced returns.

• Tactically trading the agency MBS basis by increasing and decreasing allocations to agency mortgages versus rate product, such as Treasuries, bolstered Fund performance.

• The Fund also benefited from its duration strategy. Duration measures the approximate price volatility of a bond portfolio for a given change in interest rates. At period end, the Fund held a slightly long duration position of 0.24 years.

What didn’t work?

• Sector allocations detracted from performance. In particular, the Fund was hurt by its allocation to CMBS.

• Positioning in interest rate swaps dampened the Fund’s results.

• The Fund was hampered by its curve positioning strategy, as the portfolio was positioned to benefit from a flatter yield curve. A curve positioning strategy attempts to gain from changes in the Treasury yield curve.

Did the Fund use derivatives and how did they affect performance?

The Fund held futures contracts on US Treasury securities and on interest rate swaps to help manage the portfolio’s duration and yield curve exposure and to reduce its sensitivity to changes in the levels of interest rates. Overall, this strategy had a negative impact on performance during the reporting period.

Current outlook

Prudential Fixed Income sees several opportunities in the months ahead. The flattening of the US yield curve fits with the process of Fed tightening, and additional flattening may occur in the near term. A flattening yield curve happens when there is little difference

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between short-term and long-term rates for bonds of the same credit quality. This should also help keep long-maturity rates low and range bound. At the end of the period, MBS spreads were tight relative to Treasuries and other high-quality fixed income sectors. Although the Fed’s MBS reinvestment program could continue to be supportive, Prudential Fixed Income expects MBS spreads to be buffeted by expectations about the Fed’s rate-hike path. Mortgage prepayments are likely to remain muted, barring a sharp interest rate rally or the resurfacing of government policy risk. The Fund continues to focus on specified MBS (pools of mortgages with similar characteristics), as well as 30-year MBS because they offer higher liquidity and more attractive valuations than intermediate MBS. In addition, Prudential Fixed Income continues to view CMBS as fundamentally attractive.

Prudential Government Income Fund 11

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 September 1, 2015, at the beginning of the period, and held through the six-month period ended February 29, 2016. 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 Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your

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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 September 1, 2015		Ending Account Value February 29, 2016		Annualized Expense Ratio Based on the Six-Month Period			Expenses  Paid During the Six-Month Period*
Class A	Actual	$	1,000.00	$	1,018.20		0.98	%	$	4.92
	Hypothetical	$	1,000.00	$	1,019.99		0.98	%	$	4.92
Class B	Actual	$	1,000.00	$	1,013.60		1.73	%	$	8.66
	Hypothetical	$	1,000.00	$	1,016.26		1.73	%	$	8.67
Class C	Actual	$	1,000.00	$	1,014.60		1.73	%	$	8.67
	Hypothetical	$	1,000.00	$	1,016.26		1.73	%	$	8.67
Class R	Actual	$	1,000.00	$	1,015.80		1.23	%	$	6.16
	Hypothetical	$	1,000.00	$	1,018.75		1.23	%	$	6.17
Class Z	Actual	$	1,000.00	$	1,019.50		0.73	%	$	3.67
	Hypothetical	$	1,000.00	$	1,021.23		0.73	%	$	3.67

* 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 182

days in the six-month period ended February 29, 2016, and divided by the 366 days in the Fund’s fiscal year ended

February 29, 2016 (to reflect the six-month period). Expenses presented in the table include the expenses of any

underlying portfolios in which the Fund may invest.

The Fund’s expense ratios for the 12-month period ended February 29, 2016, are as follows:

Class	Gross Operating Expenses (%)	Net Operating Expenses (%)
A	0.99	0.99
B	1.74	1.74
C	1.74	1.74
R	1.49	1.24
Z	0.74	0.74

Prudential Government Income Fund 13

Fees and Expenses (continued)

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.

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Portfolio of Investments

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS    98.9%
ASSET-BACKED SECURITIES    3.2%
Collateralized Loan Obligations    3.1%
Battalion CLO VII Ltd., Series 2014-7A, Class A1, 144A	2.220%(a)		10/17/26		1,250	$	1,222,659
Catamaran CLO Ltd., Series 2015-1A, Class A, 144A	2.171(a)		04/22/27		1,000		973,219
Flatiron CLO Ltd., Series 2013-1A, Class A1, 144A	2.020(a)		01/17/26		500		489,328
Magnetite CLO Ltd., Series 2014-9A, Class A1, 144A	2.039(a)		07/25/26		2,250		2,222,526
Magnetite VIII Ltd., Series 2014-8A, Class A, 144A	2.102(a)		04/15/26		2,500		2,477,177
Neuberger Berman CLO XVI Ltd., Series 2014-16A, Class A1, 144A	2.092(a)		04/15/26		500		491,999
OZLM Funding Ltd., Series 2012-1A, Class A1R, 144A	2.141(a)		07/22/27		1,000		990,480
Palmer Square CLO Ltd., Series 2015-1A, Class A1, 144A	2.118(a)		05/21/27		750		732,436
Shackleton CLO V Ltd., Series 2014-5A, Class A, 144A	2.120(a)		05/07/26		1,250		1,225,739
Sound Point CLO IX Ltd., Series 2015-2A, Class A, 144A	2.144(a)		07/20/27		1,250		1,209,237
Vibrant CLO Ltd., Series 2015-3A, Class A1, 144A	2.254(a)		04/20/26		3,750		3,691,239
							15,726,039
Non-Residential Mortgage-Backed Security    0.1%
Madison Park Funding X Ltd., Series 2012-10A, Class A1A, 144A	1.994(a)		01/20/25		750		744,539
TOTAL ASSET-BACKED SECURITIES (cost $16,715,931)							16,470,578
COMMERCIAL MORTGAGE-BACKED SECURITIES    24.7%
Citigroup Commercial Mortgage Trust, Series 2015-GC33, Class A3	3.515		09/10/58		2,500		2,585,494
Commercial Mortgage Pass-Through Certificates, Series 2012-CR5, Class A3	2.540		12/10/45		2,000		2,002,480
Fannie Mae-ACES,
Series 2012-M13, Class A2	2.377		05/25/22		3,250		3,326,593
Series 2012-M2, Class A2	2.717		02/25/22		270		279,206
Series 2014-M2, Class A2	3.513(a)		12/25/23		3,950		4,261,345
Series 2015-M1, Class AB2	2.465		09/25/24		1,000		1,018,982
Series 2015-M17, Class A2	2.940(a)		11/25/25		2,900		3,003,140

See Notes to Financial Statements.

Prudential Government Income Fund 15

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued)
FHLMC Multifamily Structured Pass-Through Certificates,
Series K003, Class A5	5.085%		03/25/19		500	$	549,232
Series K004, Class A2	4.186		08/25/19		8,500		9,237,868
Series K005, Class A2	4.317		11/25/19		1,900		2,089,531
Series K008, Class X1, I/O	1.643(a)		06/25/20		27,588		1,432,070
Series K019, Class X1, I/O	1.718(a)		03/25/22		26,323		2,196,275
Series K020, Class X1, I/O	1.452(a)		05/25/22		14,837		1,100,124
Series K021, Class X1, I/O	1.491(a)		06/25/22		16,113		1,211,984
Series K024, Class A2	2.573		09/25/22		5,125		5,300,019
Series K025, Class X1, I/O	0.892(a)		10/25/22		41,305		1,941,462
Series K026, Class A2	2.510		11/25/22		6,400		6,592,588
Series K029, Class A2	3.320(a)		02/25/23		6,400		6,910,296
Series K032, Class A2	3.310(a)		05/25/23		5,100		5,468,467
Series K033, Class A2	3.060(a)		07/25/23		6,400		6,757,886
Series K034, Class A2	3.531(a)		07/25/23		7,800		8,471,281
Series K038, Class A2	3.389		03/25/24		6,800		7,345,785
Series K041, Class A2	3.171		10/25/24		6,000		6,354,906
Series K044, Class A2	2.811		01/25/25		5,000		5,146,022
Series K045, Class A2	3.023		01/25/25		6,000		6,270,200
Series K501, Class X1A, I/O	1.546(a)		08/25/16		4,798		15,728
Series K710, Class X1, I/O	1.766(a)		05/25/19		12,773		608,078
Series K711, Class X1, I/O	1.699(a)		07/25/19		12,569		581,340
Series KS03, Class A4	3.161		05/25/25		10,000		10,519,233
JPMBB Commercial Mortgage Securities Trust,
Series 2014-C23, Class A3	3.368		09/15/47		2,500		2,579,648
Series 2016-C1, Class A3	3.515		03/15/49		2,500		2,607,808
JPMorgan Chase Commercial Mortgage Securities Trust,
Series 2006-LDP7, Class AM	5.930(a)		04/17/45		1,315		1,319,504
Series 2007-LD11, Class A3	5.782(a)		06/15/49		308		309,118
Series 2013-LC11, Class A4	2.694		04/15/46		1,000		996,151
Morgan Stanley Bank of America Merrill Lynch Trust, Series 2013-C9, Class A3	2.834		05/15/46		1,000		1,004,975
UBS-Barclays Commercial Mortgage Trust, Series 2012-C4, Class A4	2.792		12/10/45		2,400		2,408,664
Wells Fargo Commercial Mortgage Trust, Series 2015-LC22, Class A3	3.572		09/15/58		2,500		2,581,816
TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (cost $123,289,622)							126,385,299

See Notes to Financial Statements.

16

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
CORPORATE BONDS    1.1%
Diversified Financial Services    1.1%
Private Export Funding Corp., U.S. Gov’t. Gtd. Notes	3.550%		01/15/24		2,085	$	2,290,066
Private Export Funding Corp., U.S. Gov’t. Gtd. Notes	4.300		12/15/21		2,660		3,022,247
TOTAL CORPORATE BONDS (cost $5,256,105)							5,312,313
FOREIGN GOVERNMENT AGENCY OBLIGATION    0.2%
CDP Financial, Inc. (Canada), Sr. Unsec’d. Notes, 144A (cost $1,166,235)(b)	3.150		07/24/24		1,170		1,223,815
RESIDENTIAL MORTGAGE-BACKED SECURITIES    0.1%
Fannie Mae REMICS, Series 2002-57, Class ND	5.500		09/25/17		96		97,293
Merrill Lynch Mortgage Investors Trust, Series 2003-E, Class A1	1.056(a)		10/25/28		117		111,223
Structured Adjustable Rate Mortgage Loan Trust, Series 2004-1, Class 4A3	2.786(a)		02/25/34		492		485,421
TOTAL RESIDENTIAL MORTGAGE-BACKED SECURITIES (cost $707,413)							693,937
SMALL BUSINESS ADMINISTRATION AGENCIES    0.1%
Small Business Administration Participation Certificates,
Series 1996-20H, Class 1, U.S. Govt. Gtd. Notes	7.250		08/01/16		66		67,296
Series 1996-20K, Class 1, U.S. Govt. Gtd. Notes	6.950		11/01/16		96		97,113
Series 1997-20A, Class 1, U.S. Govt. Gtd. Notes	7.150		01/01/17		33		33,463
Series 1998-20I, Class 1, U.S. Govt. Gtd. Notes	6.000		09/01/18		356		371,790
TOTAL SMALL BUSINESS ADMINISTRATION AGENCIES (cost $550,634)							569,662
U.S. GOVERNMENT AGENCY OBLIGATIONS    48.2%
Federal Home Loan Banks	1.000		12/19/17		4,400		4,416,434
Federal Home Loan Mortgage Corp.	0.750		01/12/18		1,425		1,422,257
Federal Home Loan Mortgage Corp.	2.479(a)		05/01/34		820		861,978
Federal Home Loan Mortgage Corp.	2.500		03/01/30		1,819		1,868,660
Federal Home Loan Mortgage Corp.	3.000		10/01/28-06/01/29		1,613		1,692,642

See Notes to Financial Statements.

Prudential Government Income Fund 17

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued)
Federal Home Loan Mortgage Corp.	3.500%		08/01/26-06/01/42		3,941	$	4,145,490
Federal Home Loan Mortgage Corp.	4.000		TBA		500		532,783
Federal Home Loan Mortgage Corp.	4.000		06/01/26-12/01/40		6,261		6,688,046
Federal Home Loan Mortgage Corp.	4.500		09/01/39		3,172		3,446,541
Federal Home Loan Mortgage Corp.	5.000		06/01/33-05/01/34		3,900		4,324,084
Federal Home Loan Mortgage Corp.	5.500		05/01/37-01/01/38		458		513,837
Federal Home Loan Mortgage Corp.	6.000		08/01/32-09/01/34		373		424,355
Federal Home Loan Mortgage Corp.	6.500		09/01/32		354		405,509
Federal Home Loan Mortgage Corp.	7.000		09/01/32		35		36,797
Federal Home Loan Mortgage Corp.	8.000		03/01/22-08/01/22		27		27,242
Federal Home Loan Mortgage Corp.	8.500		02/01/17-09/01/19		14		14,307
Federal Home Loan Mortgage Corp.	9.000		01/01/20		8		8,565
Federal National Mortgage Association	1.500		11/30/20		2,050		2,059,168
Federal National Mortgage Association(b)	1.625		01/21/20		765		776,290
Federal National Mortgage Association	2.117(a)		04/01/34		347		366,252
Federal National Mortgage Association	2.293(a)		07/01/33		2,243		2,371,410
Federal National Mortgage Association	2.350(a)		06/01/34		752		797,551
Federal National Mortgage Association	2.397(a)		04/01/34		692		728,075
Federal National Mortgage Association	2.500		TBA		21,000		21,500,555
Federal National Mortgage Association	3.000		TBA		26,000		26,660,829
Federal National Mortgage Association	3.000		01/01/27-07/01/43		8,885		9,194,568
Federal National Mortgage Association	3.500		TBA		14,250		14,929,811
Federal National Mortgage Association	3.500		09/01/26-05/01/42		13,455		14,148,540
Federal National Mortgage Association	4.000		TBA		5,500		5,860,292
Federal National Mortgage Association	4.000		09/01/40-09/01/44		5,374		5,743,678
Federal National Mortgage Association	4.500		01/01/20-04/01/41		2,877		3,129,395
Federal National Mortgage Association	5.000		TBA		1,500		1,661,042
Federal National Mortgage Association	5.000		07/01/18-05/01/36		2,621		2,846,801
Federal National Mortgage Association	5.500		02/01/17-11/01/36		9,257		10,451,291
Federal National Mortgage Association	6.000		08/01/21-05/01/36		2,580		2,946,209
Federal National Mortgage Association	6.250		05/15/29		210		299,922
Federal National Mortgage Association(c)	6.500		07/01/32		1,299		1,558,737
Federal National Mortgage Association	6.500		08/01/32-10/01/37		2,750		3,277,536
Federal National Mortgage Association	7.000		05/01/24-02/01/36		933		1,041,139
Federal National Mortgage Association	9.000		04/01/25		7		8,349
Federal National Mortgage Association	9.500		01/01/25-02/01/25		19		19,814
Financing Corp., FICO STRIPS P/O,
Series 4P, Debs.	1.390(d)		10/06/17		2,640		2,594,719
Series D-P, Sec’d. Notes	2.224(d)		09/26/19		2,090		2,003,014
Freddie Mac REMICS,
Series 2002-2496, Class PM	5.500		09/15/17		400		409,234
Series 2002-2501, Class MC	5.500		09/15/17		101		102,962
Series 2002-2513, Class HC	5.000		10/15/17		703		717,418

See Notes to Financial Statements.

18

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
U.S. GOVERNMENT AGENCY OBLIGATIONS (Continued)
Government National Mortgage Association	3.000%		03/15/45		4,384	$	4,542,000
Government National Mortgage Association	3.500		TBA		8,000		8,431,250
Government National Mortgage Association(e)	3.500		TBA		18,250		19,270,859
Government National Mortgage Association	3.500		04/20/45-07/20/45		5,494		5,810,795
Government National Mortgage Association	4.000		TBA		4,000		4,271,485
Government National Mortgage Association	4.000		02/20/41		1,028		1,107,719
Government National Mortgage Association	4.500		TBA		3,500		3,794,903
Government National Mortgage Association	4.500		02/20/40-03/20/41		3,866		4,213,267
Government National Mortgage Association	5.000		07/15/33-04/15/34		2,099		2,356,271
Government National Mortgage Association	5.500		02/15/34-02/15/36		878		1,008,056
Government National Mortgage Association	7.000		03/15/22-02/15/29		1,608		1,701,069
Government National Mortgage Association	7.500		01/15/23-07/15/24		223		236,069
Government National Mortgage Association	8.500		04/15/25		216		259,489
Government National Mortgage Association	9.500		09/15/16-08/20/21		35		35,343
Hashemite Kingdom of Jordan, USAID Bond, U.S. Gov’t. Gtd. Notes	2.503		10/30/20		1,416		1,479,546
U.S. Gov’t. Gtd. Notes	2.578		06/30/22		2,285		2,396,254
U.S. Gov’t. Gtd. Notes	3.000		06/30/25		1,565		1,673,829
Residual Funding Corp. Principal Strip, Bonds	1.825(d)		10/15/19		4,305		4,090,172
Bonds	1.903(d)		10/15/20		115		106,936
Sr. Unsec’d. Notes	2.066(d)		07/15/20		2,196		2,053,668
Tennessee Valley Authority, Sr. Unsec’d. Notes	6.750		11/01/25		1,300		1,775,349
Sr. Unsec’d. Notes	7.125		05/01/30		965		1,427,763
Ukraine Government AID Bonds, U.S. Gov’t. Gtd. Notes	1.847		05/29/20		4,955		5,038,627
TOTAL U.S. GOVERNMENT AGENCY OBLIGATIONS (cost $240,159,758)							246,114,847
U.S. TREASURY OBLIGATIONS    21.3%
U.S. Treasury Bonds	2.500		02/15/45		1,865		1,816,918
U.S. Treasury Bonds	2.750		11/15/42		6,915		7,152,703
U.S. Treasury Bonds(f)	2.875		05/15/43		2,775		2,935,756
U.S. Treasury Bonds	3.000		05/15/45-11/15/45		8,360		9,026,074
U.S. Treasury Inflation Indexed Bonds, TIPS	0.125		04/15/20		16,768		16,919,021
U.S. Treasury Inflation Indexed Bonds, TIPS(b)	0.625		01/15/26		1,165		1,201,451
U.S. Treasury Inflation Indexed Bonds, TIPS	0.750		02/15/45		4,566		4,246,676
U.S. Treasury Notes	1.125		02/28/21		1,865		1,855,675

See Notes to Financial Statements.

Prudential Government Income Fund 19

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
U.S. TREASURY OBLIGATIONS (Continued)
U.S. Treasury Notes	1.375%		04/30/20		6,195	$	6,247,273
U.S. Treasury Notes	1.500		02/28/23		4,315		4,307,751
U.S. Treasury Notes	1.625		02/15/26		2,935		2,904,274
U.S. Treasury Notes(c)	1.750		03/31/22		11,125		11,321,857
U.S. Treasury Notes	2.000		11/30/22-02/15/25		13,655		14,001,579
U.S. Treasury Notes(f)	2.125		12/31/21		1,960		2,038,094
U.S. Treasury Notes	2.125		05/15/25		2,920		3,016,953
U.S. Treasury Notes	2.625		11/15/20		1,440		1,530,056
U.S. Treasury STRIPS	2.037(d)		02/15/22		1,875		1,710,594
U.S. Treasury STRIPS	2.184(d)		02/15/28		695		538,578
U.S. Treasury STRIPS	2.241(d)		05/15/28		345		264,986
U.S. Treasury STRIPS	2.280(d)		02/15/29		345		258,701
U.S. Treasury STRIPS	2.384(d)		05/15/29		710		528,682
U.S. Treasury STRIPS	2.404(d)		08/15/21		5,070		4,683,463
U.S. Treasury STRIPS	3.076(d)		08/15/24		6,700		5,743,595
U.S. Treasury STRIPS, P/O	2.455(d)		05/15/43		2,950		1,409,823
U.S. Treasury STRIPS, P/O	2.873(d)		05/15/45		2,470		1,104,048
U.S. Treasury STRIPS, P/O	3.005(d)		11/15/44		1,045		473,942
U.S. Treasury STRIPS, P/O	3.626(d)		05/15/44		2,865		1,337,141
TOTAL U.S. TREASURY OBLIGATIONS (cost $105,355,445)							108,575,664
TOTAL LONG-TERM INVESTMENTS (cost $493,201,143)							505,346,115
SHORT-TERM INVESTMENTS    24.3%
				Shares
AFFILIATED MUTUAL FUNDS    24.3%
Prudential Investment Portfolios 2 - Prudential Core Short-Term Bond Fund (cost $9,468,556)(Note 3)(g)					1,076,964		9,983,461
Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $114,229,925; includes $9,948,516 of cash collateral for securities on loan)(Note 3)(g)(h)					114,229,925		114,229,925
TOTAL AFFILIATED MUTUAL FUNDS (cost $123,698,481)(Note 3)							124,213,386

See Notes to Financial Statements.

20

Description	Counterparty	Notional Amount (000)#		Value (Note 1)
OPTIONS PURCHASED*
Call Options
Interest Rate Swap Options,
Receive a fixed rate of 0.25% and pay a floating rate based on 3 Month LIBOR, expiring 03/14/16	Barclays Capital Group		156,200	$	—
Receive a fixed rate of 0.25% and pay a floating rate based on 3 Month LIBOR, expiring 05/19/16	Barclays Capital Group		156,200		404
Receive a fixed rate of 0.55% and pay a floating rate based on 3 Month LIBOR, expiring 03/14/16	Barclays Capital Group		78,100		35
Receive a fixed rate of 0.55% and pay a floating rate based on 3 Month LIBOR, expiring 05/19/16	Barclays Capital Group		78,100		9,433
					9,872
Put Options
Interest Rate Swap Options,
Pay a fixed rate of 2.25% and receive a floating rate based on 3 Month LIBOR, expiring 03/02/16	Citigroup Global Markets		7,760		87
Pay a fixed rate of 2.65% and receive a floating rate based on 3 Month LIBOR, expiring 03/02/16	Citigroup Global Markets		7,760		—
					87
TOTAL OPTIONS PURCHASED (cost $251,996)					9,959
TOTAL SHORT-TERM INVESTMENTS (cost $123,950,477)					124,223,345
TOTAL INVESTMENTS, BEFORE OPTIONS WRITTEN    123.2% (cost $617,151,620)					629,569,460
OPTIONS WRITTEN*
Call Options
Interest Rate Swap Options,
Pay a fixed rate of 0.35% and receive a floating rate based on 3 Month LIBOR, expiring 03/14/16	Barclays Capital Group		234,300		—
Pay a fixed rate of 0.35% and receive a floating rate based on 3 Month LIBOR, expiring 05/19/16	Barclays Capital Group		234,300		(2,717	)
					(2,717	)

See Notes to Financial Statements.

Prudential Government Income Fund 21

Portfolio of Investments (continued)

as of February 29, 2016

Description	Counterparty	Notional Amount (000)#		Value (Note 1)
OPTIONS WRITTEN* (Continued)
Put Option
Interest Rate Swap Option,
Receive a fixed rate of 2.50% and pay a floating rate based on 3 Month LIBOR, expiring 03/02/16	Citigroup Global Markets		15,520	$	—
TOTAL OPTIONS WRITTEN (premiums received $87,863)					(2,717	)
TOTAL INVESTMENTS, NET OF OPTIONS WRITTEN    123.2% (cost $617,063,757) (Note 5)					629,566,743
Liabilities in excess of other assets(i)    (23.2)%					(118,637,097	)
NET ASSETS 100.0%				$	510,929,646

The following abbreviations are used in the annual report:

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 Enhancements Securities

AID—Agency for International Development

CLO—Collateralized Loan Obligation

FHLMC—Federal Home Loan Mortgage Corp.

FICO—Financing Corp.

I/O—Interest Only

LIBOR—London Interbank Offered Rate

OTC—Over-the-counter

P/O—Principal Only

REMICS—Real Estate Mortgage Investment Conduit Security

STRIPS—Separate Trading of Registered Interest and Principal of Securities

TBA—To Be Announced

TIPS—Treasury Inflation-Protected Securities

USAID—United States Agency for International Development

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

* Non-income producing security.

(a) Variable rate instrument. The interest rate shown reflects the rate in effect at February 29, 2016.

(b) All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $9,779,827; cash collateral of $9,948,516 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. Securities on loan are subject to contractual netting arrangements.

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

(d) Represents zero coupon bond or principal only securities. Rate represents yield to maturity at purchase date.

(e) All or partial principal amount represents “TBA” mortgage dollar rolls. The aggregate mortgage dollar roll principal amount of $18,250,000 is approximately 3.6% of net assets.

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

See Notes to Financial Statements.

22

(g) 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.

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

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

Futures contracts outstanding at February 29, 2016:

Number of Contracts		Type	Expiration Date		Value at Trade Date		Value at February 29, 2016		Unrealized Appreciation (Depreciation)(1)
		Long Positions:
	288	90 Day Euro Dollar		Mar. 2016	$	71,561,534	$	71,523,000	$	(38,534	)
	92	2 Year U.S. Treasury Notes		Mar. 2016		19,991,490		20,109,188		117,698
	124	2 Year U.S. Treasury Notes		Jun. 2016		27,113,457		27,099,812		(13,645	)
	71	10 Year U.S. Treasury Notes		Mar. 2016		8,909,209		9,294,344		385,135
	199	10 Year U.S. Treasury Notes		Jun. 2016		25,927,470		25,972,609		45,139
	24	U.S. Ultra Bonds		Mar. 2016		3,758,813		4,110,750		351,937
	214	U.S. Ultra Bonds		Jun. 2016		37,032,626		37,055,437		22,811
										870,541
		Short Positions:
	288	90 Day Euro Dollar		Sep. 2016		71,329,666		71,434,800		(105,134	)
	220	5 Year U.S. Treasury Notes		Jun. 2016		26,619,416		26,616,562		2,854
	242	U.S. Long Bonds		Jun. 2016		40,090,074		39,816,563		273,511
										171,231
									$	1,041,772

(1) A U.S. Government Agency Obligation and a U.S. Treasury Obligation with a combined market value of $1,496,306 have been segregated with JPMorgan Chase to cover requirements for open futures contracts at February 29, 2016.

Interest rate swap agreements outstanding at February 29, 2016:

Notional Amount (000)#		Termination Date		Fixed Rate		Floating Rate	Fair Value		Upfront Premiums Paid (Received)		Unrealized Appreciation		Counterparty
	OTC swap agreements:
	7,700		02/15/19		1.794%	3 Month LIBOR(2)	$	199,542	$	—	$	199,542	JPMorgan Chase

See Notes to Financial Statements.

Prudential Government Income Fund 23

Portfolio of Investments (continued)

as of February 29, 2016

Interest rate swap agreements outstanding at February 29, 2016 (continued):

Notional Amount (000)#		Termination Date		Fixed Rate		Floating Rate	Value at Trade Date			Value at February 29, 2016			Unrealized Appreciation (Depreciation)
	Centrally cleared swap agreements:
	7,700		02/15/19		1.656%	3 Month LIBOR(1)	$	(142,074	)	$	(164,619	)	$	(22,545	)
	8,970		05/31/20		1.131%	3 Month LIBOR(1)		(7,915	)		(22,419	)		(14,504	)
	5,180		09/04/20		1.585%	3 Month LIBOR(1)		171			(113,765	)		(113,936	)
	35,980		01/06/21		1.750%	3 Month LIBOR(2)		296			1,065,390			1,065,094
	51,530		01/08/21		1.683%	3 Month LIBOR(2)		428			1,359,864			1,359,436
	23,065		01/19/21		1.445%	3 Month LIBOR(1)		275			(345,983	)		(346,258	)
	11,860		09/17/21		2.358%	3 Month LIBOR(2)		221			736,863			736,642
	6,200		01/13/22		2.351%	3 Month LIBOR(1)		188			(392,236	)		(392,424	)
	7,335		01/13/22		2.480%	3 Month LIBOR(1)		194			(518,356	)		(518,550	)
	2,590		01/22/22		2.467%	3 Month LIBOR(1)		165			(181,632	)		(181,797	)
	47,070		05/31/22		2.200%	3 Month LIBOR(1)		(53,568	)		(2,678,902	)		(2,625,334	)
	8,210		05/31/22		2.217%	3 Month LIBOR(1)		194			(475,706	)		(475,900	)
	9,055		11/30/22		1.850%	3 Month LIBOR(1)		199			(305,676	)		(305,875	)
	7,560		11/30/22		1.982%	3 Month LIBOR(1)		191			(320,028	)		(320,219	)
	13,090		12/20/23		2.932%	3 Month LIBOR(1)		255			(1,480,125	)		(1,480,380	)
	15,075		08/18/24		2.750%	3 Month LIBOR(2)		185			1,550,837			1,550,652
	8,000		09/17/24		2.732%	3 Month LIBOR(1)		132			(813,496	)		(813,628	)
	2,920		09/04/25		2.214%	3 Month LIBOR(1)		171			(177,228	)		(177,399	)
	25,395		01/08/26		2.210%	3 Month LIBOR(1)		275			(1,524,786	)		(1,525,061	)
	370		09/17/29		3.070%	3 Month LIBOR(2)		12			58,570			58,558
							$	(200,005	)	$	(4,743,433	)	$	(4,543,428	)

U.S. Treasury Obligations with a combined market value of $3,092,771 have been segregated with Citigroup Global Markets to cover requirements for open centrally cleared interest rate swap contracts at February 29, 2016.

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

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

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—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.

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

See Notes to Financial Statements.

24

The following is a summary of the inputs used as of February 29, 2016 in valuing such portfolio securities:

	Level 1		Level 2			Level 3
Investments in Securities
Asset-Backed Securities
Collateralized Loan Obligations	$	—	$	15,726,039		$	—
Non-Residential Mortgage-Backed Security		—		744,539			—
Commercial Mortgage-Backed Securities		—		126,385,299			—
Corporate Bonds		—		5,312,313			—
Foreign Government Agency Obligation		—		1,223,815			—
Residential Mortgage-Backed Securities		—		693,937			—
Small Business Administration Agencies		—		569,662			—
U.S. Government Agency Obligations		—		246,114,847			—
U.S. Treasury Obligations		—		108,575,664			—
Affiliated Mutual Funds		124,213,386		—			—
Options Purchased		—		9,959			—
Options Written		—		(2,717	)		—
Other Financial Instruments*
Futures Contracts		1,041,772		—			—
OTC Interest Rate Swap Agreements		—		199,542			—
Centrally Cleared Interest Rate Swap Agreements		—		(4,543,428	)		—
Total	$	125,255,158	$	501,009,471		$	—

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

The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of February 29, 2016 were as follows (Unaudited):

U.S. Government Agency Obligations	48.2	%
Commercial Mortgage-Backed Securities	24.7
Affiliated Mutual Funds (including 1.9% of collateral for securities on loan)	24.3
U.S. Treasury Obligations	21.3
Collateralized Loan Obligations	3.1
Diversified Financial Services	1.1
Foreign Government Agency Obligations	0.2
Non-Residential Mortgage-Backed Securities	0.1	%
Residential Mortgage-Backed Securities	0.1
Small Business Administration Agencies	0.1
	123.2
Liabilities in excess of other assets	(23.2	)
	100.0	%

See Notes to Financial Statements.

Prudential Government Income Fund 25

Portfolio of Investments (continued)

as of February 29, 2016

The Fund invested in derivative instruments during the reporting period. The primary types 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 February 29, 2016 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 from/to broker—variation margin futures		1,199,085	*	Due from/to broker—variation margin futures		157,313	*
Interest rate contracts	Due from/to broker—variation margin swaps		4,770,382	*	Due from/to broker—variation margin swaps		9,313,810	*
Interest rate contracts	Unrealized appreciation on OTC swap agreements		199,542		Unrealized depreciation on OTC swap agreements		—
Interest rate contracts	Unaffiliated investments		9,959		Options written outstanding, at value		2,717
Total		$	6,178,968			$	9,473,840

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

See Notes to Financial Statements.

26

The effects of derivative instruments on the Statement of Operations for the year ended February 29, 2016 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		Options Purchased*			Options Written		Swaps			Total
Interest rate contracts	$	1,330,124	$	(2,353,735	)	$	457,516	$	(1,752,498	)	$	(2,318,593	)

* Included in net realized gain (loss) on investment transactions in the Statement of Operations.

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income
Derivatives not accounted for as hedging instruments, carried at fair value	Futures		Options Purchased*			Options Written		Swaps			Total
Interest rate contracts	$	691,189	$	(308,302	)	$	111,693	$	(3,547,153	)	$	(3,052,573	)

* Included in net change in unrealized appreciation (depreciation) on investments in the Statement of Operations.

For the year ended February 29, 2016, the Fund’s average volume of derivative activities are as follows:

Options Purchased(1)		Options Written(2)		Futures Contracts— Long Positions(3)		Futures Contracts— Short Positions(3)		Interest Rate Swap Agreements(2)		Total Return Swap Agreements(2)
$	450,816	$	624,948	$	184,036,775	$	68,678,958	$	239,697	$	1,400

(1) Cost.

(2) Notional Amount in USD (000).

(3) Value at Trade Date.

See Notes to Financial Statements.

Prudential Government Income Fund 27

Portfolio of Investments (continued)

as of February 29, 2016

Offsetting of OTC derivative assets and liabilities:

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

Counterparty	Gross Amounts of Recognized Assets(1)			Gross Amounts Available for Offset			Collateral Received(3)		Net Amount
Barclays Capital Group	$	9,872		$	(2,717	)	$	—	$	7,155
Citigroup Global Markets		87			—			—		87
JPMorgan Chase		199,542			—			—		199,542
	$	209,501
Counterparty	Gross amounts of Recognized Liabilities(2)			Gross Amounts Available for Offset			Collateral Pledged(3)		Net Amount
Barclays Capital Group	$	(2,717	)	$	2,717		$	—	$	—
Citigroup Global Markets		—			—			—		—
JPMorgan Chase		—			—			—		—
	$	(2,717	)

(1) Includes unrealized appreciation on swaps and forwards, premiums paid on swap agreements and market value of purchased options.

(2) Includes unrealized depreciation on swaps and forwards, premiums received on swap agreements and market value of written options.

(3) Amounts shown reflect actual collateral received or pledged by the Fund. Such amounts are applied up to 100% of the Fund’s OTC derivative exposure by counterparty.

See Notes to Financial Statements.

28

PRUDENTIAL INVESTMENTS, A PGIM BUSINESS  |  MUTUAL FUNDS

Statement of Assets and Liabilities, Statement of Operations and Statement of Changes in Net Assets

ANNUAL REPORT FEBRUARY 29, 2016

Prudential Government Income Fund

Statement of Assets & Liabilities

as of February 29, 2016

Assets
Investments at value, including securities on loan of $9,779,827:
Unaffiliated investments (cost $493,453,139)	$	505,356,074
Affiliated investments (cost $123,698,481)		124,213,386
Receivable for investments sold		182,000,361
Dividends and Interest receivable		1,597,386
Receivable for Fund shares sold		742,562
Unrealized appreciation on OTC swap agreements		199,542
Due from broker—variation margin futures		60,257
Prepaid expenses		2,490
Total Assets		814,172,058
Liabilities
Payable for investments purchased		291,572,009
Payable to broker for collateral for securities on loan		9,948,516
Payable for Fund shares reacquired		966,508
Accrued expenses and other liabilities		256,265
Management fee payable		202,143
Distribution fee payable		91,237
Due to broker—variation margin swaps		88,958
Affiliated transfer agent fee payable		50,364
Dividends payable		45,211
Payable to custodian		11,331
Deferred directors’ fees		7,153
Options written outstanding, at value (premiums received $87,863)		2,717
Total Liabilities		303,242,412
Net Assets	$	510,929,646
Net assets were comprised of:
Common stock, at par	$	526,018
Paid-in capital in excess of par		501,253,365
		501,779,383
Undistributed net investment income		295,609
Accumulated net realized loss on investment transactions		(344,180	)
Net unrealized appreciation on investments		9,198,834
Net assets, February 29, 2016	$	510,929,646

See Notes to Financial Statements.

30

Class A
Net asset value and redemption price per share ($371,570,566 ÷ 38,240,267 shares of common stock issued and outstanding)	$	9.72
Maximum sales charge (4.50% of offering price)		0.46
Maximum offering price to public	$	10.18
Class B
Net asset value, offering price and redemption price per share ($3,084,515 ÷ 317,057 shares of common stock issued and outstanding)	$	9.73
Class C
Net asset value, offering price and redemption price per share ($12,488,009 ÷ 1,282,701 shares of common stock issued and outstanding)	$	9.74
Class R
Net asset value, offering price and redemption price per share ($15,242,479 ÷ 1,566,494 shares of common stock issued and outstanding)	$	9.73
Class Z
Net asset value, offering price and redemption price per share ($108,544,077 ÷ 11,195,288 shares of common stock issued and outstanding)	$	9.70

See Notes to Financial Statements.

Prudential Government Income Fund 31

Statement of Operations

Year Ended February 29, 2016

Net Investment Income
Income
Interest income	$	8,447,391
Affiliated dividend income		409,036
Affiliated income from securities lending, net		27,353
Total income		8,883,780
Expenses
Management fee		2,496,908
Distribution fee—Class A		933,614
Distribution fee—Class B		31,506
Distribution fee—Class C		105,474
Distribution fee—Class R		103,884
Transfer agent’s fees and expenses (including affiliated expense of $261,300)		840,000
Custodian and accounting fees		153,000
Registration fees		61,000
Shareholders’ reports		60,000
Audit fee		35,000
Legal fees and expenses		23,000
Directors’ fees		19,000
Insurance expenses		6,000
Miscellaneous		15,545
Total expenses		4,883,931
Less: Distribution fee waiver—Class R		(34,629	)
Net expenses		4,849,302
Net investment income		4,034,478
Realized And Unrealized Gain (Loss) On Investments
Net realized gain (loss) on:
Investment transactions (including affiliated: $203,572)		2,516,504
Futures transactions		1,330,124
Options written transactions		457,516
Swap agreement transactions		(1,752,498	)
		2,551,646
Net change in unrealized appreciation (depreciation) on:
Investments (including affiliated: $139,324)		3,221,414
Futures		691,189
Options written		111,693
Swap agreements		(3,547,153	)
		477,143
Net gain on investment transactions		3,028,789
Net Increase In Net Assets Resulting From Operations	$	7,063,267

See Notes to Financial Statements.

32

Statement of Changes in Net Assets

	Year Ended February 29/28,
	2016			2015
Increase (Decrease) in Net Assets
Operations
Net investment income	$	4,034,478		$	5,931,002
Net realized gain on investment transactions		2,551,646			7,101,706
Net change in unrealized appreciation (depreciation) on investments		477,143			7,293,500
Net increase in net assets resulting from operations		7,063,267			20,326,208
Dividends and Distributions (Note 1)
Dividends from net investment income
Class A		(3,797,611	)		(4,896,033	)
Class B		(9,444	)		(21,903	)
Class C		(30,808	)		(47,792	)
Class R		(106,166	)		(116,553	)
Class Z		(1,238,123	)		(1,165,689	)
		(5,182,152	)		(6,247,970	)
Distributions from net realized gains
Class A		(4,208,227	)		—
Class B		(38,301	)		—
Class C		(113,527	)		—
Class R		(150,428	)		—
Class Z		(983,440	)		—
		(5,493,923	)		—
Fund share transactions (Net of share conversions) (Note 6)
Net proceeds from shares sold		127,492,469			84,857,448
Net asset value of shares issued in reinvestment of dividends and distributions		9,357,356			5,397,121
Cost of shares reacquired		(135,794,341	)		(104,479,092	)
Net increase (decrease) in net assets from Fund share transactions		1,055,484			(14,224,523	)
Total decrease		(2,557,324	)		(146,285	)
Net Assets:
Beginning of year		513,486,970			513,633,255
End of year(a)	$	510,929,646		$	513,486,970
(a) Includes undistributed net investment income of:	$	295,609		$	249,759

See Notes to Financial Statements.

Prudential Government Income Fund 33

Notes to Financial Statements

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 Fund follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services-Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Company and the Fund consistently follows such policies in the preparation of its financial statements.

Securities Valuation: The Fund holds 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 Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to Prudential Investments LLC (“PI” or “Manager”). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.

Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.

Common and preferred stocks, exchange-traded funds, and derivative instruments such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. 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 in the fair value hierarchy.

34

In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.

Common and preferred 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. Such securities are valued using model prices to the extent that the valuation meets the established confidence level for each security. If the confidence level is not met or the vendor does not provide a model price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.

Participatory notes (P-notes) are generally valued based upon the value of a related underlying security that trades actively in the market and are classified as Level 2 in the fair value hierarchy.

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 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.

Fixed income securities traded in the OTC market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices after evaluating observable inputs including, but not limited to yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations, and reported trades. Securities valued using such vendor prices are classified as Level 2 in the fair value hierarchy.

Bank loans traded in the OTC market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Bank loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy.

OTC derivative instruments are generally valued using pricing vendor services, which derive the valuation based on inputs such as underlying asset prices, indices, spreads, interest rates, and exchange rates. These instruments are categorized as Level 2 in the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are generally valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.

Prudential Government Income Fund 35

Notes to Financial Statements (continued)

Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in 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.

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 (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.

The Fund invested 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 or foreign currency exchange 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 risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets. With exchange-traded futures contracts, there is minimal counterparty credit risk to the Fund since the exchanges’ clearing house acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.

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 which the Fund currently owns or

36

intends to purchase. The Fund may also use options to gain additional market exposure. 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 (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 of the purchase in determining whether the Fund has realized a gain (loss). The difference between the premium and the amount received or paid at the closing of a purchase or sale transaction is also treated as a realized gain (loss). Gain (loss) on purchased options is included in net realized gain (loss) on investment transactions. Gain or loss on written options is presented separately as net realized gain (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 underlying the written option. The Fund, as purchaser of an OTC option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts.

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

Forward Rate Agreements: Forward rate agreements represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount on a fixed future date. The Fund entered into forward rate agreements to gain yield exposure based on anticipated market conditions at the specified termination date of the agreement.

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 OTC market and may be executed either directly with counterparty (“OTC-traded”) or through a central clearing facility, such as a registered commodities exchange. 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. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. Payments received or paid by the Fund are recorded as realized gains (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 agreements between counterparties to exchange cash flows based on the difference between two interest rates, applied to a

Prudential Government Income Fund 37

Notes to Financial Statements (continued)

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 either maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments or to increase exposure to prevailing market rates by receiving floating rate payments using interest rate swap contracts. 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.

When-Issued and Delayed-Delivery Securities: The Fund may purchase securities, including money market obligations, municipal bonds or other obligations, on a when-issued, delayed-delivery or forward commitment basis. When the Fund makes this type of purchase, the price and interest rate are fixed at the time of purchase, but delivery and payment for the obligations take place at a later time. The Fund does not earn interest income until the date the obligations are expected to be delivered. These types of investments potentially leverage the Fund, which could magnify losses. The Fund will segregate liquid assets, marked-to-market daily, with a value equal to any such investments.

Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral 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. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, 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, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.

The Fund is a party to ISDA (International Swaps and Derivatives Association, Inc.) Master Agreements with certain counterparties that govern OTC 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 Fund is held in a segregated account by the Fund’s custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Portfolio of Investments. Collateral pledged by the Fund is segregated by the Fund’s custodian and

38

identified in the Portfolio 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 Fund and the applicable counterparty. Collateral requirements are determined based on the Fund’s net position with each counterparty. Termination events applicable to the Fund may occur upon a decline in the Fund’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 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 Fund’s counterparties to elect early termination could impact the Fund’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 OTC 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 February 29, 2016, the Fund has not met conditions under such agreements which give the counterparty the right to call for an early termination.

Written options, forward rate agreements, swaps and financial futures contracts involve elements of market 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 in the open market using the collateral. 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 borrower receives all interest and dividends and such

Prudential Government Income Fund 39

Notes to Financial Statements (continued)

payments are passed back to the lender in amounts equivalent thereto. The Fund also continues to recognize any unrealized gain (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 on investment transactions. 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 and unrealized gains (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 (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-date. Permanent book/tax differences relating to income and gains are reclassified amongst distributions in excess of net income, accumulated net realized gain (loss) and paid-in-capital in excess of par, as appropriate.

Taxes: For federal income tax purposes, each Fund is treated as a separate taxpaying entity. 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.

40

Estimates: The preparation of 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 PGIM, Inc. The subadvisory agreement provides that PGIM, Inc. will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PGIM, Inc. is obligated to keep certain books and records of the Fund. PI pays for the services of PGIM, Inc., 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. Prior to January 4, 2016, PGIM, Inc. was known as Prudential Investment Management, Inc. (“PIM”).

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 year ended February 29, 2016.

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.

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. PIMS has contractually agreed to limit such fees to .25% and .50% of the average daily net assets of the Class A and R shares, respectively. Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets of the Class A shares and the .05% contractual 12b-1 fee waiver was terminated.

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 year ended February 29, 2016.

Prudential Government Income Fund 41

Notes to Financial Statements (continued)

PIMS has advised the Fund that it has received $82,209 in front-end sales charges resulting from sales of Class A shares, for the year ended February 29, 2016. 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 year ended February 29, 2016, it received $3,189 and $1,441 in contingent deferred sales charges imposed upon redemptions by certain Class B and Class C shareholders, respectively.

PI, PGIM, Inc. 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’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

PGIM, Inc., an indirect, wholly-owned subsidiary of Prudential, is the Fund’s securities lending agent. Net earnings from securities lending are disclosed on the Statement of Operations as “Affiliated income from securities lending, net”. For the year ended February 29, 2016, PGIM, Inc. has been compensated $7,314 for these services. Effective February 5, 2016, PGIM, Inc. is being paid no compensation for acting as the securities lending agent.

The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board.

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”. As of March 30, 2016, the Core Fund was repositioned as the Prudential Core Ultra Short Bond Fund.

42

Note 4. Portfolio Securities

Cost of purchases and proceeds from sales of portfolio securities, excluding short-term investments, for the year ended February 29, 2016, aggregated $3,035,256,771 and $2,989,518,251, respectively.

Transactions in options written during the year ended February 29, 2016, were as follows:

	Notional Amount (000)			Premiums Received
Options outstanding at February 28, 2015		33,000		$	112,672
Options written		2,646,880			2,028,271
Options closed		(673,100	)		(1,184,877	)
Options expired		(1,522,660	)		(868,203	)
Options outstanding at February 29, 2016		484,120		$	87,863

Note 5. Distributions and Tax Information

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. In order to present undistributed net investment income, accumulated net realized loss on investment transactions and paid-in capital in excess of par on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to undistributed net investment income and accumulated net realized loss on investment transactions. For the year ended February 29, 2016, the adjustments were to increase undistributed net investment income and increase accumulated net realized loss on investment transactions by $1,193,524 due to differences in the treatment for book and tax purposes of premium amortization, paydown gains (losses) and swaps. Net investment income, net realized gain (loss) on investments and net assets were not affected by this change.

For the years ended February 29, 2016 and February 28, 2015, the tax character of dividends paid by the Fund were $10,676,075 and $6,247,970 of ordinary income, respectively.

As of February 29, 2016, the accumulated undistributed earnings on a tax basis was $2,266,886 of ordinary income. This differs from the amount shown on the Statement of Assets and Liabilities primarily due to cumulative timing differences between financial and tax reporting.

The United States federal income tax basis of investments and net unrealized appreciation as of February 29, 2016, were as follows:

Tax Basis	Appreciation	Depreciation	Net Unrealized Appreciation	Other Cost Basis Adjustment	Total Net Unrealized Appreciation
$618,357,385	$13,102,382	$(1,890,307)	$11,212,075	$(4,276,334)	$6,935,741

Prudential Government Income Fund 43

Notes to Financial Statements (continued)

The difference between book basis and tax basis was primarily attributable to deferred losses on wash sales and the difference in the treatment of premium amortization for book and tax purposes. The other cost basis adjustments are primarily attributable to appreciation (depreciation) of swaps, futures and options.

Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

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 CDSC 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.

44

Transactions in shares of common stock were as follows:

Class A	Shares			Amount
Year ended February 29, 2016:
Shares sold		5,000,430		$	48,180,887
Shares issued in reinvestment of dividends and distributions		707,366			6,819,567
Shares reacquired		(6,840,933	)		(65,897,882	)
Net increase (decrease) in shares outstanding before conversion		(1,133,137	)		(10,897,428	)
Shares issued upon conversion from other share class(es)		61,017			586,520
Shares reacquired upon conversion into other share class(es)		(296,520	)		(2,842,038	)
Net increase (decrease) in shares outstanding		(1,368,640	)	$	(13,152,946	)
Year ended February 28, 2015:
Shares sold		3,619,014		$	34,743,521
Shares issued in reinvestment of dividends and distributions		429,024			4,135,143
Shares reacquired		(7,777,158	)		(74,918,150	)
Net increase (decrease) in shares outstanding before conversion		(3,729,120	)		(36,039,486	)
Shares issued upon conversion from other share class(es)		90,374			865,354
Shares reacquired upon conversion into other share class(es)		(79,474	)		(769,653	)
Net increase (decrease) in shares outstanding		(3,718,220	)	$	(35,943,785	)
Class B
Year ended February 29, 2016:
Shares sold		58,501		$	564,915
Shares issued in reinvestment of dividends and distributions		4,173			40,313
Shares reacquired		(76,549	)		(739,211	)
Net increase (decrease) in shares outstanding before conversion		(13,875	)		(133,983	)
Shares reacquired upon conversion into other share class(es)		(57,284	)		(551,231	)
Net increase (decrease) in shares outstanding		(71,159	)	$	(685,214	)
Year ended February 28, 2015:
Shares sold		27,120		$	260,813
Shares issued in reinvestment of dividends and distributions		1,952			18,799
Shares reacquired		(147,233	)		(1,421,312	)
Net increase (decrease) in shares outstanding before conversion		(118,161	)		(1,141,700	)
Shares reacquired upon conversion into other share class(es)		(90,224	)		(865,354	)
Net increase (decrease) in shares outstanding		(208,385	)	$	(2,007,054	)

Prudential Government Income Fund 45

Notes to Financial Statements (continued)

Class C	Shares			Amount
Year ended February 29, 2016:
Shares sold		534,884		$	5,167,891
Shares issued in reinvestment of dividends and distributions		14,028			135,640
Shares reacquired		(285,439	)		(2,752,767	)
Net increase (decrease) in shares outstanding before conversion		263,473			2,550,764
Shares reacquired upon conversion into other share class(es)		(1,938	)		(18,509	)
Net increase (decrease) in shares outstanding		261,535		$	2,532,255
Year ended February 28, 2015:
Shares sold		184,730		$	1,789,108
Shares issued in reinvestment of dividends and distributions		4,566			44,037
Shares reacquired		(329,007	)		(3,174,235	)
Net increase (decrease) in shares outstanding before conversion		(139,711	)		(1,341,090	)
Shares reacquired upon conversion into other share class(es)		(4,340	)		(41,279	)
Net increase (decrease) in shares outstanding		(144,051	)	$	(1,382,369	)
Class R
Year ended February 29, 2016
Shares sold		808,801		$	7,814,755
Shares issued in reinvestment of dividends and distributions		20,354			196,581
Shares reacquired		(598,157	)		(5,772,627	)
Net increase (decrease) in shares outstanding		230,998		$	2,238,709
Year ended February 28, 2015:
Shares sold		791,865		$	7,636,003
Shares issued in reinvestment of dividends and distributions		8,317			80,310
Shares reacquired		(572,631	)		(5,538,348	)
Net increase (decrease) in shares outstanding		227,551		$	2,177,965
Class Z
Year ended February 29, 2016:
Shares sold		6,847,204		$	65,764,021
Shares issued in reinvestment of dividends and distributions		225,119			2,165,255
Shares reacquired		(6,300,385	)		(60,631,854	)
Net increase (decrease) in shares outstanding before conversion		771,938			7,297,422
Shares issued upon conversion from other share class(es)		297,274			2,842,064
Shares reacquired upon conversion into other share class(es)		(1,734	)		(16,806	)
Net increase (decrease) in shares outstanding		1,067,478		$	10,122,680
Year ended February 28, 2015:
Shares sold		4,163,850		$	40,428,003
Shares issued in reinvestment of dividends and distributions		116,189			1,118,832
Shares reacquired		(2,015,405	)		(19,427,047	)
Net increase (decrease) in shares outstanding before conversion		2,264,634			22,119,788
Shares issued upon conversion from other shares class(es)		83,997			810,932
Net increase (decrease) in shares outstanding		2,348,631		$	22,930,720

46

Note 7. Borrowings

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 October 8, 2015 through October 6, 2016. The Funds pay an annualized commitment fee of .11% of the unused portion of the SCA. Prior to October 8, 2015, The Fund had another SCA that provided a commitment of $900 million and the Fund paid an annualized commitment fee of .075% of the unused portion of the SCA. Interest on any borrowings under the SCA is paid at contracted market rates. The Fund’s portion of the commitment fee for the unused amount is accrued daily and paid quarterly.

The Fund did not utilize the SCA during the year ended February 29, 2016.

Note 8. New Accounting Pronouncements

In May 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-07 regarding “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share”. The amendments in this update are effective for the Fund for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU No. 2015-07 will eliminate the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (“NAV”) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. Management has evaluated the implications of ASU No. 2015-07 and has determined that there is no impact on the financial statement disclosures.

In January 2016, the FASB issued ASU No. 2016-01 regarding “Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information and addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The new standard affects all entities that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. At this time, management is evaluating the implications of ASU No. 2016-01 and its impact on the financial statements and disclosures has not yet been determined.

Prudential Government Income Fund 47

Financial Highlights

Class A Shares
	Year Ended February 28/29,
	2016(a)			2015(a)			2014(a)			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.79			$9.52			$9.78			$10.01			$9.57
Income (loss) from investment operations:
Net investment income		.08			.11			.14			.17			.22
Net realized and unrealized gain (loss) on investment transactions		.06			.28			(.19	)		.12			.46
Total from investment operations		.14			.39			(.05	)		.29			.68
Less Dividends and Distributions:
Dividends from net investment income		(.10	)		(.12	)		(.15	)		(.22	)		(.24	)
Distributions from net realized gains		(.11	)		-			(.06	)		(.30	)		-
Total dividends and distributions		(.21	)		(.12	)		(.21	)		(.52	)		(.24	)
Net asset value, end of year		$9.72			$9.79			$9.52			$9.78			$10.01
Total Return(b):		1.41%			4.08%			(.47)%			2.87%			7.18%
Ratios/Supplemental Data:
Net assets, end of year (000)		$371,571			$387,663			$412,384			$469,188			$535,682
Average net assets (000)		$373,443			$403,927			$435,734			$511,930			$533,151
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement(e)		.99%			1.01%			.97%			.93%			.94%
Expenses before waivers and/or expense reimbursement(e)		.99%			1.06%			1.02%			.98%			.99%
Net investment income		.79%			1.15%			1.48%			1.73%			2.21%
Portfolio turnover rate(d)		778%			817%			1,042%			1,251%			1,404%

(a) Calculated based on average shares outstanding during the year.

(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles.

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

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

(e) Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets and the .05% contractual 12b-1 fee waiver was terminated.

See Notes to Financial Statements.

48

Class B Shares
	Year Ended February 28/29,
	2016(a)			2015(a)			2014(a)			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.80			$9.53			$9.80			$10.03			$9.59
Income (loss) from investment operations:
Net investment income		-	(e)		.04			.07			.08			.14
Net realized and unrealized gain (loss) on investment transactions		.07			.27			(.20	)		.13			.47
Total from investment operations		.07			.31			(.13	)		.21			.61
Less Dividends and Distributions:
Dividends from net investment income		(.03	)		(.04	)		(.08	)		(.14	)		(.17	)
Distributions from net realized gains		(.11	)		-			(.06	)		(.30	)		-
Total dividends and distributions		(.14	)		(.04	)		(.14	)		(.44	)		(.17	)
Net asset value, end of year		$9.73			$9.80			$9.53			$9.80			$10.03
Total Return(b):		.69%			3.30%			(1.32)%			2.11%			6.37%
Ratios/Supplemental Data:
Net assets, end of year (000)		$3,085			$3,805			$5,687			$9,408			$13,225
Average net assets (000)		$3,151			$4,682			$7,274			$10,975			$12,988
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.74%			1.76%			1.72%			1.68%			1.69%
Expenses before waivers and/or expense reimbursement		1.74%			1.76%			1.72%			1.68%			1.69%
Net investment income		.04%			.40%			.75%			.98%			1.46%
Portfolio turnover rate(d)		778%			817%			1,042%			1,251%			1,404%

(a) Calculated based on average shares outstanding during the year.

(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles.

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

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

(e) Less than $.005 per share.

See Notes to Financial Statements.

Prudential Government Income Fund 49

Financial Highlights (continued)

Class C Shares
	Year Ended February 28/29,
	2016(a)			2015(a)			2014(a)			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.81			$9.54			$9.80			$10.03			$9.59
Income (loss) from investment operations:
Net investment income		-	(e)		.04			.07			.10			.15
Net realized and unrealized gain (loss) on investment transactions		.07			.27			(.19	)		.11			.46
Total from investment operations		.07			.31			(.12	)		.21			.61
Less Dividends and Distributions:
Dividends from net investment income		(.03	)		(.04	)		(.08	)		(.14	)		(.17	)
Distributions from net realized gains		(.11	)		-			(.06	)		(.30	)		-
Total dividends and distributions		(.14	)		(.04	)		(.14	)		(.44	)		(.17	)
Net asset value, end of year		$9.74			$9.81			$9.54			$9.80			$10.03
Total Return(b):		.69%			3.30%			(1.22)%			2.11%			6.37%
Ratios/Supplemental Data:
Net assets, end of year (000)		$12,488			$10,016			$11,114			$20,274			$21,535
Average net assets (000)		$10,548			$10,394			$15,601			$21,678			$18,831
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.74%			1.76%			1.72%			1.68%			1.69%
Expenses before waivers and/or expense reimbursement		1.74%			1.76%			1.72%			1.68%			1.69%
Net investment income		.03%			.40%			.75%			.97%			1.45%
Portfolio turnover rate(d)		778%			817%			1,042%			1,251%			1,404%

(a) Calculated based on average shares outstanding during the year.

(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles.

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

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

(e) Less than $.005 per share.

See Notes to Financial Statements.

50

Class R Shares
	Year Ended February 28/29,
	2016(a)			2015(a)			2014(a)			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.80			$9.53			$9.80			$10.03			$9.58
Income (loss) from investment operations:
Net investment income		.05			.09			.12			.15			.19
Net realized and unrealized gain (loss) on investment transactions		.06			.27			(.20	)		.11			.48
Total from investment operations		.11			.36			(.08	)		.26			.67
Less Dividends and Distributions:
Dividends from net investment income		(.07	)		(.09	)		(.13	)		(.19	)		(.22	)
Distributions from net realized gains		(.11	)		-			(.06	)		(.30	)		-
Total dividends and distributions		(.18	)		(.09	)		(.19	)		(.49	)		(.22	)
Net asset value, end of year		$9.73			$9.80			$9.53			$9.80			$10.03
Total Return(b):		1.16%			3.82%			(.82)%			2.62%			7.01%
Ratios/Supplemental Data:
Net assets, end of year (000)		$15,242			$13,089			$10,560			$10,316			$8,984
Average net assets (000)		$13,851			$12,178			$10,227			$9,701			$7,400
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.24%			1.26%			1.22%			1.18%			1.19%
Expenses before waivers and/or expense reimbursement		1.49%			1.51%			1.47%			1.43%			1.44%
Net investment income		.53%			.90%			1.22%			1.47%			1.94%
Portfolio turnover rate(d)		778%			817%			1,042%			1,251%			1,404%

(a) Calculated based on average shares outstanding during the year.

(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles.

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

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

See Notes to Financial Statements.

Prudential Government Income Fund 51

Financial Highlights (continued)

Class Z Shares
	Year Ended February 28/29,
	2016(a)			2015(a)			2014(a)			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Year		$9.77			$9.50			$9.76			$9.99			$9.55
Income (loss) from investment operations:
Net investment income		.10			.13			.17			.20			.24
Net realized and unrealized gain (loss) on investment transactions		.06			.28			(.19	)		.11			.46
Total from investment operations		.16			.41			(.02	)		.31			.70
Less Dividends and Distributions:
Dividends from net investment income		(.12	)		(.14	)		(.18	)		(.24	)		(.26	)
Distributions from net realized gains		(.11	)		-			(.06	)		(.30	)		-
Total dividends and distributions		(.23	)		(.14	)		(.24	)		(.54	)		(.26	)
Net asset value, end of year		$9.70			$9.77			$9.50			$9.76			$9.99
Total Return(b):		1.67%			4.34%			(.22)%			3.13%			7.45%
Ratios/Supplemental Data:
Net assets, end of year (000)		$108,544			$98,913			$73,888			$95,710			$95,314
Average net assets (000)		$98,389			$79,893			$83,182			$95,810			$100,654
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		.74%			.76%			.72%			.68%			.69%
Expenses before waivers and/or expense reimbursement		.74%			.76%			.72%			.68%			.69%
Net investment income		1.03%			1.40%			1.74%			1.97%			2.46%
Portfolio turnover rate(d)		778%			817%			1,042%			1,251%			1,404%

(a) Calculated based on average shares outstanding during the year.

(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles.

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

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

See Notes to Financial Statements.

52

Report of Independent Registered Public Accounting Firm

The Board of Directors and Shareholders

Prudential Investment Portfolios, Inc. 14:

We have audited the accompanying statement of assets and liabilities of Prudential Government Income Fund (hereafter referred to as the “Fund”), a series of Prudential Investment Portfolios, Inc. 14, including the portfolio of investments, as of February 29, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and financial highlights for each of the years in the five-year period then ended. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of February 29, 2016, by correspondence with the custodian, transfer agent and brokers or by other appropriate auditing procedures when replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of February 29, 2016, and the results of its operations for the year then ended, the changes in its net assets for each of the years in the two-year period then ended, and the financial highlights for each of the years in the five-year period then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York

April 15, 2016

Prudential Government Income Fund 53

Federal Income Tax Information (unaudited)

For the year ended February 29, 2016, the Fund reports the maximum amount allowable but not less than 59.72% as interest-related dividends in accordance with Section 871(k)(1) and 881(e)(1) of the Internal Revenue Code.

In January 2017, you will be advised on IRS Form 1099-DIV or substitute 1099-DIV, as to the Federal tax status of the dividends received by you in calendar year 2016.

We are required by Massachusetts, Missouri and Oregon to inform you that dividends which have been derived from interest on federal obligations are not taxable to shareholders providing the Mutual Fund meets certain requirements mandated by the respective state’s taxing authorities. We are pleased to report that 18.16% of the dividends paid by the Fund qualify for such deduction.

For more detailed information regarding your state and local taxes, you should contact your tax adviser or the state/local taxing authorities.

54

INFORMATION ABOUT BOARD MEMBERS AND OFFICERS

(Unaudited)

Information about Board Members and Officers of the Funds is set forth below. Board Members who are not deemed to be “interested persons” of the Funds, as defined in the 1940 Act, are referred to as “Independent Board Members.” Board Members who are deemed to be “interested persons” of the Funds are referred to as “Interested Board Members.” The Board Members are responsible for the overall supervision of the operations of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Board in turn elects the Officers, who are responsible for administering the day-to-day operations of the Funds.

Independent Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Ellen S. Alberding (58) Board Member Portfolios Overseen: 67	President and Board Member, The Joyce Foundation (charitable foundation) (since 2002); Vice Chair, City Colleges of Chicago (community college system) (since 2011); Trustee, Skills for America’s Future (national initiative to connect employers to community colleges) (since 2011); Trustee, National Park Foundation (charitable foundation for national park system) (since 2009); Trustee, Economic Club of Chicago (since 2009).	None.
Kevin J. Bannon (63) Board Member Portfolios Overseen: 67	Managing Director (April 2008-May 2015) and Chief Investment Officer (October 2008-November 2013) of Highmount Capital LLC (registered investment adviser); formerly Executive Vice President and Chief Investment Officer (April 1993-August 2007) of Bank of New York Company; President (May 2003-May 2007) of BNY Hamilton Family of Mutual Funds.	Director of Urstadt Biddle Properties (equity real estate investment trust) (since September 2008).
Linda W. Bynoe (63) Board Member Portfolios Overseen: 67	President and Chief Executive Officer (since March 1995) and formerly Chief Operating Officer (December 1989-February 1995) of Telemat Ltd. (management consulting); formerly Vice President (January 1985-June 1989) at Morgan Stanley & Co. (broker-dealer).	Director of Simon Property Group, Inc. (retail real estate) (May 2003-May 2012); Director of Anixter International, Inc. (communication products distributor) (since January 2006); Director of Northern Trust Corporation (financial services) (since April 2006); Trustee of Equity Residential (residential real estate) (since December 2009).

Prudential Government Income Fund

Independent Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Keith F. Hartstein (59) Board Member Portfolios Overseen: 67	Retired; Member (since November 2014) of the Governing Council of the Independent Directors Council (organization of independent mutual fund directors); formerly President and Chief Executive Officer (2005-2012), Senior Vice President (2004-2005), Senior Vice President of Sales and Marketing (1997-2004), and various executive management positions (1990-1997), John Hancock Funds, LLC (asset management); Chairman, Investment Company Institute’s Sales Force Marketing Committee (2003-2008).	None.
Michael S. Hyland, CFA (70) Board Member Portfolios Overseen: 67	Retired (since February 2005); formerly Senior Managing Director (July 2001-February 2005) of Bear Stearns & Co, Inc.; Global Partner, INVESCO (1999-2001); Managing Director and President of Salomon Brothers Asset Management (1989-1999).	None.
Richard A. Redeker (72) Board Member & Independent Chair Portfolios Overseen: 67	Retired Mutual Fund Senior Executive (47 years); Management Consultant; Director, Mutual Fund Directors Forum (since 2014); Independent Directors Council (organization of independent mutual fund directors)-Executive Committee, Chair of Policy Steering Committee, Governing Council.	None.
Stephen G. Stoneburn (72) Board Member Portfolios Overseen: 67	Chairman (since July 2011), President and Chief Executive Officer (since June 1996) of Quadrant Media Corp. (publishing company); formerly President (June 1995-June 1996) of Argus Integrated Media, Inc.; Senior Vice President and Managing Director (January 1993-1995) of Cowles Business Media; Senior Vice President of Fairchild Publications, Inc. (1975-1989).	None.

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Interested Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Stuart S. Parker (53) Board Member & President Portfolios Overseen: 67	President of Prudential Investments LLC (since January 2012); Executive Vice President of Prudential Investment Management Services LLC (since December 2012); Executive Vice President of Jennison Associates LLC and Head of Retail Distribution of Prudential Investments LLC (June 2005-December 2011).	None.
Scott E. Benjamin (42) Board Member & Vice President Portfolios Overseen: 67	Executive Vice President (since June 2009) of Prudential Investments LLC; Executive Vice President (June 2009-June 2012) and Vice President (since June 2012) of Prudential Investment Management Services LLC; Executive Vice President (since September 2009) of AST Investment Services, Inc.; Senior Vice President of Product Development and Marketing, Prudential Investments (since February 2006); Vice President of Product Development and Product Management, Prudential Investments (2003-2006).	None.
Grace C. Torres* (56) Board Member Portfolios Overseen: 65	Retired; formerly Treasurer and Principal Financial and Accounting Officer of the Prudential Investments Funds, Target Funds, Advanced Series Trust, Prudential Variable Contract Accounts and The Prudential Series Fund (1998-June 2014); Assistant Treasurer (March 1999-June 2014) and Senior Vice President (September 1999-June 2014) of Prudential Investments LLC; Assistant Treasurer (May 2003-June 2014) and Vice President (June 2005-June 2014) of AST Investment Services, Inc.; Senior Vice President and Assistant Treasurer (May 2003-June 2014) of Prudential Annuities Advisory Services, Inc.	Director (since July 2015) of Sun Bancorp, Inc. N.A.

* Note: Prior to her retirement in 2014, Ms. Torres was employed by Prudential Investments LLC. Due to her prior employment, she is considered to be an “interested person” under the 1940 Act. Ms. Torres is a non-management Interested Board Member.

⁽¹⁾  The year that each Board Member joined the Fund’s Board is as follows:

Ellen S. Alberding, 2013; Kevin J. Bannon, 2008; Linda W. Bynoe, 2005; Keith F. Hartstein, 2013; Michael S. Hyland, 2008; Richard A. Redeker, 1993; Stephen G. Stoneburn, 2003; Grace C. Torres, 2014; Stuart S. Parker, Board Member and President since 2012; Scott E. Benjamin, Board Member since 2010 and Vice President since 2009.

Prudential Government Income Fund

Fund Officers(a)
Name, Address and Age Position with Fund	Principal Occupation(s) During Past Five Years	Length of Service as Fund Officer
Raymond A. O’Hara (60) Chief Legal Officer	Vice President and Corporate Counsel (since July 2010) of Prudential Insurance Company of America (Prudential); Vice President (March 2011-Present) of Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey; Vice President and Corporate Counsel (March 2011-Present) of Prudential Annuities Life Assurance Corporation; Chief Legal Officer of Prudential Investments LLC (since June 2012); Chief Legal Officer of Prudential Mutual Fund Services LLC (since June 2012) and Corporate Counsel of AST Investment Services, Inc. (since June 2012); formerly Assistant Vice President and Corporate Counsel (September 2008-July 2010) of The Hartford Financial Services Group, Inc.; formerly Associate (September 1980-December 1987) and Partner (January 1988–August 2008) of Blazzard & Hasenauer, P.C. (formerly, Blazzard, Grodd & Hasenauer, P.C.).	Since 2012
Chad A. Earnst (40) Chief Compliance Officer	Chief Compliance Officer (September 2014-Present) of Prudential Investments LLC; Chief Compliance Officer (September 2014-Present) of the Prudential Investments Funds, Target Funds, Advanced Series Trust, The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc., Prudential Global Short Duration High Yield Income Fund, Inc., Prudential Short Duration High Yield Fund, Inc. and Prudential Jennison MLP Income Fund, Inc.; formerly Assistant Director (March 2010-August 2014) of the Asset Management Unit, Division of Enforcement, US Securities & Exchange Commission; Assistant Regional Director (January 2010-August 2014), Branch Chief (June 2006–December 2009) and Senior Counsel (April 2003-May 2006) of the Miami Regional Office, Division of Enforcement, US Securities & Exchange Commission.	Since 2014
Deborah A. Docs (58) Secretary	Vice President and Corporate Counsel (since January 2001) of Prudential; Vice President (since December 1996) and Assistant Secretary (since March 1999) of Prudential Investments LLC; formerly Vice President and Assistant Secretary (May 2003-June 2005) of AST Investment Services, Inc.	Since 2004
Jonathan D. Shain (57) Assistant Secretary	Vice President and Corporate Counsel (since August 1998) of Prudential; Vice President and Assistant Secretary (since May 2001) of Prudential Investments LLC; Vice President and Assistant Secretary (since February 2001) of Prudential Mutual Fund Services LLC; formerly Vice President and Assistant Secretary (May 2003-June 2005) of AST Investment Services, Inc.	Since 2005

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Fund Officers(a)
Name, Address and Age Position with Fund	Principal Occupation(s) During Past Five Years	Length of Service as Fund Officer
Claudia DiGiacomo (41) Assistant Secretary	Vice President and Corporate Counsel (since January 2005) of Prudential; Vice President and Assistant Secretary of Prudential Investments LLC (since December 2005); Associate at Sidley Austin Brown & Wood LLP (1999-2004).	Since 2005
Andrew R. French (53) Assistant Secretary	Vice President and Corporate Counsel (since February 2010) of Prudential; formerly Director and Corporate Counsel (2006-2010) of Prudential; Vice President and Assistant Secretary (since January 2007) of Prudential Investments LLC; Vice President and Assistant Secretary (since January 2007) of Prudential Mutual Fund Services LLC.	Since 2006
Amanda S. Ryan (38) Assistant Secretary	Director and Corporate Counsel (since March 2012) of Prudential; Director and Assistant Secretary (since June 2012) of Prudential Investments LLC; Associate at Ropes & Gray LLP (2008-2012).	Since 2012
Theresa C. Thompson (53) Deputy Chief Compliance Officer	Vice President, Compliance, Prudential Investments LLC (since April 2004); and Director, Compliance, Prudential Investments LLC (2001-2004).	Since 2008
Richard W. Kinville (47) Anti-Money Laundering Compliance Officer	Vice President, Corporate Compliance, Anti-Money Laundering Unit (since January 2005) of Prudential; committee member of the American Council of Life Insurers Anti-Money Laundering and Critical Infrastructure Committee (since January 2007); formerly Investigator and Supervisor in the Special Investigations Unit for the New York Central Mutual Fire Insurance Company (August 1994-January 1999); Investigator in AXA Financial’s Internal Audit Department and Manager in AXA’s Anti-Money Laundering Office (January 1999-January 2005); first chair of the American Council of Life Insurers Anti-Money Laundering and Critical Infrastructure Committee (June 2007-December 2009).	Since 2011
M. Sadiq Peshimam (52) Treasurer and Principal Financial and Accounting Officer	Vice President (since 2005) of Prudential Investments LLC; formerly Assistant Treasurer of funds in the Prudential Mutual Fund Complex (2006-2014).	Since 2006
Peter Parrella (57) Assistant Treasurer	Vice President (since 2007) and Director (2004-2007) within Prudential Mutual Fund Administration; formerly Tax Manager at SSB Citi Fund Management LLC (1997-2004).	Since 2007
Lana Lomuti (48) Assistant Treasurer	Vice President (since 2007) and Director (2005-2007), within Prudential Mutual Fund Administration; formerly Assistant Treasurer (December 2007-February 2014) of The Greater China Fund, Inc.	Since 2014
Linda McMullin (54) Assistant Treasurer	Vice President (since 2011) and Director (2008-2011) within Prudential Mutual Fund Administration.	Since 2014
Kelly A. Coyne (47) Assistant Treasurer	Director, Investment Operations of Prudential Mutual Fund Services LLC (since 2010).	Since 2015

Prudential Government Income Fund

^(a)  Excludes Mr. Parker and Mr. Benjamin, interested Board Members who also serve as President and Vice President, respectively.

Explanatory Notes to Tables:

• Board Members are deemed to be “Interested,” as defined in the 1940 Act, by reason of their affiliation with Prudential Investments LLC and/or an affiliate of Prudential Investments LLC.

• Unless otherwise noted, the address of all Board Members and Officers is c/o Prudential Investments LLC, 655 Broad Street, Newark, New Jersey 07102-4410.

• There is no set term of office for Board Members or Officers. The Board Members have adopted a retirement policy, which calls for the retirement of Board Members on December 31 of the year in which they reach the age of 75.

• “Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the 1934 Act (that is, “public companies”) or other investment companies registered under the 1940 Act.

• “Portfolios Overseen” includes all investment companies managed by Prudential Investments LLC. The investment companies for which Prudential Investments LLC serves as manager include the Prudential Investments Mutual Funds, The Prudential Variable Contract Accounts, Target Mutual Funds, Prudential Short Duration High Yield Fund, Inc., Prudential Global Short Duration High Yield Fund, Inc., The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc. and the Advanced Series Trust.

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n    MAIL	n    TELEPHONE	n    WEBSITE
655 Broad 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 • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres

OFFICERS

Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadig Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, 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 • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer

MANAGER	Prudential Investments LLC	655 Broad Street Newark, NJ 07102
INVESTMENT SUBADVISER	PGIM, Inc.	655 Broad Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	655 Broad 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, 655 Broad Street, 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 no sooner than 15 days after the end of the month.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Directors and is available without charge, upon request, by calling (800) 225-1852.

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

MF128E    0290810-00001-00

PRUDENTIAL INVESTMENTS, A PGIM BUSINESS  |  MUTUAL FUNDS

     Prudential Floating Rate Income Fund

ANNUAL REPORT FEBRUARY 29, 2016

To enroll in e-delivery, go to prudentialfunds.com/edelivery

Objective: To maximize current income. Capital appreciation is a secondary
investment objective, but only when consistent with the Fund’s primary objective.

Highlights

PRUDENTIAL FLOATING RATE INCOME FUND

• The Fund’s industry selection was a large contributor to performance during the reporting period. Along with underweight positions in the energy, electric utility, and metals and mining sectors, the Fund benefited from overweights in the housing and chemicals sectors.

• The Fund was hurt during the period by its underweight positions in the media/telecommunications, food/tobacco, and gaming/leisure sectors.

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.

Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. Prudential Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. ^© 2016 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

2 Visit our website at prudentialfunds.com

Letter from the President

Dear Shareholder:

We hope you find the annual report for the Prudential Floating Rate Income Fund informative and useful. The report covers performance for the 12-month period that ended February 29, 2016.

During the period, the US economy continued to grow modestly, but

growth outside the US has been sluggish and slowing for the past several years. Plummeting energy prices, slowing economic growth in China, and declining global earnings growth weighed heavily on the world markets. Even so, a strong US labor market and low oil prices have encouraged consumers to spend more.

The US bull market is in its seventh year, the third-longest bull market since World War II. But stocks have been extremely volatile since the beginning of 2016. Bond markets remained mixed, with US Treasuries performing well as investors have sought safe havens in the wake of recent poor stock performance. High yield, or below-investment-grade, bonds have struggled due to credit concerns in the energy sector, though higher-rated high yield bonds have done better.

Given the volatility in today’s investment environment, we believe that active professional portfolio management offers a potential advantage. Active managers often have the knowledge and flexibility to find the best investment opportunities in the most challenging markets.

Even so, it’s best if investment decisions are based on your long-term goals rather than on short-term market and economic developments. We also encourage you to work with an experienced financial advisor who can help you set goals, determine your tolerance for risk, and build a diversified plan that’s right for you and make adjustments when necessary.

By having Prudential Investments help you address your goals, you gain the advantage of asset managers that also manage money for major corporations and pension funds around the world. That means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.

Thank you for choosing our family of funds.

Sincerely,

Stuart S. Parker, President

Prudential Floating Rate Income Fund

April 15, 2016

Prudential Floating Rate Income Fund 3

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 2/29/16
	One Year (%)	Since Inception (%)
Class A	–2.34	14.42 (3/30/11)
Class C	–3.07	10.27 (3/30/11)
Class Q	N/A	–3.35 (4/27/15)
Class Z	–2.08	15.93 (3/30/11)
Credit Suisse Leveraged Loan Index	–3.27	—
Lipper Loan Participation Funds Average	–4.17	—

Average Annual Total Returns (With Sales Charges) as of 3/31/16
	One Year (%)	Five Years (%)	Since Inception (%)
Class A	–3.48	2.62	2.57
Class C	–1.95	2.52	2.48
Class Q	N/A	N/A	N/A
Class Z	0.03	3.57	3.53
Credit Suisse Leveraged Loan Index	–1.11	3.49	—
Lipper Loan Participation Funds Average	–1.83	2.70	—

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Average Annual Total Returns (With Sales Charges) as of 2/29/16
	One Year (%)	Since Inception (%)
Class A	–5.51	2.09 (3/30/11)
Class C	–4.01	2.00 (3/30/11)
Class Q	N/A	N/A (4/27/15)
Class Z	–2.08	3.05 (3/30/11)
Average Annual Total Returns (Without Sales Charges) as of 2/29/16
	One Year (%)	Since Inception (%)
Class A	–2.34	2.77 (3/30/11)
Class C	–3.07	2.00 (3/30/11)
Class Q	N/A	N/A (4/27/15)
Class Z	–2.08	3.05 (3/30/11)

Growth of a $10,000 Investment

The graph compares a $10,000 investment in the Prudential Floating Rate Income Fund (Class A shares) with a similar investment in the Credit Suisse Leveraged Loan Index by portraying the initial account values at the commencement of operations of Class A shares (March 30, 2011) and the account values at the end of the current fiscal year (February 29, 2016) as measured on a quarterly basis. For purposes of the graph, and

Prudential Floating Rate Income Fund 5

Your Fund’s Performance (continued)

unless otherwise indicated, it has been assumed that (a) the maximum applicable front-end sales charge was deducted from the initial $10,000 investment in Class A shares; (b) all recurring fees (including management fees) were deducted; and (c) all dividends and distributions were reinvested. The line graph provides information for Class A shares only. As indicated in the tables provided earlier, performance for Class C, Class Q, and Class Z shares will vary due to the differing charges and expenses applicable to each share class (as indicated in the following paragraphs). Without waiver of fees and/or expense reimbursement, if any, the Fund’s returns would have been lower.

Past performance does not predict future performance. Total returns and the ending account values in the graph include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total 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.

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 do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund 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 C	Class Q	Class Z
Maximum initial sales charge	3.25% of the public offering price	None	None	None
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption)	1% on sales of $1 million or more made within 12 months of purchase	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)	.25%	1%	None	None

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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. The cumulative total returns for the Index measured from the month-end closest to the inception date for Class A, C, and Z shares through 2/29/16 are 15.64% and –4.51% for Class Q shares. The average annual total return for the Index measured from the month-end closest to the inception date for Class A, C, and Z shares through 3/31/16 is 3.49%. Class Q shares have been in existence for less than one year and have no average annual total return performance available.

Lipper Loan Participation Funds Average—The Lipper Loan Participation Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Loan Participation Funds category for the periods noted. Funds in the Lipper Average invest primarily in participation interests in collateralized senior corporate loans that have floating or variable rates. The cumulative total returns for the Lipper Average measured from the month-end closest to the inception date for Class A, C, and Z shares through 2/29/16 are 11.08% and –5.29% for Class Q shares. The average annual total return for the Lipper Average measured from the month-end closest to the inception date for Class A, C, and Z shares through 3/31/16 is 2.70%. Class Q shares have been in existence for less than one year and have no average annual total return performance available.

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 Index and the Lipper Average are measured from the closest month-end to inception date for the indicated share class.

Credit Quality expressed as a percentage of total investments as of 2/29/16 (%)
AA	0.3
A	0.6
BBB	3.3
BB	41.2
B	49.5
CCC	2.0
D	0.1
Cash/Cash Equivalents	3.1
Total Investments	100.0

Source: PGIM, Inc.

Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investor Service, Inc. (Moody’s), Standard & Poor’s (S&P), or Fitch, Inc. (Fitch). Credit ratings reflect the common

Prudential Floating Rate Income Fund 7

Your Fund’s Performance (continued)

nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable S&P/Fitch rating tier nomenclature. These rating agencies are independent, and are widely used. The Not Rated category consists of securities that have not been rated by a NRSRO. Credit ratings are subject to change. Values may not sum to 100.0% due to rounding.

Distributions and Yields as of 2/29/16
	Total Distributions Paid for 12 Months ($)	SEC 30-Day Subsidized Yield* (%)	SEC 30-Day Unsubsidized Yield** (%)
Class A	0.35	4.66	4.59
Class C	0.27	4.06	3.99
Class Q	0.31	5.06	4.91
Class Z	0.37	5.06	4.99

*SEC 30-Day Subsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the fund’s net expenses (net of any expense waivers or reimbursements).

**SEC 30-Day Unsubsidized Yield (%)—A standardized yield calculation created by the Securities and Exchange Commission, it reflects the income earned during a 30-day period, after the deduction of the Fund’s gross expenses.

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Strategy and Performance Overview

How did the Fund perform?

The Prudential Floating Rate Income Fund’s Class A shares returned –2.34% for the 12-month reporting period ended February 29, 2016, outperforming the –3.27% return of the Credit Suisse Leveraged Loan Index (the “Index”). The Fund also outperformed the –4.17% return of the Lipper Loan Participation Funds Average.

What were market conditions?

Floating rate loans, which are provided by banks and other lenders to below-investment-grade companies, produced uneven returns during the one-year reporting period, with the Index declining in eight of the 12 months.

Outflows from floating rate loan mutual funds continued largely unchecked throughout the reporting period, as investor appetite for the asset class waned due to the flattening yield curve. Later in the period, despite the Federal Reserve’s (“Fed”) interest rate hike in December 2015, outflows actually accelerated as market expectations about future Fed rate hikes decreased dramatically.

Net new issuance of floating rate notes declined significantly in 2015 versus prior years, with $81.1 billion coming to market. Formation of collateralized loan obligations was strong at $110.8 billion, which—offset by retail mutual fund outflows of $20.3 billion—resulted in a fairly balanced supply and demand picture in the market.

Among ongoing market trends was the continued underperformance of the energy sector, as crude oil prices dropped to a seven-year low during the fourth quarter of 2015. For the period overall, energy, metals/minerals, and electric utilities were the worst-performing sectors in the Index. The consumer products, food/tobacco, and housing sectors performed well.

What worked?

• The Fund’s industry selection was a large contributor to performance during the reporting period. Along with underweight positions in the energy, electric utility, and metals and mining sectors, the Fund benefited from overweights in the housing and chemicals sectors.

• Security selection added significantly to performance, led by holdings in the electric utility, manufacturing, energy, and forest products/containers sectors.

• In terms of quality positioning, the Fund’s underweight in lower-quality loans (CCC and below) contributed positively. Strong security selection among B-rated loans and loans rated CCC and below also bolstered performance.

• The Fund’s lack of exposure to Texas Competitive Electric Holdings (utility), Clear Channel Communications (media), Millennium Health (health care), Arch Coal (metals/minerals), and Templar Energy (energy) added to performance.

Prudential Floating Rate Income Fund 9

Strategy and Performance Overview (continued)

What didn’t work?

• The Fund was hurt during the period by its underweight positions in the media/telecommunications, food/tobacco, and gaming/leisure sectors.

• Security selection in the service, consumer non-durables, and media/telecommunications sectors detracted modestly from performance.

• An underweight in higher-quality BB-rated loans dampened returns.

• The Fund was hampered by its overweights in American Energy—Marcellus (energy), Dex Media (media), and metals and minerals companies, including Peabody Energy and Murray Energy.

Current outlook

Prudential Fixed Income continues to believe that floating rate loans offer relative value in both the primary and secondary markets. During the next 12 months, default rates are expected to remain below the long-term historical average of 3.4%. However, if depressed commodity prices persist, Prudential Fixed Income believes defaults in the metals, mining, and energy sectors could increase. At the end of the reporting period, the Fund’s key sector overweights included manufacturing and chemicals.

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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 September 1, 2015, at the beginning of the period, and held through the six-month period ended February 29, 2016. 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 Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your

Prudential Floating Rate Income Fund 11

Fees and Expenses (continued)

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 September 1, 2015		Ending  Account Value February 29, 2016		Annualized Expense Ratio Based on the Six-Month Period			Expenses  Paid During the Six-Month Period*
Class A	Actual	$	1,000.00	$	969.00		1.05	%	$	5.14
	Hypothetical	$	1,000.00	$	1,019.64		1.05	%	$	5.27
Class C	Actual	$	1,000.00	$	965.30		1.80	%	$	8.80
	Hypothetical	$	1,000.00	$	1,015.91		1.80	%	$	9.02
Class Q	Actual	$	1,000.00	$	970.30		0.80	%	$	3.92
	Hypothetical	$	1,000.00	$	1,020.89		0.80	%	$	4.02
Class Z	Actual	$	1,000.00	$	970.20		0.80	%	$	3.92
	Hypothetical	$	1,000.00	$	1,020.89		0.80	%	$	4.02

* 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 182

days in the six-month period ended February 29, 2016, and divided by the 366 days in the Fund’s fiscal year ended

February 29, 2016 (to reflect the six-month period). Expenses presented in the table include the expenses of any

underlying portfolios in which the Fund may invest.

12 Visit our website at prudentialfunds.com

The Fund’s expense ratios for the 12-month period ended February 29, 2016, are as follows:

Class	Gross Operating Expenses (%)	Net Operating Expenses (%)
A	1.34	1.05
C	2.11	1.80
Q	0.99	0.80
Z	1.09	0.80

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 13

Portfolio of Investments

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
LONG-TERM INVESTMENTS    96.7%
ASSET-BACKED SECURITIES    0.9%
Collateralized Loan Obligations
Anchorage Capital CLO Ltd. (Cayman Islands), Series 2014-3A, Class A2B, 144A	4.450%		04/28/26		500	$	495,733
Battalion CLO Ltd. (Cayman Islands), Series 2014-5A, Class A2B, 144A	4.410		04/17/26		250		241,804
Limerock CLO Ltd. (Cayman Islands), Series 2014-2A, Class C2, 144A	5.195		04/18/26		750		738,699
Neuberger Berman CLO Ltd. (Cayman Islands), Series 2014-16A, Class C2, 144A	5.360		04/15/26		500		485,112
TOTAL ASSET-BACKED SECURITIES (cost $1,982,314)							1,961,348
BANK LOANS(a)    93.6%
Aerospace & Defense    1.0%
CPI International, Inc.(d)	4.250		11/17/17		344		330,120
Sequa Corp.	5.250		06/19/17		372		221,103
Standard Aero Ltd. (Canada)	5.250		07/07/22		623		617,593
Transdigm, Inc.	3.500		05/16/22		521		496,710
Transdigm, Inc.	3.750		06/04/21		496		473,891
							2,139,417
Airlines    0.4%
American Airlines, Inc.(b)	3.250		06/29/20		1,000		978,250
Automotive    2.5%
American Tire Distributors, Inc.	5.250		09/01/21		621		602,090
BBB Industries LLC	6.000		11/03/21		248		246,109
Chrysler Group LLC	3.250		12/31/18		1,035		1,026,297
Cooper Standard Automotive, Inc.	4.000		04/04/21		617		597,932
Federal-Mogul Holdings Corp.	4.750		04/15/21		941		743,653
Gates Global LLC	4.250		07/06/21		643		562,726
Horizon Global Corp.(d)	7.000		06/30/21		341		324,187
TI Group Automotive Systems LLC	4.500		06/30/22		449		432,042
Tower Auto Holdings USA LLC(d)	4.000		04/23/20		1,051		1,011,117
							5,546,153
Brokerage    1.7%
Arnhold & S. Bleichroeder Holdings, Inc.	4.750		11/30/22		625		589,062
BATS Global Markets, Inc.	5.750		01/31/20		726		722,997

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 15

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Brokerage (cont’d.)
Hamilton Lane Advisors LLC	4.250%		07/08/22		719	$	712,685
LPL Holdings, Inc.(d)	4.750		11/30/22		750		705,000
VFH Parent LLC	5.250		11/08/19		966		958,001
							3,687,745
Building Materials & Construction    4.8%
Apex Tool Group LLC	4.500		01/31/20		734		691,194
Builders FirstSource, Inc.	6.000		07/29/22		998		963,620
CHI Overhead Doors, Inc.	4.750		07/31/22		349		342,143
CHI Overhead Doors, Inc.	8.750		07/31/23		300		277,500
Continental Building Products LLC	4.000		08/28/20		626		607,794
DTZ US Borrower LLC	4.250		11/04/21		721		692,520
HD Supply, Inc.	3.750		08/13/21		574		560,227
Headwaters, Inc.	4.500		03/24/22		898		895,817
Jeld-Wen, Inc.	4.750		07/01/22		399		392,350
Jeld-Wen, Inc.	5.250		10/15/21		549		539,471
LBM Borrower LLC	6.250		08/31/22		623		581,875
Manitowoc Foodservice	5.750		03/03/23		650		647,562
Ply Gem Industries, Inc.	4.000		02/01/21		694		655,800
PriSo Acquisition Corp.(d)	4.500		05/09/22		498		476,559
Quikrete Co., Inc.	4.000		09/28/20		641		624,877
Quikrete Co., Inc.	7.000		03/26/21		311		305,674
Terex Corp.(d)	4.500		06/30/23		475		460,750
Wilsonart LLC	4.000		10/31/19		734		714,108
							10,429,841
Cable    1.5%
CSC Holdings LLC	5.000		10/10/22		500		495,833
Intelsat Jackson Holdings SA (Luxembourg)	3.750		06/30/19		1,250		1,119,271
Numericable US LLC	4.500		05/21/20		896		860,975
UPC Financing Partnership	3.250		06/30/21		500		485,209
Virgin Media Investment Holdings Ltd. (United Kingdom)	3.500		06/30/23		375		363,375
							3,324,663
Capital Goods    6.3%
4L Technologies, Inc.(d)	5.500		05/08/20		543		488,813
ADS Waste Holdings, Inc.	3.750		10/09/19		1,513		1,465,972
Allflex Holdings III, Inc.	4.250		07/17/20		871		846,244
Brand Energy & Infrastructure Services, Inc.	4.750		11/26/20		719		662,654
CPM Acquisition Corp.	6.000		04/11/22		846		830,626

See Notes to Financial Statements.

16

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Capital Goods (cont’d.)
Crosby US Acquisition Corp.	4.000%		11/23/20		372	$	273,532
Doosan Infracore International, Inc.(d)	4.500		05/28/21		681		643,214
Douglas Dynamics LLC	5.250		12/31/21		570		569,067
Dynacast International LLC(d)	4.500		01/28/22		622		599,805
Filtration Group, Inc.	4.250		11/23/20		399		382,071
Filtration Group, Inc.	8.250		11/22/21		370		357,975
Gardner Denver, Inc.	4.250		07/30/20		299		246,569
Hillman Group, Inc. (The)	4.500		06/30/21		496		472,651
Infiltrator Systems Integrated LLC	5.250		05/27/22		772		758,886
Mirror Bidco Corp.	4.250		12/27/19		793		778,571
Neff Rental LLC	7.250		06/09/21		267		199,957
North American Lifting Holdings, Inc.	5.500		11/27/20		496		359,750
Pelican Products, Inc.(d)	5.250		04/11/20		544		511,615
Penn Engineering & Manufacturing Corp.	4.000		08/27/21		395		393,025
Pro Mach, Inc.	4.750		10/22/21		396		391,050
RBS Global, Inc./Rexnord LLC	4.000		08/21/20		981		935,349
Synagro Infrastructure Co., Inc.(b)(d)	6.250		08/22/20		168		141,408
Tank Holding Corp.	5.250		03/16/22		674		642,782
Unifrax I LLC	4.250		11/28/18		308		279,901
WASH Multifamily Laundry Systems LLC	4.250		05/16/22		622		599,332
							13,830,819
Chemicals    5.3%
A. Schulman, Inc.(d)	4.000		06/01/22		496		471,437
Axalta Coating Systems US Holding	3.750		02/01/20		1,724		1,703,395
Chemours Co. LLC (The)	3.750		05/12/22		970		865,837
Colouroz Investment 2 LLC	4.500		09/07/21		637		605,059
Colouroz Investment 2 LLC(d)	4.500		09/07/21		105		99,584
Colouroz Investment 2 LLC	8.250		09/05/22		200		184,000
Emerald Performance Materials LLC	7.750		08/01/22		300		280,875
Kronos Worldwide, Inc.	4.000		02/18/20		393		353,209
MacDermid, Inc.	5.500		06/07/20		1,389		1,263,807
Methanol Holdings DE LLC(d)	4.250		06/30/22		498		447,750
Nexeo Solutions LLC	5.000		09/08/17		273		264,510
Nusil Technology LLC	5.250		04/07/17		743		730,364
Oxea Finance LLC	4.250		01/15/20		489		469,811
Phillips-Medisize Corp.(d)	4.750		06/16/21		369		350,445
Plaskolite, Inc.(d)	5.750		11/03/22		375		363,750
Solenis International LP	4.250		07/31/21		494		465,977
Solenis International LP	7.750		07/31/22		200		158,333
Sonneborn, Inc.(d)	4.750		12/10/20		597		586,061

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 17

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Chemicals (cont’d.)
Tata Chemicals NA, Inc.(d)	3.750%		08/07/20		665	$	648,568
Tronox Pigments Netherlands BV	4.500		03/19/20		526		463,062
Univar, Inc.	4.250		07/01/22		947		895,165
							11,670,999
Consumer    5.8%
Acosta, Inc.	4.250		09/26/21		742		695,355
Advantage Sales & Marketing, Inc.	4.250		07/23/21		645		610,628
Advantage Sales & Marketing, Inc.(d)	7.500		07/25/22		500		415,000
Bombardier Recreational Products, Inc.	3.750		01/30/19		777		751,400
Cole Haan, Inc.(d)	5.000		02/01/20		490		330,802
Fitness International LLC	5.500		07/01/20		495		464,051
Galleria Co.	3.750		01/26/23		308		306,406
Generac Power Systems, Inc.	3.500		05/31/20		750		731,875
Hoffmaster Group, Inc.	5.250		05/11/20		554		541,444
Huish Detergents, Inc.	5.500		03/23/20		985		934,423
Libbey Glass, Inc.(d)	3.750		04/09/21		571		550,840
Life Time Fitness, Inc.	4.250		06/10/22		498		479,673
NBTY, Inc.	3.500		10/01/17		288		284,279
NVA Holdings, Inc.	4.750		08/16/21		695		675,517
NVA Holdings, Inc.(d)	8.000		08/14/22		400		366,000
Royal Holdings, Inc.	4.500		06/20/22		498		481,704
ServiceMaster Co.	4.250		07/01/21		715		708,659
Spin Holdco, Inc.	4.250		11/14/19		518		490,531
SRAM Corp.(d)	4.025		04/10/20		644		489,192
Stadium Management Group	4.500		02/27/20		625		606,250
Sterling Midco Holdings, Inc.	5.750		06/20/22		622		606,328
Wand Intermediate I LP	4.750		09/17/21		571		560,235
Water Pik, Inc.	5.750		07/08/20		539		531,978
							12,612,570
Electric    1.8%
Calpine Construction Finance Co. LP	3.250		01/31/22		496		463,115
Calpine Corp.	3.500		05/27/22		622		588,671
Calpine Corp.	4.000		01/15/23		750		718,125
Dynegy, Inc.	4.000		04/23/20		983		920,254
FREIF NAP I Holdings III LLC(d)	4.750		03/31/22		486		471,616
Intergen NV	5.500		06/15/20		512		453,009
TPF Generation Holdings LLC	4.750		12/31/17		414		370,866
							3,985,656

See Notes to Financial Statements.

18

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Energy - Other    0.8%
American Energy Marcellus LLC	5.250%		08/04/20		500	$	80,000
American Energy Marcellus LLC	8.500		08/04/21		300		10,250
Drillships Financing Holding, Inc.	6.000		03/31/21		367		104,421
Energy Transfer Equity LP	3.250		12/02/19		962		768,210
Fieldwood Energy LLC	8.375		09/30/20		500		67,812
Floatel Delaware LLC	6.000		06/29/20		368		149,831
FTS International, Inc.	5.750		04/16/21		251		22,924
Hi-Crush Partners LP	4.750		04/28/21		211		142,236
Pacific Drilling SA (Luxembourg)	4.500		06/01/18		363		70,262
Targa Resources Partners LP(d)	5.750		02/27/22		324		262,787
							1,678,733
Energy - Refining    1.0%
Citgo Holdings, Inc.	9.500		05/12/18		421		413,683
Citgo Petroleum Corp.	4.500		07/29/21		1,092		1,026,215
Western Refining, Inc.	4.250		11/12/20		920		802,804
							2,242,702
Entertainment    0.2%
SeaWorld Parks & Entertainment, Inc.	3.000		05/14/20		496		468,809
Foods    2.2%
AdvancePierre Foods, Inc.	5.750		07/10/17		349		348,477
AdvancePierre Foods, Inc.(d)	9.500		10/10/17		400		394,000
Hearthside Group Holdings LLC(d)	4.500		06/02/21		898		848,347
JBS USA LLC	3.750		09/30/20		499		486,256
JBS USA LLC	4.000		10/31/22		750		728,437
Mill US Acquisition LLC	5.000		07/03/20		914		860,564
Packers Holdings LLC	5.000		12/02/21		522		519,012
Shearer’s Foods LLC(d)	4.938		06/30/21		746		719,504
							4,904,597
Gaming    2.9%
Caesars Entertainment Resort Properties LLC	7.000		10/11/20		490		442,123
CCM Merger, Inc.	4.500		08/06/21		1,032		1,024,010
CityCenter Holdings LLC	4.250		10/16/20		855		849,165
Eldorado Resorts, Inc.	4.250		07/25/22		498		495,012
Golden Nugget, Inc.	5.500		11/21/19		952		939,426
Scientific Games International, Inc.	6.000		10/01/21		1,513		1,375,944
Station Casinos LLC	4.250		03/02/20		820		806,293
Yonkers Racing Corp.(d)	4.250		08/20/19		365		361,135
							6,293,108

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 19

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Health Care & Pharmaceutical    11.6%
Acadia Healthcare Co., Inc.	4.500%		02/20/23		800	$	800,000
Air Medical Group Holdings, Inc.	4.250		04/28/22		498		471,692
Alere, Inc.	4.250		06/20/22		743		741,818
Alliance HealthCare Services, Inc.	4.250		06/03/19		723		659,144
Amneal Pharmaceuticals LLC	4.501		11/01/19		516		506,701
ATI Holdings LLC	5.250		12/20/19		745		737,158
Boston Luxembourg III SARL(d)	4.000		08/28/19		247		243,010
Carecore National LLC	5.500		03/05/21		369		311,078
CCS Intermediate Holdings LLC(d)	5.000		07/23/21		222		172,195
CHS/Community Health Systems, Inc.	3.750		12/31/19		756		718,539
CHS/Community Health Systems, Inc.	4.000		01/27/21		1,570		1,489,266
Concordia Healthcare Corp. (Canada)	5.250		10/21/21		725		692,828
Curo Health Services Holdings, Inc.	6.500		02/07/22		347		342,454
Emdeon, Inc.	3.750		11/02/18		497		486,457
Endo Luxembourgh Finance I Co. SARL	3.750		09/30/22		800		790,000
Envision Healthcare Corp.	4.500		11/30/22		675		670,781
FHC Health Systems, Inc.(d)	5.000		12/23/21		496		466,475
Genoa, a QoL Healthcare Co.(d)	4.500		04/29/22		373		356,334
Greatbatch Ltd.	5.250		10/27/22		750		738,281
HCA, Inc.	3.366		05/01/18		496		495,484
Horizon Pharma, Inc.	4.500		05/07/21		323		308,109
IASIS Healthcare Corp.	4.500		05/03/18		481		467,826
Kindred Healthcare, Inc.(d)	4.250		04/09/21		922		871,261
Kinetic Concepts, Inc.	4.500		05/04/18		797		777,634
Lannett Co., Inc.	6.375		11/24/22		600		558,000
Mallinckrodt International Finance SA	3.250		03/19/21		150		146,066
Mallinckrodt International Finance SA	3.500		03/19/21		495		485,082
MJ Acquisition Corp.	4.001		06/01/22		771		753,775
MPH Acquisition Holdings LLC	3.750		03/31/21		793		772,787
Opal Acquisition, Inc.	5.000		11/27/20		497		395,457
Ortho Clinical Diagnostics	4.750		06/30/21		938		800,889
Patheon Pharmaceuticals, Inc.	4.250		03/11/21		493		467,629
Pharmaceutical Product Development LLC	4.250		08/18/22		995		968,384
RadNet Management, Inc.	4.250		10/10/18		487		478,032
RadNet Management, Inc.	8.000		03/25/21		225		205,313
RPI Finance Trust	3.500		11/09/20		496		494,380
Sterigenics-Nordion Holdings LLC(d)	4.250		05/16/22		748		712,589
Surgery Center Holdings, Inc.	5.250		11/03/20		272		266,805
TeamHealth, Inc.	4.500		11/30/22		500		498,437
US Renal Care, Inc.	5.250		12/31/22		750		743,125
Valeant Pharmaceuticals International, Inc.	3.750		08/05/20		1,096		1,023,695

See Notes to Financial Statements.

20

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Health Care & Pharmaceutical (cont’d.)
Valeant Pharmaceuticals International, Inc.		4.000	%		04/01/22		746	$	699,649
Vizient, Inc.		6.250			02/13/23		575		569,010
									25,353,629
Insurance    1.5%
AmWINS Group, Inc.		5.250			09/06/19		341		339,050
AmWINS Group, Inc.(d)		9.500			09/04/20		250		232,500
HUB International Ltd.		4.000			10/02/20		1,232		1,175,462
Hyperion Insurance Group Ltd.		5.500			04/29/22		646		604,627
Sedgwick Claims Management Services, Inc.		3.750			03/01/21		639		609,887
Sedgwick Claims Management Services, Inc.		6.750			02/28/22		250		218,125
									3,179,651
Lodging    0.3%
Four Seasons Holdings, Inc. (Canada)(d)		6.250			12/28/20		300		292,500
Playa Resorts Holding BV (Netherlands)(d)		4.000			08/09/19		440		415,682
									708,182
Media & Entertainment    4.4%
CDS US Intermediate Holdings, Inc. (Canada)		5.000			07/08/22		499		459,349
ClubCorp Club Operations, Inc.		4.250			12/15/22		799		785,782
EMI Group North America Holdings, Inc.		4.000			08/31/22		524		510,038
Getty Images, Inc.		4.750			10/18/19		485		331,012
Hubbard Radio LLC		4.250			05/27/22		346		317,734
Ion Media Networks, Inc.		4.750			12/18/20		248		238,528
Learfield Communications, Inc.(d)		4.500			10/09/20		490		482,711
Lions Gate Entertainment Corp.(d)		5.000			03/17/22		600		540,000
Match Group, Inc.		5.500			11/16/22		695		692,973
Mood Media Corp. (Canada)(d)		7.000			05/01/19		497		402,237
NEP Broadcasting LLC		10.000			07/22/20		257		236,571
NEP/NCP Holdco, Inc.		4.250			01/22/20		734		668,365
Sinclair Television Group, Inc.		3.500			07/30/21		498		488,794
SuperMedia, Inc.		11.600			12/30/16		368		110,885
Tribune Media Co.		3.750			12/28/20		1,200		1,184,002
Tribune Publishing Co.		5.750			08/04/21		188		166,875
Univision Communications, Inc.		4.000			03/01/20		1,673		1,625,242
WMG Acquisition Corp.		3.750			07/01/20		299		285,956
									9,527,054

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 21

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Metals & Mining    1.1%
FMG Resources (August 2006) Pty. Ltd. (Australia)	4.250%		06/30/19		742	$	569,589
Minerals Technologies, Inc.(d)	4.750		05/10/21		225		219,657
Murray Energy Corp.	7.500		04/16/20		746		297,774
Novelis, Inc.	4.000		06/02/22		746		686,861
Phoenix Services International LLC	6.000		06/30/17		494		435,143
Westmoreland Coal Co.(d)	7.500		12/16/20		173		103,925
							2,312,949
Other Industry    5.1%
Alfred Fueling Systems, Inc.(d)	4.750		06/21/21		497		475,088
Alix Partners LLP	4.500		07/28/22		1,247		1,232,459
Allied Security Holdings LLC	4.250		02/12/21		612		586,786
Allied Security Holdings LLC(d)	8.000		08/13/21		582		508,818
Altisource Solutions SARL (Luxembourg)(d)	4.500		12/09/20		340		285,856
Asurion LLC	5.000		05/24/19		415		390,274
Asurion LLC	5.000		08/04/22		496		453,910
Asurion LLC	8.500		03/03/21		250		201,797
AVSC Holding Corp.	4.500		01/25/21		618		586,659
Brickman Group Holdings, Inc.	4.000		12/18/20		1,012		977,151
CCC Information Services, Inc.	4.000		12/20/19		316		304,584
Edelman Financial Group, Inc.	6.500		12/19/22		525		509,250
GCA Services Group, Inc.	5.750		03/31/23		425		422,167
Guggenheim Partners Investment Management	4.250		07/22/20		766		754,378
Laureate Education, Inc.	5.000		06/18/18		789		594,801
Mannington Mills, Inc.	4.750		10/01/21		499		472,554
Merrill Communications LLC(d)	6.250		06/01/22		547		426,434
National Financial Partners Corp.	4.500		07/01/20		368		349,761
Onsite Rental Group Operation Pty. Ltd.(d)	5.500		07/30/21		222		182,194
Osmose Utility Services, Inc.	4.750		08/21/22		374		360,035
Power Buyer LLC	4.250		05/06/20		568		552,852
RCS Capital Corp.(b)(d)	7.500		04/29/19		342		171,094
USIC Holdings, Inc.	4.000		07/10/20		366		343,230
							11,142,132
Packaging    4.2%
Anchor Glass Container Corp.	4.500		07/01/22		728		722,092
Berlin Packaging LLC	4.500		10/01/21		494		482,832
Berry Plastics Corp.	4.000		10/01/22		1,122		1,113,932
Bway Holding Co.	5.500		08/14/20		715		677,096
Charter NEX US Holdings, Inc.	5.250		02/07/22		359		353,398
Exopack Holdings SA (Luxembourg)	4.500		05/08/19		648		615,990

See Notes to Financial Statements.

22

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Packaging (cont’d.)
Hilex Poly Co. LLC	6.000%		12/06/21		521	$	517,834
Hilex Poly Co. LLC	9.750		06/06/22		250		228,333
Husky Injection Molding Systems Ltd.	4.250		06/30/21		644		610,984
Husky Injection Molding Systems Ltd.(d)	7.250		06/30/22		470		446,094
Onex Wizard Acquisition Co. I SARL (Luxembourg)	4.250		03/14/22		945		917,953
Peacock Engineering Co. LLC	5.262		07/27/22		748		730,045
Plaze, Inc.	5.250		07/29/22		499		489,179
Pregis Holding I Corp.(d)	4.500		05/20/21		445		429,612
Signode Industrial Group US, Inc.	3.750		05/01/21		254		240,505
Tekni-Plex, Inc.	4.500		06/01/22		498		480,585
							9,056,464
Paper    0.2%
Caraustar Industries, Inc.(d)	8.000		05/01/19		442		419,527
Real Estate    0.6%
Capital Automotive LP	6.000		04/30/20		850		828,750
Starwood Property Trust, Inc.	3.500		04/17/20		489		476,488
							1,305,238
Restaurants    1.1%
B.C. Unlimited Liability Co.	3.750		12/10/21		1,407		1,399,407
CEC Entertainment, Inc.	4.250		02/12/21		962		904,579
							2,303,986
Retailers    7.6%
Academy Ltd.	5.000		07/01/22		1,172		1,074,265
At Home Holding III, Inc.(d)	5.000		06/03/22		496		472,678
Bass Pro Group LLC	4.000		06/05/20		742		703,037
Bauer Performance Sports Ltd.	4.500		04/15/21		829		762,613
CNT Holdings III Corp.	5.250		01/23/23		475		472,328
EyeMart Express LLC(d)	5.000		12/18/21		468		454,644
Fullbeauty Brands, Inc.	5.750		10/14/22		500		464,166
Harbor Freight Tools USA, Inc.	4.750		07/26/19		450		449,550
Hudsons Bay Co. (Canada)	4.750		09/30/22		688		684,578
JC Penney Corp., Inc.	6.000		05/22/18		550		543,812
Lands’ End, Inc.	4.250		04/05/21		618		436,920
Leslie’s Poolmart, Inc.	4.250		10/16/19		860		827,910
Men’s Warehouse, Inc. (The)	5.000		06/18/21		550		477,583
Neiman Marcus Group Ltd. LLC	4.250		10/25/20		1,232		1,031,015

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 23

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Retailers (cont’d.)
Petco Animal Supplies, Inc.	5.750%		01/26/23		825	$	806,850
Petco Animal Supplies, Inc.	5.625		01/26/23		300		293,287
PetSmart, Inc.	4.250		03/11/22		1,244		1,202,973
Rite Aid Corp.	4.875		06/21/21		1,650		1,645,875
Rite Aid Corp.	5.750		08/21/20		375		375,000
Sears Roebuck Acceptance Corp.	5.500		06/30/18		737		676,057
Staples, Inc.	4.750		02/02/22		1,400		1,388,250
Vestcom International, Inc.(d)	5.250		09/30/21		688		666,877
Vision Holding Corp.	4.000		03/12/21		620		582,662
							16,492,930
Supermarkets    2.0%
Albertsons Holdings LLC	5.125		08/26/19		385		375,375
Albertsons Holdings LLC	5.500		08/25/21		844		820,894
Albertsons Holdings LLC	5.500		12/21/22		1,225		1,189,344
GOBP Holdings, Inc.	4.750		10/21/21		621		592,109
Supervalu, Inc.	4.500		03/21/19		1,519		1,435,846
							4,413,568
Technology    12.2%
ACTIVE Network, Inc.	5.500		11/13/20		592		568,651
Ancestry.com, Inc.	5.000		08/31/22		623		614,398
Applied Systems, Inc.	7.500		01/24/22		147		133,809
Avago Technologies Cayman Finance Ltd. (Singapore)	4.250		02/01/23		2,575		2,530,744
Avaya, Inc.	6.250		05/29/20		576		341,936
Avaya, Inc.	6.500		03/30/18		129		86,042
Blue Coat Holdings, Inc.	4.500		05/20/22		1,122		1,061,402
BMC Software Finance, Inc.	5.000		09/10/20		1,436		1,145,034
CompuCom Systems, Inc.	4.250		05/11/20		281		172,535
Compuware Corp.	6.250		12/15/19		356		329,086
Dell International LLC	4.000		04/29/20		2,239		2,225,675
Deltek, Inc.	5.000		06/27/22		747		719,193
EagleView Technology Corp.	5.250		07/15/22		693		659,505
Evergreen Skills SARL (Luxembourg)	5.750		04/28/21		493		353,061
Evergreen Skills SARL (Luxembourg)	9.250		04/28/22		200		85,000
Evertec Group LLC	3.250		04/17/20		268		256,283
First Data Corp.	4.107		09/24/18		2,175		2,145,094
Hyland Software, Inc.	4.750		07/01/22		442		425,689
Hyland Software, Inc.	8.250		07/03/23		250		226,250
Informatica Corp.	4.500		08/05/22		748		704,173
IPC Systems, Inc.(d)	5.500		08/06/21		645		580,613
Kronos, Inc.	4.500		10/30/19		774		750,319

See Notes to Financial Statements.

24

Description	Interest Rate			Maturity Date		Principal Amount (000)#		Value (Note 1)
BANK LOANS(a) (Continued)
Technology (cont’d)
Kronos, Inc.		9.750	%		04/30/20		449	$	435,000
Lattice Semiconductor Corp.(d)		5.250			03/10/21		521		484,588
Lawson Software, Inc.		3.750			06/03/20		496		455,512
Linxens (Singapore)(d)		5.000			10/14/22		750		720,000
Linxens (Singapore)(d)		9.500			10/16/23		250		225,000
MA FinanceCo. LLC		4.500			11/20/19		324		307,832
Natel Engineering Co., Inc.(d)		6.750			04/10/20		481		476,438
NXP BV (Netherlands)		3.750			12/07/20		1,125		1,121,660
Presidio Holdings Ltd.		5.250			02/02/22		735		701,736
Shaw Data Centre LP(d)		4.500			03/30/22		596		577,635
Sirius Computer Solutions, Inc.		6.000			10/31/22		618		605,618
Sirius Computer Solutions, Inc.		10.500			10/31/23		250		242,500
Solera Holdings, Inc.(d)		5.750			03/31/23		500		485,000
Sophia LP		4.750			09/30/22		623		596,681
SourceHOV LLC		7.750			10/31/19		363		287,900
Sungard Availability Services Capital, Inc.(d)		6.000			03/29/19		331		278,045
Syniverse Holdings, Inc.(d)		4.000			04/23/19		482		311,107
TransUnion LLC		3.500			04/09/21		1,293		1,259,493
Zebra Technology Corp.		4.750			10/27/21		957		956,891
									26,643,128
Telecommunications    2.6%
Communications Sales & Leasing, Inc.		5.000			10/24/22		625		580,850
Global Tel*Link Corp.(d)		5.000			05/22/20		563		461,394
GTT Communications, Inc.		6.250			10/24/22		250		245,938
Level 3 Finance, Inc.		4.000			01/15/20		850		848,725
LTS Buyer LLC		4.000			04/13/20		1,095		1,064,454
Mitel Networks Corp. (Canada)		5.500			04/29/22		575		569,725
Numericable US LLC		4.750			01/13/23		600		575,532
SBA Senior Finance II LLC		3.250			03/24/21		868		851,503
Securus Technologies Holdings, Inc.(d)		5.250			04/30/20		575		483,000
									5,681,121
Transportation    0.9%
Americold Realty Trust(d)		6.500			11/30/22		750		748,125
PODS LLC(d)		4.500			02/02/22		497		491,275
XPO Logistics, Inc.		5.500			11/01/21		750		740,938
									1,980,338
TOTAL BANK LOANS (cost $217,512,217)									204,313,959

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 25

Portfolio of Investments (continued)

as of February 29, 2016

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
CORPORATE BONDS    2.2%
Chemicals    0.1%
Rentech Nitrogen Partners LP/Rentech Nitrogen Finance Corp., Sec’d. Notes, 144A	6.500%		04/15/21		170	$	159,800
Cosmetics/Personal Care    0.1%
First Quality Finance Co., Inc., Sr. Unsec’d. Notes, 144A	4.625		05/15/21		190		173,138
Electric    0.1%
Dynegy, Inc., Gtd. Notes	6.750		11/01/19		250		231,719
Entertainment    0.1%
Cinemark USA, Inc., Gtd. Notes	5.125		12/15/22		250		254,062
Food    0.2%
Ingles Markets, Inc., Sr. Unsec’d. Notes	5.750		06/15/23		350		351,750
Healthcare - Products    0.1%
Mallinckrodt International Finance SA, Gtd. Notes	4.750		04/15/23		200		176,500
Healthcare - Services    0.7%
CHS/Community Health Systems, Inc., Gtd. Notes	8.000		11/15/19		500		472,500
Select Medical Corp., Gtd. Notes	6.375		06/01/21		500		450,000
Tenet Healthcare Corp., Sr. Unsec’d. Notes	8.125		04/01/22		700		688,184
							1,610,684
Lodging    0.3%
FelCor Lodging LP, Sr. Sec’d. Notes	5.625		03/01/23		350		356,125
MGM Resorts International, Gtd. Notes	8.625		02/01/19		250		283,125
							639,250
Media    0.1%
DISH DBS Corp., Gtd. Notes	7.875		09/01/19		250		270,810
Retail
Hot Topic, Inc., Sr. Sec’d. Notes, 144A (original cost $98,618; purchased 06/06/13)(b)(c)	9.250		06/15/21		100		92,000
Software    0.2%
Infor US, Inc., Gtd. Notes, 144A (original cost $434,563; purchased 04/09/15)(b)(c)	6.500		05/15/22		425		368,687

See Notes to Financial Statements.

26

Description	Interest Rate	Maturity Date		Principal Amount (000)#		Value (Note 1)
CORPORATE BONDS (Continued)
Telecommunications    0.2%
CommScope Holding Co., Inc., Sr. Unsec’d. Notes, PIK, 144A	6.625%		06/01/20		332	$	338,641
TOTAL CORPORATE BONDS (cost $4,976,303)							4,667,041
TOTAL LONG-TERM INVESTMENTS (cost $224,470,834)							210,942,348
				Shares
SHORT-TERM INVESTMENT    1.6%
AFFILIATED MONEY MARKET MUTUAL FUND
Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $3,540,846)(Note 3)(e)					3,540,846		3,540,846
TOTAL INVESTMENTS    98.3% (cost $228,011,680)(Note 5)							214,483,194
Other assets in excess of liabilities    1.7%							3,810,659
NET ASSETS    100.0%						$	218,293,853

The following abbreviations are used in the annual report:

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.

CLO—Collateralized Loan Obligation

L2—Level 2

L3—Level 3

OTC—Over-the-counter

PIK—Payment-in-Kind

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

(a) Variable rate instrument. The interest rate shown reflects the rate in effect at February 29, 2016.

(b) Indicates a security that has been deemed illiquid. (Unaudited)

(c) Indicates a restricted security; the aggregate original cost of the restricted securities is $533,181. The aggregate value of $460,687 is approximately 0.2% of net assets.

(d) Indicates a Level 3 security. The aggregate value of Level 3 securities is $30,641,618 and 14.0% of net assets.

(e) Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund.

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 27

Portfolio of Investments (continued)

as of February 29, 2016

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—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.

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

The following is a summary of the inputs used as of February 29, 2016 in valuing such portfolio securities:

	Level 1		Level 2		Level 3
Investments in Securities
Asset-Backed Securities
Collateralized Loan Obligations	$	—	$	1,961,348	$	—
Bank Loans		—		173,672,341		30,641,618
Corporate Bonds		—		4,667,041		—
Affiliated Money Market Mutual Fund		3,540,846		—		—
Total	$	3,540,846	$	180,300,730	$	30,641,618

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

	Bank Loans
Balance as of 2/28/15	$	11,916,236
Realized gain (loss)		30,859
Change in unrealized appreciation (depreciation)*		(2,463,815	)
Purchases		23,540,745
Sales/Paydowns		(6,049,096	)
Accrued discount/premium		8,050
Transfers into Level 3		7,066,341
Transfers out of Level 3		(3,407,702	)
Balance as of 2/29/16	$	30,641,618

* Of which, $(2,348,733) was relating to securities held at the reporting period end.

See Notes to Financial Statements.

28

Level 3 securities as presented in the table above are being fair valued using pricing methodologies approved by the Board, which contain unobservable inputs as follows:

Level 3 Securities	Fair Value as of February 29, 2016		Valuation Methodology		Unobservable Inputs	Range (Weighted Average)
Bank Loans	$	30,641,618		Market Approach	Single Broker Indicative Quote	$50.00 - $99.75 ($91.72)

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, securities transferred levels as follows:

Investments in Securities	Amount Transferred		Level Transfer		Logic
Bank Loans	$	3,407,702		L3 to L2	Single Broker Indicative Quote to Multiple Broker Quotes
Bank Loans		7,066,341		L2 to L3	Multiple Broker Quotes to Single Broker Indicative Quote

The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of February 29, 2016 were as follows (Unaudited):

Technology	12.2	%
Health Care & Pharmaceutical	11.6
Retailers	7.6
Capital Goods	6.3
Consumer	5.8
Chemicals	5.4
Other Industry	5.1
Building Materials & Construction	4.8
Media & Entertainment	4.4
Packaging	4.2
Gaming	2.9
Telecommunications	2.8
Automotive	2.5
Foods	2.2
Supermarkets	2.0
Electric	1.9
Brokerage	1.7
Affiliated Money Market Mutual Fund	1.6
Cable	1.5
Insurance	1.5
Metals & Mining	1.1
Restaurants	1.1	%
Energy—Refining	1.0
Aerospace & Defense	1.0
Transportation	0.9
Collateralized Loan Obligations	0.9
Energy—Other	0.8
Healthcare-Services	0.7
Lodging	0.6
Real Estate	0.6
Airlines	0.4
Entertainment	0.3
Paper	0.2
Software	0.2
Food	0.2
Media	0.1
Healthcare-Products	0.1
Cosmetics/Personal Care	0.1
	98.3
Other assets in excess of liabilities	1.7
	100.0	%

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 29

Statement of Assets & Liabilities

as of February 29, 2016

Assets
Investments at value:
Unaffiliated investments (cost $224,470,834)	$	210,942,348
Affiliated investments (cost $3,540,846)		3,540,846
Cash		532,147
Receivable for investments sold		10,922,336
Dividends and interest receivable		1,253,053
Receivable for Fund shares sold		387,102
Prepaid expenses		973
Total assets		227,578,805
Liabilities
Payable for investments purchased		8,398,662
Payable for Fund shares reacquired		484,689
Accrued expenses		177,806
Management fee payable		112,380
Dividends payable		70,274
Distribution fee payable		37,767
Affiliated transfer agent fee payable		3,374
Total liabilities		9,284,952
Net Assets	$	218,293,853
Net assets were comprised of:
Common stock, at par	$	232,467
Paid-in capital in excess of par		232,504,348
		232,736,815
Undistributed net investment income		115,337
Accumulated net realized loss on investment transactions		(1,029,813	)
Net unrealized depreciation on investments		(13,528,486	)
Net assets, February 29, 2016	$	218,293,853

See Notes to Financial Statements.

30

Class A
Net asset value and redemption price per share ($47,682,640 ÷ 5,082,078 shares of common stock issued and outstanding)	$	9.38
Maximum sales charge (3.25% of offering price)		0.32
Maximum offering price to public	$	9.70
Class C
Net asset value, offering price and redemption price per share ($35,026,860 ÷ 3,732,943 shares of common stock issued and outstanding)	$	9.38
Class Q
Net asset value, offering price and redemption price per share ($9,666 ÷ 1,029 shares of common stock issued and outstanding)	$	9.39
Class Z
Net asset value, offering price and redemption price per share ($135,574,687 ÷ 14,430,640 shares of common stock issued and outstanding)	$	9.39

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 31

Statement of Operations

Year Ended February 29, 2016

Net Investment Income
Income
Interest income	$	8,833,764
Affiliated dividend income		48,734
Total income		8,882,498
Expenses
Management fee		1,326,495
Distribution fee—Class A		101,959
Distribution fee—Class C		335,737
Custodian and accounting fees		334,000
Transfer agent’s fees and expenses (including affiliated expense of $15,300)		173,000
Registration fees		100,000
Audit fee		54,000
Shareholders’ reports		28,000
Legal fees and expenses		28,000
Directors’ fees		15,000
Insurance expenses		2,000
Miscellaneous		12,424
Total expenses		2,510,615
Less: Management fee waiver and/or expense reimbursement		(557,004	)
Net expenses		1,953,611
Net investment income		6,928,887
Realized And Unrealized Gain (Loss) On Investments
Net realized loss on investment transactions		(860,286	)
Net change in unrealized appreciation (depreciation) on investments		(12,350,897	)
Net loss on investment transactions		(13,211,183	)
Net Decrease In Net Assets Resulting From Operations	$	(6,282,296	)

See Notes to Financial Statements.

32

Statement of Changes in Net Assets

	Year Ended February 28/29,
	2016			2015
Increase (Decrease) in Net Assets
Operations
Net investment income	$	6,928,887		$	4,250,264
Net realized loss on investment transactions		(860,286	)		(119,450	)
Net change in unrealized appreciation (depreciation) on investments		(12,350,897	)		(2,304,591	)
Net increase (decrease) in net assets resulting from operations		(6,282,296	)		1,826,223
Dividends and Distributions (Note 1)
Dividends from net investment income
Class A		(1,452,085	)		(1,079,271	)
Class C		(938,774	)		(974,417	)
Class Q		(314	)		—
Class Z		(4,380,417	)		(2,159,710	)
		(6,771,590	)		(4,213,398	)
Distributions from net realized gains
Class A		—			(94,490	)
Class C		—			(100,119	)
Class Z		—			(157,518	)
		—			(352,127	)
Fund share transactions (Net of share conversions) (Note 6)
Net proceeds from shares sold		229,688,066			52,874,661
Net asset value of shares issued in reinvestment of dividends and distributions		6,053,111			4,260,332
Cost of shares reacquired		(113,688,908	)		(58,542,187	)
Net increase (decrease) in net assets from Fund share transactions		122,052,269			(1,407,194	)
Total increase (decrease)		108,998,383			(4,146,496	)
Net Assets:
Beginning of year		109,295,470			113,441,966
End of year (a)	$	218,293,853		$	109,295,470
(a) Includes undistributed net investment income of:	$	115,337		$	—

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 33

Notes to Financial Statements

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 Fund follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.

Securities Valuation: The Fund holds 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 Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to Prudential Investments LLC (“PI” or “Manager”). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.

Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.

Common and preferred stocks, exchange-traded funds, and derivative instruments such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. 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 in the fair value hierarchy.

34

In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.

Common and preferred 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. Such securities are valued using model prices to the extent that the valuation meets the established confidence level for each security. If the confidence level is not met or the vendor does not provide a model price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.

Participatory notes (P-notes) are generally valued based upon the value of a related underlying security that trades actively in the market and are classified as Level 2 in the fair value hierarchy.

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 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.

Fixed income securities traded in the OTC market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices after evaluating observable inputs including, but not limited to yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations, and reported trades. Securities valued using such vendor prices are classified as Level 2 in the fair value hierarchy.

Bank loans traded in the OTC market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Bank loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy.

OTC derivative instruments are generally valued using pricing vendor services, which derive the valuation based on inputs such as underlying asset prices, indices, spreads, interest rates, and exchange rates. These instruments are categorized as Level 2 in the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are generally valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.

Prudential Floating Rate Income Fund 35

Notes to Financial Statements (continued)

Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in 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: Subject to guidelines adopted by the Board, the Fund may invest up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities are valued pursuant to the valuation procedures noted above. 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 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 Directors of 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.

36

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 generally 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 long-term portfolio 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 long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Notwithstanding the above, the Fund does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.

Net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from holdings of foreign currencies, forward currency contracts, disposition of foreign currencies, currency gains (losses) realized between the trade and settlement dates on securities transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies.

Concentration of Risk: The ability of debt securities issuers (other than those issued or guaranteed by the U.S. Government) held by the Fund to meet its obligations may be affected by the economic or political developments in a specific industry, region or country. Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the possibility of political or economic instability or the level of governmental supervision and regulation of foreign securities markets.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized and unrealized gains (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 transfer agency fees specific to Class Q shares which are charged to that share class) and unrealized and realized gains (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 37

Notes to Financial Statements (continued)

Payment in Kind Securities: The Fund may invest in the open market or receive pursuant to debt restructuring, securities that pay in kind (PIK) the interest due on such debt instruments. The PIK interest, computed at the contractual rate specified, is added to the existing principal balance of the debt when issued bonds have same terms as the bond or recorded as a separate bond when terms are different from the existing debt, and is recorded as interest income.

Dividends and Distributions: The Fund declares dividends from net investment income daily and payment is made monthly. Distributions of net realized capital gains, if any, are paid 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-date. Permanent book/tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain (loss) and paid-in capital in excess of par, as appropriate.

Taxes: For federal income tax purposes, the Fund is treated as a separate taxpaying entity. 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 PGIM, Inc. The subadvisory agreement provides that PGIM, Inc. will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PGIM, Inc. is obligated to keep certain books and records of the Fund. PI pays for the services of PGIM, Inc., the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses. Prior to January 4, 2016, PGIM, Inc. was known as Prudential Investment Management, Inc. (“PIM”).

Effective October 1, 2015, 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 up to $5 billion

38

and .675% of the Fund’s average daily net assets in excess of $5 billion. Prior to October 1, 2015, the management fee was accrued daily and paid monthly at an annual rate of .70% of the Fund’s average daily net assets. The effective management fee rate before any waivers and/or expense reimbursement was .70% for the year ended February 29, 2016. The effective management fee rate, net of waivers and/or expense reimbursement, was .41%.

PI had contractually agreed through June 30, 2017 to reimburse and/or waive fees so that the net annual Fund operating expenses (exclusive of distribution and service (12b-1) fees, extraordinary expenses and certain other expenses such as taxes, interest and brokerage commissions) do not exceed .80% 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, Class Q 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 Q and 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. For the year ended February 29, 2016, PIMS has contractually agreed to limit such fees to .25% of the average daily net assets of the Class A shares through March 8, 2015. Effective March 9, 2015, the Class A contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets and the .05% contractual 12b-1 fee waiver was terminated.

PIMS has advised the Fund that it has received $128,786 in front-end sales charges resulting from sales of Class A shares during the year ended February 29, 2016. From these fees, PIMS paid 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 year ended February 29, 2016, it received $9,273 and $16,989 in contingent deferred sales charges imposed upon redemptions by certain Class A and Class C shareholders, respectively.

PI, PGIM, Inc. 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’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

Prudential Floating Rate Income Fund 39

Notes to Financial Statements (continued)

The Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act, that permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors, and/or common officers. Such transactions are subject to ratification by the Board.

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”. As of March 30, 2016, the Core Fund was repositioned as the Prudential Core Ultra Short Bond Fund.

Note 4. Portfolio Securities

The cost of purchases and proceeds from sales of portfolio securities, other than short-term investments and U.S. Government securities, for the year ended February 29, 2016 were $217,808,147 and $100,294,843, respectively.

Note 5. Distributions and Tax Information

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. In order to present undistributed net investment income, accumulated net realized loss on investment transactions and paid-in capital in excess of par on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to undistributed net investment income and accumulated net realized loss on investment transactions. For the year ended February 29, 2016, the adjustments were to decrease undistributed net investment income and decrease accumulated net realized loss on investment transactions by $24,975, due to differences in the treatment for book and tax purposes of certain transactions involving paydowns and premium amortization. Net investment income, net realized loss on investment transactions and net assets were not affected by this change.

For the years ended February 29, 2016 and February 28, 2015, the tax character of distributions paid by the Fund were $6,771,590 and $4,565,525 of ordinary income, respectively.

As of February 29, 2016 the accumulated undistributed earnings on a tax basis was $189,217 of ordinary income. This differs from the amount shown on the Statement of Assets and Liabilities primarily due to cumulative timing differences.

40

The United States federal income tax basis of the Fund’s investments and net unrealized depreciation as of February 29, 2016 were as follows:

Tax Basis	Appreciation	Depreciation	Net Unrealized Depreciation
$227,934,395	$142,835	$(13,594,036)	$(13,451,201)

The difference between book basis and tax basis was primarily attributable to deferred losses on wash sales and the difference in the treatment of premium amortization for book and tax purposes.

For federal income tax purposes, the Fund had a capital loss carryforward as of February 29, 2016 of approximately $1,107,000 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.

Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Note 6. Capital

The Fund offers Class A, Class C, Class Q and Class Z shares. Class A shares are sold with front-end sales charge of up to 3.25%. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a 1% contingent deferred sales charge (“CDSC”), but are not subject to an initial sales charge. The Class A CDSC is waived for purchases by certain retirement or benefit plans. Class C shares redeemed within 12 months of purchase are subject to a 1% CDSC. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class Q and Class Z shares are not subject to any sales or redemption charge and are available only 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 900 million shares of common stock authorized, $.01 par value per share, divided into four classes, designated Class A, Class C, Class Q, and Class Z shares, each of which consists of 200 million, 200 million, 250 million, and 250 million shares, respectively.

As of February 29, 2016, Prudential through its affiliates owned 1,029 Class Q shares of the Fund.

Prudential Floating Rate Income Fund 41

Notes to Financial Statements (continued)

Transactions in shares of common stock were as follows:

Class A	Shares			Amount
Year ended February 29, 2016:
Shares sold		5,686,359		$	55,961,040
Shares issued in reinvestment of dividends and distributions		134,095			1,303,492
Shares reacquired		(3,066,875	)		(29,780,864	)
Net increase (decrease) in shares outstanding before conversion		2,753,579			27,483,668
Shares issued upon conversion from other share class(es)		17,262			166,958
Shares reacquired upon conversion into other share class(es)		(17,873	)		(177,196	)
Net increase (decrease) in shares outstanding		2,752,968		$	27,473,430
Year ended February 28, 2015:
Shares sold		1,009,075		$	10,143,898
Shares issued in reinvestment of dividends and distributions		105,578			1,060,393
Shares reacquired		(1,622,950	)		(16,303,382	)
Net increase (decrease) in shares outstanding before conversion		(508,297	)		(5,099,091	)
Shares issued upon conversion from other share class(es)		2,632			26,785
Shares reacquired upon conversion into other share class(es)		(525,932	)		(5,341,050	)
Net increase (decrease) in shares outstanding		(1,031,597	)	$	(10,413,356	)
Class C
Year ended February 29, 2016:
Shares sold		1,972,699		$	19,388,349
Shares issued in reinvestment of dividends and distributions		93,373			910,135
Shares reacquired		(1,072,672	)		(10,451,403	)
Net increase (decrease) in shares outstanding before conversion		993,400			9,847,081
Shares reacquired upon conversion into other share class(es)		(116,912	)		(1,151,102	)
Net increase (decrease) in shares outstanding		876,488		$	8,695,979
Year ended February 28, 2015:
Shares sold		929,321		$	9,369,019
Shares issued in reinvestment of dividends and distributions		102,195			1,026,063
Shares reacquired		(1,234,585	)		(12,392,176	)
Net increase (decrease) in shares outstanding before conversion		(203,069	)		(1,997,094	)
Shares reacquired upon conversion into other share class(es)		(95,739	)		(967,773	)
Net increase (decrease) in shares outstanding		(298,808	)	$	(2,964,867	)
Class Q
Period ended February 29, 2016*:
Shares sold		997		$	10,000
Shares issued in reinvestment of dividends and distributions		32			314
Net increase (decrease) in shares outstanding		1,029		$	10,314

42

Class Z	Shares			Amount
Year ended February 29, 2016:
Shares sold		15,673,739		$	154,328,677
Shares issued in reinvestment of dividends and distributions		394,469			3,839,170
Shares reacquired		(7,554,346	)		(73,456,641	)
Net increase (decrease) in shares outstanding before conversion		8,513,862			84,711,206
Shares issued upon conversion from other share class(es)		134,635			1,328,299
Shares reacquired upon conversion into other share class(es)		(17,243	)		(166,959	)
Net increase (decrease) in shares outstanding		8,631,254		$	85,872,546
Year ended February 28, 2015:
Shares sold		3,321,641		$	33,361,744
Shares issued in reinvestment of dividends and distributions		216,697			2,173,876
Shares reacquired		(2,975,842	)		(29,846,629	)
Net increase (decrease) in shares outstanding before conversion		562,496			5,688,991
Shares issued upon conversion from other shares class(es)		621,120			6,308,823
Shares reacquired upon conversion into other share class(es)		(2,629	)		(26,785	)
Net increase (decrease) in shares outstanding		1,180,987		$	11,971,029

* Commencement of offering was April 27, 2015.

Note 7. Borrowings

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 October 8, 2015 through October 6, 2016. The Funds pay an annualized commitment fee of .11% of the unused portion of the SCA. Prior to October 8, 2015, the Funds had another SCA that provided a commitment of $900 million and the Funds paid an annualized commitment fee of .075% of the unused portion of the SCA. Interest on any borrowings under the SCA is paid at contracted market rates. The Fund’s portion of the commitment fee for the unused amount is accrued daily and paid quarterly.

The Fund did not utilize the SCA during the year ended February 29, 2016.

Note 8. New Accounting Pronouncements

In May 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-07 regarding “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share”. The amendments in this update are effective for the Fund for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU No. 2015-07 will eliminate the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (“NAV”) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. Management has evaluated the implications of ASU No. 2015-07 and has determined that there is no impact on the financial statement disclosures.

Prudential Floating Rate Income Fund 43

Notes to Financial Statements (continued)

In January 2016, the FASB issued ASU No. 2016-01 regarding “Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information and addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The new standard affects all entities that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. At this time, management is evaluating the implications of ASU No. 2016-01 and its impact on the financial statements and disclosures has not yet been determined.

44

Financial Highlights

Class A Shares
	Year Ended February 28/29,												March 30, 2011(a) through February 29,
	2016(f)			2015			2014			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$9.94			$10.18			$10.12			$9.89			$10.00
Income (loss) from investment operations:
Net investment income		.36			.40			.37			.43			.35
Net realized and unrealized gain (loss) on investment transactions		(.57	)		(.22	)		.08			.26			(.09	)
Total from investment operations		(.21	)		.18			.45			.69			.26
Less Dividends and Distributions:
Dividends from net investment income		(.35	)		(.39	)		(.36	)		(.42	)		(.37	)
Distributions from net realized gains		-			(.03	)		(.03	)		(.04	)		-	(b)
Total dividends and distributions		(.35	)		(.42	)		(.39	)		(.46	)		(.37	)
Net asset value, end of period		$9.38			$9.94			$10.18			$10.12			$9.89
Total Return(c):		(2.24)%			1.80%			4.53%			7.11%			2.70%
Ratios/Supplemental Data:
Net assets, end of period (000)		$47,683			$23,158			$34,211			$22,059			$5,136
Average net assets (000)		$40,785			$28,113			$31,911			$12,454			$2,434
Ratios to average net assets(d)(e):
Expenses after waivers and/or expense reimbursement		1.05%			1.10%			1.20%			1.20%			1.20%	(g)
Expenses before waivers and/or expense reimbursement		1.34%			1.60%			1.60%			1.92%			2.45%	(g)
Net investment income		3.65%			3.89%			3.65%			4.35%			4.10%	(g)
Portfolio turnover rate		55%			64%			82%			106%			163%	(h)

(a) Commencement of operations.

(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, if any. 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 had contractually agreed to limit its distribution and service (12b-1) fees to .25% of the average daily net assets through March 8, 2015. Effective March 9, 2015, the contractual distribution and service (12b-1) fees were reduced from .30% to .25% of the average daily net assets.

(f) Calculated based on average shares outstanding during the period.

(g) Annualized.

(h) Not annualized.

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 45

Financial Highlights (continued)

Class C Shares
	Year Ended February 28/29,												March 30, 2011(a) through February 29,
	2016(e)			2015			2014			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$9.95			$10.19			$10.13			$9.90			$10.00
Income (loss) from investment operations:
Net investment income		.28			.32			.29			.36			.28
Net realized and unrealized gain (loss) on investment transactions		(.58	)		(.22	)		.08			.26			(.08	)
Total from investment operations		(.30	)		.10			.37			.62			.20
Less Dividends and Distributions:
Dividends from net investment income		(.27	)		(.31	)		(.28	)		(.35	)		(.30	)
Distributions from net realized gains		-			(.03	)		(.03	)		(.04	)		-	(b)
Total dividends and distributions		(.27	)		(.34	)		(.31	)		(.39	)		(.30	)
Net asset value, end of period		$9.38			$9.95			$10.19			$10.13			$9.90
Total Return(c):		(3.07)%			1.04%			3.74%			6.29%			2.10%
Ratios/Supplemental Data:
Net assets, end of period (000)		$35,027			$28,408			$32,149			$7,403			$1,742
Average net assets (000)		$33,571			$31,363			$21,337			$2,997			$1,235
Ratios to average net assets(d):
Expenses after waivers and/or expense reimbursement		1.80%			1.85%			1.95%			1.95%			1.95%	(f)
Expenses before waivers and/or expense reimbursement		2.11%			2.30%			2.35%			2.62%			3.15%	(f)
Net investment income		2.88%			3.15%			2.91%			3.57%			3.43%	(f)
Portfolio turnover rate		55%			64%			82%			106%			163%	(g)

(a) Commencement of operations.

(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, if any. 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) Calculated based on average shares outstanding during the period.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.

46

Class Q Shares
	April 27, 2015(a) through February 29, 2016(d)
Per Share Operating Performance:
Net Asset Value, Beginning of Period		$10.03
Income (loss) from investment operations:
Net investment income		.32
Net realized and unrealized gain (loss) on investment and foreign currency transactions		(.65	)
Total from investment operations		(.33	)
Dividends from net investment income		(.31	)
Net asset value, end of period		$9.39
Total Return(b):		(3.35)%
Ratios/Supplemental Data:
Net assets, end of period (000)		$10
Average net assets (000)		$10
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		.80%	(e)
Expenses before waivers and/or expense reimbursement		.99%	(e)
Net investment income		3.87%	(e)
Portfolio turnover rate		55%	(f)

(a) Commencement of operations.

(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

(c) Does not include expenses of the underlying portfolio in which the Series invests.

(d) Calculated based on average shares outstanding during the period.

(e) Annualized.

(f) Not annualized.

See Notes to Financial Statements.

Prudential Floating Rate Income Fund 47

Financial Highlights (continued)

Class Z Shares
	Year Ended February 28//29,												March 30, 2011(a) through February 29,
	2016(e)			2015			2014			2013			2012
Per Share Operating Performance:
Net Asset Value, Beginning Of Period		$9.95			$10.19			$10.14			$9.91			$10.00
Income (loss) from investment operations:
Net investment income		.38			.42			.40			.46			.37
Net realized and unrealized gain (loss) on investment transactions		(.57	)		(.22	)		.06			.26			(.07	)
Total from investment operations		(.19	)		.20			.46			.72			.30
Less Dividends and Distributions:
Dividends from net investment income		(.37	)		(.41	)		(.38	)		(.45	)		(.39	)
Distributions from net realized gains		-			(.03	)		(.03	)		(.04	)		-	(b)
Total dividends and distributions		(.37	)		(.44	)		(.41	)		(.49	)		(.39	)
Net asset value, end of period		$9.39			$9.95			$10.19			$10.14			$9.91
Total Return(c):		(1.98)%			2.05%			4.68%			7.36%			3.13%
Ratios/Supplemental Data:
Net assets, end of period (000)		$135,575			$57,729			$47,082			$29,889			$27,488
Average net assets (000)		$115,125			$52,159			$44,076			$27,983			$25,812
Ratios to average net assets(d):
Expenses after waivers and/or expense reimbursement		.80%			.85%			.95%			.95%			.95%	(f)
Expenses before waivers and/or expense reimbursement		1.09%			1.30%			1.31%			1.62%			2.15%	(f)
Net investment income		3.88%			4.16%			3.85%			4.63%			4.08%	(f)
Portfolio turnover rate		55%			64%			82%			106%			163%	(g)

(a) Commencement of operations.

(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, if any. 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) Calculated based on average shares outstanding during the period.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.

48

Report of Independent Registered Public

Accounting Firm

The Board of Directors and Shareholders

Prudential Investment Portfolios, Inc. 14:

We have audited the accompanying statement of assets and liabilities of Prudential Floating Rate Income Fund (hereafter referred to as the “Fund”), a series of Prudential Investment Portfolios, Inc. 14, including the portfolio of investments, as of February 29, 2016, and the related statement of operations for the year then ended, the statements of changes in net assets for each of the years in the two-year period then ended, and financial highlights for each of the years or periods in the four-year period then ended and for the period March 30, 2011 (commencement of operations) through February 29, 2012. These financial statements and financial highlights are the responsibility of the Fund’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of February 29, 2016, by correspondence with the custodian, transfer agent and brokers or by other appropriate auditing procedures when replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Fund as of February 29, 2016, and the results of its operations for the year then ended, the changes in its net assets and financial highlights for each of the years or periods described in the above paragraph, in conformity with U.S. generally accepted accounting principles.

New York, New York

April 15, 2016

Prudential Floating Rate Income Fund 49

Tax Information (unaudited)

For the year ended February 29, 2016, the Fund reports the maximum amount allowable but not less than 99.19% as interest-related dividends in accordance with Sections 871(k)(1) and 881(e)(1) of the Internal Revenue Code.

In January 2017, you will be advised on IRS Form 1099-DIV or substitute 1099-DIV, as to the federal tax status of the dividends received by you in calendar year 2016.

50

INFORMATION ABOUT BOARD MEMBERS AND OFFICERS

(Unaudited)

Information about Board Members and Officers of the Funds is set forth below. Board Members who are not deemed to be “interested persons” of the Funds, as defined in the 1940 Act, are referred to as “Independent Board Members.” Board Members who are deemed to be “interested persons” of the Funds are referred to as “Interested Board Members.” The Board Members are responsible for the overall supervision of the operations of the Funds and perform the various duties imposed on the directors of investment companies by the 1940 Act. The Board in turn elects the Officers, who are responsible for administering the day-to-day operations of the Funds.

Independent Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Ellen S. Alberding (58) Board Member Portfolios Overseen: 67	President and Board Member, The Joyce Foundation (charitable foundation) (since 2002); Vice Chair, City Colleges of Chicago (community college system) (since 2011); Trustee, Skills for America’s Future (national initiative to connect employers to community colleges) (since 2011); Trustee, National Park Foundation (charitable foundation for national park system) (since 2009); Trustee, Economic Club of Chicago (since 2009).	None.
Kevin J. Bannon (63) Board Member Portfolios Overseen: 67	Managing Director (April 2008-May 2015) and Chief Investment Officer (October 2008-November 2013) of Highmount Capital LLC (registered investment adviser); formerly Executive Vice President and Chief Investment Officer (April 1993-August 2007) of Bank of New York Company; President (May 2003-May 2007) of BNY Hamilton Family of Mutual Funds.	Director of Urstadt Biddle Properties (equity real estate investment trust) (since September 2008).
Linda W. Bynoe (63) Board Member Portfolios Overseen: 67	President and Chief Executive Officer (since March 1995) and formerly Chief Operating Officer (December 1989-February 1995) of Telemat Ltd. (management consulting); formerly Vice President (January 1985-June 1989) at Morgan Stanley & Co. (broker-dealer).	Director of Simon Property Group, Inc. (retail real estate) (May 2003-May 2012); Director of Anixter International, Inc. (communication products distributor) (since January 2006); Director of Northern Trust Corporation (financial services) (since April 2006); Trustee of Equity Residential (residential real estate) (since December 2009).

Prudential Floating Rate Income Fund

Independent Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Keith F. Hartstein (59) Board Member Portfolios Overseen: 67	Retired; Member (since November 2014) of the Governing Council of the Independent Directors Council (organization of independent mutual fund directors); formerly President and Chief Executive Officer (2005-2012), Senior Vice President (2004-2005), Senior Vice President of Sales and Marketing (1997-2004), and various executive management positions (1990-1997), John Hancock Funds, LLC (asset management); Chairman, Investment Company Institute’s Sales Force Marketing Committee (2003-2008).	None.
Michael S. Hyland, CFA (70) Board Member Portfolios Overseen: 67	Retired (since February 2005); formerly Senior Managing Director (July 2001-February 2005) of Bear Stearns & Co, Inc.; Global Partner, INVESCO (1999-2001); Managing Director and President of Salomon Brothers Asset Management (1989-1999).	None.
Richard A. Redeker (72) Board Member & Independent Chair Portfolios Overseen: 67	Retired Mutual Fund Senior Executive (47 years); Management Consultant; Director, Mutual Fund Directors Forum (since 2014); Independent Directors Council (organization of independent mutual fund directors)-Executive Committee, Chair of Policy Steering Committee, Governing Council.	None.
Stephen G. Stoneburn (72) Board Member Portfolios Overseen: 67	Chairman (since July 2011), President and Chief Executive Officer (since June 1996) of Quadrant Media Corp. (publishing company); formerly President (June 1995-June 1996) of Argus Integrated Media, Inc.; Senior Vice President and Managing Director (January 1993-1995) of Cowles Business Media; Senior Vice President of Fairchild Publications, Inc. (1975-1989).	None.

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Interested Board Members(1)
Name, Address, Age Position(s) Portfolios Overseen	Principal Occupation(s) During Past Five Years	Other Directorships Held During Past Five Years
Stuart S. Parker (53) Board Member & President Portfolios Overseen: 67	President of Prudential Investments LLC (since January 2012); Executive Vice President of Prudential Investment Management Services LLC (since December 2012); Executive Vice President of Jennison Associates LLC and Head of Retail Distribution of Prudential Investments LLC (June 2005-December 2011).	None.
Scott E. Benjamin (42) Board Member & Vice President Portfolios Overseen: 67	Executive Vice President (since June 2009) of Prudential Investments LLC; Executive Vice President (June 2009-June 2012) and Vice President (since June 2012) of Prudential Investment Management Services LLC; Executive Vice President (since September 2009) of AST Investment Services, Inc.; Senior Vice President of Product Development and Marketing, Prudential Investments (since February 2006); Vice President of Product Development and Product Management, Prudential Investments (2003-2006).	None.
Grace C. Torres* (56) Board Member Portfolios Overseen: 65	Retired; formerly Treasurer and Principal Financial and Accounting Officer of the Prudential Investments Funds, Target Funds, Advanced Series Trust, Prudential Variable Contract Accounts and The Prudential Series Fund (1998-June 2014); Assistant Treasurer (March 1999-June 2014) and Senior Vice President (September 1999-June 2014) of Prudential Investments LLC; Assistant Treasurer (May 2003-June 2014) and Vice President (June 2005-June 2014) of AST Investment Services, Inc.; Senior Vice President and Assistant Treasurer (May 2003-June 2014) of Prudential Annuities Advisory Services, Inc.	Director (since July 2015) of Sun Bancorp, Inc. N.A.

* Note: Prior to her retirement in 2014, Ms. Torres was employed by Prudential Investments LLC. Due to her prior employment, she is considered to be an “interested person” under the 1940 Act. Ms. Torres is a non-management Interested Board Member.

⁽¹⁾  The year that each Board Member joined the Fund’s Board is as follows:

Ellen S. Alberding, 2013; Kevin J. Bannon, 2008; Linda W. Bynoe, 2005; Keith F. Hartstein, 2013; Michael S. Hyland, 2008; Richard A. Redeker, 1993; Stephen G. Stoneburn, 2003; Grace C. Torres, 2014; Stuart S. Parker, Board Member and President since 2012; Scott E. Benjamin, Board Member since 2010 and Vice President since 2009.

Prudential Floating Rate Income Fund

Fund Officers(a)
Name, Address and Age Position with Fund	Principal Occupation(s) During Past Five Years	Length of Service as Fund Officer
Raymond A. O’Hara (60) Chief Legal Officer	Vice President and Corporate Counsel (since July 2010) of Prudential Insurance Company of America (Prudential); Vice President (March 2011-Present) of Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey; Vice President and Corporate Counsel (March 2011-Present) of Prudential Annuities Life Assurance Corporation; Chief Legal Officer of Prudential Investments LLC (since June 2012); Chief Legal Officer of Prudential Mutual Fund Services LLC (since June 2012) and Corporate Counsel of AST Investment Services, Inc. (since June 2012); formerly Assistant Vice President and Corporate Counsel (September 2008-July 2010) of The Hartford Financial Services Group, Inc.; formerly Associate (September 1980-December 1987) and Partner (January 1988–August 2008) of Blazzard & Hasenauer, P.C. (formerly, Blazzard, Grodd & Hasenauer, P.C.).	Since 2012
Chad A. Earnst (40) Chief Compliance Officer	Chief Compliance Officer (September 2014-Present) of Prudential Investments LLC; Chief Compliance Officer (September 2014-Present) of the Prudential Investments Funds, Target Funds, Advanced Series Trust, The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc., Prudential Global Short Duration High Yield Income Fund, Inc., Prudential Short Duration High Yield Fund, Inc. and Prudential Jennison MLP Income Fund, Inc.; formerly Assistant Director (March 2010-August 2014) of the Asset Management Unit, Division of Enforcement, US Securities & Exchange Commission; Assistant Regional Director (January 2010-August 2014), Branch Chief (June 2006–December 2009) and Senior Counsel (April 2003-May 2006) of the Miami Regional Office, Division of Enforcement, US Securities & Exchange Commission.	Since 2014
Deborah A. Docs (58) Secretary	Vice President and Corporate Counsel (since January 2001) of Prudential; Vice President (since December 1996) and Assistant Secretary (since March 1999) of Prudential Investments LLC; formerly Vice President and Assistant Secretary (May 2003-June 2005) of AST Investment Services, Inc.	Since 2004
Jonathan D. Shain (57) Assistant Secretary	Vice President and Corporate Counsel (since August 1998) of Prudential; Vice President and Assistant Secretary (since May 2001) of Prudential Investments LLC; Vice President and Assistant Secretary (since February 2001) of Prudential Mutual Fund Services LLC; formerly Vice President and Assistant Secretary (May 2003-June 2005) of AST Investment Services, Inc.	Since 2005

Visit our website at www.prudentialfunds.com

Fund Officers(a)
Name, Address and Age Position with Fund	Principal Occupation(s) During Past Five Years	Length of Service as Fund Officer
Claudia DiGiacomo (41) Assistant Secretary	Vice President and Corporate Counsel (since January 2005) of Prudential; Vice President and Assistant Secretary of Prudential Investments LLC (since December 2005); Associate at Sidley Austin Brown & Wood LLP (1999-2004).	Since 2005
Andrew R. French (53) Assistant Secretary	Vice President and Corporate Counsel (since February 2010) of Prudential; formerly Director and Corporate Counsel (2006-2010) of Prudential; Vice President and Assistant Secretary (since January 2007) of Prudential Investments LLC; Vice President and Assistant Secretary (since January 2007) of Prudential Mutual Fund Services LLC.	Since 2006
Amanda S. Ryan (38) Assistant Secretary	Director and Corporate Counsel (since March 2012) of Prudential; Director and Assistant Secretary (since June 2012) of Prudential Investments LLC; Associate at Ropes & Gray LLP (2008-2012).	Since 2012
Theresa C. Thompson (53) Deputy Chief Compliance Officer	Vice President, Compliance, Prudential Investments LLC (since April 2004); and Director, Compliance, Prudential Investments LLC (2001-2004).	Since 2008
Richard W. Kinville (47) Anti-Money Laundering Compliance Officer	Vice President, Corporate Compliance, Anti-Money Laundering Unit (since January 2005) of Prudential; committee member of the American Council of Life Insurers Anti-Money Laundering and Critical Infrastructure Committee (since January 2007); formerly Investigator and Supervisor in the Special Investigations Unit for the New York Central Mutual Fire Insurance Company (August 1994-January 1999); Investigator in AXA Financial’s Internal Audit Department and Manager in AXA’s Anti-Money Laundering Office (January 1999-January 2005); first chair of the American Council of Life Insurers Anti-Money Laundering and Critical Infrastructure Committee (June 2007-December 2009).	Since 2011
M. Sadiq Peshimam (52) Treasurer and Principal Financial and Accounting Officer	Vice President (since 2005) of Prudential Investments LLC; formerly Assistant Treasurer of funds in the Prudential Mutual Fund Complex (2006-2014).	Since 2006
Peter Parrella (57) Assistant Treasurer	Vice President (since 2007) and Director (2004-2007) within Prudential Mutual Fund Administration; formerly Tax Manager at SSB Citi Fund Management LLC (1997-2004).	Since 2007
Lana Lomuti (48) Assistant Treasurer	Vice President (since 2007) and Director (2005-2007), within Prudential Mutual Fund Administration; formerly Assistant Treasurer (December 2007-February 2014) of The Greater China Fund, Inc.	Since 2014
Linda McMullin (54) Assistant Treasurer	Vice President (since 2011) and Director (2008-2011) within Prudential Mutual Fund Administration.	Since 2014
Kelly A. Coyne (47) Assistant Treasurer	Director, Investment Operations of Prudential Mutual Fund Services LLC (since 2010).	Since 2015

Prudential Floating Rate Income Fund

^(a)  Excludes Mr. Parker and Mr. Benjamin, interested Board Members who also serve as President and Vice President, respectively.

Explanatory Notes to Tables:

• Board Members are deemed to be “Interested,” as defined in the 1940 Act, by reason of their affiliation with Prudential Investments LLC and/or an affiliate of Prudential Investments LLC.

• Unless otherwise noted, the address of all Board Members and Officers is c/o Prudential Investments LLC, 655 Broad Street, Newark, New Jersey 07102-4410.

• There is no set term of office for Board Members or Officers. The Board Members have adopted a retirement policy, which calls for the retirement of Board Members on December 31 of the year in which they reach the age of 75.

• “Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the 1934 Act (that is, “public companies”) or other investment companies registered under the 1940 Act.

• “Portfolios Overseen” includes all investment companies managed by Prudential Investments LLC. The investment companies for which Prudential Investments LLC serves as manager include the Prudential Investments Mutual Funds, The Prudential Variable Contract Accounts, Target Mutual Funds, Prudential Short Duration High Yield Fund, Inc., Prudential Global Short Duration High Yield Fund, Inc., The Prudential Series Fund, Prudential’s Gibraltar Fund, Inc. and the Advanced Series Trust.

Visit our website at www.prudentialfunds.com

n    MAIL	n    TELEPHONE	n    WEBSITE
655 Broad 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 • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres

OFFICERS

Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, 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 • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer

MANAGER	Prudential Investments LLC	655 Broad Street Newark, NJ 07102
INVESTMENT SUBADVISER	PGIM, Inc.	655 Broad Street Newark, NJ 07102
DISTRIBUTOR	Prudential Investment Management Services LLC	655 Broad 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, 655 Broad Street, 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 no sooner than 15 days after the end of the month.

The Fund’s Statement of Additional Information contains additional information about the Fund’s Directors and is available without charge, upon request, by calling (800) 225-1852.

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	Q	Z
NASDAQ	FRFAX	FRFCX	PFRIX	FRFZX
CUSIP	74439V602	74439V701	74439V883	74439V800

MF211E    0290762-00001-00

Item 2 – Code of Ethics — See Exhibit (a)

As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer.

The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant 800-225-1852, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.

Item 3 – Audit Committee Financial Expert –

The registrant’s Board has determined that Mr. Kevin J. Bannon, member of the Board’s Audit Committee is an “audit committee financial expert,” and that he is “independent,” for purposes of this Item.

Item 4 – Principal Accountant Fees and Services –

(a) Audit Fees

For the fiscal years ended February 29, 2016 and February 28, 2015, KPMG LLP (“KPMG”), the Registrant’s principal accountant, billed the Registrant $98,003 and $87,005, respectively, for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.

(b) Audit-Related Fees

For the fiscal years ended February 29, 2016 and February 28, 2015: none.

(c) Tax Fees

For the fiscal years ended February 29, 2016 and February 28, 2015: none.

(d) All Other Fees

For the fiscal years ended February 29, 2016 and February 28, 2015: none.

(e) (1) Audit Committee Pre-Approval Policies and Procedures

THE PRUDENTIAL MUTUAL FUNDS

AUDIT COMMITTEE POLICY

on

Pre-Approval of Services Provided by the Independent Accountants

The Audit Committee of each Prudential Mutual Fund is charged with the responsibility to monitor the independence of the Fund’s independent accountants. As part of this responsibility, the Audit Committee must pre-approve any independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement of the independent accountants, the Audit Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:

• a review of the nature of the professional services expected to be provided,

• a review of the safeguards put into place by the accounting firm to safeguard independence, and

• periodic meetings with the accounting firm.

Policy for Audit and Non-Audit Services Provided to the Funds

On an annual basis, the scope of audits for each Fund, audit fees and expenses, and audit-related and non-audit services (and fees proposed in respect thereof) proposed to be performed by the Fund’s independent accountants will be presented by the Treasurer and the independent accountants to the Audit Committee for review and, as appropriate, approval prior to the initiation of such services. Such presentation shall be accompanied by confirmation by both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants. Proposed services shall be described in sufficient detail to enable the Audit Committee to assess the appropriateness of such services and fees, and the compatibility of the provision of such services with the auditor’s independence. The Committee shall receive periodic reports on the progress of the audit and other services which are approved by the Committee or by the Committee Chair pursuant to authority delegated in this Policy.

The categories of services enumerated under “Audit Services”, “Audit-related Services”, and “Tax Services” are intended to provide guidance to the Treasurer and the independent accountants as to those categories of services which the Committee believes are generally consistent with the independence of the independent accountants and which the Committee (or the Committee Chair) would expect upon the presentation of specific proposals to pre-approve. The enumerated categories are not intended as an exclusive list of audit, audit-related or tax services, which the Committee (or the Committee Chair) would consider for pre-approval.

Audit Services

The following categories of audit services are considered to be consistent with the role of the Fund’s independent accountants:

• Annual Fund financial statement audits

• Seed audits (related to new product filings, as required)

• SEC and regulatory filings and consents

Audit-related Services

The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants:

• Accounting consultations

• Fund merger support services

• Agreed Upon Procedure Reports

• Attestation Reports

• Other Internal Control Reports

Individual audit-related services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000.

Tax Services

The following categories of tax services are considered to be consistent with the role of the Fund’s independent accountants:

• Tax compliance services related to the filing or amendment of the following:

• Federal, state and local income tax compliance; and,

• Sales and use tax compliance

• Timely RIC qualification reviews

• Tax distribution analysis and planning

• Tax authority examination services

• Tax appeals support services

• Accounting methods studies

• Fund merger support services

• Tax consulting services and related projects

Individual tax services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000.

Other Non-audit Services

Certain non-audit services that the independent accountants are legally permitted to render will be subject to pre-approval by the Committee or by one or more Committee members to whom the Committee has delegated this authority and who will report to the full Committee any pre-approval decisions made pursuant to this Policy. Non-audit services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.

Proscribed Services

The Fund’s independent accountants will not render services in the following categories of non-audit services:

• Bookkeeping or other services related to the accounting records or financial statements of the Fund

• Financial information systems design and implementation

• Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

• Actuarial services

• Internal audit outsourcing services

• Management functions or human resources

• Broker or dealer, investment adviser, or investment banking services

• Legal services and expert services unrelated to the audit

• Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval of Non-Audit Services Provided to Other Entities Within the Prudential Fund Complex

Certain non-audit services provided to Prudential Investments LLC or any of its affiliates that also provide ongoing services to the Prudential Mutual Funds will be subject to pre-approval by the Audit Committee. The only non-audit services provided to these entities that will require pre-approval are those related directly to the operations and financial reporting of the Funds. Individual projects that are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000. Services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.

Although the Audit Committee will not pre-approve all services provided to Prudential Investments LLC and its affiliates, the Committee will receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to Prudential Investments and its affiliates.

(e) (2) Percentage of services referred to in 4(b) – 4(d) that were approved by the audit committee –

For the fiscal years ended February 29, 2016 and February 28, 2015: none.

(f) Percentage of hours expended attributable to work performed by other than full time employees of principal accountant if greater than 50%.

The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.

(g) Non-Audit Fees

The aggregate non-audit fees billed by KPMG for services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant for the fiscal years ended February 29, 2016 and February 28, 2015 was $0 and $0, respectively.

(h) Principal Accountant’s Independence

Not applicable as KPMG has not provided non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X.

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 – Attached hereto as Exhibit EX-99.CODE-ETH
		(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:	April 18, 2016

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:	April 18, 2016
By:	/s/ M. Sadiq Peshimam
	M. Sadiq Peshimam
	Treasurer and Principal Financial and Accounting Officer
Date:	April 18, 2016