0001193125-13-275044.txt : 20130627 0001193125-13-275044.hdr.sgml : 20130627 20130627172701 ACCESSION NUMBER: 0001193125-13-275044 CONFORMED SUBMISSION TYPE: N-CSRS PUBLIC DOCUMENT COUNT: 8 CONFORMED PERIOD OF REPORT: 20130430 FILED AS OF DATE: 20130627 DATE AS OF CHANGE: 20130627 EFFECTIVENESS DATE: 20130627 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC. CENTRAL INDEX KEY: 0000793159 IRS NUMBER: 133352347 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: N-CSRS SEC ACT: 1940 Act SEC FILE NUMBER: 811-04661 FILM NUMBER: 13938369 BUSINESS ADDRESS: STREET 1: 100 MULBERRY STREET CITY: NEWARK STATE: NJ ZIP: 07102 BUSINESS PHONE: 973-802-6469 MAIL ADDRESS: STREET 1: 100 MULBERRY STREET CITY: NEWARK STATE: NJ ZIP: 07102 FORMER COMPANY: FORMER CONFORMED NAME: DRYDEN GLOBAL TOTAL RETURN FUND INC DATE OF NAME CHANGE: 20030716 FORMER COMPANY: FORMER CONFORMED NAME: PRUDENTIAL GLOBAL TOTAL RETURN FUND INC DATE OF NAME CHANGE: 19990816 FORMER COMPANY: FORMER CONFORMED NAME: GLOBAL TOTAL RETURN FUND INC /MD DATE OF NAME CHANGE: 19950301 0000793159 S000004375 Prudential Global Total Return Fund, Inc. C000012110 Class A GTRAX C000012111 Class B PBTRX C000012112 Class C PCTRX C000012113 Class Z PZTRX C000109121 Class Q PGTQX N-CSRS 1 d539651dncsrs.htm PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC. Prudential Global Total Return Fund, Inc.

 

 

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:    811-04661
Exact name of registrant as specified in charter:    Prudential Global Total Return Fund, Inc.
Address of principal executive offices:    Gateway Center 3,
   100 Mulberry Street,
   Newark, New Jersey 07102
Name and address of agent for service:    Deborah A. Docs
   Gateway Center 3,
   100 Mulberry Street,
   Newark, New Jersey 07102
Registrant’s telephone number, including area code:    800-225-1852
Date of fiscal year end:    10/31/2013
Date of reporting period:    4/30/2013

 

 

 


Item 1 – Reports to Stockholders


LOGO

 

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

 

PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC.

 

SEMIANNUAL REPORT · APRIL 30, 2013

 

Fund Type

Global Bond

 

Objective

Total return, made up of current income and capital appreciation

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

 

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

 

The accompanying financial statements as of April 30, 2013, were not audited, and accordingly, no auditor’s opinion is expressed on them.

 

Prudential Investments, Prudential, the Prudential logo, the Rock symbol, and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.

 

LOGO

 

LOGO

  LOGO


 

 

June 14, 2013

 

Dear Shareholder:

 

We hope you find the semiannual report for the Prudential Global Total Return Fund, Inc. informative and useful. The report covers performance for the six-month period that ended April 30, 2013.

 

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

 

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

 

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

 

Thank you for choosing the Prudential Investments family of funds.

 

Sincerely,

 

LOGO

 

Stuart S. Parker, President

Prudential Global Total Return Fund, Inc.

 

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

 

Prudential Global Total Return Fund, Inc.     1   


Your Fund’s Performance (Unaudited)

 

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The maximum initial sales charge is 4.50% (Class A shares). Gross operating expenses: Class A, 1.26%; Class B, 1.96%; Class C, 1.96%; Class Q, 0.84%; Class Z, 0.96%. Net operating expenses: Class A, 1.21%; Class B, 1.96%; Class C, 1.96%; Class Q, 0.84%; Class Z, 0.96%, after contractual reduction through 2/28/2014 for Class A shares.

 

Cumulative Total Returns (Without Sales Charges) as of 4/30/13

     Six Months     One Year     Five Years     Ten Years     Since Inception

Class A

     2.65     8.89     45.37     90.34  

Class B

     2.41        8.23        40.28        76.82     

Class C

     2.27        8.26        41.56        80.55     

Class Q

     2.83        9.44        N/A         N/A       9.83% (2/3/12)

Class Z

     2.76        9.29        47.23        95.21     

Barclays Global Aggregate Bond Index

     –1.07        1.46        23.69        70.53     

Lipper Global Income Funds Average

     1.95        5.85        29.95        69.67     

Lipper Custom Global Income Funds Average

     2.02        6.15        30.35        77.14     
          

Average Annual Total Returns (With Sales Charges) as of 3/31/13

           One Year     Five Years     Ten Years     Since Inception

Class A

             2.12     5.85     5.94  

Class B

             1.14        5.87        5.64     

Class C

             5.16        6.24        5.88     

Class Q

             7.33        N/A         N/A       5.53% (2/3/12)

Class Z

             7.02        7.07        6.70     

Barclays Global Aggregate Bond Index

             1.26        3.66        5.47     

Lipper Global Income Funds Average

             5.00        4.82        5.35     

Lipper Custom Global Income Funds Average

             5.29        4.81        5.88     

 

Source: Prudential Investments LLC and Lipper Inc.

 

2   Visit our website at www.prudentialfunds.com


 

 

 

Inception returns are provided for any share class with less than 10 calendar years of returns.

 

The average annual total returns take into account applicable sales charges. Class A shares are subject to a maximum front-end sales charge of 4.50% and a 12b-1 fee of 0.30% annually. 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%. The Class A CDSC is waived for purchases by certain retirement or benefit plans. 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. Class B shares are not subject to a front-end sales charge but are subject to a declining CDSC of 5%, 4%, 3%, 2%, 1%, and 1%, respectively, for the first six years after purchase and a 12b-1 fee of 1% annually. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class C shares are not subject to a front-end sales charge, but are subject to a CDSC of 1% for shares sold within 12 months from the date of purchase and an annual 12b-1 fee of 1%. Class Q and Class Z shares are not subject to a front-end sales charge, a CDSC or 12b-1 fees. Without waiver of fees and/or expense subsidization, the Fund’s total returns would have been lower. The returns in the tables reflect the share class expense structure in effect at the close of the fiscal period. 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.

 

Benchmark Definitions

 

Barclays Global Aggregate Bond Index

The Barclays Global Aggregate Bond Index is an unmanaged index of global investment-grade fixed income markets. The three major components of this index are the U.S. Aggregate, the Pan-European Aggregate, and the Asian-Pacific Aggregate Indices. The index also includes Eurodollar and Euro-Yen corporate bonds, Canadian government, agency and corporate securities. Barclays Global Aggregate Bond Index Closest Month-End to Inception cumulative total return as of 4/30/13 is 1.85% for Class Q. Barclays Global Aggregate Bond Index Closest Month-End to Inception average annual total return as of 3/31/13 is 0.39% for Class Q.

 

Lipper Global Income Funds Average

The Lipper Global Income Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper Global Income Funds category for the periods noted. Funds in the Lipper Average invest primarily in U.S. dollar and non-U.S. dollar debt securities of issuers located in at least three countries, one of which may be the United States. Lipper Average Closest Month-End to Inception cumulative total return as of 4/30/13 is 7.00% for Class Q. Lipper Average Closest Month-End to Inception average annual total return as of 3/31/13 is 4.42% for Class Q.

 

Note: The Fund is being compared only to the unhedged funds within the Lipper Global Income Funds Performance Universe, because the Fund’s investment manager believes that the unhedged funds provide a more appropriate basis for Fund performance comparisons.

 

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.

 

Prudential Global Total Return Fund, Inc.     3   


Your Fund’s Performance (continued)

 

 

Five Largest Long-Term Holdings expressed as a percentage of net assets as of 4/30/13

  

Italy Buoni Poliennali del Tesoro, Bonds, 6.500%, 11/01/27

     1.9

Peruvian Government International Bond, Sr. Unsec’d. Notes, RegS, 7.500%, 10/14/14

     1.7   

Spain Government Bond, Sr. Unsub. Notes, 5.850%, 01/31/22

     1.5   

Italy Buoni Poliennali del Tesoro, Bonds, 4.750%, 05/01/17

     1.5   

Russian Foreign Bond - Eurobond, Sr. Unsec’d. Notes, RegS, 7.500%, 03/31/30

     1.5   

Holdings are subject to change.

 

Distributions and Yields as of 4/30/13

     
     Total Distributions
Paid for Six Months
     30-Day
SEC Yield
 

Class A

   $ 0.14         1.83

Class B

     0.11         1.18   

Class C

     0.11         1.19   

Class Q

     0.15         2.29   

Class Z

     0.15         2.16   

 

4   Visit our website at www.prudentialfunds.com


Fees and Expenses (Unaudited)

 

 

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

 

The example is based on an investment of $1,000 invested on November 1, 2012, at the beginning of the period, and held through the six-month period ended April 30, 2013. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

 

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 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.

 

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 below 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 may not

 

Prudential Global Total Return Fund, Inc.     5   


Fees and Expenses (continued)

 

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.

 

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 Global Total
Return Fund, Inc.
  Beginning Account
Value
November 1, 2012
    Ending Account
Value
April 30, 2013
    Annualized
Expense Ratio
Based on the
Six-Month Period
    Expenses Paid
During the
Six-Month Period*
 
         

Class A

 

Actual

  $ 1,000.00      $ 1,026.50        1.21   $ 6.08   
   

Hypothetical

  $ 1,000.00      $ 1,018.79        1.21   $ 6.06   
         

Class B

 

Actual

  $ 1,000.00      $ 1,024.10        1.96   $ 9.84   
   

Hypothetical

  $ 1,000.00      $ 1,015.08        1.96   $ 9.79   
         

Class C

 

Actual

  $ 1,000.00      $ 1,022.70        1.96   $ 9.83   
   

Hypothetical

  $ 1,000.00      $ 1,015.08        1.96   $ 9.79   
         

Class Q

 

Actual

  $ 1,000.00      $ 1,028.30        0.84   $ 4.22   
   

Hypothetical

  $ 1,000.00      $ 1,020.63        0.84   $ 4.21   
         

Class Z

 

Actual

  $ 1,000.00      $ 1,027.60        0.96   $ 4.83   
   

Hypothetical

  $ 1,000.00      $ 1,020.03        0.96   $ 4.81   

*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 181 days in the six-month period ended April 30, 2013, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2013 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.

 

6   Visit our website at www.prudentialfunds.com


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited)

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

LONG-TERM INVESTMENTS    96.5%

  

 

FOREIGN BONDS    64.7%

  

 

Austria    0.7%

        
EUR 500       

Austria Government Bond, Sr. Unsec’d. Notes,
3.200%, 02/20/17

   $ 728,537  
AUD  1,559       

Austria Government International Bond, Notes, MTN, 5.750%, 09/15/14

     1,669,677  
       

 

 

 
          2,398,214  
       

 

 

 

 

Belgium    2.6%

        
EUR 750       

Belgium Government Bond,
Ser. 48,
4.000%, 03/28/22

     1,178,045  
EUR  1,250       

Ser. 59,
2.750%, 03/28/16

     1,763,025  
  1,535       

Belgium Government International Bond, Sr. Unsec’d. Notes,
Ser. E, MTN,
2.750%, 03/05/15

     1,595,540  
  500       

Kingdom of Belgium,
Notes, 144A,
8.875%, 12/01/24

     754,135  
GBP  2,000       

Notes, Ser. E, MTN,
5.000%, 04/24/18

     3,619,492  
       

 

 

 
          8,910,237  
       

 

 

 

 

Bermuda    0.2%

        
  30       

Allied World Assurance Co. Holdings Ltd.,
Gtd. Notes,
5.500%, 11/15/20

     34,488  
  250       

7.500%, 08/01/16

     296,637  
  400       

Axis Capital Holdings Ltd., Sr. Unsec’d. Notes,
5.750%, 12/01/14

     428,612  
  65       

Weatherford International Ltd. Bermuda, Gtd. Notes,
5.125%, 09/15/20

     72,362  
       

 

 

 
          832,099  
       

 

 

 

 

Brazil    2.8%

        
BRL 424       

Brazil Notas do Tesouro Nacional, Notes, Ser. NTNB,
6.000%, 08/15/50

     615,076  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     7   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Brazil (cont’d.)

        
  500       

Brazilian Government International Bond,
Sr. Unsec’d. Notes,
4.875%, 01/22/21

   $ 595,500  
  1,300       

5.625%, 01/07/41

     1,629,550  
EUR 350       

7.375%, 02/03/15

     513,820  
EUR  2,120       

Unsec’d. Notes,
11.000%, 06/26/17

     3,891,108  
BRL  2,850       

Cia Energetica de Sao Paulo, Sr. Unsec’d. Notes, 144A, MTN,
9.750%, 01/15/15

     2,167,691  
       

 

 

 
          9,412,745  
       

 

 

 

 

Bulgaria    0.6%

        
EUR 100       

Bulgaria Government International Bond,
Sr. Unsec’d. Notes,
4.250%, 07/09/17

     145,194  
  1,600       

Sr. Unsec’d. Notes, RegS,
8.250%, 01/15/15

     1,794,400  
       

 

 

 
          1,939,594  
       

 

 

 

 

Canada    0.5%

        
  25       

Agrium, Inc., Sr. Unsec’d. Notes,
6.125%, 01/15/41

     30,476  
CAD 200       

Canadian Government Bond, Unsec’d. Notes,
2.750%, 06/01/22

     218,087  
  77       

Canadian Pacific Railway Co., Sr. Unsec’d. Notes,
6.500%, 05/15/18

     93,274  
CAD 400       

Province of Alberta Canada, Sr. Unsec’d. Notes,
2.550%, 12/15/22

     401,167  
CAD 100       

Province of Ontario Canada, Notes, MTN,
5.500%, 06/02/18

     116,972  
  200       

TransAlta Corp., Sr. Unsec’d. Notes,
6.650%, 05/15/18

     235,625  
  325       

Videotron Ltee, Gtd. Notes,
9.125%, 04/15/18

     342,062  
  250       

Xstrata Finance Canada Ltd., Gtd. Notes, 144A,
2.850%, 11/10/14

     256,112  
       

 

 

 
          1,693,775  
       

 

 

 

 

See Notes to Financial Statements.

 

8   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Cayman Islands    0.9%

        
  250       

Hutchison Whampoa International (09) Ltd.,
Gtd. Notes, RegS,
7.625%, 04/09/19

   $ 321,385  
  300       

IPIC GMTN Ltd., Gtd. Notes, 144A, MTN,
5.500%, 03/01/22

     354,750  
  120       

MUFG Capital Finance 1 Ltd., Gtd. Notes,
6.346%, 07/25/49(a)

     132,712  
  900       

Petrobras International Finance Co. - PifCo., Gtd. Notes,
5.375%, 01/27/21

     993,840  
  245       

Schahin II Finance Co. SPV Ltd., Sr. Sec’d. Notes, 144A,
5.875%, 09/25/22

     257,232  
  300       

Seagate HDD Cayman, Gtd. Notes,
6.875%, 05/01/20

     325,875  
  475       

UPCB Finance III Ltd., Sr. Sec’d. Notes, 144A,
6.625%, 07/01/20

     516,563  
       

 

 

 
          2,902,357  
       

 

 

 

 

Chile    0.1%

        
  260       

Empresa Nacional de Electricidad SA, Sr. Unsec’d. Notes,
8.350%, 08/01/13

     263,982  

 

China    1.9%

        
    

China Government Bond,
Sr. Unsec’d. Notes,

  
CNY  1,000       

1.800%, 12/01/15

     161,545  
CNY 15,000       

2.380%, 07/19/14

     2,451,015  
    

Sr. Unsec’d. Notes, RegS,

  
CNY 12,000       

1.850%, 06/29/15

     1,941,689  
    

Unsec’d. Notes,

  
CNY 2,970       

3.300%, 10/27/14

     491,602  
    

China Government International Bond,
Sr. Unsec’d. Notes,

  
EUR 280       

4.250%, 10/28/14

     388,787  
  989       

4.750%, 10/29/13

     1,008,018  
       

 

 

 
          6,442,656  
       

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     9   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Colombia    0.4%

        
    

Colombia Government International Bond,
Sr. Unsec’d. Notes,

  
  715       

11.750%, 02/25/20

   $ 1,138,280  
COP  500,000       

12.000%, 10/22/15

     327,519  
       

 

 

 
          1,465,799  
       

 

 

 

 

Costa Rica    0.1%

        
    

Costa Rica Government International Bond,
Unsec’d. Notes, 144A,

  
  500       

4.375%, 04/30/25

     503,500  

 

Croatia    0.4%

        
    

Croatia Government International Bond, Sr. Unsec’d. Notes,

  
EUR 1,050       

6.500%, 01/05/15

     1,483,728  

 

Czech Republic    2.4%

        
    

Czech Republic Government Bond, Ser. 51,

  
CZK 35,000       

4.000%, 04/11/17

     2,018,129  
    

Czech Republic International,
Sr. Unsec’d. Notes,

  
CHF 600       

2.875%, 11/23/16

     698,860  
    

Sr. Unsec’d. Notes, Ser. E, MTN,

  
EUR 284       

3.625%, 04/14/21

     427,311  
EUR 3,500       

4.500%, 11/05/14

     4,887,638  
       

 

 

 
          8,031,938  
       

 

 

 

 

Denmark    0.2%

        
SEK 5,000       

Denmark Government International Bond,
Sr. Unsec’d. Notes, Ser. E, MTN,
3.165%, 03/31/14

     785,305  

 

Finland    0.4%

        
EUR 300       

Finland Government Bond, Sr. Unsec’d. Notes,
3.500%, 04/15/21

     466,358  
SEK 5,000       

Finland Government International Bond, Sr. Unsec’d. Notes, Ser. E, MTN,
2.250%, 01/18/17

     793,452  
       

 

 

 
          1,259,810  
       

 

 

 

 

See Notes to Financial Statements.

 

10   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

France    1.2%

        
EUR 2,900       

French Treasury Note BTAN, Bonds,
2.500%, 07/25/16(b)

   $ 4,083,060  

 

Germany    0.6%

        
EUR 200       

RWE AG, Jr. Sub. Notes,
4.625%, 09/28/49(a)

     274,189  
EUR 275       

Techem Energy Metering Service GmbH & Co. KG, Gtd. Notes, 144A, MTN,
7.875%, 10/01/20

     392,945  
EUR 500       

Techem GmbH, Sr. Sec’d. Notes, 144A, MTN,
6.125%, 10/01/19

     716,421  
EUR 450       

Unitymedia Hessen GmbH & Co. KG/Unitymedia NRW GmbH,
Sr. Sec’d. Notes, 144A,
5.500%, 09/15/22

     602,999  
       

 

 

 
          1,986,554  
       

 

 

 

 

Greece    1.7%

        
    

Hellenic Republic Government Bond,
Sr. Unsec’d. Notes, Ser. PSI,

  
EUR 5,050       

2.000%, 02/24/23(c)

     3,539,516  
EUR 510       

2.000%, 02/24/42(c)

     284,173  
    

Hellenic Republic Government International Bond,
Sr. Unsec’d. Notes,

  
  300       

4.625%, 06/25/13

     288,000  
    

Sr. Unsec’d. Notes, Ser. 9BR,

  
JPY  150,000       

5.800%, 07/14/15

     1,261,733  
    

Unsec’d. Notes,

  
CHF 300       

2.125%, 07/05/13

     309,905  
       

 

 

 
          5,683,327  
       

 

 

 

 

Hong Kong    0.1%

        
  200       

Hong Kong SAR Government Bond, Unsec’d. Notes, RegS,
5.125%, 08/01/14

     210,659  

 

Hungary    2.6%

        
    

Hungary Government International Bond,
Sr. Unsec’d. Notes,

  
EUR 1,000       

4.375%, 07/04/17

     1,330,120  
GBP 325       

5.500%, 05/06/14

     509,039  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     11   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Hungary (cont’d.)

        
    

Sr. Unsec’d. Notes, RegS,

  
EUR 500       

5.750%, 06/11/18

   $ 702,303  
EUR 2,500       

6.000%, 01/11/19

     3,539,996  
    

Sr. Unsec’d. Notes, Ser. E, MTN,

  
CHF 500       

4.000%, 05/20/16

     527,801  
    

Sr. Unsec’d. Notes, Ser. E, MTN, RegS,

  
EUR 1,500       

6.750%, 07/28/14

     2,077,753  
       

 

 

 
          8,687,012  
       

 

 

 

 

Iceland    0.3%

        
  1,000       

Iceland Government International Bond,
Unsec’d. Notes, RegS,
4.875%, 06/16/16

     1,065,000  

 

India    0.3%

        
EUR 700       

State Bank of India, Sr. Unsec’d. Notes, MTN, RegS,
4.500%, 11/30/15

     972,280  

 

Indonesia    0.8%

        
  200       

Indonesia Government International Bond,
Sr. Unsec’d. Notes, 144A,
4.625%, 04/15/43

     206,500  
  2,200       

Perusahaan Penerbit SBSN Indonesia,
Sr. Unsec’d. Notes, RegS,
4.000%, 11/21/18

     2,321,000  
  130       

PT Adaro Indonesia Tbk, Gtd. Notes, RegS,
7.625%, 10/22/19

     141,856  
       

 

 

 
          2,669,356  
       

 

 

 

 

Ireland    2.2%

        
    

Ireland Government Bond,
Sr. Unsub. Notes,

  
EUR 2,630       

4.400%, 06/18/19

     3,749,471  
    

Unsec’d. Notes,

  
EUR  1,200       

4.500%, 04/18/20

     1,713,500  
EUR 400       

Nara Cable Funding Ltd., Sr. Sec’d. Notes, RegS,
8.875%, 12/01/18

     566,289  

 

See Notes to Financial Statements.

 

12   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Ireland (cont’d.)

        
  450       

Raspadskaya OJSC Via Raspadskaya Securities Ltd.,
Sr. Sec’d. Notes, 144A,
7.750%, 04/27/17

   $ 477,562  
  200       

Rosneft Oil Co. via Rosneft International Finance Ltd.,
Sr. Unsec’d. Notes, 144A,
3.149%, 03/06/17

     201,990  
  300       

Sibur Securities Ltd., Gtd. Notes, 144A,
3.914%, 01/31/18

     294,825  
  295       

Vimpel Communications Via VIP Finance Ireland Ltd. OJSC,
Sr. Unsec’d. Notes, 144A,
7.748%, 02/02/21

     337,406  
  100       

Willis Group Holdings PLC, Gtd. Notes,
4.125%, 03/15/16

     106,010  
       

 

 

 
          7,447,053  
       

 

 

 

 

Israel    1.2%

        
ILS 500       

Israel Government Bond, Ser. 0115,
4.500%, 01/30/15

     146,252  
    

Israel Government International Bond,

  
    

Sr. Unsec’d. Notes,

  
  1,000       

4.500%, 01/30/43

     1,003,750  
  800       

5.125%, 03/26/19

     942,000  
    

Sr. Unsec’d. Notes, MTN,

  
EUR 350       

4.625%, 03/18/20

     538,139  
    

Sr. Unsec’d. Notes, Ser. E, MTN,

  
EUR 1,000       

3.750%, 10/12/15

     1,403,869  
       

 

 

 
          4,034,010  
       

 

 

 

 

Italy    5.2%

        
    

Italy Buoni Poliennali del Tesoro,
Bonds,

  
EUR 3,670       

4.750%, 05/01/17

     5,239,730  
EUR 3,865       

6.500%, 11/01/27

     6,271,589  
    

Bonds, 144A

  
EUR 600       

6.000%, 05/01/31

     934,060  
    

Italy Government International Bond,

  
    

Sr. Unsec’d. Notes,

  
JPY 92,000       

3.700%, 11/14/16

     973,159  
  403       

4.375%, 06/15/13

     404,612  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     13   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Italy (cont’d.)

        
JPY 144,000       

4.500%, 06/08/15

   $ 1,544,944  
JPY 62,000       

5.500%, 12/15/14

     668,961  
    

Sr. Unsec’d. Notes, RegS,

  
JPY 125,000       

3.450%, 03/24/17

     1,289,865  
    

Sr. Unsec’d. Notes, Ser. E, MTN,

  
CHF 100       

2.500%, 03/02/15

     109,120  
    

Sr. Unsec’d. Notes, Ser. E, MTN, RegS,

  
EUR 201       

5.750%, 07/25/16

     292,501  
       

 

 

 
          17,728,541  
       

 

 

 

 

Japan    0.9%

        
    

Japan Government Twenty Year Bond,

  
    

Sr. Unsec’d. Notes,
Ser. 108,

  
JPY 164,000       

1.900%, 12/20/28

     1,867,295  
    

Ser. 132,

  
JPY 50,000       

1.700%, 12/20/31

     540,014  
  800       

Nomura Holdings, Inc., Sr. Unsec’d. Notes, MTN,
2.000%, 09/13/16

     804,198  
       

 

 

 
          3,211,507  
       

 

 

 

 

Kazakhstan    0.1%

        
  325       

KazMunayGas National Co. JSC,
Sr. Unsec’d. Notes, 144A,
5.750%, 04/30/43

     327,587  
  100       

Sr. Unsec’d. Notes, 144A, MTN,
11.750%, 01/23/15

     115,750  
       

 

 

 
          443,337  
       

 

 

 

 

Latvia    0.3%

        
  1,000       

Republic of Latvia, Sr. Unsec’d. Notes, RegS,
5.250%, 02/22/17

     1,120,000  

 

Lithuania    0.4%

        
EUR  1,000       

Lithuania Government International Bond,
Sr. Unsec’d. Notes,
3.750%, 02/10/16

     1,399,260  

 

See Notes to Financial Statements.

 

14   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Luxembourg    1.4%

        
EUR 500       

Gazprom OAO Via GAZ Capital SA,
Sr. Unsec’d. Notes,
8.125%, 02/04/15

   $ 734,463  
  1,000       

Sr. Unsec’d. Notes, RegS,
5.092%, 11/29/15

     1,074,660  
EUR 500       

Luxembourg Government Bond, Sr. Unsec’d. Notes,
3.375%, 05/18/20

     762,277  
  200       

Minerva Luxembourg SA, Gtd. Notes, 144A,
12.250%, 02/10/22

     247,000  
  750       

Pentair Finance SA, Gtd. Notes,
2.650%, 12/01/19

     757,636  
  175       

TNK-BP Finance SA, Gtd. Notes, 144A, MTN,
6.625%, 03/20/17

     199,500  
  315       

VTB Bank OJSC Via VTB Capital SA,
Sr. Unsec’d. Notes, 144A,
6.875%, 05/29/18

     353,272  
EUR 150       

Wind Acquisition Finance SA, Sec’d. Notes, 144A,
11.750%, 07/15/17

     211,371  
  100       

11.750%, 07/15/17

     107,250  
EUR 300       

Sec’d. Notes, RegS,
11.750%, 07/15/17

     422,741  
       

 

 

 
          4,870,170  
       

 

 

 

 

Malaysia    0.6%

        
  825       

1Malaysia Sukuk Global Bhd, Sr. Unsec’d. Notes, RegS,
3.928%, 06/04/15

     871,031  
MYR 3,500       

Malaysia Government Bond, Unsec’d. Notes, Ser. 0211,
3.434%, 08/15/14

     1,157,934  
       

 

 

 
          2,028,965  
       

 

 

 

 

Mexico    3.2%

        
MXN 8,000       

Mexican Bonos, Bonds, Ser. M 10,
8.000%, 12/17/15

     723,733  
EUR  2,075       

Mexico Government International Bond,
Sr. Unsec’d. Notes,
2.750%, 04/22/23

     2,796,890  
  526       

Sr. Unsec’d. Notes, MTN,
5.625%, 01/15/17

     606,478  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     15   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Mexico (cont’d.)

        
EUR 2,954       

Sr. Unsec’d. Notes, Ser. G, MTN,
4.250%, 07/14/17

   $ 4,341,543  
GBP 825       

6.750%, 02/06/24

     1,633,462  
ITL 250,000       

11.000%, 05/08/17

     233,546  
  300       

Petroleos Mexicanos,
Gtd. Notes,
4.875%, 01/24/22

     341,250  
  170       

Gtd. Notes, 144A,
3.500%, 01/30/23

     172,975  
       

 

 

 
          10,849,877  
       

 

 

 

 

Netherlands    0.4%

        
  200       

Bharti Airtel International Netherlands BV, Gtd. Notes, 144A,
5.125%, 03/11/23

     205,520  
EUR 155       

Hertz Holdings Netherlands BV, Sr. Sec’d. Notes, RegS,
8.500%, 07/31/15

     215,354  
  200       

Indo Integrated Energy II BV, Sr. Sec’d. Notes, RegS,
9.750%, 11/05/16

     214,000  
  130       

LUKOIL International Finance BV, Gtd. Notes, 144A,
7.250%, 11/05/19

     157,300  
EUR 131       

NXP BV/NXP Funding LLC, Sr. Sec’d. Notes, Ser. EXCH,
2.961%, 10/15/13(a)

     171,950  
EUR 300       

Wolters Kluwer NV, Sr. Unsec’d. Notes,
6.375%, 04/10/18

     484,766  
       

 

 

 
          1,448,890  
       

 

 

 

 

New Zealand    0.1%

        
NZD 200       

New Zealand Government Bond,
Sr. Unsec’d. Notes, Ser. 415,
6.000%, 04/15/15

     182,896  

 

Panama    1.0%

        
  500       

Panama Government International Bond, Sr. Unsec’d. Notes,
4.300%, 04/29/53

     501,250  
  1,700       

6.700%, 01/26/36

     2,365,550  
  275       

10.750%, 05/15/20

     398,750  
       

 

 

 
          3,265,550  
       

 

 

 

 

See Notes to Financial Statements.

 

16   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Peru    2.7%

        
  500       

Peruvian Government International Bond,
Sr. Unsec’d. Notes,
7.350%, 07/21/25

   $ 726,250  
EUR 4,003       

Sr. Unsec’d. Notes, RegS,
7.500%, 10/14/14

     5,786,223  
PEN 5,800       

9.910%, 05/05/15

     2,530,670  
       

 

 

 
          9,043,143  
       

 

 

 

 

Philippines    1.8%

        
PHP 60,000       

Philippine Government International Bond,
Sr. Unsec’d. Notes,
3.900%, 11/26/22

     1,559,767  
EUR 2,881       

6.250%, 03/15/16

     4,270,526  
  250       

6.500%, 01/20/20

     316,562  
       

 

 

 
          6,146,855  
       

 

 

 

 

Poland    2.4%

        
PLN 1,500       

Poland Government Bond, Ser. 1016,
4.750%, 10/25/16

     505,230  
JPY  200,000       

Poland Government International Bond,
Sr. Unsec’d. Notes, Ser. 9,
2.340%, 11/13/14

     2,099,256  
CHF 500       

Sr. Unsec’d. Notes, Ser. E, MTN,
2.125%, 03/31/14

     546,300  
CHF 3,000       

2.625%, 05/12/15

     3,362,982  
EUR 500       

3.625%, 02/01/16

     709,020  
EUR 500       

5.250%, 01/20/25

     820,427  
       

 

 

 
          8,043,215  
       

 

 

 

 

Portugal    1.8%

        
  270       

Portugal Government International Bond,
Sr. Unsec’d. Notes, MTN, RegS,
3.500%, 03/25/15

     267,300  
EUR 1,100       

Portugal Obrigacoes do Tesouro OT,
Sr. Unsec’d. Notes,
3.850%, 04/15/21

     1,302,043  
EUR 1,445       

4.100%, 04/15/37

     1,432,954  
EUR 2,010       

4.750%, 06/14/19

     2,598,629  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     17   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Portugal (cont’d.)

        
EUR 350       

Sr. Unsec’d. Notes, RegS,
4.950%, 10/25/23

   $ 433,747  
       

 

 

 
          6,034,673  
       

 

 

 

 

Romania    1.1%

        
RON 1,000       

Romania Government Bond,
Unsec’d. Notes, Ser. 2YR,
5.850%, 07/28/14

     307,875  
EUR 1,307       

Romanian Government International Bond,
Sr. Unsec’d. Notes, RegS,
5.000%, 03/18/15

     1,810,931  
EUR 1,000       

6.500%, 06/18/18

     1,512,913  
       

 

 

 
          3,631,719  
       

 

 

 

 

Russia    1.5%

        
  4,098       

Russian Foreign Bond - Eurobond,
Sr. Unsec’d. Notes, RegS,
7.500%, 03/31/30

     5,154,655  

 

Serbia    0.2%

        
  750       

Republic of Serbia, Bonds, 144A,
4.875%, 02/25/20

     772,500  

 

Singapore    0.2%

        
  400       

Berau Capital Resources Pte Ltd.,
Sr. Sec’d. Notes, RegS,
12.500%, 07/08/15

     426,000  
SGD 325       

Singapore Government Bond,
Sr. Unsec’d. Notes,
1.375%, 10/01/14

     268,264  
       

 

 

 
          694,264  
       

 

 

 

 

Slovak Republic    0.3%

        
  1,000       

Slovakia Government International Bond,
Sr. Unsec’d. Notes, RegS,
4.375%, 05/21/22

     1,096,460  

 

See Notes to Financial Statements.

 

18   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

South Africa    2.2%

        
ZAR 6,745       

South Africa Government Bond,
Ser. R213,
7.000%, 02/28/31

   $ 729,191  
ZAR  31,555       

Ser. R214,
6.500%, 02/28/41

     3,057,886  
EUR 554       

South Africa Government International Bond,
5.250%, 05/16/13

     730,320  
EUR 2,047       

Unsec’d. Notes, Ser. E, MTN,
4.500%, 04/05/16

     2,939,767  
       

 

 

 
          7,457,164  
       

 

 

 

 

South Korea    0.5%

        
  270       

Korea Hydro & Nuclear Power Co. Ltd.,
Sr. Unsec’d. Notes, 144A,
4.750%, 07/13/21

     304,613  
EUR 880       

Republic of Korea, Sr. Unsec’d. Notes,
3.625%, 11/02/15

     1,231,697  
       

 

 

 
          1,536,310  
       

 

 

 

 

Spain    5.2%

        
EUR 600       

Autonomous Community of Andalusia Spain,
Sr. Unsec’d. Notes,
5.125%, 07/08/13

     791,419  
CHF 600       

Autonomous Community of Madrid Spain,
Sr. Unsec’d. Notes,
3.000%, 11/05/13

     643,299  
EUR 500       

4.051%, 06/12/13

     659,134  
EUR 950       

Spain Government Bond,
3.000%, 04/30/15

     1,281,255  
EUR 2,900       

Sr. Unsec’d. Notes,
3.250%, 04/30/16

     3,925,711  
EUR 1,850       

3.400%, 04/30/14

     2,490,689  
EUR 100       

4.250%, 10/31/16

     139,054  
EUR 1,120       

Sr. Unsub. Notes,
4.700%, 07/30/41

     1,463,450  
EUR 3,505       

5.850%, 01/31/22

     5,245,891  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     19   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Spain (cont’d.)

        
  500       

Spain Government International Bond,
Notes, 144A,
4.000%, 03/06/18

   $ 511,000  
  480       

Sr. Unsec’d. Notes, Ser. E, MTN,
3.625%, 06/17/13

     481,106  
       

 

 

 
          17,632,008  
       

 

 

 

 

Supranational    0.7%

        
NOK 5,000       

European Investment Bank,
Sr. Unsec’d. Notes, Ser. E, MTN,
4.250%, 05/19/17

     935,455  
SEK 9,000       

4.500%, 08/12/17

     1,547,416  
       

 

 

 
          2,482,871  
       

 

 

 

 

Sweden    0.4%

        
  1,250       

Nordea Bank AB, Sr. Unsec’d. Notes, 144A,
3.125%, 03/20/17

     1,334,625  

 

Thailand    0.4%

        
  600       

Bangkok Bank PCL, Sr. Unsec’d. Notes, 144A,
3.875%, 09/27/22

     621,528  
THB 21,000       

Thailand Government Bond, Sr. Unsec’d. Notes,
3.650%, 12/17/21

     732,092  
       

 

 

 
          1,353,620  
       

 

 

 

 

Turkey    2.6%

        
  200       

Export Credit Bank of Turkey, Sr. Unsec’d. Notes, 144A,
5.375%, 11/04/16

     217,000  
TRY 7,000       

Turkey Government Bond, Ser. 5Y,
6.300%, 02/14/18

     3,978,804  
EUR 1,148       

Turkey Government International Bond,
Sr. Unsec’d. Notes,
5.500%, 02/16/17

     1,694,341  
EUR 247       

5.875%, 04/02/19

     382,830  
EUR 1,439       

6.500%, 02/10/14

     1,972,411  
  450       

Unsec’d. Notes,
4.875%, 04/16/43

     462,375  
       

 

 

 
          8,707,761  
       

 

 

 

 

See Notes to Financial Statements.

 

20   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

United Arab Emirates    0.2%

        
  268       

Dolphin Energy Ltd., Sr. Sec’d. Notes, 144A,
5.888%, 06/15/19

   $ 304,732  
  200       

Dubai Electricity & Water Authority,
Sr. Unsec’d. Notes, 144A,
8.500%, 04/22/15

     224,500  
       

 

 

 
          529,232  
       

 

 

 

 

United Kingdom    1.4%

        
  450       

Barclays Bank PLC, Sr. Unsec’d. Notes,
6.750%, 05/22/19

     563,463  
  125       

BP Capital Markets PLC, Gtd. Notes,
4.500%, 10/01/20

     144,884  
  150       

HSBC Holdings PLC,
Sr. Unsec’d. Notes,
4.875%, 01/14/22

     175,450  
  85       

5.100%, 04/05/21

     100,826  
  125       

Sub. Notes,
6.500%, 09/15/37

     158,240  
  525       

6.800%, 06/01/38

     694,659  
EUR 200       

Imperial Tobacco Finance PLC, Gtd. Notes, Ser. E, MTN,
8.375%, 02/17/16

     315,267  
  575       

Lloyds TSB Bank PLC,
Gtd. Notes,
4.200%, 03/28/17

     636,031  
  500       

6.375%, 01/21/21

     626,210  
  245       

Gtd. Notes, 144A, MTN,
5.800%, 01/13/20

     293,291  
  150       

Royal Bank of Scotland Group PLC, Sr. Unsec’d. Notes, MTN,
6.400%, 10/21/19

     180,674  
  325       

Royal Bank of Scotland PLC (The), Gtd. Notes,
6.125%, 01/11/21

     396,381  
  400       

Sasol Financing International PLC, Gtd. Notes,
4.500%, 11/14/22

     410,600  
       

 

 

 
          4,695,976  
       

 

 

 

 

Uruguay    0.3%

        
  700       

Uruguay Government International Bond,
Sr. Unsec’d. Notes,
4.125%, 11/20/45

     681,100  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     21   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

FOREIGN BONDS (Continued)

  

 

Uruguay (cont’d.)

        
EUR 103       

6.875%, 01/19/16

   $ 154,297  
EUR 119       

7.000%, 06/28/19

     193,154  
       

 

 

 
          1,028,551  
       

 

 

 
    

Total foreign bonds

     219,088,645  
       

 

 

 

 

ASSET-BACKED SECURITIES    7.6%

  

 

Collateralized Loan Obligations, Debt Obligations and Other Asset Backed Securities    1.8%

  

  366       

AIMCO CDO (Cayman Islands),
Ser. 2005-AA, Class A1B, 144A,
0.526%, 10/20/19(a)

     358,425  
  500       

Apidos CDO (Cayman Islands),
Ser. 2011-8A, Class A1, 144A,
1.778%, 10/17/21(a)

     500,741  
  500       

ARES CLO Ltd. (Cayman Islands),
Ser. 2011-16A, Class A, 144A,
1.890%, 05/17/21(a)

     500,075  
  177       

ARES Enhanced Loan Investment Strategy Ltd.
(Cayman Islands),
Ser. 2006-2A, Class A2, 144A,
0.536%, 01/26/20(a)

     173,830  
EUR 766       

Avoca CLO I BV (Ireland),
Ser. II-A, Class A1, 144A,
0.671%, 01/15/20(a)

     994,634  
  261       

BlackRock Senior Income Series Corp. (Cayman Islands),
Ser. 2005-2A, Class A1, 144A,
0.538%, 05/25/17(a)

     260,145  
  427       

Four Corners CLO (Cayman Islands),
Ser. 2006-3A, Class A, 144A,
0.526%, 07/22/20(a)

     423,447  
EUR 500       

Highlander Euro CDO Cayman Ltd. (Netherlands),
Ser. 2008-4A, Class C, 144A,
4.817%, 08/01/16(a)

     622,045  
  304       

Katonah Ltd. (Cayman Islands),
Ser. 2005-7A, Class A2, 144A,
0.550%, 11/15/17(a)

     302,652  
  262       

LightPoint CLO Ltd. (Cayman Islands),
Ser. 2005-3A, Class A1A, 144A,
0.540%, 09/15/17(a)

     259,136  

 

See Notes to Financial Statements.

 

22   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

ASSET-BACKED SECURITIES (Continued)

  

 

Collateralized Loan Obligations, Debt Obligations and Other Asset Backed Securities (cont’d.)

  

EUR 223       

LightPoint Pan-European CLO PLC (Ireland),
Ser. 2006-1A, Class A, 144A,
0.457%, 01/31/22(a)

   $ 286,869  
  248       

Mountain Capital CLO Ltd. (Cayman Islands),
Ser. 2005-4A, Class A1L, 144A,
0.530%, 03/15/18(a)

     246,469  
EUR  256       

North Westerly CLO BV (Netherlands),
Ser. II-A, Class A, 144A,
0.706%, 09/14/19(a)

     327,280  
  97       

Rosedale CLO Ltd. (Cayman Islands),
Ser. 2006-A, Class A1S, 144A,
0.525%, 07/24/21(a)

     95,672  
  250       

Shackleton CLO Ltd. (Cayman Islands),
Ser. 2013-3A, Class B2, 144A,
3.440%, 04/15/25

     250,218  
  250       

Slater Mill Loan Fund LP (Cayman Islands),
Ser. 2012-1A, Class B, 144A,
2.940%, 08/17/22(a)

     251,497  
  374       

Trimaran CLO Ltd. (Cayman Islands),
Ser. 2006-2A, Class A1L, 144A,
0.549%, 11/01/18(a)

     370,811  
       

 

 

 
          6,223,946  
       

 

 

 

 

Residential Mortgage-Backed Securities    5.8%

        
  301       

ACE Securities Corp.,
Ser. 2004-FM1, Class M1,
1.100%, 09/25/33(a)

     281,998  
  1,000       

Ser. 2005-HE2, Class M4,
1.160%, 04/25/35(a)

     891,911  
  449       

Aegis Asset Backed Securities Trust,
Ser. 2004-2, Class A5,
1.100%, 06/25/34(a)

     443,756  
  789       

Ameriquest Mortgage Securities, Inc.,
Ser. 2002-3, Class M3,
3.050%, 08/25/32(a)

     746,117  
  400       

Ser. 2004-R8, Class M1,
1.160%, 09/25/34(a)

     388,815  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     23   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

ASSET-BACKED SECURITIES (Continued)

  

 

Residential Mortgage-Backed Securities (cont’d.)

        
  281       

Argent Securities, Inc.,
Ser. 2004-W6, Class M1,
0.750%, 05/25/34(a)

   $ 275,348  
  1,452       

Ser. 2005-W2, Class A2C,
0.560%, 10/25/35(a)

     1,295,354  
  1,383       

Asset Backed Securities Corp. Home Equity Loan Trust,
Ser. 2004-HE1, Class M1,
1.249%, 01/15/34(a)

     1,336,887  
  354       

Bear Stearns Asset Backed Securities Trust,
Ser. 2004-HE2, Class M1,
1.100%, 03/25/34(a)

     325,415  
  247       

Ser. 2004-HE3, Class M2,
1.925%, 04/25/34(a)

     229,265  
  214       

Chase Funding Loan Acquisition Trust,
Ser. 2004-AQ1, Class A2,
0.600%, 05/25/34(a)

     213,476  
  679       

Citicorp Residential Mortgage Trust,
Ser. 2006-2, Class A4,
5.775%, 09/25/36

     690,241  
  100       

Citigroup Mortgage Loan Trust, Inc.,
Ser. 2004-OPT1, Class A2,
0.920%, 10/25/34(a)

     100,068  
  198       

Countrywide Asset-Backed Certificates,
Ser. 2002-5, Class MV1,
1.700%, 03/25/33(a)

     193,260  
  982       

Finance America Mortgage Loan Trust,
Ser. 2004-2, Class M1,
1.025%, 08/25/34(a)

     912,520  
  421       

Fremont Home Loan Trust,
Ser. 2004-1, Class M1,
0.875%, 02/25/34(a)

     379,092  
  910       

Ser. 2004-B, Class M1,
1.070%, 05/25/34(a)

     829,347  
  239       

GSAMP Trust,
Ser. 2004-FM1, Class M1,
1.175%, 11/25/33(a)

     234,646  
  1,000       

Ser. 2005-HE5, Class M1,
0.620%, 11/25/35(a)

     949,698  

 

See Notes to Financial Statements.

 

24   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

ASSET-BACKED SECURITIES (Continued)

  

 

Residential Mortgage-Backed Securities (cont’d.)

        
  616       

Home Equity Asset Trust,
Ser. 2004-3, Class M1,
1.055%, 08/25/34(a)

   $ 569,291  
  1,000       

Ser. 2005-9, Class 2A4,
0.540%, 04/25/36(a)

     936,929  
  400       

HSBC Home Equity Loan Trust,
Ser. 2007-2, Class A4,
0.499%, 07/20/36(a)

     374,915  
  600       

Long Beach Mortgage Loan Trust,
Ser. 2004-3, Class M1,
1.055%, 07/25/34(a)

     570,085  
  375       

Mastr Asset Backed Securities Trust,
Ser. 2004-OPT2, Class A1,
0.900%, 09/25/34(a)

     350,987  
  261       

Merrill Lynch Mortgage Investors, Inc.,
Ser. 2004-HE2, Class M1,
1.000%, 08/25/35(a)

     230,423  
  340       

Morgan Stanley ABS Capital I,
Ser. 2003-NC8, Class M1,
1.250%, 09/25/33(a)

     323,998  
  409       

Ser. 2004-NC1, Class M1,
1.250%, 12/25/33(a)

     398,180  
  437       

Ser. 2004-OP1, Class M1,
1.070%, 11/25/34(a)

     403,733  
  654       

Ser. 2004-WMC1, Class M1,
1.130%, 06/25/34(a)

     636,062  
  254       

Ser. 2004-WMC2, Class M1,
1.115%, 07/25/34(a)

     244,853  
  383       

Morgan Stanley Dean Witter Capital I,
Ser. 2002-AM3, Class A3,
1.180%, 02/25/33(a)

     366,406  
  418       

New Century Home Equity Loan Trust,
Ser. 2003-4, Class M1,
1.325%, 10/25/33(a)

     408,299  
  907       

Ser. 2005-C, Class A2C,
0.450%, 12/25/35(a)

     836,908  
  356       

Option One Mortgage Loan Trust,
Ser. 2003-6, Class A2,
0.860%, 11/25/33(a)

     332,601  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     25   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

ASSET-BACKED SECURITIES (Continued)

  

 

Residential Mortgage-Backed Securities (cont’d.)

        
  230       

Popular ABS Mortgage Pass-Through Trust,
Ser. 2004-4, Class M1,
5.100%, 09/25/34(a)

   $ 216,097  
  106       

Structured Asset Investment Loan Trust,
Ser. 2004-2, Class A4,
0.905%, 03/25/34(a)

     100,779  
  376       

Ser. 2004-8, Class A8,
1.200%, 09/25/34(a)

     373,250  
  530       

Structured Asset Securities Corp. Mortgage Loan Trust,
Ser. 2005-NC2, Class M3,
0.630%, 05/25/35(a)

     492,604  
  690       

Wells Fargo Mortgage Backed Securities Trust,
Ser. 2007-5, Class 1A1,
5.500%, 05/25/37

     735,687  
       

 

 

 
          19,619,301  
       

 

 

 
    

Total asset-backed securities

     25,843,247  
       

 

 

 

 

BANK LOANS(a)    2.0%

  

 

Aerospace & Defense

        
  97       

Booz Allen & Hamilton, Inc.,
2.700%, 12/31/17

     97,683  

 

Automotive    0.1%

        
  197       

Chrysler LLC,
6.000%, 05/24/17

     199,283  

 

Cable    0.2%

        
  478       

Cequel Communications Holdings LLC,
3.500%, 02/14/19

     479,828  
  54       

Kabel Deutschland Vertrieb und Service GmbH (Germany),
3.250%, 02/01/19

     53,761  
       

 

 

 
          533,589  
       

 

 

 

 

Chemicals

        
  174       

Rockwood Holdings, Inc.,
3.750%, 02/09/18

     174,890  

 

See Notes to Financial Statements.

 

26   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

BANK LOANS(a) (Continued)

  

 

Electric

        
  87       

Calpine Corp.,
4.000%, 04/01/18

   $ 88,294  
  87       

4.000%, 04/01/18

     88,293  
       

 

 

 
          176,587  
       

 

 

 

 

Foods

        
  143       

Del Monte Foods Co.,
4.000%, 03/08/18

     144,411  

 

Gaming    0.1%

        
  129       

CCM Merger, Inc.,
6.000%, 03/01/17

     130,410  
  247       

Scientific Games Corp.,
3.200%, 06/30/15

     247,404  
       

 

 

 
          377,814  
       

 

 

 

 

Healthcare & Pharmaceutical    0.8%

        
  103       

Alere, Inc.,
3.284%, 06/30/16

     102,646  
  37       

3.533%, 06/30/17

     37,183  
  100       

3.534%, 06/30/17

     101,141  
  466       

Community Health Systems, Inc.,
3.787%, 01/25/17

     470,250  
  222       

DaVita, Inc.,
4.000%, 11/01/19

     224,605  
  56       

HCA, Inc.,
3.450%, 02/02/16

     55,821  
  134       

3.530%, 03/31/17

     133,756  
  472       

Hologic, Inc.,
2.200%, 08/01/17

     472,491  
  441       

RPI Finance Trust,
3.500%, 05/09/18

     444,182  
  151       

4.000%, 11/09/18

     151,934  
  370       

Universal Health Services, Inc.,
2.034%, 08/15/16

     370,775  
       

 

 

 
          2,564,784  
       

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     27   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

BANK LOANS(a) (Continued)

  

 

Pipelines & Other

        
  101       

Energy Transfer Equity LP,
3.750%, 03/24/17

   $ 101,630  

 

Retailers    0.2%

        
GBP 400       

Alliance Boots Ltd. (United Kingdom),
3.993%, 07/09/17

     613,573  

 

Technology    0.5%

        
  18       

First Data Corp.,
4.200%, 03/24/17

     18,032  
  237       

4.200%, 03/26/18

     236,173  
  300       

4.278%, 09/24/18

     299,250  
  34       

Flextronics International Ltd. (Singapore),
2.450%, 10/01/14

     33,972  
  300       

Freescale Semiconductor, Inc.,
5.000%, 02/28/20

     303,375  
  424       

NXP BV (Netherlands),
3.778%, 01/11/20

     433,829  
  138       

Sensata Technologies BV (Netherlands),
3.750%, 05/12/18

     139,903  
  122       

SunGard Data Systems, Inc.,
4.000%, 03/06/20

     123,030  
       

 

 

 
          1,587,564  
       

 

 

 

 

Telecommunications    0.1%

        
  288       

Fibertech Networks LLC,
4.500%, 12/18/19

     292,353  
       

 

 

 
    

Total bank loans

     6,864,161  
       

 

 

 

 

COMMERCIAL MORTGAGE-BACKED SECURITIES    1.0%

  
  99       

Credit Suisse Mortgage Capital Certificates,
Ser. 2007-C5, Class A2,
5.589%, 09/15/40

     98,825  
  400       

CW Capital Cobalt Ltd.,
Ser. 2007-C3, Class A3,
5.985%, 05/15/46(a)

     424,602  
  398       

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

     410,167  

 

See Notes to Financial Statements.

 

28   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

COMMERCIAL MORTGAGE-BACKED SECURITIES (Continued)

        
  195       

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

   $ 197,286  
  254       

JPMorgan Chase Commercial Mortgage Securities Corp.,
Ser. 2007-LD12, Class A2,
5.827%, 02/15/51

     260,624  
  956       

LB-UBS Commercial Mortgage Trust,
Ser. 2007-C6, Class A2,
5.845%, 07/15/40

     960,102  
  740       

Morgan Stanley Capital I, Inc.,
Ser. 2005-IQ9, Class A4,
4.660%, 07/15/56

     763,608  
  364       

Wachovia Bank Commercial Mortgage Trust,
Ser. 2007-C34, Class A2,
5.569%, 05/15/46

     364,942  
       

 

 

 
    

Total commercial mortgage-backed securities

     3,480,156  
       

 

 

 

 

CORPORATE BONDS    20.1%

  

 

Aerospace & Defense    0.2%

        
  350       

B/E Aerospace, Inc., Sr. Unsec’d. Notes,
5.250%, 04/01/22

     372,750  
  100       

Textron, Inc.,
Sr. Unsec’d. Notes,
5.600%, 12/01/17

     113,199  
  200       

7.250%, 10/01/19

     243,010  
       

 

 

 
          728,959  
       

 

 

 

 

Airlines    0.2%

        
  92       

Continental Airlines, Inc., Pass-thru Certs., Ser. A,
4.750%, 01/12/21

     101,320  
  206       

Delta Air Lines, Inc., Pass-thru Certs.,
Ser. 071A,
6.821%, 08/10/22

     239,697  
  22       

Ser. 2A,
4.950%, 05/23/19

     23,852  
  213       

Ser. A,
5.300%, 04/15/19

     236,425  
  111       

United Airlines, Inc., Pass-thru Certs., Ser. 071A,
6.636%, 07/02/22

     121,004  
       

 

 

 
          722,298  
       

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     29   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Automotive    0.4%

        
  50       

BorgWarner, Inc., Sr. Unsec’d. Notes,
4.625%, 09/15/20

   $ 55,595  
  350       

Delphi Corp., Gtd. Notes,
5.875%, 05/15/19

     379,313  
  460       

Ford Motor Credit Co. LLC,
Sr. Unsec’d. Notes,
4.207%, 04/15/16

     491,285  
  225       

5.625%, 09/15/15

     245,555  
  100       

Harley-Davidson Financial Services, Inc.,
Gtd. Notes, 144A, MTN,
2.700%, 03/15/17

     103,505  
  75       

Harley-Davidson Funding Corp., Gtd. Notes, 144A, MTN,
5.750%, 12/15/14

     80,772  
       

 

 

 
          1,356,025  
       

 

 

 

 

Banking    5.5%

        
  506       

American Express Co., Sr. Unsec’d. Notes,
2.650%, 12/02/22

     507,060  
  750       

American Express Credit Corp., Sr. Unsec’d. Notes, MTN,
2.800%, 09/19/16

     795,547  
  235       

Bank of America Corp.,
Jr. Sub. Notes, Ser. K,
8.000%, 12/29/49(a)

     266,966  
  225       

Sr. Unsec’d. Notes,
5.700%, 01/24/22

     268,177  
  540       

Sr. Unsec’d. Notes, MTN,
5.000%, 05/13/21

     617,988  
  700       

5.875%, 02/07/42

     875,243  
  120       

Sr. Unsec’d. Notes, Ser. 1,
3.750%, 07/12/16

     127,655  
  400       

Sub. Notes,
4.750%, 08/15/13

     404,543  
  200       

Bear Stearns Cos., Inc. (The), Sr. Unsec’d. Notes,
7.250%, 02/01/18

     249,058  
  420       

Capital One Bank USA NA, Sub. Notes,
3.375%, 02/15/23

     427,359  
  115       

Capital One Financial Corp., Sub. Notes,
6.150%, 09/01/16

     131,856  

 

See Notes to Financial Statements.

 

30   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Banking (cont’d.)

        
  425       

Citigroup, Inc.,
Sr. Unsec’d. Notes,
4.500%, 01/14/22

   $ 479,888  
  385       

6.125%, 05/15/18

     463,382  
  110       

8.125%, 07/15/39

     167,495  
  605       

8.500%, 05/22/19

     813,853  
  300       

Sub. Notes,
5.500%, 02/15/17

     336,459  
  1,200       

Goldman Sachs Group, Inc. (The),
Sr. Unsec’d. Notes,
5.250%, 07/27/21

     1,391,353  
  205       

6.250%, 02/01/41

     255,741  
  1,300       

Sr. Unsec’d. Notes, MTN,
7.500%, 02/15/19

     1,639,281  
  185       

Sub. Notes,
6.750%, 10/01/37

     212,246  
  225       

HSBC USA, Inc., Sr. Unsec’d. Notes,
2.375%, 02/13/15

     231,803  
  450       

JPMorgan Chase & Co.,
Jr. Sub. Notes, Ser. 1,
7.900%, 04/29/49(a)

     524,096  
  800       

Sr. Unsec’d. Notes,
3.150%, 07/05/16

     850,518  
  30       

4.250%, 10/15/20

     33,602  
  830       

4.350%, 08/15/21

     931,995  
  500       

5.600%, 07/15/41

     612,922  
  150       

6.000%, 01/15/18

     178,803  
  90       

KeyCorp, Sr. Unsec’d. Notes, MTN,
5.100%, 03/24/21

     106,274  
  325       

Morgan Stanley,
Sr. Unsec’d. Notes,
6.375%, 07/24/42

     412,101  
  1,970       

Sr. Unsec’d. Notes, MTN,
5.625%, 09/23/19

     2,294,944  
  345       

Santander Holdings USA, Inc.,
Sr. Unsec’d. Notes,
3.000%, 09/24/15

     357,019  
  50       

4.625%, 04/19/16

     53,680  
  245       

State Street Corp., Jr. Sub. Debs.,
4.956%, 03/15/18(a)

     278,515  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     31   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Banking (cont’d.)

        
  340       

US Bancorp, Jr. Sub. Notes,
3.442%, 02/01/16

   $ 361,960  
  370       

Wachovia Bank NA, Sub. Notes,
4.875%, 02/01/15

     395,856  
  425       

Wells Fargo & Co.,
Sr. Unsec’d. Notes,
3.676%, 06/15/16

     459,433  
  120       

Sr. Unsec’d. Notes, MTN,
3.500%, 03/08/22

     128,729  
  130       

4.600%, 04/01/21

     150,342  
       

 

 

 
          18,793,742  
       

 

 

 

 

Brokerage    0.1%

        
  450       

Jefferies Group, Inc., Sr. Unsec’d. Notes,
5.125%, 01/20/23

     488,314  
  100       

Lehman Brothers Holdings, Inc., Sr. Unsec’d. Notes,
6.875%, 05/02/18(f)

     24,125  
       

 

 

 
          512,439  
       

 

 

 

 

Building Materials & Construction    0.4%

        
  250       

Cemex Finance LLC, Sr. Sec’d. Notes, RegS,
9.500%, 12/14/16

     268,750  
  110       

CRH America, Inc., Gtd. Notes,
8.125%, 07/15/18

     136,781  
  260       

Masco Corp., Sr. Unsec’d. Notes,
7.125%, 08/15/13

     264,092  
  270       

Owens Corning, Gtd. Notes,
4.200%, 12/15/22

     284,866  
  420       

Toll Brothers Finance Corp., Gtd. Notes,
5.150%, 05/15/15

     444,839  
       

 

 

 
          1,399,328  
       

 

 

 

 

Cable    1.1%

        
  250       

Cequel Communications Holdings I LLC and Cequel Capital Corp., Sr. Unsec’d. Notes, 144A,
8.625%, 11/15/17

     267,813  

 

See Notes to Financial Statements.

 

32   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Cable (cont’d.)

        
  325       

CSC Holdings LLC,
Sr. Unsec’d. Notes,
6.750%, 11/15/21

   $ 371,313  
  185       

8.625%, 02/15/19

     225,237  
  125       

DIRECTV Holdings LLC/DIRECTV Financing Co., Inc.,
Gtd. Notes,
3.500%, 03/01/16

     133,120  
  225       

3.550%, 03/15/15

     235,578  
  65       

4.750%, 10/01/14

     68,537  
  900       

DISH DBS Corp., Gtd. Notes,
6.625%, 10/01/14

     956,250  
GBP 500        

Lynx I Corp., Sr. Sec’d. Notes, 144A,
6.000%, 04/15/21

     819,392  
  195       

Time Warner Cable, Inc., Gtd. Notes,
6.750%, 07/01/18

     242,168  
  300       

8.750%, 02/14/19

     401,120  
       

 

 

 
          3,720,528  
       

 

 

 

 

Capital Goods    1.4%

        
  200       

ABB Finance USA, Inc., Gtd. Notes,
2.875%, 05/08/22

     206,428  
  400       

Actuant Corp., Gtd. Notes,
5.625%, 06/15/22

     417,000  
  300       

Case New Holland, Inc., Gtd. Notes,
7.750%, 09/01/13

     305,625  
  145       

Caterpillar Financial Services Corp., Sr. Unsec’d. Notes, MTN,
5.850%, 09/01/17

     172,552  
  250       

ERAC USA Finance Co.,
Gtd. Notes, 144A,
6.375%, 10/15/17
(original cost $273,750; purchased 02/09/10)(d)(e)

     300,741  
  190       

7.000%, 10/15/37,
(original cost $221,242; purchased 10/26/11)(d)(e)

     250,367  
    

Penske Truck Leasing Co. LP/PTL Finance Corp.,
Sr. Unsec’d. Notes, 144A,
2.500%, 03/15/16

  
  1,000       

(original cost $998,520; purchased 09/24/12)(d)(e)
Unsec’d. Notes, 144A,
3.125%, 05/11/15

     1,034,854  
  125       

(original cost $124,879; purchased 05/08/12)(d)(e)

     129,969  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     33   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Capital Goods (cont’d.)

        
  750       

United Rentals North America, Inc., Gtd. Notes,
7.625%, 04/15/22

   $ 860,625  
  675       

United Technologies Corp., Sr. Unsec’d. Notes,
4.500%, 06/01/42

     746,051  
  225       

Xylem, Inc., Sr. Unsec’d. Notes,
4.875%, 10/01/21

     257,139  
       

 

 

 
          4,681,351  
       

 

 

 

 

Chemicals    0.4%

        
  300       

Ashland, Inc.,
Gtd. Notes, 144A,
4.750%, 08/15/22

     313,500  
  175       

Sr. Unsec’d. Notes, 144A,
3.875%, 04/15/18

     180,250  
  152       

Dow Chemical Co. (The), Sr. Unsec’d. Notes,
9.400%, 05/15/39

     250,962  
  400       

Reliance Holdings USA, Inc., Gtd. Notes, 144A,
5.400%, 02/14/22

     450,840  
       

 

 

 
          1,195,552  
       

 

 

 

 

Consumer    0.1%

        
  250       

Service Corp. International, Sr. Unsec’d. Notes,
7.000%, 06/15/17

     287,500  

 

Electric    0.3%

        
  250       

AES Corp. (The),
Sr. Unsec’d. Notes,
8.000%, 10/15/17

     299,375  
  250       

9.750%, 04/15/16

     302,500  
  350       

Duke Energy Corp., Sr. Unsec’d. Notes,
6.300%, 02/01/14

     364,695  
  105       

Oncor Electric Delivery Co. LLC, Sr. Sec’d. Notes,
6.800%, 09/01/18

     131,688  
  50       

Public Service Co. of New Mexico, Sr. Unsec’d. Notes,
7.950%, 05/15/18

     62,495  
       

 

 

 
          1,160,753  
       

 

 

 

 

See Notes to Financial Statements.

 

34   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Energy—Other    0.2%

        
  175       

Anadarko Petroleum Corp.,
Sr. Unsec’d. Notes,
6.375%, 09/15/17

   $ 209,466  
  35       

6.450%, 09/15/36

     44,731  
  170       

Nabors Industries, Inc., Gtd. Notes,
4.625%, 09/15/21

     179,030  
  200       

Pioneer Natural Resources Co., Sr. Unsec’d. Notes,
6.875%, 05/01/18

     244,016  
       

 

 

 
          677,243  
       

 

 

 

 

Foods    1.1%

        
  225       

Anheuser-Busch InBev Worldwide, Inc., Gtd. Notes,
8.000%, 11/15/39

     363,949  
  475       

ARAMARK Corp., Gtd. Notes, 144A,
5.750%, 03/15/20

     497,562  
  250       

ConAgra Foods, Inc., Sr. Unsec’d. Notes,
7.000%, 04/15/19

     313,280  
  800       

Cott Beverages, Inc., Gtd. Notes,
8.125%, 09/01/18

     878,000  
  200       

Darling International, Inc., Gtd. Notes,
8.500%, 12/15/18

     227,000  
  150       

HJ Heinz Co.,
Sr. Unsec’d. Notes,
1.500%, 03/01/17

     151,219  
  100       

2.850%, 03/01/22

     101,125  
  60       

3.125%, 09/12/21

     60,675  
  300       

Ingles Markets, Inc., Sr. Unsec’d. Notes,
8.875%, 05/15/17

     314,625  
    

JBS USA LLC/JBS USA Finance, Inc.,
Sr. Unsec’d. Notes, 144A,
7.250%, 06/01/21

  
  190       

(original cost $175,275; purchased 12/08/11)(d)(e)

     201,400  
  75       

Kraft Foods Group, Inc., Sr. Unsec’d. Notes,
6.875%, 01/26/39

     103,385  
  350       

Stater Bros. Holdings, Inc., Gtd. Notes,
7.750%, 04/15/15

     350,000  
  90       

Tyson Foods, Inc., Gtd. Notes,
6.600%, 04/01/16

     102,892  
       

 

 

 
          3,665,112  
       

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     35   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Gaming    0.3%

        
  205       

Ameristar Casinos, Inc., Gtd. Notes,
7.500%, 04/15/21

   $ 228,575  
  200       

Marina District Finance Co., Inc., Sr. Sec’d. Notes,
9.500%, 10/15/15

     213,060  
  400       

Pinnacle Entertainment, Inc., Gtd. Notes,
8.625%, 08/01/17

     423,000  
    

Yonkers Racing Corp., Sec’d. Notes, 144A,
11.375%, 07/15/16

  
  250       

(original cost $263,750; purchased 06/28/12)(d)(e)

     268,125  
       

 

 

 
          1,132,760  
       

 

 

 

 

Healthcare & Pharmaceutical    1.1%

        
  710       

AbbVie, Inc., Sr. Unsec’d. Notes, 144A,
4.400%, 11/06/42

     749,781  
  280       

Amgen, Inc.,
Sr. Unsec’d. Notes,
5.150%, 11/15/41

     320,950  
  45       

5.375%, 05/15/43

     53,710  
  50       

Becton Dickinson and Co., Sr. Unsec’d. Notes,
5.000%, 11/12/40

     58,279  
  125       

Gilead Sciences, Inc., Sr. Unsec’d. Notes,
5.650%, 12/01/41

     156,353  
  250       

HCA, Inc.,
Gtd. Notes,
8.000%, 10/01/18

     297,187  
    

Sr. Unsec’d. Notes,

  
  400       

7.190%, 11/15/15

     444,000  
  35       

Sr. Unsec’d. Notes, MTN,
9.000%, 12/15/14

     38,894  
  170       

Mylan, Inc., Gtd. Notes, 144A,
7.625%, 07/15/17

     188,901  
  500       

Valeant Pharmaceuticals International, Gtd. Notes, 144A,
6.500%, 07/15/16

     520,937  
  200       

Watson Pharmaceuticals, Inc., Sr. Unsec’d. Notes,
5.000%, 08/15/14

     209,933  
  70       

Wyeth, Gtd. Notes,
6.450%, 02/01/24

     94,687  
  415       

Zoetis, Inc., Sr. Unsec’d. Notes, 144A,
3.250%, 02/01/23

     426,107  
       

 

 

 
          3,559,719  
       

 

 

 

 

See Notes to Financial Statements.

 

36   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Healthcare Insurance    0.4%

        
  225       

Cigna Corp.,
Sr. Unsec’d. Notes,
5.375%, 02/15/42

   $ 265,089  
  140       

5.875%, 03/15/41

     172,916  
  360       

Coventry Health Care, Inc., Sr. Unsec’d. Notes,
6.125%, 01/15/15

     388,398  
  235       

UnitedHealth Group, Inc., Sr. Unsec’d. Notes,
6.625%, 11/15/37

     315,918  
  95       

WellPoint, Inc., Sr. Unsec’d. Notes,
4.625%, 05/15/42

     100,876  
       

 

 

 
          1,243,197  
       

 

 

 
  Insurance    0.8%                   
  300       

American International Group, Inc.,
Sr. Unsec’d. Notes,
4.875%, 09/15/16

     333,973  
  75       

6.400%, 12/15/20

     93,840  
  100       

8.250%, 08/15/18

     129,679  
  300       

Sr. Unsec’d. Notes, MTN,
5.850%, 01/16/18

     351,907  
  140       

Chubb Corp. (The), Jr. Sub. Notes,
6.375%, 03/29/67(a)

     155,750  
  175       

Hartford Financial Services Group, Inc., Sr. Unsec’d. Notes,
5.125%, 04/15/22

     207,392  
  90       

Liberty Mutual Group, Inc., Sr. Unsec’d. Notes, 144A,
6.500%, 03/15/35

     103,852  
  30       

Lincoln National Corp.,
Jr. Sub. Notes,
6.050%, 04/20/67(a)

     30,375  
  80       

Sr. Unsec’d. Notes,
6.300%, 10/09/37

     102,162  
  200       

8.750%, 07/01/19

     272,487  
  100       

MetLife, Inc., Sr. Unsec’d. Notes,
7.717%, 02/15/19

     131,405  
  50       

Northwestern Mutual Life Insurance, Sub. Notes, 144A,
6.063%, 03/30/40

     64,429  
  100       

Progressive Corp. (The), Jr. Sub. Notes,
6.700%, 06/15/37(a)

     111,250  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     37   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Insurance (cont’d.)

        
  210       

Teachers Insurance & Annuity Association of America,
Sub. Notes, 144A,
6.850%, 12/16/39

   $ 290,540  
  245       

Unum Group, Sr. Unsec’d. Notes,
7.125%, 09/30/16

     288,310  
       

 

 

 
          2,667,351  
       

 

 

 

 

Lodging    0.1%

        
  185       

Felcor Lodging LP, Sr. Sec’d. Notes,
10.000%, 10/01/14

     205,581  
  125       

Marriott International, Inc., Sr. Unsec’d. Notes,
3.000%, 03/01/19

     131,513  
       

 

 

 
          337,094  
       

 

 

 

 

Media & Entertainment    1.2%

        
  250       

Cedar Fair LP/Canada’s Wonderland Co./Magnum Management Corp., Gtd. Notes,
9.125%, 08/01/18

     280,156  
  225       

Historic TW, Inc., Gtd. Notes,
6.625%, 05/15/29

     287,213  
  500       

Liberty Interactive LLC, Sr. Unsec’d. Notes,
8.250%, 02/01/30

     560,000  
  100       

NBCUniversal Media LLC, Gtd. Notes,
4.375%, 04/01/21

     115,359  
  415       

News America, Inc.,
Gtd. Notes,
6.150%, 03/01/37

     510,113  
  120       

6.150%, 02/15/41

     150,720  
  60       

6.900%, 08/15/39

     78,677  
  450       

Nielsen Finance LLC/Nielsen Finance Co., Gtd. Notes,
11.625%, 02/01/14

     484,312  
  600       

R.R. Donnelley & Sons Co.,
Sr. Unsec’d. Notes,
4.950%, 04/01/14

     617,250  
  450       

8.600%, 08/15/16

     522,000  
  200       

SSI Investments II/SSI Co.-Issuer LLC, Gtd. Notes,
11.125%, 06/01/18

     221,500  
  55       

Viacom, Inc.,
Sr. Unsec’d. Notes,
4.375%, 09/15/14

     57,697  

 

See Notes to Financial Statements.

 

38   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Media & Entertainment (cont’d.)

        
  233       

4.500%, 02/27/42

   $ 227,396  
       

 

 

 
          4,112,393  
       

 

 

 

 

Metals    0.3%

        
  525       

Barrick North America Finance LLC,
Sr. Unsec’d. Notes, 144A,
5.750%, 05/01/43

     527,096  
  100       

Newmont Mining Corp., Gtd. Notes,
6.250%, 10/01/39

     111,095  
  400       

Peabody Energy Corp., Gtd. Notes,
6.000%, 11/15/18

     432,000  
       

 

 

 
          1,070,191  
       

 

 

 

 

Non-Captive Finance    0.8%

        
  165       

General Electric Capital Corp.,
Sr. Unsec’d. Notes, MTN,
4.625%, 01/07/21

     188,793  
  585       

5.875%, 01/14/38(g)

     708,912  
  100       

Sub. Notes,
5.300%, 02/11/21

     116,174  
  200       

International Lease Finance Corp.,
Sr. Sec’d. Notes, 144A,
6.500%, 09/01/14

     214,000  
  75       

Sr. Unsec’d. Notes,
5.750%, 05/15/16

     81,576  
  125       

6.250%, 05/15/19

     140,157  
  55       

SLM Corp.,
Sr. Notes, MTN,
6.250%, 01/25/16

     59,812  
  510       

Sr. Unsec’d. Notes, MTN,
5.050%, 11/14/14

     533,737  
  75       

6.000%, 01/25/17

     81,188  
  225       

8.450%, 06/15/18

     264,211  
  390       

Sr. Unsec’d. Notes, Ser. A, MTN,
5.000%, 04/15/15

     412,446  
       

 

 

 
          2,801,006  
       

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     39   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Packaging    0.2%

        
  140       

Greif, Inc., Sr. Unsec’d. Notes,
7.750%, 08/01/19

   $ 164,150  
  400       

Owens-Brockway Glass Container, Inc., Gtd. Notes,
7.375%, 05/15/16

     458,000  
       

 

 

 
          622,150  
       

 

 

 

 

Paper    0.4%

        
  130       

International Paper Co.,
Sr. Unsec’d. Notes,
6.000%, 11/15/41

     158,224  
  75       

7.300%, 11/15/39

     102,795  
  200       

7.950%, 06/15/18

     257,844  
  450       

MeadWestvaco Corp., Sr. Unsec’d. Notes,
7.375%, 09/01/19

     550,238  
  175       

Rock-Tenn Co., Gtd. Notes,
4.450%, 03/01/19

     192,119  
       

 

 

 
          1,261,220  
       

 

 

 

 

Pipelines & Other    0.5%

        
  200       

CenterPoint Energy Resources Corp., Sr. Unsec’d. Notes,
6.625%, 11/01/37

     273,681  
  85       

Energy Transfer Partners LP,
Sr. Unsec’d. Notes,
4.650%, 06/01/21

     94,189  
  420       

5.150%, 02/01/43

     438,062  
  170       

Kinder Morgan Energy Partners LP, Sr. Unsec’d. Notes,
7.300%, 08/15/33

     224,374  
  75       

Northwest Pipeline GP, Sr. Unsec’d. Notes,
6.050%, 06/15/18

     90,806  
  600       

Targa Resources Partners LP/Targa Resources Partners Finance Corp., Gtd. Notes,
6.875%, 02/01/21

     667,500  
       

 

 

 
          1,788,612  
       

 

 

 

 

Railroads    0.1%

        
  300       

Norfolk Southern Corp., Sr. Unsec’d. Notes,
6.000%, 03/15/2105

     377,714  

 

See Notes to Financial Statements.

 

40   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Real Estate Investment Trusts    0.2%

        
  250       

Hospitality Properties Trust, Sr. Unsec’d. Notes,
7.875%, 08/15/14

   $ 262,638  
  45       

Simon Property Group LP,
Sr. Unsec’d. Notes,
2.800%, 01/30/17

     47,585  
  95       

4.200%, 02/01/15

     100,021  
  40       

6.125%, 05/30/18

     49,055  
  200       

WEA Finance LLC/WT Finance Aust Pty Ltd.,
Gtd. Notes, 144A,
5.750%, 09/02/15

     221,528  
       

 

 

 
          680,827  
       

 

 

 

 

Retailers    0.4%

        
  200       

CVS Caremark Corp., Sr. Unsec’d. Notes,
6.125%, 09/15/39

     254,171  
  75       

Macy’s Retail Holdings, Inc., Gtd. Notes,
3.875%, 01/15/22

     80,300  
  350       

QVC, Inc., Sr. Sec’d. Notes, 144A,
7.500%, 10/01/19

     385,899  
  450       

Susser Holdings LLC/Susser Finance Corp., Gtd. Notes,
8.500%, 05/15/16

     471,094  
       

 

 

 
          1,191,464  
       

 

 

 

 

Technology    1.0%

        
  250       

Amphenol Corp., Sr. Unsec’d. Notes,
4.750%, 11/15/14

     264,107  
  190       

Arrow Electronics, Inc.,
Sr. Unsec’d. Notes,
3.000%, 03/01/18

     194,481  
  50       

3.375%, 11/01/15

     51,899  
  650       

Ceridian Corp., Gtd. Notes,
11.250%, 11/15/15

     673,563  
    

CommScope, Inc., Gtd. Notes, 144A,
8.250%, 01/15/19

  
  400       

(original cost $391,250; purchased 09/29/11)(d)(e)

     437,000  
  50       

Fiserv, Inc.,
Gtd. Notes,
3.125%, 10/01/15

     52,438  
  45       

3.125%, 06/15/16

     47,418  

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     41   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

CORPORATE BONDS (Continued)

  

 

Technology (cont’d.)

        
  655       

Jabil Circuit, Inc., Sr. Unsec’d. Notes,
4.700%, 09/15/22

   $ 664,825  
  150       

SunGard Data Systems, Inc., Gtd. Notes,
7.625%, 11/15/20

     165,750  
  400       

TransUnion LLC/TransUnion Financing Corp., Gtd. Notes,
11.375%, 06/15/18

     458,000  
  225       

Xerox Corp., Sr. Unsec’d. Notes,
4.250%, 02/15/15

     237,310  
       

 

 

 
          3,246,791  
       

 

 

 

 

Telecommunications    0.6%

  

  375       

AT&T, Inc., Sr. Unsec’d. Notes,
5.350%, 09/01/40

     423,408  
  200       

CC Holdings GS V LLC, Sr. Sec’d. Notes, 144A,
2.381%, 12/15/17

     202,212  
  250       

MetroPCS Wireless, Inc., Gtd. Notes,
7.875%, 09/01/18

     275,312  
  465       

Qwest Corp., Sr. Unsec’d. Notes,
6.500%, 06/01/17

     539,059  
  400       

Sprint Nextel Corp., Sr. Unsec’d. Notes,
7.000%, 08/15/20

     438,000  
  85       

Verizon Communications, Inc., Sr. Unsec’d. Notes,
6.400%, 02/15/38

     107,007  
       

 

 

 
          1,984,998  
       

 

 

 

 

Tobacco    0.3%

  

  250       

Altria Group, Inc., Gtd. Notes,
9.950%, 11/10/38

     416,642  
    

Lorillard Tobacco Co.,
Gtd. Notes,

  
  60       

3.500%, 08/04/16

     63,524  
  80       

8.125%, 06/23/19

     102,424  
  300       

Reynolds American, Inc., Gtd. Notes,
6.750%, 06/15/17

     360,273  
       

 

 

 
          942,863  
       

 

 

 
    

Total corporate bonds

     67,921,180  
       

 

 

 

 

See Notes to Financial Statements.

 

42   Visit our website at www.prudentialfunds.com


 

 

 

Principal
Amount (000)#
       Description    Value (Note 1)  

 

MUNICIPAL BONDS    0.5%

  

  100       

Chicago IL Brd. Ed., BABs, Taxable Ser. E,
6.138%, 12/01/39

   $ 110,770  
  275       

Connecticut St. Spl. Tax Obligation Rev., BABs,
5.459%, 11/01/30

     343,412  
  175       

District of Columbia Income Tax Rev., BABs,
5.582%, 12/01/35

     222,659  
  125       

Metropolitan Government of Nashville & Davidson Cnty.,
Convention Center Auth., BABs,
6.731%, 07/01/43

     161,114  
  250       

New York, NY, BABs,
5.968%, 03/01/36

     322,460  
  150       

University of Calif. Rev. BABs,
5.770%, 05/15/43

     189,924  
  250       

University TX, Perm. Univ. BABs,
5.262%, 07/01/39

     318,540  
       

 

 

 
    

Total municipal bonds

     1,668,879  
       

 

 

 

 

U.S GOVERNMENT AGENCY OBLIGATION    0.1%

  

  200       

Federal National Mortgage Association,
0.750%, 12/19/14

     201,673  
       

 

 

 

 

U.S. TREASURY SECURITIES    0.5%

  

  800       

U.S. Treasury Notes,
0.250%, 04/15/16

     798,625  
  900       

2.000%, 02/15/23

     926,297  
       

 

 

 
    

Total U.S. treasury securities

     1,724,922  
       

 

 

 

 

PREFERRED STOCK

  

Shares

               

 

Banking

  

  4,000       

Citigroup Capital XIII
(Capital Security, fixed to floating preferred), 7.875%(a)

     112,960  
       

 

 

 
    

Total long-term investments
(cost 306,500,333)

     326,905,823  
       

 

 

 

 

SHORT-TERM INVESTMENT    0.7%

  

 

Affiliated Money Market Mutual Fund

  

  2,454,975       

Prudential Investment Portfolios 2 - Prudential Core
Taxable Money Market Fund
(cost 2,454,975)(h)

     2,454,975  
       

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     43   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Description   Value (Note 1)  

Total Investments    97.2%
(cost 308,955,308; Note 5)

  $ 329,360,798  

Other assets in excess of liabilities(i)    2.8%

    9,363,641  
 

 

 

 

Net Assets    100.0%

  $ 338,724,439  
 

 

 

 

 

The following abbreviations are used in the portfolio descriptions:

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

RegS—Regulation S. Security was purchased pursuant to Regulation S and may not be offered, sold or delivered within the United States or to, or for the account or benefit of, U.S. persons, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act of 1933.

ABS—Asset-Backed Security

BABs—Build America Bonds

CDO—Collateralized Debt Obligation

CLO—Collateralized Loan Obligation

GMTN—Global Medium Term Note

MTN—Medium Term Note

PSI—Private Sector Involvement

AED—United Arab Emirates Dirham

ARS—Argentine Peso

AUD—Australian Dollar

BRL—Brazilian Real

CAD—Canadian Dollar

CHF—Swiss Franc

CLP—Chilean Peso

CNY—Chinese Yuan Renminbi

COP—Colombian Peso

CZK—Czech Koruna

DKK—Danish Krone

EUR—Euro

GBP—British Pound

HKD—Hong Kong Dollar

HUF—Hungarian Forint

IDR—Indonesian Rupiah

ILS—Israeli New Shekel

INR—Indian Rupee

ITL—Italian Lira

JPY—Japanese Yen

KRW—South Korean Won

MXN—Mexican Peso

MYR—Malaysian Ringgit

 

See Notes to Financial Statements.

 

44   Visit our website at www.prudentialfunds.com


 

 

 

NOK—Norwegian Krone

NZD—New Zealand Dollar

PEN—Peruvian Nuevo Sol

PHP—Philippine Peso

PLN—Polish Zloty

RON—Romanian Leu

RUB—Russian Rouble

SEK—Swedish Krona

SGD—Singapore Dollar

THB—Thai Baht

TRY—Turkish Lira

TWD—Taiwan Dollar

ZAR—South African Rand

BBR—New Zealand Bank Bill Rate

BBSW—Australian Bank Bill Swap Reference Rate

BIBOR—Bangkok Interbank Offered Rate

BOBL— Bundesobligationen - German Federal Obligations

bps— Basis Points

BUBOR— Budapest Interbank Offered Rate

BTP—Buoni del Tesoro Poliennali - Long Term Italian fixed-rate Treasury Bonds and Notes

BZDIOVER—Overnight Brazil Cetip Interbank Deposit

CIBOR—Copenhagen Interbank Offered Rate

COLIBOR—Colombia Interbank Offered Rate

CP—Commercial Paper

CPI—Consumer Price Index

EONIA—Euro Overnight Index Average

EIBOR—Emirates Interbank Offered Rate

EURIBOR—Euro Interbank Offered Rate

HIBOR—Hong Kong Interbank Offered Rate

JIBAR—Johannesburg Interbank Agreed Rate

LIBOR—London Interbank Offered Rate

MIBOR—Mumbai Interbank Offered Rate

MOSPRIME—Moscow Prime Offered Rate

NIBOR—Norwegian Interbank Offered Rate

OIS—Overnight Index Swap

SOR—Swap Offer Rate

STIBOR—Stockholm Interbank Offered Rate

TELBOR—Tel Aviv Interbank Offered Rate

WIBOR—Warsaw Interbank Offered Rate

# Principal amount is shown in U.S. dollars unless otherwise stated.
(a) Variable rate instrument. The interest rate shown reflects the rate in effect at April 30, 2013.
(b) Represents security, or a portion thereof, segregated as collateral for futures contracts.
(c) Represents a step bond. Rate shown reflects the rate in effect at April 30, 2013.
(d) Indicates a security that has been deemed illiquid.

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     45   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

(e) Indicates a restricted security, the aggregate original cost of such securities is $2,448,666. The aggregate value of $2,622,456 is approximately 0.8% of net assets.
(f) Represents issuer in default on interest payments and/or principal repayment; non-income producing security.
(g) Represents security, or a portion thereof, segregated as collateral for swap agreements.
(h) Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund.
(i) Includes net unrealized appreciation (depreciation) on the following derivative contracts held at reporting period end:

 

Open futures contracts outstanding at April 30, 2013:

 

Number of
Contracts
    Type   Expiration
Date
    Value at
Trade
Date
    Value at
April 30,
2013
    Unrealized
Appreciation
(Depreciation)
 
  Long Positions:        
  41      90 Day Euro Dollar     Dec. 2013      $ 13,443,650      $ 13,470,395      $ 26,745   
  56      90 Day Euro Dollar     Dec. 2014        18,296,947        18,374,620        77,673   
  20      2 Year U.S. Treasury Notes     Jun. 2013        4,411,275        4,412,500        1,225   
  81      5 Year U.S. Treasury Notes     Jun. 2013        10,077,950        10,095,891        17,941   
  52      10 Year U.S. Treasury Notes     Jun. 2013        6,940,705        6,934,688        (6,017
  42      Euro-BTP Italian Gov’t. Bond     Jun. 2013        5,974,880        6,413,417        438,537   
  92      U.S. Long Bond     Jun. 2013        13,131,996        13,650,500        518,504   
  Short Positions:        
  15      30 Day Fed Fund     Dec. 2013        6,240,787        6,242,374        (1,587
  54      90 Day Euro Dollar     Dec. 2013        13,449,613        13,458,150        (8,537
  26      Euro-BOBL     Jun. 2013        4,328,765        4,339,325        (10,560
  18      Euro-Bund     Jun. 2013        3,464,942        3,474,695        (9,753
  98      Euro Schatz     Jun. 2013        14,289,273        14,293,522        (4,249
  33      U.S. Ultra Bond     Jun. 2013        5,425,252        5,423,344        1,908   
         

 

 

 
          $ 1,041,830   
         

 

 

 

 

Forward foreign currency exchange contracts outstanding at April 30, 2013:

 

Purchase Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Payable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Argentine Peso

         

Expiring 10/21/13

  Citibank NA   ARS  6,234,100      $ 1,005,500      $ 968,084      $ (37,416

Expiring 10/21/13

  Citibank NA   ARS 4,143,312        667,200        643,409        (23,791

 

See Notes to Financial Statements.

 

46   Visit our website at www.prudentialfunds.com


 

 

 

Purchase Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Payable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Australian Dollar

         

Expiring 07/23/13

  Goldman Sachs   AUD 10,400,605      $ 10,636,761      $ 10,714,572      $ 77,811   

Expiring 07/23/13

  Goldman Sachs   AUD 1,629,289        1,673,400        1,678,473        5,073   

Expiring 07/23/13

  Goldman Sachs   AUD 687,959        706,500        708,726        2,226   

Brazilian Real

         

Expiring 07/08/13

  Citibank NA   BRL 4,035,472        2,011,400        1,998,256        (13,144

Expiring 07/08/13

  Citibank NA   BRL 2,062,578        1,016,900        1,021,333        4,433   

Expiring 07/08/13

  Citibank NA   BRL 2,046,541        979,300        1,013,391        34,091   

Expiring 07/08/13

  Citibank NA   BRL 2,031,700        1,000,000        1,006,043        6,043   

Expiring 07/08/13

  Citibank NA   BRL 2,027,461        1,002,800        1,003,944        1,144   

Expiring 07/08/13

  Citibank NA   BRL 1,769,276        886,100        876,097        (10,003

Expiring 07/08/13

  Citibank NA   BRL 1,701,426        817,600        842,500        24,900   

Expiring 07/08/13

  Citibank NA   BRL 1,681,008        808,200        832,389        24,189   

Expiring 07/08/13

  Citibank NA   BRL 1,659,458        828,900        821,718        (7,182

Expiring 07/08/13

  Citibank NA   BRL 1,647,350        786,700        815,723        29,023   

Expiring 07/08/13

  Citibank NA   BRL 1,465,869        723,600        725,858        2,258   

Expiring 07/08/13

  Citibank NA   BRL 1,350,856        649,700        668,907        19,207   

British Pound

         

Expiring 07/24/13

  Deutsche Bank AG   GBP 2,182,400        3,324,727        3,388,329        63,602   

Expiring 07/24/13

  UBS AG   GBP 874,700        1,334,579        1,358,033        23,454   

Expiring 07/24/13

  UBS AG   GBP 677,000        1,034,001        1,051,090        17,089   

Expiring 07/25/13

  Goldman Sachs   GBP 8,377,097        12,772,678        13,005,963        233,285   

Expiring 07/25/13

  Goldman Sachs   GBP 2,047,240        3,124,313        3,178,467        54,154   

Expiring 07/25/13

  Goldman Sachs   GBP 1,083,184        1,676,500        1,681,710        5,210   

Expiring 07/25/13

  Goldman Sachs   GBP 672,533        1,037,182        1,044,148        6,966   

Expiring 07/25/13

  Goldman Sachs   GBP 100,184        154,507        155,542        1,035   

Expiring 07/25/13

  JPMorgan   GBP 1,099,486        1,700,000        1,707,020        7,020   

Canadian Dollar

         

Expiring 07/22/13

  Citibank NA   CAD 13,108,862        12,752,035        12,986,573        234,538   

Expiring 07/22/13

  Goldman Sachs   CAD 2,058,432        2,002,600        2,039,230        36,630   

Expiring 07/22/13

  Goldman Sachs   CAD 1,023,305        1,014,600        1,013,759        (841

Expiring 07/22/13

  HSBC   CAD 1,710,749        1,673,400        1,694,790        21,390   

Chilean Peso

         

Expiring 06/11/13

  Citibank NA   CLP 797,068,944        1,668,800        1,682,190        13,390   

Expiring 06/11/13

  Citibank NA   CLP 479,050,000        1,000,000        1,011,021        11,021   

Expiring 06/11/13

  Credit Suisse International   CLP  2,725,143,415        5,665,579        5,751,333        85,754   

Expiring 08/16/13

  Citibank NA   CLP 473,267,221        988,300        990,081        1,781   

Expiring 08/16/13

  Citibank NA   CLP 404,364,550        840,500        845,936        5,436   

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     47   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Purchase Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Payable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Chinese Yuan Renminbi

         

Expiring 06/13/13

  UBS AG   CNY 33,733,663      $ 5,260,200      $ 5,459,463      $ 199,263   

Expiring 07/12/13

  Citibank NA   CNY 37,054,523        5,910,434        5,987,991        77,557   

Expiring 10/29/13

  Citibank NA   CNY 32,635,200        5,223,722        5,250,732        27,010   

Expiring 10/29/13

  Citibank NA   CNY 19,118,084        3,023,100        3,075,941        52,841   

Expiring 10/29/13

  JPMorgan   CNY 49,107,200        7,861,680        7,900,940        39,260   

Expiring 10/29/13

  UBS AG   CNY 52,086,740        8,209,100        8,380,323        171,223   

Colombian Peso

         

Expiring 05/14/13

  Citibank NA   COP  3,629,169,020        2,011,400        1,986,339        (25,061

Expiring 05/14/13

  Citibank NA   COP 3,022,474,000        1,660,700        1,654,279        (6,421

Expiring 05/14/13

  Citibank NA   COP 1,819,137,770        1,011,700        995,661        (16,039

Expiring 05/14/13

  Citibank NA   COP 1,803,903,950        1,008,500        987,324        (21,176

Expiring 06/07/13

  Citibank NA   COP 3,604,328,000        1,980,400        1,968,961        (11,439

Expiring 06/07/13

  Citibank NA   COP 3,001,979,430        1,647,900        1,639,912        (7,988

Expiring 06/07/13

  Citibank NA   COP 1,495,401,180        819,600        816,903        (2,697

Expiring 06/07/13

  UBS AG   COP 2,105,615,400        1,148,100        1,150,249        2,149   

Expiring 10/23/13

  Citibank NA   COP 3,116,999,970        1,672,300        1,681,752        9,452   

Expiring 10/23/13

  Citibank NA   COP 1,615,337,932        867,100        871,543        4,443   

Czech Koruna

         

Expiring 07/24/13

  Citibank NA   CZK 85,047,354        4,278,133        4,344,227        66,094   

Expiring 07/24/13

  Morgan Stanley   CZK 32,426,628        1,639,900        1,656,356        16,456   

Expiring 07/24/13

  UBS AG   CZK 21,145,064        1,073,000        1,080,092        7,092   

Euro

         

Expiring 07/24/13

  Goldman Sachs   EUR 1,947,800        2,543,861        2,566,683        22,822   

Expiring 07/24/13

  Goldman Sachs   EUR 1,538,800        2,009,700        2,027,730        18,030   

Expiring 07/25/13

  Citibank NA   EUR 2,022,520        2,642,200        2,665,164        22,964   

Expiring 07/25/13

  Goldman Sachs   EUR 3,390,800        4,427,049        4,468,207        41,158   

Expiring 07/25/13

  Goldman Sachs   EUR 3,241,347        4,216,685        4,271,266        54,581   

Expiring 07/25/13

  Goldman Sachs   EUR 1,017,700        1,330,376        1,341,068        10,692   

Hungarian Forint

         

Expiring 07/24/13

  Citibank NA   HUF 386,578,035        1,682,100        1,686,541        4,441   

Expiring 07/24/13

  Goldman Sachs   HUF 1,940,232,572        8,390,594        8,464,738        74,144   

Expiring 07/24/13

  Goldman Sachs   HUF 310,582,859        1,352,800        1,354,993        2,193   

Indian Rupee

         

Expiring 07/10/13

  UBS AG   INR 49,635,402        904,600        908,478        3,878   

Expiring 07/10/13

  UBS AG   INR 36,918,473        664,300        675,720        11,420   

Expiring 07/15/13

  Citibank NA   INR 705,926,163        12,686,132        12,907,306        221,174   

Expiring 07/15/13

  UBS AG   INR 91,374,472        1,672,300        1,670,711        (1,589

Expiring 11/05/13

  UBS AG   INR 93,427,750        1,691,000        1,674,518        (16,482

 

See Notes to Financial Statements.

 

48   Visit our website at www.prudentialfunds.com


 

 

 

Purchase Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Payable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Indonesian Rupiah

         

Expiring 05/28/13

  UBS AG   IDR 9,103,466,400      $ 927,600      $ 932,969      $ 5,369   

Expiring 05/28/13

  UBS AG   IDR 5,470,090,000        559,600        560,602        1,002   

Expiring 07/03/13

  UBS AG   IDR 16,204,749,000        1,627,800        1,653,468        25,668   

Expiring 07/03/13

  UBS AG   IDR 11,439,675,000        1,173,300        1,167,259        (6,041

Expiring 07/03/13

  UBS AG   IDR 10,065,000,000        1,000,000        1,026,992        26,992   

Expiring 07/03/13

  UBS AG   IDR 9,916,424,000        1,004,500        1,011,832        7,332   

Expiring 07/03/13

  UBS AG   IDR 7,385,904,500        739,700        753,628        13,928   

Expiring 07/03/13

  UBS AG   IDR 6,452,514,000        662,000        658,389        (3,611

Expiring 07/11/13

  UBS AG   IDR 16,401,060,000        1,677,000        1,671,645        (5,355

Expiring 07/11/13

  UBS AG   IDR 16,356,982,500        1,678,500        1,667,153        (11,347

Expiring 07/11/13

  UBS AG   IDR 6,553,578,000        670,100        667,960        (2,140

Israeli New Shekel

         

Expiring 07/24/13

  Citibank NA   ILS 3,635,547        1,003,989        1,011,307        7,318   

Expiring 07/24/13

  HSBC   ILS 9,394,881        2,582,040        2,613,392        31,352   

Expiring 07/24/13

  UBS AG   ILS 3,634,861        1,000,000        1,011,116        11,116   

Expiring 07/24/13

  UBS AG   ILS 2,422,086        667,000        673,756        6,756   

Japanese Yen

         

Expiring 07/25/13

  JPMorgan   JPY 2,771,825,133        27,896,257        28,447,272        551,015   

Expiring 07/25/13

  JPMorgan   JPY 149,861,626        1,506,495        1,538,031        31,536   

Malaysian Ringgit

         

Expiring 05/20/13

  UBS AG   MYR 1,895,972        611,900        622,209        10,309   

Expiring 08/07/13

  UBS AG   MYR 16,769,654        5,363,200        5,472,019        108,819   

Expiring 08/07/13

  UBS AG   MYR 5,242,727        1,680,900        1,710,727        29,827   

Expiring 08/07/13

  UBS AG   MYR 5,167,032        1,656,100        1,686,027        29,927   

Expiring 08/07/13

  UBS AG   MYR 3,036,581        986,800        990,851        4,051   

Expiring 08/07/13

  UBS AG   MYR 2,649,856        852,400        864,661        12,261   

Expiring 08/07/13

  UBS AG   MYR 2,554,398        819,900        833,513        13,613   

Expiring 08/07/13

  UBS AG   MYR 2,545,535        818,500        830,620        12,120   

Expiring 08/07/13

  UBS AG   MYR 2,541,700        820,300        829,369        9,069   

Mexican Peso

         

Expiring 07/22/13

  Citibank NA   MXN 112,168,175        9,049,297        9,172,578        123,281   

Expiring 07/22/13

  UBS AG   MXN 16,801,592        1,366,000        1,373,954        7,954   

New Zealand Dollar

         

Expiring 07/23/13

  Citibank NA   NZD 1,379,320        1,155,324        1,175,357        20,033   

Expiring 07/23/13

  Goldman Sachs   NZD 5,381,275        4,510,375        4,585,533        75,158   

Expiring 07/23/13

  Goldman Sachs   NZD 1,468,560        1,234,900        1,251,400        16,500   

Expiring 07/23/13

  Goldman Sachs   NZD 1,182,508        1,004,000        1,007,648        3,648   

Norwegian Krone

         

Expiring 07/24/13

  Citibank NA   NOK 9,870,022        1,668,800        1,705,953        37,153   

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     49   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Purchase Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Payable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Norwegian Krone (cont’d.)

         

Expiring 07/24/13

  Deutsche Bank AG   NOK 5,880,713      $ 1,009,200      $ 1,016,434      $ 7,234   

Expiring 07/24/13

  Goldman Sachs   NOK 31,259,456        5,318,153        5,402,944        84,791   

Expiring 07/24/13

  Goldman Sachs   NOK 9,845,394        1,676,500        1,701,697        25,197   

Expiring 07/24/13

  Goldman Sachs   NOK 9,819,623        1,673,400        1,697,242        23,842   

Expiring 07/24/13

  Morgan Stanley   NOK 7,820,503        1,352,800        1,351,711        (1,089

Peruvian Nuevo Sol

         

Expiring 05/31/13

  Citibank NA   PEN 8,335,991        3,219,524        3,146,801        (72,723

Expiring 05/31/13

  Citibank NA   PEN 2,549,633        986,700        962,476        (24,224

Philippine Peso

         

Expiring 05/31/13

  UBS AG   PHP 41,180,000        1,000,000        999,280        (720

Expiring 06/18/13

  Citibank NA   PHP 28,877,263        706,132        700,078        (6,054

Expiring 06/18/13

  UBS AG   PHP 48,205,308        1,170,600        1,168,652        (1,948

Polish Zloty

         

Expiring 07/24/13

  Citibank NA   PLN 2,312,182        733,000        727,453        (5,547

Expiring 07/24/13

  Goldman Sachs   PLN 29,234,712        9,229,848        9,197,749        (32,099

Expiring 07/24/13

  UBS AG   PLN 5,339,774        1,682,100        1,679,986        (2,114

Romanian Leu

         

Expiring 07/24/13

  Goldman Sachs   RON 3,359,098        1,000,000        1,014,044        14,044   

Expiring 07/24/13

  UBS AG   RON 28,606,504        8,501,609        8,635,725        134,116   

Russian Rouble

         

Expiring 06/13/13

  Citibank NA   RUB 86,628,424        2,769,362        2,760,601        (8,761

Expiring 06/13/13

  Citibank NA   RUB 50,500,366        1,581,200        1,609,303        28,103   

Expiring 06/13/13

  Citibank NA   RUB 31,679,534        1,017,800        1,009,536        (8,264

Expiring 10/09/13

  Citibank NA   RUB 107,056,927        3,321,500        3,347,028        25,528   

Expiring 10/09/13

  Citibank NA   RUB 79,692,800        2,511,259        2,491,516        (19,743

Expiring 10/09/13

  Citibank NA   RUB 64,466,228        2,012,400        2,015,472        3,072   

Expiring 10/09/13

  Citibank NA   RUB 53,359,515        1,678,500        1,668,232        (10,268

Expiring 10/09/13

  Citibank NA   RUB 32,037,944        995,400        1,001,634        6,234   

Singapore Dollar

         

Expiring 07/23/13

  JPMorgan   SGD 11,614,371        9,387,095        9,430,081        42,986   

South African Rand

         

Expiring 07/30/13

  Deutsche Bank AG   ZAR 9,327,769        1,008,778        1,026,397        17,619   

Expiring 07/30/13

  Goldman Sachs   ZAR 9,358,221        1,000,000        1,029,747        29,747   

Expiring 07/30/13

  Goldman Sachs   ZAR 6,149,831        669,300        676,707        7,407   

Expiring 07/30/13

  UBS AG   ZAR 12,245,474        1,345,600        1,347,451        1,851   

South Korean Won

         

Expiring 07/15/13

  UBS AG   KRW 4,572,434,092        3,981,188        4,139,845        158,657   

Expiring 07/15/13

  UBS AG   KRW  1,882,587,600        1,674,900        1,704,480        29,580   

Expiring 07/15/13

  UBS AG   KRW 1,880,501,350        1,672,300        1,702,591        30,291   

 

See Notes to Financial Statements.

 

50   Visit our website at www.prudentialfunds.com


 

 

 

Purchase Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Payable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

South Korean Won (cont’d.)

       

Expiring 07/15/13

  UBS AG   KRW 1,869,523,200      $ 1,675,200      $ 1,692,651      $ 17,451   

Expiring 07/15/13

  UBS AG   KRW  1,121,640,300        1,014,600        1,015,524        924   

Expiring 07/15/13

  UBS AG   KRW 1,121,250,000        1,000,000        1,015,171        15,171   

Expiring 10/04/13

  UBS AG   KRW 2,358,676,800        2,076,300        2,129,482        53,182   

Swedish Krona

         

Expiring 07/24/13

  Citibank NA   SEK 10,916,880        1,672,300        1,681,189        8,889   

Expiring 07/24/13

  Deutsche Bank AG   SEK 7,284,578        1,098,338        1,121,818        23,480   

Expiring 07/24/13

  Goldman Sachs   SEK 31,551,010        4,814,256        4,858,825        44,569   

Expiring 07/24/13

  Goldman Sachs   SEK 6,612,677        1,014,600        1,018,346        3,746   

Expiring 07/24/13

  Morgan Stanley   SEK 20,330,052        3,079,000        3,130,808        51,808   

Expiring 07/24/13

  Morgan Stanley   SEK 8,827,780        1,341,200        1,359,469        18,269   

Expiring 07/24/13

  UBS AG   SEK 10,909,094        1,668,100        1,679,990        11,890   

Swiss Franc

         

Expiring 07/24/13

  Citibank NA   CHF 3,163,040        3,404,889        3,404,889          

Expiring 07/24/13

  Goldman Sachs   CHF 4,734,262        5,029,600        5,096,249        66,649   

Expiring 07/24/13

  Goldman Sachs   CHF 2,367,811        2,536,400        2,548,856        12,456   

Expiring 07/24/13

  JPMorgan   CHF 7,895,392        8,383,902        8,499,082        115,180   

Expiring 07/24/13

  UBS AG   CHF 6,322,049        6,696,376        6,805,439        109,063   

Taiwan Dollar

         

Expiring 05/20/13

  UBS AG   TWD 304,602,485        10,183,798        10,323,992        140,194   

Expiring 05/20/13

  UBS AG   TWD 49,484,018        1,682,100        1,677,178        (4,922

Expiring 05/20/13

  UBS AG   TWD 40,024,153        1,339,900        1,356,552        16,652   

Expiring 05/20/13

  UBS AG   TWD 39,971,465        1,340,200        1,354,766        14,566   

Expiring 05/20/13

  UBS AG   TWD 39,635,164        1,332,700        1,343,368        10,668   

Expiring 05/20/13

  UBS AG   TWD 29,780,000        1,000,000        1,009,343        9,343   

Expiring 05/20/13

  UBS AG   TWD 29,734,000        1,000,000        1,007,784        7,784   

Expiring 11/13/13

  UBS AG   TWD 43,613,042        1,526,800        1,482,660        (44,140

Expiring 11/13/13

  UBS AG   TWD 43,147,226        1,509,700        1,466,824        (42,876

Expiring 11/13/13

  UBS AG   TWD 10,570,196        369,200        359,342        (9,858

Thai Baht

         

Expiring 05/28/13

  Citibank NA   THB 28,824,467        986,700        980,442        (6,258

Expiring 05/28/13

  HSBC   THB 17,801,578        596,200        605,507        9,307   

Expiring 05/28/13

  JPMorgan   THB 28,102,718        956,200        955,892        (308

Expiring 05/28/13

  Morgan Stanley   THB 38,914,756        1,313,800        1,323,656        9,856   

Expiring 05/28/13

  UBS AG   THB 204,000,373        6,806,592        6,938,915        132,323   

Expiring 05/28/13

  UBS AG   THB 9,820,683        329,000        334,043        5,043   

Turkish Lira

         

Expiring 07/30/13

  Citibank NA   TRY 617,437        340,198        341,197        999   
   

 

 

   

 

 

   

 

 

 
      $ 417,464,402      $ 421,958,081      $ 4,493,679   
   

 

 

   

 

 

   

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     51   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

 

Sales Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Receivable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Australian Dollar

         

Expiring 07/23/13

  Citibank NA   AUD 1,130,800      $ 1,155,324      $ 1,164,936      $ (9,612

Expiring 07/23/13

  Deutsche Bank AG   AUD 1,114,515        1,134,200        1,148,160        (13,960

Expiring 07/23/13

  Goldman Sachs   AUD 984,500        1,006,892        1,014,219        (7,327

Brazilian Real

         

Expiring 07/18/13

  Citibank NA   BRL 13,564,968        6,789,273        6,704,614        84,659   

Expiring 07/18/13

  Citibank NA   BRL 3,749,821        1,839,500        1,853,384        (13,884

British Pound

         

Expiring 07/25/13

  Deutsche Bank AG   GBP 897,604        1,366,000        1,393,586        (27,586

Expiring 07/25/13

  Goldman Sachs   GBP 3,348,900        5,110,445        5,199,375        (88,930

Expiring 07/25/13

  Goldman Sachs   GBP 1,242,400        1,891,523        1,928,903        (37,380

Expiring 07/25/13

  Goldman Sachs   GBP 657,000        1,004,183        1,020,033        (15,850

Expiring 07/25/13

  HSBC   GBP 1,290,000        1,997,015        2,002,805        (5,790

Chilean Peso

         

Expiring 06/11/13

  Citibank NA   CLP 1,173,873,200        2,441,500        2,477,424        (35,924

Expiring 08/16/13

  Citibank NA   CLP 811,935,096        1,672,300        1,698,579        (26,279

Expiring 08/16/13

  Citibank NA   CLP 470,108,030        967,400        983,472        (16,072

Chinese Yuan Renminbi

         

Expiring 06/13/13

  UBS AG   CNY 74,305,397        11,832,258        12,025,602        (193,344

Colombian Peso

         

Expiring 06/07/13

  Citibank NA   COP  14,458,282,945        7,905,021        7,898,228        6,793   

Expiring 06/07/13

  Citibank NA   COP 3,629,941,075        1,976,500        1,982,953        (6,453

Expiring 06/07/13

  Citibank NA   COP 3,082,731,960        1,676,400        1,684,026        (7,626

Czech Koruna

         

Expiring 07/24/13

  Citibank NA   CZK 51,816,879        2,602,000        2,646,811        (44,811

Danish Krone

         

Expiring 07/24/13

  Goldman Sachs   DKK 56,054,009        9,821,374        9,910,805        (89,431

Euro

         

Expiring 07/24/13

  Citibank NA   EUR 2,582,200        3,404,889        3,402,653        2,236   

Expiring 07/24/13

  Citibank NA   EUR 770,800        1,003,990        1,015,710        (11,720

Expiring 07/24/13

  Deutsche Bank AG   EUR 847,000        1,098,338        1,116,121        (17,783

Expiring 07/24/13

  JPMorgan   EUR 6,441,500        8,383,902        8,488,185        (104,283

Expiring 07/24/13

  UBS AG   EUR 5,146,400        6,696,376        6,781,588        (85,212

Expiring 07/25/13

  Goldman Sachs   EUR 2,423,700        3,159,237        3,193,816        (34,579

Expiring 07/25/13

  Goldman Sachs   EUR 2,411,200        3,155,248        3,177,345        (22,097

Expiring 07/25/13

  Goldman Sachs   EUR 1,924,468        2,501,200        2,535,956        (34,756

Expiring 07/25/13

  Goldman Sachs   EUR 1,277,443        1,668,000        1,683,344        (15,344

Expiring 07/25/13

  Goldman Sachs   EUR 962,863        1,253,077        1,268,807        (15,730

Expiring 07/25/13

  Goldman Sachs   EUR 798,000        1,037,182        1,051,560        (14,378

Expiring 07/30/13

  Deutsche Bank AG   EUR 772,000        1,008,778        1,017,337        (8,559

 

See Notes to Financial Statements.

 

52   Visit our website at www.prudentialfunds.com


 

 

 

Sales Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Receivable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Hungarian Forint

         

Expiring 07/23/13

  Goldman Sachs   HUF 382,212,477      $ 1,639,900      $ 1,667,641      $ (27,741

Expiring 07/24/13

  Citibank NA   HUF 391,994,871        1,676,500        1,710,173        (33,673

Expiring 07/24/13

  Deutsche Bank AG   HUF 611,555,375        2,635,400        2,668,059        (32,659

Expiring 07/24/13

  Goldman Sachs   HUF 463,917,886        2,009,700        2,023,955        (14,255

Expiring 07/24/13

  Goldman Sachs   HUF 132,391,158        567,400        577,589        (10,189

Expiring 07/24/13

  UBS AG   HUF 368,292,242        1,599,200        1,606,765        (7,565

Indian Rupee

         

Expiring 03/04/14

  UBS AG   INR 217,437,966        3,742,800        3,824,268        (81,468

Expiring 03/04/14

  UBS AG   INR 131,736,238        2,247,100        2,316,958        (69,858

Expiring 03/04/14

  UBS AG   INR 113,548,100        1,964,500        1,997,068        (32,568

Expiring 03/04/14

  UBS AG   INR 97,169,340        1,668,000        1,709,001        (41,001

Expiring 03/04/14

  UBS AG   INR 74,665,374        1,282,800        1,313,204        (30,404

Indonesian Rupiah

         

Expiring 05/28/13

  UBS AG   IDR 14,573,556,400        1,466,300        1,493,571        (27,271

Expiring 07/03/13

  UBS AG   IDR 32,042,459,500        3,250,732        3,269,484        (18,752

Expiring 07/03/13

  UBS AG   IDR 19,428,905,000        1,964,500        1,982,448        (17,948

Expiring 07/03/13

  UBS AG   IDR 9,992,902,000        1,002,800        1,019,636        (16,836

Israeli New Shekel

         

Expiring 07/24/13

  UBS AG   ILS 2,548,302        699,700        708,866        (9,166

Japanese Yen

         

Expiring 07/24/13

  Deutsche Bank AG   JPY 72,699,086        733,000        746,107        (13,107

Expiring 07/25/13

  Goldman Sachs   JPY 499,769,504        5,033,792        5,129,140        (95,348

Expiring 07/25/13

  Goldman Sachs   JPY 164,724,261        1,691,325        1,690,567        758   

Expiring 07/25/13

  Goldman Sachs   JPY 124,105,827        1,265,615        1,273,699        (8,084

Expiring 07/25/13

  JPMorgan   JPY 328,909,852        3,353,000        3,375,605        (22,605

Malaysian Ringgit

         

Expiring 05/20/13

  Citibank NA   MYR 1,895,972        610,029        622,209        (12,180

Expiring 06/11/13

  HSBC   MYR 7,050,567        2,254,378        2,310,058        (55,680

Expiring 06/11/13

  UBS AG   MYR 7,142,443        2,335,200        2,340,161        (4,961

Expiring 06/11/13

  UBS AG   MYR 6,130,000        2,000,000        2,008,442        (8,442

Expiring 06/11/13

  UBS AG   MYR 4,124,417        1,352,800        1,351,330        1,470   

Expiring 08/07/13

  UBS AG   MYR 21,432,831        6,836,629        6,993,636        (157,007

Mexican Peso

         

Expiring 07/22/13

  JPMorgan   MXN 32,782,066        2,642,200        2,680,761        (38,561

Norwegian Krone

         

Expiring 07/24/13

  Goldman Sachs   NOK 14,412,788        2,428,985        2,491,134        (62,149

Expiring 07/24/13

  Goldman Sachs   NOK 9,624,642        1,639,929        1,663,541        (23,612

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     53   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Sales Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Receivable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Norwegian Krone (cont’d.)

       

Expiring 07/24/13

  Morgan Stanley   NOK 5,682,549      $ 967,400      $ 982,183      $ (14,783

Expiring 07/24/13

  Morgan Stanley   NOK 3,952,238        667,000        683,112        (16,112

Peruvian Nuevo Sol

         

Expiring 08/02/13

  Citibank NA   PEN 6,025,430        2,301,100        2,268,352        32,748   

Expiring 08/02/13

  Citibank NA   PEN 5,816,258        2,232,300        2,189,606        42,694   

Expiring 08/02/13

  Citibank NA   PEN 3,071,198        1,168,200        1,156,193        12,007   

Philippine Peso

         

Expiring 06/18/13

  UBS AG   PHP 38,758,000        937,826        939,619        (1,793

Expiring 06/18/13

  UBS AG   PHP 33,878,760        822,300        821,330        970   

Expiring 06/18/13

  UBS AG   PHP 20,593,097        498,200        499,243        (1,043

Polish Zloty

         

Expiring 07/24/13

  Citibank NA   PLN 9,711,523        3,034,700        3,055,414        (20,714

Expiring 07/24/13

  Citibank NA   PLN 8,378,751        2,603,400        2,636,101        (32,701

Expiring 07/24/13

  Morgan Stanley   PLN 5,263,692        1,639,900        1,656,049        (16,149

Expiring 01/13/14

  Deutsche Bank AG   PLN 1,585,620        502,688        494,471        8,217   

Romanian Leu

         

Expiring 01/13/14

  Citibank NA   RON 1,035,231        308,334        306,791        1,543   

Russian Rouble

         

Expiring 07/18/13

  Citibank NA   RUB 171,626,837        5,479,172        5,437,601        41,571   

Expiring 07/18/13

  Citibank NA   RUB 68,679,550        2,179,300        2,175,954        3,346   

Expiring 07/18/13

  Citibank NA   RUB 47,972,752        1,507,700        1,519,906        (12,206

Singapore Dollar

         

Expiring 07/23/13

  JPMorgan   SGD 4,149,872        3,337,600        3,369,414        (31,814

Expiring 07/23/13

  UBS AG   SGD 2,795,397        2,253,734        2,269,673        (15,939

South African Rand

         

Expiring 07/30/13

  Barclays Capital PLC   ZAR 7,035,909        751,494        774,208        (22,714

Expiring 07/30/13

  UBS AG   ZAR 15,199,219        1,630,293        1,672,471        (42,178

Expiring 07/30/13

  UBS AG   ZAR 3,413,345        369,925        375,593        (5,668

South Korean Won

         

Expiring 10/04/13

  UBS AG   KRW  1,148,101,900        996,400        1,036,540        (40,140

Expiring 10/04/13

  UBS AG   KRW 1,126,925,600        986,800        1,017,421        (30,621

Expiring 10/04/13

  UBS AG   KRW 963,212,000        852,400        869,616        (17,216

Swedish Krona

         

Expiring 07/24/13

  Goldman Sachs   SEK 16,677,040        2,543,861        2,568,248        (24,387

Expiring 07/24/13

  Morgan Stanley   SEK 15,281,223        2,301,100        2,353,293        (52,193

Expiring 07/24/13

  Morgan Stanley   SEK 9,064,638        1,372,200        1,395,945        (23,745

Swiss Franc

         

Expiring 05/16/13

  Barclays Capital   CHF 520,625        580,161        560,006        20,155   

Expiring 07/24/13

  Deutsche Bank AG   CHF 3,135,430        3,324,726        3,375,168        (50,442

 

See Notes to Financial Statements.

 

54   Visit our website at www.prudentialfunds.com


 

 

 

Sales Contracts

 

Counterparty

  Notional
Amount
    Value at
Settlement
Date
Receivable
    Value at
April 30,
2013
    Unrealized
Appreciation/
(Depreciation)
 

Swiss Franc (cont’d.)

       

Expiring 07/24/13

  Deutsche Bank AG   CHF 1,579,684      $ 1,668,800      $ 1,700,469      $ (31,669

Expiring 07/24/13

  Goldman Sachs   CHF 10,118,003        10,826,292        10,891,637        (65,345

Expiring 07/24/13

  Goldman Sachs   CHF 2,565,858        2,753,758        2,762,046        (8,288

Expiring 07/24/13

  Goldman Sachs   CHF 1,311,933        1,391,907        1,412,245        (20,338

Expiring 07/24/13

  Goldman Sachs   CHF 772,000        828,821        831,028        (2,207

Expiring 07/24/13

  UBS AG   CHF 1,261,840        1,334,579        1,358,322        (23,743

Expiring 07/24/13

  UBS AG   CHF 965,039        1,034,001        1,038,827        (4,826

Expiring 07/24/13

  UBS AG   CHF 294,760        314,620        317,298        (2,678

Taiwan Dollar

         

Expiring 08/19/13

  Citibank NA   TWD 87,835,068        2,960,400        2,981,217        (20,817

Expiring 08/19/13

  UBS AG   TWD 97,612,945        3,289,400        3,313,089        (23,689

Expiring 08/19/13

  UBS AG   TWD 59,576,662        2,011,400        2,022,097        (10,697

Expiring 08/19/13

  UBS AG   TWD 50,259,690        1,677,000        1,705,868        (28,868

Expiring 08/19/13

  UBS AG   TWD  29,906,448        996,400        1,015,057        (18,657

Expiring 08/19/13

  UBS AG   TWD 29,794,614        1,004,200        1,011,262        (7,062

Expiring 08/19/13

  UBS AG   TWD 28,492,993        953,900        967,083        (13,183

Expiring 11/13/13

  UBS AG   TWD 97,330,464        3,351,600        3,308,826        42,774   

Thai Baht

         

Expiring 05/28/13

  Citibank NA   THB 96,361,936        3,334,900        3,277,677        57,223   

Expiring 05/28/13

  JPMorgan   THB 96,814,686        3,313,200        3,293,077        20,123   

Expiring 05/28/13

  JPMorgan   THB 66,752,455        2,303,000        2,270,533        32,467   

Expiring 05/28/13

  UBS AG   THB 62,785,740        2,133,900        2,135,609        (1,709

Expiring 05/28/13

  UBS AG   THB 39,739,988        1,352,800        1,351,725        1,075   

Turkish Lira

         

Expiring 07/30/13

  JPMorgan   TRY 1,790,477        981,759        989,421        (7,662
     

 

 

   

 

 

   

 

 

 
      $ 260,120,390      $ 262,449,347        (2,328,957
     

 

 

   

 

 

   

 

 

 
          $ 2,164,722   
         

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     55   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

 

Credit default swap agreements outstanding at April 30, 2013:

 

Reference
Entity/
Obligation

  Termination
Date
    Fixed
Rate
    Notional
Amount
(000)#(4)
    Fair
Value
    Upfront
Premiums
Paid
(Received)
    Unrealized
Appreciation
(Depreciation)
   

Counterparty

Over-the-counter credit default swaps on corporate issues—Buy Protection(1):

American International Group, Inc.

    03/20/18        3.700%        250      $ (32,217   $      $ (32,217  

Deutsche Bank AG

Duke Energy Corp.

    03/20/14        0.700%        350        (2,415            (2,415  

Goldman Sachs International

Masco Corp.

    09/20/13        1.000%        260        (1,173     956        (2,129  

Deutsche Bank AG

R.R. Donnelley & Sons Co.

    06/20/14        1.000%        600        (5,487     10,994        (16,481  

Deutsche Bank AG

R.R. Donnelley & Sons Co.

    09/20/16        1.000%        450        20,838        27,126        (6,288  

JPMorgan Chase Bank

SLM Corp.

    06/20/14        5.000%        510        (29,087     22,630        (51,717  

JPMorgan Chase Bank

Toll Brothers Finance Corp.

    03/20/15        1.000%        420        (4,821     926        (5,747  

Credit Suisse International

Westvaco Corp.

    09/20/19        1.000%        450        15,769        5,658        10,111     

JPMorgan Chase Bank

       

 

 

   

 

 

   

 

 

   
        $ (38,593   $ 68,290      $ (106,883  
       

 

 

   

 

 

   

 

 

   

 

Reference
Entity/
Obligation

  Termination
Date
    Fixed
Rate
    Notional
Amount
(000)#(4)
    Fair
Value
    Upfront
Premiums
Paid
(Received)
    Unrealized
Depreciation
   

Counterparty

Over-the-counter credit default swaps on credit indices—Buy Protection(1):

CDX.NA.IG.19

    12/20/17        1.000%        5,000      $ (83,083   $ (23,488   $ (59,595  

Citibank NA

       

 

 

   

 

 

   

 

 

   

Reference
Entity/
Obligation

  Termination
Date
    Fixed
Rate
    Notional
Amount
(000)#(4)
    Fair
Value
    Upfront
Premiums
Paid
(Received)
    Unrealized
Depreciation
   

Counterparty

Over-the-counter credit default swaps on sovereign issues—Buy Protection(1):

Kingdom of Belgium

    03/20/14        1.000%        3,000      $ (27,844   $ (22,723   $ (5,121  

JPMorgan Chase Bank

Republic of France

    03/20/14        0.250%        3,000        (4,514     (1,811     (2,703  

JPMorgan Chase Bank

Republic of Ireland

    12/20/13        1.000%        1,300        (7,235     (4,158     (3,077  

HSBC Bank USA NA

 

See Notes to Financial Statements.

 

56   Visit our website at www.prudentialfunds.com


 

 

 

Reference
Entity/
Obligation

  Termination
Date
    Fixed
Rate
    Notional
Amount
(000)#(4)
    Fair
Value
    Upfront
Premiums
Paid
(Received)
    Unrealized
Depreciation
   

Counterparty

Over-the-counter credit default swaps on sovereign issues—Buy Protection(1) (cont’d.):

Republic of Italy

    12/20/13        1.000%        6,000      $ (17,295   $ 13,693      $ (30,988  

HSBC Bank USA NA

       

 

 

   

 

 

   

 

 

   
        $ (56,888   $ (14,999   $ (41,889  
       

 

 

   

 

 

   

 

 

   

 

Reference
Entity/
Obligation

  Termination
Date
    Fixed
Rate
    Notional
Amount
(000)#(4)
    Implied
Credit
Spread
at
April 30,
2013(3)
    Fair
Value
    Upfront
Premiums
Paid
(Received)
   

Unrealized
Appreciation

 

Counterparty

Over-the-counter credit default swaps on sovereign issues—Sell Protection(2):

Kingdom of Netherlands

    06/20/16        0.250%        2,000        0.359   $ (6,262   $ (58,845  

$52,583

 

HSBC Bank USA NA

Kingdom of Netherlands

    06/20/17        0.250%        2,000        0.469     (17,429     (92,165  

74,736

 

Barclays Bank PLC

Republic of Belgium

    09/20/15        1.000%        1,300        0.238     25,313        (41,964  

67,277

 

HSBC Bank USA NA

Republic of Belgium

    03/20/20        1.000%        3,000        0.954     12,604        (14,500  

27,104

 

JPMorgan Chase Bank

Republic of Brazil

    03/20/18        1.000%        1,500        1.056     (2,232     (17,514  

15,282

 

Deutsche Bank AG

Republic of France

    03/20/14        0.250%        5,000        0.115     7,522        (66,080  

73,602

 

Citibank NA

Republic of France

    06/20/15        0.250%        5,000        0.235     3,069        (176,316  

179,385

 

Barclays Bank PLC

Republic of France

    06/20/16        0.250%        2,700        0.414     (13,145     (156,882  

143,737

 

Barclays Bank PLC

Republic of France

    12/20/16        0.250%        4,500        0.510     (41,173     (353,862  

312,689

 

Citibank NA

Republic of France

    12/20/16        1.000%        1,000        0.510     (8,275     (31,892  

23,617

 

UBS AG

Republic of France

    06/20/17        0.250%        2,500        0.582     (33,356     (194,311  

160,955

 

Barclays Bank PLC

Republic of France

    03/20/20        0.250%        3,000        1.020     (149,979     (188,678  

38,699

 

JPMorgan Chase Bank

Republic of France

    03/20/22        0.250%        1,250        1.193     (94,713     (167,253  

72,540

 

Morgan Stanley Capital Services

Republic of France

    09/20/22        0.250%        3,000        1.224     (245,264     (290,349  

45,085

 

HSBC Bank USA NA

Republic of Germany

    06/20/17        0.250%        2,000        0.271     (1,162     (76,601  

75,439

 

Barclays Bank PLC

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     57   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Reference
Entity/
Obligation

  Termination
Date
    Fixed
Rate
    Notional
Amount
(000)#(4)
    Implied
Credit
Spread
at
April 30,
2013(3)
    Fair
Value
    Upfront
Premiums
Paid
(Received)
   

Unrealized
Appreciation

 

Counterparty

Over-the-counter credit default swaps on sovereign issues—Sell Protection(2): (cont’d.):

Republic of Ireland

    12/20/14        1.000%        2,000        0.691   $ 12,482      $ (399,762  

$412,244

 

HSBC Bank USA NA

Republic of Ireland

    06/20/18        1.000%        2,000        1.588     (55,008     (81,678  

26,670

 

HSBC Bank USA NA

Republic of Italy

    12/20/16        1.000%        2,000        2.122     (75,750     (293,423  

217,673

 

UBS AG

Republic of Portugal

    12/20/13        1.000%        1,000        1.169     75        (220,692  

220,767

 

HSBC Bank USA NA

Republic of Portugal

    03/20/14        1.000%        400        1.384     (900     (123,989  

123,089

 

Morgan Stanley Capital Services

Republic of Portugal

    12/20/14        1.000%        1,500        1.984     (22,184     (412,058  

389,874

 

Barclays Bank PLC

         

 

 

   

 

 

   

 

 
          $ (705,767   $ (3,458,814  

$2,753,047

 
         

 

 

   

 

 

   

 

 

 

Reference
Entity/
Obligation

  Termination
Date
    Fixed
Rate
    Notional
Amount
(000)#(4)
    Implied
Credit
Spread
at
April 30,
2013(3)
    Fair
Value
    Upfront
Premiums
Paid
(Received)
    Unrealized
Appreciation
   

Counterparty

Over-the-counter credit default swaps on corporate issues—Sell Protection(2):

Hewlett-Packard Co.

    12/20/17        1.000%        800        1.577   $ (19,762   $ (81,584   $ 61,822     

Credit Suisse International

         

 

 

   

 

 

   

 

 

   

 

Reference
Entity/
Obligation

  Termination
Date
    Fixed
Rate
    Notional
Amount
(000)#(4)
    Fair
Value(5)
    Upfront
Premiums
Paid
(Received)
    Unrealized
Appreciation
   

Counterparty

Over-the-counter credit default swaps on credit indices—Sell Protection(2):

CDX.NA.HY.17

    12/20/16        5.000%        4,800      $ 417,351      $ 209,028      $ 208,323     

Deutsche Bank AG

CDX.NA.HY.19

    12/20/17        5.000%        2,000        155,662        (23,264     178,926     

Citibank NA

       

 

 

   

 

 

   

 

 

   
        $ 573,013      $ 185,764        $387,249     
       

 

 

   

 

 

   

 

 

   

 

See Notes to Financial Statements.

 

58   Visit our website at www.prudentialfunds.com


 

 

 

 

The Fund entered into credit default swaps as the protection seller on corporate issues, credit indices and sovereign issues to take an active short position with respect to the likelihood of a particular issuer’s default or the referenced entity’s credit soundness.

(1) If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(2) If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index.
(3) Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of the reporting date serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
(4) Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement.
(5) The fair value of credit default swap agreements on credit indices serves as an indicator of the current status of the payment/performance risk and represents the likelihood of an expected liability (or profit) for the credit derivative should the notional amount of the swap agreement be closed/sold as of the reporting date. Increasing fair value in absolute terms represents a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
# Notional amount is shown in U.S. dollars unless otherwise stated.

 

Forward rate agreement outstanding at April 30, 2013:

 

Notional
Amount
(000)#

    Termination
Date
    Fixed
Rate
   

Floating Rate

  Fair
Value
    Upfront
Premiums
Paid
(Received)
    Unrealized
Appreciation
   

Counterparty

 

Over-the-counter forward rate agreement:

CHF  75,000        12/25/13        (0.030)%     

3 Month Swiss Franc LIBOR Rate(1)

  $ 23,866      $      $ 23,866     

Barclays Bank PLC

       

 

 

   

 

 

   

 

 

   

 

(1) The Fund pays the fixed rate and receives the floating rate.
# Notional amount is shown in U.S. dollars unless otherwise stated.

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     59   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

 

Interest rate swap agreements outstanding at April 30, 2013:

 

Notional
Amount
(000)#

    Termination
Date
    Fixed
Rate
   

Floating
Rate

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

Counterparty

 

Over-the-counter swap agreements:

  5,000        07/12/14        0.518%      3 Month LIBOR(2)   $ 20,164      $      $ 20,164     

Bank of Nova Scotia

  49,000        12/31/14        0.170%      1 Day Federal Funds Rate OIS(2)     23,925               23,925     

Barclays Bank PLC

  9,600        03/08/15        0.383%      3 Month LIBOR(2)     10,340               10,340     

Deutsche Bank AG

  4,900        01/25/16        0.496%      3 Month LIBOR(1)     (17,058            (17,058  

Deutsche Bank AG

  9,625        08/31/16        0.934%      3 Month LIBOR(2)     147,227               147,227     

Credit Suisse International

  2,995        08/31/16        0.975%      3 Month LIBOR(1)     (50,070            (50,070  

JPMorgan Chase Bank NA

  2,995        08/31/16        0.978%      3 Month LIBOR(1)     (50,435            (50,435  

JPMorgan Chase Bank NA

  11,150        11/30/16        0.913%      3 Month LIBOR(1)     (182,152            (182,152  

JPMorgan Chase Bank NA

  3,100        02/24/17        1.192%      3 Month LIBOR(1)     (75,746            (75,746  

Citibank NA

  8,300        08/31/17        0.872%      3 Month LIBOR(1)     (55,874            (55,874  

Deutsche Bank AG

  7,900        08/31/17        0.783%      3 Month LIBOR(1)     (24,406            (24,406  

Morgan Stanley Capital Services

  7,900        08/31/17        0.751%      3 Month LIBOR(1)     (13,878            (13,878  

Morgan Stanley Capital Services

  3,515        08/31/17        0.751%      3 Month LIBOR(1)     (6,220            (6,220  

Bank of Nova Scotia

  2,100        01/08/18        0.935%      3 Month LIBOR(2)     21,907               21,907     

Bank of America NA

  3,230        11/15/19        1.443%      3 Month LIBOR(2)     54,630               54,630     

Morgan Stanley Capital Services

  4,850        02/15/20        1.355%      3 Month LIBOR(2)     24,067               24,067     

Morgan Stanley Capital Services

  3,230        02/15/20        1.505%      3 Month LIBOR(1)     (47,235            (47,235  

Morgan Stanley Capital Services

  1,100        08/24/22        1.875%      3 Month LIBOR(2)     17,026               17,026     

HSBC Bank USA NA

  3,935        08/15/39        2.949%      3 Month LIBOR(2)     129,577               129,577     

Barclays Bank PLC

  3,935        08/15/39        3.011%      3 Month LIBOR(1)     (176,578            (176,578  

Barclays Bank PLC

  2,615        08/15/39        2.757%      3 Month LIBOR(2)     (10,639            (10,639  

Deutsche Bank AG

  720        02/24/42        2.864%      3 Month LIBOR(2)     14,503               14,503     

Citibank NA

AED  35,000        03/09/15        1.020%     

3 Month EIBOR(1)

    (1,932            (1,932  

Deutsche Bank AG

AUD  1,000        09/07/21        4.945%     

6 Month BBSW(2)

    100,240               100,240     

Citibank NA

AUD  1,400        08/31/22        3.920%     

6 Month BBSW(2)

    24,119               24,119     

Citibank NA

AUD  1,000        08/31/22        3.890%     

6 Month BBSW(2)

    14,739               14,739     

HSBC Bank USA NA

AUD  1,700        09/21/22        3.830%     

6 Month BBSW(2)

    13,143               13,143     

Barclays Bank PLC

 

See Notes to Financial Statements.

 

60   Visit our website at www.prudentialfunds.com


 

 

 

Notional
Amount
(000)#

    Termination
Date
    Fixed
Rate
   

Floating
Rate

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

Counterparty

 

Over-the-counter swap agreements (cont’d.):

AUD  400        11/07/22        3.790%      6 Month BBSW(2)   $ 2,861      $      $ 2,861     

HSBC Bank USA NA

AUD  2,000        12/19/32        4.423%      6 Month BBSW(2)     68,297               68,297     

Barclays Bank PLC

AUD  1,000        12/24/32        4.260%      6 Month BBSW(2)     10,816               10,816     

UBS AG

AUD  650        03/15/43        4.755%      6 Month BBSW(2)     59,300               59,300     

HSBC Bank USA NA

BRL  7,217        01/01/17        0.000%      1 Day BZDIOVER(2)     (13,454            (13,454  

Barclays Bank PLC

BRL  5,758        01/01/17        0.000%      1 Day BZDIOVER(2)     36,991               36,991     

Morgan Stanley Capital Services

BRL  5,610        01/01/17        0.000%      1 Day BZDIOVER(2)     91,500               91,500     

Barclays Bank PLC

BRL  937        01/01/21        0.000%      1 Day BZDIOVER(2)     15,872               15,872     

Morgan Stanley Capital Services

BRL  880        01/01/21        0.000%      1 Day BZDIOVER(2)     38,686               38,686     

HSBC Bank USA NA

BRL  880        01/01/21        0.000%      1 Day BZDIOVER(2)     38,686               38,686     

Barclays Bank PLC

BRL  445        01/01/21        0.000%      1 Day BZDIOVER(2)     18,647               18,647     

UBS AG

CAD  3,200        02/22/17        1.708%      3 Month Canadian Banker’s Acceptance(2)     34,368               34,368     

Citibank NA

CAD  2,100        02/27/17        1.625%      3 Month Canadian Banker’s Acceptance(2)     15,639               15,639     

Credit Suisse International

CAD  650        11/06/17        1.645%      3 Month Canadian Banker’s Acceptance(2)     4,738               4,738     

Bank of Nova Scotia

CAD  500        12/27/17        1.700%      3 Month Canadian Banker’s Acceptance(2)     4,433               4,433     

Bank of Nova Scotia

CAD  5,400        08/17/22        2.370%      3 Month Canadian Banker’s Acceptance(2)     150,746               150,746     

Bank of Nova Scotia

CAD  350        11/06/22        2.203%      3 Month Canadian Banker’s Acceptance(2)     4,946               4,946     

Bank of Nova Scotia

CAD  700        02/22/42        2.865%      3 Month Canadian Banker’s Acceptance(1)     (32,669            (32,669  

Citibank NA

CHF  3,500        07/20/14        (0.088)%      3 Month Swiss Franc LIBOR Rate(1)     10,038               10,038     

Credit Suisse International

CHF  1,000        03/01/22        1.030%      6 Month Swiss Franc LIBOR Rate(2)     14,863               14,863     

Credit Suisse International

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     61   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Notional
Amount
(000)#

    Termination
Date
    Fixed
Rate
   

Floating
Rate

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

Counterparty

 

Over-the-counter swap agreements (cont’d.):

COP  6,500,000        04/25/16        3.710%      1 Day COLIBOR OIS(2)   $ (8,386   $      $ (8,386  

BNP Paribas

DKK  31,000        01/25/16        0.910%      6 Month CIBOR(2)     43,308               43,308     

Deutsche Bank AG

DKK  3,200        03/01/22        2.300%      6 Month CIBOR(2)     42,100               42,100     

Credit Suisse International

EUR  3,000        07/20/14        0.406%      3 Month EURIBOR(2)     21,794               21,794     

Credit Suisse International

EUR  3,000        08/19/14        1.065%      1 Day EUR EONIA OIS(2)     78,631               78,631     

HSBC Bank USA NA

EUR  10,000        12/10/14        0.035%      1 Day EUR EONIA OIS(1)     14,192               14,192     

HSBC Bank USA NA

EUR  1,300        08/04/16        1.925%      1 Day EUR EONIA OIS(2)     120,041               120,041     

HSBC Bank USA NA

EUR  1,000        08/29/16        1.600%      1 Day EUR EONIA OIS(2)     74,679               74,679     

HSBC Bank USA NA

EUR  500        08/30/16        1.560%      1 Day EUR EONIA OIS(2)     36,264               36,264     

HSBC Bank USA NA

EUR  500        11/04/16        1.310%      1 Day EUR EONIA OIS(2)     28,905               28,905     

HSBC Bank USA NA

EUR  500        11/07/16        1.265%      6 Month EURIBOR(2)     27,212               27,212     

HSBC Bank USA NA

EUR  1,000        12/16/16        1.210%      1 Day EUR EONIA OIS(2)     51,543               51,543     

HSBC Bank USA NA

EUR  5,500        12/10/17        0.452%      1 Day EUR EONIA OIS(2)     30,029               30,029     

HSBC Bank USA NA

EUR  1,200        01/14/18        0.628%      1 Day EUR EONIA OIS(2)     18,951               18,951     

HSBC Bank USA NA

EUR  1,800        07/27/22        1.772%      6 Month EURIBOR(2)     112,651               112,651     

Citibank NA

EUR  1,709        07/23/42        2.246%      6 Month EURIBOR(1)     22,385               22,385     

Royal Bank of Scotland

EUR  650        09/24/42        2.404%      6 Month EURIBOR(2)     62,629               62,629     

Citibank NA

EUR  850        03/27/43        2.327%      6 Month EURIBOR(2)     47,503               47,503     

Bank of America NA

EUR  1,871        07/23/52        2.708%      6 Month EURIBOR(2)     15,307               15,307     

Royal Bank of Scotland

GBP  500        08/01/16        2.060%      6 Month GBP LIBOR(2)     37,367               37,367     

Citibank NA

GBP  1,200        08/09/16        1.894%      6 Month GBP LIBOR(2)     78,799               78,799     

HSBC Bank USA NA

GBP  2,000        08/17/22        1.975%      3 Month GBP LIBOR(2)     108,389               108,389     

HSBC Bank USA NA

GBP  400        09/27/22        1.790%      3 Month GBP LIBOR(2)     9,353               9,353     

HSBC Bank USA NA

GBP  500        01/03/23        1.895%      3 Month GBP LIBOR(2)     16,221               16,221     

HSBC Bank USA NA

GBP  2,600        01/13/32        2.788%      6 Month GBP LIBOR(2)     114,772               114,772     

Barclays Bank PLC

GBP  1,700        04/24/43        2.932%      6 Month GBP LIBOR(2)     (6,518            (6,518  

HSBC Bank USA NA

HKD  27,000        01/04/18        0.805%      3 Month HIBOR(1)     (15,119            (15,119  

Bank of America NA

 

See Notes to Financial Statements.

 

62   Visit our website at www.prudentialfunds.com


 

 

 

Notional
Amount
(000)#

    Termination
Date
    Fixed
Rate
   

Floating
Rate

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

Counterparty

 

Over-the-counter swap agreements (cont’d.):

HKD  8,200        08/22/22        1.560%      3 Month HIBOR(1)   $ (11,321   $      $ (11,321  

HSBC Bank USA NA

HUF  330,000        03/27/23        5.510%      6 Month BUBOR(2)     119,204               119,204     

Deutsche Bank AG

ILS  25,000        03/16/14        1.580%      3 Month TELBOR(1)     483               483     

Deutsche Bank AG

ILS  3,200        03/06/23        3.525%      3 Month TELBOR(2)     29,601               29,601     

Deutsche Bank AG

INR  55,000        03/11/14        7.600%      1 Day MIBOR(1)     (1,399            (1,399  

HSBC Bank USA NA

INR  55,000        03/11/23        7.470%      1 Day MIBOR(2)     34,617               34,617     

HSBC Bank USA NA

JPY  1,200,000        04/18/18        0.418%      6 Month Yen LIBOR(2)     12,765               12,765     

HSBC Bank USA NA

JPY  165,000        06/13/18        0.778%      6 Month Yen LIBOR(2)     36,179               36,179     

Barclays Bank PLC

JPY  165,000        08/24/18        0.463%      6 Month Yen LIBOR(2)     5,007               5,007     

Credit Suisse International

JPY  550,000        04/18/20        0.563%      6 Month Yen LIBOR(2)     15,986               15,986     

JPMorgan Chase Bank NA

JPY  260,000        04/19/20        0.528%      6 Month Yen LIBOR(2)     851               851     

Credit Suisse International

JPY  186,905        05/17/20        1.388%      6 Month Yen LIBOR(2)     127,444               127,444     

Citibank NA

JPY  90,000        12/20/20        1.353%      6 Month Yen LIBOR(2)     59,475               59,475     

Citibank NA

JPY  60,000        02/02/21        1.265%      6 Month Yen LIBOR(2)     34,585               34,585     

Barclays Bank PLC

JPY  96,000        02/16/21        1.365%      6 Month Yen LIBOR(2)     63,078               63,078     

Barclays Bank PLC

JPY  50,000        06/02/21        1.200%      6 Month Yen LIBOR(2)     26,922               26,922     

Barclays Bank PLC

JPY  45,000        06/16/21        1.170%      6 Month Yen LIBOR(2)     22,867               22,867     

Barclays Bank PLC

JPY  40,000        06/28/21        1.123%      6 Month Yen LIBOR(2)     18,497               18,497     

Barclays Bank PLC

JPY  40,000        07/11/21        1.193%      6 Month Yen LIBOR(2)     20,818               20,818     

UBS AG

JPY  30,000        07/22/21        1.090%      6 Month Yen LIBOR(2)     12,800               12,800     

Citibank NA

JPY  50,000        10/04/21        1.013%      6 Month Yen LIBOR(2)     20,890               20,890     

Royal Bank of Scotland

JPY  40,000        11/14/21        0.975%      6 Month Yen LIBOR(2)     13,108               13,108     

Credit Suisse International

JPY  220,000        07/26/22        0.745%      6 Montn Yen LIBOR(2)     11,676               11,676     

Barclays Bank PLC

JPY  55,000        11/20/22        0.748%      6 Month Yen LIBOR(2)     2,213               2,213     

Barclays Bank PLC

JPY  120,000        12/27/22        0.803%      6 Month Yen LIBOR(2)     11,404               11,404     

Barclays Bank PLC

JPY  175,000        03/15/23        0.755%      6 Month Yen LIBOR(2)     1,309               1,309     

Barclays Bank PLC

JPY  145,000        04/15/23        0.750%      6 Month Yen LIBOR(2)     (1,280            (1,280  

Credit Suisse International

JPY  85,500        07/21/24        1.489%      6 Month Yen LIBOR(2)     64,996               64,996     

Citibank NA

JPY  60,000        07/04/26        1.603%      6 Month Yen LIBOR(2)     48,315               48,315     

Citibank NA

JPY  70,000        08/02/26        1.534%      6 Month Yen LIBOR(2)     48,406               48,406     

Citibank NA

JPY  300,000        09/03/27        1.290%      6 Month Yen LIBOR(2)     66,156               66,156     

Citibank NA

JPY  35,000        10/02/27        1.238%      6 Month Yen LIBOR(2)     4,341               4,341     

Barclays Bank PLC

JPY  55,000        11/05/27        1.270%      6 Month Yen LIBOR(2)     11,179               11,179     

Barclays Bank PLC

JPY  40,000        12/04/27        1.261%      6 Month Yen LIBOR(2)     6,830               6,830     

Citibank NA

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     63   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Notional
Amount
(000)#

    Termination
Date
    Fixed
Rate
   

Floating
Rate

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

Counterparty

 

Over-the-counter swap agreements (cont’d.):

JPY  40,000        12/14/27        1.235%      6 Month Yen LIBOR(2)   $ 4,988      $      $ 4,988     

HSBC Bank USA NA

JPY  120,000        02/20/28        1.353%      6 Month Yen LIBOR(2)     32,083               32,083     

Deutsche Bank AG

JPY  200,000        04/16/28        1.235%      6 Month Yen LIBOR(2)     10,549               10,549     

Credit Suisse International

JPY  110,000        08/18/31        1.750%      6 Month Yen LIBOR(2)     63,628               63,628     

Barclays Bank PLC

JPY  25,000        08/30/31        1.750%      6 Month Yen LIBOR(2)     14,311               14,311     

Barclays Bank PLC

JPY  240,000        01/18/32        1.638%      6 Month Yen LIBOR(2)     81,180               81,180     

Barclays Bank PLC

JPY  80,000        09/24/32        1.561%      6 Month Yen LIBOR(1)     (11,707            (11,707  

Citibank NA

JPY  30,000        11/05/32        1.563%      6 Month Yen LIBOR(2)     4,352               4,352     

Barclays Bank PLC

JPY  160,000        11/14/32        2.390%      6 Month Yen LIBOR(2)     6,590               6,590     

Citibank NA

JPY  35,000        12/14/32        1.575%      6 Month Yen LIBOR(2)     6,621               6,621     

HSBC Bank USA NA

JPY  40,000        07/09/42        1.705%      6 Month Yen LIBOR(2)     1,861               1,861     

Barclays Bank PLC

JPY  20,000        10/02/42        1.659%      6 Month Yen LIBOR(2)     (5,087            (5,087  

Barclays Bank PLC

JPY  70,000        01/28/43        1.955%      6 Month Yen LIBOR(2)     40,319               40,319     

JPMorgan Chase Bank NA

MXN  40,500        07/05/13        5.480%      28 Day Mexican Interbank Rate(2)     9,926               9,926     

Barclays Bank PLC

MXN  45,000        12/02/15        5.090%      28 Day Mexican Interbank Rate(2)     79,611               79,611     

Deutsche Bank AG

MXN  17,100        02/18/22        6.600%      28 Day Mexican Interbank Rate(2)     160,415               160,415     

Barclays Bank PLC

MXN  31,100        05/25/22        6.370%      28 Day Mexican Interbank Rate(2)     260,414               260,414     

Morgan Stanley Capital Services

MXN  6,000        10/26/22        5.940%      28 Day Mexican Interbank Rate(2)     32,991               32,991     

Barclays Bank PLC

MXN  16,000        11/23/22        5.795%      28 Day Mexican Interbank Rate(1)     (72,147            (72,147  

Deutsche Bank AG

MXN  25,000        12/23/22        5.900%      28 Day Mexican Interbank Rate(1)     (130,042            (130,042  

Royal Bank of Scotland

MXN  17,500        04/09/42        7.890%      28 Day Mexican Interbank Rate(2)     348,209               348,209     

Barclays Bank PLC

NOK  47,000        11/07/14        2.170%      6 Month NIBOR(1)     (40,507            (40,507  

Citibank NA

NOK  13,500        11/07/17        2.550%      6 Month NIBOR(2)     43,327               43,327     

Citibank NA

NOK  4,500        11/07/22        3.190%      6 Month NIBOR(2)     24,644               24,644     

Citibank NA

NZD  3,200        08/18/16        4.173%      3 Month BBR(2)     107,366               107,366     

Citibank NA

NZD  1,480        03/26/17        3.810%      3 Month BBR(2)     34,189               34,189     

HSBC Bank USA NA

NZD  1,320        09/25/22        3.790%      3 Month BBR(2)     3,777               3,777     

Citibank NA

PLN  4,900        06/27/21        5.390%      6 Month WIBOR(2)     322,068               322,068     

UBS AG

PLN  5,700        04/12/22        5.030%      6 Month WIBOR(2)     288,591               288,591     

HSBC Bank USA NA

PLN  4,000        03/14/23        3.810%      6 Month WIBOR(2)     80,525               80,525     

Bank of America NA

 

See Notes to Financial Statements.

 

64   Visit our website at www.prudentialfunds.com


 

 

 

Notional
Amount
(000)#

    Termination
Date
    Fixed
Rate
   

Floating
Rate

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

Counterparty

 

Over-the-counter swap agreements (cont’d.):

PLN  4,100        03/18/23        3.660%      6 Month WIBOR(2)   $ 65,341      $      $ 65,341     

HSBC Bank USA NA

PLN  3,600        06/27/26        5.280%      6 Month WIBOR(1)     (315,568            (315,568  

UBS AG

PLN  4,100        04/12/27        4.810%      6 Month WIBOR(1)     (266,741            (266,741  

HSBC Bank USA NA

PLN  3,500        03/18/43        3.380%      6 Month WIBOR(1)     (161,880            (161,880  

HSBC Bank USA NA

RUB  70,000        04/10/23        7.470%      3 Month MOSPRIME(2)     12,671               12,671     

Deutsche Bank AG

SEK  3,700        02/27/22        2.520%      3 Month STIBOR(2)     26,412               26,412     

Citibank NA

SEK  3,000        01/16/23        2.200%      3 Month STIBOR(2)     9,079               9,079     

Barclays Bank PLC

SGD  1,800        01/08/18        0.935%      6 Month SOR(2)     15,235               15,235     

Bank of America NA

THB  50,000        12/20/17        3.230%      6 Month BIBOR(2)     26,066               26,066     

Bank of America NA

TWD  40,000        12/24/22        1.390%      3 Month Taiwan Secondary Market CP Bank Rate(1)     (11,593            (11,593  

HSBC Bank USA NA

ZAR  180,000        10/08/13        4.960%      3 Month JIBAR(1)     32,451               32,451     

Barclays Bank PLC

ZAR  12,000        04/15/43        7.200%      3 Month JIBAR(1)     (76,196            (76,196  

HSBC Bank USA NA

       

 

 

   

 

 

   

 

 

   
        $ 3,758,014      $      $ 3,758,014     
       

 

 

   

 

 

   

 

 

   

 

(1) Fund pays the fixed rate and receives the floating rate.
(2) Fund pays the floating rate and receives the fixed rate.
# Notional amount is shown in U.S. dollars unless otherwise stated.

 

Currency swap agreements outstanding at April 30, 2013:

 

Notional
Amount
(000)#

    Fund
Receives
    Notional
Amount
(000)#
   

Fund
Pays

  Counterparty   Termination
Date
    Fair
Value
    Upfront
Premiums
Paid
(Received)
    Unrealized
Appreciation
(Depreciation)
 

 

Over-the-counter swap agreements:

  

  1,688        3 Month LIBOR      EUR 1,300      3 Month EURIBOR minus 30.50 bps   Barclays Bank
PLC
    12/04/14      $ (20,919   $      $ (20,919
  326        3 Month LIBOR      EUR 250      3 Month EURIBOR
minus 31.70 bps
  Barclays Bank
PLC
    12/14/15        (2,567            (2,567
  777        3 Month LIBOR      EUR 550     

5.250%

  Citibank NA     05/16/13        17,460               17,460   
  649        3 Month LIBOR      EUR 500     

5.375%

  Citibank NA     06/10/13        (40,797     (23,855     (16,942
  1,035        3 Month LIBOR      EUR 750     

6.500%

  Citibank NA     02/10/14        15,564        (56,251     71,815   
  1,986        3 Month LIBOR      EUR 1,500     

6.750%

  Citibank NA     07/28/14        (137,564     (56,992     (80,572
  1,364        3 Month LIBOR      EUR 1,000     

7.500%

  Citibank NA     10/14/14        (99,307     (156,521     57,214   
  1,333        3 Month LIBOR      EUR 1,000     

7.500%

  Citibank NA     10/14/14        (145,470     (170,148     24,678   
  778        3 Month LIBOR      EUR 600     

7.500%

  Citibank NA     10/14/14        (96,212     (87,625     (8,587
  1,294        3 Month LIBOR      EUR 1,000      3 Month EURIBOR minus 28.75 bps   Citibank NA     10/15/14        (22,096            (22,096
  808        3 Month LIBOR      JPY 62,000     

5.500%

  Citibank NA     12/15/14        191,190        (12     191,202   
  494        3 Month LIBOR      EUR 400     

5.000%

  Citibank NA     03/18/15        (46,662     (14,732     (31,930

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     65   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

Notional
Amount
(000)#

    Fund
Receives
    Notional
Amount
(000)#
   

Fund
Pays

  Counterparty   Termination
Date
    Fair
Value
    Upfront
Premiums
Paid
(Received)
    Unrealized
Appreciation
(Depreciation)
 

 

Over-the-counter swap agreements (cont’d.):

  

  2,105        3 Month LIBOR      CHF 2,000     

2.625%

  Citibank NA     05/12/15      $ (131,755   $ (78,305   $ (53,450
  1,246        3 Month LIBOR      JPY 100,000     

4.500%

  Citibank NA     06/08/15        218,228        62        218,166   
  307        3 Month LIBOR      JPY 24,000     

4.500%

  Citibank NA     06/08/15        50,338        (12,097     62,435   
  257        3 Month LIBOR      JPY 20,000     

4.500%

  Citibank NA     06/08/15        41,698        (11,240     52,938   
  690        3 Month LIBOR      EUR 500     

3.750%

  Citibank NA     10/12/15        (8,060     (16,600     8,540   
  649        3 Month LIBOR      EUR 500     

3.750%

  Citibank NA     10/12/15        (46,941     (16,422     (30,519
  582        3 Month LIBOR      EUR 480     

4.500%

  Citibank NA     11/30/15        (71,923     (5,471     (66,452
  263        3 Month LIBOR      EUR 200      3 Month EURIBOR minus 30.00 bps   Citibank NA     12/18/15        164               164   
  651        3 Month LIBOR      EUR 500     

3.625%

  Citibank NA     02/01/16        (16,159     45        (16,204
  651        3 Month LIBOR      EUR 500     

4.500%

  Citibank NA     04/05/16        (40,779     (22,722     (18,057
  303        3 Month LIBOR      EUR 227     

4.500%

  Citibank NA     04/05/16        (11,009     (15,773     4,764   
  960        3 Month LIBOR      EUR 700     

4.500%

  Citibank NA     04/15/16        (20,743            (20,743
  1,111        3 Month LIBOR      JPY 92,000     

3.700%

  Citibank NA     11/14/16        207,468        66        207,402   
  327        3 Month LIBOR      CHF 300     

2.875%

  Citibank NA     11/23/16        (15,246     (22,679     7,433   
  325        3 Month LIBOR      CHF 300     

2.875%

  Citibank NA     11/23/16        (17,251     (27,045     9,794   
  1,605        3 Month LIBOR      JPY 125,000     

3.450%

  Citibank NA     03/24/17        409,157        38,561        370,596   
  244        3 Month LIBOR      EUR 200     

4.250%

  Citibank NA     07/14/17        (49,901     (20,832     (29,069
  122        3 Month LIBOR      EUR 100     

4.250%

  Citibank NA     07/14/17        (25,194     (11,428     (13,766
  1,111        3 Month LIBOR      CHF 1,000     

2.625%

  Credit Suisse
International
    05/12/15        14,084        (25,901     39,985   
  567        3 Month LIBOR      CHF 500     

4.000%

  Credit Suisse
International
    05/20/16        34,813        678        34,135   
  12,789        3 Month LIBOR      EUR 9,645      3 Month EURIBOR minus 26.00 bps   Deutsche
Bank AG
    01/25/15        91,788               91,788   
  620        3 Month LIBOR      CHF 588      3 Month CHF LIBOR minus 34.75 bps   HSBC Bank
USA NA
    11/13/13        (11,421            (11,421
  293        3 Month LIBOR      EUR 220      3 Month EURIBOR minus 25.75 bps   HSBC Bank
USA NA
    01/17/15        3,639               3,639   
  107        3 Month LIBOR      CHF 100      3 Month CHF LIBOR minus 29.00 bps   HSBC Bank
USA NA
    04/24/15        (552            (552
  461        3 Month LIBOR      EUR 350      3 Month EURIBOR minus 30.25 bps   HSBC Bank
USA NA
    12/19/15        533               533   
  635        3 Month LIBOR      EUR 500      3 Month EURIBOR minus 31.25 bps   JPMorgan
Chase Bank
    11/15/14        (21,762            (21,762
  147        3 Month LIBOR      EUR 120     

4.500%

  JPMorgan
Chase Bank
    11/30/15        (16,794     (2,177     (14,617
           

 

 

   

 

 

   

 

 

 
            $ 179,040      $ (815,416   $ 994,456   
           

 

 

   

 

 

   

 

 

 

 

# Notional amount is shown in U.S. dollars unless otherwise stated.

 

 

See Notes to Financial Statements.

 

66   Visit our website at www.prudentialfunds.com


 

 

 

Inflation swap agreements outstanding at April 30, 2013:

 

Notional
Amount
(000)#

    Termination
Date
    Fixed
Rate
   

Description

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

Counterparty

JPY  900,000        01/15/14        0.150%     

Japan CPI Nationwide General Ex Fresh Food(1)

  $ 4,837      $      $ 4,837     

Barclays Bank PLC

JPY 300,000        01/15/16        0.790%     

Japan CPI Nationwide General Ex Fresh Food(2)

    (55,903            (55,903  

Barclays Bank PLC

       

 

 

   

 

 

   

 

 

   
        $ (51,066   $      $ (51,066  
       

 

 

   

 

 

   

 

 

   

 

(1) Fund pays the fixed rate and receives the floating rate.
(2) Fund pays the floating rate and receives the fixed rate.
# Notional amount is shown in U.S. dollars unless otherwise stated.

 

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

 

Level 1—quoted prices generally in active markets for identical securities.

 

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

 

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

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     67   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

 

The following is a summary of the inputs used as of April 30, 2013 in valuing such portfolio securities:

 

     Level 1      Level 2     Level 3  

Investments in Securities

       

Foreign Bonds

   $       $ 215,659,221      $ 3,429,424   

Asset-Backed Securities

       

Collateralized Loan Obligations, Debt Obligations and Other Asset Backed Securities

             6,223,946          

Residential Mortgage-Backed Securities

             19,619,301          

Bank Loans

             5,958,235        905,926   

Commercial Mortgage-Backed Securities

             3,480,156          

Corporate Bonds

             67,198,882        722,298   

Municipal Bonds

             1,668,879          

U.S. Government Agency Obligation

             201,673          

U.S. Treasury Securities

             1,724,922          

Preferred Stock

     112,960                  

Affiliated Money Market Mutual Fund

     2,454,975                  

Other Financial Instruments*

       

Futures

     1,041,830                  

Forward Foreign Currency Exchange Contracts

             2,164,722          

Credit Default Swap Agreements

             2,996,166        (2,415

Forward Rate Agreement

             23,866          

Interest Rate Swap Agreements

             3,409,805        348,209   

Currency Swap Agreements

             994,456          

Inflation Swap Agreements

             (51,066       
  

 

 

    

 

 

   

 

 

 

Total

   $ 3,609,765       $ 331,273,164      $ 5,403,442   
  

 

 

    

 

 

   

 

 

 

 

See Notes to Financial Statements.

 

68   Visit our website at www.prudentialfunds.com


 

 

 

 

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

 

    Foreign
Bonds
    Collateralized
Loan Obligations,
Debt Obligations
and Other
Asset Backed
Securities
    Bank
Loans
    Corporate
Bonds
    Credit
Default
Swaps
    Interest
Rate
Swaps
 

Balance as of 10/31/12

  $ 2,020,650      $ 17,826      $ 288,755      $ 739,080      $ (3,246   $ 128,968   

Realized gain (loss)

           12        6,136               **      ** 

Change in unrealized appreciation (depreciation)***

    130,023        (145     2,660        13,624        831        219,241   

Purchases

    1,276,628               897,453                        

Sales

           (17,707     (291,286     (30,406              

Accrued discount/premium

    2,123        14        2,208                        

Transfers into Level 3

                                         

Transfers out of Level 3

                                         
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of 04/30/13

  $ 3,429,424      $      $ 905,926      $ 722,298      $ (2,415   $ 348,209   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

* Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are recorded at the unrealized appreciation/depreciation on the instrument.
** The realized gain incurred during the period for the other financial instruments was $21,730.
*** Of which, $370,711 was included in Net Assets relating to securities held at the reporting period end.

 

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

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     69   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

 

The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2013 was as follows:

 

Sovereigns

     55.8

Banking

     8.1   

Residential Mortgage-Backed Securities

     5.8   

Non-Corporate Foreign Agencies

     2.4   

Cable

     1.9   

Capital Goods

     1.8   

Healthcare & Pharmaceutical

     1.8   

Collateralized Loan Obligations, Debt Obligations and Other Asset Backed Securities

     1.8   

Technology

     1.6   

Media & Entertainment

     1.4   

Foods

     1.2   

Telecommunications

     1.1   

Commercial Mortgage-Backed Securities

     1.0   

Electric

     1.0   

Insurance

     1.0   

Non-Captive Finance

     0.9   

Metals

     0.8   

Affiliated Money Market Mutual Fund

     0.7   

Pipelines & Other

     0.6   

Automotive

     0.5   

Municipal Bonds

     0.5   

Retailers

     0.5

U.S. Treasury Securities

     0.5   

Brokerage

     0.4   

Building Materials & Construction

     0.4   

Chemicals

     0.4   

Energy—Integrated

     0.4   

Gaming

     0.4   

Healthcare Insurance

     0.4   

Paper

     0.4   

Tobacco

     0.4   

Aerospace & Defense

     0.2   

Airlines

     0.2   

Packaging

     0.2   

Real Estate Investment Trusts

     0.2   

Consumer

     0.1   

Energy—Other

     0.1   

Lodging

     0.1   

Railroads

     0.1   

U.S. Government Agency Obligation

     0.1   
  

 

 

 
     97.2   

Other assets in excess of liabilities

     2.8   
  

 

 

 

Net Assets

     100.0
  

 

 

 

 

See Notes to Financial Statements.

 

70   Visit our website at www.prudentialfunds.com


 

 

 

 

The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are credit risk, foreign exchange risk and 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 April 30, 2013 as presented in the Statement of Assets and Liabilities:

 

Derivatives not designated
as hedging instruments,
carried at fair value

  

Asset Derivatives

   

Liability Derivatives

 
  

Balance
Sheet Location

   Fair
Value
   

Balance
Sheet Location

   Fair
Value
 
Credit contracts    Unrealized appreciation on swap agreements    $ 3,212,229      Unrealized depreciation on swap agreements    $ 218,478   
Credit contracts    Premiums paid for swap agreements      291,011      Premiums received for swap agreements      3,615,842   
Foreign exchange contracts    Unrealized appreciation on forward foreign currency contracts      5,438,187      Unrealized depreciation on forward foreign currency contracts      3,273,465   
Interest rate contracts    Due from broker—variation margin      1,082,533   Due from broker—variation margin      40,703
Interest rate contracts    Unrealized appreciation on forward rate agreements      23,866             
Interest rate contracts    Unrealized appreciation on swap agreements      7,131,369      Unrealized depreciation on swap agreements      2,429,965   
Interest rate contracts    Premiums paid for swap agreements      39,412      Premiums received for swap agreements      854,828   
     

 

 

      

 

 

 

Total

      $ 17,218,607         $ 10,433,281   
     

 

 

      

 

 

 

 

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

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     71   


 

Portfolio of Investments

 

as of April 30, 2013 (Unaudited) continued

 

 

The effects of derivative instruments on the Statement of Operations for the six months ended April 30, 2013 are as follows:

 

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income

 

Derivatives not designated
as hedging instruments,
carried at fair value

  Options
Purchased
    Options
Written
    Futures     Forward
Currency
Contracts
    Swaps     Total  

Credit contracts

  $      $      $      $      $ 3,493      $ 3,493   

Foreign exchange contracts

    (2,958,303                   (11,073,004            (14,031,307

Interest rate contracts

    39,908        (9,900     402,694               838,322        1,271,024   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ (2,918,395   $ (9,900   $ 402,694      $ (11,073,004   $ 841,815      $ (12,756,790
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income

 

Derivatives not designated
as hedging instruments,
carried at fair value

  Options
Purchased
    Futures     Forward
Currency
Contracts
    Forward
Rate
Agreements
    Swaps     Total  

Credit contracts

  $      $      $      $      $ 516,366      $ 516,366   

Foreign exchange contracts

    830,777               4,354,932                      5,185,709   

Interest rate contracts

           508,822               23,866        2,150,427        2,683,115   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
  $ 830,777      $ 508,822      $ 4,354,932      $ 23,866      $ 2,666,793      $ 8,385,190   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

For the six months ended April 30, 2013, the Fund’s average volume of derivative activities are as follows:

 

Options
Purchased
(Cost)
    Futures
Long
Positions
(Value at
Trade Date)
    Futures
Short
Positions
(Value at
Trade Date)
    Forward
Currency
Contracts—
Purchased
(Value at
Settlement
Date  Payable)
    Forward
Currency
Contracts—
Sold
(Value at
Settlement
Date Receivable)
 
$ 1,138,285      $ 81,602,229      $ 53,792,121      $ 411,371,618      $ 261,485,679   

 

Forward
Rate
Agreements
(Notional
Amount in
USD (000))
    Interest
Rate
Swaps
(Notional
Amount in
USD (000))
    Credit
Default
Swaps as
Buyer
(Notional
Amount in
USD (000))
    Credit
Default
Swaps as
Writer
(Notional
Amount in
USD (000))
    Currency
Swaps
(Notional
Amount in
USD (000))
    Inflation
Swaps
(Notional
Amount in
USD (000))
 
$ 26,912      $ 314,507      $ 21,273      $ 50,717      $ 35,924      $ 8,900   

 

See Notes to Financial Statements.

 

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LOGO

 

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

 

FINANCIAL STATEMENTS

(UNAUDITED)

 

SEMIANNUAL REPORT · APRIL 30, 2013

 

Prudential Global Total Return Fund, Inc.


 

Statement of Assets and Liabilities

 

as of April 30, 2013 (Unaudited)

 

Assets

        

Investments at value:

  

Unaffiliated Investments (cost $306,500,333)

   $ 326,905,823  

Affiliated Investments (cost $2,454,975)

     2,454,975  

Foreign currency, at value (cost $272,752)

     274,413  

Cash

     149,199  

Unrealized appreciation on swap agreements

     10,343,598  

Unrealized appreciation on forward foreign currency contracts

     5,438,187  

Dividends and interest receivable

     4,722,400  

Receivable for Fund shares sold

     1,556,553  

Receivable for investments sold

     384,610  

Premiums paid for swap agreements

     330,423  

Foreign tax reclaim receivable

     38,860  

Unrealized appreciation on forward rate agreements

     23,866  

Due from broker—variation margin

     2,423  

Prepaid expenses

     1,415  
  

 

 

 

Total assets

     352,626,745  
  

 

 

 

Liabilities

        

Premiums received for swap agreements

     4,470,670  

Unrealized depreciation on forward foreign currency contracts

     3,273,465  

Unrealized depreciation on swap agreements

     2,648,443  

Payable for Fund shares reacquired

     1,569,292  

Payable for investments purchased

     1,171,172  

Dividends payable

     261,557  

Accrued expenses

     233,271  

Management fee payable

     177,582  

Distribution fee payable

     78,498  

Affiliated transfer agent fee payable

     18,356  
  

 

 

 

Total liabilities

     13,902,306  
  

 

 

 

Net Assets

   $ 338,724,439  
  

 

 

 
          

Net assets were comprised of:

  

Common stock, at par

   $ 466,692  

Paid-in capital in excess of par

     325,198,425  
  

 

 

 
     325,665,117  

Distributions in excess of net investment income

     (998,749

Accumulated net realized loss on investment and foreign currency transactions

     (17,245,040

Net unrealized appreciation on investments and foreign currencies

     31,303,111  
  

 

 

 

Net assets, April 30, 2013

   $ 338,724,439  
  

 

 

 

 

See Notes to Financial Statements.

 

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Class A

        

Net asset value and redemption price per share
($196,805,302 ÷ 27,135,577 shares of common stock issued and outstanding)

   $ 7.25   

Maximum sales charge (4.50% of offering price)

     0.34   
  

 

 

 

Maximum offering price to public

   $ 7.59   
  

 

 

 

Class B

        

Net asset value, offering price and redemption price per share
($8,002,784 ÷ 1,103,039 shares of common stock issued and outstanding)

   $ 7.26   
  

 

 

 

Class C

        

Net asset value, offering price and redemption price per share
($40,255,536 ÷ 5,560,296 shares of common stock issued and outstanding)

   $ 7.24   
  

 

 

 

Class Q

        

Net asset value, offering price and redemption price per share
($10,981 ÷ 1,509 shares of common stock issued and outstanding)

   $ 7.28   
  

 

 

 

Class Z

        

Net asset value, offering price and redemption price per share
($93,649,836 ÷ 12,868,757 shares of common stock issued and outstanding)

   $ 7.28   
  

 

 

 

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     75   


 

Statement of Operations

 

Six Months Ended April 30, 2013 (Unaudited)

 

Net Investment Income

        

Income

  

Interest (net of foreign withholding taxes of $1,282)

   $ 6,661,029  

Affiliated dividend income

     4,164  

Unaffiliated dividend income

     3,937  
  

 

 

 

Total income

     6,669,130  
  

 

 

 

Expenses

  

Management fee

     1,048,447  

Distribution fee—Class A

     232,796  

Distribution fee—Class B

     36,494  

Distribution fee—Class C

     188,021  

Transfer agent’s fees and expenses (including affiliated expense of $23,900)

     190,000  

Custodian’s fees and expenses

     162,000  

Registration fees

     51,000  

Reports to shareholders

     39,000  

Audit fee

     30,000  

Legal fees and expenses

     12,000  

Directors’ fees

     7,000  

Insurance

     3,000  

Loan interest expense (Note 7)

     173  

Miscellaneous

     9,650  
  

 

 

 

Total expenses

     2,009,581  
  

 

 

 

Net investment income

     4,659,549  
  

 

 

 

Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions

        

Net realized gain (loss) on:

  

Investment transactions

     (910,016

Foreign currency transactions

     (8,671,622

Financial futures transactions

     402,694  

Swap agreement transactions

     841,815  

Options written transactions

     (9,900
  

 

 

 
     (8,347,029
  

 

 

 

Net change in unrealized appreciation (depreciation) on:

  

Investments (net of change in foreign capital gains taxes $1,078)

     4,554,381  

Foreign currencies

     4,355,824  

Financial futures contracts

     508,822  

Forward rate agreements

     23,866  

Swap agreements

     2,666,793  
  

 

 

 
     12,109,686  
  

 

 

 

Net gain on investment and foreign currency transactions

     3,762,657  
  

 

 

 

Net Increase In Net Assets Resulting From Operations

   $ 8,422,206  
  

 

 

 

 

See Notes to Financial Statements.

 

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Statement of Changes in Net Assets

 

(Unaudited)

 

    Six Months
Ended
April 30, 2013
    Year
Ended
October 31, 2012
 

Increase (Decrease) In Net Assets

               

Operations

   

Net investment income

  $ 4,659,549     $ 7,923,220  

Net realized gain (loss) on investment and foreign currency transactions

    (8,347,029     1,283,657  

Net change in unrealized appreciation (depreciation) on investments and foreign currencies

    12,109,686       11,503,741  
 

 

 

   

 

 

 

Net increase in net assets resulting from operations

    8,422,206       20,710,618  
 

 

 

   

 

 

 

Dividends and Distributions (Note 1)

   

Dividends from net investment income*

   

Class A

    (3,614,203     (6,600,695

Class B

    (113,990     (190,197

Class C

    (589,293     (897,888

Class Q

    (226     (272

Class Z

    (1,881,271     (2,411,147
 

 

 

   

 

 

 
    (6,198,983     (10,100,199
 

 

 

   

 

 

 

Tax Return of Capital Distributions

   

Class A

          (610,548

Class B

          (17,593

Class C

          (83,053

Class Q

          (25

Class Z

          (223,025
 

 

 

   

 

 

 
          (934,244
 

 

 

   

 

 

 

Fund share transactions (Net of share conversions) (Note 6)

   

Net proceeds from shares sold

    94,950,543       152,201,551  

Net asset value of shares issued in reinvestment of dividends

    4,622,021       8,181,155  

Cost of shares reacquired

    (63,864,310     (90,078,057
 

 

 

   

 

 

 

Net increase in net assets from Fund share transactions

    35,708,254       70,304,649  
 

 

 

   

 

 

 

Total increase

    37,931,477       79,980,824  

Net Assets:

               

Beginning of period

    300,792,962       220,812,138  
 

 

 

   

 

 

 

End of period(a)

  $ 338,724,439     $ 300,792,962  
 

 

 

   

 

 

 

(a) Includes undistributed net investment income of:

  $      $ 540,685   
 

 

 

   

 

 

 

 

* Dividends from net investment income may include other items that are ordinary income for tax purposes.

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     77   


 

Notes to Financial Statements

 

(Unaudited)

 

Prudential Global Total Return Fund, Inc. (the “Fund”) is an open-end management investment company, registered under the Investment Company Act of 1940, as amended (“1940 Act”). The Fund’s investment objective is to seek total return, made up of current income and capital appreciation. The Fund is a non-diversified fund.

 

Note 1. Accounting Policies

 

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

 

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

 

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

 

Common stocks, exchange-traded funds and financial derivative instruments (including futures contracts and certain options and swap contracts on securities), that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued

 

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at the last sale price or NASDAQ official closing price, they are classified as Level 1 of the fair value hierarchy.

 

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

 

For common stocks traded on foreign securities exchanges, certain valuation adjustments will be applied when events occur after the close of the security’s foreign market and before the Fund’s normal pricing time. These securities 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 of the fair value hierarchy as the adjustment factors are considered as significant other observable inputs to the valuation.

 

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

 

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

 

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

 

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

 

Prudential Global Total Return Fund, Inc.     79   


 

Notes to Financial Statements

 

(Unaudited) continued

 

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

 

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

 

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

 

When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

 

Restricted and Illiquid Securities: The Fund may invest up to 15% of its net assets in illiquid securities. Illiquid securities are those that, because of the absence of a readily available market or due to legal or contractual restrictions on resale, cannot be sold within seven days in the ordinary course of business at approximately the amount at which the Fund has valued the investment. Therefore, the Fund may find it difficult to sell illiquid securities at the time considered most advantageous by its Subadviser and may incur expenses that would not be incurred in the sale of securities that were freely marketable. Certain securities that would otherwise be considered illiquid because of legal restrictions on resale to the general public may be traded among qualified institutional buyers under Rule 144A of the Securities Act of 1933. These

 

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

 

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

 

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

 

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

 

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

 

Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from sales and maturities of short-term securities and forward currency contracts, disposition of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of interest, discount 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 or 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 issuers of debt securities (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 U.S. companies as a

 

Prudential Global Total Return Fund, Inc.     81   


 

Notes to Financial Statements

 

(Unaudited) continued

 

result of, among other factors, the possibility of political or economic instability or the level of governmental supervision and regulation of foreign securities markets.

 

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 financial 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. Financial futures contracts involve elements of risk in excess of the amounts reflected on the Statement of Assets and Liabilities.

 

Forward Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate between two parties. The Fund enters into forward currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or specific receivables and payables denominated in a foreign currency. The contracts are valued daily at current exchange rates and any unrealized gain or loss is included in net unrealized appreciation or depreciation on foreign currencies. Gain or loss is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain or loss, if any, is included in net realized gain (loss) on foreign currency transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward

 

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currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Fund’s maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life. 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.

 

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 intends to purchase. The Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option. If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is recorded as an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Fund has realized a gain or 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 or loss. Gain or loss on purchased options is included in net realized gain or loss on investment transactions. Gain or loss on written options is presented separately as net realized gain or loss on options written. The Fund, as writer of an option, may have no control over whether the underlying securities may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. The Fund, as purchaser of an over-the-counter option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts.

 

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

 

Forward Rate Agreements: Forward rate agreements represent an agreement between counterparties to exchange cash flows based on the difference between two interest

 

Prudential Global Total Return Fund, Inc.     83   


 

Notes to Financial Statements

 

(Unaudited) continued

 

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

 

Credit Default Swaps: Credit default swaps involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified payment in the event of a default or as a result of a default (collectively a “credit event”) for the referenced entity, typically corporate issues or sovereign issues of an emerging country, on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index.

 

The Fund is subject to credit risk in the normal course of pursuing its investment objectives. The Fund entered into credit default swaps to provide a measure of protection against defaults of the issuers. The Fund’s maximum risk of loss from counterparty credit risk for purchased credit default swaps is the inability of the counterparty to honor the contract up to the notional value based on a credit event. 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.

 

As a seller of protection on credit default swap agreements, the Fund will generally receive from the buyer of protection an agreed upon payment throughout the term of

 

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the swap provided that there is no credit event. As the seller, the Fund would effectively increase investment risk to its portfolio because, in addition to its total net assets, the Fund may be subject to investment exposure on the notional amount of the swap.

 

The maximum amount of the payment that the Fund as a seller of protection could be required to make under a credit default swap agreement would be equal to the notional amount of the underlying security or index contract as a result of a credit event. These potential amounts will be partially offset by any recovery values of the respective referenced obligations, or net amounts received from the settlement of buy protection credit default swap agreements entered into by the Fund for the same referenced entity or index. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.

 

Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements on corporate issues or sovereign issues of an emerging country as of period end are disclosed in the footnotes to the Portfolio of Investments, if applicable, and serve as an indicator of the current status of the payment/performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. For credit default swap agreements on asset-backed securities and credit indices, the quoted market prices and resulting values serve as the indicator of the current status of the payment/performance risk. Wider credits spreads and increasing market value in absolute terms, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.

 

Interest Rate Swaps: Interest rate swaps represent an agreement between counterparties to exchange cash flows based on the difference between two interest rates, applied to a notional principal amount for a specified period. The Fund used interest rate swaps to maintain its ability to generate steady cash flow by receiving a stream of fixed rate payments and to increase exposure to prevailing market rates by receiving floating rate payments using interest rate swap contracts. The Fund is subject to interest rate risk exposure in the normal course of pursuing its investment objectives.

 

Currency Swaps: The Fund entered into currency swap agreements primarily to gain yield exposure on foreign bonds. Currency swap agreements involve two parties exchanging two different currencies with an agreement to reverse the exchange at a later date at specified exchange rates.

 

Prudential Global Total Return Fund, Inc.     85   


 

Notes to Financial Statements

 

(Unaudited) continued

 

 

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

 

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. 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 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 there will be no liquid market for these agreements, that the counterparty to the agreement may default on its obligation to perform or disagree as to the meaning of the contractual terms in the agreement, and that there will be unfavorable changes in net interest rates. In connection with these agreements, securities in the portfolio may be identified as collateral 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 serve as recourse in the event of default or bankruptcy/insolvency of either party. Such over-the-counter derivative agreements include conditions which when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements. As of April 30, 2013, the Fund has not met conditions under such agreements, which give the counterparty the right to call for an early termination.

 

Forward currency contracts, forward rate agreements, swaps and financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.

 

Lower rated or unrated securities are more likely to react to developments affecting market risk (general market liquidity) and credit risk (an issuer’s inability to meet principal and interest payments on its obligations) than are more highly rated securities, which react primarily to movements in the general level of interest rates.

 

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The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic developments in a specific industry or region.

 

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

 

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

 

Dividends and Distributions: The Fund declares dividends from net investment income daily and payment is made monthly. Distributions from net realized capital and currency gains, if any, are paid annually. Foreign currency losses may reduce the amount of dividends of net investment income. Dividends and distributions are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles. Permanent book/tax differences relating to income and gains are reclassified to paid-in capital when they arise.

 

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

 

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

 

Note 2. Agreements

 

The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement

 

Prudential Global Total Return Fund, Inc.     87   


 

Notes to Financial Statements

 

(Unaudited) continued

 

provides that PIM will furnish investment advisory services in connection with the management of the Fund. In connection therewith, PIM is obligated to keep certain books and records of the Fund. PI pays for the services of PIM, the cost of compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.

 

The management fee paid to PI is accrued daily and payable monthly at an annual rate of ..65% of the Fund’s average daily net assets up to $1 billion and .60% of such assets in excess of $1 billion. The effective management fee rate was .65% for the six months ended April 30, 2013.

 

PI has voluntarily agreed to reimburse the Fund in order to limit operating expenses (excluding distribution and service (12b-1) fees, interest, taxes, brokerage commissions and certain extraordinary expenses) to 1.10% of the Fund’s average daily net assets. For the six months ended April 30, 2013, the Fund did not exceed the 1.10% expense limit.

 

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 Q and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Class A, B 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, B and C plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, 1% and 1% of the average daily net assets of the Class A, B, and C shares, respectively. Through February 28, 2014, PIMS has contractually agreed to limit such fees to .25% of the average daily net assets of the Class A shares.

 

PIMS has advised the Fund that it has received $203,244 in front-end sales charges resulting from sales of Class A shares during the six months ended April 30, 2013. 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 six months ended April 30, 2013, it received $2,950, $8,883 and $3,202 in contingent deferred sales charges imposed upon redemptions by certain Class A, Class B and Class C shareholders, respectively.

 

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

 

Note 3. Other Transactions with Affiliates

 

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

 

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

 

Note 4. Portfolio Securities

 

Purchases and sales of portfolio securities, other than short-term investments and U.S. Government securities, for the six months ended April 30, 2013, were $103,599,019 and $78,138,916, respectively.

 

Transactions in options written during the six months ended April 30, 2013, were as follows:

 

     Notional
Amount
     Premiums
Received
 

Options outstanding at October 31, 2012

   $       $   

Options written

     5,164,000         18,236   

Options terminated in closing purchase transactions

     (5,164,000 )      (18,236 )

Options expired

               
  

 

 

    

 

 

 

Options outstanding at April 30, 2013

   $       $   
  

 

 

    

 

 

 

 

Note 5. Tax Information

 

The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2013 were as follows:

 

Tax Basis

 

Appreciation

 

Depreciation

 

Net
Unrealized
Appreciation

$313,335,107   $18,808,561   $(2,782,870)   $16,025,691

 

Prudential Global Total Return Fund, Inc.     89   


 

Notes to Financial Statements

 

(Unaudited) continued

 

 

The difference between book and tax basis is primarily attributable to deferred losses on wash sales and difference in the treatment of amortization of premiums as of the most recent fiscal year end.

 

Under the Regulated Investment Company Modernization Act of 2010 (“the Act”), the Fund is permitted to carryforward capital losses incurred in the fiscal year ended October 31, 2012 (“post-enactment losses”) for an unlimited period. Post-enactment losses are required to be utilized before the utilization of losses incurred prior to the effective date of the Act. As a result of this ordering rule, capital loss carryforwards related to taxable years ending before October 31, 2012 (“pre-enactment losses”) may have an increased likelihood to expire unused. The Fund utilized approximately $2,316,000 of its pre-enactment losses to offset net taxable gains realized in the fiscal year ended October 31, 2012. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses. As of October 31, 2012, the pre and post-enactment losses were approximately:

 

Post-Enactment Losses:

   $ 0   
  

 

 

 

Pre-Enactment Losses:

  

Expiring 2016

   $ 4,579,000   

Expiring 2017

     2,476,000   
  

 

 

 
   $ 7,055,000   
  

 

 

 

 

Management has analyzed the Fund’s tax positions taken on federal 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 and state 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 Q and Class Z shares. Class A shares are sold with a front-end sales charge of up to 4.50%. 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%, although the CDSC is waived for purchases by certain retirement and/or benefit plans. Class B shares are sold with a CDSC which declines from 5% to zero

 

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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 are sold with a CDSC of 1% on shares redeemed within the first 12 months after purchase. 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 offered 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 billion authorized shares of common stock at $.01 par value per share, designated Class A, Class B, Class C, Class Q and Class Z, each of which consists of 500 million, 200 million, 400 million, 400 million and 500 million authorized shares, respectively.

 

As of April 30, 2013, Prudential Financial, Inc. through its affiliates owned 1,509 Class Q shares of the Fund.

 

Transactions in shares of common stock were as follows:

 

Class A

     Shares      Amount  

Six months ended April 30, 2013:

       

Shares sold

       5,873,127      $ 42,100,678  

Shares issued in reinvestment of dividends

       396,826        2,847,293  

Shares reacquired

       (3,615,470      (25,943,289
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       2,654,483        19,004,682  

Shares issued upon conversion from Class B and Z

       42,427        299,365  

Shares reacquired upon conversion into Class Z

       (120,861      (859,437
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       2,576,049      $ 18,444,610  
    

 

 

    

 

 

 

Year ended October 31, 2012:

       

Shares sold

       9,649,370      $ 66,221,366  

Shares issued in reinvestment of dividends

       840,103        5,757,402  

Shares reacquired

       (8,020,577      (54,784,066
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       2,468,896        17,194,702  

Shares issued upon conversion from Class B and Z

       73,630        504,762  

Shares reacquired upon conversion into Class Z

       (24,177      (163,934
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       2,518,349      $ 17,535,530  
    

 

 

    

 

 

 

 

Prudential Global Total Return Fund, Inc.     91   


 

Notes to Financial Statements

 

(Unaudited) continued

 

Class B

     Shares      Amount  

Six months ended April 30, 2013:

       

Shares sold

       277,271      $ 1,985,663  

Shares issued in reinvestment of dividends

       10,525        75,578  

Shares reacquired

       (94,904      (677,187
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       192,892        1,384,054  

Shares reacquired upon conversion into Class A

       (26,261      (187,579
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       166,631      $ 1,196,475  
    

 

 

    

 

 

 

Year ended October 31, 2012:

       

Shares sold

       410,139      $ 2,826,554  

Shares issued in reinvestment of dividends

       20,247        138,645  

Shares reacquired

       (148,025      (1,017,877
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       282,361        1,947,322  

Shares reacquired upon conversion into Class A

       (64,015      (439,691
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       218,346      $ 1,507,631  
    

 

 

    

 

 

 

Class C

               

Six months ended April 30, 2013:

       

Shares sold

       1,608,870      $ 11,530,058  

Shares issued in reinvestment of dividends

       59,922        429,241  

Shares reacquired

       (770,101      (5,484,908
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       898,691        6,474,391  

Shares reacquired upon conversion into Class Z

       (64,640      (459,782
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       834,051      $ 6,014,609  
    

 

 

    

 

 

 

Year ended October 31, 2012:

       

Shares sold

       2,747,473      $ 18,846,010  

Shares issued in reinvestment of dividends

       99,322        679,917  

Shares reacquired

       (896,034      (6,166,575
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       1,950,761        13,359,352  

Shares reacquired upon conversion into Class Z

       (8,795      (61,900
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       1,941,966      $ 13,297,452  
    

 

 

    

 

 

 

Class Q

               

Six months ended April 30, 2013:

       

Shares issued in reinvestment of dividends

       32      $ 226  
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       32      $ 226  
    

 

 

    

 

 

 

Period ended October 31, 2012*:

       

Shares sold

       1,435      $ 10,000  

Shares issued in reinvestment of dividends

       42        297  
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       1,477      $ 10,297  
    

 

 

    

 

 

 

 

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Class Z

     Shares      Amount  

Six months ended April 30, 2013:

       

Shares sold

       5,462,878      $ 39,334,144  

Shares issued in reinvestment of dividends

       176,357        1,269,683  

Shares reacquired

       (4,433,086      (31,758,926
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       1,206,149        8,844,901  

Shares issued upon conversion from Class A and C

       184,782        1,319,219  

Shares reacquired upon conversion into Class A

       (15,517      (111,786
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       1,375,414      $ 10,052,334  
    

 

 

    

 

 

 

Year ended October 31, 2012:

       

Shares sold

       9,288,412      $ 64,297,621  

Shares issued in reinvestment of dividends

       232,286        1,604,894  

Shares reacquired

       (4,087,278      (28,109,539
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       5,433,420        37,792,976  

Shares issued upon conversion from Class A and C

       32,834        225,834  

Shares reacquired upon conversion into Class A

       (9,567      (65,071
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       5,456,687      $ 37,953,739  
    

 

 

    

 

 

 

 

* Commencement of offering was February 3, 2012.

 

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 November 15, 2012 through November 14, 2013. The Funds pay an annualized commitment fee of 0.08% on the unused portion of the SCA. Prior to November 15, 2012, the Funds had another SCA with substantially similar terms. Interest on any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.

 

The Fund utilized the SCA during the six months ended April 30, 2013. The average daily balance for the 6 days that the Fund had loans outstanding during the period was approximately $714,000, borrowed at a weighted average interest rate of 1.45%. At April 30, 2013, the Fund did not have an outstanding loan amount.

 

Note 8. New Accounting Pronouncement

 

In December 2011, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2011-11 regarding “Disclosures about

 

Prudential Global Total Return Fund, Inc.     93   


 

Notes to Financial Statements

 

(Unaudited) continued

 

Offsetting Assets and Liabilities.” The amendments, which will be effective for annual reporting periods beginning on or after January 1, 2013 and interim periods within those annual periods, require an entity to disclose information about offsetting and related arrangements for assets and liabilities, financial instruments and derivatives that are either currently offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements. At this time, management is evaluating the implications of ASU No. 2011-11 and its impact on the financial statements has not yet been determined.

 

In June 2013, the FASB issued guidance that creates a two-tiered approach to assess whether an entity is an investment company. The guidance will also require an investment company to measure noncontrolling ownership interests in other investment companies at fair value and will require additional disclosures relating to investment company status, any changes thereto and information about financial support provided or contractually required to be provided to any of the investment company’s investees. The guidance is effective for financial statements with fiscal years beginning on or after December 15, 2013 and interim periods within those fiscal years. Management is evaluating the impact of this guidance on the Fund’s financial statement disclosures.

 

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Financial Highlights

 

(Unaudited)

 

Class A Shares  
    

Six Months
Ended

April 30,

        Year Ended October 31,  
     2013          2012     2011     2010     2009     2008  
Per Share Operating Performance(a):                                                    
Net Asset Value, Beginning Of Period     $7.21            $6.99        $7.42        $7.20        $5.76        $7.00   
Income (loss) from investment operations:                                                    
Net investment income     .10            .22        .23        .27        .30        .31   
Net realized and unrealized gain (loss) on investment and foreign currency transactions     .08            .31        .05        .66        1.46        (1.11
Total from investment operations     .18            .53        .28        .93        1.76        (.80
Less Dividends and Distributions:                                                    
Dividends from net investment income*     (.14         (.28     (.71     (.71     (.32     (.44
Tax return of capital distributions     -            (.03     -        -        -        -   
Total dividends and distributions     (.14         (.31     (.71     (.71     (.32     (.44
Net asset value, end of period     $7.25            $7.21        $6.99        $7.42        $7.20        $5.76   
Total Return(b):     2.51%            7.86%        4.60%        14.25%        31.42%        (12.19)%   
Ratios/Supplemental Data:  
Net assets, end of period (000)     $196,805           $176,970       $154,056       $123,507       $114,554       $97,894  
Average net assets (000)     $187,778           $162,268       $125,292       $112,110       $103,462       $119,545  
Ratios to average net assets(c):                                                    
Expenses, including distribution and service (12b-1) fees(d)     1.21% (f)          1.31%        1.35% (e)      1.35% (e)      1.35% (e)      1.36% (e) 
Net investment income     2.93% (f)          3.17%        3.28% (e)      3.97% (e)      4.78% (e)      4.55% (e) 
Portfolio turnover rate     36% (g)          97%        203%        117%        164%        292%   

 

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

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

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

(d) The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .25% of the average daily net assets of the Class A shares through February 28, 2014.

(e) The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes and brokerage commissions and certain extraordinary expenses) to 1.35% of the average daily net assets of Class A. If the manager had not reimbursed the Fund, the expense ratios including distribution and service (12b-1) fees and net investment income ratios would be 1.44% and 4.47%, respectively, for the year ended October 31, 2008, 1.51% and 4.62%, respectively, for the year ended October 31, 2009, 1.42% and 3.90%, respectively, for the year ended October 31, 2010 and 1.39% and 3.24%, respectively, for the year ended October 31, 2011.

(f) Annualized.

(g) Not annualized.

* Dividends from net investment income include other items that are ordinary income for tax purposes.

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     95   


 

Financial Highlights

 

(Unaudited) continued

 

Class B Shares                                               
     Six Months
Ended
April 30,
        Year Ended October 31,  
     2013          2012     2011     2010     2009     2008  
Per Share Operating Performance(a):                                                    
Net Asset Value, Beginning Of Period     $7.21            $6.99        $7.41        $7.19        $5.76        $6.98   
Income (loss) from investment operations:                                                    
Net investment income     .08            .17        .17        .22        .25        .26   
Net realized and unrealized gain (loss) on investment and foreign currency transactions     .08            .30        .06        .66        1.45        (1.10
Total from investment operations     .16            .47        .23        .88        1.70        (.84
Less Dividends and Distributions:                                                    
Dividends from net investment income*     (.11         (.22     (.65     (.66     (.27     (.38
Tax return of capital distributions     -            (.03     -        -        -        -   
Total dividends and distributions     (.11         (.25     (.65     (.66     (.27     (.38
Net asset value, end of period     $7.26            $7.21        $6.99        $7.41        $7.19        $5.76   
Total Return(b):     2.26%            7.06%        3.86%        13.40%        30.25%        (12.67)%   
 
Ratios/Supplemental Data:  
Net assets, end of period (000)     $8,003           $6,748       $5,018       $3,312       $2,920       $3,275  
Average net assets (000)     $7,359           $5,744       $3,465       $3,082       $2,927       $3,957  
Ratios to average net assets(c):                                                    
Expenses, including distribution and service (12b-1) fees     1.96% (e)          2.06%        2.10% (d)      2.10% (d)      2.10% (d)      2.11% (d) 
Net investment income     2.17% (e)          2.40%        2.52% (d)      3.23% (d)      4.03% (d)      3.80% (d) 
Portfolio turnover rate     36% (f)          97%        203%        117%        164%        292%   

 

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

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

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

(d) The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes and brokerage commissions and certain extraordinary expenses) to 2.10% of the average daily net assets of Class B. If the manager had not reimbursed the Fund, the expense ratios including distribution and service (12b-1) fees and net investment income ratios would be 2.19% and 3.72%, respectively, for the year ended October 31, 2008, 2.26% and 3.87%, respectively, for the year ended October 31, 2009, 2.17% and 3.16%, respectively, for the year ended October 31, 2010 and 2.14% and 2.48%, respectively, for the year ended October 31, 2011.

(e) Annualized.

(f) Not annualized.

* Dividends from net investment income include other items that are ordinary income for tax purposes.

 

See Notes to Financial Statements.

 

96   Visit our website at www.prudentialfunds.com


Class C Shares                                               
     Six Months
Ended
April 30,
        Year Ended October 31,  
     2013          2012     2011     2010     2009     2008  
Per Share Operating Performance(a):                                                    
Net Asset Value, Beginning Of Period     $7.19            $6.97        $7.39        $7.17        $5.74        $6.97   
Income (loss) from investment operations:                                                    
Net investment income     .08            .17        .17        .23        .27        .28   
Net realized and unrealized gain (loss) on investment and foreign currency transactions     .08            .31        .07        .67        1.45        (1.10
Total from investment operations     .16            .48        .24        .90        1.72        (.82
Less Dividends and Distributions:                                                    
Dividends from net investment income*     (.11         (.23     (.66     (.68     (.29     (.41
Tax return of capital distributions     -            (.03     -        -        -        -   
Total dividends and distributions     (.11         (.26     (.66     (.68     (.29     (.41
Net asset value, end of period     $7.24            $7.19        $6.97        $7.39        $7.17        $5.74   
Total Return(b):     2.27%            7.08%        4.00%        13.75%        30.73%        (12.51)%   
 
Ratios/Supplemental Data:  
Net assets, end of period (000)     $40,256           $33,988       $19,408       $6,180       $4,236       $3,702  
Average net assets (000)     $37,915           $27,739       $10,010       $4,563       $3,467       $3,974  
Ratios to average net assets(c):                                                    
Expenses, including distribution and service (12b-1) fees(d)     1.96% (f)          2.06%        2.05% (e)      1.85% (e)      1.85% (e)      1.86% (e) 
Net investment income     2.18% (f)          2.39%        2.56% (e)      3.45% (e)      4.28% (e)      4.07% (e) 
Portfolio turnover rate     36% (g)          97%        203%        117%        164%        292%   

 

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

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

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

(d) The distributor of the Fund had contractually agreed to limit its distribution and service (12b-1) fees to .75% of the average daily net assets of the Class C shares through February 28, 2011.

(e) The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes and brokerage commissions and certain extraordinary expenses) to 2.10% (1.85% through February 28, 2011) of the average daily net assets of Class C. If the manager had not reimbursed the Fund, the expense ratios including distribution and service (12b-1) fees and net investment income ratios would be 1.94% and 3.99%, respectively, for the year ended October 31, 2008, 2.01% and 4.12%, respectively, for the year ended October 31, 2009, 1.92% and 3.38%, respectively, for the year ended October 31, 2010 and 2.09% and 2.52%, respectively, for the year ended October 31, 2011.

(f) Annualized.

(g) Not annualized.

* Dividends from net investment income include other items that are ordinary income for tax purposes.

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     97   


 

Financial Highlights

 

(Unaudited) continued

 

Class Q Shares  
     Six Months
Ended
April 30,
2013
        February 3,
2012(d)
through
October 31,
2012
 
Per Share Operating Performance(a):                    
Net Asset Value, Beginning Of Period     $7.23            $6.97   
Income from investment operations:                    
Net investment income     .12            .18   
Net realized and unrealized gain on investment and foreign currency transactions     .08            .28   
Total from investment operations     .20            .46   
Less Dividends and Distributions:                    
Dividends from net investment income     (.15         (.19
Tax return of capital distributions     -            (.01
Total dividends and distributions     (.15         (.20
Net asset value, end of period     $7.28            $7.23   
Total Return(b):     2.83%            6.81%   
Ratios/Supplemental Data:                
Net assets, end of period (000)     $11           $11  
Average net assets (000)     $11           $10  
Ratios to average net assets(c):                    
Expenses, including distribution and service (12b-1) fees     .84% (e)          .92% (e) 
Net investment income     3.30% (e)          3.42% (e) 
Portfolio turnover rate     36% (f)          97% (f) 

 

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

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

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

(d) Commencement of offering.

(e) Annualized.

(f) Not annualized.

 

See Notes to Financial Statements.

 

98   Visit our website at www.prudentialfunds.com


Class Z Shares  
    

Six Months
Ended

April 30,

        Year Ended October 31,  
     2013          2012     2011     2010     2009     2008  
Per Share Operating Performance(a):                                                    
Net Asset Value, Beginning Of Period     $7.23            $7.01        $7.44        $7.22        $5.78        $7.02   
Income (loss) from investment operations:                                                    
Net investment income     .11            .23        .22        .28        .32        .32   
Net realized and unrealized gain (loss) on investment and foreign currency transactions     .09            .31        .08        .67        1.45        (1.10
Total from investment operations     .20            .54        .30        .95        1.77        (.78
Less Dividends and Distributions:                                                    
Dividends from net investment income*     (.15         (.29     (.73     (.73     (.33     (.46
Tax return of capital distributions     -            (.03     -        -        -        -   
Total dividends and distributions     (.15         (.32     (.73     (.73     (.33     (.46
Net asset value, end of period     $7.28            $7.23        $7.01        $7.44        $7.22        $5.78   
Total Return(b):     2.76%            8.10%        4.87%        14.49%        31.62%        (11.90)%   
Ratios/Supplemental Data:                                        
Net assets, end of period (000)     $93,650           $83,077       $42,330       $4,978       $3,141       $1,823  
Average net assets (000)     $92,206           $58,999       $12,813       $3,507       $1,942       $2,147  
Ratios to average net assets(c):                                                    
Expenses, including distribution and service (12b-1) fees     .96% (e)          1.06%        1.10% (d)      1.10% (d)      1.10% (d)      1.11% (d) 
Net investment income     3.16% (e)          3.37%        3.50% (d)      4.25% (d)      5.03% (d)      4.78% (d) 
Portfolio turnover rate     36% (f)          97%        203%        117%        164%        292%   

 

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

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

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

(d) The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes and brokerage commissions and certain extraordinary expenses) to 1.10% of the average daily net assets of Class Z. If the manager had not reimbursed the Fund, the expense ratios including distribution and service (12b-1) fees and net investment income ratios would be 1.19% and 4.70%, respectively, for the year ended October 31, 2008, 1.26% and 4.88%, respectively, for the year ended October 31, 2009, 1.17% and 4.18%, respectively, for the year ended October 31, 2010 and 1.14% and 3.46%, respectively, for the year ended October 31, 2011.

(e) Annualized.

(f) Not annualized.

* Dividends from net investment income include other items that are ordinary income for tax purposes.

 

See Notes to Financial Statements.

 

Prudential Global Total Return Fund, Inc.     99   


n    MAIL   n    TELEPHONE   n    WEBSITE

Gateway Center Three

100 Mulberry Street

Newark, NJ 07102

  (800) 225-1852
  www.prudentialfunds.com

 

PROXY VOTING
The Board of Directors of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. 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
Kevin J. Bannon Scott E. Benjamin Linda W. Bynoe Michael S. Hyland Douglas H. McCorkindale Stephen P. Munn Stuart S. Parker Richard A. Redeker Robin B. Smith Stephen G. Stoneburn

 

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

 

MANAGER   Prudential Investments LLC    Gateway Center Three
100 Mulberry Street
Newark, NJ 07102

 

INVESTMENT SUBADVISER   Prudential Investment
Management, Inc.
   Gateway Center Two
100 Mulberry Street
Newark, NJ 07102

 

DISTRIBUTOR   Prudential Investment
Management Services LLC
   Gateway Center Three
100 Mulberry Street
Newark, NJ 07102

 

CUSTODIAN   The Bank of New York Mellon    One Wall Street
New York, NY 10286

 

TRANSFER AGENT   Prudential Mutual Fund
Services LLC
   PO Box 9658
Providence, RI 02940

 

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
  KPMG LLP    345 Park Avenue
New York, NY 10154

 

FUND COUNSEL   Willkie Farr & Gallagher LLP    787 Seventh Avenue
New York, NY 10019


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

 

E-DELIVERY
To receive your mutual fund documents online, go to www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above.

 

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

 

AVAILABILITY OF PORTFOLIO SCHEDULE
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling (202) 551-8090. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month.

 

Mutual Funds:

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


LOGO

 

 

 

PRUDENTIAL GLOBAL TOTAL RETURN FUND, INC.

 

SHARE CLASS   A   B   C   Q   Z
NASDAQ   GTRAX   PBTRX   PCTRX   PGTQX   PZTRX
CUSIP   74439A103   74439A202   74439A301   74439A509   74439A400

 

MF169E2    0246184-00001-00


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

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

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

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

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

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

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

 

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.

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

Item 11 – Controls and Procedures

 

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

 

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

Item 12 – Exhibits

 

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

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

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

 

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


SIGNATURES

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

 

Registrant:   Prudential Global Total Return Fund, Inc.
By:  

/s/ Deborah A. Docs

  Deborah A. Docs
  Secretary
Date:   June 20, 2013

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

 

By:  

/s/ Stuart S. Parker

  Stuart S. Parker
  President and Principal Executive Officer
Date:   June 20, 2013
By:  

/s/ Grace C. Torres

  Grace C. Torres
  Treasurer and Principal Financial Officer
Date:   June 20, 2013
EX-99.CERT 2 d539651dex99cert.htm CERTIFICATIONS PURSUANT TO SECTION 302 Certifications pursuant to Section 302

Item 12

Prudential Global Total Return Fund, Inc.

Semi-Annual period ending 4/30/13

File No. 811-04661

CERTIFICATIONS

I, Stuart S. Parker, certify that:

 

  1. I have reviewed this report on Form N-CSR of the above named Fund;

 

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report.

 

  4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and;

 

  d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


  5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a) All significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

June 20, 2013

 

/s/ Stuart S. Parker

Stuart S. Parker
President and Principal Executive Officer


Item 12

Prudential Global Total Return Fund, Inc.

Semi-Annual period ending 4/30/13

File No. 811-04661

CERTIFICATIONS

I, Grace C. Torres, certify that:

 

  1. I have reviewed this report on Form N-CSR of the above named Fund;

 

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report.

 

  4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

 

  a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and;

 

  d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


  5. The registrant’s other certifying officers and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  a) All significant deficiencies and material weaknesses in the design or operation of internal controls which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize, and report financial information; and

 

  b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

June 20, 2013

 

/s/ Grace C. Torres

Grace C. Torres
Treasurer and Principal Financial Officer
EX-99.906CERT 3 d539651dex99906cert.htm CERTIFICATIONS PURSUANT TO SECTION 906 Certifications pursuant to Section 906

Certification Pursuant to 18 U.S.C. Section 1350

As Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

Name of Issuer: Prudential Global Total Return Fund, Inc.

In connection with the Report on Form N-CSR of the above-named issuer that is accompanied by this certification, the undersigned hereby certifies, to his or her knowledge, that:

 

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Issuer.

 

June 20, 2013     

/s/ Stuart S. Parker

  
     Stuart S. Parker   
     President and Principal Executive Officer   
June 20, 2013     

/s/ Grace C. Torres

  
     Grace C. Torres   
     Treasurer and Principal Financial Officer   
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