N-CSRS 1 dncsrs.htm PRUDENTIAL INVESTMENT PORTFOLIOS 8 Prudential Investment Portfolios 8

 

 

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:   811-06677
Exact name of registrant as specified in charter:  

Prudential Investment Portfolios 8

f/k/a Dryden Index Series Fund

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:   9/30/2010
Date of reporting period:   3/31/2010

 

 

 


Item 1 – Reports to Stockholders


LOGO

 

SEMIANNUAL REPORT   MARCH 31, 2010

 

Prudential Stock Index Fund

(Formerly known as Dryden Stock Index Fund)

 

Fund Type

Large-cap stock

 

Objective

Provide investment results that correspond to the price and yield performance of the S&P 500 Index

     

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 March 31, 2010, were not audited

and, accordingly, no auditor’s opinion is

expressed on them.

 

Prudential Investments, Prudential Financial, and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.

 

LOGO

 

To enroll in e-delivery, go to

www.prudentialfunds.com/edelivery


 

 

May 14, 2010

 

Dear Shareholder:

 

Recently we announced the renaming of JennisonDryden, Prudential Financial’s mutual fund family, to Prudential Investments. As a result of this change, each of our funds has been renamed to feature “Prudential” as part of its new name. The name of your fund has changed from the Dryden Stock Index Fund to the Prudential Stock Index Fund.

 

While the name of your fund has changed, its investment objectives and portfolio management team remain the same. No action is required on your part. If you participate in an automatic investment plan, your account continues to be invested in the Fund under its new name.

 

Featuring the Prudential name in our funds creates an immediate connection to the experience and heritage of Prudential, a name recognized by millions for helping people grow and protect their wealth.

 

On the following pages, you will find your fund’s semiannual report, including a table showing fund performance over the first half of the fiscal year and for longer periods. The report also contains a listing of the fund’s holdings at period-end. If you have questions about your fund or the renaming of our mutual fund family, please contact your financial professional or visit our website at www.prudentialfunds.com.

 

Sincerely,

 

LOGO

 

Judy A. Rice, President

Prudential Investment Portfolios 8/Prudential Stock Index Fund

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   1


Your Fund’s Performance

 

 

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 3.25% (Class A shares). Gross operating expenses: Class A, 0.79%; Class B, 1.77%; Class C, 1.57%; Class I, 0.43%; Class Z, 0.49%. Net operating expenses apply to: Class A, 0.57%; Class B, 1.55%; Class C, 1.35%; Class I, 0.21%; Class Z, 0.27%, after contractual reduction through 1/31/2011.

 

Cumulative Total Returns (without sales charges) as of 3/31/10  
     Six Months     One Year     Five Years     Ten Years  

Class A

   11.58   49.05   7.46   –10.49

Class B

   10.97      47.95      3.40      –17.07   

Class C

   11.08      48.00      3.33      –17.11   

Class I

   11.77      49.64      9.39      –7.38   

Class Z

   11.72      49.51      8.98      –8.16   

S&P 500 Index

   11.75
  
  49.73
  
  9.97
  
  –6.35
  

Lipper Average

   11.47      49.02      7.29      –10.65   
        
Average Annual Total Returns (with sales charges) as of 3/31/10  
           One Year     Five Years     Ten Years  

Class A

         44.21   0.78   –1.43

Class B

         42.95      0.48      –1.85   

Class C

         47.00      0.66      –1.86   

Class I

         49.64      1.81      –0.76   

Class Z

         49.51      1.73      –0.85   

S&P 500 Index

         49.73
  
  1.92
  
  –0.65
  

Lipper Average

         49.02      1.41      –1.13   

 

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Source: Prudential Investments LLC and Lipper Inc. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of such fee waivers and/or expense reimbursements, total returns would be lower.

The average annual total returns take into account applicable sales charges. Class A, Class B, and Class C shares are subject to an annual distribution and service (12b-1) fee of up to 0.30%, 1.00%, and 1.00%, respectively. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class I and Class Z shares are not subject to a 12b-1 fee. Under certain circumstances, Class A shares may be subject to a contingent deferred sales charge (CDSC) of 1%. Class B and Class C shares are subject to a maximum CDSC of 5% and 1%, respectively. Class I and Class Z shares are not subject to a sales charge. 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

 

S&P 500 Index

The S&P 500 Index is an unmanaged index of 500 stocks of large U.S. public companies. It is a broad representation of how U.S. stock prices have performed.

 

Lipper EQ S&P 500 Index Objective Funds Average

The Lipper EQ S&P 500 Index Objective Funds Average (Lipper Average) represents returns based on the average return of all funds in the Lipper EQ S&P 500 Index Objective Funds category for the periods noted. Funds in the Lipper Average are passively managed, limited expense (management fee no higher than 0.50%) funds designed to replicate the performance of the S&P 500 Index on a reinvested basis.

 

Investors cannot invest directly in an index. The returns for the S&P 500 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 Investment Portfolios 8/Prudential Stock Index Fund   3


Your Fund’s Performance (continued)

 

 

S&P 500 Index as of 3/31/10

 

LOGO

 

Source: Factset.

 

“Standard & Poor’s®”, “S&P®”, “S&P 500®”, “Standard & Poor’s 500”, and “500” are trademarks of Standard & Poor’s Financial Services LLC and have been licensed for use by Prudential Investments LLC, its affiliates, and subsidiaries. The Prudential Stock Index Fund is not sponsored, endorsed, sold, or promoted by S&P and S&P makes no representation regarding the advisability of investing in the Fund.

 

The performance cited does not represent the performance of the Prudential Stock Index Fund. Past performance does not guarantee future results. Investors cannot invest directly in an index.

 

* Sector weightings are subject to change.

 

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Fees and Expenses (Unaudited)

 

 

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

 

The example is based on an investment of $1,000 invested on October 1, 2009, at the beginning of the period, and held through the six-month period ended March 31, 2010. 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 Investment 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 on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   5


Fees and Expenses (continued)

 

 

expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

 

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 Stock
Index Fund
  Beginning Account
Value
October 1, 2009
 

Ending Account
Value

March 31, 2010

  Annualized
Expense Ratio
Based on the
Six-Month Period
    Expenses  Paid
During the
Six-Month Period*
         
         
Class A   Actual   $ 1,000.00   $ 1,115.80   0.57   $ 3.01
    Hypothetical   $ 1,000.00   $ 1,022.09   0.57   $ 2.87
         
Class B   Actual   $ 1,000.00   $ 1,109.70   1.55   $ 8.15
    Hypothetical   $ 1,000.00   $ 1,017.20   1.55   $ 7.80
         
Class C   Actual   $ 1,000.00   $ 1,110.80   1.35   $ 7.10
    Hypothetical   $ 1,000.00   $ 1,018.20   1.35   $ 6.79
         
Class I   Actual   $ 1,000.00   $ 1,117.70   0.21   $ 1.11
    Hypothetical   $ 1,000.00   $ 1,023.88   0.21   $ 1.06
         
Class Z   Actual   $ 1,000.00   $ 1,117.20   0.27   $ 1.43
    Hypothetical   $ 1,000.00   $ 1,023.59   0.27   $ 1.36
         

* Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 182 days in the six-month period ended March 31, 2010, and divided by the 365 days in the Fund’s fiscal year ending September 30, 2010 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.

 

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Portfolio of Investments

 

as of March 31, 2010 (Unaudited)

 

Shares      Description    Value (Note 1)
       

LONG-TERM INVESTMENTS    97.1%

  

COMMON STOCKS    97.1%

  

Aerospace & Defense    2.9%

      
58,784     

Boeing Co. (The)

   $ 4,268,306
31,812     

General Dynamics Corp.

     2,455,887
10,499     

Goodrich Corp.

     740,390
61,615     

Honeywell International, Inc.

     2,789,311
14,272     

ITT Corp.

     765,122
9,500     

L-3 Communications Holdings, Inc.

     870,485
26,256     

Lockheed Martin Corp.

     2,185,024
25,848     

Northrop Grumman Corp.

     1,694,853
9,900     

Precision Castparts Corp.

     1,254,429
30,844     

Raytheon Co.

     1,761,809
11,463     

Rockwell Collins, Inc.

     717,469
75,740     

United Technologies Corp.

     5,575,222
           
          25,078,307

Air Freight & Logistics    1.0%

      
12,600     

C.H. Robinson Worldwide, Inc.

     703,710
17,100     

Expeditors International of Washington, Inc.

     631,332
25,216     

FedEx Corp.

     2,355,174
80,400     

United Parcel Service, Inc. (Class B Stock)

     5,178,564
           
          8,868,780

Airlines    0.1%

      
56,774     

Southwest Airlines Co.

     750,552

Auto Components    0.2%

      
19,671     

Goodyear Tire & Rubber Co. (The)(a)

     248,641
57,056     

Johnson Controls, Inc.

     1,882,278
           
          2,130,919

Automobiles    0.4%

      
264,038     

Ford Motor Co.(a)(b)

     3,318,958
17,300     

Harley-Davidson, Inc.

     485,611
           
          3,804,569

Beverages    2.5%

      
8,020     

Brown-Forman Corp. (Class B Stock)

     476,789
185,632     

Coca-Cola Co. (The)

     10,209,760
26,400     

Coca-Cola Enterprises, Inc.

     730,224
13,500     

Constellation Brands, Inc. (Class A Stock)(a)(b)

     221,940

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   7

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Beverages (cont’d.)

      
19,200     

Dr Pepper Snapple Group, Inc.

   $ 675,264
12,494     

Molson Coors Brewing Co. (Class B Stock)

     525,498
129,251     

PepsiCo, Inc.

     8,551,246
           
          21,390,721

Biotechnology    1.5%

      
80,904     

Amgen, Inc.(a)

     4,834,823
24,120     

Biogen Idec, Inc.(a)

     1,383,523
35,100     

Celgene Corp.(a)

     2,174,796
5,800     

Cephalon, Inc.(a)

     393,124
18,200     

Genzyme Corp.(a)

     943,306
72,200     

Gilead Sciences, Inc.(a)

     3,283,656
           
          13,013,228

Building Products

      
24,926     

Masco Corp.

     386,851

Capital Markets    2.6%

      
21,271     

Ameriprise Financial, Inc.

     964,852
96,038     

Bank of New York Mellon Corp. (The)(b)

     2,965,653
73,311     

Charles Schwab Corp. (The)(b)

     1,370,183
56,400     

E*Trade Financial Corp.(a)

     93,060
8,100     

Federated Investors, Inc. (Class B Stock)(b)

     213,678
12,214     

Franklin Resources, Inc.

     1,354,533
41,000     

Goldman Sachs Group, Inc. (The)

     6,995,830
33,500     

Invesco Ltd.(b)

     733,985
14,500     

Janus Capital Group, Inc.(b)

     207,205
14,300     

Legg Mason, Inc.

     409,981
111,036     

Morgan Stanley

     3,252,244
19,062     

Northern Trust Corp.

     1,053,366
39,462     

State Street Corp.

     1,781,315
20,000     

T. Rowe Price Group, Inc.

     1,098,600
           
          22,494,485

Chemicals    1.8%

      
17,332     

Air Products & Chemicals, Inc.

     1,281,701
6,200     

Airgas, Inc.

     394,444
3,800     

CF Industries Holdings, Inc.

     346,484
91,836     

Dow Chemical Co. (The)

     2,715,591
71,344     

E.I. du Pont de Nemours & Co.

     2,656,851

 

See Notes to Financial Statements.

 

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Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Chemicals (cont’d.)

      
6,693     

Eastman Chemical Co.

   $ 426,210
19,482     

Ecolab, Inc.

     856,234
4,500     

FMC Corp.

     272,430
6,375     

International Flavors & Fragrances, Inc.

     303,896
40,884     

Monsanto Co.

     2,919,935
13,874     

PPG Industries, Inc.

     907,360
23,958     

Praxair, Inc.

     1,988,514
10,132     

Sigma-Aldrich Corp.

     543,683
           
          15,613,333

Commercial Banks    3.0%

      
53,958     

BB&T Corp.

     1,747,700
11,861     

Comerica, Inc.

     451,192
66,073     

Fifth Third Bancorp

     897,932
16,744     

First Horizon National Corp.(a)

     235,258
61,229     

Huntington Bancshares, Inc.

     328,800
73,535     

KeyCorp

     569,896
5,200     

M&T Bank Corp.(b)

     412,776
38,099     

Marshall & Ilsley Corp.

     306,697
41,402     

PNC Financial Services Group, Inc.

     2,471,699
93,074     

Regions Financial Corp.

     730,631
41,683     

SunTrust Banks, Inc.

     1,116,687
153,195     

U.S. Bancorp

     3,964,687
407,316     

Wells Fargo & Co.

     12,675,674
15,300     

Zions Bancorporation

     333,846
           
          26,243,475

Commercial Services & Supplies    0.5%

      
8,068     

Avery Dennison Corp.(b)

     293,756
11,000     

Cintas Corp.

     308,990
13,900     

Iron Mountain, Inc.(b)

     380,860
15,525     

Pitney Bowes, Inc.(b)

     379,586
18,040     

R.R. Donnelley & Sons Co.(b)

     385,154
27,475     

Republic Services, Inc.

     797,324
6,600     

Stericycle, Inc.(a)

     359,700
38,313     

Waste Management, Inc.(b)

     1,319,117
           
          4,224,487

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   9

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Communications Equipment    2.4%

      
458,544     

Cisco Systems, Inc.(a)

   $ 11,935,900
10,000     

Harris Corp.(b)

     474,900
20,187     

JDS Uniphase Corp.(a)

     252,943
43,400     

Juniper Networks, Inc.(a)

     1,331,512
184,913     

Motorola, Inc.(a)

     1,298,089
132,800     

QUALCOMM, Inc.

     5,576,272
32,994     

Tellabs, Inc.

     249,765
           
          21,119,381

Computers & Peripherals    5.6%

      
71,924     

Apple, Inc.(a)

     16,897,105
135,840     

Dell, Inc.(a)

     2,038,959
164,204     

EMC Corp.(a)

     2,962,240
190,602     

Hewlett-Packard Co.

     10,130,496
104,334     

International Business Machines Corp.

     13,380,836
6,552     

Lexmark International, Inc. (Class A Stock)(a)

     236,396
27,300     

NetApp, Inc.(a)

     888,888
6,700     

QLogic Corp.(a)

     136,010
19,600     

SanDisk Corp.(a)

     678,748
14,600     

Teradata Corp.(a)

     421,794
17,700     

Western Digital Corp.(a)

     690,123
           
          48,461,595

Construction & Engineering    0.2%

      
13,974     

Fluor Corp.

     649,931
10,400     

Jacobs Engineering Group, Inc.(a)

     469,976
12,800     

Quanta Services, Inc.(a)

     245,248
           
          1,365,155

Construction Materials

      
7,900     

Vulcan Materials Co.

     373,196

Consumer Finance    0.8%

      
96,259     

American Express Co.

     3,971,646
37,066     

Capital One Financial Corp.

     1,534,903
44,618     

Discover Financial Services

     664,808
42,492     

SLM Corp.(a)

     532,000
           
          6,703,357

 

See Notes to Financial Statements.

 

10   Visit our website at www.prudentialfunds.com

 


 

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Containers & Packaging    0.2%

      
7,732     

Ball Corp.

   $ 412,734
8,210     

Bemis Co., Inc.

     235,791
12,900     

Owens-Illinois, Inc.(a)

     458,466
10,458     

Pactiv Corp.(a)

     263,333
14,236     

Sealed Air Corp.

     300,095
           
          1,670,419

Distributors    0.1%

      
13,099     

Genuine Parts Co.

     553,302

Diversified Consumer Services    0.2%

      
11,000     

Apollo Group, Inc. (Class A Stock)(a)

     674,190
4,700     

DeVry, Inc.

     306,440
26,420     

H&R Block, Inc.

     470,276
           
          1,450,906

Diversified Financial Services    4.5%

      
797,395     

Bank of America Corp.

     14,233,501
1,557,955     

Citigroup, Inc.(a)(b)

     6,309,717
5,390     

CME Group, Inc.

     1,703,833
5,900     

IntercontinentalExchange, Inc.(a)

     661,862
315,293     

JPMorgan Chase & Co.

     14,109,362
15,800     

Leucadia National Corp.(a)

     391,998
15,476     

Moody’s Corp.(b)

     460,411
12,300     

NASDAQ OMX Group, Inc. (The)(a)

     259,776
22,000     

NYSE Euronext

     651,420
           
          38,781,880

Diversified Telecommunication Services    2.5%

      
473,531     

AT&T, Inc.

     12,236,041
23,672     

CenturyTel, Inc.

     839,409
28,600     

Frontier Communications Corp.(b)

     212,784
115,736     

Qwest Communications International, Inc.

     604,142
224,733     

Verizon Communications, Inc.(b)

     6,971,218
36,577     

Windstream Corp.

     398,323
           
          21,261,917

Electric Utilities    1.8%

      
15,300     

Allegheny Energy, Inc.

     351,900
38,191     

American Electric Power Co., Inc.

     1,305,368

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   11

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Electric Utilities (cont’d.)

      
105,769     

Duke Energy Corp.

   $ 1,726,150
25,762     

Edison International

     880,288
15,715     

Entergy Corp.

     1,278,415
54,056     

Exelon Corp.

     2,368,193
25,706     

FirstEnergy Corp.(b)

     1,004,848
34,272     

FPL Group, Inc.

     1,656,366
11,500     

Northeast Utilities

     317,860
18,400     

Pepco Holdings, Inc.

     315,560
7,900     

Pinnacle West Capital Corp.

     298,067
31,252     

PPL Corp.

     865,993
22,358     

Progress Energy, Inc.

     880,011
63,915     

Southern Co. (The)

     2,119,421
           
          15,368,440

Electrical Equipment    0.5%

      
61,250     

Emerson Electric Co.

     3,083,325
2,700     

First Solar, Inc.(a)(b)

     331,155
11,363     

Rockwell Automation, Inc.(b)

     640,419
5,800     

Roper Industries, Inc.

     335,472
           
          4,390,371

Electronic Equipment & Instruments    0.6%

      
27,398     

Agilent Technologies, Inc.(a)(b)

     942,217
13,100     

Amphenol Corp. (Class A Stock)(b)

     552,689
126,597     

Corning, Inc.

     2,558,526
9,800     

FLIR Systems, Inc.(a)(b)

     276,360
19,500     

Jabil Circuit, Inc.

     315,705
9,050     

Molex, Inc.

     188,783
           
          4,834,280

Energy Equipment & Services    1.7%

      
24,579     

Baker Hughes, Inc.(b)

     1,151,281
20,400     

BJ Services Co.

     436,560
20,000     

Cameron International Corp.(a)

     857,200
6,100     

Diamond Offshore Drilling, Inc.(b)

     541,741
9,300     

FMC Technologies, Inc.(a)(b)

     601,059
71,122     

Halliburton Co.

     2,142,906
8,800     

Helmerich & Payne, Inc.

     335,104
23,200     

Nabors Industries Ltd.(a)(b)

     455,416
33,200     

National Oilwell Varco, Inc.

     1,347,256

 

See Notes to Financial Statements.

 

12   Visit our website at www.prudentialfunds.com

 


 

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Energy Equipment & Services (cont’d.)

      
10,410     

Rowan Cos., Inc.(a)(b)

   $ 303,035
95,442     

Schlumberger Ltd.

     6,056,749
15,800     

Smith International, Inc.

     676,556
           
          14,904,863

Food & Staples Retailing    2.6%

      
35,208     

Costco Wholesale Corp.

     2,102,270
108,999     

CVS Caremark Corp.

     3,985,003
52,734     

Kroger Co. (The)

     1,142,218
30,000     

Safeway, Inc.

     745,800
17,878     

SUPERVALU, Inc.

     298,205
46,280     

Sysco Corp.

     1,365,260
79,178     

Walgreen Co.

     2,936,712
172,926     

Wal-Mart Stores, Inc.

     9,614,686
10,200     

Whole Foods Market, Inc.(a)

     368,730
           
          22,558,884

Food Products    1.8%

      
50,159     

Archer-Daniels-Midland Co.

     1,449,595
13,947     

Campbell Soup Co.

     493,026
36,743     

ConAgra Foods, Inc.

     921,147
15,400     

Dean Foods Co.(a)(b)

     241,626
26,572     

General Mills, Inc.

     1,881,032
26,114     

H.J. Heinz Co.

     1,191,060
12,916     

Hershey Co. (The)

     552,934
4,500     

Hormel Foods Corp.

     189,045
10,100     

J.M. Smucker Co. (The)

     608,626
20,970     

Kellogg Co.

     1,120,427
135,466     

Kraft Foods, Inc. (Class A Stock)

     4,096,492
11,300     

McCormick & Co., Inc.(b)

     433,468
14,366     

Mead Johnson Nutrition Co.

     747,453
57,086     

Sara Lee Corp.

     795,208
24,900     

Tyson Foods, Inc. (Class A Stock)

     476,835
           
          15,197,974

Gas Utilities    0.1%

      
8,500     

EQT Corp.

     348,500
3,300     

Nicor, Inc.

     138,336

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   13

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Gas Utilities (Cont’d.)

      
5,400     

ONEOK, Inc.

   $ 246,510
11,700     

Questar Corp.

     505,440
           
          1,238,786

Healthcare Equipment & Supplies    1.9%

      
47,974     

Baxter International, Inc.

     2,792,087
20,112     

Becton, Dickinson and Co.

     1,583,418
121,772     

Boston Scientific Corp.(a)

     879,194
7,612     

C.R. Bard, Inc.

     659,351
14,187     

CareFusion Corp.(a)

     374,949
11,300     

DENTSPLY International, Inc.

     393,805
13,707     

Hospira, Inc.(a)

     776,502
3,400     

Intuitive Surgical, Inc.(a)(b)

     1,183,642
89,758     

Medtronic, Inc.

     4,041,803
26,764     

St. Jude Medical, Inc.(a)

     1,098,662
22,900     

Stryker Corp.

     1,310,338
9,700     

Varian Medical Systems, Inc.(a)(b)

     536,701
17,311     

Zimmer Holdings, Inc.(a)

     1,024,811
           
          16,655,263

Healthcare Providers & Services    2.1%

      
34,272     

Aetna, Inc.

     1,203,290
22,800     

AmerisourceBergen Corp.

     659,376
28,873     

Cardinal Health, Inc.

     1,040,294
22,691     

CIGNA Corp.

     830,037
11,650     

Coventry Health Care, Inc.(a)

     287,988
8,100     

DaVita, Inc.(a)

     513,540
20,300     

Express Scripts, Inc.(a)

     2,065,728
13,710     

Humana, Inc.(a)

     641,216
8,800     

Laboratory Corp. of America Holdings(a)(b)

     666,248
21,476     

McKesson Corp.

     1,411,403
38,368     

Medco Health Solutions, Inc.(a)

     2,477,038
7,600     

Patterson Cos., Inc.

     235,980
13,000     

Quest Diagnostics, Inc.

     757,770
23,472     

Tenet Healthcare Corp.(a)

     134,260
92,248     

UnitedHealth Group, Inc.

     3,013,742
37,000     

WellPoint, Inc.(a)

     2,382,060
           
          18,319,970

 

See Notes to Financial Statements.

 

14   Visit our website at www.prudentialfunds.com

 


 

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Home Builders    0.1%

      
20,000     

D.R. Horton, Inc.(b)

   $ 252,000
10,800     

Lennar Corp. (Class A Stock)

     185,868
17,411     

PulteGroup, Inc.(a)(b)

     195,876
           
          633,744

Hotels, Restaurants & Leisure    1.5%

      
30,000     

Carnival Corp.

     1,166,400
11,653     

Darden Restaurants, Inc.

     519,025
17,800     

International Game Technology

     328,410
20,570     

Marriott International, Inc. (Class A Stock)(b)

     648,366
86,730     

McDonald’s Corp.

     5,786,626
59,900     

Starbucks Corp.(a)

     1,453,773
15,800     

Starwood Hotels & Resorts Worldwide, Inc.(b)

     736,912
14,151     

Wyndham Worldwide Corp.

     364,105
4,300     

Wynn Resorts Ltd.

     326,069
38,564     

Yum! Brands, Inc.

     1,478,158
           
          12,807,844

Household Durables    0.3%

      
13,108     

Fortune Brands, Inc.

     635,869
5,900     

Harman International Industries, Inc.(a)

     276,002
14,800     

Leggett & Platt, Inc.

     320,272
26,327     

Newell Rubbermaid, Inc.

     400,170
11,988     

Stanley Black & Decker, Inc.

     688,231
5,885     

Whirlpool Corp.

     513,466
           
          2,834,010

Household Products    2.4%

      
11,032     

Clorox Co.

     707,593
39,730     

Colgate-Palmolive Co.

     3,387,380
33,216     

Kimberly-Clark Corp.

     2,088,622
233,323     

Procter & Gamble Co. (The)

     14,762,346
           
          20,945,941

Independent Power Producers & Energy Traders    0.2%

      
54,100     

AES Corp. (The)(a)

     595,100
15,829     

Constellation Energy Group, Inc.

     555,756
16,600     

NRG Energy, Inc.(a)(b)

     346,940
           
          1,497,796

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   15

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Industrial Conglomerates    2.4%

      
57,198     

3M Co.

   $ 4,780,037
850,272     

General Electric Co.

     15,474,950
15,934     

Textron, Inc.(b)

     338,279
           
          20,593,266

Insurance    3.8%

      
38,100     

Aflac, Inc.

     2,068,449
42,708     

Allstate Corp. (The)

     1,379,896
7,601     

American International Group, Inc.(a)(b)

     259,498
22,389     

Aon Corp.

     956,234
9,800     

Assurant, Inc.

     336,924
131,000     

Berkshire Hathaway, Inc. (Class B Stock)(a)(b)

     10,646,370
26,768     

Chubb Corp.

     1,387,921
12,407     

Cincinnati Financial Corp.

     358,562
39,000     

Genworth Financial, Inc.(a)

     715,260
31,053     

Hartford Financial Services Group, Inc. (The)

     882,526
23,851     

Lincoln National Corp.

     732,226
28,117     

Loews Corp.

     1,048,202
43,240     

Marsh & McLennan Cos., Inc.

     1,055,921
65,000     

MetLife, Inc.

     2,817,100
25,700     

Principal Financial Group, Inc.(b)

     750,697
53,816     

Progressive Corp. (The)

     1,027,347
39,100     

Prudential Financial, Inc.(e)

     2,365,550
5,415     

Torchmark Corp.

     289,757
43,411     

Travelers Cos., Inc. (The)

     2,341,589
27,826     

Unum Group

     689,250
26,400     

XL Capital Ltd. (Class A Stock)

     498,960
           
          32,608,239

Internet & Catalog Retail    0.6%

      
26,600     

Amazon.com, Inc.(a)

     3,610,418
16,300     

Expedia, Inc.

     406,848
3,500     

priceline.com, Inc.(a)

     892,500
           
          4,909,766

Internet Software & Services    1.8%

      
13,800     

Akamai Technologies, Inc.(a)

     433,458
87,600     

eBay, Inc.(a)

     2,360,820
19,400     

Google, Inc. (Class A Stock)(a)

     10,999,994
12,000     

Monster Worldwide, Inc.(a)(b)

     199,320

 

See Notes to Financial Statements.

 

16   Visit our website at www.prudentialfunds.com

 


 

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Internet Software & Services (cont’d.)

      
14,600     

VeriSign, Inc.(a)(b)

   $ 379,746
93,800     

Yahoo!, Inc.(a)

     1,550,514
           
          15,923,852

IT Services    1.4%

      
39,678     

Automatic Data Processing, Inc.

     1,764,481
23,300     

Cognizant Technology Solutions Corp. (Class A Stock)(a)

     1,187,834
12,551     

Computer Sciences Corp.(a)

     683,904
24,500     

Fidelity National Information Services, Inc.

     574,280
11,800     

Fiserv, Inc.(a)

     598,968
7,500     

Mastercard, Inc. (Class A Stock)(b)

     1,905,000
26,125     

Paychex, Inc.(b)

     802,037
18,200     

SAIC, Inc.(a)

     322,140
15,371     

Total System Services, Inc.

     240,710
37,300     

Visa, Inc. (Class A Stock)

     3,395,419
53,652     

Western Union Co. (The)

     909,938
           
          12,384,711

Leisure Equipment & Products    0.1%

      
20,000     

Eastman Kodak Co.(a)

     115,800
9,654     

Hasbro, Inc.

     369,555
28,113     

Mattel, Inc.

     639,290
           
          1,124,645

Life Sciences Tools & Services    0.4%

      
14,652     

Life Technologies Corp.(a)

     765,860
4,461     

Millipore Corp.(a)(b)

     471,081
9,670     

PerkinElmer, Inc.

     231,113
33,702     

Thermo Fisher Scientific, Inc.(a)

     1,733,631
7,600     

Waters Corp.(a)(b)

     513,304
           
          3,714,989

Machinery    1.6%

      
47,556     

Caterpillar, Inc.(b)

     2,988,895
16,016     

Cummins, Inc.

     992,191
20,900     

Danaher Corp.

     1,670,119
35,080     

Deere & Co.

     2,085,857
15,862     

Dover Corp.

     741,548
13,254     

Eaton Corp.

     1,004,256
4,500     

Flowserve Corp.

     496,215

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   17

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Machinery (cont’d.)

      
31,436     

Illinois Tool Works, Inc.

   $ 1,488,809
28,264     

PACCAR, Inc.(b)

     1,224,962
10,704     

Pall Corp.

     433,405
13,238     

Parker Hannifin Corp.

     857,028
4,742     

Snap-On, Inc.

     205,518
           
          14,188,803

Media    3.0%

      
52,476     

CBS Corp. (Class B Stock)

     731,515
234,285     

Comcast Corp. (Class A Stock)

     4,409,244
75,500     

DIRECTV (Class A Stock)(a)

     2,552,655
21,800     

Discovery Communications, Inc. (Class A Stock)(a)(b)

     736,622
20,589     

Gannett Co., Inc.

     340,130
31,812     

Interpublic Group of Cos., Inc.(a)(b)

     264,676
26,100     

McGraw-Hill Cos., Inc. (The)

     930,465
3,096     

Meredith Corp.

     106,533
7,000     

New York Times Co. (The) (Class A Stock)(a)

     77,910
179,600     

News Corp. (Class A Stock)

     2,588,036
25,134     

Omnicom Group, Inc.

     975,451
7,500     

Scripps Networks Interactive, Inc. (Class A Stock)

     332,625
93,474     

Time Warner, Inc.

     2,922,932
27,081     

Time Warner Cable, Inc.

     1,443,688
48,776     

Viacom, Inc. (Class B Stock)(a)

     1,676,919
153,413     

Walt Disney Co. (The)

     5,355,648
400     

Washington Post Co. (The) (Class B Stock)

     177,672
           
          25,622,721

Metals & Mining    1.1%

      
11,000     

AK Steel Holding Corp.

     251,460
80,644     

Alcoa, Inc.

     1,148,371
7,918     

Allegheny Technologies, Inc.(b)

     427,493
8,700     

Cliffs Natural Resources, Inc.

     617,265
36,546     

Freeport-McMoRan Copper & Gold, Inc.

     3,053,053
39,497     

Newmont Mining Corp.

     2,011,582
25,012     

Nucor Corp.

     1,135,044
3,000     

Titanium Metals Corp.(a)

     49,770
11,809     

United States Steel Corp.

     750,108
           
          9,444,146

 

See Notes to Financial Statements.

 

18   Visit our website at www.prudentialfunds.com

 


 

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Multiline Retail    0.9%

      
5,424     

Big Lots, Inc.(a)

   $ 197,542
11,100     

Family Dollar Stores, Inc.

     406,371
19,284     

J.C. Penney Co., Inc.

     620,367
24,300     

Kohl’s Corp.(a)

     1,331,154
34,782     

Macy’s, Inc.

     757,204
13,400     

Nordstrom, Inc.

     547,390
2,607     

Sears Holdings Corp.(a)(b)

     282,677
61,682     

Target Corp.

     3,244,473
           
          7,387,178

Multi-Utilities    1.2%

      
18,769     

Ameren Corp.

     489,496
29,779     

CenterPoint Energy, Inc.

     427,626
22,100     

CMS Energy Corp.(b)

     341,666
22,051     

Consolidated Edison, Inc.

     982,152
49,004     

Dominion Resources, Inc.

     2,014,554
13,987     

DTE Energy Co.

     623,820
6,208     

Integrys Energy Group, Inc.

     294,135
19,600     

NiSource, Inc.

     309,680
29,752     

PG&E Corp.

     1,262,080
41,194     

Public Service Enterprise Group, Inc.

     1,216,047
7,600     

SCANA Corp.

     285,684
20,698     

Sempra Energy

     1,032,830
15,900     

TECO Energy, Inc.(b)

     252,651
9,400     

Wisconsin Energy Corp.

     464,454
37,883     

Xcel Energy, Inc.

     803,120
           
          10,799,995

Office Electronics    0.1%

      
109,500     

Xerox Corp.

     1,067,625

Oil, Gas & Consumable Fuels    8.8%

      
39,336     

Anadarko Petroleum Corp.

     2,864,841
26,848     

Apache Corp.

     2,725,072
7,900     

Cabot Oil & Gas Corp.

     290,720
53,900     

Chesapeake Energy Corp.

     1,274,196
161,892     

Chevron Corp.

     12,276,270
119,057     

ConocoPhillips

     6,092,147
14,400     

Consol Energy, Inc.

     614,304
24,500     

Denbury Resources, Inc.(a)(b)

     413,315

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   19

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Oil, Gas & Consumable Fuels (cont’d.)

      
35,200     

Devon Energy Corp.

   $ 2,267,936
57,804     

El Paso Corp.

     626,595
18,300     

EOG Resources, Inc.

     1,700,802
377,614     

Exxon Mobil Corp.

     25,292,586
23,134     

Hess Corp.

     1,447,032
56,278     

Marathon Oil Corp.

     1,780,636
6,800     

Massey Energy Co.(b)

     355,572
15,000     

Murphy Oil Corp.

     842,850
13,700     

Noble Energy, Inc.

     1,000,100
64,376     

Occidental Petroleum Corp.

     5,442,347
22,200     

Peabody Energy Corp.

     1,014,540
8,800     

Pioneer Natural Resources Co.

     495,616
13,000     

Range Resources Corp.

     609,310
27,500     

Southwestern Energy Co.(a)

     1,119,800
51,584     

Spectra Energy Corp.

     1,162,187
10,128     

Sunoco, Inc.

     300,903
8,400     

Tesoro Corp.

     116,760
47,200     

Valero Energy Corp.

     929,840
45,792     

Williams Cos., Inc. (The)

     1,057,795
46,616     

XTO Energy, Inc.

     2,199,343
           
          76,313,415

Paper & Forest Products    0.2%

      
35,784     

International Paper Co.

     880,644
14,735     

MeadWestvaco Corp.

     376,479
17,500     

Weyerhaeuser Co.

     792,225
           
          2,049,348

Personal Products    0.2%

      
33,244     

Avon Products, Inc.(b)

     1,125,974
9,400     

Estee Lauder Cos., Inc. (The) (Class A Stock)

     609,778
           
          1,735,752

Pharmaceuticals    5.9%

      
123,674     

Abbott Laboratories

     6,515,146
24,464     

Allergan, Inc.

     1,597,989
137,179     

Bristol-Myers Squibb Co.

     3,662,681
81,997     

Eli Lilly & Co.(b)

     2,969,931
25,800     

Forest Laboratories, Inc.(a)

     809,088
219,369     

Johnson & Johnson

     14,302,859

 

See Notes to Financial Statements.

 

20   Visit our website at www.prudentialfunds.com

 


 

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Pharmaceuticals (cont’d.)

      
20,533     

King Pharmaceuticals, Inc.(a)

   $ 241,468
244,233     

Merck & Co., Inc.

     9,122,103
22,700     

Mylan, Inc.(a)(b)

     515,517
646,823     

Pfizer, Inc.

     11,093,014
8,700     

Watson Pharmaceuticals, Inc.(a)

     363,399
           
          51,193,195

Professional Services    0.1%

      
3,900     

Dun & Bradstreet Corp. (The)

     290,238
9,430     

Equifax, Inc.

     337,594
13,600     

Robert Half International, Inc.(b)

     413,848
           
          1,041,680

Real Estate Investment Trust    1.2%

      
11,780     

Apartment Investment & Management Co. (Class A Stock)

     216,870
6,911     

AvalonBay Communities, Inc.(b)

     596,765
11,200     

Boston Properties, Inc.(b)

     844,928
22,700     

Equity Residential(b)

     888,705
23,000     

HCP, Inc.

     759,000
9,600     

Health Care REIT, Inc.(b)

     434,208
51,336     

Host Hotels & Resorts, Inc.(b)

     752,072
31,000     

Kimco Realty Corp.(b)

     484,840
12,600     

Plum Creek Timber Co., Inc.

     490,266
38,400     

ProLogis

     506,880
9,900     

Public Storage(b)

     910,701
22,339     

Simon Property Group, Inc.

     1,874,242
13,200     

Ventas, Inc.

     626,736
12,584     

Vornado Realty Trust(b)

     952,609
           
          10,338,822

Real Estate Management & Development

      
17,300     

C.B. Richard Ellis Group, Inc. (Class A Stock)(a)

     274,205

Road & Rail    0.7%

      
31,106     

CSX Corp.

     1,583,295
30,011     

Norfolk Southern Corp.

     1,677,315
5,121     

Ryder System, Inc.

     198,490
40,258     

Union Pacific Corp.

     2,950,912
           
          6,410,012

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   21

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Semiconductors & Semiconductor Equipment    2.5%

      
45,124     

Advanced Micro Devices, Inc.(a)

   $ 418,300
24,500     

Altera Corp.

     595,595
23,600     

Analog Devices, Inc.

     680,152
107,888     

Applied Materials, Inc.

     1,454,330
35,300     

Broadcom Corp. (Class A Stock)(b)

     1,171,254
446,488     

Intel Corp.

     9,938,823
11,320     

KLA-Tencor Corp.

     350,014
17,500     

Linear Technology Corp.

     494,900
54,644     

LSI Corp.(a)

     334,421
15,300     

MEMC Electronic Materials, Inc.(a)

     234,549
14,200     

Microchip Technology, Inc.(b)

     399,872
63,616     

Micron Technology, Inc.(a)

     660,970
15,452     

National Semiconductor Corp.

     223,281
9,400     

Novellus Systems, Inc.(a)(b)

     235,000
45,800     

NVIDIA Corp.(a)

     796,004
14,100     

Teradyne, Inc.(a)(b)

     157,497
104,752     

Texas Instruments, Inc.

     2,563,282
22,200     

Xilinx, Inc.

     566,100
           
          21,274,344

Software    4.0%

      
41,740     

Adobe Systems, Inc.(a)

     1,476,344
19,320     

Autodesk, Inc.(a)

     568,394
15,100     

BMC Software, Inc.(a)

     573,800
32,758     

CA, Inc.

     768,830
15,400     

Citrix Systems, Inc.(a)(b)

     731,038
16,600     

Compuware Corp.(a)

     139,440
23,300     

Electronic Arts, Inc.(a)

     434,778
29,400     

Intuit, Inc.(a)

     1,009,596
12,400     

McAfee, Inc.(a)

     497,612
612,112     

Microsoft Corp.

     17,916,518
29,602     

Novell, Inc.(a)

     177,316
310,840     

Oracle Corp.

     7,985,480
15,600     

Red Hat, Inc.(a)(b)

     456,612
7,300     

Salesforce.com, Inc.(a)

     543,485
71,917     

Symantec Corp.(a)

     1,216,836
           
          34,496,079

 

See Notes to Financial Statements.

 

22   Visit our website at www.prudentialfunds.com

 


 

 

Shares      Description    Value (Note 1)
       

COMMON STOCKS (Continued)

  

Specialty Retail    2.0%

      
7,400     

Abercrombie & Fitch Co. (Class A Stock)

   $ 337,736
7,823     

AutoNation, Inc.(a)(b)

     141,440
2,300     

AutoZone, Inc.(a)(b)

     398,107
22,400     

Bed Bath & Beyond, Inc.(a)(b)

     980,224
28,600     

Best Buy Co., Inc.(b)

     1,216,644
13,900     

GameStop Corp. (Class A Stock)(a)(b)

     304,549
44,813     

Gap, Inc. (The)

     1,035,628
136,484     

Home Depot, Inc. (The)

     4,415,257
21,422     

Limited Brands, Inc.

     527,410
119,696     

Lowe’s Cos., Inc.

     2,901,431
28,200     

Office Depot, Inc.(a)

     225,036
7,000     

O’Reilly Automotive, Inc.(a)(b)

     291,970
9,854     

RadioShack Corp.(b)

     222,996
7,700     

Ross Stores, Inc.

     411,719
7,716     

Sherwin-Williams Co. (The)

     522,219
58,625     

Staples, Inc.

     1,371,239
9,100     

Tiffany & Co.

     432,159
35,032     

TJX Cos., Inc.

     1,489,561
6,700     

Urban Outfitters, Inc.(a)

     254,801
           
          17,480,126

Textiles, Apparel & Luxury Goods    0.5%

      
29,900     

Coach, Inc.

     1,181,648
31,676     

NIKE, Inc. (Class B Stock)

     2,328,186
5,100     

Polo Ralph Lauren Corp.

     433,704
6,934     

V.F. Corp.

     555,760
           
          4,499,298

Thrifts & Mortgage Finance    0.1%

      
44,400     

Hudson City Bancorp, Inc.

     628,704
28,700     

People’s United Financial, Inc.(b)

     448,868
           
          1,077,572

Tobacco    1.5%

      
166,979     

Altria Group, Inc.

     3,426,409
13,260     

Lorillard, Inc.

     997,682
149,779     

Philip Morris International, Inc.

     7,812,473
13,100     

Reynolds American, Inc.

     707,138
           
          12,943,702

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   23

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

Shares      Description    Value (Note 1)  
       

COMMON STOCKS (Continued)

  

Trading Companies & Distributors    0.1%

        
8,700     

Fastenal Co.(b)

   $ 417,513   
5,074     

W.W. Grainger, Inc.

     548,601   
             
          966,114   

Wireless Telecommunication Services    0.3%

        
31,200     

American Tower Corp. (Class A Stock)(a)

     1,329,432   
15,700     

MetroPCS Communications, Inc.(a)(b)

     111,156   
249,274     

Sprint Nextel Corp.(a)

     947,241   
             
          2,387,829   
    

TOTAL LONG-TERM INVESTMENTS
(cost $485,340,947)

     842,180,410   
             

SHORT-TERM INVESTMENTS    10.8%

  

Affiliated Money Market Mutual Fund    10.4%

        
90,339,976     

Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund
(cost $90,339,976; includes $66,412,040 of cash collateral received for securities on loan) (Note 3)(c)(d)(e)

     90,339,976   
             
Principal
Amount (000)
      

U.S. Treasury Security    0.4%

  

    

U.S. Treasury Bill

  
$ 3,000     

0.146%, 6/17/10
(cost $2,999,075)(f)(g)

     2,999,070   
             
    

TOTAL SHORT-TERM INVESTMENTS
(cost $93,339,051)

     93,339,046   
             
    

TOTAL INVESTMENTS    107.9%
(cost $578,679,998; Note 5)

     935,519,456   
    

Liabilities in excess of other assets(h)    (7.9%)

     (68,472,910
             
    

NET ASSETS    100.0%

   $ 867,046,546   
             

 

See Notes to Financial Statements.

 

24   Visit our website at www.prudentialfunds.com

 


 

 

 

(a) Non-income producing security.
(b) All or a portion of security is on loan. The aggregate market value of such securities is $64,187,187; cash collateral of $66,412,040 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments.
(c) Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2-Prudential Core Taxable Money Market Fund.
(d) Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.
(e) Affiliated security.
(f) Rate quoted represents yield-to-maturity as of purchase date.
(g) Security segregated as collateral for future contracts.
(h) Liabilities in excess of other assets include net unrealized appreciation on financial futures contracts as follows:

 

Open futures contracts outstanding at March 31, 2010:

 

Number of
Contracts
  Type   Expiration
Date
  Value at
Trade
Date
  Value at
March 31,
2010
  Unrealized
Appreciation
  Long Position:        
90   S&P 500 Index Futures   Jun. 10   $ 25,888,660   $ 26,217,000   $ 328,340
             

 

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 in active markets for identical securities

 

Level 2—other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)

 

Level 3—significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   25

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

The following is a summary of the inputs used as of March 31, 2010 in valuing the Fund’s assets carried at fair value:

 

      Level 1    Level 2    Level 3

Investments in Securities

        

Common Stocks

   $ 842,180,410    $    $   —

U.S. Treasury Security

          2,999,070     

Affiliated Money Market Mutual Fund

     90,339,976          
                    
     932,520,386      2,999,070     

Other Financial Instruments*

     328,340          
                    

Total

   $ 932,848,726    $ 2,999,070    $
                    

 

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

 

As of March 31, 2010 and September 30, 2009, the Fund did not use any significant unobservable inputs (Level 3) in determining the value of investments.

 

The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2010 was as follows:

 

Affiliated Money Market Mutual Fund (including 7.7% of collateral received for securities on loan)

   10.4

Oil, Gas & Consumable Fuels

   8.8   

Pharmaceuticals

   5.9   

Computers & Peripherals

   5.6   

Diversified Financial Services

   4.5   

Software

   4.0   

Insurance

   3.8   

Commercial Banks

   3.0   

Media

   3.0   

Aerospace & Defense

   2.9   

Capital Markets

   2.6   

Food & Staples Retailing

   2.6   

Beverages

   2.5   

Diversified Telecommunication Services

   2.5   

Semiconductors & Semiconductor Equipment

   2.5   

Communications Equipment

   2.4   

Household Products

   2.4   

Industrial Conglomerates

   2.4   

Healthcare Providers & Services

   2.1   

Specialty Retail

   2.0   

Healthcare Equipment & Supplies

   1.9   

Chemicals

   1.8   

 

See Notes to Financial Statements.

 

26   Visit our website at www.prudentialfunds.com

 


 

 

Industry (cont’d.)

      

Electric Utilities

   1.8

Food Products

   1.8   

Internet Software & Services

   1.8   

Energy Equipment & Services

   1.7   

Machinery

   1.6   

Biotechnology

   1.5   

Hotels, Restaurants & Leisure

   1.5   

Tobacco

   1.5   

IT Services

   1.4   

Multi-Utilities

   1.2   

Real Estate Investment Trust

   1.2   

Metals & Mining

   1.1   

Air Freight & Logistics

   1.0   

Multiline Retail

   0.9   

Consumer Finance

   0.8   

Road & Rail

   0.7   

Electronic Equipment & Instruments

   0.6   

Internet & Catalog Retail

   0.6   

Commercial Services & Supplies

   0.5   

Electrical Equipment

   0.5   

Textiles, Apparel & Luxury Goods

   0.5   

Automobiles

   0.4   

Life Sciences Tools & Services

   0.4   

U.S. Treasury Security

   0.4   

Household Durables

   0.3   

Wireless Telecommunication Services

   0.3   

Auto Components

   0.2   

Construction & Engineering

   0.2   

Containers & Packaging

   0.2   

Diversified Consumer Services

   0.2   

Independent Power Producers & Energy Traders

   0.2   

Paper & Forest Products

   0.2   

Personal Products

   0.2   

Airlines

   0.1   

Distributors

   0.1   

Gas Utilities

   0.1   

Home Builders

   0.1   

Leisure Equipment & Products

   0.1   

Office Electronics

   0.1   

Professional Services

   0.1   

Thrifts & Mortgage Finance

   0.1   

Trading Companies & Distributors

   0.1   
      
   107.9   

Liabilities in excess of other assets

   (7.9
      
   100.0
      

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   27

 


Portfolio of Investments

 

as of March 31, 2010 (Unaudited) continued

 

The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are commodity risk, credit risk, equity 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 March 31, 2010 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

Equity contracts

   Due to broker—variation margin    $ 328,340          —
                  

 

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

 

The effects of derivative instruments on the Statement of Operations for the six months ended March 31, 2010 are as follows:

 

Amount of Realized Gain or (Loss) on Derivatives Recognized in Income

Derivatives not designated as hedging
instruments, carried at fair value

     Futures

Equity contracts

     $ 1,504,628
        

 

Change in Unrealized Appreciation or (Depreciation) on Derivatives Recognized in Income

Derivatives not designated as hedging
instruments, carried at fair value

     Futures

Equity contracts

     $ 110,761
        

 

For the six months ended March 31, 2010, the Portfolio’s average value at trade date for futures long position was $20,676,494.

 

 

See Notes to Financial Statements.

 

28   Visit our website at www.prudentialfunds.com

 


 

Financial Statements

 

(Unaudited)

 

MARCH 31, 2010   SEMIANNUAL REPORT

 

Prudential Stock Index Fund


Statement of Assets and Liabilities

 

as of March 31, 2010 (Unaudited)

 

Assets

        

Investments at value, including securities on loan of $64,187,187:

  

Unaffiliated Investments (cost $487,112,171)

   $ 842,813,930   

Affiliated Investments (cost $91,567,826)

     92,705,526   

Dividends and interest receivable

     1,090,025   

Receivable for Fund shares sold

     819,108   

Receivable for investments sold

     409,281   

Prepaid expenses

     6,968   
        

Total assets

     937,844,838   
        

Liabilities

        

Payable to broker for collateral for securities on loan

     66,412,040   

Payable for Fund shares reacquired

     2,757,091   

Payable for investments purchased

     828,924   

Accrued expenses

     462,143   

Affiliated transfer agent fee payable

     122,921   

Due to broker—variation margin

     94,500   

Management fee payable

     58,104   

Distribution fee payable

     56,201   

Deferred trustees’ fees

     6,368   
        

Total liabilities

     70,798,292   
        

Net Assets

   $ 867,046,546   
        
          

Net assets were comprised of:

  

Common stock, at par

   $ 33,602   

Paid-in capital in excess of par

     625,452,444   
        
     625,486,046   

Undistributed net investment income

     3,548,799   

Accumulated net realized loss on investment and financial futures transactions

     (119,156,098

Net unrealized appreciation on investments and financial futures contracts

     357,167,799   
        

Net assets March 31, 2010

   $ 867,046,546   
        

 

See Notes to Financial Statements.

 

30   Visit our website at www.prudentialfunds.com


 

 

Class A

      

Net asset value and redemption price per share

($108,462,609 ÷ 4,208,067 shares of beneficial interest issued and outstanding)

   $ 25.77

Maximum sales charge (3.25% of offering price)

     .87
      

Maximum offering price to public

   $ 26.64
      

Class B

      

Net asset value, offering price and redemption price per share

($9,706,244 ÷ 377,673 shares of beneficial interest issued and outstanding)

   $ 25.70
      

Class C

      

Net asset value, offering price and redemption price per share

($24,389,001 ÷ 950,024 shares of beneficial interest issued and outstanding)

   $ 25.67
      

Class I

      

Net asset value, offering price and redemption price per share

($334,441,214 ÷ 12,955,301 shares of beneficial interest issued and outstanding)

   $ 25.82
      

Class Z

      

Net asset value, offering price and redemption price per share

($390,047,478 ÷ 15,111,132 shares of beneficial interest issued and outstanding)

   $ 25.81
      

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   31

 


Statement of Operations

 

Six Months Ended March 31, 2010 (Unaudited)

 

Net Investment Income

        

Income

  

Unaffiliated dividends

   $ 8,593,288   

Affiliated income from securities loaned, net

     69,269   

Affiliated dividend income

     54,715   

Unaffiliated interest

     1,017   
        

Total income

     8,718,289   
        

Expenses

  

Management fee

     1,290,685   

Distribution fee—Class A

     148,668   

Distribution fee—Class B

     57,078   

Distribution fee—Class C

     117,566   

Transfer agent fee—Class A (including affiliated expense of $8,400)

     73,000   

Transfer agent fee—Class B

     25,000   

Transfer agent fee—Class C (including affiliated expense of $1,900)

     27,000   

Transfer agent fee—Class I (including affiliated expense of $93,300)

     138,000   

Transfer agent fee—Class Z (including affiliated expense of $226,100)

     305,000   

Custodian’s fees and expenses

     52,000   

Reports to shareholders

     35,000   

Registration fees

     29,000   

Trustees’ fees

     22,000   

Legal fees and expenses

     13,000   

Audit fee

     11,000   

Insurance

     10,000   

Miscellaneous

     10,676   
        

Total expenses

     2,364,673   

Less: Management fee waiver (Note 2)

     (946,502
        

Net expenses

     1,418,171   
        

Net investment income

     7,300,118   
        

Realized And Unrealized Gain On Investments

        

Net realized gain on:

  

Investment transactions (including affiliated $21,947)

     17,486,105   

Financial futures transactions

     1,504,628   
        
     18,990,733   
        

Net change in unrealized appreciation (depreciation) on:

  

Investments (including affiliated $394,959)

     66,090,348   

Financial futures contracts

     110,761   
        
     66,201,109   
        

Net gain on investments

     85,191,842   
        

Net Increase In Net Assets Resulting From Operations

   $ 92,491,960   
        

 

See Notes to Financial Statements.

 

32   Visit our website at www.prudentialfunds.com

 


Statement of Changes in Net Assets

 

(Unaudited)

 

    Six Months
Ended
March 31, 2010
     Year
Ended
September 30, 2009
 

Increase (Decrease) In Net Assets

                

Operations

    

Net investment income

  $ 7,300,118       $ 18,094,984   

Net realized gain (loss) on investment transactions

    18,990,733         (10,680,378

Net change in unrealized appreciation (depreciation) on investments

    66,201,109         (98,771,231
                

Net increase (decrease) in net assets resulting from operations

    92,491,960         (91,356,625
                

Dividends from net investment income (Note 1)

    

Class A

    (1,492,326      (2,119,867

Class B

    (115,611      (396,427

Class C

    (226,150      (416,153

Class I

    (6,418,487      (10,174,616

Class Z

    (7,748,518      (11,990,706
                
    (16,001,092      (25,097,769
                

Fund share transactions (net of share conversions) (Note 6)

    

Net proceeds from shares sold

    105,669,795         185,954,550   

Net asset value of shares issued in reinvestment of dividends

    14,343,828         22,406,788   

Cost of shares reacquired

    (176,046,265      (274,549,233
                

Net decrease in net assets from Fund share transactions

    (56,032,642      (66,187,895
                

Total increase (decrease)

    20,458,226         (182,642,289

Net Assets

                

Beginning of period

    846,588,320         1,029,230,609   
                

End of period(a)

  $ 867,046,546       $ 846,588,320   
                

(a) Includes undistributed net investment income of:

  $ 3,548,799       $ 12,249,773   
                

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   33

 


Notes to Financial Statements

 

(Unaudited)

 

The Prudential Investment Portfolios 8 (formerly Dryden Index Series Fund) (the “Company”) is registered under the Investment Company Act of 1940, as amended, as an open-end, diversified management investment company. The Company was established as a Delaware business trust on May 11, 1992 and currently consists of one fund, which is the Prudential Stock Index Fund (the “Fund”). Investment operations of the Fund commenced on November 5, 1992. The Fund’s investment objective is to provide investment results that correspond to the price and yield performance of Standard & Poor’s 500 Composite Stock Price Index.

 

Note 1. Accounting Policies

 

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

 

Securities Valuation: Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and ask prices, or at the last bid price on such day in the absence of an asked price. Securities traded via NASDAQ are valued at the NASDAQ official closing price (“NOCP”) on the day of valuation, or if there was no NOCP, at the last sale price.

 

Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadviser(s); to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Options on securities and indices traded on an exchange are valued at the last sale price as of the close of trading on the applicable exchange or, if there was no sale, at the mean between the most recently quoted bid and asked prices on such exchange. Futures contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted bid and asked prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Securities for which reliable market quotations are not readily available, or whose values have been affected by events occurring after the close of the security’s foreign market and before

 

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the Fund’s normal pricing time, are valued at fair value in accordance with the Board of Trustees’ approved fair valuation procedures. When determining the fair valuation of securities some of the factors influencing the valuation include, the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment 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.

 

Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.

 

Short-term debt securities of sufficient credit quality which mature in 60 days or less are valued at amortized cost, which approximates fair value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term debt securities which mature in more than 60 days are valued at current market quotations.

 

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

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   35

 


Notes to Financial Statements

 

(Unaudited) continued

 

Risk: Financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.

 

Securities Lending: The Fund may lend its portfolio securities to broker-dealers. The loans are secured by collateral at least equal, at all times, to the market value of the securities loaned. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the lender securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities using the collateral in the open market. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The Fund also continues to receive interest and dividends or amounts equivalent thereto, on the securities loaned and recognizes any unrealized gain or loss in the market price of the securities loaned that may occur during the term of the loan.

 

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized and unrealized gains or losses on sales of securities are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis.

 

Net investment income or loss (other than distribution and transfer agent fees) and unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day. Transfer agent fees are incurred based on shareholder activity and number of accounts for each class.

 

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

 

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

 

Withholding taxes on foreign dividends have been provided for in accordance with the Fund’s understanding of the applicable country’s tax rules and rates.

 

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

 

Note 2. Agreements

 

The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. PI has entered into a subadvisory agreement with Quantitative Management Associates LLC (“QMA”). The subadvisory agreement provides that QMA furnishes investment advisory services in connection with the management of the Fund. In connection therewith, QMA is obligated to keep certain books and records of the Fund. PI pays for the services of QMA, 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 computed daily and payable monthly at an annual rate of .30% of the average daily net assets of the Fund up to $1 billion and .25% in excess of $1 billion. Effective June 1, 2007 to January 31, 2011, the Fund’s manager has agreed to contractually waive a portion of its management fee, so that the effective management fee for the Fund will be .08% of the average daily net assets of Fund. The effective management fee rate was .08% of the average daily net assets for the six months ended March 31, 2010.

 

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 I 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 for Class I and Class Z shares of the Fund.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   37

 


Notes to Financial Statements

 

(Unaudited) continued

 

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.

 

PIMS has advised the Fund that it received $21,050 in front-end sales charges resulting from sales of Class A shares during the six months ended March 31, 2010. From these fees, PIMS paid sales charges to dealers who in turn paid commissions to salespersons, and incurred other distribution costs.

 

PIMS has advised the Fund that for the six months ended March 31, 2010, it received $110, $1,072 and $767 in contingent deferred sales charges imposed upon certain redemptions by Class A, Class B and Class C shareholders, respectively.

 

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

 

The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with two banks. The SCA provides for a commitment of $500 million. Interest on any borrowings under the SCA is incurred at contracted market rates and a commitment fee for the unused amount is accrued daily and paid quarterly. Effective October 22, 2009 , the Funds renewed the SCA with the banks. The commitment under the renewed SCA continues to be $500 million. The Funds pay a commitment fee of .15% of the unused portion of the renewed SCA. The expiration date of the renewed SCA will be October 20, 2010. For the period from October 24, 2008 through October 21, 2009, the Funds paid a commitment fee of .13% of the unused portion of the agreement. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions.

 

The Fund did not borrow any amounts pursuant to the SCA during the six months ended March 31, 2010.

 

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

 

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agent fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable. The Fund’s Class I and Class Z shares are subject to a transfer agent fee of .07% and .13% of the average daily net assets of the Class I and Class Z shares, respectively. Classes A, B, and C each compensate PMFS for its services as they are incurred.

 

The Fund pays networking fees to affiliated and unaffiliated broker/dealers including fees relating to the services of Wells Fargo Advisors, LLC (“Wells Fargo”), an affiliate of PI through December 31, 2009. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. For the six months ended March 31, 2010, the Fund incurred approximately $17,100 in total networking fees of which approximately $2,300 was paid to Wells Fargo through December 31, 2009. These amounts are included in transfer agent’s fees and expenses in the Statement of Operations.

 

Prudential Investment Management Inc. (“PIM”), an indirect, wholly-owned subsidiary of Prudential, is the Fund’s security lending agent. For the six months ended March 31, 2010, PIM has been compensated approximately $25,600 for these services.

 

The Fund invests in the Prudential Core Taxable Money Market Fund (formerly Taxable Money Market Series) (the “Portfolio”), a portfolio of the Prudential Investment Portfolios 2 (formerly Dryden Core Investment Fund). The Portfolio is a money market mutual fund registered under the Investment Company Act of 1940, as amended, and managed by PI.

 

Note 4. Portfolio Securities

 

Purchases and sales of portfolio securities, excluding short-term investments, for the six months ended March 31, 2010 aggregated $27,529,469 and $97,190,719 respectively.

 

Note 5. Tax Information

 

For federal income tax purposes, the Fund had a capital loss carryforward as of September 30, 2009 of approximately $113,784,000 of which $63,639,000 expires in 2011, $1,967,000 expires in 2012, $16,903,000 expires in 2013 and $31,275,000 expires in 2014. The Fund utilized approximately $787,000 of its capital loss carryforward during fiscal year ended September 30, 2009. Accordingly, no capital gains distribution is expected to be paid to shareholders until net gains have been realized in excess of this amount. It is uncertain whether the Fund will be able to realize the full benefit prior to the expiration date.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   39

 


Notes to Financial Statements

 

(Unaudited) continued

 

The Fund elected to treat post-October capital losses of approximately $9,075,000 as having been incurred in the fiscal year ending September 30, 2010.

 

The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of March 31, 2010 were as follows:

 

Tax Basis of
Investments

 

Appreciation

 

Depreciation

 

Net
Unrealized
Appreciation

$593,728,219   $384,412,194   ($42,620,957)   $341,791,237

 

The difference between book basis and tax basis was primarily attributable to deferred losses on wash sales.

 

Management has analyzed the Fund’s tax positions taken on federal income tax returns for all open tax years and has concluded that as of March 31, 2010, no provision for income tax would be required in the Fund’s financial statements. 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 I and Class Z shares. Class A shares are sold with a front-end sales charge of up to 3.25%. Certain investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are subject to a 1% contingent deferred sales charge, although they are not subject to an initial sales charge. Class B shares are sold with a contingent deferred sales charge (CDSC) which declines from 5% to zero depending upon the period of time the shares are held. Class C shares are sold with a CDSC of 1% during the first year. Class B shares will automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are not available for purchase by new investors. Class I 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.

 

The Fund has authorized an unlimited number of shares of beneficial interest at $.001 par value divided into five classes, designated Class A, Class B, Class C, Class I and Class Z.

 

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Transactions in shares of beneficial interest were as follows:

 

Class A

   Shares      Amount  

Six months ended March 31, 2010:

     

Shares sold

   747,089       $ 18,317,656   

Shares issued in reinvestment of dividends

   53,504         1,301,741   

Shares reacquired

   (546,939      (13,344,858
               

Net increase (decrease) in shares outstanding before conversion

   253,654         6,274,539   

Shares issued upon conversion from Class B

   50,149         1,241,053   
               

Net increase (decrease) in shares outstanding

   303,803       $ 7,515,592   
               

Year ended September 30, 2009:

     

Shares sold

   960,089       $ 19,486,099   

Shares issued in reinvestment of dividends

   100,124         1,762,193   

Shares reacquired

   (980,453      (19,499,415
               

Net increase (decrease) in shares outstanding before conversion

   79,760         1,748,877   

Shares issued upon conversion from Class B

   358,693         7,037,924   
               

Net increase (decrease) in shares outstanding

   438,453       $ 8,786,801   
               

Class B

             

Six months ended March 31, 2010:

     

Shares sold

   4,055       $ 97,005   

Shares issued in reinvestment of dividends

   4,645         113,093   

Shares reacquired

   (117,335      (2,877,345
               

Net increase (decrease) in shares outstanding before conversion

   (108,635      (2,667,247

Shares reacquired upon conversion into Class A

   (50,201      (1,241,053
               

Net increase (decrease) in shares outstanding

   (158,836    $ (3,908,300
               

Year ended September 30, 2009:

     

Shares sold

   15,931       $ 318,781   

Shares issued in reinvestment of dividends

   21,563         379,720   

Shares reacquired

   (282,588      (5,588,645
               

Net increase (decrease) in shares outstanding before conversion

   (245,094      (4,890,144

Shares reacquired upon conversion into Class A

   (359,466      (7,037,924
               

Net increase (decrease) in shares outstanding

   (604,560    $ (11,928,068
               

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   41

 


Notes to Financial Statements

 

(Unaudited) continued

 

Class C

   Shares      Amount  

Six months ended March 31, 2010:

     

Shares sold

   42,787       $ 1,033,438   

Shares issued in reinvestment of dividends

   8,930         217,004   

Shares reacquired

   (89,009      (2,152,800
               

Net increase (decrease) in shares outstanding

   (37,292    $ (902,358
               

Year ended September 30, 2009:

     

Shares sold

   121,141       $ 2,419,426   

Shares issued in reinvestment of dividends

   21,299         374,871   

Shares reacquired

   (263,284      (5,145,545
               

Net increase (decrease) in shares outstanding

   (120,844    $ (2,351,248
               

Class I

             

Six months ended March 31, 2010:

     

Shares sold

   637,940       $ 15,654,525   

Shares issued in reinvestment of dividends

   239,323         5,822,730   

Shares reacquired

   (1,741,202      (42,380,621
               

Net increase (decrease) in shares outstanding

   (863,939    $ (20,903,366
               

Year ended September 30, 2009:

     

Shares sold

   2,313,460       $ 45,895,631   

Shares issued in reinvestment of dividends

   511,877         9,003,913   

Shares reacquired

   (4,206,872      (82,558,666
               

Net increase (decrease) in shares outstanding

   (1,381,535    $ (27,659,122
               

Class Z

             

Six months ended March 31, 2010:

     

Shares sold

   2,881,666       $ 70,567,171   

Shares issued in reinvestment of dividends

   283,044         6,889,260   

Shares reacquired

   (4,782,881      (115,290,641
               

Net increase (decrease) in shares outstanding

   (1,618,171    $ (37,834,210
               

Year ended September 30, 2009:

     

Shares sold

   5,841,390       $ 117,834,613   

Shares issued in reinvestment of dividends

   618,888         10,886,091   

Shares reacquired

   (8,054,760      (161,756,962
               

Net increase (decrease) in shares outstanding

   (1,594,482    $ (33,036,258
               

 

Note 7. New Accounting Pronouncements

 

In January 2010, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2010-06 “Improving Disclosures about

 

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Fair Value Measurements”. ASU 2010-06 will require reporting entities to make new disclosures about amounts and reasons for significant transfers in and out of Level 1 and Level 2 fair value measurements and input and valuation techniques used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3, and information on purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements. The new and revised disclosures are effective for interim and annual reporting periods beginning after December 15, 2009 except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements, which are effective for interim and annual reporting periods beginning after December 15, 2010. At this time, management is evaluating the implications of ASU No. 2010-06 and its impact on the financial statements has not been determined.

 

Note 8. Subsequent Events

 

Management has evaluated the impact of all subsequent events on the Fund through the date the financial statements are issued and has determined that there were no subsequent events requiring recognition or disclosure in the financial statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   43

 


Financial Highlights

 

(Unaudited)

 

     Class A  
      Six Months Ended
March 31, 2010(e)
 

Per Share Operating Performance:

  

Net Asset Value, Beginning Of Period

   $ 23.48   
        

Income (loss) from investment operations:

  

Net investment income

     .18   

Net realized and unrealized gain (loss) on investment transactions

     2.50   
        

Total from investment operations

     2.68   
        

Less Dividends:

  

Dividends from net investment income

     (.39
        

Net asset value, end of period

   $ 25.77   
        

Total Return(b):

     11.49

Ratios/Supplemental Data:

  

Net assets, end of period (000)

   $ 108,463   

Average net assets (000)

   $ 99,363   

Ratios to average net assets(a)(d):

  

Expenses, including distribution and service (12b-1) fees

     .57 %(f) 

Expenses, excluding distribution and service (12b-1) fees

     .27 %(f) 

Net investment income

     1.46 %(f) 

For Class A, B, C, I and Z shares:

  

Portfolio turnover rate

     3 %(g) 

 

(a) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been .79% for the six months ended March 31, 2010 and .83%, .70%, .67%, .67% and .64% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .49% for the six months ended March 31, 2010 and .53%, .42%, .42%, .42% and .39% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The net investment income ratios would have been 1.24% for the six months ended March 31, 2010 and 1.88%, 1.49%, 1.36%, 1.30% and 1.32% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively.
(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 return includes the effect of expense subsidies. Total returns for periods of less than a full year are not annualized.
(c) The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .25% of the average daily net assets of the Class A shares through January 31, 2008.
(d) Does not include expenses of the underlying portfolio in which the Fund invests.
(e) Calculated based upon average shares outstanding during the period.
(f) Annualized.
(g) Not annualized.

 

See Notes to Financial Statements.

 

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Class A  
Year Ended September 30,  
2009(e)     2008     2007     2006     2005  
       
$ 26.17      $ 34.18      $ 29.98      $ 27.57      $ 25.05   
                                     
       
  .42        .53        .46        .38        .44   
  (2.51     (8.04     4.23        2.41        2.44   
                                     
  (2.09     (7.51     4.69        2.79        2.88   
                                     
       
  (.60     (.50     (.49     (.38     (.36
                                     
$ 23.48      $ 26.17      $ 34.18      $ 29.98      $ 27.57   
                                     
  (7.22 )%      (22.23 )%      15.81     10.21     11.59
       
$ 91,654      $ 90,714      $ 113,940      $ 85,357      $ 77,898   
$ 74,427      $ 103,974      $ 97,885      $ 81,562      $ 75,078   
       
  .61     .49 %(c)      .59 %(c)      .65 %(c)      .64 %(c) 
  .31     .21     .34     .40     .39
  2.10     1.70     1.44     1.32     1.51
       
  6     4     3     3     3

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   45

 


Financial Highlights

 

(Unaudited) continued

 

     Class B  
      Six Months Ended
March 31, 2010(d)
 

Per Share Operating Performance:

  

Net Asset Value, Beginning Of Period

   $ 23.37   
        

Income (loss) from investment operations:

  

Net investment income

     .06   

Net realized and unrealized gain (loss) on investment transactions

     2.49   
        

Total from investment operations

     2.55   
        

Less Dividends:

  

Dividends from net investment income

     (.22
        

Net asset value, end of period

   $ 25.70   
        

Total Return(b):

     10.97

Ratios/Supplemental Data:

  

Net assets, end of period (000)

   $ 9,706   

Average net assets (000)

   $ 11,445   

Ratios to average net assets(a)(c):

  

Expenses, including distribution and service (12b-1) fees

     1.55 %(e) 

Expenses, excluding distribution and service (12b-1) fees

     .55 %(e) 

Net investment income

     .49 %(e) 

 

(a) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been 1.77% for the six months ended March 31, 2010 and 1.67%, 1.52%, 1.52%, 1.55% and 1.51% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .77% for the six months ended March 31, 2010 and .67%, 52%, .52%, .55% and .51% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The net investment income ratios would have been .27% for the six months ended March 31, 2010 and 1.15%, .73%, .50%, .43% and .65% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively.
(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 return includes the effect of expense subsidies. Total returns for periods of less than a full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Calculated based upon average shares outstanding during the period.
(e) Annualized.

 

See Notes to Financial Statements.

 

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Class B  
                                     
Year Ended September 30,  
                                     
2009(d)     2008     2007     2006     2005  
                                     
       
$ 25.92      $ 33.86      $ 29.70      $ 27.29      $ 24.79   
                                     
       
  .27        .23        .20        .16        .19   
  (2.43     (7.92     4.22        2.39        2.48   
                                     
  (2.16     (7.69     4.42        2.55        2.67   
                                     
       
  (.39     (.25     (.26     (.14     (.17
                                     
$ 23.37      $ 25.92      $ 33.86      $ 29.70      $ 27.29   
                                     
  (7.86 )%      (22.85 )%      14.96     9.39     10.78
       
$ 12,538      $ 29,580      $ 64,637      $ 82,204      $ 95,284   
$ 15,863      $ 47,301      $ 77,195      $ 88,427      $ 104,121   
       
  1.45     1.31     1.34     1.40     1.40
  .45     .31     .34     .40     .40
  1.37     .94     .68     .58     .75

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   47

 


Financial Highlights

 

(Unaudited) continued

 

     Class C  
      Six Months Ended
March 31, 2010(d)
 

Per Share Operating Performance:

  

Net Asset Value, Beginning Of Period

   $ 23.33   
        

Income (loss) from investment operations:

  

Net investment income

     .08   

Net realized and unrealized gain (loss) on investment transactions

     2.49   
        

Total from investment operations

     2.57   
        

Less Dividends:

  

Dividends from net investment income

     (.23
        

Net asset value, end of period

   $ 25.67   
        

Total Return(b):

     11.08

Ratios/Supplemental Data:

  

Net assets, end of period (000)

   $ 24,389   

Average net assets (000)

   $ 23,573   

Ratios to average net assets(a)(c):

  

Expenses, including distribution and service (12b-1) fees

     1.35 %(e) 

Expenses, excluding distribution and service (12b-1) fees

     .35 %(e) 

Net investment income

     .68 %(e) 

 

(a) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been 1.57% for the six months ended March 31, 2010 and 1.63%, 1.57%, 1.47%, 1.46% and 1.43% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .57% for the six months ended March 31, 2010 and .63%, 57%, .47%, .46% and .43% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The net investment income ratios would have been .46% for the six months ended March 31, 2010 and 1.11%, .64%. .56%, .52% and .72% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively.
(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 return includes the effect of expense subsidies. Total returns for periods of less than a full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Calculated based upon average shares outstanding during the period.
(e) Annualized.

 

See Notes to Financial Statements.

 

48   Visit our website at www.prudentialfunds.com

 


Class C  
Year Ended September 30,  
2009(d)     2008     2007     2006     2005  
       
$ 25.90      $ 33.86      $ 29.71      $ 27.29      $ 24.79   
                                     
       
  .26        .25        .21        .16        .19   
  (2.45     (7.96     4.20        2.40        2.48   
                                     
  (2.19     (7.71     4.41        2.56        2.67   
                                     
       
  (.38     (.25     (.26     (.14     (.17
                                     
$ 23.33      $ 25.90      $ 33.86      $ 29.71      $ 27.29   
                                     
  (7.98 )%      (22.91 )%      14.92     9.42     10.78
       
$ 23,032      $ 28,701      $ 45,085      $ 42,921      $ 48,051   
$ 20,821      $ 37,334      $ 44,982      $ 45,636      $ 50,981   
       
  1.41     1.36     1.36     1.40     1.40
  .41     .36     .36     .40     .40
  1.33     .85     .67     .58     .75

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   49


Financial Highlights

 

(Unaudited) continued

 

     Class I  
      Six Months Ended
March 31, 2010(d)
 

Per Share Operating Performance:

  

Net Asset Value, Beginning Of Period

   $ 23.55   
        

Income (loss) from investment operations:

  

Net investment income

     .22   

Net realized and unrealized gain (loss) on investment transactions

     2.52   
        

Total from investment operations

     2.74   
        

Less Dividends:

  

Dividends from net investment income

     (.47
        

Net asset value, end of period

   $ 25.82   
        

Total Return(b):

     11.77

Ratios/Supplemental Data:

  

Net assets, end of period (000)

   $ 334,441   

Average net assets (000)

   $ 326,153   

Ratios to average net assets(a)(c):

  

Expenses, including distribution and service (12b-1) fees

     .21 %(e) 

Expenses, excluding distribution and service (12b-1) fees

     .21 %(e) 

Net investment income

     1.82 %(e) 

 

(a) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been .43% for the six months ended March 31, 2010 and .43%, .40%, .34%, .31% and .31% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .43% for the six months ended March 31, 2010 and .43%, .40%, .34%, .31% and .31% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The net investment income ratios would have been 1.60% for the six months ended March 31, 2010 and 2.31%. 1.82%, 1.69%, 1.67% and 1.84% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively.
(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 return includes the effect of expense subsidies. Total returns for periods of less than a full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Calculated based upon average shares outstanding during the period.
(e) Annualized.

 

See Notes to Financial Statements.

 

50   Visit our website at www.prudentialfunds.com

 


Class I  
                                     
Year Ended September 30,  
                                     
2009(d)     2008     2007     2006     2005  
                                     
       
$ 26.26      $ 34.31      $ 30.08      $ 27.66      $ 25.12   
                                     
       
  .51        .71        .62        .53        .51   
  (2.54     (8.16     4.20        2.36        2.48   
                                     
  (2.03     (7.45     4.82        2.89        2.99   
                                     
       
  (.68     (.60     (.59     (.47     (.45
                                     
$ 23.55      $ 26.26      $ 34.31      $ 30.08      $ 27.66   
                                     
  (6.85 )%      (22.02 )%      16.23     10.56     11.99
       
$ 325,476      $ 399,244      $ 703,556      $ 777,551      $ 978,627   
$ 288,944      $ 567,523      $ 741,032      $ 860,728      $ 1,014,636   
       
  .21     .19     .26     .30     .30
  .21     .19     .26     .30     .30
  2.53     2.03     1.77     1.68     1.85

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   51

 


Financial Highlights

 

(Unaudited) continued

 

     Class Z  
      Six Months Ended
March 31, 2010(d)
 

Per Share Operating Performance:

  

Net Asset Value, Beginning Of Period

   $ 23.54   
        

Income (loss) from investment operations:

  

Net investment income

     .21   

Net realized and unrealized gain (loss) on investment transactions

     2.52   
        

Total from investment operations

     2.73   
        

Less Dividends:

  

Dividends from net investment income

     (.46
        

Net asset value, end of period

   $ 25.81   
        

Total Return(b):

     11.72

Ratios/Supplemental Data:

  

Net assets, end of period (000)

   $ 390,047   

Average net assets (000)

   $ 402,111   

Ratios to average net assets(a)(c):

  

Expenses, including distribution and service (12b-1) fees

     .27 %(e) 

Expenses, excluding distribution and service (12b-1) fees

     .27 %(e) 

Net investment income

     1.75 %(e) 

 

(a) Net of expense subsidy and/or management fee waiver, where applicable. If the investment manager had not reimbursed/waived expenses, the expense ratios including distribution and service (12b-1) fees would have been .49% for the six months ended March 31, 2010 and .48%, .45%, .42%, .40% and .41% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The expense ratios excluding distribution and service (12b-1) fees would have been .49% for the six months ended March 31, 2010 and .48%, 45%, .42%, .40% and .41% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively. The net investment income ratios would have been 1.53% for the six months ended March 31, 2010 and 2.26%. 1.75%, 1.61%, 1.57% and 1.74% for the years ended September 30, 2009, 2008, 2007, 2006 and 2005, respectively.
(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 return includes the effect of expense subsidies. Total returns for periods of less than a full year are not annualized.
(c) Does not include expenses of the underlying portfolio in which the Fund invests.
(d) Calculated based upon average shares outstanding during the period.
(e) Annualized.

 

See Notes to Financial Statements.

 

52   Visit our website at www.prudentialfunds.com

 


Class Z  
Year Ended September 30,  
2009(d)     2008     2007     2006     2005  
       
$ 26.25      $ 34.29      $ 30.07      $ 27.64      $ 25.10   
                                     
       
  .50        .63        .60        .51        .51   
  (2.54     (8.09     4.19        2.35        2.45   
                                     
  (2.04     (7.46     4.79        2.86        2.96   
                                     
       
  (.67     (.58     (.57     (.43     (.42
                                     
$ 23.54      $ 26.25      $ 34.29      $ 30.07      $ 27.64   
                                     
  (6.93 )%      (22.05 )%      16.11     10.53     11.86
       
$ 393,887      $ 480,992      $ 693,797      $ 667,849      $ 716,185   
$ 351,797      $ 599,595      $ 684,731      $ 697,473      $ 775,321   
       
  .26     .24     .34     .39     .40
  .26     .24     .34     .39     .40
  2.48     1.96     1.69     1.58     1.75

 

See Notes to Financial Statements.

 

Prudential Investment Portfolios 8/Prudential Stock Index Fund   53

 


Results of Proxy Voting

 

(Unaudited)

 

At a special meeting of shareholders held on March 9, 2010, Fund shareholders approved a proposal to elect Trustees.

 

The individuals listed in the table below were elected as trustees of the Fund. All trustees, with the exception of Mr. Benjamin, served as trustees to the Fund prior to the shareholder meeting.

 

Trustee

   For    Withheld

Kevin J. Bannon

   11,916,363.252    206,139.321

Linda W. Bynoe

   11,911,331.614    211,170.959

Michael S. Hyland

   11,914,147.391    208,355.182

Douglas H. McCorkindale

   11,915,183.510    207,319.063

Stephen P. Munn

   11,917,080.566    205,422.007

Richard A. Redeker

   11,917,023.690    205,478.883

Robin B. Smith

   11,914,422.953    208,079.620

Stephen G. Stoneburn

   11,916,685.306    205,817.267

Judy A. Rice

   11,911,456.744    211,045.829

Scott E. Benjamin

   11,912,016.563    210,486.010

 

54   Visit our website at www.prudentialfunds.com

 


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 Trustees 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 Commission’s website.

 

TRUSTEES

Kevin J. Bannon Scott E. Benjamin Linda W. Bynoe Michael S. Hyland
Douglas H. McCorkindale Stephen P. Munn Richard A. Redeker Judy A. Rice
Robin B. Smith Stephen G. Stoneburn

 

OFFICERS

Judy A. Rice, President Scott E. Benjamin, Vice President Grace C. Torres, Treasurer and Principal Financial and Accounting Officer Kathryn L. Quirk, Chief Legal Officer Deborah A. Docs, Secretary Timothy J. Knierim, Chief Compliance Officer Valerie M. Simpson, Deputy Chief Compliance Officer Theresa C. Thompson, Deputy Chief Compliance Officer Noreen M. Fierro, Anti-Money Laundering Compliance Officer Jonathan D. Shain, Assistant Secretary Claudia DiGiacomo, Assistant Secretary John P. Schwartz, 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   Quantitative Management

Associates LLC

   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 for the Fund contains this and other information about the Fund. An investor may obtain a prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The 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 e-mail when new materials are available. You can cancel your enrollment or change your e-mail address at any time by visiting the website address above.

 

SHAREHOLDER COMMUNICATIONS WITH TRUSTEES
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Prudential Stock Index Fund, Prudential Investments, Attn: Board of Trustees, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee 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 under the Prudential Investment Portfolios 8 name. 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 fiscal quarter.

 

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 Stock Index Fund                    
    Share Class   A   B   C   I   Z    
 

NASDAQ

  PSIAX   PBSIX   PSICX   PDSIX   PSIFX  
 

CUSIP

  74441F108   74441F207   74441F306   74441F405   74441504  
             

MF174E2    0179192-00001-00


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

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

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

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

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

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

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

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.

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

Item 11 – Controls and Procedures

 

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

 

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

Item 12 – Exhibits

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

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

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

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


SIGNATURES

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

(Registrant): Prudential Investment Portfolios 8

 

By:  

/s/    DEBORAH A. DOCS        

  Deborah A. Docs
  Secretary

Date: May 25, 2010

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/    JUDY A. RICE        

  Judy A. Rice
  President and Principal Executive Officer

Date: May 25, 2010

 

By:  

/s/    GRACE C. TORRES        

  Grace C. Torres
  Treasurer and Principal Financial Officer

Date: May 25, 2010