UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
| | |
| Investment Company Act file number: | | 811-02896 |
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| Exact name of registrant as specified in charter: | | Prudential Investment Portfolios, Inc. 15 |
| |
| Address of principal executive offices: | | 655 Broad Street, 6 th Floor |
| | Newark, New Jersey 07102 |
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| Name and address of agent for service: | | Andrew R. French |
| | 655 Broad Street, 6 th Floor |
| | Newark, New Jersey 07102 |
| |
| Registrant’s telephone number, including area code: | | |
| |
| Date of fiscal year end: | | 8/31/2024 |
| |
| Date of reporting period: | | 8/31/2024 |
Item 1 – Reports to Stockholders
| | (a) | Report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1). |
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class A shares of PGIM ESG High Yield Fund (the “Fund”) for the period
of September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM ESG High Yield Fund—Class A | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
gaming/lodging/leisure, cable & satellite, finance companies, automotives, and paper & packaging; an underweight to the US investment-grade
corporate sector, along with overweights to the emerging-markets high yield and AAA collateralized loan obligation sectors; and industry
underweights to media & entertainment and telecom, along with industry overweights to healthcare & pharmaceuticals, finance companies, and
building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in healthcare &
pharmaceuticals, chemicals, consumer non-cyclicals, retailers & restaurants, media & entertainment, and transportation & environmental
services; an underweight allocation to the US high yield corporate sector and an overweight to the US bank loan sector; and industry
overweights to cable & satellite and transportation & environmental services, along with industry underweights to gaming/lodging/leisure,
retailers & restaurants, and consumer non-cyclicals.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions contributed to performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class A shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: December 8, 2021 to August 31, 2024 Initial Investment of $10,000 |
The line graph reflects the return on the Fund's Class A shares with sales charges.
Average Annual Total Returns as of 8/31/2024 |
| | |
Class A with sales charges | | |
Class A without sales charges | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond Index* | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class C shares of PGIM ESG High Yield Fund (the “Fund”) for the period
of September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM ESG High Yield Fund—Class C | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
gaming/lodging/leisure, cable & satellite, finance companies, automotives, and paper & packaging; an underweight to the US investment-grade
corporate sector, along with overweights to the emerging-markets high yield and AAA collateralized loan obligation sectors; and industry
underweights to media & entertainment and telecom, along with industry overweights to healthcare & pharmaceuticals, finance companies, and
building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in healthcare &
pharmaceuticals, chemicals, consumer non-cyclicals, retailers & restaurants, media & entertainment, and transportation & environmental
services; an underweight allocation to the US high yield corporate sector and an overweight to the US bank loan sector; and industry
overweights to cable & satellite and transportation & environmental services, along with industry underweights to gaming/lodging/leisure,
retailers & restaurants, and consumer non-cyclicals.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions contributed to performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class C shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: December 8, 2021 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | |
Class C with sales charges | | |
Class C without sales charges | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond Index* | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class Z shares of PGIM ESG High Yield Fund (the “Fund”) for the period
of September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM ESG High Yield Fund—Class Z | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
gaming/lodging/leisure, cable & satellite, finance companies, automotives, and paper & packaging; an underweight to the US investment-grade
corporate sector, along with overweights to the emerging-markets high yield and AAA collateralized loan obligation sectors; and industry
underweights to media & entertainment and telecom, along with industry overweights to healthcare & pharmaceuticals, finance companies, and
building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in healthcare &
pharmaceuticals, chemicals, consumer non-cyclicals, retailers & restaurants, media & entertainment, and transportation & environmental
services; an underweight allocation to the US high yield corporate sector and an overweight to the US bank loan sector; and industry
overweights to cable & satellite and transportation & environmental services, along with industry underweights to gaming/lodging/leisure,
retailers & restaurants, and consumer non-cyclicals.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions contributed to performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class Z shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: December 8, 2021 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | |
| | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond Index* | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class R6 shares of PGIM ESG High Yield Fund (the “Fund”) for the
period of September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM ESG High Yield Fund—Class R6 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
gaming/lodging/leisure, cable & satellite, finance companies, automotives, and paper & packaging; an underweight to the US investment-grade
corporate sector, along with overweights to the emerging-markets high yield and AAA collateralized loan obligation sectors; and industry
underweights to media & entertainment and telecom, along with industry overweights to healthcare & pharmaceuticals, finance companies, and
building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in healthcare &
pharmaceuticals, chemicals, consumer non-cyclicals, retailers & restaurants, media & entertainment, and transportation & environmental
services; an underweight allocation to the US high yield corporate sector and an overweight to the US bank loan sector; and industry
overweights to cable & satellite and transportation & environmental services, along with industry underweights to gaming/lodging/leisure,
retailers & restaurants, and consumer non-cyclicals.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions contributed to performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R6 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: December 8, 2021 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | |
| | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond Index* | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class A shares of PGIM High Yield Fund (the “Fund”) for the period of
September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM High Yield Fund—Class A | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
cable & satellite, automotives, technology, and finance companies; an overweight to the emerging-markets high yield sector; and an industry
underweight to media & entertainment, along with industry overweights to electric utilities, airlines, and building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
chemicals, midstream energy, retailers & restaurants, aerospace & defense, and paper & packaging; an overweight to the US bank loan sector,
along with an underweight to the US high yield corporate sector; and industry overweights to cable & satellite, telecom and metals & mining,
along with industry underweights to technology and retailers & restaurants.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions modestly detracted from performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class A shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: August 31, 2014 to August 31, 2024 Initial Investment of $10,000 |
The line graph reflects the return on the Fund's Class A shares with sales charges.
Average Annual Total Returns as of 8/31/2024 |
| | | |
Class A with sales charges | | | |
Class A without sales charges | | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond
Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class C shares of PGIM High Yield Fund (the “Fund”) for the period of
September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM High Yield Fund—Class C | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
cable & satellite, automotives, technology, and finance companies; an overweight to the emerging-markets high yield sector; and an industry
underweight to media & entertainment, along with industry overweights to electric utilities, airlines, and building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
chemicals, midstream energy, retailers & restaurants, aerospace & defense, and paper & packaging; an overweight to the US bank loan sector,
along with an underweight to the US high yield corporate sector; and industry overweights to cable & satellite, telecom and metals & mining,
along with industry underweights to technology and retailers & restaurants.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions modestly detracted from performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class C shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: August 31, 2014 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
Class C with sales charges | | | |
Class C without sales charges | | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond
Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class R shares of PGIM High Yield Fund (the “Fund”) for the period of
September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM High Yield Fund—Class R | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
cable & satellite, automotives, technology, and finance companies; an overweight to the emerging-markets high yield sector; and an industry
underweight to media & entertainment, along with industry overweights to electric utilities, airlines, and building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
chemicals, midstream energy, retailers & restaurants, aerospace & defense, and paper & packaging; an overweight to the US bank loan sector,
along with an underweight to the US high yield corporate sector; and industry overweights to cable & satellite, telecom and metals & mining,
along with industry underweights to technology and retailers & restaurants.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions modestly detracted from performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: August 31, 20214 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
| | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond
Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class Z shares of PGIM High Yield Fund (the “Fund”) for the period of
September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM High Yield Fund—Class Z | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
cable & satellite, automotives, technology, and finance companies; an overweight to the emerging-markets high yield sector; and an industry
underweight to media & entertainment, along with industry overweights to electric utilities, airlines, and building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
chemicals, midstream energy, retailers & restaurants, aerospace & defense, and paper & packaging; an overweight to the US bank loan sector,
along with an underweight to the US high yield corporate sector; and industry overweights to cable & satellite, telecom and metals & mining,
along with industry underweights to technology and retailers & restaurants.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions modestly detracted from performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class Z shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: August 31, 2014 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
| | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond
Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class R2 shares of PGIM High Yield Fund (the “Fund”) for the period of
September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM High Yield Fund—Class R2 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
cable & satellite, automotives, technology, and finance companies; an overweight to the emerging-markets high yield sector; and an industry
underweight to media & entertainment, along with industry overweights to electric utilities, airlines, and building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
chemicals, midstream energy, retailers & restaurants, aerospace & defense, and paper & packaging; an overweight to the US bank loan sector,
along with an underweight to the US high yield corporate sector; and industry overweights to cable & satellite, telecom and metals & mining,
along with industry underweights to technology and retailers & restaurants.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions modestly detracted from performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R2 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: December 27, 2017 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
| | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate
Bond Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class R4 shares of PGIM High Yield Fund (the “Fund”) for the period of
September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM High Yield Fund—Class R4 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
cable & satellite, automotives, technology, and finance companies; an overweight to the emerging-markets high yield sector; and an industry
underweight to media & entertainment, along with industry overweights to electric utilities, airlines, and building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
chemicals, midstream energy, retailers & restaurants, aerospace & defense, and paper & packaging; an overweight to the US bank loan sector,
along with an underweight to the US high yield corporate sector; and industry overweights to cable & satellite, telecom and metals & mining,
along with industry underweights to technology and retailers & restaurants.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions modestly detracted from performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R4 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: December 27, 2017 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
| | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate
Bond Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the closest
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class R6 shares of PGIM High Yield Fund (the “Fund”) for the period of
September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
.
You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM High Yield Fund—Class R6 | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
cable & satellite, automotives, technology, and finance companies; an overweight to the emerging-markets high yield sector; and an industry
underweight to media & entertainment, along with industry overweights to electric utilities, airlines, and building materials & home construction.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in telecom,
chemicals, midstream energy, retailers & restaurants, aerospace & defense, and paper & packaging; an overweight to the US bank loan sector,
along with an underweight to the US high yield corporate sector; and industry overweights to cable & satellite, telecom and metals & mining,
along with industry underweights to technology and retailers & restaurants.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions modestly detracted from performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R6 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: August 31, 2014 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
| | | |
Bloomberg US Corporate High Yield 1% Issuer Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond
Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Short Duration High Yield Income Fund
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class A shares of PGIM Short Duration High Yield Income Fund (the
“Fund”) for the period of September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Short Duration High Yield Income Fund— | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
telecom, cable & satellite, healthcare & pharmaceuticals, and technology; an underweight to the US high yield corporate sector, along with
overweights to the AAA collateralized loan obligation and US investment-grade corporate sectors; and industry underweights to airlines and
media & entertainment, along with an industry overweight to chemicals.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in chemicals,
paper & packaging, and upstream energy; an overweight to the US bank loan sector; and an industry overweight to cable & satellite and
industry underweights to consumer non-cyclicals, retailers & restaurants, and technology.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions had a modestly positive impact on performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class A shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: August 31, 2014 to August 31, 2024 Initial Investment of $10,000 |
The line graph reflects the return on the Fund's Class A shares with sales charges.
Average Annual Total Returns as of 8/31/2024 |
| | | |
Class A with sales charges | | | |
Class A without sales charges | | | |
Bloomberg US High Yield Ba/B 1-5 Year 1% Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond
Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Short Duration High Yield Income Fund
PGIM Short Duration High Yield Income Fund
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class C shares of PGIM Short Duration High Yield Income Fund (the
“Fund”) for the period of September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Short Duration High Yield Income Fund— | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
telecom, cable & satellite, healthcare & pharmaceuticals, and technology; an underweight to the US high yield corporate sector, along with
overweights to the AAA collateralized loan obligation and US investment-grade corporate sectors; and industry underweights to airlines and
media & entertainment, along with an industry overweight to chemicals.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in chemicals,
paper & packaging, and upstream energy; an overweight to the US bank loan sector; and an industry overweight to cable & satellite and
industry underweights to consumer non-cyclicals, retailers & restaurants, and technology.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions had a modestly positive impact on performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class C shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: August 31, 2014 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
Class C with sales charges | | | |
Class C without sales charges | | | |
Bloomberg US High Yield Ba/B 1-5 Year 1% Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Short Duration High Yield Income Fund
PGIM Short Duration High Yield Income Fund
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class Z shares of PGIM Short Duration High Yield Income Fund (the
“Fund”) for the period of September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Short Duration High Yield Income Fund— | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
telecom, cable & satellite, healthcare & pharmaceuticals, and technology; an underweight to the US high yield corporate sector, along with
overweights to the AAA collateralized loan obligation and US investment-grade corporate sectors; and industry underweights to airlines and
media & entertainment, along with an industry overweight to chemicals.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in chemicals,
paper & packaging, and upstream energy; an overweight to the US bank loan sector; and an industry overweight to cable & satellite and
industry underweights to consumer non-cyclicals, retailers & restaurants, and technology.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions had a modestly positive impact on performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class Z shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: August 31, 2014 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
| | | |
Bloomberg US High Yield Ba/B 1-5 Year 1% Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate Bond | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Short Duration High Yield Income Fund
PGIM Short Duration High Yield Income Fund
ANNUAL SHAREHOLDER REPORT – August 31, 2024
This annual shareholder report contains important information about the Class R6 shares of PGIM Short Duration High Yield Income Fund (the
“Fund”) for the period of September 1, 2023 to August 31, 2024.
You can find additional information about the Fund at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
. You can also request
this information by contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
WHAT WERE THE FUND COSTS FOR THE LAST YEAR?
(Based on a hypothetical $10,000 investment)
| Costs of a $10,000 investment | Costs paid as a percentage of a $10,000 investment |
PGIM Short Duration High Yield Income Fund— | | |
WHAT AFFECTED THE FUND’S PERFORMANCE DURING THE REPORTING PERIOD?
■
US high yield bonds posted strong total returns over the reporting period amid resilient economic growth, stable corporate earnings, and light
net new supply against inflows into high yield bond mutual funds and exchange-traded funds of approximately $14 billion. Lower-quality bonds
outperformed, with CCC-rated bonds outperforming both BB-rated and B-rated bonds during the reporting period.
■
The following contributed most to the Fund’s performance relative to the Index during the reporting period: security selection in electric utilities,
telecom, cable & satellite, healthcare & pharmaceuticals, and technology; an underweight to the US high yield corporate sector, along with
overweights to the AAA collateralized loan obligation and US investment-grade corporate sectors; and industry underweights to airlines and
media & entertainment, along with an industry overweight to chemicals.
■
The following detracted most from the Fund’s performance relative to the Index during the reporting period: security selection in chemicals,
paper & packaging, and upstream energy; an overweight to the US bank loan sector; and an industry overweight to cable & satellite and
industry underweights to consumer non-cyclicals, retailers & restaurants, and technology.
■
The Fund uses derivatives to facilitate the implementation of the overall investment approach. During the reporting period, the Fund used
swaps, forwards, and futures to help manage duration positioning and yield curve exposure. (Duration measures the sensitivity of the price—
the value of principal—of a bond to a change in interest rates. A yield curve is a line graph that illustrates the relationship between the yields
and maturities of fixed income securities. It is created by plotting the yields of different maturities for the same type of bonds.) In aggregate,
these positions had a modestly positive impact on performance during the reporting period.
HOW HAS THE FUND PERFORMED OVER THE PAST 10 YEARS?
The Fund’s past performance is not a good predictor of the Fund’s future performance.
The returns do not reflect the deduction of
taxes that a shareholder would pay on Fund distributions or redemption of Fund shares.
Visit
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or call (800) 225-1852 or (973) 367-3529 from outside the US for more recent performance data.
The line graph reflects a hypothetical $10,000 investment in Class R6 shares and assumes that all recurring fees (including management fees)
were deducted and dividend and distributions were reinvested. Without waiver of fees and/or expense reimbursements, if any, the returns would
have been lower.
Cumulative Performance: October 27, 2014 to August 31, 2024 Initial Investment of $10,000 |
Average Annual Total Returns as of 8/31/2024 |
| | | |
| | | |
Bloomberg US High Yield Ba/B 1-5 Year 1% Capped Index | | | |
Broad-Based Securities Market Index: Bloomberg US Aggregate
Bond Index* | | | |
*The Fund has added this broad-based index in response to new regulatory requirements.
Since Inception returns are provided for the share class since it has less than 10 fiscal years of returns. Since Inception returns for the Index are measured from the cl
ose
st
month-end to the class’s inception date.
WHAT ARE SOME KEY FUND STATISTICS AS OF 8/31/2024?
| |
| |
Total advisory fees paid for the year | |
Portfolio turnover rate for the year | |
WHAT ARE SOME CHARACTERISTICS OF THE FUND’S HOLDINGS AS OF 8/31/2024?
Credit Quality expressed as a percentage of total investments as of 8/31/2024 (%) |
| |
| |
| |
| |
| |
| |
| |
| |
| |
Credit ratings reflect the highest rating assigned by a nationally recognized statistical rating organization (NRSRO) such as Moody’s Investors Service, Inc. (Moody’s), S&P Global
Ratings (S&P), or Fitch Ratings, Inc. (Fitch). Credit ratings reflect the common nomenclature used by both S&P and Fitch. Where applicable, ratings are converted to the comparable
S&P/Fitch rating tier nomenclature. The Not Rated category consists of securities that have not been rated by an NRSRO. Credit ratings are subject to change.
You can find additional information at
pgim.com/investments/mutual-funds/prospectuses-fact-sheets
or by scanning the QR code below,
including the Fund’s prospectus, financial information, fund holdings, and proxy voting information. You can also request this information by
contacting us at (800) 225-1852 or (973) 367-3529 from outside the US.
To receive your fund documents online, go to
pgim.com/investments/resource/edelivery
and enroll.
PGIM Short Duration High Yield Income Fund
| | (b) | Copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule – Not applicable. |
| Item 2 – | Code of Ethics – See Exhibit (a) |
As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer.
The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant 800-225-1852, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.
| Item 3 – | Audit Committee Financial Expert – |
The registrant’s Board has determined that Ms. Grace C. Torres, member of the Board’s Audit Committee is an “audit committee financial expert,” and that she is “independent,” for purposes of this item.
| Item 4 – | Principal Accountant Fees and Services – |
For the fiscal years ended August 31, 2024 and August 31, 2023, PricewaterhouseCoopers LLP (“PwC”), the Registrant’s principal accountant, billed the Registrant $142,040 and $134,000, respectively, for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings.
For the fiscal years ended August 31, 2024 and August 31, 2023: none.
For the fiscal years ended August 31, 2024 and August 31, 2023: none.
For the fiscal years ended August 31, 2024 and August 31, 2023: none.
(e) (1) Audit Committee Pre-Approval Policies and Procedures
THE PGIM MUTUAL FUNDS
AUDIT COMMITTEE POLICY
on
Pre-Approval of Services Provided by the Independent
Accountants
The Audit Committee of each PGIM Mutual Fund is charged with the responsibility to monitor the independence of the Fund’s independent accountants. As part of this responsibility, the Audit Committee must pre-approve the independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement of the independent accountants, the Audit Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:
| | • | | a review of the nature of the professional services expected to be provided, |
| | • | | a review of the safeguards put into place by the accounting firm to safeguard independence, and |
| | • | | periodic meetings with the accounting firm. |
Policy for Audit and Non-Audit Services Provided to the Funds
On an annual basis, the scope of audits for each Fund, audit fees and expenses, and audit-related and non-audit services (and fees proposed in respect thereof) proposed to be performed by the Fund’s independent accountants will be presented by the Treasurer and the independent accountants to the Audit Committee for review and, as appropriate, approval prior to the initiation of such services.
Such presentation shall be accompanied by confirmation by both the Treasurer and the independent accountants that the proposed non-audit services will not adversely affect the independence of the independent accountants. Such proposed non-audit services shall be described in sufficient detail to enable the Audit Committee to assess the appropriateness of such services and fees, and the compatibility of the provision of such services with the auditor’s independence. The Committee shall receive periodic reports on the progress of the audit and other services which are approved by the Committee or by the Committee Chair pursuant to authority delegated in this Policy.
The categories of services enumerated under “Audit Services”, “Audit-related Services”, and “Tax Services” are intended to provide guidance to the Treasurer and the independent accountants as to those categories of services which the Committee believes are generally consistent with the independence of the independent accountants and which the Committee (or the Committee Chair) would expect upon the presentation of specific proposals to pre-approve. The enumerated categories are not intended as an exclusive list of audit, audit-related or tax services, which the Committee (or the Committee Chair) would consider for pre-approval.
Audit Services
The following categories of audit services are considered to be consistent with the role of the Fund’s independent accountants:
| | • | | Annual Fund financial statement audits |
| | • | | Seed audits (related to new product filings, as required) |
| | • | | SEC and regulatory filings and consents |
Audit-related Services
The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants:
| | • | | Accounting consultations |
| | • | | Fund merger support services |
| | • | | Agreed Upon Procedure Reports |
| | • | | Other Internal Control Reports |
| | |
Individual audit-related services that fall within one of these categories (except for fund merger support services) and are not presented to the Audit Committee as part of the annual pre-approval process are subject to an authorized pre-approval by the Audit Committee so long as the estimated fee for those services does not exceed $30,000. Any services provided under such pre-approval will be reported to the Audit Committee at its next regular meeting. Should the amount of such services exceed $30,000 any additional fees will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated). Fees related to fund merger support services are subject to a separate authorized pre-approval by the Audit Committee with fees determined on a per occurrence and merger complexity basis. | | |
Tax Services
The following categories of tax services are considered to be consistent with the role of the Fund’s independent accountants:
| | • | | Tax compliance services related to the filing or amendment of the following: |
| | • | | Federal, state and local income tax compliance; and, |
| | • | | Sales and use tax compliance |
| | • | | Timely RIC qualification reviews |
| | • | | Tax distribution analysis and planning |
| | • | | Tax authority examination services |
| | • | | Tax appeals support services |
| | • | | Accounting methods studies |
| | • | | Fund merger support services |
| | • | | Tax consulting services and related projects |
Individual tax services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process are subject to an authorized pre-approval by the Audit Committee so long as the estimated fee for those services does not exceed $30,000. Any services provided under such pre-approval will be reported to the Audit Committee at its next regular meeting. Should the amount of such services exceed $30,000 any additional fees will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated).
Other Non-Audit Services
Certain non-audit services that the independent accountants are legally permitted to render will be subject to pre-approval by the Committee or by one or more Committee members to whom the Committee has delegated this authority and who will report to the full Committee any pre-approval decisions made pursuant to this Policy. Non-audit services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.
Proscribed Services
The Fund’s independent accountants will not render services in the following categories of non-audit services:
| | • | | Bookkeeping or other services related to the accounting records or financial statements of the Fund |
| | • | | Financial information systems design and implementation |
| | • | | Appraisal or valuation services, fairness opinions, or contribution-in-kind reports |
| | • | | Internal audit outsourcing services |
| | • | | Management functions or human resources |
| | • | | Broker or dealer, investment adviser, or investment banking services |
| | • | | Legal services and expert services unrelated to the audit |
| | • | | Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible. |
Pre-approval of Non-Audit Services Provided to Other Entities Within the PGIM Fund Complex
Certain non-audit services provided to PGIM Investments LLC or any of its affiliates that also provide ongoing services to the PGIM Mutual Funds will be subject to pre-approval by the Audit Committee. The only non-audit services provided to these entities that will require pre-approval are those related directly to the operations and financial reporting of the Funds. Individual projects that are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $30,000. Services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.
Although the Audit Committee will not pre-approve all services provided to PGIM Investments LLC and its affiliates, the Committee will receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to PGIM Investments and its affiliates.
(e) (2) Percentage of services described in each of paragraphs (b) through (d) of this Item that were approved by the audit committee pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X –
| | | | | | | | | | |
| | | | Fiscal Year Ended August 31, 2024 | | | | Fiscal Year Ended August 31, 2023 | | |
| | 4(b) | | Not applicable. | | | | Not applicable. | | |
| | 4(c) | | Not applicable. | | | | Not applicable. | | |
| | 4(d) | | Not applicable. | | | | Not applicable. | | |
(f) Percentage of hours expended attributable to work performed by other than full time employees of principal accountant if greater than 50%.
The percentage of hours expended on the principal accountant’s engagement to audit the registrant’s financial statements for the most recent fiscal year that were attributed to work performed by persons other than the principal accountant’s full-time, permanent employees was 0%.
(g) Non-Audit Fees
The aggregate non-audit fees billed by the Registrant’s principal accountant for services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant for the fiscal years ended August 31, 2024 and August 31, 2023 was $0 and $0, respectively.
(h) Principal Accountant’s Independence
Not applicable as the Registrant’s principal accountant has not provided non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X.
(i) Not applicable.
(j) Not applicable.
| Item 5 – | Audit Committee of Listed Registrants – Not applicable. |
| Item 6 – | Investments – The registrant’s Schedule of Investments is included in the financial statements filed under Item 7 of this Form. |
| Items 7 – | 11 (Refer to Report below) |
PRUDENTIAL INVESTMENT PORTFOLIOS, INC. 15
PGIM ESG High Yield Fund
PGIM High Yield Fund
PGIM Short Duration High Yield Income Fund
FINANCIAL STATEMENTS AND OTHER INFORMATION
AUGUST 31, 2024
| | | | |
Table of Contents | | Financial Statements and Other Information | | August 31, 2024 |
Form N-CSR Item 7 - Financial Statements and Financial Highlights for Open-End Management Investment Companies.
Other Information - Form N-CSR Items 8-11
Glossary
The following abbreviations are used in the Funds’ descriptions:
EUR—Euro
GBP—British Pound
USD—US Dollar
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and, pursuant to the requirements of Rule 144A, may not be resold except to qualified institutional buyers.
BARC—Barclays Bank PLC
BNP—BNP Paribas S.A.
BOA—Bank of America, N.A.
CDX—Credit Derivative Index
CGM—Citigroup Global Markets, Inc.
CLO—Collateralized Loan Obligation
DAC—Designated Activity Company
ETF—Exchange-Traded Fund
EURIBOR—Euro Interbank Offered Rate
GMTN—Global Medium Term Note
GSI—Goldman Sachs International
HSBC—HSBC Bank PLC
iBoxx—Bond Market Indices
JPM—JPMorgan Chase Bank N.A.
JPS—J.P. Morgan Securities LLC
LIBOR—London Interbank Offered Rate
LP—Limited Partnership
MSI—Morgan Stanley & Co International PLC
MTN—Medium Term Note
OTC—Over-the-counter
PIK—Payment-in-Kind
Q—Quarterly payment frequency for swaps
REITs—Real Estate Investment Trust
SOFR—Secured Overnight Financing Rate
SONIA—Sterling Overnight Index Average
T—Swap payment upon termination
1
PGIM ESG High Yield Fund
Schedule of Investments
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
|
LONG-TERM INVESTMENTS 96.4% | |
|
ASSET-BACKED SECURITIES 2.7% | |
|
Collateralized Loan Obligations | |
| | | | |
Ares CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2018-28RA, Class A1R, 144A, 3 Month SOFR + 1.150% (Cap N/A, Floor 1.150%) | | | 6.436%(c) | | | | 10/17/30 | | | | 201 | | | $ | 201,743 | |
HPS Loan Management Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 13A-18, Class A1R, 144A, 3 Month SOFR + 1.130% (Cap N/A, Floor 1.130%) | | | 6.431(c) | | | | 10/15/30 | | | | 218 | | | | 217,565 | |
Sound Point CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2018-03A, Class A1AR, 144A, 3 Month SOFR + 1.300% (Cap N/A, Floor 1.300%) | | | 6.579(c) | | | | 10/26/31 | | | | 242 | | | | 241,581 | |
Voya CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2014-02A, Class A1RR, 144A, 3 Month SOFR + 1.282% (Cap N/A, Floor 1.020%) | | | 6.567(c) | | | | 04/17/30 | | | | 52 | | | | 51,694 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL ASSET-BACKED SECURITIES
(cost $712,130) | | | | | | | | | | | | | | | 712,583 | |
| | | | | | | | | | | | | | | | |
| | | | |
CORPORATE BONDS 82.8% | | | | | | | | | | | | | | | | |
| | | | |
Advertising 0.2% | | | | | | | | | | | | | | | | |
| | | | |
CMG Media Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | | | | | | | | | | | | | | |
(original cost $73,009; purchased 12/08/21 -09/22/22)(f) | | | 8.875 | | | | 12/15/27 | | | | 75 | | | | 39,870 | |
| | | | |
Aerospace & Defense 1.2% | | | | | | | | | | | | | | | | |
Bombardier, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 02/15/28 | | | | 55 | | | | 54,862 | |
Sr. Unsec’d. Notes, 144A | | | 7.000 | | | | 06/01/32 | | | | 25 | | | | 26,031 | |
Sr. Unsec’d. Notes, 144A | | | 7.125 | | | | 06/15/26 | | | | 13 | | | | 13,228 | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 07/01/31 | | | | 15 | | | | 15,769 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 02/01/29 | | | | 20 | | | | 21,050 | |
Sr. Unsec’d. Notes, 144A | | | 7.875 | | | | 04/15/27 | | | | 70 | | | | 70,350 | |
Sr. Unsec’d. Notes, 144A | | | 8.750 | | | | 11/15/30 | | | | 100 | | | | 108,750 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 310,040 | |
| | | | |
Airlines 0.8% | | | | | | | | | | | | | | | | |
American Airlines, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.250 | | | | 02/15/28 | | | | 25 | | | | 25,158 | |
See Notes to Financial Statements.
2
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Airlines (cont’d.) | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.750% | | | | 04/20/29 | | | | 100 | | | $ | 97,813 | |
United Airlines, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 04/15/26 | | | | 50 | | | | 48,839 | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 04/15/29 | | | | 50 | | | | 47,612 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 219,422 | |
| | | | |
Apparel 1.2% | | | | | | | | | | | | | | | | |
Kontoor Brands, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 11/15/29 | | | | 75 | | | | 70,698 | |
Levi Strauss & Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.500 | | | | 03/01/31 | | | | 75 | | | | 67,813 | |
William Carter Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625 | | | | 03/15/27 | | | | 100 | | | | 99,866 | |
Wolverine World Wide, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.000 | | | | 08/15/29 | | | | 100 | | | | 85,360 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 323,737 | |
| | | | |
Auto Manufacturers 0.4% | | | | | | | | | | | | | | | | |
JB Poindexter & Co., Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.750 | | | | 12/15/31 | | | | 35 | | | | 36,923 | |
PM General Purchaser LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 10/01/28 | | | | 70 | | | | 71,773 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 108,696 | |
| | | | |
Auto Parts & Equipment 1.7% | | | | | | | | | | | | | | | | |
Adient Global Holdings Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 04/15/28 | | | | 69 | | | | 70,725 | |
American Axle & Manufacturing, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.500 | | | | 04/01/27 | | | | 25 | | | | 25,140 | |
Dana, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.250 | | | | 09/01/30 | | | | 125 | | | | 112,818 | |
Garrett Motion Holdings, Inc./Garrett LX I Sarl, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 05/31/32 | | | | 40 | | | | 41,454 | |
Phinia, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 04/15/29 | | | | 10 | | | | 10,267 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 3
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Auto Parts & Equipment (cont’d.) | |
Tenneco, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.000% | | | | 11/17/28 | | | | 150 | | | $ | 140,012 | |
Titan International, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 7.000 | | | | 04/30/28 | | | | 50 | | | | 48,876 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 449,292 | |
| | | | |
Banks 1.4% | | | | | | | | | | | | | | | | |
Citigroup, Inc., | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, Series X | | | 3.875(ff) | | | | 02/18/26(oo) | | | | 75 | | | | 71,916 | |
Freedom Mortgage Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.625 | | | | 01/15/27 | | | | 50 | | | | 49,363 | |
Sr. Unsec’d. Notes, 144A | | | 7.625 | | | | 05/01/26 | | | | 25 | | | | 25,145 | |
Sr. Unsec’d. Notes, 144A | | | 12.250 | | | | 10/01/30 | | | | 25 | | | | 27,753 | |
Intesa Sanpaolo SpA (Italy), | | | | | | | | | | | | | | | | |
Sub. Notes, 144A | | | 4.198(ff) | | | | 06/01/32 | | | | 200 | | | | 175,215 | |
Popular, Inc. (Puerto Rico), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 7.250 | | | | 03/13/28 | | | | 25 | | | | 26,125 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 375,517 | |
| | | | |
Building Materials 1.7% | | | | | | | | | | | | | | | | |
Builders FirstSource, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 03/01/30 | | | | 10 | | | | 9,709 | |
Cornerstone Building Brands, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 01/15/29 | | | | 75 | | | | 62,624 | |
Eco Material Technologies, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.875 | | | | 01/31/27 | | | | 40 | | | | 40,429 | |
EMRLD Borrower LP/Emerald Co-Issuer, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 07/15/31 | | | | 25 | | | | 25,770 | |
JELD-WEN, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 12/15/25 | | | | 24 | | | | 23,990 | |
Masterbrand, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 07/15/32 | | | | 15 | | | | 15,468 | |
Miter Brands Acquisition Holdco, Inc./MIWD Borrower LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 04/01/32 | | | | 13 | | | | 13,368 | |
MIWD Holdco II LLC/MIWD Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 02/01/30 | | | | 25 | | | | 23,784 | |
See Notes to Financial Statements.
4
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Building Materials (cont’d.) | |
Smyrna Ready Mix Concrete LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.000% | | | | 11/01/28 | | | | 75 | | | $ | 74,785 | |
Sr. Sec’d. Notes, 144A | | | 8.875 | | | | 11/15/31 | | | | 20 | | | | 21,508 | |
Standard Building Solutions, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 08/15/32 | | | | 10 | | | | 10,303 | |
Standard Industries, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.375 | | | | 01/15/31 | | | | 40 | | | | 35,029 | |
Sr. Unsec’d. Notes, 144A | | | 4.375 | | | | 07/15/30 | | | | 25 | | | | 23,399 | |
Sr. Unsec’d. Notes, 144A | | | 4.750 | | | | 01/15/28 | | | | 75 | | | | 73,073 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 453,239 | |
| | | | |
Chemicals 1.6% | | | | | | | | | | | | | | | | |
Ashland, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.375 | | | | 09/01/31 | | | | 100 | | | | 87,918 | |
ASP Unifrax Holdings, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A (original cost $126,463; purchased 12/08/21)(f) | | | 5.250 | | | | 09/30/28 | | | | 125 | | | | 64,702 | |
Sr. Unsec’d. Notes, 144A (original cost $12,875; purchased 07/01/24)(f) | | | 7.500 | | | | 09/30/29 | | | | 25 | | | | 12,573 | |
Olympus Water US Holding Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.750 | | | | 11/15/28 | | | | 200 | | | | 213,371 | |
SK Invictus Intermediate II Sarl, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.000 | | | | 10/30/29 | | | | 40 | | | | 37,600 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 416,164 | |
| | | | |
Commercial Services 6.0% | | | | | | | | | | | | | | | | |
Adtalem Global Education, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 03/01/28 | | | | 25 | | | | 24,577 | |
Allied Universal Holdco LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.875 | | | | 02/15/31 | | | | 40 | | | | 40,602 | |
Allied Universal Holdco LLC/Allied Universal Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.750 | | | | 07/15/27 | | | | 100 | | | | 100,116 | |
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 Sarl, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 06/01/28 | | | | 200 | | | | 184,500 | |
Alta Equipment Group, Inc., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 9.000 | | | | 06/01/29 | | | | 40 | | | | 36,306 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 5
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Commercial Services (cont’d.) | |
AMN Healthcare, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.000% | | | | 04/15/29 | | | | 25 | | | $ | 23,345 | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/01/27 | | | | 225 | | | | 220,214 | |
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.375 | | | | 03/01/29 | | | | 75 | | | | 68,917 | |
Brink’s Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/15/27 | | | | 50 | | | | 48,830 | |
Herc Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 07/15/27 | | | | 50 | | | | 49,651 | |
Gtd. Notes, 144A | | | 6.625 | | | | 06/15/29 | | | | 15 | | | | 15,431 | |
Hertz Corp. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 12/01/29 | | | | 25 | | | | 16,778 | |
Mavis Tire Express Services Topco Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 05/15/29 | | | | 125 | | | | 120,454 | |
NESCO Holdings II, Inc., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 5.500 | | | | 04/15/29 | | | | 75 | | | | 69,316 | |
Service Corp. International, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.000 | | | | 05/15/31 | | | | 75 | | | | 68,828 | |
Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.750 | | | | 08/15/32 | | | | 15 | | | | 15,478 | |
United Rentals North America, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.750 | | | | 01/15/32 | | | | 475 | | | | 428,848 | |
VT Topco, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.500 | | | | 08/15/30 | | | | 25 | | | | 26,260 | |
Williams Scotsman, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 06/15/29 | | | | 10 | | | | 10,316 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,568,767 | |
| | | | |
Computers 2.4% | | | | | | | | | | | | | | | | |
Amentum Escrow Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 08/01/32 | | | | 20 | | | | 20,898 | |
CA Magnum Holdings (India), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.375 | | | | 10/31/26 | | | | 200 | | | | 194,875 | |
Fortress Intermediate 3, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 06/01/31 | | | | 45 | | | | 46,735 | |
Gartner, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.750 | | | | 10/01/30 | | | | 100 | | | | 92,561 | |
McAfee Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.375 | | | | 02/15/30 | | | | 100 | | | | 95,908 | |
See Notes to Financial Statements.
6
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Computers (cont’d.) | |
NCR Atleos Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.500% | | | | 04/01/29 | | | | 52 | | | $ | 57,333 | |
NCR Voyix Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 10/01/28 | | | | 125 | | | | 123,323 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 631,633 | |
| | | | |
Distribution/Wholesale 1.0% | | | | | | | | | | | | | | | | |
H&E Equipment Services, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.875 | | | | 12/15/28 | | | | 200 | | | | 185,257 | |
Ritchie Bros Holdings, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 03/15/31 | | | | 25 | | | | 26,500 | |
Windsor Holdings III LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.500 | | | | 06/15/30 | | | | 50 | | | | 53,673 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 265,430 | |
| | | | |
Diversified Financial Services 6.1% | | | | | | | | | | | | | | | | |
Bread Financial Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.750 | | | | 03/15/29 | | | | 55 | | | | 59,379 | |
Freedom Mortgage Holdings LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.125 | | | | 05/15/31 | | | | 40 | | | | 40,337 | |
Sr. Unsec’d. Notes, 144A | | | 9.250 | | | | 02/01/29 | | | | 20 | | | | 20,476 | |
GGAM Finance Ltd. (Ireland), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.875 | | | | 04/15/29 | | | | 10 | | | | 10,325 | |
Gtd. Notes, 144A | | | 8.000 | | | | 02/15/27 | | | | 50 | | | | 52,000 | |
goeasy Ltd. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.250 | | | | 12/01/28 | | | | 20 | | | | 21,450 | |
Sr. Unsec’d. Notes, 144A | | | 7.625 | | | | 07/01/29 | | | | 25 | | | | 25,675 | |
Intercontinental Exchange, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.625 | | | | 09/01/28 | | | | 105 | | | | 101,697 | |
LD Holdings Group LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 04/01/28 | | | | 25 | | | | 21,178 | |
LFS Topco LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 10/15/26 | | | | 25 | | | | 23,247 | |
LPL Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.375 | | | | 05/15/31 | | | | 125 | | | | 117,008 | |
Macquarie Airfinance Holdings Ltd. (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.400 | | | | 03/26/29 | | | | 5 | | | | 5,166 | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 03/26/31 | | | | 10 | | | | 10,436 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 7
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Diversified Financial Services (cont’d.) | |
Macquarie Airfinance Holdings Ltd. (United Kingdom), (cont’d.) | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.125% | | | | 03/30/29 | | | | 50 | | | $ | 53,187 | |
Nationstar Mortgage Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 12/15/30 | | | | 225 | | | | 213,705 | |
Gtd. Notes, 144A | | | 5.500 | | | | 08/15/28 | | | | 200 | | | | 196,601 | |
Gtd. Notes, 144A | | | 5.750 | | | | 11/15/31 | | | | 15 | | | | 14,604 | |
Gtd. Notes, 144A | | | 6.500 | | | | 08/01/29 | | | | 15 | | | | 15,115 | |
Navient Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.500 | | | | 03/15/29 | | | | 50 | | | | 47,555 | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 10/25/24 | | | | 25 | | | | 24,975 | |
Sr. Unsec’d. Notes | | | 6.750 | | | | 06/25/25 | | | | 25 | | | | 25,083 | |
Sr. Unsec’d. Notes | | | 9.375 | | | | 07/25/30 | | | | 25 | | | | 27,120 | |
OneMain Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.875 | | | | 09/15/28 | | | | 100 | | | | 92,106 | |
Gtd. Notes | | | 7.125 | | | | 03/15/26 | | | | 75 | | | | 76,410 | |
Gtd. Notes | | | 7.500 | | | | 05/15/31 | | | | 20 | | | | 20,642 | |
PennyMac Financial Services, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.375 | | | | 10/15/25 | | | | 125 | | | | 124,498 | |
Gtd. Notes, 144A | | | 7.125 | | | | 11/15/30 | | | | 20 | | | | 20,315 | |
Gtd. Notes, 144A | | | 7.875 | | | | 12/15/29 | | | | 15 | | | | 15,921 | |
PRA Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.875 | | | | 01/31/30 | | | | 15 | | | | 15,517 | |
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.875 | | | | 03/01/31 | | | | 25 | | | | 22,831 | |
Gtd. Notes, 144A | | | 4.000 | | | | 10/15/33 | | | | 100 | | | | 88,324 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,602,883 | |
| | | | |
Electrical Components & Equipment 0.8% | | | | | | | | | | | | | | | | |
Energizer Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 06/15/28 | | | | 50 | | | | 48,257 | |
EnerSys, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.625 | | | | 01/15/32 | | | | 10 | | | | 10,481 | |
WESCO Distribution, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.375 | | | | 03/15/29 | | | | 15 | | | | 15,416 | |
Gtd. Notes, 144A | | | 6.625 | | | | 03/15/32 | | | | 20 | | | | 20,638 | |
Gtd. Notes, 144A | | | 7.250 | | | | 06/15/28 | | | | 100 | | | | 102,606 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 197,398 | |
See Notes to Financial Statements.
8
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Engineering & Construction 0.4% | |
TopBuild Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | | | | | | | | | | | | | | |
| | | 3.625% | | | | 03/15/29 | | | | 125 | | | $ | 115,745 | |
| | | | |
Entertainment 0.2% | | | | | | | | | | | | | | | | |
Cinemark USA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 08/01/32 | | | | 10 | | | | 10,380 | |
Scientific Games Holdings LP/Scientific Games US FinCo, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.625 | | | | 03/01/30 | | | | 50 | | | | 49,520 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 59,900 | |
| | | | |
Environmental Control 1.3% | | | | | | | | | | | | | | | | |
GFL Environmental, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.000 | | | | 08/01/28 | | | | 125 | | | | 118,750 | |
Gtd. Notes, 144A | | | 4.375 | | | | 08/15/29 | | | | 100 | | | | 94,907 | |
Reworld Holding Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.000 | | | | 09/01/30 | | | | 25 | | | | 22,978 | |
Gtd. Notes, 144A | | | 4.875 | | | | 12/01/29 | | | | 100 | | | | 92,843 | |
Wrangler Holdco Corp. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.625 | | | | 04/01/32 | | | | 5 | | | | 5,175 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 334,653 | |
| | | | |
Foods 2.0% | | | | | | | | | | | | | | | | |
Albertson’s Cos., Inc./Safeway, Inc./New Albertson’s LP/Albertson’s LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.500 | | | | 03/15/29 | | | | 50 | | | | 46,330 | |
Gtd. Notes, 144A | | | 6.500 | | | | 02/15/28 | | | | 25 | | | | 25,318 | |
B&G Foods, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.250 | | | | 04/01/25 | | | | 27 | | | | 26,742 | |
Gtd. Notes | | | 5.250 | | | | 09/15/27 | | | | 125 | | | | 118,394 | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 09/15/28 | | | | 50 | | | | 51,969 | |
Ingles Markets, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.000 | | | | 06/15/31 | | | | 50 | | | | 44,818 | |
Lamb Weston Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 01/31/30 | | | | 100 | | | | 93,092 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 9
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Foods (cont’d.) | |
Post Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625% | | | | 04/15/30 | | | | 50 | | | $ | 47,531 | |
Sr. Unsec’d. Notes, 144A | | | 4.500 | | | | 09/15/31 | | | | 75 | | | | 69,763 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 523,957 | |
| | | | |
Gas 0.2% | | | | | | | | | | | | | | | | |
AmeriGas Partners LP/AmeriGas Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.750 | | | | 05/20/27 | | | | 15 | | | | 14,680 | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 08/20/26 | | | | 40 | | | | 39,574 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 54,254 | |
| | | | |
Healthcare-Products 0.9% | | | | | | | | | | | | | | | | |
Medline Borrower LP, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | | | | | | | | | | | | | | |
| | | 3.875 | | | | 04/01/29 | | | | 260 | | | | 245,890 | |
| | | | |
Healthcare-Services 3.8% | | | | | | | | | | | | | | | | |
DaVita, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.750 | | | | 02/15/31 | | | | 175 | | | | 155,833 | |
Gtd. Notes, 144A | | | 4.625 | | | | 06/01/30 | | | | 175 | | | | 164,699 | |
LifePoint Health, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.375 | | | | 01/15/29 | | | | 75 | | | | 70,090 | |
MPH Acquisition Holdings LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 09/01/28 | | | | 150 | | | | 109,435 | |
Prime Healthcare Services, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.375 | | | | 09/01/29 | | | | 20 | | | | 20,151 | |
Tenet Healthcare Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 4.250 | | | | 06/01/29 | | | | 150 | | | | 144,034 | |
Sr. Sec’d. Notes | | | 4.375 | | | | 01/15/30 | | | | 200 | | | | 191,370 | |
Sr. Unsec’d. Notes | | | 6.875 | | | | 11/15/31 | | | | 125 | | | | 135,987 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 991,599 | |
| | | | |
Home Builders 6.5% | | | | | | | | | | | | | | | | |
Ashton Woods USA LLC/Ashton Woods Finance Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 08/01/29 | | | | 25 | | | | 23,720 | |
Sr. Unsec’d. Notes, 144A | | | 6.625 | | | | 01/15/28 | | | | 125 | | | | 125,999 | |
See Notes to Financial Statements.
10
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Home Builders (cont’d.) | |
| | | | |
Beazer Homes USA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.875% | | | | 10/15/27 | | | | 150 | | | $ | 149,114 | |
Gtd. Notes | | | 7.250 | | | | 10/15/29 | | | | 75 | | | | 76,655 | |
| | | | |
Brookfield Residential Properties, Inc./Brookfield Residential US LLC (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.250 | | | | 09/15/27 | | | | 50 | | | | 49,750 | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 06/15/29 | | | | 75 | | | | 70,125 | |
| | | | |
Empire Communities Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.750 | | | | 05/01/29 | | | | 25 | | | | 26,406 | |
| | | | |
Forestar Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 03/01/28 | | | | 125 | | | | 121,293 | |
| | | | |
KB Home, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.000 | | | | 06/15/31 | | | | 150 | | | | 138,385 | |
Gtd. Notes | | | 4.800 | | | | 11/15/29 | | | | 25 | | | | 24,404 | |
| | | | |
Landsea Homes Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.875 | | | | 04/01/29 | | | | 50 | | | | 51,709 | |
| | | | |
M/I Homes, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.950 | | | | 02/01/28 | | | | 150 | | | | 147,121 | |
| | | | |
Mattamy Group Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 03/01/30 | | | | 200 | | | | 189,250 | |
| | | | |
Meritage Homes Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.125 | | | | 06/06/27 | | | | 75 | | | | 75,549 | |
| | | | |
Shea Homes LP/Shea Homes Funding Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 02/15/28 | | | | 25 | | | | 24,401 | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 04/01/29 | | | | 100 | | | | 96,099 | |
| | | | |
STL Holding Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.750 | | | | 02/15/29 | | | | 25 | | | | 26,276 | |
| | | | |
Taylor Morrison Communities, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 01/15/28 | | | | 50 | | | | 50,422 | |
Gtd. Notes, 144A | | | 5.875 | | | | 06/15/27 | | | | 75 | | | | 75,971 | |
Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 08/01/30 | | | | 25 | | | | 24,752 | |
| | | | |
Tri Pointe Homes, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.700 | | | | 06/15/28 | | | | 150 | | | | 150,785 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,718,186 | |
| | | | |
Household Products/Wares 0.3% | | | | | | | | | | | | | | | | |
| | | | |
ACCO Brands Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | | | | | | | | | | | | | | |
| | | 4.250 | | | | 03/15/29 | | | | 75 | | | | 69,760 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 11
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Housewares 0.7% | |
| | | | |
Scotts Miracle-Gro Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.000% | | | | 04/01/31 | | | | 150 | | | $ | 134,400 | |
SWF Holdings I Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A (original cost $96,580; purchased 12/08/21)(f) | | | 6.500 | | | | 10/01/29 | | | | 100 | | | | 52,999 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 187,399 | |
| | | | |
Insurance 0.7% | | | | | | | | | | | | | | | | |
| | | | |
Acrisure LLC/Acrisure Finance, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 11/06/30 | | | | 35 | | | | 35,980 | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 08/01/29 | | | | 25 | | | | 23,874 | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 02/01/29 | | | | 50 | | | | 51,414 | |
Sr. Unsec’d. Notes, 144A | | | 8.500 | | | | 06/15/29 | | | | 15 | | | | 15,604 | |
AmWINS Group, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.875 | | | | 06/30/29 | | | | 25 | | | | 23,836 | |
AssuredPartners, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 01/15/29 | | | | 25 | | | | 23,889 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 174,597 | |
| | | | |
Internet 0.6% | | | | | | | | | | | | | | | | |
| | | | |
Gen Digital, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 04/15/25 | | | | 125 | | | | 124,459 | |
Go Daddy Operating Co. LLC/GD Finance Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.500 | | | | 03/01/29 | | | | 25 | | | | 23,257 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 147,716 | |
| | | | |
Iron/Steel 0.7% | | | | | | | | | | | | | | | | |
| | | | |
Big River Steel LLC/BRS Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 01/31/29 | | | | 100 | | | | 101,098 | |
Cleveland-Cliffs, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.750 | | | | 04/15/30 | | | | 50 | | | | 50,768 | |
Gtd. Notes, 144A | | | 7.000 | | | | 03/15/32 | | | | 20 | | | | 20,092 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 171,958 | |
See Notes to Financial Statements.
12
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Leisure Time 1.2% | |
| | | | |
Amer Sports Co. (Finland), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750% | | | | 02/16/31 | | | | 50 | | | $ | 50,500 | |
NCL Corp. Ltd., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.750 | | | | 02/15/29 | | | | 250 | | | | 266,563 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 317,063 | |
| | | | |
Lodging 0.3% | | | | | | | | | | | | | | | | |
| | | | |
Hilton Domestic Operating Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | | | | | | | | | | | | | | |
| | | 3.625 | | | | 02/15/32 | | | | 100 | | | | 89,705 | |
| | | | |
Machinery-Construction & Mining 0.3% | | | | | | | | | | | | | | | | |
| | | | |
Terex Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | | | | | | | | | | | | | | |
| | | 5.000 | | | | 05/15/29 | | | | 75 | | | | 72,870 | |
| | | | |
Machinery-Diversified 0.8% | | | | | | | | | | | | | | | | |
| | | | |
Chart Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.500 | | | | 01/01/31 | | | | 30 | | | | 32,577 | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 01/01/30 | | | | 100 | | | | 105,146 | |
GrafTech Finance, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A (original cost $46,454; purchased 01/13/22 -
08/30/22)(f) | | | 4.625 | | | | 12/15/28 | | | | 50 | | | | 33,481 | |
Maxim Crane Works Holdings Capital LLC, | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 11.500 | | | | 09/01/28 | | | | 50 | | | | 52,030 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 223,234 | |
| | | | |
Media 4.8% | | | | | | | | | | | | | | | | |
| | | | |
CCO Holdings LLC/CCO Holdings Capital Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 02/01/28 | | | | 225 | | | | 216,442 | |
Diamond Sports Group LLC/Diamond Sports Finance Co., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $69,525; purchased 01/19/22 - 06/03/22)(f) | | | 6.625 | | | | 08/15/27(d) | | | | 285 | | | | 5,218 | |
Sec’d. Notes, 144A (original cost $107,008; purchased 01/10/22 - 08/30/22)(f) | | | 5.375 | | | | 08/15/26(d) | | | | 299 | | | | 3,840 | |
DISH DBS Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.125 | | | | 06/01/29 | | | | 85 | | | | 38,785 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 13
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Media (cont’d.) | |
| | | | |
DISH DBS Corp., (cont’d.) | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.375% | | | | 07/01/28 | | | | 50 | | | $ | 25,681 | |
Gtd. Notes | | | 7.750 | | | | 07/01/26 | | | | 125 | | | | 84,505 | |
DISH Network Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 11.750 | | | | 11/15/27 | | | | 150 | | | | 152,442 | |
Nexstar Media, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625 | | | | 07/15/27 | | | | 25 | | | | 24,431 | |
Radiate Holdco LLC/Radiate Finance, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.500 | | | | 09/15/26 | | | | 125 | | | | 99,005 | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 09/15/28 | | | | 75 | | | | 41,259 | |
Sinclair Television Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 02/15/27 | | | | 75 | | | | 63,890 | |
Univision Communications, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 06/01/27 | | | | 175 | | | | 173,229 | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 08/15/28 | | | | 45 | | | | 45,501 | |
Videotron Ltd. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 04/15/27 | | | | 100 | | | | 99,557 | |
VZ Secured Financing BV (Netherlands), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.000 | | | | 01/15/32 | | | | 200 | | | | 180,687 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,254,472 | |
| | | | |
Mining 1.1% | | | | | | | | | | | | | | | | |
| | | | |
Arsenal AIC Parent LLC, | | | | | | | | | | | | | | | | |
Unsec’d. Notes, 144A | | | 11.500 | | | | 10/01/31 | | | | 55 | | | | 62,262 | |
Hudbay Minerals, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 04/01/29 | | | | 125 | | | | 125,747 | |
Novelis Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 01/30/30 | | | | 100 | | | | 95,745 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 283,754 | |
| | | | |
Miscellaneous Manufacturing 0.9% | | | | | | | | | | | | | | | | |
| | | | |
Amsted Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625 | | | | 07/01/27 | | | | 50 | | | | 49,862 | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 05/15/30 | | | | 125 | | | | 117,779 | |
Trinity Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 07/15/28 | | | | 65 | | | | 68,102 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 235,743 | |
See Notes to Financial Statements.
14
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Office/Business Equipment 0.0% | |
| | | | |
Zebra Technologies Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | | | | | | | | | | | | | | |
| | | 6.500% | | | | 06/01/32 | | | | 10 | | | $ | 10,345 | |
| | | | |
Oil & Gas 3.0% | | | | | | | | | | | | | | | | |
| | | | |
Antero Resources Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.625 | | | | 02/01/29 | | | | 25 | | | | 25,903 | |
Ascent Resources Utica Holdings LLC/ARU Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 12/31/28 | | | | 150 | | | | 154,497 | |
Chesapeake Energy Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $ 52,375; purchased 01/20/22)(f) | | | 5.500 | | | | 02/01/26 | | | | 50 | | | | 49,972 | |
Gtd. Notes, 144A (original cost $ 107,080; purchased 12/08/21)(f) | | | 5.875 | | | | 02/01/29 | | | | 100 | | | | 100,289 | |
CNX Resources Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.250 | | | | 03/01/32 | | | | 20 | | | | 20,978 | |
Comstock Resources, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 01/15/30 | | | | 125 | | | | 118,260 | |
Gtd. Notes, 144A | | | 6.750 | | | | 03/01/29 | | | | 25 | | | | 24,585 | |
Range Resources Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.875 | | | | 05/15/25 | | | | 25 | | | | 24,887 | |
Gtd. Notes, 144A | | | 4.750 | | | | 02/15/30 | | | | 25 | | | | 24,009 | |
Southwestern Energy Co., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.375 | | | | 03/15/30 | | | | 115 | | | | 114,054 | |
Sunoco LP/Sunoco Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.500 | | | | 04/30/30 | | | | 150 | | | | 142,781 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 800,215 | |
| | | | |
Packaging & Containers 1.8% | | | | | | | | | | | | | | | | |
| | | | |
Ball Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 2.875 | | | | 08/15/30 | | | | 125 | | | | 110,422 | |
Graphic Packaging International LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.500 | | | | 03/01/29 | | | | 25 | | | | 23,235 | |
LABL, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.875 | | | | 11/01/28 | | | | 125 | | | | 115,839 | |
Sr. Unsec’d. Notes, 144A | | | 10.500 | | | | 07/15/27 | | | | 30 | | | | 29,629 | |
Mauser Packaging Solutions Holding Co., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.875 | | | | 04/15/27 | | | | 35 | | | | 36,196 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 15
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Packaging & Containers (cont’d.) | |
| | | | |
Owens-Brockway Glass Container, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.625% | | | | 05/13/27 | | | | 19 | | | $ | 19,049 | |
Gtd. Notes, 144A | | | 7.250 | | | | 05/15/31 | | | | 25 | | | | 25,318 | |
Trident TPI Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 12.750 | | | | 12/31/28 | | | | 70 | | | | 76,800 | |
TriMas Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 04/15/29 | | | | 50 | | | | 46,529 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 483,017 | |
| | | | |
Pharmaceuticals 3.2% | | | | | | | | | | | | | | | | |
| | | | |
AdaptHealth LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 08/01/29 | | | | 125 | | | | 114,104 | |
Gtd. Notes, 144A | | | 6.125 | | | | 08/01/28 | | | | 25 | | | | 24,789 | |
Bausch Health Americas, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $17,563; purchased 05/20/24)(f) | | | 8.500 | | | | 01/31/27 | | | | 25 | | | | 18,515 | |
Bausch Health Cos., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $181,700; purchased 12/08/21)(f) | | | 5.000 | | | | 01/30/28 | | | | 200 | | | | 110,000 | |
Gtd. Notes, 144A (original cost $24,000; purchased 06/05/24)(f) | | | 5.000 | | | | 02/15/29 | | | | 50 | | | | 25,500 | |
Gtd. Notes, 144A (original cost $311,270; purchased 12/08/21 - 04/09/24)(f) | | | 5.250 | | | | 01/30/30 | | | | 400 | | | | 192,000 | |
Gtd. Notes, 144A (original cost $25,250; purchased 05/17/24)(f) | | | 5.250 | | | | 02/15/31 | | | | 50 | | | | 24,000 | |
Gtd. Notes, 144A (original cost $26,500; purchased 05/21/24)(f) | | | 6.250 | | | | 02/15/29 | | | | 50 | | | | 25,250 | |
Gtd. Notes, 144A (original cost $28,500; purchased 05/17/24)(f) | | | 7.000 | | | | 01/15/28 | | | | 50 | | | | 28,750 | |
Gtd. Notes, 144A (original cost $14,875; purchased 08/26/22)(f) | | | 9.000 | | | | 12/15/25 | | | | 25 | | | | 22,562 | |
Sr. Sec’d. Notes, 144A (original cost $37,250; purchased 05/24/24)(f) | | | 4.875 | | | | 06/01/28 | | | | 50 | | | | 37,607 | |
Organon & Co./Organon Foreign Debt Co-Issuer BV, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 04/30/31 | | | | 200 | | | | 187,124 | |
P&L Development LLC/PLD Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.750 | | | | 11/15/25 | | | | 25 | | | | 23,562 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 833,763 | |
See Notes to Financial Statements.
16
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Pipelines 3.7% | |
| | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.375% | | | | 06/15/29 | | | | 100 | | | $ | 98,836 | |
Gtd. Notes, 144A | | | 5.750 | | | | 03/01/27 | | | | 50 | | | | 49,951 | |
Gtd. Notes, 144A | | | 6.625 | | | | 02/01/32 | | | | 10 | | | | 10,314 | |
Blue Racer Midstream LLC/Blue Racer Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.000 | | | | 07/15/29 | | | | 10 | | | | 10,405 | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 07/15/32 | | | | 10 | | | | 10,507 | |
Cheniere Energy Partners LP, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.000 | | | | 03/01/31 | | | | 150 | | | | 141,552 | |
Cheniere Energy, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.625 | | | | 10/15/28 | | | | 65 | | | | 64,324 | |
EQM Midstream Partners LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 06/01/27 | | | | 50 | | | | 51,581 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 06/01/30 | | | | 25 | | | | 27,291 | |
Global Partners LP/GLP Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.000 | | | | 08/01/27 | | | | 75 | | | | 75,698 | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 01/15/28 | | | | 125 | | | | 120,644 | |
Venture Global Calcasieu Pass LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 08/15/29 | | | | 75 | | | | 70,913 | |
Venture Global LNG, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 01/15/30 | | | | 25 | | | | 25,589 | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 02/01/29 | | | | 100 | | | | 112,692 | |
Sr. Sec’d. Notes, 144A | | | 9.875 | | | | 02/01/32 | | | | 100 | | | | 111,295 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 981,592 | |
| | | | |
Real Estate 1.1% | | | | | | | | | | | | | | | | |
| | | | |
Five Point Operating Co. LP/Five Point Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 10.500(cc) | | | | 01/15/28 | | | | 63 | | | | 64,692 | |
Howard Hughes Corp. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.375 | | | | 08/01/28 | | | | 150 | | | | 146,000 | |
Hunt Cos., Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.250 | | | | 04/15/29 | | | | 75 | | | | 70,733 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 281,425 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 17
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Real Estate Investment Trusts (REITs) 1.9% | |
| | | | |
Diversified Healthcare Trust, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375% | | | | 03/01/31 | | | | 75 | | | $ | 57,338 | |
Gtd. Notes | | | 9.750 | | | | 06/15/25 | | | | 21 | | | | 21,029 | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 02/15/28 | | | | 10 | | | | 8,789 | |
MPT Operating Partnership LP/MPT Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.625 | | | | 08/01/29 | | | | 50 | | | | 38,378 | |
Gtd. Notes | | | 5.000 | | | | 10/15/27 | | | | 50 | | | | 42,375 | |
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 02/01/30 | | | | 10 | | | | 10,262 | |
RHP Hotel Properties LP/RHP Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.750 | | | | 10/15/27 | | | | 75 | | | | 73,449 | |
SBA Communications Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.125 | | | | 02/01/29 | | | | 225 | | | | 207,073 | |
Starwood Property Trust, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.375 | | | | 01/15/27 | | | | 25 | | | | 24,292 | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 04/01/29 | | | | 10 | | | | 10,417 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 493,402 | |
| | | | |
Retail 5.4% | | | | | | | | | | | | | | | | |
| | | | |
1011778 BC ULC/New Red Finance, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.500 | | | | 02/15/29 | | | | 25 | | | | 23,330 | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 01/15/28 | | | | 125 | | | | 119,375 | |
Arko Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 11/15/29 | | | | 50 | | | | 44,466 | |
BCPE Ulysses Intermediate, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, Cash coupon 7.750% or PIK 8.500% | | | 7.750 | | | | 04/01/27 | | | | 25 | | | | 24,234 | |
Brinker International, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 10/01/24 | | | | 50 | | | | 49,960 | |
Gtd. Notes, 144A | | | 8.250 | | | | 07/15/30 | | | | 50 | | | | 53,124 | |
Carvana Co., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, Cash coupon 9.000% or PIK 12.000% | | | 12.000 | | | | 12/01/28 | | | | 125 | | | | 129,705 | |
Sr. Sec’d. Notes, 144A, Cash coupon 11.000% or PIK 13.000% | | | 13.000 | | | | 06/01/30 | | | | 53 | | | | 56,796 | |
Sr. Sec’d. Notes, 144A, PIK 14.000% | | | 14.000 | | | | 06/01/31 | | | | 52 | | | | 59,021 | |
Foundation Building Materials, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.000 | | | | 03/01/29 | | | | 50 | | | | 44,946 | |
See Notes to Financial Statements.
18
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Retail (cont’d.) | |
| | | | |
Gap, Inc. (The),
Gtd. Notes, 144A | | | 3.875% | | | | 10/01/31 | | | | 75 | | | $ | 64,780 | |
LBM Acquisition LLC,
Gtd. Notes, 144A | | | 6.250 | | | | 01/15/29 | | | | 75 | | | | 67,864 | |
LCM Investments Holdings II LLC,
Sr. Unsec’d. Notes, 144A | | | 4.875 | | | | 05/01/29 | | | | 75 | | | | 71,454 | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 08/01/31 | | | | 50 | | | | 53,152 | |
Lithia Motors, Inc.,
Gtd. Notes, 144A | | | 4.375 | | | | 01/15/31 | | | | 25 | | | | 23,038 | |
Sr. Unsec’d. Notes, 144A | | | 3.875 | | | | 06/01/29 | | | | 25 | | | | 23,207 | |
Park River Holdings, Inc.,
Gtd. Notes, 144A | | | 5.625 | | | | 02/01/29 | | | | 100 | | | | 82,416 | |
Patrick Industries, Inc.,
Gtd. Notes, 144A | | | 4.750 | | | | 05/01/29 | | | | 55 | | | | 51,655 | |
Sally Holdings LLC/Sally Capital, Inc.,
Gtd. Notes | | | 6.750 | | | | 03/01/32 | | | | 75 | | | | 76,529 | |
Suburban Propane Partners LP/Suburban Energy Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 03/01/27 | | | | 100 | | | | 99,527 | |
Superior Plus LP/Superior General Partner, Inc. (Canada),
Gtd. Notes, 144A | | | 4.500 | | | | 03/15/29 | | | | 125 | | | | 116,706 | |
White Cap Buyer LLC,
Sr. Unsec’d. Notes, 144A | | | 6.875 | | | | 10/15/28 | | | | 75 | | | | 74,279 | |
White Cap Parent LLC,
Sr. Unsec’d. Notes, 144A, Cash coupon 8.250% or PIK 9.000% | | | 8.250 | | | | 03/15/26 | | | | 10 | | | | 9,980 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,419,544 | |
| | | | |
Software 1.0% | | | | | | | | | | | | | | | | |
| | | | |
Camelot Finance SA,
Sr. Sec’d. Notes, 144A | | | 4.500 | | | | 11/01/26 | | | | 75 | | | | 73,282 | |
Clarivate Science Holdings Corp.,
Gtd. Notes, 144A | | | 4.875 | | | | 07/01/29 | | | | 75 | | | | 72,224 | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 07/01/28 | | | | 50 | | | | 47,652 | |
SS&C Technologies, Inc.,
Gtd. Notes, 144A | | | 5.500 | | | | 09/30/27 | | | | 75 | | | | 74,960 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 268,118 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 19
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | Maturity
Date | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Telecommunications 6.4% | |
| | | | |
Altice Financing SA (Luxembourg),
Sr. Sec’d. Notes, 144A | | 5.750% | | 08/15/29 | | | 200 | | | $ | 153,500 | |
Digicel Group Holdings Ltd. (Jamaica), | | | | | | | | | | | | |
Sr. Sec’d. Notes, Series 1B14, 144A (original cost $6; purchased 11/14/23)^(f) | | 0.000 | | 12/31/30 | | | 57 | | | | — | |
Sr. Sec’d. Notes, Series 3A14, 144A (original cost $92; purchased 11/14/23)^(f) | | 0.000 | | 12/31/30 | | | —(r | ) | | | 19 | |
Sr. Sec’d. Notes, Series 3B14, 144A (original cost $0; purchased 11/14/23)^(f) | | 0.000 | | 12/31/30 | | | 5 | | | | — | |
Digicel Intermediate Holdings Ltd./Digicel International Finance Ltd./DIFL US (Jamaica), | | | | | | | | | | | | |
Sr. Sec’d. Notes, Cash coupon 9.000% and PIK 1.500% (original cost $190,646; purchased 01/30/24 - 05/15/24)(f) | | 10.500 | | 05/25/27 | | | 205 | | | | 204,138 | |
Digicel MidCo Ltd./DIFL US II LLC (Jamaica),
Sr. Unsec’d. Notes, PIK 10.500% (original cost $3,731; purchased 01/30/24 - 05/15/24)(f) | | 10.500 | | 11/25/28 | | | 6 | | | | 4,628 | |
Frontier Communications Holdings LLC, | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 5.000 | | 05/01/28 | | | 75 | | | | 72,881 | |
Sr. Sec’d. Notes, 144A | | 5.875 | | 10/15/27 | | | 50 | | | | 49,810 | |
Iliad Holding SASU (France),
Sr. Sec’d. Notes, 144A | | 8.500 | | 04/15/31 | | | 200 | | | | 211,500 | |
Intelsat Jackson Holdings SA (Luxembourg),
Sr. Sec’d. Notes, 144A | | 6.500 | | 03/15/30 | | | 175 | | | | 167,846 | |
Level 3 Financing, Inc.,
Gtd. Notes, 144A | | 3.750 | | 07/15/29 | | | 50 | | | | 30,102 | |
Sec’d. Notes, 144A | | 4.500 | | 04/01/30 | | | 100 | | | | 74,072 | |
Sec’d. Notes, 144A | | 4.875 | | 06/15/29 | | | 50 | | | | 39,697 | |
Sr. Sec’d. Notes, 144A | | 10.500 | | 04/15/29 | | | 75 | | | | 80,711 | |
Sr. Sec’d. Notes, 144A | | 11.000 | | 11/15/29 | | | 47 | | | | 51,563 | |
Sprint Capital Corp.,
Gtd. Notes | | 8.750 | | 03/15/32 | | | 50 | | | | 61,598 | |
Sprint LLC,
Gtd. Notes | | 7.625 | | 02/15/25 | | | 275 | | | | 276,007 | |
Zegona Finance PLC (United Kingdom),
Sr. Sec’d. Notes, 144A | | 8.625 | | 07/15/29 | | | 200 | | | | 208,706 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 1,686,778 | |
See Notes to Financial Statements.
20
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Transportation 1.1% | |
| | | | |
GN Bondco LLC,
Sr. Sec’d. Notes, 144A | | | 9.500% | | | | 10/15/31 | | | | 95 | | | $ | 96,765 | |
RXO, Inc.,
Gtd. Notes, 144A | | | 7.500 | | | | 11/15/27 | | | | 100 | | | | 103,561 | |
XPO, Inc.,
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 06/01/28 | | | | 75 | | | | 76,663 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 276,989 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL CORPORATE BONDS
(cost $22,588,034) | | | | | | | | | | | | | | | 21,769,731 | |
| | | | | | | | | | | | | | | | |
| | | | |
FLOATING RATE AND OTHER LOANS 2.0% | | | | | | | | | | | | | | | | |
| | | | |
Advertising 0.1% | | | | | | | | | | | | | | | | |
| | | | |
CMG Media Corp.,
2021 Refinancing Term B Loan, 3 Month SOFR + 3.600% | | | 8.935(c) | | | | 12/17/26 | | | | 25 | | | | 21,516 | |
| | | | |
Auto Parts & Equipment 0.2% | | | | | | | | | | | | | | | | |
| | | | |
First Brands Group LLC,
Second Lien 2021 Term Loan, 3 Month SOFR + 8.762%^ | | | 14.014(c) | | | | 03/30/28 | | | | 33 | | | | 30,856 | |
Tenneco, Inc.,
Term A Loan, 1 Month SOFR + 4.850% | | | 10.082(c) | | | | 11/17/28 | | | | 30 | | | | 28,380 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 59,236 | |
| | | | |
Computers 0.1% | | | | | | | | | | | | | | | | |
| | | | |
McAfee Corp.,
Tranche B-1 Term Loan, 1 Month SOFR + 3.250% | | | 8.592(c) | | | | 03/01/29 | | | | 15 | | | | 14,759 | |
| | | | |
Housewares 0.3% | | | | | | | | | | | | | | | | |
| | | | |
SWF Holdings I Corp.,
Initial Term Loan, 1 Month SOFR + 4.114% | | | 9.361(c) | | | | 10/06/28 | | | | 98 | | | | 73,374 | |
| | | | |
Insurance 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Acrisure LLC,
2024 Refinancing Term Loan, 3 Month SOFR + 3.250% | | | 8.594(c) | | | | 11/06/30 | | | | 25 | | | | 24,781 | �� |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 21
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | Maturity
Date | | Principal Amount (000)# | | | Value | |
|
FLOATING RATE AND OTHER LOANS (Continued) | |
|
Media 0.3% | |
| | | | |
Diamond Sports Group LLC,
Dip Term Loan | | 10.000% | | 12/02/24 | | | 37 | | | $ | 45,078 | |
First Lien Term Loan, 1 Month SOFR + 10.100% | | 15.442(c) | | 05/25/26 | | | 5 | | | | 4,834 | |
Second Lien Term Loan, 1 Month SOFR + 3.400% | | 8.175(c) | | 08/24/26(d) | | | 25 | | | | 401 | |
Gray Television, Inc.,
Term F Loan, 1 Month SOFR + 5.250% | | 10.592(c) | | 06/04/29 | | | 19 | | | | 18,125 | |
Radiate Holdco LLC,
Amendment No. 6 Term Loan, 1 Month SOFR + 3.364% | | 8.611(c) | | 09/25/26 | | | 25 | | | | 19,949 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 88,387 | |
|
Metal Fabricate/Hardware 0.4% | |
| | | | |
Doncasters US Finance LLC (United Kingdom),
Initial Term Loan, 3 Month SOFR + 6.500% | | 11.835(c) | | 04/23/30 | | | 95 | | | | 93,815 | |
|
Software 0.3% | |
| | | | |
Cotiviti, Inc.,
Initial Floating Rate Term Loan, 1 Month SOFR + 3.250% | | 8.592(c) | | 05/01/31 | | | 50 | | | | 49,828 | |
Skillsoft Finance II, Inc.,
Initial Term Loan, 1 Month SOFR + 5.364% | | 10.642(c) | | 07/14/28 | | | 51 | | | | 40,150 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 89,978 | |
|
Telecommunications 0.2% | |
| | | | |
Digicel International Finance Ltd. (Jamaica),
Initial Term Loan, 3 Month SOFR + 6.750% | | 12.002(c) | | 05/25/27 | | | 25 | | | | 24,995 | |
Level 3 Financing, Inc.,
Term B-1, 1 Month SOFR + 6.560% | | 11.838(c) | | 04/15/29 | | | 15 | | | | 15,023 | |
Term B-2, 1 Month SOFR + 6.560% | | 11.838(c) | | 04/15/30 | | | 15 | | | | 15,115 | |
MLN US HoldCo LLC,
3L Term B Loan, 3 Month SOFR + 9.250% | | 14.629(c) | | 10/18/27 | | | 1 | | | | 40 | |
Initial Term Loan, 3 Month SOFR + 6.540% | | 11.819(c) | | 10/18/27 | | | 2 | | | | 1,098 | |
Initial Term Loan (Second Out (First Lien Roll-Up)), 3 Month SOFR + 6.800% | | 12.079(c) | | 10/18/27 | | | 4 | | | | 350 | |
| | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | 56,621 | |
See Notes to Financial Statements.
22
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
|
FLOATING RATE AND OTHER LOANS (Continued) | |
|
Textiles 0.0% | |
| | | | |
ASP Unifrax Holdings, Inc.,
USD Term Loan (First Lien), 3 Month SOFR + 3.900% | | | 9.235%(c) | | | | 12/12/25 | | | | 10 | | | $ | 9,774 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL FLOATING RATE AND OTHER LOANS
(cost $558,594) | | | | | | | | | | | | | | | 532,241 | |
| | | | | | | | | | | | | | | | |
| | | | |
U.S. TREASURY OBLIGATIONS 6.7% | | | | | | | | | | | | | | | | |
U.S. Treasury Notes(k) | | | 2.750 | | | | 04/30/27 | | | | 408 | | | | 397,003 | |
U.S. Treasury Notes(k) | | | 4.250 | | | | 09/30/24 | | | | 365 | | | | 364,701 | |
U.S. Treasury Notes | | | 4.250 | | | | 01/31/26 | | | | 400 | | | | 400,531 | |
U.S. Treasury Notes | | | 4.875 | | | | 05/31/26 | | | | 200 | | | | 202,820 | |
U.S. Treasury Notes | | | 5.000 | | | | 10/31/25 | | | | 400 | | | | 403,125 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL U.S. TREASURY OBLIGATIONS
(cost $1,768,492) | | | | | | | | | | | | | | | 1,768,180 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | Shares | | | | |
AFFILIATED EXCHANGE-TRADED FUNDS 1.6% | | | | | | | | | | | | | | | | |
PGIM AAA CLO ETF | | | | | | | | | | | 1,000 | | | | 51,170 | |
PGIM Ultra Short Bond ETF | | | | | | | | | | | 7,500 | | | | 373,275 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL AFFILIATED EXCHANGE-TRADED FUNDS
(cost $422,885)(wa) | | | | | | | | | | | | | | | 424,445 | |
| | | | | | | | | | | | | | | | |
| | | | |
COMMON STOCKS 0.5% | | | | | | | | | | | | | | | | |
| | | | |
Gas Utilities 0.4% | | | | | | | | | | | | | | | | |
| | | | |
Ferrellgas Partners LP (Class B Stock)^ | | | | | | | | | | | 535 | | | | 109,627 | |
| | | | |
Wireless Telecommunication Services 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Digicel International Finance Ltd. (Jamaica) (original cost $9,418; purchased 01/29/24 - 01/30/24)*^(f) | | | | | | | | | | | 7,746 | | | | 19,288 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL COMMON STOCKS
(cost $121,233) | | | | | | | | | | | | | | | 128,915 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 23
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
PREFERRED STOCKS 0.1% | | | | | | | | |
| | |
Electronic Equipment, Instruments & Components 0.0% | | | | | | | | |
| | |
Ferrellgas Escrow LLC, 8.956%, Maturing 03/30/31^ | | | 6 | | | $ | 6,000 | |
| | |
Wireless Telecommunication Services 0.1% | | | | | | | | |
| | |
Digicel International Finance Ltd. (Jamaica) (original cost $ 4,980;
purchased 01/26/24 - 01/29/24)*^(f) | | | 825 | | | | 8,829 | |
| | | | | | | | |
| | |
TOTAL PREFERRED STOCKS
(cost $11,040) | | | | | | | 14,829 | |
| | | | | | | | |
| | |
TOTAL LONG-TERM INVESTMENTS
(cost $26,182,408) | | | | | | | 25,350,924 | |
| | | | | | | | |
| | |
SHORT-TERM INVESTMENT 3.0% | | | | | | | | |
| | |
AFFILIATED MUTUAL FUND | | | | | | | | |
PGIM Core Government Money Market Fund (7-day effective yield 5.562%)
(cost $778,122)(wa) | | | 778,122 | | | | 778,122 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS 99.4%
(cost $26,960,530) | | | | | | | 26,129,046 | |
Other assets in excess of liabilities(z) 0.6% | | | | | | | 153,384 | |
| | | | | | | | |
| | |
NET ASSETS 100.0% | | | | | | $ | 26,282,430 | |
| | | | | | | | |
See the Glossary for a list of the abbreviation(s) used in the annual report.
| * | Non-income producing security. |
| # | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
| ^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $174,619 and 0.7% of net assets. |
| (c) | Variable rate instrument. The interest rate shown reflects the rate in effect at August 31, 2024. |
| (cc) | Variable rate instrument. The rate shown is based on the latest available information as of August 31, 2024. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
| (d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post-maturity. |
| (f) | Indicates a restricted security that is acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer and is considered restricted as to disposition under federal securities law; the aggregate original cost of such securities is $1,567,150. The aggregate value of $1,084,030 is 4.1% of net assets. |
| (ff) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
| (k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
See Notes to Financial Statements.
24
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| (oo) | Perpetual security. Maturity date represents next call date. |
| (r) | Principal or notional amount is less than $500 par. |
| (wa) | Represents investments in Funds affiliated with the Manager. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Unfunded loan commitment outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | |
| | | Principal | | | | | | |
| | | Amount | | Current | | Unrealized | | Unrealized |
Borrower | | (000)# | | Value | | Appreciation | | Depreciation |
Doncasters US Finance LLC, Delayed Draw Term Loan, 1.500%, Maturity Date 04/23/30 (cost $9,398) | | | | 10 | | | | | $9,429 | | | | | $31 | | | | | $— | |
| | | | | | | | | | | | | | | | | | | | |
Futures contracts outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | |
Number of Contracts | | Type | | Expiration
Date | | Current
Notional
Amount | | Value /
Unrealized
Appreciation
(Depreciation) |
Long Positions: | | | | | | | | | | | | | | | |
3 | | 2 Year U.S. Treasury Notes | | | | Dec. 2024 | | | | $ | 622,640 | | | | $ | (60 | ) |
3 | | 20 Year U.S. Treasury Bonds | | | | Dec. 2024 | | | | | 369,375 | | | | | (3,262 | ) |
2 | | 30 Year U.S. Ultra Treasury Bonds | | | | Dec. 2024 | | | | | 263,875 | | | | | (3,534 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (6,856 | ) |
| | | | | | | | | | | | | | | | | |
Credit default swap agreement outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | Implied Credit
Spread at
August 31,
2024(4) | | Value at
Trade Date | | Value at
August 31,
2024 | | Unrealized
Appreciation
(Depreciation) |
| |
Centrally Cleared Credit Default Swap Agreement on credit indices - Sell Protection(2): | | | | | | |
CDX.NA.HY.42.V1 | | | | 06/20/29 | | | | | 5.000 | %(Q) | | 900 | | | | 3.215 | % | | | $ | 48,780 | | | | $ | 73,499 | | | | | $24,719 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases.
| (1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 25
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| (2) | If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| (3) | Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| (4) | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements where the Fund is the seller of protection as of the reporting date serve as an indicator of the current status of the payment/ performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
Total return swap agreements outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | |
Reference Entity | | Financing
Rate | | Counterparty | | Termination
Date | | Long
(Short)
Notional
Amount
(000)#(1) | | | Fair
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation)(2) | |
|
OTC Total Return Swap Agreements: | |
iBoxx US Dollar Liquid High Yield Index(T) | | 1 Day SOFR(Q)/ 5.320% | | BARC | | 09/20/24 | | | 1,770 | | | $ | 59,873 | | | $ | — | | | $ | 59,873 | |
iBoxx US Dollar Liquid High Yield Index(T) | | 1 Day SOFR(Q)/ 5.320% | | MSI | | 03/20/25 | | | 800 | | | | (3,242 | ) | | | — | | | | (3,242 | ) |
iBoxx US Dollar Liquid Investment Grade Index(T) | | 1 Day SOFR(Q)/ 5.320% | | BNP | | 09/20/24 | | | (204 | ) | | | (11,418 | ) | | | — | | | | (11,418 | ) |
iBoxx US Dollar Liquid Investment Grade Index(T) | | 1 Day SOFR(Q)/ 5.320% | | MSI | | 12/20/24 | | | (850 | ) | | | 9,657 | | | | — | | | | 9,657 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | $ | 54,870 | | | $ | — | | | $ | 54,870 | |
| | | | | | | | | | | | | | | | | | | | | | |
| (1) | On a long total return swap, the Fund receives payments for any positive return on the reference entity (makes payments |
See Notes to Financial Statements.
26
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | for any negative return) and pays the financing rate. On a short total return swap, the Fund makes payments for any positive return on the reference entity (receives payments for any negative return) and receives the financing rate. |
| (2) | Upfront/recurring fees or commissions, as applicable, are included in the net unrealized appreciation (depreciation). |
Balances Reported in the Statement of Assets and Liabilities for OTC Swap Agreements:
| | | | | | | | |
| | | Premiums Paid | | Premiums Received | | Unrealized
Appreciation | | Unrealized
Depreciation |
OTC Swap Agreements | | $— | | $— | | $69,530 | | $(14,660) |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
| | | | | | | | | | |
Broker | | Cash and/or Foreign Currency | | Securities Market Value |
CGM | | | | $— | | | | | $385,485 | |
JPS | | | | — | | | | | 162,499 | |
| | | | | | | | | | |
Total | | | | $— | | | | | $547,984 | |
| | | | | | | | | | |
Fair Value Measurements:
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—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of August 31, 2024 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | |
Asset-Backed Securities | | | | | | | | | | | | |
Collateralized Loan Obligations | | $ | — | | | $ | 712,583 | | | $ | — | |
Corporate Bonds | | | — | | | | 21,769,712 | | | | 19 | |
Floating Rate and Other Loans. | | | — | | | | 501,385 | | | | 30,856 | |
U.S. Treasury Obligations | | | — | | | | 1,768,180 | | | | — | |
Affiliated Exchange-Traded Funds | | | 424,445 | | | | — | | | | — | |
Common Stocks | | | — | | | | — | | | | 128,915 | |
Preferred Stocks | | | — | | | | — | | | | 14,829 | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 27
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities (continued) | | | | | | | | | | | | |
Assets (continued) | | | | | | | | | | | | |
Short-Term Investment | | | | | | | | | | | | |
Affiliated Mutual Fund | | $ | 778,122 | | | $ | — | | | $ | — | |
| | | | | | | | | | | | |
Total | | $ | 1,202,567 | | | $ | 24,751,860 | | | $ | 174,619 | |
| | | | | | | | | | | | |
| | | |
Other Financial Instruments* | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Unfunded Loan Commitment | | $ | — | | | $ | 31 | | | $ | — | |
Centrally Cleared Credit Default Swap Agreement | | | — | | | | 24,719 | | | | — | |
OTC Total Return Swap Agreements | | | — | | | | 69,530 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | — | | | $ | 94,280 | | | $ | — | |
| | | | | | | | | | | | |
| | | |
Liabilities | | | | | | | | | | | | |
Futures Contracts | | $ | (6,856 | ) | | $ | — | | | $ | — | |
OTC Total Return Swap Agreements | | | — | | | | (14,660 | ) | | | — | |
| | | | | | | | | | | | |
Total | | $ | (6,856 | ) | | $ | (14,660 | ) | | $ | — | |
| | | | | | | | | | | | |
| * | Other financial instruments are derivative instruments, with the exception of unfunded loan commitments, and are not reflected in the Schedule of Investments. Futures, forwards, centrally cleared swap contracts and unfunded loan commitments are recorded at net unrealized appreciation (depreciation) and OTC swap contracts are recorded at fair value. |
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of August 31, 2024 were as follows:
| | | | |
U.S. Treasury Obligations | | | 6.7 | % |
Telecommunications | | | 6.6 | |
Home Builders | | | 6.5 | |
Diversified Financial Services | | | 6.1 | |
Commercial Services | | | 6.0 | |
Retail | | | 5.4 | |
Media | | | 5.1 | |
Healthcare-Services | | | 3.8 | |
Pipelines | | | 3.7 | |
Pharmaceuticals | | | 3.2 | |
Oil & Gas | | | 3.0 | |
Affiliated Mutual Fund | | | 3.0 | |
Collateralized Loan Obligations | | | 2.7 | |
Computers | | | 2.5 | |
Foods | | | 2.0 | |
Auto Parts & Equipment | | | 1.9 | |
| | | | |
Real Estate Investment Trusts (REITs) | | | 1.9 | % |
Packaging & Containers | | | 1.8 | |
Building Materials | | | 1.7 | |
Affiliated Exchange-Traded Funds | | | 1.6 | |
Chemicals | | | 1.6 | |
Banks | | | 1.4 | |
Software | | | 1.3 | |
Environmental Control | | | 1.3 | |
Apparel | | | 1.2 | |
Leisure Time | | | 1.2 | |
Aerospace & Defense | | | 1.2 | |
Mining | | | 1.1 | |
Real Estate | | | 1.1 | |
Transportation | | | 1.1 | |
Distribution/Wholesale | | | 1.0 | |
Housewares | | | 1.0 | |
See Notes to Financial Statements.
28
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
Industry Classification (continued):
| | | | |
Healthcare-Products | | | 0.9 | % |
Miscellaneous Manufacturing | | | 0.9 | |
Machinery-Diversified | | | 0.8 | |
Airlines | | | 0.8 | |
Insurance | | | 0.8 | |
Electrical Components & Equipment | | | 0.8 | |
Iron/Steel | | | 0.7 | |
Internet | | | 0.6 | |
Engineering & Construction | | | 0.4 | |
Gas Utilities | | | 0.4 | |
Auto Manufacturers | | | 0.4 | |
Metal Fabricate/Hardware | | | 0.4 | |
Lodging | | | 0.3 | |
Machinery-Construction & Mining | | | 0.3 | |
Household Products/Wares | | | 0.3 | |
| | | | |
Advertising | | | 0.3 | % |
Entertainment | | | 0.2 | |
Gas | | | 0.2 | |
Wireless Telecommunication Services | | | 0.2 | |
Office/Business Equipment | | | 0.0 | * |
Textiles | | | 0.0 | * |
Electronic Equipment, Instruments & Components | | | 0.0 | * |
| | | | |
| |
| | | 99.4 | |
Other assets in excess of liabilities | | | 0.6 | |
| | | | |
| |
| | | 100.0 | % |
| | | | |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are credit risk, foreign exchange risk and interest rate risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of August 31, 2024 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | | | |
| | | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Statement of
Assets and
Liabilities Location | | Fair
Value | | | Statement of
Assets and
Liabilities Location | | Fair
Value | |
Credit contracts | | Due from/to broker-variation margin swaps | | $ | 24,719 | * | | — | | $ | — | |
| | | | |
Interest rate contracts | | — | | | — | | | Due from/to broker-variation margin futures | | | 6,856 | * |
| | | | |
Interest rate contracts | | Unrealized appreciation on OTC swap agreements | | | 69,530 | | | Unrealized depreciation on OTC swap agreements | | | 14,660 | |
| | | | | | | | | | | | |
| | | | |
| | | | $ | 94,249 | | | | | $ | 21,516 | |
| | | | | | | | | | | | |
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. Only unsettled variation margin receivable (payable) is reported within the Statement of Assets and Liabilities. |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 29
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
The effects of derivative instruments on the Statement of Operations for the year ended August 31, 2024 are as follows:
| | | | | | | | | | | | | | | |
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Futures | | Forward
Currency
Exchange
Contracts | | Swaps |
| | | |
Credit contracts | | | $ | — | | | | $ | — | | | | $ | 220,199 | |
| | | |
Foreign exchange contracts | | | | — | | | | | 1,920 | | | | | — | |
| | | |
Interest rate contracts | | | | 63,824 | | | | | — | | | | | (15,964 | ) |
| | | | | | | | | | | | | | | |
| | | |
Total | | | $ | 63,824 | | | | $ | 1,920 | | | | $ | 204,235 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Futures | | Forward
Currency
Exchange
Contracts | | Swaps |
| | | |
Credit contracts | | | $ | — | | | | $ | — | | | | $ | (44,229 | ) |
| | | |
Foreign exchange contracts | | | | — | | | | | (1,707 | ) | | | | — | |
| | | |
Interest rate contracts | | | | (12,039 | ) | | | | — | | | | | 49,001 | |
| | | | | | | | | | | | | | | |
| | | |
Total | | | $ | (12,039 | ) | | | $ | (1,707 | ) | | | $ | 4,772 | |
| | | | | | | | | | | | | | | |
For the year ended August 31, 2024, the Fund’s average volume of derivative activities is as follows:
| | | | | |
| Derivative Contract Type | | Average Volume of Derivative Activities* |
Futures Contracts – Long Positions (1) | | | $ | 1,668,402 | |
Futures Contracts – Short Positions (1) | | | | 353,025 | |
Forward Foreign Currency Exchange Contracts – Purchased (2) | | | | 37,676 | |
Forward Foreign Currency Exchange Contracts – Sold (2) | | | | 70,006 | |
Credit Default Swap Agreements – Buy Protection (1) | | | | 324,000 | |
Credit Default Swap Agreements – Sell Protection (1) | | | | 1,694,570 | |
Total Return Swap Agreements (1) | | | | 1,894,800 | |
| * | Average volume is based on average quarter end balances for the year ended August 31, 2024. |
| (1) | Notional Amount in USD. |
| (2) | Value at Settlement Date. |
Offsetting of OTC derivative assets and liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amounts of
Recognized
Assets(1) | | Gross Amounts of
Recognized
Liabilities(1) | | Net Amounts of
Recognized
Assets/(Liabilities) | | Collateral
Pledged/(Received)(2) | | Net Amount |
BARC | | | $ | 59,873 | | | | $ | — | | | | $ | 59,873 | | | | $ | — | | | | $ | 59,873 | |
See Notes to Financial Statements.
30
PGIM ESG High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amounts of
Recognized
Assets(1) | | Gross Amounts of
Recognized
Liabilities(1) | | Net Amounts of
Recognized
Assets/(Liabilities) | | Collateral
Pledged/(Received)(2) | | Net Amount |
BNP | | | $ | — | | | | $ | (11,418 | ) | | | $ | (11,418 | ) | | | $ | — | | | | $ | (11,418 | ) |
MSI | | | | 9,657 | | | | | (3,242 | ) | | | | 6,415 | | | | | — | | | | | 6,415 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 69,530 | | | | $ | (14,660 | ) | | | $ | 54,870 | | | | $ | — | | | | $ | 54,870 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
| (2) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions and the Fund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 31
PGIM ESG High Yield Fund
Statement of Assets & Liabilities
as of August 31, 2024
| | | | |
| |
Assets | | | | |
Investments at value: | | | | |
Unaffiliated investments (cost $25,759,523) | | $ | 24,926,479 | |
Affiliated investments (cost $1,201,007) | | | 1,202,567 | |
Cash | | | 695 | |
Foreign currency, at value (cost $10,174) | | | 10,379 | |
Interest receivable | | | 377,178 | |
Unrealized appreciation on OTC swap agreements | | | 69,530 | |
Receivable for investments sold | | | 33,391 | |
Due from Manager | | | 10,314 | |
Due from broker—variation margin swaps | | | 1,140 | |
Unrealized appreciation on unfunded loan commitment | | | 31 | |
Prepaid expenses and other assets | | | 250 | |
| | | | |
| |
Total Assets | | | 26,631,954 | |
| | | | |
| |
Liabilities | | | | |
Dividends payable | | | 133,525 | |
Payable for investments purchased | | | 113,600 | |
Audit fee payable | | | 48,230 | |
Unrealized depreciation on OTC swap agreements | | | 14,660 | |
Custodian and accounting fee payable | | | 12,575 | |
Accrued expenses and other liabilities | | | 11,228 | |
Shareholders’ reports fee payable | | | 8,944 | |
Due to broker—variation margin futures | | | 4,547 | |
Directors’ fees payable | | | 1,654 | |
Payable for Fund shares purchased | | | 302 | |
Affiliated transfer agent fee payable | | | 198 | |
Distribution fee payable | | | 61 | |
| | | | |
| |
Total Liabilities | | | 349,524 | |
| | | | |
| |
Net Assets | | $ | 26,282,430 | |
| | | | |
| |
| | | | | |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 29,507 | |
Paid-in capital in excess of par | | | 28,868,505 | |
Total distributable earnings (loss) | | | (2,615,582 | ) |
| | | | |
| |
Net assets, August 31, 2024 | | $ | 26,282,430 | |
| | | | |
See Notes to Financial Statements.
32
PGIM ESG High Yield Fund
Statement of Assets & Liabilities (continued)
as of August 31, 2024
| | | | | | | | |
| | |
Class A | | | | | | | | |
Net asset value and redemption price per share, ($236,525 ÷ 26,528 shares of common stock issued and outstanding) | | $ | 8.92 | | | | | |
Maximum sales charge (3.25% of offering price) | | | 0.30 | | | | | |
| | | | | | | | |
| | |
Maximum offering price to public | | $ | 9.22 | | | | | |
| | | | | | | | |
| | |
Class C | | | | | | | | |
Net asset value, offering price and redemption price per share, ($13,365 ÷ 1,500 shares of common stock issued and outstanding) | | $ | 8.91 | | | | | |
| | | | | | | | |
| | |
Class Z | | | | | | | | |
Net asset value, offering price and redemption price per share, ($530,123 ÷ 59,495 shares of common stock issued and outstanding) | | $ | 8.91 | | | | | |
| | | | | | | | |
| | |
Class R6 | | | | | | | | |
Net asset value, offering price and redemption price per share, ($25,502,417 ÷ 2,863,156 shares of common stock issued and outstanding) | | $ | 8.91 | | | | | |
| | | | | | | | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 33
PGIM ESG High Yield Fund
Statement of Operations
Year Ended August 31, 2024
| | | | |
Net Investment Income (Loss) | |
Income | | | | |
Interest income | | $ | 1,539,959 | |
Affiliated dividend income | | | 63,555 | |
| | | | |
| |
Total income | | | 1,603,514 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 125,089 | |
Distribution fee(a) | | | 457 | |
Audit fee | | | 48,230 | |
Professional fees | | | 42,135 | |
Custodian and accounting fees | | | 39,207 | |
Registration fees(a) | | | 36,655 | |
Shareholders’ reports | | | 22,793 | |
Fund data services | | | 21,643 | |
Directors’ fees | | | 10,000 | |
Transfer agent’s fees and expenses (including affiliated expense of $1,232)(a) | | | 1,753 | |
Miscellaneous | | | 10,005 | |
| | | | |
| |
Total expenses | | | 357,967 | |
Less: Fee waiver and/or expense reimbursement(a) | | | (250,041 | ) |
| | | | |
| |
Net expenses | | | 107,926 | |
| | | | |
Net investment income (loss) | | | 1,495,588 | |
| | | | |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $726) | | | (760,632 | ) |
Futures transactions | | | 63,824 | |
Forward currency contract transactions | | | 1,920 | |
Swap agreement transactions | | | 204,235 | |
Foreign currency transactions | | | (3,982 | ) |
| | | | |
| |
| | | (494,635 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated of $462) | | | 1,926,557 | |
Futures | | | (12,039 | ) |
Forward currency contracts | | | (1,707 | ) |
Swap agreements | | | 4,772 | |
Foreign currencies | | | 220 | |
Unfunded loan commitment | | | 31 | |
| | | | |
| |
| | | 1,917,834 | |
| | | | |
Net gain (loss) on investment and foreign currency transactions | | | 1,423,199 | |
| | | | |
| |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | 2,918,787 | |
| | | | |
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class Z | | | Class R6 | |
| | | | |
Distribution fee | | | 332 | | | | 125 | | | | — | | | | — | |
| | | | |
Registration fees | | | 9,887 | | | | 8,836 | | | | 10,086 | | | | 7,846 | |
| | | | |
Transfer agent’s fees and expenses | | | 808 | | | | 95 | | | | 692 | | | | 158 | |
| | | | |
Fee waiver and/or expense reimbursement | | | (11,630 | ) | | | (9,026 | ) | | | (13,696 | ) | | | (215,689 | ) |
See Notes to Financial Statements.
34
PGIM ESG High Yield Fund
Statements of Changes in Net Assets
| | | | | | | | |
| |
| | | Year Ended
August 31, | |
| | |
| | | 2024 | | | 2023 | |
| | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 1,495,588 | | | $ | 1,299,642 | |
Net realized gain (loss) on investment and foreign currency transactions | | | (494,635 | ) | | | (433,253 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | 1,917,834 | | | | 662,666 | |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 2,918,787 | | | | 1,529,055 | |
| | | | | | | | |
| | |
Dividends and Distributions | | | | | | | | |
Distributions from distributable earnings | | | | | | | | |
Class A | | | (8,229 | ) | | | (2,199 | ) |
Class C | | | (696 | ) | | | (645 | ) |
Class Z | | | (26,301 | ) | | | (24,171 | ) |
Class R6 | | | (1,625,108 | ) | | | (1,500,041 | ) |
| | | | | | | | |
| | | (1,660,334 | ) | | | (1,527,056 | ) |
| | | | | | | | |
| | |
Fund share transactions | | | | | | | | |
Net proceeds from shares sold | | | 395,862 | | | | 355,174 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 716,613 | | | | 1,526,730 | |
Cost of shares purchased | | | (67,346 | ) | | | (307,734 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 1,045,129 | | | | 1,574,170 | |
| | | | | | | | |
Total increase (decrease) | | | 2,303,582 | | | | 1,576,169 | |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 23,978,848 | | | | 22,402,679 | |
| | | | | | | | |
End of year | | $ | 26,282,430 | | | $ | 23,978,848 | |
| | | | | | | | |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 35
PGIM ESG High Yield Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | December 08, 2021(a) | | |
| | | | | Year Ended August 31, | | through August 31, |
| | | | | 2024 | | 2023 | | 2022 |
Per Share Operating Performance(b): | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | | | | | $8.48 | | | | | $8.49 | | | | | $10.00 | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | 0.48 | (c) | | | | 0.45 | | | | | 0.27 | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | 0.50 | (d) | | | | 0.07 | | | | | (1.45 | ) | | |
Total from investment operations | | | | | | 0.98 | | | | | 0.52 | | | | | (1.18 | ) | | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | | (0.54 | ) | | | | (0.53 | ) | | | | (0.33 | ) | | |
Net asset value, end of period | | | | | | $8.92 | | | | | $8.48 | | | | | $8.49 | | | |
Total Return(e): | | | | | | 11.94 | % | | | | 6.34 | % | | | | (11.93 | )% | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | | | | $237 | | | | | $91 | | | | | $45 | | | |
Average net assets (000) | | | | | | $133 | | | | | $35 | | | | | $43 | | | |
Ratios to average net assets(f): | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | | 0.81 | %(g) | | | | 0.83 | %(g) | | | | 0.80 | %(h) | | |
Expenses before waivers and/or expense reimbursement | | | | | | 9.57 | % | | | | 31.62 | % | | | | 64.44 | %(h) | | |
Net investment income (loss) | | | | | | 5.57 | % | | | | 5.31 | % | | | | 4.07 | %(h) | | |
Portfolio turnover rate(i) | | | | | | 42 | % | | | | 18 | % | | | | 24 | % | | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
| (d) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (e) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (f) | Does not include expenses of the underlying funds in which the Fund invests. |
| (g) | Includes certain non-recurring expenses of 0.01% and 0.03%, which are being excluded from the Fund’s contractual waiver for the years ended August 31, 2024 and August 31, 2023, respectively. |
| (h) | Annualized, with the exception of certain non-recurring expenses. |
| (i) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
36
PGIM ESG High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | |
| | | | | | | December 08, 2021(a) | | |
| | | | | Year Ended August 31, | | through August 31, | | |
| | | | | 2024 | | 2023 | | 2022 | | |
Per Share Operating Performance(b): | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | | | | | $8.48 | | | | | $8.48 | | | | | $10.00 | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | 0.42 | (c) | | | | 0.38 | | | | | 0.22 | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | 0.49 | (d) | | | | 0.09 | | | | | (1.45 | ) | | |
Total from investment operations | | | | | | 0.91 | | | | | 0.47 | | | | | (1.23 | ) | | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | | (0.48 | ) | | | | (0.47 | ) | | | | (0.29 | ) | | |
Net asset value, end of period | | | | | | $8.91 | | | | | $8.48 | | | | | $8.48 | | | |
Total Return(e): | | | | | | 11.04 | % | | | | 5.74 | % | | | | (12.48 | )% | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | | | | $13 | | | | | $12 | | | | | $11 | | | |
Average net assets (000) | | | | | | $13 | | | | | $12 | | | | | $12 | | | |
Ratios to average net assets(f): | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | | 1.52 | %(g) | | | | 1.51 | %(g) | | | | 1.50 | %(h) | | |
Expenses before waivers and/or expense reimbursement | | | | | | 73.49 | % | | | | 80.49 | % | | | | 222.32 | %(h) | | |
Net investment income (loss) | | | | | | 4.89 | % | | | | 4.59 | % | | | | 3.28 | %(h) | | |
Portfolio turnover rate(i) | | | | | | 42 | % | | | | 18 | % | | | | 24 | % | | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | The per share amount of net investment income (loss) does not directly correlate to the amounts reported in the Statement of Operations due to class specific expenses. |
| (d) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (e) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (f) | Does not include expenses of the underlying funds in which the Fund invests. |
| (g) | Includes certain non-recurring expenses of 0.02% and 0.01%, which are being excluded from the Fund’s contractual waiver for the years ended August 31, 2024 and August 31, 2023, respectively. |
| (h) | Annualized, with the exception of certain non-recurring expenses. |
| (i) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 37
PGIM ESG High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class Z Shares | | | | | | | | | | | | | | | | | | | |
| | | | | | | December 08, 2021(a) | | |
| | | | | Year Ended August 31, | | through August 31, | | |
| | | | | 2024 | | 2023 | | 2022 | | |
Per Share Operating Performance(b): | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | | | | | $8.48 | | | | | $8.49 | | | | | $10.00 | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | 0.51 | | | | | 0.46 | | | | | 0.29 | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | 0.48 | | | | | 0.09 | | | | | (1.45 | ) | | |
Total from investment operations | | | | | | 0.99 | | | | | 0.55 | | | | | (1.16 | ) | | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | | (0.56 | ) | | | | (0.56 | ) | | | | (0.35 | ) | | |
Net asset value, end of period | | | | | | $8.91 | | | | | $8.48 | | | | | $8.49 | | | |
Total Return(c): | | | | | | 12.11 | % | | | | 6.62 | % | | | | (11.76 | )% | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | | | | $530 | | | | | $284 | | | | | $271 | | | |
Average net assets (000) | | | | | | $406 | | | | | $367 | | | | | $176 | | | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | | 0.56 | %(e) | | | | 0.55 | %(e) | | | | 0.54 | %(f) | | |
Expenses before waivers and/or expense reimbursement | | | | | | 3.93 | % | | | | 4.33 | % | | | | 16.33 | %(f) | | |
Net investment income (loss) | | | | | | 5.87 | % | | | | 5.55 | % | | | | 4.52 | %(f) | | |
Portfolio turnover rate(g) | | | | | | 42 | % | | | | 18 | % | | | | 24 | % | | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | Includes certain non-recurring expenses of 0.02% and 0.01%, which are being excluded from the Fund’s contractual waiver for the years ended August 31, 2024 and August 31, 2023, respectively. |
| (f) | Annualized, with the exception of certain non-recurring expenses. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
38
PGIM ESG High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | December 08, 2021(a) | | |
| | | | | Year Ended August 31, | | through August 31, | | |
| | | | | 2024 | | 2023 | | 2022 | | |
Per Share Operating Performance(b): | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | | | | | $8.48 | | | | | $8.48 | | | | | $10.00 | | | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | | | | 0.52 | | | | | 0.48 | | | | | 0.29 | | | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | | | | 0.48 | | | | | 0.07 | | | | | (1.45 | ) | | |
Total from investment operations | | | | | | 1.00 | | | | | 0.55 | | | | | (1.16 | ) | | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | | | | (0.57 | ) | | | | (0.55 | ) | | | | (0.36 | ) | | |
Net asset value, end of period | | | | | | $8.91 | | | | | $8.48 | | | | | $8.48 | | | |
Total Return(c): | | | | | | 12.25 | % | | | | 6.88 | % | | | | (11.78 | )% | | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000) | | | | | | $25,502 | | | | | $23,592 | | | | | $22,076 | | | |
Average net assets (000) | | | | | | $24,466 | | | | | $22,479 | | | | | $23,304 | | | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | | | | 0.43 | %(e) | | | | 0.42 | %(e) | | | | 0.41 | %(f) | | |
Expenses before waivers and/or expense reimbursement | | | | | | 1.31 | % | | | | 1.39 | % | | | | 1.34 | %(f) | | |
Net investment income (loss) | | | | | | 5.98 | % | | | | 5.68 | % | | | | 4.35 | %(f) | | |
Portfolio turnover rate(g) | | | | | | 42 | % | | | | 18 | % | | | | 24 | % | | |
| (a) | Commencement of operations. |
| (b) | Calculated based on average shares outstanding during the period. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. Total returns for periods less than one full year are not annualized. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | Includes certain non-recurring expenses of 0.02% and 0.01%, which are being excluded from the Fund’s contractual waiver for the years ended August 31, 2024 and August 31, 2023, respectively. |
| (f) | Annualized, with the exception of certain non-recurring expenses. |
| (g) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM ESG High Yield Fund 39
PGIM High Yield Fund
Schedule of Investments
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
|
LONG-TERM INVESTMENTS 97.0% | |
|
ASSET-BACKED SECURITIES 1.2% | |
|
Collateralized Loan Obligations | |
| | | | |
Battalion CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2018-12A, Class A1, 144A, 3 Month SOFR + 1.332% (Cap N/A, Floor 1.070%) | | | 6.433%(c) | | | | 05/17/31 | | | | 12,700 | | | $ | 12,700,275 | |
| | | | |
BlueMountain Fuji US CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2017-02A, Class A1AR, 144A, 3 Month SOFR + 1.262% (Cap N/A, Floor 0.000%) | | | 6.544(c) | | | | 10/20/30 | | | | 16,841 | | | | 16,849,068 | |
| | | | |
CIFC Funding Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2015-01A, Class ARR, 144A, 3 Month SOFR + 1.372% (Cap N/A, Floor 1.110%) | | | 6.654(c) | | | | 01/22/31 | | | | 5,826 | | | | 5,833,242 | |
| | | | |
Golub Capital Partners Static Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2024-01A, Class A1, 144A, 3 Month SOFR + 1.230% (Cap N/A, Floor 1.230%) | | | 6.512(c) | | | | 04/20/33 | | | | 27,323 | | | | 27,348,165 | |
| | | | |
HPS Loan Management Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 11A-17, Class AR, 144A, 3 Month SOFR + 1.282% (Cap N/A, Floor 1.020%) | | | 6.509(c) | | | | 05/06/30 | | | | 4,420 | | | | 4,424,167 | |
| | | | |
Jefferson Mill CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2015-01A, Class ARR, 144A, 3 Month SOFR + 1.230% (Cap N/A, Floor 0.000%) | | | 6.512(c) | | | | 10/20/31 | | | | 36,662 | | | | 36,789,499 | |
| | | | |
Madison Park Funding Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2019-33A, Class AR, 144A, 3 Month SOFR + 1.290% (Cap N/A, Floor 1.290%) | | | 6.591(c) | | | | 10/15/32 | | | | 25,000 | | | | 25,012,195 | |
Series 2021-38A, Class A, 144A, 3 Month SOFR + 1.382% (Cap N/A, Floor 1.382%) | | | 6.667(c) | | | | 07/17/34 | | | | 9,500 | | | | 9,495,556 | |
| | | | |
Palmer Square Loan Funding Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2021-04A, Class A1, 144A, 3 Month SOFR + 1.062% (Cap N/A, Floor 1.062%) | | | 6.363(c) | | | | 10/15/29 | | | | 8,825 | | | | 8,825,177 | |
| | | | |
Saratoga Investment Corp. CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2013-01A, Class A1R4, 144A, 3 Month SOFR + 1.300% (Cap N/A, Floor 1.300%) | | | 6.582(c) | | | | 04/20/33 | | | | 31,792 | | | | 31,816,441 | |
| | | | |
Sound Point CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2018-03A, Class A1AR, 144A, 3 Month SOFR + 1.300% (Cap N/A, Floor 1.300%) | | | 6.579(c) | | | | 10/26/31 | | | | 34,467 | | | | 34,449,423 | |
| | | | |
Voya CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2014-01A, Class AAR2, 144A, 3 Month SOFR + 1.252% (Cap N/A, Floor 0.000%) | | | 6.531(c) | | | | 04/18/31 | | | | 13,505 | | | | 13,506,212 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL ASSET-BACKED SECURITIES
(cost $226,386,131) | | | | | | | | | | | | | | | 227,049,420 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
40
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest
Rate | | | Maturity
Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS 82.4% | |
|
Advertising 0.3% | |
| | | | |
Clear Channel Outdoor Holdings, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.125% | | | | 08/15/27 | | | | 18,755 | | | $ | 18,324,633 | |
Sr. Sec’d. Notes, 144A | | | 9.000 | | | | 09/15/28 | | | | 4,075 | | | | 4,333,179 | |
CMG Media Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $59,290,320; purchased 12/12/19 - 01/04/22)(f) | | | 8.875 | | | | 12/15/27 | | | | 58,691 | | | | 31,199,901 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 53,857,713 | |
| | | | |
Aerospace & Defense 2.1% | | | | | | | | | | | | | | | | |
Boeing Co. (The), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.805 | | | | 05/01/50 | | | | 47,832 | | | | 45,109,279 | |
Sr. Unsec’d. Notes | | | 5.930 | | | | 05/01/60 | | | | 48,720 | | | | 46,006,608 | |
Bombardier, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 02/15/28 | | | | 39,209 | | | | 39,110,977 | |
Sr. Unsec’d. Notes, 144A | | | 7.000 | | | | 06/01/32 | | | | 13,970 | | | | 14,546,263 | |
Sr. Unsec’d. Notes, 144A | | | 7.125 | | | | 06/15/26 | | | | 17,411 | | | | 17,715,693 | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 07/01/31 | | | | 13,940 | | | | 14,654,425 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 02/01/29 | | | | 27,422 | | | | 28,861,655 | |
Sr. Unsec’d. Notes, 144A | | | 7.875 | | | | 04/15/27 | | | | 65,269 | | | | 65,595,345 | |
Sr. Unsec’d. Notes, 144A | | | 8.750 | | | | 11/15/30 | | | | 29,260 | | | | 31,820,250 | |
TransDigm, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.625 | | | | 01/15/29 | | | | 15,330 | | | | 14,749,611 | |
Gtd. Notes | | | 5.500 | | | | 11/15/27 | | | | 26,139 | | | | 25,976,192 | |
Sr. Sec’d. Notes, 144A | | | 6.375 | | | | 03/01/29 | | | | 34,125 | | | | 35,149,888 | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 03/01/32 | | | | 26,200 | | | | 27,292,945 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 406,589,131 | |
| | | | |
Agriculture 0.3% | | | | | | | | | | | | | | | | |
Vector Group Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 02/01/29 | | | | 51,124 | | | | 51,859,855 | |
| | | | |
Airlines 1.0% | | | | | | | | | | | | | | | | |
American Airlines, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.250 | | | | 02/15/28 | | | | 11,525 | | | | 11,598,004 | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 04/20/26 | | | | 6,098 | | | | 6,066,944 | |
Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 04/20/29 | | | | 47,500 | | | | 46,460,937 | |
See Notes to Financial Statements.
PGIM High Yield Fund 41
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Airlines (cont’d.) | |
United Airlines, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375% | | | | 04/15/26 | | | | 34,402 | | | $ | 33,603,260 | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 04/15/29 | | | | 18,674 | | | | 17,782,194 | |
VistaJet Malta Finance PLC/Vista Management Holding, Inc. (Switzerland), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.375 | | | | 02/01/30 | | | | 30,235 | | | | 24,792,700 | |
Sr. Unsec’d. Notes, 144A | | | 7.875 | | | | 05/01/27 | | | | 30,065 | | | | 28,185,937 | |
Sr. Unsec’d. Notes, 144A | | | 9.500 | | | | 06/01/28 | | | | 21,868 | | | | 20,446,580 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 188,936,556 | |
| | | | |
Apparel 0.4% | | | | | | | | | | | | | | | | |
Kontoor Brands, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 11/15/29 | | | | 11,226 | | | | 10,582,024 | |
William Carter Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625 | | | | 03/15/27 | | | | 3,643 | | | | 3,638,128 | |
Wolverine World Wide, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.000 | | | | 08/15/29 | | | | 70,128 | | | | 59,861,432 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 74,081,584 | |
| | | | |
Auto Manufacturers 0.7% | | | | | | | | | | | | | | | | |
Ford Motor Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.250 | | | | 02/12/32 | | | | 3,825 | | | | 3,262,407 | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 01/15/43 | | | | 12,037 | | | | 10,044,135 | |
Sr. Unsec’d. Notes | | | 7.400 | | | | 11/01/46 | | | | 24,152 | | | | 26,590,560 | |
Ford Motor Credit Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.375 | | | | 11/13/25 | | | | 675 | | | | 659,751 | |
Sr. Unsec’d. Notes | | | 4.134 | | | | 08/04/25 | | | | 2,375 | | | | 2,348,925 | |
Sr. Unsec’d. Notes | | | 5.125 | | | | 06/16/25 | | | | 1,425 | | | | 1,421,157 | |
Sr. Unsec’d. Notes | | | 6.800 | | | | 05/12/28 | | | | 1,828 | | | | 1,917,940 | |
Jaguar Land Rover Automotive PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 10/15/25 | | | | 20,750 | | | | 20,824,700 | |
JB Poindexter & Co., Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.750 | | | | 12/15/31 | | | | 20,620 | | | | 21,752,727 | |
PM General Purchaser LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 10/01/28 | | | | 52,821 | | | | 54,159,265 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 142,981,567 | |
See Notes to Financial Statements.
42
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Auto Parts & Equipment 1.4% | |
Adient Global Holdings Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.875% | | | | 08/15/26 | | | | 47,047 | | | $ | 46,458,912 | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 04/15/28 | | | | 12,375 | | | | 12,684,375 | |
American Axle & Manufacturing, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.250 | | | | 03/15/26 | | | | 4,754 | | | | 4,770,868 | |
Gtd. Notes | | | 6.500 | | | | 04/01/27 | | | | 13,174 | | | | 13,248,054 | |
Dana Financing Luxembourg Sarl, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 04/15/25 | | | | 4,119 | | | | 4,108,703 | |
Dana, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.250 | | | | 09/01/30 | | | | 12,235 | | | | 11,042,634 | |
Sr. Unsec’d. Notes | | | 4.500 | | | | 02/15/32 | | | | 4,919 | | | | 4,361,966 | |
Sr. Unsec’d. Notes | | | 5.375 | | | | 11/15/27 | | | | 10,775 | | | | 10,675,487 | |
Sr. Unsec’d. Notes | | | 5.625 | | | | 06/15/28 | | | | 5,274 | | | | 5,203,032 | |
Garrett Motion Holdings, Inc./Garrett LX I Sarl, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 05/31/32 | | | | 31,905 | | | | 33,064,655 | |
Phinia, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 04/15/29 | | | | 6,990 | | | | 7,176,362 | |
Tenneco, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 11/17/28 | | | | 92,085 | | | | 85,953,418 | |
Titan International, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 7.000 | | | | 04/30/28 | | | | 33,777 | | | | 33,017,562 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 271,766,028 | |
| | | | |
Banks 0.8% | | | | | | | | | | | | | | | | |
Citigroup, Inc., | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, Series X | | | 3.875(ff) | | | | 02/18/26(oo) | | | | 41,700 | | | | 39,985,336 | |
Freedom Mortgage Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.625 | | | | 01/15/27 | | | | 32,964 | | | | 32,543,813 | |
Sr. Unsec’d. Notes, 144A | | | 7.625 | | | | 05/01/26 | | | | 20,178 | | | | 20,295,188 | |
Sr. Unsec’d. Notes, 144A | | | 12.000 | | | | 10/01/28 | | | | 11,425 | | | | 12,443,207 | |
Sr. Unsec’d. Notes, 144A | | | 12.250 | | | | 10/01/30 | | | | 12,475 | | | | 13,848,777 | |
Intesa Sanpaolo SpA (Italy), | | | | | | | | | | | | | | | | |
Sub. Notes, 144A | | | 4.198(ff) | | | | 06/01/32 | | | | 20,671 | | | | 18,109,384 | |
Sub. Notes, 144A | | | 4.950(ff) | | | | 06/01/42 | | | | 6,100 | | | | 4,694,932 | |
See Notes to Financial Statements.
PGIM High Yield Fund 43
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Banks (cont’d.) | |
UBS AG (Switzerland), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, MTN | | | 3.625% | | | | 09/09/24 | | | | 8,190 | | | $ | 8,186,310 | |
Wells Fargo & Co., | | | | | | | | | | | | | | | | |
Jr. Sub. Notes | | | 6.850(ff) | | | | 09/15/29(oo) | | | | 8,550 | | | | 8,789,306 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 158,896,253 | |
| | | | |
Building Materials 2.0% | | | | | | | | | | | | | | | | |
Builders FirstSource, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 03/01/30 | | | | 5,785 | | | | 5,616,590 | |
Camelot Return Merger Sub, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.750 | | | | 08/01/28 | | | | 21,845 | | | | 21,697,993 | |
Cemex SAB de CV (Mexico), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.450 | | | | 11/19/29 | | | | 23,375 | | | | 23,345,781 | |
Cornerstone Building Brands, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 01/15/29 | | | | 39,973 | | | | 33,376,835 | |
Eco Material Technologies, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.875 | | | | 01/31/27 | | | | 29,094 | | | | 29,406,321 | |
EMRLD Borrower LP/Emerald Co-Issuer, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 07/15/31 | | | | 9,300 | | | | 9,586,639 | |
Griffon Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.750 | | | | 03/01/28 | | | | 16,896 | | | | 16,576,879 | |
JELD-WEN, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 12/15/25 | | | | 11,429 | | | | 11,424,128 | |
Gtd. Notes, 144A | | | 4.875 | | | | 12/15/27 | | | | 8,865 | | | | 8,605,553 | |
Knife River Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.750 | | | | 05/01/31 | | | | 6,350 | | | | 6,730,421 | |
Masterbrand, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 07/15/32 | | | | 8,595 | | | | 8,863,321 | |
Miter Brands Acquisition Holdco, Inc./MIWD Borrower LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 04/01/32 | | | | 9,391 | | | | 9,656,672 | |
MIWD Holdco II LLC/MIWD Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 02/01/30 | | | | 23,765 | | | | 22,608,853 | |
Owens Corning, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.500 | | | | 02/15/30 | | | | 13,533 | | | | 12,729,080 | |
Smyrna Ready Mix Concrete LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.000 | | | | 11/01/28 | | | | 36,864 | | | | 36,758,410 | |
Sr. Sec’d. Notes, 144A | | | 8.875 | | | | 11/15/31 | | | | 17,305 | | | | 18,609,765 | |
See Notes to Financial Statements.
44
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Building Materials (cont’d.) | |
Standard Building Solutions, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.500% | | | | 08/15/32 | | | | 9,585 | | | $ | 9,875,861 | |
Standard Industries, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.375 | | | | 01/15/31 | | | | 18,129 | | | | 15,875,960 | |
Sr. Unsec’d. Notes, 144A | | | 4.375 | | | | 07/15/30 | | | | 53,501 | | | | 50,074,195 | |
Sr. Unsec’d. Notes, 144A | | | 4.750 | | | | 01/15/28 | | | | 9,883 | | | | 9,629,045 | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 02/15/27 | | | | 15,537 | | | | 15,325,892 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 376,374,194 | |
| | | | |
Chemicals 1.2% | | | | | | | | | | | | | | | | |
Ashland, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 6.875 | | | | 05/15/43 | | | | 36,370 | | | | 38,432,218 | |
Sr. Unsec’d. Notes, 144A | | | 3.375 | | | | 09/01/31 | | | | 5,550 | | | | 4,879,451 | |
ASP Unifrax Holdings, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A (original cost $11,756,250; purchased 09/15/21 - 10/12/21)(f) | | | 5.250 | | | | 09/30/28 | | | | 11,725 | | | | 6,069,047 | |
Sr. Unsec’d. Notes, 144A (original cost $9,457,000; purchased 09/15/21 - 01/26/22)(f) | | | 7.500 | | | | 09/30/29 | | | | 9,475 | | | | 4,765,350 | |
Cornerstone Chemical Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, Cash coupon 5.000% and PIK 10.000%^ | | | 15.000 | | | | 12/06/28 | | | | 18,779 | | | | 18,778,515 | |
Sr. Sec’d. Notes, 144A | | | 15.000 | | | | 12/06/28 | | | | 2,969 | | | | 2,820,570 | |
NOVA Chemicals Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 05/01/25 | | | | 3,600 | | | | 3,577,500 | |
Olympus Water US Holding Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.250 | | | | 10/01/28 | | | | 16,100 | | | | 15,150,738 | |
Sr. Sec’d. Notes, 144A | | | 7.250 | | | | 06/15/31 | | | | 13,680 | | | | 14,075,923 | |
Sr. Sec’d. Notes, 144A | | | 9.750 | | | | 11/15/28 | | | | 31,175 | | | | 33,259,194 | |
Sr. Unsec’d. Notes, 144A | | | 6.250 | | | | 10/01/29 | | | | 8,983 | | | | 8,446,409 | |
Rain CII Carbon LLC/CII Carbon Corp., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 7.250 | | | | 04/01/25 | | | | 1,165 | | | | 1,150,882 | |
SK Invictus Intermediate II Sarl, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.000 | | | | 10/30/29 | | | | 24,130 | | | | 22,682,200 | |
SNF Group SACA (France), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.375 | | | | 03/15/30 | | | | 12,150 | | | | 10,585,687 | |
See Notes to Financial Statements.
PGIM High Yield Fund 45
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Chemicals (cont’d.) | |
TPC Group, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 13.000% | | | | 12/16/27 | | | | 31,257 | | | $ | 31,719,435 | |
Tronox, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 03/15/29 | | | | 12,146 | | | | 11,073,602 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 227,466,721 | |
| | | | |
Coal 0.2% | | | | | | | | | | | | | | | | |
Conuma Resources Ltd. (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 13.125 | | | | 05/01/28 | | | | 23,748 | | | | 24,282,330 | |
Coronado Finance Pty Ltd. (Australia), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 10.750 | | | | 05/15/26 | | | | 12,807 | | | | 13,271,254 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 37,553,584 | |
| | | | |
Commercial Services 3.8% | | | | | | | | | | | | | | | | |
Adtalem Global Education, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 03/01/28 | | | | 9,227 | | | | 9,070,868 | |
Allied Universal Holdco LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.875 | | | | 02/15/31 | | | | 41,460 | | | | 42,083,592 | |
Allied Universal Holdco LLC/Allied Universal Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 06/01/29 | | | | 67,973 | | | | 60,495,970 | |
Sr. Unsec’d. Notes, 144A | | | 9.750 | | | | 07/15/27 | | | | 69,427 | | | | 69,507,778 | |
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 Sarl, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 06/01/28 | | | | 40,958 | | | | 37,875,910 | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 06/01/28 | | | | 36,956 | | | | 34,091,910 | |
Alta Equipment Group, Inc., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 9.000 | | | | 06/01/29 | | | | 22,485 | | | | 20,408,532 | |
AMN Healthcare, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.000 | | | | 04/15/29 | | | | 37,824 | | | | 35,319,295 | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/01/27 | | | | 25,110 | | | | 24,575,865 | |
APi Group DE, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 10/15/29 | | | | 10,373 | | | | 9,920,522 | |
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 04/01/28 | | | | 28,975 | | | | 26,904,036 | |
Gtd. Notes, 144A | | | 5.375 | | | | 03/01/29 | | | | 475 | | | | 436,472 | |
Gtd. Notes, 144A | | | 5.750 | | | | 07/15/27 | | | | 7,375 | | | | 7,169,405 | |
Gtd. Notes, 144A | | | 5.750 | | | | 07/15/27 | | | | 619 | | | | 603,325 | |
See Notes to Financial Statements.
46
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Commercial Services (cont’d.) | |
Boost Newco Borrower LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.500% | | | | 01/15/31 | | | | 14,825 | | | $ | 15,818,766 | |
Brink’s Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/15/27 | | | | 2,648 | | | | 2,586,049 | |
Gtd. Notes, 144A | | | 5.500 | | | | 07/15/25 | | | | 766 | | | | 765,860 | |
Gtd. Notes, 144A | | | 6.500 | | | | 06/15/29 | | | | 4,200 | | | | 4,352,738 | |
Herc Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.625 | | | | 06/15/29 | | | | 13,430 | | | | 13,815,988 | |
Hertz Corp. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 12/01/26 | | | | 9,950 | | | | 7,808,974 | |
Gtd. Notes, 144A | | | 5.000 | | | | 12/01/29 | | | | 14,225 | | | | 9,546,519 | |
Mavis Tire Express Services Topco Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 05/15/29 | | | | 100,254 | | | | 96,607,812 | |
NESCO Holdings II, Inc., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 5.500 | | | | 04/15/29 | | | | 28,190 | | | | 26,053,686 | |
Service Corp. International, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.375 | | | | 08/15/30 | | | | 17,030 | | | | 15,294,976 | |
Shift4 Payments LLC/Shift4 Payments Finance Sub, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.750 | | | | 08/15/32 | | | | 11,535 | | | | 11,902,768 | |
United Rentals North America, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.750 | | | | 01/15/32 | | | | 24,383 | | | | 22,013,914 | |
Gtd. Notes | | | 3.875 | | | | 02/15/31 | | | | 23,280 | | | | 21,504,812 | |
Gtd. Notes | | | 4.000 | | | | 07/15/30 | | | | 2,906 | | | | 2,717,985 | |
Gtd. Notes | | | 4.875 | | | | 01/15/28 | | | | 59,499 | | | | 58,654,990 | |
Valvoline, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.625 | | | | 06/15/31 | | | | 14,825 | | | | 13,200,280 | |
VT Topco, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.500 | | | | 08/15/30 | | | | 11,375 | | | | 11,948,051 | |
Williams Scotsman, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 06/15/29 | | | | 8,190 | | | | 8,448,868 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 721,506,516 | |
| | | | |
Computers 1.0% | | | | | | | | | | | | | | | | |
Amentum Escrow Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 08/01/32 | | | | 12,165 | | | | 12,711,019 | |
CA Magnum Holdings (India), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.375 | | | | 10/31/26 | | | | 6,425 | | | | 6,260,359 | |
Fortress Intermediate 3, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 06/01/31 | | | | 19,175 | | | | 19,914,346 | |
See Notes to Financial Statements.
PGIM High Yield Fund 47
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Computers (cont’d.) | |
Gartner, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.625% | | | | 06/15/29 | | | | 8,525 | | | $ | 8,052,407 | |
Gtd. Notes, 144A | | | 3.750 | | | | 10/01/30 | | | | 5,248 | | | | 4,857,571 | |
McAfee Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.375 | | | | 02/15/30 | | | | 73,451 | | | | 70,445,695 | |
NCR Atleos Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 04/01/29 | | | | 5,248 | | | | 5,786,251 | |
NCR Voyix Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 10/01/28 | | | | 17,670 | | | | 17,432,907 | |
Gtd. Notes, 144A | | | 5.125 | | | | 04/15/29 | | | | 34,999 | | | | 34,357,009 | |
Gtd. Notes, 144A | | | 5.250 | | | | 10/01/30 | | | | 11,634 | | | | 11,326,224 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 191,143,788 | |
| | | | |
Distribution/Wholesale 0.6% | | | | | | | | | | | | | | | | |
H&E Equipment Services, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.875 | | | | 12/15/28 | | | | 73,161 | | | | 67,767,905 | |
Ritchie Bros Holdings, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 03/15/31 | | | | 9,090 | | | | 9,635,400 | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 03/15/28 | | | | 5,050 | | | | 5,188,875 | |
Velocity Vehicle Group LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.000 | | | | 06/01/29 | | | | 6,155 | | | | 6,398,780 | |
Windsor Holdings III LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.500 | | | | 06/15/30 | | | | 24,100 | | | | 25,870,278 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 114,861,238 | |
| | | | |
Diversified Financial Services 3.9% | | | | | | | | | | | | | | | | |
Bread Financial Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.750 | | | | 03/15/29 | | | | 35,865 | | | | 38,720,593 | |
Encore Capital Group, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.500 | | | | 05/15/30 | | | | 10,185 | | | | 10,663,039 | |
Freedom Mortgage Holdings LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.125 | | | | 05/15/31 | | | | 17,260 | | | | 17,405,613 | |
Sr. Unsec’d. Notes, 144A | | | 9.250 | | | | 02/01/29 | | | | 10,750 | | | | 11,005,991 | |
GGAM Finance Ltd. (Ireland), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.875 | | | | 04/15/29 | | | | 5,200 | | | | 5,369,000 | |
Gtd. Notes, 144A | | | 8.000 | | | | 02/15/27 | | | | 11,925 | | | | 12,402,000 | |
Sr. Unsec’d. Notes, 144A | | | 8.000 | | | | 06/15/28 | | | | 13,325 | | | | 14,241,094 | |
See Notes to Financial Statements.
48
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Diversified Financial Services (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
goeasy Ltd. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.375% | | | | 05/01/26 | | | | 11,058 | | | $ | 10,767,727 | |
Gtd. Notes, 144A | | | 9.250 | | | | 12/01/28 | | | | 2,535 | | | | 2,718,787 | |
Sr. Unsec’d. Notes, 144A | | | 7.625 | | | | 07/01/29 | | | | 10,650 | | | | 10,937,550 | |
Intercontinental Exchange, Inc.,
Sr. Unsec’d. Notes, 144A | | | 3.625 | | | | 09/01/28 | | | | 40,106 | | | | 38,844,335 | |
Jefferies Finance LLC/JFIN Co-Issuer Corp.,
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 08/15/28 | | | | 19,060 | | | | 18,108,381 | |
LD Holdings Group LLC,
Gtd. Notes, 144A | | | 6.125 | | | | 04/01/28 | | | | 23,112 | | | | 19,578,264 | |
LFS Topco LLC,
Gtd. Notes, 144A | | | 5.875 | | | | 10/15/26 | | | | 14,692 | | | | 13,662,039 | |
LPL Holdings, Inc.,
Gtd. Notes, 144A | | | 4.375 | | | | 05/15/31 | | | | 1,250 | | | | 1,170,078 | |
Macquarie Airfinance Holdings Ltd. (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.400 | | | | 03/26/29 | | | | 13,610 | | | | 14,060,653 | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 03/26/31 | | | | 14,025 | | | | 14,635,758 | |
Sr. Unsec’d. Notes, 144A | | | 8.125 | | | | 03/30/29 | | | | 15,400 | | | | 16,381,577 | |
Sr. Unsec’d. Notes, 144A | | | 8.375 | | | | 05/01/28 | | | | 4,225 | | | | 4,465,179 | |
Nationstar Mortgage Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 12/15/30 | | | | 60,507 | | | | 57,469,638 | |
Gtd. Notes, 144A | | | 5.500 | | | | 08/15/28 | | | | 10,100 | | | | 9,928,361 | |
Gtd. Notes, 144A | | | 5.750 | | | | 11/15/31 | | | | 19,945 | | | | 19,418,602 | |
Gtd. Notes, 144A | | | 6.000 | | | | 01/15/27 | | | | 37,645 | | | | 37,589,819 | |
Gtd. Notes, 144A | | | 6.500 | | | | 08/01/29 | | | | 12,590 | | | | 12,686,482 | |
Navient Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.875 | | | | 03/15/28 | | | | 18,775 | | | | 17,888,402 | |
Sr. Unsec’d. Notes | | | 5.500 | | | | 03/15/29 | | | | 27,535 | | | | 26,188,423 | |
Sr. Unsec’d. Notes | | | 6.750 | | | | 06/25/25 | | | | 10,475 | | | | 10,509,961 | |
Sr. Unsec’d. Notes | | | 9.375 | | | | 07/25/30 | | | | 14,850 | | | | 16,109,498 | |
OneMain Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.875 | | | | 09/15/28 | | | | 14,370 | | | | 13,235,658 | |
Gtd. Notes | | | 4.000 | | | | 09/15/30 | | | | 35,389 | | | | 31,325,073 | |
Gtd. Notes | | | 6.625 | | | | 01/15/28 | | | | 3,159 | | | | 3,215,837 | |
Gtd. Notes | | | 7.125 | | | | 03/15/26 | | | | 51,653 | | | | 52,624,190 | |
Gtd. Notes | | | 7.125 | | | | 11/15/31 | | | | 13,870 | | | | 14,008,087 | |
Gtd. Notes | | | 7.500 | | | | 05/15/31 | | | | 7,715 | | | | 7,962,611 | |
PennyMac Financial Services, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.250 | | | | 02/15/29 | | | | 30,575 | | | | 28,891,898 | |
Gtd. Notes, 144A | | | 5.375 | | | | 10/15/25 | | | | 34,766 | | | | 34,626,279 | |
See Notes to Financial Statements.
PGIM High Yield Fund 49
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Diversified Financial Services (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
PennyMac Financial Services, Inc., (cont’d.) | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750% | | | | 09/15/31 | | | | 10,199 | | | $ | 9,840,825 | |
Gtd. Notes, 144A | | | 7.125 | | | | 11/15/30 | | | | 12,140 | | | | 12,331,185 | |
Gtd. Notes, 144A | | | 7.875 | | | | 12/15/29 | | | | 1,710 | | | | 1,815,012 | |
PRA Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.875 | | | | 01/31/30 | | | | 11,535 | | | | 11,932,269 | |
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 2.875 | | | | 10/15/26 | | | | 2,000 | | | | 1,903,671 | |
Gtd. Notes, 144A | | | 3.625 | | | | 03/01/29 | | | | 11,571 | | | | 10,754,518 | |
Gtd. Notes, 144A | | | 3.875 | | | | 03/01/31 | | | | 29,558 | | | | 26,993,296 | |
Gtd. Notes, 144A | | | 4.000 | | | | 10/15/33 | | | | 13,550 | | | | 11,967,929 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 756,355,182 | |
| | | | |
Electric 4.4% | | | | | | | | | | | | | | | | |
| | | | |
Calpine Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.750 | | | | 03/01/31 | | | | 3,300 | | | | 3,026,030 | |
Sr. Sec’d. Notes, 144A | | | 4.500 | | | | 02/15/28 | | | | 27,824 | | | | 26,980,977 | |
Sr. Sec’d. Notes, 144A | | | 5.250 | | | | 06/01/26 | | | | 377 | | | | 374,980 | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 02/01/29 | | | | 43,590 | | | | 41,642,061 | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 02/01/31 | | | | 79,706 | | | | 76,517,162 | |
Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 03/15/28 | | | | 167,999 | | | | 164,111,245 | |
Keystone Power Pass-Through Holders LLC/Conemaugh Power Pass-Through Holders,
Sub. Notes, 144A, Cash coupon 13.000% or PIK 13.000% | | | 13.000 | | | | 06/01/28 | | | | 10,455 | | | | 8,243,839 | |
NRG Energy, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.750 | | | | 01/15/28 | | | | 32,025 | | | | 32,050,792 | |
Gtd. Notes | | | 6.625 | | | | 01/15/27 | | | | 8,744 | | | | 8,747,754 | |
Gtd. Notes, 144A | | | 3.375 | | | | 02/15/29 | | | | 21,891 | | | | 20,108,039 | |
Gtd. Notes, 144A | | | 3.625 | | | | 02/15/31 | | | | 35,159 | | | | 31,546,216 | |
Gtd. Notes, 144A | | | 3.875 | | | | 02/15/32 | | | | 30,058 | | | | 26,970,006 | |
Gtd. Notes, 144A | | | 5.250 | | | | 06/15/29 | | | | 18,376 | | | | 18,205,096 | |
Jr. Sub. Notes, 144A | | | 10.250(ff) | | | | 03/15/28(oo) | | | | 33,700 | | | | 37,487,227 | |
PG&E Corp.,
Sr. Sec’d. Notes | | | 5.250 | | | | 07/01/30 | | | | 18,757 | | | | 18,369,373 | |
Vistra Corp., | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, 144A | | | 7.000(ff) | | | | 12/15/26(oo) | | | | 40,725 | | | | 41,092,560 | |
Jr. Sub. Notes, 144A | | | 8.000(ff) | | | | 10/15/26(oo) | | | | 38,890 | | | | 40,202,448 | |
Jr. Sub. Notes, Series C, 144A | | | 8.875(ff) | | | | 01/15/29(oo) | | | | 31,000 | | | | 32,887,302 | |
See Notes to Financial Statements.
50
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal
Amount
(000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Electric (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Vistra Operations Co. LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.375% | | | | 05/01/29 | | | | 35,350 | | | $ | 33,863,673 | |
Gtd. Notes, 144A | | | 5.000 | | | | 07/31/27 | | | | 100,108 | | | | 99,088,655 | |
Gtd. Notes, 144A | | | 5.500 | | | | 09/01/26 | | | | 9,690 | | | | 9,682,045 | |
Gtd. Notes, 144A | | | 5.625 | | | | 02/15/27 | | | | 61,805 | | | | 61,720,937 | |
Gtd. Notes, 144A | | | 6.875 | | | | 04/15/32 | | | | 13,985 | | | | 14,545,952 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 847,464,369 | |
| | | | |
Electrical Components & Equipment 0.4% | | | | | | | | | | | | | | | | |
| | | | |
Energizer Gamma Acquisition BV, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.500 | | | | 06/30/29 | | | EUR | 5,555 | | | | 5,757,330 | |
Energizer Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.375 | | | | 03/31/29 | | | | 23,672 | | | | 22,292,008 | |
Gtd. Notes, 144A | | | 4.750 | | | | 06/15/28 | | | | 2,650 | | | | 2,557,625 | |
Gtd. Notes, 144A | | | 6.500 | | | | 12/31/27 | | | | 1,810 | | | | 1,826,782 | |
EnerSys, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.625 | | | | 01/15/32 | | | | 4,845 | | | | 5,078,066 | |
WESCO Distribution, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.375 | | | | 03/15/29 | | | | 13,310 | | | | 13,678,586 | |
Gtd. Notes, 144A | | | 6.625 | | | | 03/15/32 | | | | 10,180 | | | | 10,504,829 | |
Gtd. Notes, 144A | | | 7.250 | | | | 06/15/28 | | | | 20,857 | | | | 21,400,521 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 83,095,747 | |
| | | | |
Engineering & Construction 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Brand Industrial Services, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 10.375 | | | | 08/01/30 | | | | 10,725 | | | | 11,690,110 | |
TopBuild Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.625 | | | | 03/15/29 | | | | 13,433 | | | | 12,438,378 | |
Gtd. Notes, 144A | | | 4.125 | | | | 02/15/32 | | | | 11,500 | | | | 10,482,623 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 34,611,111 | |
| | | | |
Entertainment 2.5% | | | | | | | | | | | | | | | | |
| | | | |
Caesars Entertainment, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/15/29 | | | | 83,715 | | | | 79,157,928 | |
Sr. Sec’d. Notes, 144A | | | 6.500 | | | | 02/15/32 | | | | 35,775 | | | | 36,790,343 | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 02/15/30 | | | | 57,042 | | | | 59,142,531 | |
See Notes to Financial Statements.
PGIM High Yield Fund 51
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Entertainment (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
CCM Merger, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.375% | | | | 05/01/26 | | | | 21,770 | | | $ | 21,755,269 | |
Churchill Downs, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.750 | | | | 04/01/30 | | | | 11,012 | | | | 10,938,178 | |
Cinemark USA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 08/01/32 | | | | 8,875 | | | | 9,212,566 | |
International Game Technology PLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.125 | | | | 04/15/26 | | | | 537 | | | | 524,918 | |
Sr. Sec’d. Notes, 144A | | | 5.250 | | | | 01/15/29 | | | | 4,336 | | | | 4,270,960 | |
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 01/15/27 | | | | 6,978 | | | | 7,039,058 | |
Jacobs Entertainment, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.750 | | | | 02/15/29 | | | | 36,978 | | | | 35,240,640 | |
Sr. Unsec’d. Notes, 144A | | | 6.750 | | | | 02/15/29 | | | | 16,535 | | | | 15,693,869 | |
Midwest Gaming Borrower LLC/Midwest Gaming Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.875 | | | | 05/01/29 | | | | 37,779 | | | | 36,109,909 | |
Penn Entertainment, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.125 | | | | 07/01/29 | | | | 17,912 | | | | 16,040,771 | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 01/15/27 | | | | 56,199 | | | | 55,163,315 | |
Premier Entertainment Sub LLC/Premier Entertainment Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 09/01/31 | | | | 31,925 | | | | 22,142,747 | |
Scientific Games Holdings LP/Scientific Games US FinCo, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.625 | | | | 03/01/30 | | | | 26,348 | | | | 26,094,904 | |
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 10/01/29 | | | | 32,036 | | | | 31,335,561 | |
Gtd. Notes, 144A | | | 7.125 | | | | 02/15/31 | | | | 20,950 | | | | 22,239,666 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 488,893,133 | |
| | | | |
Environmental Control 0.6% | | | | | | | | | | | | | | | | |
| | | | |
GFL Environmental, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.000 | | | | 08/01/28 | | | | 9,450 | | | | 8,977,500 | |
Gtd. Notes, 144A | | | 4.375 | | | | 08/15/29 | | | | 36,677 | | | | 34,809,040 | |
Gtd. Notes, 144A | | | 4.750 | | | | 06/15/29 | | | | 5,000 | | | | 4,825,000 | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 01/15/31 | | | | 14,000 | | | | 14,560,000 | |
Reworld Holding Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.000 | | | | 09/01/30 | | | | 12,609 | | | | 11,588,962 | |
Gtd. Notes, 144A | | | 4.875 | | | | 12/01/29 | | | | 30,751 | | | | 28,550,323 | |
See Notes to Financial Statements.
52
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Environmental Control (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Wrangler Holdco Corp. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.625% | | | | 04/01/32 | | | | 5,845 | | | $ | 6,049,575 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 109,360,400 | |
| | | | |
Foods 2.1% | | | | | | | | | | | | | | | | |
| | | | |
Albertson’s Cos., Inc./Safeway, Inc./New Albertson’s LP/Albertson’s LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.500 | | | | 03/15/29 | | | | 2,719 | | | | 2,519,414 | |
Gtd. Notes, 144A | | | 4.625 | | | | 01/15/27 | | | | 11,182 | | | | 10,935,735 | |
Gtd. Notes, 144A | | | 5.875 | | | | 02/15/28 | | | | 22,106 | | | | 22,062,934 | |
Gtd. Notes, 144A | | | 6.500 | | | | 02/15/28 | | | | 6,718 | | | | 6,803,516 | |
B&G Foods, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.250 | | | | 04/01/25 | | | | 264 | | | | 261,476 | |
Gtd. Notes | | | 5.250 | | | | 09/15/27 | | | | 101,650 | | | | 96,277,763 | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 09/15/28 | | | | 29,340 | | | | 30,495,281 | |
Bellis Acquisition Co. PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.125 | | | | 05/14/30 | | | GBP | 26,500 | | | | 33,763,945 | |
JBS USA Holding Lux Sarl/JBS USA Food Co./JBS Lux Co. Sarl, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.750 | | | | 12/01/31 | | | | 18,077 | | | | 16,308,034 | |
Lamb Weston Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 01/31/30 | | | | 6,561 | | | | 6,107,788 | |
Gtd. Notes, 144A | | | 4.375 | | | | 01/31/32 | | | | 6,655 | | | | 6,119,922 | |
Pilgrim’s Pride Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.500 | | | | 03/01/32 | | | | 46,652 | | | | 41,236,305 | |
Gtd. Notes | | | 4.250 | | | | 04/15/31 | | | | 31,667 | | | | 29,760,778 | |
Post Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 04/15/30 | | | | 41,306 | | | | 39,266,809 | |
Gtd. Notes, 144A | | | 5.500 | | | | 12/15/29 | | | | 27,997 | | | | 27,500,103 | |
Gtd. Notes, 144A | | | 6.375 | | | | 03/01/33 | | | | 11,790 | | | | 11,879,041 | |
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 02/15/32 | | | | 7,715 | | | | 7,917,767 | |
Sr. Unsec’d. Notes, 144A | | | 4.500 | | | | 09/15/31 | | | | 24,316 | | | | 22,617,995 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 411,834,606 | |
| | | | |
Gas 0.2% | | | | | | | | | | | | | | | | |
| | | | |
AmeriGas Partners LP/AmeriGas Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.500 | | | | 05/20/25 | | | | 4,707 | | | | 4,691,301 | |
See Notes to Financial Statements.
PGIM High Yield Fund 53
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Gas (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
AmeriGas Partners LP/AmeriGas Finance Corp., (cont’d.) | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.750% | | | | 05/20/27 | | | | 12,042 | | | $ | 11,784,989 | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 08/20/26 | | | | 18,319 | | | | 18,124,017 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 34,600,307 | |
| | | | |
Healthcare-Products 0.9% | | | | | | | | | | | | | | | | |
| | | | |
Medline Borrower LP, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 04/01/29 | | | | 185,377 | | | | 175,316,607 | |
| | | | |
Healthcare-Services 3.4% | | | | | | | | | | | | | | | | |
| | | | |
DaVita, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.750 | | | | 02/15/31 | | | | 111,935 | | | | 99,675,370 | |
Gtd. Notes, 144A | | | 4.625 | | | | 06/01/30 | | | | 93,999 | | | | 88,465,886 | |
Gtd. Notes, 144A | | | 6.875 | | | | 09/01/32 | | | | 22,075 | | | | 22,586,841 | |
HCA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.050 | | | | 12/01/27 | | | | 8,725 | | | | 9,302,868 | |
Gtd. Notes | | | 7.500 | | | | 11/06/33 | | | | 17,650 | | | | 20,158,869 | |
Gtd. Notes, MTN | | | 7.580 | | | | 09/15/25 | | | | 7,101 | | | | 7,243,565 | |
Gtd. Notes, MTN | | | 7.750 | | | | 07/15/36 | | | | 25,990 | | | | 30,670,603 | |
Legacy LifePoint Health LLC, | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 02/15/27 | | | | 30,278 | | | | 29,562,699 | |
LifePoint Health, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.375 | | | | 01/15/29 | | | | 42,494 | | | | 39,712,244 | |
MPH Acquisition Holdings LLC, | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 09/01/28 | | | | 54,773 | | | | 39,960,674 | |
Prime Healthcare Services, Inc., | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.375 | | | | 09/01/29 | | | | 15,760 | | | | 15,878,917 | |
Tenet Healthcare Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 4.250 | | | | 06/01/29 | | | | 80,353 | | | | 77,156,783 | |
Sr. Sec’d. Notes | | | 4.375 | | | | 01/15/30 | | | | 117,467 | | | | 112,398,004 | |
Sr. Sec’d. Notes | | | 4.625 | | | | 06/15/28 | | | | 9,717 | | | | 9,504,237 | |
Sr. Sec’d. Notes | | | 6.750 | | | | 05/15/31 | | | | 8,915 | | | | 9,248,955 | |
Sr. Unsec’d. Notes | | | 6.875 | | | | 11/15/31 | | | | 40,341 | | | | 43,886,849 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 655,413,364 | |
See Notes to Financial Statements.
54
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Home Builders 4.1% | | | | | | | | | | | | | | | | |
| | | | |
Ashton Woods USA LLC/Ashton Woods Finance Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.625% | | | | 08/01/29 | | | | 21,679 | | | $ | 20,569,025 | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 04/01/30 | | | | 27,436 | | | | 25,837,821 | |
Sr. Unsec’d. Notes, 144A | | | 6.625 | | | | 01/15/28 | | | | 11,883 | | | | 11,977,959 | |
Beazer Homes USA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.875 | | | | 10/15/27 | | | | 43,153 | | | | 42,898,124 | |
Gtd. Notes | | | 7.250 | | | | 10/15/29 | | | | 76,643 | | | | 78,333,945 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 03/15/31 | | | | 16,350 | | | | 16,688,602 | |
Brookfield Residential Properties, Inc./Brookfield Residential US LLC (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.875 | | | | 02/15/30 | | | | 50,121 | | | | 46,361,925 | |
Gtd. Notes, 144A | | | 6.250 | | | | 09/15/27 | | | | 29,693 | | | | 29,544,535 | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 06/15/29 | | | | 21,994 | | | | 20,564,390 | |
Empire Communities Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.750 | | | | 05/01/29 | | | | 19,585 | | | | 20,686,656 | |
Forestar Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.850 | | | | 05/15/26 | | | | 854 | | | | 832,519 | |
Gtd. Notes, 144A | | | 5.000 | | | | 03/01/28 | | | | 41,915 | | | | 40,671,824 | |
KB Home, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.000 | | | | 06/15/31 | | | | 21,256 | | | | 19,610,119 | |
Gtd. Notes | | | 4.800 | | | | 11/15/29 | | | | 29,319 | | | | 28,619,891 | |
Gtd. Notes | | | 6.875 | | | | 06/15/27 | | | | 12,836 | | | | 13,338,702 | |
Gtd. Notes | | | 7.250 | | | | 07/15/30 | | | | 3,775 | | | | 3,930,768 | |
Landsea Homes Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.875 | | | | 04/01/29 | | | | 32,540 | | | | 33,652,570 | |
M/I Homes, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.950 | | | | 02/15/30 | | | | 5,017 | | | | 4,608,519 | |
Gtd. Notes | | | 4.950 | | | | 02/01/28 | | | | 28,261 | | | | 27,718,600 | |
Mattamy Group Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 03/01/30 | | | | 59,110 | | | | 55,932,837 | |
Sr. Unsec’d. Notes, 144A | | | 5.250 | | | | 12/15/27 | | | | 32,846 | | | | 32,394,368 | |
Meritage Homes Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.125 | | | | 06/06/27 | | | | 14,350 | | | | 14,455,111 | |
New Home Co., Inc. (The), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.250 | | | | 10/01/29 | | | | 15,005 | | | | 15,636,717 | |
Shea Homes LP/Shea Homes Funding Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 02/15/28 | | | | 38,475 | | | | 37,552,832 | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 04/01/29 | | | | 19,834 | | | | 19,060,196 | |
STL Holding Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.750 | | | | 02/15/29 | | | | 17,243 | | | | 18,123,252 | |
See Notes to Financial Statements.
PGIM High Yield Fund 55
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Home Builders (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Taylor Morrison Communities, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750% | | | | 01/15/28 | | | | 15,444 | | | $ | 15,574,350 | |
Gtd. Notes, 144A | | | 5.875 | | | | 06/15/27 | | | | 31,369 | | | | 31,775,147 | |
Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 08/01/30 | | | | 27,639 | | | | 27,364,453 | |
Tri Pointe Homes, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.250 | | | | 06/01/27 | | | | 6,603 | | | | 6,574,264 | |
Gtd. Notes | | | 5.700 | | | | 06/15/28 | | | | 34,272 | | | | 34,451,291 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 795,341,312 | |
| | | | |
Household Products/Wares 0.5% | | | | | | | | | | | | | | | | |
| | | | |
ACCO Brands Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.250 | | | | 03/15/29 | | | | 44,205 | | | | 41,117,073 | |
Kronos Acquisition Holdings, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.250 | | | | 06/30/31 | | | | 27,910 | | | | 28,712,412 | |
Sr. Unsec’d. Notes, 144A | | | 10.750 | | | | 06/30/32 | | | | 13,800 | | | | 13,768,674 | |
Spectrum Brands, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.875 | | | | 03/15/31 | | | | 7,000 | | | | 6,241,764 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 89,839,923 | |
| | | | |
Housewares 0.7% | | | | | | | | | | | | | | | | |
| | | | |
Scotts Miracle-Gro Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.000 | | | | 04/01/31 | | | | 58,993 | | | | 52,857,753 | |
Gtd. Notes | | | 4.375 | | | | 02/01/32 | | | | 40,575 | | | | 36,582,893 | |
SWF Holdings I Corp.,
Sr. Unsec’d. Notes, 144A (original cost $80,126,488; purchased 09/17/21 - 04/29/22)(f) | | | 6.500 | | | | 10/01/29 | | | | 84,380 | | | | 44,720,619 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 134,161,265 | |
| | | | |
Insurance 0.7% | | | | | | | | | | | | | | | | |
| | | | |
Acrisure LLC/Acrisure Finance, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 11/06/30 | | | | 19,610 | | | | 20,159,036 | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 08/01/29 | | | | 1,500 | | | | 1,432,441 | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 02/01/29 | | | | 36,640 | | | | 37,675,956 | |
Sr. Unsec’d. Notes, 144A | | | 8.500 | | | | 06/15/29 | | | | 12,290 | | | | 12,784,386 | |
AmWINS Group, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.875 | | | | 06/30/29 | | | | 14,600 | | | | 13,920,451 | |
See Notes to Financial Statements.
56
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Insurance (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
AssuredPartners, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.625% | | | | 01/15/29 | | | | 19,845 | | | $ | 18,963,352 | |
BroadStreet Partners, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.875 | | | | 04/15/29 | | | | 24,566 | | | | 23,380,363 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 128,315,985 | |
| | | | |
Internet 0.7% | | | | | | | | | | | | | | | | |
| | | | |
Cablevision Lightpath LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 09/15/27 | | | | 47,650 | | | | 44,669,967 | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 09/15/28 | | | | 24,703 | | | | 22,307,715 | |
Gen Digital, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 04/15/25 | | | | 42,438 | | | | 42,254,457 | |
Go Daddy Operating Co. LLC/GD Finance Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.500 | | | | 03/01/29 | | | | 17,687 | | | | 16,453,737 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 125,685,876 | |
| | | | |
Iron/Steel 0.6% | | | | | | | | | | | | | | | | |
| | | | |
ATI, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 7.250 | | | | 08/15/30 | | | | 7,760 | | | | 8,233,271 | |
Big River Steel LLC/BRS Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 01/31/29 | | | | 40,370 | | | | 40,813,260 | |
Cleveland-Cliffs, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.750 | | | | 04/15/30 | | | | 28,560 | | | | 28,998,871 | |
Gtd. Notes, 144A | | | 7.000 | | | | 03/15/32 | | | | 14,875 | | | | 14,943,243 | |
Mineral Resources Ltd. (Australia), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.250 | | | | 10/01/28 | | | | 21,375 | | | | 22,630,781 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 115,619,426 | |
| | | | |
Leisure Time 4.0% | | | | | | | | | | | | | | | | |
| | | | |
Amer Sports Co. (Finland), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 02/16/31 | | | | 44,830 | | | | 45,278,300 | |
Carnival Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 03/01/27 | | | | 96,396 | | | | 96,396,000 | |
Gtd. Notes, 144A | | | 6.000 | | | | 05/01/29 | | | | 32,759 | | | | 32,800,276 | |
Sr. Sec’d. Notes, 144A | | | 4.000 | | | | 08/01/28 | | | | 70,658 | | | | 67,301,745 | |
Lindblad Expeditions Holdings, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.000 | | | | 05/15/28 | | | | 41,425 | | | | 42,984,878 | |
See Notes to Financial Statements.
PGIM High Yield Fund 57
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Leisure Time (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Lindblad Expeditions LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750% | | | | 02/15/27 | | | | 5,350 | | | $ | 5,315,100 | |
NCL Corp. Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 03/15/26 | | | | 77,003 | | | | 76,690,175 | |
Sr. Sec’d. Notes, 144A | | | 5.875 | | | | 02/15/27 | | | | 16,311 | | | | 16,290,611 | |
Sr. Sec’d. Notes, 144A | | | 8.125 | | | | 01/15/29 | | | | 15,000 | | | | 16,054,200 | |
Sr. Sec’d. Notes, 144A | | | 8.375 | | | | 02/01/28 | | | | 10,559 | | | | 11,126,546 | |
Sr. Unsec’d. Notes, 144A | | | 7.750 | | | | 02/15/29 | | | | 47,055 | | | | 50,172,394 | |
NCL Finance Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 03/15/28 | | | | 31,019 | | | | 31,329,190 | |
Royal Caribbean Cruises Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.250 | | | | 01/15/30 | | | | 10,450 | | | | 10,998,625 | |
Sr. Unsec’d. Notes | | | 7.500 | | | | 10/15/27 | | | | 3,700 | | | | 3,931,250 | |
Sr. Unsec’d. Notes, 144A | | | 5.375 | | | | 07/15/27 | | | | 18,650 | | | | 18,704,272 | |
Sr. Unsec’d. Notes, 144A | | | 5.500 | | | | 08/31/26 | | | | 2,950 | | | | 2,946,313 | |
Sr. Unsec’d. Notes, 144A | | | 5.500 | | | | 04/01/28 | | | | 51,561 | | | | 51,771,369 | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 02/01/33 | | | | 34,295 | | | | 35,141,058 | |
Viking Cruises Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 09/15/27 | | | | 55,267 | | | | 55,191,284 | |
Sr. Unsec’d. Notes, 144A | | | 7.000 | | | | 02/15/29 | | | | 9,225 | | | | 9,328,781 | |
Sr. Unsec’d. Notes, 144A | | | 9.125 | | | | 07/15/31 | | | | 35,735 | | | | 39,174,494 | |
Viking Ocean Cruises Ship VII Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.625 | | | | 02/15/29 | | | | 30,520 | | | | 30,138,500 | |
Vista Outdoor, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.500 | | | | 03/15/29 | | | | 1,030 | | | | 1,027,048 | |
VOC Escrow Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.000 | | | | 02/15/28 | | | | 16,450 | | | | 16,102,699 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 766,195,108 | |
| | | | |
Lodging 1.7% | | | | | | | | | | | | | | | | |
| | | | |
Boyd Gaming Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 06/15/31 | | | | 40,785 | | | | 38,355,323 | |
Genting New York LLC/GENNY Capital, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.300 | | | | 02/15/26 | | | | 2,668 | | | | 2,580,737 | |
Hilton Domestic Operating Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.625 | | | | 02/15/32 | | | | 39,540 | | | | 35,469,343 | |
Gtd. Notes, 144A | | | 4.000 | | | | 05/01/31 | | | | 1,852 | | | | 1,713,487 | |
Gtd. Notes, 144A | | | 5.875 | | | | 04/01/29 | | | | 16,360 | | | | 16,662,383 | |
See Notes to Financial Statements.
58
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Lodging (cont’d.) | |
| | | | |
MGM Resorts International, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.625% | | | | 09/01/26 | | | | 3,520 | | | $ | 3,470,659 | |
Gtd. Notes | | | 4.750 | | | | 10/15/28 | | | | 54,592 | | | | 53,172,341 | |
Gtd. Notes | | | 5.500 | | | | 04/15/27 | | | | 42,825 | | | | 42,830,317 | |
Gtd. Notes | | | 5.750 | | | | 06/15/25 | | | | 4,825 | | | | 4,821,713 | |
Gtd. Notes | | | 6.500 | | | | 04/15/32 | | | | 53,140 | | | | 53,554,588 | |
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.875 | | | | 05/15/25 | | | | 19,045 | | | | 19,005,247 | |
Wynn Macau Ltd. (Macau), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.500 | | | | 10/01/27 | | | | 14,965 | | | | 14,468,761 | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 08/26/28 | | | | 41,835 | | | | 39,868,755 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 325,973,654 | |
| | | | |
Machinery-Construction & Mining 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Terex Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | | | | | | | | | | | | | | |
| | | 5.000 | | | | 05/15/29 | | | | 26,280 | | | | 25,533,567 | |
| | | | |
Machinery-Diversified 0.6% | | | | | | | | | | | | | | | | |
| | | | |
Chart Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.500 | | | | 01/01/31 | | | | 15,155 | | | | 16,457,071 | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 01/01/30 | | | | 26,475 | | | | 27,837,436 | |
GrafTech Finance, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A (original cost $34,493,021; purchased 12/08/20 - 06/26/24)(f) | | | 4.625 | | | | 12/15/28 | | | | 38,402 | | | | 25,714,557 | |
Maxim Crane Works Holdings Capital LLC, | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 11.500 | | | | 09/01/28 | | | | 35,900 | | | | 37,357,285 | |
TK Elevator US Newco, Inc. (Germany), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.250 | | | | 07/15/27 | | | | 14,525 | | | | 14,252,656 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 121,619,005 | |
| | | | |
Media 4.2% | | | | | | | | | | | | | | | | |
| | | | |
CCO Holdings LLC/CCO Holdings Capital Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.500 | | | | 05/01/32 | | | | 38,795 | | | | 33,136,718 | |
Sr. Unsec’d. Notes, 144A | | | 4.250 | | | | 02/01/31 | | | | 643 | | | | 558,183 | |
Sr. Unsec’d. Notes, 144A | | | 4.750 | | | | 03/01/30 | | | | 7,292 | | | | 6,656,304 | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 02/01/28 | | | | 32,875 | | | | 31,624,637 | |
See Notes to Financial Statements.
PGIM High Yield Fund 59
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Media (cont’d.) | |
| | | | |
CCO Holdings LLC/CCO Holdings Capital Corp., (cont’d.) | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | 5.125% | | 05/01/27 | | | 14,778 | | | $ | 14,500,909 | |
Sr. Unsec’d. Notes, 144A | | 5.375 | | 06/01/29 | | | 1,621 | | | | 1,536,418 | |
Sr. Unsec’d. Notes, 144A | | 5.500 | | 05/01/26 | | | 22,685 | | | | 22,624,529 | |
CSC Holdings LLC, | | | | | | | | | | | | |
Gtd. Notes, 144A | | 3.375 | | 02/15/31 | | | 27,213 | | | | 17,568,063 | |
Gtd. Notes, 144A | | 4.125 | | 12/01/30 | | | 16,970 | | | | 11,152,836 | |
Gtd. Notes, 144A | | 5.375 | | 02/01/28 | | | 15,756 | | | | 12,082,876 | |
Gtd. Notes, 144A | | 5.500 | | 04/15/27 | | | 44,605 | | | | 36,499,978 | |
Gtd. Notes, 144A | | 6.500 | | 02/01/29 | | | 960 | | | | 724,102 | |
Sr. Unsec’d. Notes, 144A | | 4.625 | | 12/01/30 | | | 115,940 | | | | 45,297,781 | |
Sr. Unsec’d. Notes, 144A | | 5.000 | | 11/15/31 | | | 14,570 | | | | 5,408,990 | |
Sr. Unsec’d. Notes, 144A | | 5.750 | | 01/15/30 | | | 36,442 | | | | 14,392,245 | |
Sr. Unsec’d. Notes, 144A | | 7.500 | | 04/01/28 | | | 23,472 | | | | 11,795,628 | |
Diamond Sports Group LLC/Diamond Sports Finance Co., | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $181,475,272; purchased 07/18/19 - 06/03/22)(f) | | 6.625 | | 08/15/27(d) | | | 267,691 | | | | 4,901,155 | |
Sec’d. Notes, 144A (original cost $59,318,362; purchased 11/18/21 - 08/03/22)(f) | | 5.375 | | 08/15/26(d) | | | 183,396 | | | | 2,355,203 | |
DISH DBS Corp., | | | | | | | | | | | | |
Gtd. Notes | | 5.125 | | 06/01/29 | | | 64,394 | | | | 29,382,397 | |
Gtd. Notes | | 7.375 | | 07/01/28 | | | 30,755 | | | | 15,796,670 | |
Gtd. Notes | | 7.750 | | 07/01/26 | | | 175,096 | | | | 118,372,190 | |
DISH Network Corp., | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 11.750 | | 11/15/27 | | | 40,700 | | | | 41,362,653 | |
News Corp., | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | 3.875 | | 05/15/29 | | | 10,433 | | | | 9,795,924 | |
Nexstar Media, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 5.625 | | 07/15/27 | | | 11,170 | | | | 10,915,689 | |
Radiate Holdco LLC/Radiate Finance, Inc., | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 4.500 | | 09/15/26 | | | 39,352 | | | | 31,168,449 | |
Sr. Unsec’d. Notes, 144A | | 6.500 | | 09/15/28 | | | 103,124 | | | | 56,729,933 | |
Sinclair Television Group, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 5.125 | | 02/15/27 | | | 37,592 | | | | 32,023,467 | |
Univision Communications, Inc., | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 4.500 | | 05/01/29 | | | 20,732 | | | | 18,195,335 | |
Sr. Sec’d. Notes, 144A | | 6.625 | | 06/01/27 | | | 94,531 | | | | 93,574,097 | |
Sr. Sec’d. Notes, 144A | | 8.000 | | 08/15/28 | | | 17,840 | | | | 18,038,454 | |
See Notes to Financial Statements.
60
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Media (cont’d.) | |
| | | | |
Virgin Media Secured Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.500% | | | | 08/15/30 | | | | 5,458 | | | $ | 4,803,040 | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 05/15/29 | | | | 15,998 | | | | 15,146,426 | |
VZ Secured Financing BV (Netherlands), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.000 | | | | 01/15/32 | | | | 43,165 | | | | 38,996,880 | |
Ziggo Bond Co. BV (Netherlands), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 02/28/30 | | | | 1,800 | | | | 1,615,500 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 808,733,659 | |
| | | | |
Metal Fabricate/Hardware 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Roller Bearing Co. of America, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | | | | | | | | | | | | | | |
| | | | |
| | | 4.375 | | | | 10/15/29 | | | | 16,098 | | | | 15,308,061 | |
| | | | |
Mining 1.7% | | | | | | | | | | | | | | | | |
| | | | |
Arsenal AIC Parent LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 10/01/30 | | | | 8,950 | | | | 9,635,960 | |
Unsec’d. Notes, 144A | | | 11.500 | | | | 10/01/31 | | | | 18,513 | | | | 20,957,242 | |
Eldorado Gold Corp. (Turkey), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.250 | | | | 09/01/29 | | | | 35,960 | | | | 35,518,771 | |
First Quantum Minerals Ltd. (Zambia), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.875 | | | | 10/15/27 | | | | 29,426 | | | | 29,104,080 | |
Gtd. Notes, 144A | | | 8.625 | | | | 06/01/31 | | | | 16,300 | | | | 16,305,094 | |
Sec’d. Notes, 144A | | | 9.375 | | | | 03/01/29 | | | | 12,230 | | | | 12,952,548 | |
Hecla Mining Co., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.250 | | | | 02/15/28 | | | | 29,595 | | | | 30,095,597 | |
Hudbay Minerals, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.500 | | | | 04/01/26 | | | | 24,262 | | | | 23,898,070 | |
Gtd. Notes, 144A | | | 6.125 | | | | 04/01/29 | | | | 42,395 | | | | 42,648,522 | |
New Gold, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.500 | | | | 07/15/27 | | | | 50,319 | | | | 50,759,291 | |
Novelis Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.250 | | | | 11/15/26 | | | | 937 | | | | 901,951 | |
Gtd. Notes, 144A | | | 3.875 | | | | 08/15/31 | | | | 5,083 | | | | 4,561,764 | |
Gtd. Notes, 144A | | | 4.750 | | | | 01/30/30 | | | | 40,490 | | | | 38,767,059 | |
Taseko Mines Ltd. (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.250 | | | | 05/01/30 | | | | 11,730 | | | | 12,169,875 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 328,275,824 | |
See Notes to Financial Statements.
PGIM High Yield Fund 61
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Miscellaneous Manufacturing 0.3% | |
| | | | |
Amsted Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625% | | | | 07/01/27 | | | | 6,475 | | | $ | 6,457,172 | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 05/15/30 | | | | 28,647 | | | | 26,992,194 | |
Trinity Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 07/15/28 | | | | 25,330 | | | | 26,538,647 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 59,988,013 | |
| | | | |
Office/Business Equipment 0.1% | | | | | | | | | | | | | | | | |
| | | | |
CDW LLC/CDW Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.250 | | | | 02/15/29 | | | | 5,920 | | | | 5,552,482 | |
Zebra Technologies Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.500 | | | | 06/01/32 | | | | 7,655 | | | | 7,919,330 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 13,471,812 | |
| | | | |
Oil & Gas 6.2% | | | | | | | | | | | | | | | | |
| | | | |
Aethon United BR LP/Aethon United Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 02/15/26 | | | | 19,986 | | | | 20,253,321 | |
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.875 | | | | 12/15/24(d) | | | | 104,709 | | | | 10,471 | |
Antero Resources Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.625 | | | | 02/01/29 | | | | 7,452 | | | | 7,721,237 | |
Ascent Resources Utica Holdings LLC/ARU Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 11/01/26 | | | | 17,418 | | | | 17,484,337 | |
Gtd. Notes, 144A | | | 9.000 | | | | 11/01/27 | | | | 31,374 | | | | 38,327,749 | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 12/31/28 | | | | 51,825 | | | | 53,378,684 | |
Chesapeake Energy Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $ 15,642,913; purchased 02/02/21 - 01/20/22)(f) | | | 5.500 | | | | 02/01/26 | | | | 15,495 | | | | 15,486,335 | |
Gtd. Notes, 144A (original cost $ 10,895,000; purchased 02/02/21)(f) | | | 5.875 | | | | 02/01/29 | | | | 10,895 | | | | 10,926,501 | |
Gtd. Notes, 144A (original cost $ 7,244,117; purchased 06/28/21 -
10/20/22)(f) | | | 6.750 | | | | 04/15/29 | | | | 7,159 | | | | 7,271,633 | |
CITGO Petroleum Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.375 | | | | 06/15/26 | | | | 726 | | | | 729,794 | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 06/15/25 | | | | 56,580 | | | | 56,669,313 | |
See Notes to Financial Statements.
62
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Oil & Gas (cont’d.) | |
| | | | |
Civitas Resources, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 8.375% | | 07/01/28 | | | 29,075 | | | $ | 30,709,656 | |
Gtd. Notes, 144A | | 8.625 | | 11/01/30 | | | 12,200 | | | | 13,286,659 | |
CNX Resources Corp., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 7.250 | | 03/01/32 | | | 12,400 | | | | 13,006,256 | |
Comstock Resources, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 5.875 | | 01/15/30 | | | 18,425 | | | | 17,431,463 | |
Gtd. Notes, 144A | | 6.750 | | 03/01/29 | | | 32,042 | | | | 31,510,673 | |
Crescent Energy Finance LLC, | | | | | | | | | | | | |
Gtd. Notes, 144A | | 7.375 | | 01/15/33 | | | 12,370 | | | | 12,701,094 | |
Gtd. Notes, 144A | | 7.625 | | 04/01/32 | | | 11,700 | | | | 12,069,622 | |
Gtd. Notes, 144A | | 9.250 | | 02/15/28 | | | 30,727 | | | | 32,515,976 | |
CrownRock LP/CrownRock Finance, Inc.,
Sr. Unsec’d. Notes, 144A | | 5.000 | | 05/01/29 | | | 5,123 | | | | 5,197,578 | |
Diamond Foreign Asset Co./Diamond Finance LLC,
Sec’d. Notes, 144A | | 8.500 | | 10/01/30 | | | 9,975 | | | | 10,487,715 | |
Endeavor Energy Resources LP/EER Finance, Inc.,
Sr. Unsec’d. Notes, 144A | | 5.750 | | 01/30/28 | | | 28,913 | | | | 29,468,141 | |
Hilcorp Energy I LP/Hilcorp Finance Co., | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | 5.750 | | 02/01/29 | | | 28,950 | | | | 28,766,050 | |
Sr. Unsec’d. Notes, 144A | | 6.000 | | 04/15/30 | | | 16,561 | | | | 16,511,408 | |
Sr. Unsec’d. Notes, 144A | | 6.000 | | 02/01/31 | | | 26,190 | | | | 26,066,757 | |
Sr. Unsec’d. Notes, 144A | | 6.250 | | 11/01/28 | | | 43,198 | | | | 43,455,658 | |
Sr. Unsec’d. Notes, 144A | | 6.250 | | 04/15/32 | | | 24,140 | | | | 24,104,909 | |
Sr. Unsec’d. Notes, 144A | | 8.375 | | 11/01/33 | | | 8,341 | | | | 9,133,747 | |
Kraken Oil & Gas Partners LLC, | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | 7.625 | | 08/15/29 | | | 8,985 | | | | 9,261,224 | |
Matador Resources Co., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 6.500 | | 04/15/32 | | | 20,070 | | | | 20,382,345 | |
MEG Energy Corp. (Canada), | | | | | | | | | | | | |
Gtd. Notes, 144A | | 5.875 | | 02/01/29 | | | 17,600 | | | | 17,446,000 | |
Nabors Industries Ltd., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 7.500 | | 01/15/28 | | | 29,643 | | | | 29,050,140 | |
Nabors Industries, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 7.375 | | 05/15/27 | | | 11,475 | | | | 11,599,622 | |
Gtd. Notes, 144A | | 8.875 | | 08/15/31 | | | 10,835 | | | | 10,863,601 | |
Gtd. Notes, 144A | | 9.125 | | 01/31/30 | | | 44,770 | | | | 48,042,768 | |
Noble Finance II LLC, | | | | | | | | | | | | |
Gtd. Notes, 144A | | 8.000 | | 04/15/30 | | | 21,035 | | | | 21,839,830 | |
See Notes to Financial Statements.
PGIM High Yield Fund 63
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Oil & Gas (cont’d.) | |
| | | | |
Occidental Petroleum Corp., | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | 7.125% | | 10/15/27 | | | 1,230 | | | $ | 1,300,555 | |
Sr. Unsec’d. Notes | | 7.200 | | 04/01/28 | | | 2,400 | | | | 2,556,026 | |
Sr. Unsec’d. Notes | | 7.875 | | 09/15/31 | | | 850 | | | | 978,454 | |
Sr. Unsec’d. Notes | | 7.950 | | 04/15/29 | | | 8,558 | | | | 9,471,428 | |
Parkland Corp. (Canada), | | | | | | | | | | | | |
Gtd. Notes, 144A | | 4.500 | | 10/01/29 | | | 41,675 | | | | 39,242,847 | |
Gtd. Notes, 144A | | 4.625 | | 05/01/30 | | | 28,475 | | | | 26,659,719 | |
Sr. Unsec’d. Notes, 144A | | 6.625 | | 08/15/32 | | | 8,370 | | | | 8,434,867 | |
Permian Resources Operating LLC, | | | | | | | | | | | | |
Gtd. Notes, 144A | | 6.250 | | 02/01/33 | | | 12,400 | | | | 12,714,531 | |
Gtd. Notes, 144A | | 7.000 | | 01/15/32 | | | 21,025 | | | | 22,034,556 | |
Gtd. Notes, 144A | | 8.000 | | 04/15/27 | | | 9,400 | | | | 9,720,128 | |
Precision Drilling Corp. (Canada), | | | | | | | | | | | | |
Gtd. Notes, 144A | | 6.875 | | 01/15/29 | | | 8,275 | | | | 8,380,258 | |
Gtd. Notes, 144A | | 7.125 | | 01/15/26 | | | 11,046 | | | | 11,032,192 | |
Range Resources Corp., | | | | | | | | | | | | |
Gtd. Notes | | 4.875 | | 05/15/25 | | | 19,172 | | | | 19,085,445 | |
Gtd. Notes, 144A | | 4.750 | | 02/15/30 | | | 3,875 | | | | 3,721,373 | |
SM Energy Co., | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | 6.750 | | 08/01/29 | | | 11,640 | | | | 11,832,942 | |
Sr. Unsec’d. Notes, 144A | | 7.000 | | 08/01/32 | | | 8,055 | | | | 8,263,133 | |
Southwestern Energy Co., | | | | | | | | | | | | |
Gtd. Notes | | 4.750 | | 02/01/32 | | | 36,250 | | | | 34,369,330 | |
Gtd. Notes | | 5.375 | | 02/01/29 | | | 15,208 | | | | 15,015,720 | |
Gtd. Notes | | 5.375 | | 03/15/30 | | | 63,466 | | | | 62,943,686 | |
Sunoco LP, | | | | | | | | | | | | |
Gtd. Notes, 144A | | 7.000 | | 05/01/29 | | | 12,740 | | | | 13,278,072 | |
Sunoco LP/Sunoco Finance Corp., | | | | | | | | | | | | |
Gtd. Notes | | 4.500 | | 05/15/29 | | | 23,108 | | | | 22,199,106 | |
Gtd. Notes | | 4.500 | | 04/30/30 | | | 29,800 | | | | 28,365,830 | |
Gtd. Notes | | 5.875 | | 03/15/28 | | | 6,286 | | | | 6,296,157 | |
Transocean, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 8.000 | | 02/01/27 | | | 1,172 | | | | 1,167,605 | |
Gtd. Notes, 144A | | 8.250 | | 05/15/29 | | | 29,250 | | | | 29,542,500 | |
Gtd. Notes, 144A | | 8.500 | | 05/15/31 | | | 2,430 | | | | 2,466,815 | |
See Notes to Financial Statements.
64
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Oil & Gas (cont’d.) | |
| | | | |
Valaris Ltd., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 8.375% | | | | 04/30/30 | | | | 11,475 | | | $ | 11,969,458 | |
Vital Energy, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 9.750 | | | | 10/15/30 | | | | 7,200 | | | | 7,903,708 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 1,184,114,708 | |
| | | | |
Packaging & Containers 1.8% | | | | | | | | | | | | | | | | |
| | | | |
ARD Finance SA (Luxembourg), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, Cash coupon 6.500% or PIK 7.250% | | | 6.500 | | | | 06/30/27 | | | | 41,431 | | | | 9,529,059 | |
Ardagh Metal Packaging Finance USA LLC/Ardagh Metal Packaging Finance PLC,
Sr. Unsec’d. Notes, 144A | | | 4.000 | | | | 09/01/29 | | | | 4,615 | | | | 3,963,131 | |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 2.125 | | | | 08/15/26 | | | EUR | 7,575 | | | | 6,915,595 | |
Sr. Sec’d. Notes | | | 2.125 | | | | 08/15/26 | | | EUR | 400 | | | | 365,916 | |
Sr. Sec’d. Notes, 144A | | | 4.125 | | | | 08/15/26 | | | | 16,763 | | | | 14,461,440 | |
Graham Packaging Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.125 | | | | 08/15/28 | | | | 20,905 | | | | 20,647,671 | |
Intelligent Packaging Holdco Issuer LP (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, Cash coupon 9.000% or PIK 9.750% | | | 9.000 | | | | 01/15/26 | | | | 18,475 | | | | 17,911,143 | |
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.000 | | | | 09/15/28 | | | | 32,661 | | | | 32,048,607 | |
Iris Holding, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 10.000 | | | | 12/15/28 | | | | 32,118 | | | | 27,485,721 | |
LABL, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.875 | | | | 11/01/28 | | | | 18,740 | | | | 17,366,585 | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 07/15/26 | | | | 3,275 | | | | 3,258,724 | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 11/01/28 | | | | 7,750 | | | | 7,941,511 | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 11/01/29 | | | | 21,277 | | | | 19,025,973 | |
Sr. Unsec’d. Notes, 144A | | | 10.500 | | | | 07/15/27 | | | | 33,494 | | | | 33,080,216 | |
Mauser Packaging Solutions Holding Co., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.875 | | | | 04/15/27 | | | | 25,915 | | | | 26,800,660 | |
OI European Group BV, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 02/15/30 | | | | 10,400 | | | | 9,770,696 | |
See Notes to Financial Statements.
PGIM High Yield Fund 65
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Packaging & Containers (cont’d.) | |
| | | | |
Owens-Brockway Glass Container, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.625% | | | | 05/13/27 | | | | 980 | | | $ | 982,506 | |
Gtd. Notes, 144A | | | 7.250 | | | | 05/15/31 | | | | 9,800 | | | | 9,924,758 | |
Pactiv Evergreen Group Issuer LLC/Pactiv Evergreen Group Issuer, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 10/15/28 | | | | 22,350 | | | | 21,275,464 | |
Trident TPI Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 12.750 | | | | 12/31/28 | | | | 50,113 | | | | 54,980,686 | |
TriMas Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 04/15/29 | | | | 6,675 | | | | 6,211,661 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 343,947,723 | |
| | | | |
Pharmaceuticals 2.5% | | | | | | | | | | | | | | | | |
| | | | |
AdaptHealth LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 08/01/29 | | | | 58,426 | | | | 53,333,028 | |
Gtd. Notes, 144A | | | 5.125 | | | | 03/01/30 | | | | 32,882 | | | | 30,056,088 | |
Gtd. Notes, 144A | | | 6.125 | | | | 08/01/28 | | | | 24,577 | | | | 24,369,429 | |
Bausch Health Americas, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $1,194,008; purchased 03/20/20)(f) | | | 8.500 | | | | 01/31/27 | | | | 1,323 | | | | 979,823 | |
Bausch Health Cos., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $38,072,760; purchased 12/17/19 -
08/26/22)(f) | | | 5.000 | | | | 01/30/28 | | | | 42,149 | | | | 23,181,950 | |
Gtd. Notes, 144A (original cost $59,322,423; purchased 11/18/20 -
10/14/22)(f) | | | 5.000 | | | | 02/15/29 | | | | 73,671 | | | | 37,572,210 | |
Gtd. Notes, 144A (original cost $99,404,475; purchased 12/17/19 -
04/13/23)(f) | | | 5.250 | | | | 01/30/30 | | | | 116,023 | | | | 55,691,040 | |
Gtd. Notes, 144A (original cost $21,325,458; purchased 11/18/20 -
02/04/22)(f) | | | 5.250 | | | | 02/15/31 | | | | 23,067 | | | | 11,072,160 | |
Gtd. Notes, 144A (original cost $183,554,919; purchased 05/11/20 -
10/04/22)(f) | | | 6.250 | | | | 02/15/29 | | | | 195,770 | | | | 98,863,850 | |
Gtd. Notes, 144A (original cost $11,180,401; purchased 05/09/19 -
10/08/19)(f) | | | 7.000 | | | | 01/15/28 | | | | 11,113 | | | | 6,389,975 | |
Gtd. Notes, 144A (original cost $2,246,125; purchased 08/26/22)(f) | | | 9.000 | | | | 12/15/25 | | | | 3,775 | | | | 3,406,938 | |
Sr. Sec’d. Notes, 144A (original cost $4,473,330; purchased 05/24/21 -
11/23/21)(f) | | | 4.875 | | | | 06/01/28 | | | | 4,474 | | | | 3,365,119 | |
Jazz Securities DAC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 01/15/29 | | | | 8,597 | | | | 8,188,643 | |
See Notes to Financial Statements.
66
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Pharmaceuticals (cont’d.) | |
| | | | |
Organon & Co./Organon Foreign Debt Co-Issuer BV, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.125% | | | | 04/30/28 | | | | 6,961 | | | $ | 6,651,779 | |
Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 04/30/31 | | | | 115,256 | | | | 107,835,603 | |
P&L Development LLC/PLD Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.750 | | | | 11/15/25 | | | | 12,202 | | | | 11,500,162 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 482,457,797 | |
| | | | |
Pipelines 3.9% | | | | | | | | | | | | | | | | |
| | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.375 | | | | 06/15/29 | | | | 26,170 | | | | 25,865,360 | |
Gtd. Notes, 144A | | | 5.750 | | | | 03/01/27 | | | | 29,490 | | | | 29,461,194 | |
Gtd. Notes, 144A | | | 5.750 | | | | 01/15/28 | | | | 34,678 | | | | 34,724,339 | |
Gtd. Notes, 144A | | | 6.625 | | | | 02/01/32 | | | | 8,430 | | | | 8,694,851 | |
Blue Racer Midstream LLC/Blue Racer Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.000 | | | | 07/15/29 | | | | 4,290 | | | | 4,463,670 | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 07/15/32 | | | | 7,890 | | | | 8,290,279 | |
Cheniere Energy Partners LP, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.000 | | | | 03/01/31 | | | | 28,525 | | | | 26,918,551 | |
Gtd. Notes | | | 4.500 | | | | 10/01/29 | | | | 1,322 | | | | 1,293,275 | |
Cheniere Energy, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.625 | | | | 10/15/28 | | | | 46,864 | | | | 46,376,955 | |
DCP Midstream Operating LP, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.450 | | | | 11/03/36 | | | | 3,455 | | | | 3,736,251 | |
Energy Transfer LP, | | | | | | | | | | | | | | | | |
Jr. Sub. Notes, Series G | | | 7.125(ff) | | | | 05/15/30(oo) | | | | 17,145 | | | | 17,214,093 | |
EQM Midstream Partners LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.500 | | | | 07/15/28 | | | | 685 | | | | 690,511 | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 07/01/25 | | | | 3,242 | | | | 3,247,133 | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 07/01/27 | | | | 23,472 | | | | 24,077,673 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 06/01/27 | | | | 7,125 | | | | 7,350,224 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 06/01/30 | | | | 15,301 | | | | 16,703,212 | |
Global Partners LP/GLP Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.875 | | | | 01/15/29 | | | | 15,486 | | | | 15,600,885 | |
Gtd. Notes | | | 7.000 | | | | 08/01/27 | | | | 18,055 | | | | 18,223,010 | |
Gtd. Notes, 144A | | | 8.250 | | | | 01/15/32 | | | | 13,750 | | | | 14,308,536 | |
Howard Midstream Energy Partners LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.375 | | | | 07/15/32 | | | | 6,835 | | | | 7,072,152 | |
Sr. Unsec’d. Notes, 144A | | | 8.875 | | | | 07/15/28 | | | | 7,250 | | | | 7,735,211 | |
See Notes to Financial Statements.
PGIM High Yield Fund 67
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Pipelines (cont’d.) | |
| | | | |
Northriver Midstream Finance LP (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750% | | | | 07/15/32 | | | | 7,675 | | | $ | 7,908,397 | |
Rockies Express Pipeline LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.600 | | | | 05/15/25 | | | | 1,475 | | | | 1,451,243 | |
Sr. Unsec’d. Notes, 144A | | | 4.800 | | | | 05/15/30 | | | | 19,045 | | | | 17,684,616 | |
Sr. Unsec’d. Notes, 144A | | | 4.950 | | | | 07/15/29 | | | | 148 | | | | 141,761 | |
Sr. Unsec’d. Notes, 144A | | | 6.875 | | | | 04/15/40 | | | | 55,293 | | | | 53,690,063 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 07/15/38 | | | | 1,611 | | | | 1,682,583 | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 01/15/28 | | | | 46,567 | | | | 44,944,211 | |
Gtd. Notes, 144A | | | 6.000 | | | | 03/01/27 | | | | 12,884 | | | | 12,857,996 | |
Gtd. Notes, 144A | | | 6.000 | | | | 12/31/30 | | | | 10,702 | | | | 10,211,948 | |
Gtd. Notes, 144A | | | 6.000 | | | | 09/01/31 | | | | 8,663 | | | | 8,212,852 | |
Sr. Unsec’d. Notes, 144A | | | 7.375 | | | | 02/15/29 | | | | 13,415 | | | | 13,694,753 | |
Venture Global Calcasieu Pass LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 08/15/29 | | | | 19,005 | | | | 17,969,328 | |
Sr. Sec’d. Notes, 144A | | | 4.125 | | | | 08/15/31 | | | | 14,185 | | | | 13,156,900 | |
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 01/15/30 | | | | 9,675 | | | | 10,066,068 | |
Venture Global LNG, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 01/15/30 | | | | 19,480 | | | | 19,938,788 | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 02/01/29 | | | | 74,625 | | | | 84,096,498 | |
Sr. Sec’d. Notes, 144A | | | 9.875 | | | | 02/01/32 | | | | 83,525 | | | | 92,958,811 | |
Western Midstream Operating LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.050 | | | | 02/01/30 | | | | 4,719 | | | | 4,510,569 | |
Sr. Unsec’d. Notes | | | 4.500 | | | | 03/01/28 | | | | 325 | | | | 320,147 | |
Sr. Unsec’d. Notes | | | 5.450 | | | | 04/01/44 | | | | 578 | | | | 535,766 | |
Sr. Unsec’d. Notes | | | 5.500 | | | | 08/15/48 | | | | 6,380 | | | | 5,812,110 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 743,892,773 | |
| | | | |
Real Estate 1.1% | | | | | | | | | | | | | | | | |
| | | | |
Five Point Operating Co. LP/Five Point Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 10.500(cc) | | | | 01/15/28 | | | | 39,710 | | | | 40,797,009 | |
Greystar Real Estate Partners LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.750 | | | | 09/01/30 | | | | 8,175 | | | | 8,720,067 | |
Howard Hughes Corp. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 02/01/29 | | | | 43,625 | | | | 40,172,325 | |
Gtd. Notes, 144A | | | 4.375 | | | | 02/01/31 | | | | 20,677 | | | | 18,608,284 | |
Gtd. Notes, 144A | | | 5.375 | | | | 08/01/28 | | | | 40,335 | | | | 39,259,505 | |
See Notes to Financial Statements.
68
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Real Estate (cont’d.) | |
| | | | |
Hunt Cos., Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.250% | | | | 04/15/29 | | | | 65,396 | | | $ | 61,674,945 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 209,232,135 | |
| | | | |
Real Estate Investment Trusts (REITs) 1.5% | | | | | | | | | | | | | | | | |
| | | | |
Diversified Healthcare Trust, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375 | | | | 03/01/31 | | | | 50,779 | | | | 38,821,213 | |
Gtd. Notes | | | 9.750 | | | | 06/15/25 | | | | 1,056 | | | | 1,057,459 | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 02/15/28 | | | | 44,279 | | | | 38,916,067 | |
MPT Operating Partnership LP/MPT Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 0.993 | | | | 10/15/26 | | | EUR | 2,225 | | | | 1,981,189 | |
Gtd. Notes | | | 3.500 | | | | 03/15/31 | | | | 61,861 | | | | 42,232,912 | |
Gtd. Notes | | | 4.625 | | | | 08/01/29 | | | | 7,075 | | | | 5,430,473 | |
Gtd. Notes | | | 5.000 | | | | 10/15/27 | | | | 500 | | | | 423,750 | |
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer,
Gtd. Notes, 144A | | | 7.000 | | | | 02/01/30 | | | | 12,075 | | | | 12,391,151 | |
RHP Hotel Properties LP/RHP Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.750 | | | | 10/15/27 | | | | 3,310 | | | | 3,241,544 | |
Gtd. Notes, 144A | | | 4.500 | | | | 02/15/29 | | | | 7,700 | | | | 7,400,650 | |
Gtd. Notes, 144A | | | 6.500 | | | | 04/01/32 | | | | 24,460 | | | | 25,177,688 | |
SBA Communications Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.125 | | | | 02/01/29 | | | | 13,545 | | | | 12,465,775 | |
Starwood Property Trust, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.375 | | | | 01/15/27 | | | | 3,000 | | | | 2,915,054 | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 04/01/29 | | | | 17,820 | | | | 18,563,253 | |
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 10.500 | | | | 02/15/28 | | | | 17,775 | | | | 18,262,285 | |
VICI Properties LP/VICI Note Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.500 | | | | 09/01/26 | | | | 4,950 | | | | 4,903,263 | |
Gtd. Notes, 144A | | | 4.500 | | | | 01/15/28 | | | | 11,899 | | | | 11,676,035 | |
Gtd. Notes, 144A | | | 4.625 | | | | 12/01/29 | | | | 36,481 | | | | 35,467,556 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 281,327,317 | |
| | | | |
Retail 5.0% | | | | | | | | | | | | | | | | |
| | | | |
1011778 BC ULC/New Red Finance, Inc. (Canada),
Sec’d. Notes, 144A | | | 4.000 | | | | 10/15/30 | | | | 74,012 | | | | 67,813,495 | |
See Notes to Financial Statements.
PGIM High Yield Fund 69
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Retail (cont’d.) | |
| | | | |
1011778 BC ULC/New Red Finance, Inc. (Canada), (cont’d.) | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 3.875% | | 01/15/28 | | | 8,583 | | | $ | 8,196,765 | |
Arko Corp., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 5.125 | | 11/15/29 | | | 31,157 | | | | 27,708,529 | |
BCPE Ulysses Intermediate, Inc., | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, Cash coupon 7.750% or PIK 8.500% | | 7.750 | | 04/01/27 | | | 9,975 | | | | 9,669,530 | |
Brinker International, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 5.000 | | 10/01/24 | | | 1,411 | | | | 1,409,867 | |
Gtd. Notes, 144A | | 8.250 | | 07/15/30 | | | 37,105 | | | | 39,423,180 | |
Carvana Co., | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, Cash coupon 9.000% or PIK 12.000% | | 12.000 | | 12/01/28 | | | 33,803 | | | | 35,074,858 | |
Sr. Sec’d. Notes, 144A, Cash coupon 11.000% or PIK 13.000% | | 13.000 | | 06/01/30 | | | 56,766 | | | | 60,545,931 | |
Sr. Sec’d. Notes, 144A, PIK 14.000% | | 14.000 | | 06/01/31 | | | 33,261 | | | | 37,934,629 | |
Cougar JV Subsidiary LLC, | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | 8.000 | | 05/15/32 | | | 11,770 | | | | 12,418,421 | |
eG Global Finance PLC (United Kingdom), | | | | | | | | | | | | |
Sr. Sec’d. Notes | | 11.000 | | 11/30/28 | | EUR | 7,400 | | | | 8,692,312 | |
Sr. Sec’d. Notes, 144A | | 12.000 | | 11/30/28 | | | 20,319 | | | | 22,147,669 | |
Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 6.750 | | 01/15/30 | | | 110,591 | | | | 99,025,853 | |
Sr. Sec’d. Notes, 144A | | 4.625 | | 01/15/29 | | | 11,434 | | | | 10,705,282 | |
Foundation Building Materials, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 6.000 | | 03/01/29 | | | 40,514 | | | | 36,418,999 | |
Gap, Inc. (The), | | | | | | | | | | | | |
Gtd. Notes, 144A | | 3.625 | | 10/01/29 | | | 11,535 | | | | 10,333,543 | |
Gtd. Notes, 144A | | 3.875 | | 10/01/31 | | | 38,932 | | | | 33,626,602 | |
LBM Acquisition LLC, | | | | | | | | | | | | |
Gtd. Notes, 144A | | 6.250 | | 01/15/29 | | | 43,270 | | | | 39,152,780 | |
LCM Investments Holdings II LLC, | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | 4.875 | | 05/01/29 | | | 69,595 | | | | 66,304,951 | |
Sr. Unsec’d. Notes, 144A | | 8.250 | | 08/01/31 | | | 12,910 | | | | 13,723,946 | |
Lithia Motors, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 4.375 | | 01/15/31 | | | 2,800 | | | | 2,580,223 | |
Sr. Unsec’d. Notes, 144A | | 3.875 | | 06/01/29 | | | 26,800 | | | | 24,877,624 | |
Park River Holdings, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 5.625 | | 02/01/29 | | | 69,002 | | | | 56,868,797 | |
See Notes to Financial Statements.
70
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Retail (cont’d.) | |
| | | | |
Park River Holdings, Inc., (cont’d.) | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.750% | | | | 08/01/29 | | | | 9,165 | | | $ | 7,716,705 | |
Patrick Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 05/01/29 | | | | 11,755 | | | | 11,040,000 | |
Gtd. Notes, 144A | | | 7.500 | | | | 10/15/27 | | | | 6,175 | | | | 6,193,708 | |
Sally Holdings LLC/Sally Capital, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.750 | | | | 03/01/32 | | | | 62,545 | | | | 63,820,229 | |
Suburban Propane Partners LP/Suburban Energy Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 03/01/27 | | | | 33,961 | | | | 33,800,259 | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 06/01/31 | | | | 38,547 | | | | 35,402,251 | |
Superior Plus LP/Superior General Partner, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.500 | | | | 03/15/29 | | | | 50,540 | | | | 47,186,671 | |
White Cap Buyer LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.875 | | | | 10/15/28 | | | | 27,085 | | | | 26,824,675 | |
White Cap Parent LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, Cash coupon 8.250% or PIK 9.000% | | | 8.250 | | | | 03/15/26 | | | | 7,875 | | | | 7,859,141 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 964,497,425 | |
| | | | |
Software 0.3% | | | | | | | | | | | | | | | | |
| | | | |
Camelot Finance SA, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.500 | | | | 11/01/26 | | | | 2,031 | | | | 1,984,476 | |
Clarivate Science Holdings Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.875 | | | | 07/01/29 | | | | 36,756 | | | | 35,395,724 | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 07/01/28 | | | | 750 | | | | 714,782 | |
SS&C Technologies, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 09/30/27 | | | | 15,200 | | | | 15,191,801 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 53,286,783 | |
| | | | |
Telecommunications 5.1% | | | | | | | | | | | | | | | | |
| | | | |
Altice Financing SA (Luxembourg), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 2.250 | | | | 01/15/25 | | | EUR | 9,325 | | | | 10,112,006 | |
Sr. Sec’d. Notes, 144A | | | 2.250 | | | | 01/15/25 | | | EUR | 33,935 | | | | 36,799,026 | |
Sr. Sec’d. Notes, 144A | | | 5.000 | | | | 01/15/28 | | | | 37,200 | | | | 29,853,000 | |
Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 08/15/29 | | | | 52,275 | | | | 40,121,062 | |
Sr. Sec’d. Notes, 144A | | | 9.625 | | | | 07/15/27 | | | | 23,808 | | | | 22,677,120 | |
See Notes to Financial Statements.
PGIM High Yield Fund 71
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | Maturity Date | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Telecommunications (cont’d.) | |
| | | | |
Connect Finco Sarl/Connect US Finco LLC (United Kingdom), | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 6.750% | | 10/01/26 | | | 5,819 | | | $ | 5,750,976 | |
Digicel Group Holdings Ltd. (Jamaica), | | | | | | | | | | | | |
Sr. Sec’d. Notes, Series 1B14, 144A (original cost $910; purchased 11/14/23)^(f) | | 0.000 | | 12/31/30 | | | 9,103 | | | | 9 | |
Sr. Sec’d. Notes, Series 3A14, 144A (original cost $277,610; purchased 11/14/23 - 02/13/24)^(f) | | 0.000 | | 12/31/30 | | | 121 | | | | 58,324 | |
Sr. Sec’d. Notes, Series 3B14, 144A (original cost $1,490; purchased 11/14/23)^(f) | | 0.000 | | 12/31/30 | | | 14,902 | | | | 15 | |
Digicel Intermediate Holdings Ltd./Digicel International Finance Ltd./DIFL US (Jamaica), | | | | | | | | | | | | |
Sr. Sec’d. Notes, Cash coupon 9.000% and PIK 1.500% (original cost $73,545,752; purchased 01/29/24 - 05/15/24)(f) | | 10.500 | | 05/25/27 | | | 79,227 | | | | 78,806,480 | |
Digicel MidCo Ltd./DIFL US II LLC (Jamaica), | | | | | | | | | | | | |
Sr. Unsec’d. Notes, PIK 10.500% (original cost $56,292,168; purchased 01/30/24 - 05/15/24)(f) | | 10.500 | | 11/25/28 | | | 85,802 | | | | 69,842,483 | |
Frontier Communications Holdings LLC, | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 5.000 | | 05/01/28 | | | 55,212 | | | | 53,652,341 | |
Sr. Sec’d. Notes, 144A | | 5.875 | | 10/15/27 | | | 30,828 | | | | 30,710,802 | |
Iliad Holding SASU (France), | | | | | | | | | | | | |
Sr. Sec’d. Notes | | 5.625 | | 10/15/28 | | EUR | 2,600 | | | | 2,908,557 | |
Sr. Sec’d. Notes, 144A | | 6.500 | | 10/15/26 | | | 34,215 | | | | 34,345,017 | |
Sr. Sec’d. Notes, 144A | | 7.000 | | 10/15/28 | | | 25,205 | | | | 25,551,569 | |
Sr. Sec’d. Notes, 144A | | 8.500 | | 04/15/31 | | | 10,550 | | | | 11,156,625 | |
Intelsat Jackson Holdings SA (Luxembourg), | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | 6.500 | | 03/15/30 | | | 69,760 | | | | 66,908,211 | |
Level 3 Financing, Inc., | | | | | | | | | | | | |
Gtd. Notes, 144A | | 3.625 | | 01/15/29 | | | 14,975 | | | | 9,314,288 | |
Gtd. Notes, 144A | | 3.750 | | 07/15/29 | | | 17,348 | | | | 10,444,333 | |
Sec’d. Notes, 144A | | 3.875 | | 10/15/30 | | | 13,500 | | | | 9,221,168 | |
Sec’d. Notes, 144A | | 4.000 | | 04/15/31 | | | 17,864 | | | | 12,088,284 | |
Sec’d. Notes, 144A | | 4.500 | | 04/01/30 | | | 23,670 | | | | 17,532,933 | |
Sec’d. Notes, 144A | | 4.875 | | 06/15/29 | | | 15,148 | | | | 12,026,485 | |
Sr. Sec’d. Notes, 144A | | 10.500 | | 04/15/29 | | | 8,925 | | | | 9,604,652 | |
Sr. Sec’d. Notes, 144A | | 10.500 | | 05/15/30 | | | 24,660 | | | | 26,514,782 | |
Sr. Sec’d. Notes, 144A | | 10.750 | | 12/15/30 | | | 30,219 | | | | 32,666,006 | |
Sr. Sec’d. Notes, 144A | | 11.000 | | 11/15/29 | | | 81,471 | | | | 89,447,589 | |
See Notes to Financial Statements.
72
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Telecommunications (cont’d.) | |
| | | | |
Sprint Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.875% | | | | 11/15/28 | | | | 11,526 | | | $ | 12,492,907 | |
Gtd. Notes | | | 8.750 | | | | 03/15/32 | | | | 33,753 | | | | 41,581,948 | |
Sprint LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.625 | | | | 02/15/25 | | | | 36,161 | | | | 36,293,408 | |
Gtd. Notes | | | 7.625 | | | | 03/01/26 | | | | 4,152 | | | | 4,282,339 | |
Viasat, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 09/15/25 | | | | 99,004 | | | | 98,155,157 | |
Vmed O2 UK Financing I PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.750 | | | | 07/15/31 | | | | 2,000 | | | | 1,750,000 | |
Sr. Sec’d. Notes, 144A | | | 7.750 | | | | 04/15/32 | | | | 3,500 | | | | 3,565,625 | |
Zegona Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.625 | | | | 07/15/29 | | | | 38,150 | | | | 39,810,669 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 986,046,196 | |
| | | | |
Transportation 0.5% | | | | | | | | | | | | | | | | |
| | | | |
GN Bondco LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 10/15/31 | | | | 52,594 | | | | 53,570,982 | |
RXO, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.500 | | | | 11/15/27 | | | | 20,625 | | | | 21,359,441 | |
XPO, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.125 | | | | 06/01/31 | | | | 4,825 | | | | 5,037,732 | |
Gtd. Notes, 144A | | | 7.125 | | | | 02/01/32 | | | | 11,700 | | | | 12,273,820 | |
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 06/01/28 | | | | 6,875 | | | | 7,027,430 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 99,269,405 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL CORPORATE BONDS
(cost $16,671,814,755) | | | | | | | | | | | | | | | 15,816,954,306 | |
| | | | | | | | | | | | | | | | |
| | | | |
FLOATING RATE AND OTHER LOANS 4.8% | | | | | | | | | | | | | | | | |
| | | | |
Advertising 0.0% | | | | | | | | | | | | | | | | |
| | | | |
CMG Media Corp.,
2021 Refinancing Term B Loan, 3 Month SOFR + 3.600% | | | 8.935(c) | | | | 12/17/26 | | | | 2,230 | | | | 1,919,194 | |
See Notes to Financial Statements.
PGIM High Yield Fund 73
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
FLOATING RATE AND OTHER LOANS (Continued) | |
|
Auto Parts & Equipment 0.3% | |
| | | | |
First Brands Group LLC, | | | | | | | | | | | | | | | | |
Second Lien 2021 Term Loan, 3 Month SOFR + 8.762%^ | | | 14.014%(c) | | | | 03/30/28 | | | | 30,665 | | | $ | 28,978,425 | |
Tenneco, Inc., | | | | | | | | | | | | | | | | |
Term A Loan, 1 Month SOFR + 4.850% | | | 10.082(c) | | | | 11/17/28 | | | | 25,455 | | | | 24,263,981 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 53,242,406 | |
| | | | |
Chemicals 0.5% | | | | | | | | | | | | | | | | |
| | | | |
Consolidated Energy Finance SA (Switzerland), 2024 Incremental Term Loan, 3 Month SOFR + 4.500% | | | 9.557(c) | | | | 11/15/30 | | | | 40,808 | | | | 37,849,165 | |
Iris Holdings Ltd., | | | | | | | | | | | | | | | | |
Initial Term Loan, 3 Month SOFR + 4.850% | | | 10.102(c) | | | | 06/28/28 | | | | 16,438 | | | | 15,475,011 | |
Venator Finance Sarl, | | | | | | | | | | | | | | | | |
Initial First-Out Term Loan, 3 Month SOFR + 2.000%^ | | | 15.286(c) | | | | 12/31/25 | | | | 19,710 | | | | 19,710,384 | |
Term Loan, 3 Month SOFR + 10.000%^ | | | 15.299(c) | | | | 10/12/28 | | | | 28,081 | | | | 26,677,135 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 99,711,695 | |
| | | | |
Commercial Services 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Fly Funding II Sarl (Luxembourg), | | | | | | | | | | | | | | | | |
Term B Loan, 3 Month LIBOR + 1.750% | | | 7.120(c) | | | | 08/11/25 | | | | 1,189 | | | | 1,153,672 | |
| | | | |
Computers 0.3% | | | | | | | | | | | | | | | | |
| | | | |
McAfee Corp., | | | | | | | | | | | | | | | | |
Tranche B-1 Term Loan, 1 Month SOFR + 3.250% | | | 8.592(c) | | | | 03/01/29 | | | | 16,141 | | | | 16,083,859 | |
NCR Atleos Corp., | | | | | | | | | | | | | | | | |
Term A Loan, 1 Month SOFR + 3.350%^ | | | 8.599(c) | | | | 09/27/28 | | | | 8,754 | | | | 8,765,402 | |
NCR Atleos LLC, | | | | | | | | | | | | | | | | |
Term B Loan, 3 Month SOFR + 4.850% | | | 10.099(c) | | | | 03/27/29 | | | | 34,879 | | | | 35,140,718 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 59,989,979 | |
See Notes to Financial Statements.
74
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
FLOATING RATE AND OTHER LOANS (Continued) | |
|
Cosmetics/Personal Care 0.2% | |
| | | | |
Rainbow Midco Ltd. (United Kingdom),
Note Purchase Facility^ | | | 11.172%(c) | | | | 02/22/30 | | | | 13,741 | | | $ | 15,189,346 | |
Rainbow UK Bidco Ltd. (Luxembourg),
Facility B3 Loan, SONIA + 4.750% | | | 9.701(c) | | | | 02/23/29 | | | GBP | 11,625 | | | | 15,143,067 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 30,332,413 | |
| | | | |
Electric 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Heritage Power LLC, | | | | | | | | | | | | | | | | |
Term Loan, 3 Month SOFR + 5.500%^ | | | 10.835(c) | | | | 07/20/28 | | | | 3,881 | | | | 3,764,573 | |
| | | | |
Electronics 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Likewize Corp., | | | | | | | | | | | | | | | | |
Closing Date Term Loan, 1 Month SOFR + 5.750% | | | 11.026(c) | | | | 09/30/29 | | | | 16,156 | | | | 15,671,562 | |
| | | | |
Holding Companies-Diversified 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Clue OpCo LLC, | | | | | | | | | | | | | | | | |
Term B Loan, 3 Month SOFR + 4.500% | | | 9.752(c) | | | | 12/19/30 | | | | 7,642 | | | | 7,504,169 | |
| | | | |
Household Products/Wares 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Kronos Acquisition Holdings, Inc. (Canada), | | | | | | | | | | | | | | | | |
Initial Loan 2024, 3 Month SOFR + 4.000% | | | 9.314(c) | | | | 07/08/31 | | | | 3,900 | | | | 3,846,375 | |
| | | | |
Housewares 0.1% | | | | | | | | | | | | | | | | |
| | | | |
SWF Holdings I Corp., | | | | | | | | | | | | | | | | |
Initial Term Loan, 1 Month SOFR + 4.114% | | | 9.361(c) | | | | 10/06/28 | | | | 28,538 | | | | 21,421,421 | |
| | | | |
Insurance 0.5% | | | | | | | | | | | | | | | | |
| | | | |
Acrisure LLC,
2024 Refinancing Term Loan, 3 Month SOFR + 3.250% | | | 8.594(c) | | | | 11/06/30 | | | | 43,975 | | | | 43,590,232 | |
Asurion LLC, | | | | | | | | | | | | | | | | |
New B-4 Term Loan, 1 Month SOFR + 5.364% | | | 10.611(c) | | | | 01/20/29 | | | | 29,145 | | | | 26,877,169 | |
New B-8 Term Loan, 1 Month SOFR + 3.364% | | | 8.611(c) | | | | 12/23/26 | | | | 22,251 | | | | 22,139,907 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 92,607,308 | |
| | | | |
Internet 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Cablevision Lightpath LLC, | | | | | | | | | | | | | | | | |
Initial Term Loan, 1 Month SOFR + 3.364% | | | 8.701(c) | | | | 11/30/27 | | | | 6,795 | | | | 6,738,056 | |
See Notes to Financial Statements.
PGIM High Yield Fund 75
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
FLOATING RATE AND OTHER LOANS (Continued) | |
|
Investment Companies 0.2% | |
| | | | |
Hurricane CleanCo Ltd. (United Kingdom),
Facility A, 3 Month LIBOR + 6.250% (Cap N/A, Floor 0.000% )^ | | | 12.500%(c) | | | | 10/31/29 | | | | 30,132 | | | $ | 39,572,940 | |
| | | | |
Media 1.0% | | | | | | | | | | | | | | | | |
| | | | |
Altice Financing SA (Luxembourg),
2022 Dollar Loan, 3 Month SOFR + 5.000% | | | 10.301(c) | | | | 10/31/27 | | | | 37,590 | | | | 33,267,475 | |
CSC Holdings LLC,
2022 Refinancing Term Loan, 1 Month SOFR + 4.500%
| | | 9.837(c) | | | | 01/18/28 | | | | 64,295 | | | | 61,280,992 | |
Diamond Sports Group LLC, | | | | | | | | | | | | | | | | |
Dip Term Loan | | | 10.000 | | | | 12/02/24 | | | | 35,569 | | | | 43,571,870 | |
First Lien Term Loan, 1 Month SOFR + 10.100% | | | 15.442(c) | | | | 05/25/26 | | | | 6,245 | | | | 5,751,378 | |
Second Lien Term Loan, 1 Month SOFR + 3.400% | | | 8.175(c) | | | | 08/24/26(d) | | | | 139,499 | | | | 2,237,846 | |
Gray Television, Inc., | | | | | | | | | | | | | | | | |
Term F Loan, 1 Month SOFR + 5.250% | | | 10.592(c) | | | | 06/04/29 | | | | 15,989 | | | | 15,252,371 | |
Radiate Holdco LLC, | | | | | | | | | | | | | | | | |
Amendment No. 6 Term Loan, 1 Month SOFR + 3.364% | | | 8.611(c) | | | | 09/25/26 | | | | 27,231 | | | | 21,785,176 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 183,147,108 | |
| | | | |
Metal Fabricate/Hardware 0.4% | | | | | | | | | | | | | | | | |
| | | | |
Doncasters US Finance LLC (United Kingdom), | | | | | | | | | | | | | | | | |
Initial Term Loan, 3 Month SOFR + 6.500% | | | 11.835(c) | | | | 04/23/30 | | | | 68,189 | | | | 67,507,209 | |
| | | | |
Oil & Gas Services 0.0% | | | | | | | | | | | | | | | | |
| | | | |
US Silica Co., | | | | | | | | | | | | | | | | |
Term B Loan, 1 Month SOFR + 4.500% | | | 9.747(c) | | | | 07/31/31 | | | | 6,485 | | | | 6,397,855 | |
| | | | |
Retail 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Great Outdoors Group LLC, | | | | | | | | | | | | | | | | |
Term B-2 Loan, 1 Month SOFR + 3.864% | | | 9.111(c) | | | | 03/06/28 | | | | 11,592 | | | | 11,582,660 | |
| | | | |
Software 0.4% | | | | | | | | | | | | | | | | |
| | | | |
athenahealth, Inc., | | | | | | | | | | | | | | | | |
Initial Term Loan, 1 Month SOFR + 3.250% | | | 8.497(c) | | | | 02/15/29 | | | | 7,135 | | | | 7,074,322 | |
See Notes to Financial Statements.
76
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
FLOATING RATE AND OTHER LOANS (Continued) | |
|
Software (cont’d.) | |
| | | | |
Cotiviti, Inc., | | | | | | | | | | | | | | | | |
Initial Floating Rate Term Loan, 1 Month SOFR + 3.250% | | | 8.592%(c) | | | | 05/01/31 | | | | 47,171 | | | $ | 47,126,441 | |
Skillsoft Finance II, Inc., | | | | | | | | | | | | | | | | |
Initial Term Loan, 1 Month SOFR + 5.364% | | | 10.642(c) | | | | 07/14/28 | | | | 41,180 | | | | 32,377,953 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 86,578,716 | |
| | | | |
Telecommunications 0.7% | | | | | | | | | | | | | | | | |
| | | | |
Connect Finco Sarl (United Kingdom), | | | | | | | | | | | | | | | | |
Amendment No. 4 Term Loan, 1 Month SOFR + 4.500% | | | 9.747(c) | | | | 09/27/29 | | | | 48,193 | | | | 46,807,330 | |
Digicel International Finance Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
Initial Term Loan, 3 Month SOFR + 6.750% | | | 12.002(c) | | | | 05/25/27 | | | | 8,457 | | | | 8,295,188 | |
Level 3 Financing, Inc., | | | | | | | | | | | | | | | | |
Term B-1, 1 Month SOFR + 6.560% | | | 11.838(c) | | | | 04/15/29 | | | | 21,898 | | | | 22,012,108 | |
Term B-2, 1 Month SOFR + 6.560% | | | 11.838(c) | | | | 04/15/30 | | | | 16,425 | | | | 16,490,922 | |
MLN US HoldCo LLC,
3L Term B Loan, 3 Month SOFR + 9.250% | | | 14.629(c) | | | | 10/18/27 | | | | 70 | | | | 3,480 | |
Initial Term Loan, 3 Month SOFR + 6.540% | | | 11.819(c) | | | | 10/18/27 | | | | 1,038 | | | | 587,544 | |
Initial Term Loan (Second Out (First Lien Roll-Up)), 3 | | | | | | | | | | | | | | | | |
Month SOFR + 6.800% | | | 12.079(c) | | | | 10/18/27 | | | | 2,343 | | | | 187,460 | |
Xplornet Communications, Inc. (Canada), | | | | | | | | | | | | | | | | |
First Lien Refinancing Term Loan | | | — (p) | | | | 10/02/28 | (d) | | | 60,377 | | | | 10,603,689 | |
Initial Term Loan - Second Lien | | | — (p) | | | | 10/01/29 | (d) | | | 25,920 | | | | 453,600 | |
Zegona Holdco Ltd., | | | | | | | | | | | | | | | | |
Term Loan | | | — (p) | | | | 07/31/29 | | | | 26,038 | | | | 25,826,441 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 131,267,762 | |
| | | | |
Textiles 0.0% | | | | | | | | | | | | | | | | |
| | | | |
ASP Unifrax Holdings, Inc., | | | | | | | | | | | | | | | | |
USD Term Loan (First Lien), 3 Month SOFR + 3.900% | | | 9.235(c) | | | | 12/12/25 | | | | 4,480 | | | | 4,390,545 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL FLOATING RATE AND OTHER LOANS
(cost $1,038,849,495) | | | | | | | | | | | | | | | 928,347,618 | |
| | | | | | | | | | | | | | | | |
| | | | |
U.S. TREASURY OBLIGATIONS 4.9% | | | | | | | | | | | | | | | | |
U.S. Treasury Notes(k) | | | 2.500 | | | | 03/31/27 | | | | 60,475 | | | | 58,542,635 | |
U.S. Treasury Notes(k) | | | 2.625 | | | | 05/31/27 | | | | 100,565 | | | | 97,461,628 | |
See Notes to Financial Statements.
PGIM High Yield Fund 77
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
U.S. TREASURY OBLIGATIONS (Continued) | | | | | | | | | | | | | | | | |
U.S. Treasury Notes(h)(k) | | | 3.875% | | | | 11/30/27 | | | | 301,400 | | | $ | 302,153,500 | |
U.S. Treasury Notes | | | 4.250 | | | | 12/31/25 | | | | 150,000 | | | | 150,082,032 | |
U.S. Treasury Notes | | | 4.625 | | | | 06/30/26 | | | | 148,000 | | | | 149,624,531 | |
U.S. Treasury Notes(h) | | | 4.875 | | | | 05/31/26 | | | | 170,000 | | | | 172,397,265 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL U.S. TREASURY OBLIGATIONS
(cost $929,946,088) | | | | | | | | | | | | | | | 930,261,591 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | Shares | | | | |
AFFILIATED EXCHANGE-TRADED FUNDS 0.9% | | | | | | | | | | | | | | | | |
PGIM AAA CLO ETF | | | | | | | | | | | 240,000 | | | | 12,280,800 | |
PGIM Ultra Short Bond ETF | | | | | | | | | | | 3,275,000 | | | | 162,996,750 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL AFFILIATED EXCHANGE-TRADED FUNDS
(cost $174,903,170)(wa) | | | | | | | | | | | | | | | 175,277,550 | |
| | | | | | | | | | | | | | | | |
| | | | |
COMMON STOCKS 2.1% | | | | | | | | | | | | | | | | |
| | | | |
Chemicals 0.8% | | | | | | | | | | | | | | | | |
| | | | |
Cornerstone Chemical Co.*^ | | | | | | | | | | | 1,010,075 | | | | 19,191,425 | |
TPC Group, Inc.*^ | | | | | | | | | | | 2,374,523 | | | | 90,231,874 | |
Venator Materials PLC (original cost $134,882,407; purchased 12/21/23)*^(f) | | | | | | | | | | | 82,538 | | | | 49,522,800 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 158,946,099 | |
| | | | |
Electric Utilities 0.1% | | | | | | | | | | | | | | | | |
| | | | |
GenOn Energy Holdings, Inc. (Class A Stock)*^ | | | | | | | | | | | 195,390 | | | | 5,861,700 | |
Keycon Power Holdings LLC (original cost $22,679,273; purchased 01/17/19 - 10/23/20)*^(f) | | | | | | | | | | | 788,740 | | | | 79 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 5,861,779 | |
| | | | |
Gas Utilities 0.4% | | | | | | | | | | | | | | | | |
| | | | |
Ferrellgas Partners LP (Class B Stock)^ | | | | | | | | | | | 402,445 | | | | 82,465,247 | |
| | | | |
Hotels, Restaurants & Leisure 0.0% | | | | | | | | | | | | | | | | |
| | | | |
CEC Entertainment, Inc.* | | | | | | | | | | | 240,485 | | | | 3,577,214 | |
See Notes to Financial Statements.
78
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Oil, Gas & Consumable Fuels 0.2% | | | | | | | | |
| | |
Chesapeake Energy Corp. (original cost $0; purchased 02/09/21)(f) | | | 245,295 | | | $ | 18,272,025 | |
Heritage Power LLC*^ | | | 536,541 | | | | 22,534,722 | |
Heritage Power LLC*^ | | | 23,599 | | | | 991,158 | |
Heritage Power LLC*^ | | | 617,491 | | | | 308,745 | |
| | | | | | | | |
| | |
| | | | | | | 42,106,650 | |
| | |
Wireless Telecommunication Services 0.6% | | | | | | | | |
| | |
Digicel International Finance Ltd. (Jamaica) (original cost $9,493,627; purchased 01/29/24 - 01/30/24)*^(f) | | | 7,820,619 | | | | 19,473,341 | |
Intelsat Emergence SA (Luxembourg)* | | | 2,417,044 | | | | 90,437,327 | |
| | | | | | | | |
| | |
| | | | | | | 109,910,668 | |
| | | | | | | | |
| | |
TOTAL COMMON STOCKS
(cost $339,762,208) | | | | | | | 402,867,657 | |
| | | | | | | | |
| | |
PREFERRED STOCKS 0.7% | | | | | | | | |
| | |
Electronic Equipment, Instruments & Components 0.7% | | | | | | | | |
| | |
Ferrellgas Escrow LLC, 8.956%, Maturing 03/30/31^ | | | 134,092 | | | | 134,092,000 | |
| | |
Wireless Telecommunication Services 0.0% | | | | | | | | |
| | |
Digicel International Finance Ltd. (Jamaica) (original cost $5,013,801; purchased 01/26/24 - 01/29/24)*^(f) | | | 830,962 | | | | 8,892,623 | |
| | | | | | | | |
| | |
TOTAL PREFERRED STOCKS
(cost $135,069,418) | | | | | | | 142,984,623 | |
| | | | | | | | |
| | |
| | | Units | | | | |
| | |
WARRANTS* 0.0% | | | | | | | | |
| | |
Chemicals | | | | | | | | |
| | |
Ashland, Inc., expiring 03/31/29
(cost $0) | | | 230 | | | | — | |
| | | | | | | | |
| | |
TOTAL LONG-TERM INVESTMENTS
(cost $19,516,731,265) | | | | | | | 18,623,742,765 | |
| | | | | | | | |
See Notes to Financial Statements.
PGIM High Yield Fund 79
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
SHORT-TERM INVESTMENTS 2.1% | | | | | | | | |
| | |
AFFILIATED MUTUAL FUNDS | | | | | | | | |
PGIM Core Government Money Market Fund (7-day effective yield 5.562%)(wa) | | | 181,302,245 | | | $ | 181,302,245 | |
PGIM Core Short-Term Bond Fund(wa) | | | 24,010,022 | | | | 218,971,401 | |
| | | | | | | | |
| | |
TOTAL SHORT-TERM INVESTMENTS
(cost $400,031,379) | | | | | | | 400,273,646 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS 99.1%
(cost $19,916,762,644) | | | | | | | 19,024,016,411 | |
Other assets in excess of liabilities(z) 0.9% | | | | | | | 166,213,461 | |
| | | | | | | | |
| | |
NET ASSETS 100.0% | | | | | | $ | 19,190,229,872 | |
| | | | | | | | |
See the Glossary for a list of the abbreviation(s) used in the annual report.
| * | Non-income producing security. |
| # | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
| ^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $595,060,782 and 3.1% of net assets. |
| (c) | Variable rate instrument. The interest rate shown reflects the rate in effect at August 31, 2024. |
| (cc) | Variable rate instrument. The rate shown is based on the latest available information as of August 31, 2024. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
| (d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post-maturity. |
| (f) | Indicates a restricted security that is acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer and is considered restricted as to disposition under federal securities law; the aggregate original cost of such securities is $1,192,659,680. The aggregate value of $638,801,545 is 3.3% of net assets. |
| (ff) | Variable rate security. Security may be issued at a fixed coupon rate, which converts to a variable rate at a specified date. Rate shown is the rate in effect as of period end. |
| (h) | Represents security, or a portion thereof, segregated as collateral for OTC derivatives. |
| (k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
| (oo) | Perpetual security. Maturity date represents next call date. |
| (p) | Represents a security with a delayed settlement and therefore the interest rate is not available until settlement which is after the period end. |
| (wa) | Represents investments in Funds affiliated with the Manager. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
See Notes to Financial Statements.
80
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
Unfunded loan commitments outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | |
| | | Principal | | | | | | |
| | | Amount | | Current | | Unrealized | | Unrealized |
Borrower | | (000)# | | Value | | Appreciation | | Depreciation |
Doncasters US Finance LLC, Delayed Draw Term Loan, 1.500%, Maturity Date 04/23/30 (cost $6,762,546) | | | | 6,836 | | | | $ | 6,784,730 | | | | $ | 22,184 | | | | $ | — | |
Likewize Corp., Delayed Draw Term Loan, 1.000%, Maturity Date 08/15/29 (cost $1,468,750) | | | | 1,469 | | | | | 1,424,687 | | | | | — | | | | | (44,063 | ) |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | | | $ | 8,209,417 | | | | $ | 22,184 | | | | $ | (44,063 | ) |
| | | | | | | | | | | | | | | | | | | | |
Futures contracts outstanding at August 31, 2024:
| | | | | | | | | | | | | | |
Number
of
Contracts | | Type | | Expiration
Date | | | Current
Notional
Amount | | | Value /
Unrealized
Appreciation
(Depreciation) | |
Long Positions: | | | | | | | | | | | | |
2,449 | | 2 Year U.S. Treasury Notes | | | Dec. 2024 | | | $ | 508,282,299 | | | $ | (150,746 | ) |
191 | | 5 Year Euro-Bobl | | | Dec. 2024 | | | | 25,116,191 | | | | (19,154 | ) |
7,053 | | 5 Year U.S. Treasury Notes | | | Dec. 2024 | | | | 771,587,197 | | | | (1,575,060 | ) |
5,418 | | 10 Year U.S. Treasury Notes | | | Dec. 2024 | | | | 615,281,625 | | | | (3,436,578 | ) |
677 | | 20 Year U.S. Treasury Bonds | | | Dec. 2024 | | | | 83,355,625 | | | | (943,373 | ) |
230 | | 30 Year U.S. Ultra Treasury Bonds | | | Dec. 2024 | | | | 30,345,625 | | | | (461,938 | ) |
3 | | Euro Schatz Index | | | Dec. 2024 | | | | 353,673 | | | | (3 | ) |
| | | | | |
| | | | | | | | | | | | | (6,586,852 | ) |
| | | | | |
Short Position: | | | | | | | | | | | | |
129 | | 10 Year Euro-Bund | | | Dec. 2024 | | | | 19,022,386 | | | | 27,687 | |
| | | | | |
| | | | | | | | | | | | $ | (6,559,165 | ) |
| | | | | |
Forward foreign currency exchange contracts outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Purchase Contracts | | Counterparty | | | | Notional
Amount
(000) | | Value at
Settlement
Date | | Current
Value | | Unrealized
Appreciation | | Unrealized
Depreciation |
OTC Forward Foreign Currency Exchange Contracts: | | | | | | | | | | | | | | | | | | | | | | | | | | |
British Pound, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 09/03/24 | | MSI | | | | | | GBP | | | | | 66,040 | | | | $ | 87,166,816 | | | | $ | 86,735,440 | | | | $ | — | | | | $ | (431,376 | ) |
Euro, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 09/03/24 | | BOA | | | | | | EUR | | | | | 66,664 | | | | | 74,438,614 | | | | | 73,704,239 | | | | | — | | | | | (734,375 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $ | 161,605,430 | | | | $ | 160,439,679 | | | | | — | | | | | (1,165,751 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM High Yield Fund 81
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
Forward foreign currency exchange contracts outstanding at August 31, 2024 (continued):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sale Contracts | | Counterparty | | | | Notional
Amount
(000) | | Value at
Settlement
Date | | Current
Value | | Unrealized
Appreciation | | Unrealized
Depreciation |
OTC Forward Foreign Currency Exchange Contracts: | | | | | | | | | | | | | | | | | | | | | | | | | | |
British Pound, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 09/03/24 | | BNP | | | | | | GBP | | | | | 66,040 | | | | $ | 85,033,511 | | | | $ | 86,735,440 | | | | $ | — | | | | $ | (1,701,929 | ) |
Expiring 10/02/24 | | MSI | | | | | | GBP | | | | | 66,040 | | | | | 87,189,996 | | | | | 86,756,185 | | | | | 433,811 | | | | | — | |
Euro, | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 09/03/24 | | BOA | | | | | | EUR | | | | | 65,030 | | | | | 70,663,894 | | | | | 71,897,844 | | | | | — | | | | | (1,233,950 | ) |
Expiring 09/03/24 | | HSBC | | | | | | EUR | | | | | 1,634 | | | | | 1,776,793 | | | | | 1,806,395 | | | | | — | | | | | (29,602 | ) |
Expiring 10/02/24 | | BOA | | | | | | EUR | | | | | 66,664 | | | | | 74,538,411 | | | | | 73,799,197 | | | | | 739,214 | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | $ | 319,202,605 | | | | $ | 320,995,061 | | | | | 1,173,025 | | | | | (2,965,481 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | $ | 1,173,025 | | | | $ | (4,131,232 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Credit default swap agreement outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | Implied Credit
Spread at
August 31,
2024(4) | | Value at
Trade Date | | Value at
August 31,
2024 | | Unrealized
Appreciation
(Depreciation) |
| |
Centrally Cleared Credit Default Swap Agreement on credit indices - Sell Protection(2): | | | | | | |
CDX.NA.HY.42.V1 | | | | 06/20/29 | | | | | 5.000 | %(Q) | | | | 396,670 | | | | | 3.215 | % | | | $ | 24,719,094 | | | | $ | 32,394,197 | | | | | $7,675,103 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases.
| (1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| (2) | If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
See Notes to Financial Statements.
82
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| (3) | Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| (4) | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements where the Fund is the seller of protection as of the reporting date serve as an indicator of the current status of the payment/ performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
Total return swap agreements outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | |
Reference Entity | | Financing
Rate | | Counterparty | | Termination
Date | | Long
(Short)
Notional
Amount
(000)#(1) | | | Fair
Value | | | Upfront
Premiums
Paid
(Received) | | | Unrealized
Appreciation
(Depreciation)(2) | |
|
OTC Total Return Swap Agreements: | |
iBoxx US Dollar Liquid High Yield Index(T) | | 1 Day SOFR(Q)/ 5.320% | | JPM | | 12/20/24 | | | 72,690 | | | $ | (385,750 | ) | | $ | — | | | $ | (385,750 | ) |
iBoxx US Dollar Liquid High Yield Index(T) | | 1 Day SOFR(Q)/ 5.320% | | BARC | | 03/20/25 | | | 74,110 | | | | 1,119,911 | | | | — | | | | 1,119,911 | |
iBoxx US Dollar Liquid Investment Grade Index(T) | | 1 Day SOFR(Q)/ 5.320% | | MSI | | 09/20/24 | | | (159,910 | ) | | | (10,062,449 | ) | | | — | | | | (10,062,449 | ) |
iBoxx US Dollar Liquid Investment Grade Index(T) | | 1 Day SOFR(Q)/ 5.320% | | BNP | | 09/20/24 | | | (80,347 | ) | | | (4,496,884 | ) | | | — | | | | (4,496,884 | ) |
iBoxx US Dollar Liquid Investment Grade Index(T) | | 1 Day SOFR(Q)/ 5.320% | | BNP | | 12/20/24 | | | (37,800 | ) | | | (1,001,239 | ) | | | — | | | | (1,001,239 | ) |
iBoxx US Dollar Liquid Investment Grade Index(T) | | 1 Day SOFR(Q)/ 5.320% | | GSI | | 03/20/25 | | | (100,000 | ) | | | 1,366,573 | | | | — | | | | 1,366,573 | |
iBoxx US Dollar Liquid Investment Grade Index(T) | | 1 Day SOFR(Q)/ 5.320% | | JPM | | 03/20/25 | | | (50,770 | ) | | | (1,608,472 | ) | | | — | | | | (1,608,472 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | $ | (15,068,310 | ) | | $ | — | | | $ | (15,068,310 | ) |
| | | | | | | | | | | | | | | | | | | | | | |
| (1) | On a long total return swap, the Fund receives payments for any positive return on the reference entity (makes payments for any negative return) and pays the financing rate. On a short total return swap, the Fund makes payments for any positive return on the reference entity (receives payments for any negative return) and receives the financing rate. |
| (2) | Upfront/recurring fees or commissions, as applicable, are included in the net unrealized appreciation (depreciation). |
See Notes to Financial Statements.
PGIM High Yield Fund 83
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
Balances Reported in the Statement of Assets and Liabilities for OTC Swap Agreements:
| | | | | | | | |
| | | Premiums Paid | | Premiums Received | | Unrealized
Appreciation | | Unrealized
Depreciation |
OTC Swap Agreements | | $— | | $— | | $2,486,484 | | $(17,554,794) |
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
| | | | | | | | | | |
Broker | | Cash and/or Foreign Currency | | Securities Market Value |
CGM | | | | $— | | | | | $56,658,020 | |
| | | | | | | | | | |
Fair Value Measurements:
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—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of August 31, 2024 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | |
Asset-Backed Securities | | | | | | | | | | | | |
Collateralized Loan Obligations | | $ | — | | | $ | 227,049,420 | | | $ | — | |
Corporate Bonds | | | — | | | | 15,798,117,443 | | | | 18,836,863 | |
Floating Rate and Other Loans | | | — | | | | 785,689,413 | | | | 142,658,205 | |
U.S. Treasury Obligations | | | — | | | | 930,261,591 | | | | — | |
Affiliated Exchange-Traded Funds | | | 175,277,550 | | | | — | | | | — | |
Common Stocks | | | 18,272,025 | | | | 94,014,541 | | | | 290,581,091 | |
Preferred Stocks | | | — | | | | — | | | | 142,984,623 | |
Warrants | | | — | | | | — | | | | — | |
Short-Term Investments | | | | | | | | | | | | |
Affiliated Mutual Funds | | | 400,273,646 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 593,823,221 | | | $ | 17,835,132,408 | | | $ | 595,060,782 | |
| | | | | | | | | | | | |
See Notes to Financial Statements.
84
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Other Financial Instruments* | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Unfunded Loan Commitment | | $ | — | | | $ | 22,184 | | | $ | — | |
Futures Contracts | | | 27,687 | | | | — | | | | — | |
OTC Forward Foreign Currency Exchange Contracts | | | — | | | | 1,173,025 | | | | — | |
Centrally Cleared Credit Default Swap Agreement | | | — | | | | 7,675,103 | | | | — | |
OTC Total Return Swap Agreements | | | — | | | | 2,486,484 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 27,687 | | | $ | 11,356,796 | | | $ | — | |
| | | | | | | | | | | | |
| | | |
Liabilities | | | | | | | | | | | | |
Unfunded Loan Commitment | | $ | — | | | $ | (44,063 | ) | | $ | — | |
Futures Contracts | | | (6,586,852 | ) | | | — | | | | — | |
OTC Forward Foreign Currency Exchange Contracts | | | — | | | | (4,131,232 | ) | | | — | |
OTC Total Return Swap Agreements | | | — | | | | (17,554,794 | ) | | | — | |
| | | | | | | | | | | | |
Total | | $ | (6,586,852 | ) | | $ | (21,730,089 | ) | | $ | — | |
| | | | | | | | | | | | |
| * | Other financial instruments are derivative instruments, with the exception of unfunded loan commitments, and are not reflected in the Schedule of Investments. Futures, forwards, centrally cleared swap contracts and unfunded loan commitments are recorded at net unrealized appreciation (depreciation) and OTC swap contracts are recorded at fair value. |
The following is a reconciliation of assets in which unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Corporate Bonds | | Floating Rate
and
Other Loans | | Common
Stocks | | Preferred Stocks | | Rights |
Balance as of 08/31/23 | | | $ | 24,549,254 | | | | $ | 60,965,971 | | | | $ | 87,384,177 | | | | $ | 142,285,020 | | | | $ | 2,594,521 | |
Realized gain (loss) | | | | 103,321 | | | | | 13,265,610 | | | | | 4,736,201 | | | | | 750,335 | | | | | — | |
Change in unrealized appreciation (depreciation) | | | | (221,160 | ) | | | | (1,640,206 | ) | | | | 7,341,722 | | | | | 3,717,828 | | | | | (2,588,006 | ) |
Purchases/Exchanges/Issuances | | | | 19,533,130 | | | | | 127,196,480 | | | | | 169,433,274 | | | | | 21,929,741 | | | | | — | |
Sales/Paydowns | | | | (25,125,462 | ) | | | | (58,273,037 | ) | | | | (39,607,048 | ) | | | | (25,698,301 | ) | | | | (6,515 | ) |
Accrued discount/premium | | | | (2,220 | ) | | | | 1,153,827 | | | | | — | | | | | — | | | | | — | |
Transfers into Level 3* | | | | — | | | | | — | | | | | 61,292,765 | | | | | — | | | | | — | |
Transfers out of Level 3* | | | | — | | | | | (10,440 | ) | | | | — | | | | | — | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Balance as of 08/31/24 | | | $ | 18,836,863 | | | | $ | 142,658,205 | | | | $ | 290,581,091 | | | | $ | 142,984,623 | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Change in unrealized appreciation (depreciation) relating to securities still held at reporting period end | | | $ | (220,906 | ) | | | $ | 1,583,230 | | | | $ | 7,341,722 | | | | $ | 3,709,432 | | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| * | It is the Fund’s policy to recognize transfers in and transfers out at the securities’ fair values as of the beginning of period. Securities transferred between Level 2 and Level 3 are due to changes in the method utilized in valuing the investments. Transfers from Level 2 to Level 3 are typically a result of a change from the use of methods used by |
See Notes to Financial Statements.
PGIM High Yield Fund 85
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | independent pricing services (Level 2) to the use of a single broker quote or valuation technique which utilizes significant unobservable inputs due to an absence of current or reliable market quotations (Level 3). Transfers from Level 3 to Level 2 are a result of the availability of current and reliable market data provided by independent pricing services or other valuation techniques which utilize observable inputs. In accordance with the requirements of ASC 820, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to the Schedule of Investments of the Fund. |
Level 3 securities as presented in the table above are being fair valued using pricing methodologies approved by the Board, which contain unobservable inputs as follows:
| | | | | | | | | | | | |
Level 3 Securities** | | Fair Value
as of
August 31,
2024 | | | Valuation
Approach | | Valuation
Methodology | | Unobservable
Inputs | | Inputs
(Range) |
Corporate Bonds | | $ | 58,348 | | | Market | | Recovery Value | | Recovery Rate | | 0.00% -
48.00% |
Corporate Bonds | | | 18,778,515 | | | Market | | Transaction
Based | | Unadjusted
Price | | NA |
Floating Rate and Other Loans | | | 15,189,346 | | | Market | | Comparable
Bond | | Yield Curve
Spread Discount | | 350 bps |
Floating Rate and Other Loans | | | 39,572,940 | | | Market | | Enterprise Value | | EBITDA Multiple | | 8.3x |
Common Stocks | | | 82,465,247 | | | Market | | Adjusted Trade
Price | | Premium Rate | | 20.00% |
Common Stocks | | | 38,664,766 | | | Market | | Enterprise Value | | EBITDA Multiple | | 4.0x - 12.2x |
Common Stocks | | | 308,745 | | | Market | | Enterprise Value | | Recovery Rate | | 0.50% |
Common Stocks | | | 79 | | | Market | | Recovery Value | | Recovery Rate | | 0.00% |
Preferred Stocks | | | 8,892,623 | | | Market | | Enterprise Value | | Recovery Rate | | 10.70% |
Preferred Stocks | | | 134,092,000 | | | Market | | Transaction
Based | | Unadjusted
Price | | NA |
| | | | | | | | | | | | |
| | $ | 338,022,609 | | | | | | | | | |
| | | | | | | | | | | | |
| ** | The table does not include Level 3 securities and/or derivatives that are valued by independent pricing vendors or brokers. As of August 31, 2024, the aggregate value of these securities and/or derivatives was $257,038,173. The unobservable inputs for these investments were not developed by the Fund and are not readily available (e.g. single broker quotes). |
See Notes to Financial Statements.
86
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of August 31, 2024 were as follows:
| | | | |
Oil & Gas | | | 6.2 | % |
Telecommunications | | | 5.8 | |
Media | | | 5.2 | |
Retail | | | 5.1 | |
U.S. Treasury Obligations | | | 4.9 | |
Electric | | | 4.4 | |
Home Builders | | | 4.1 | |
Leisure Time | | | 4.0 | |
Diversified Financial Services | | | 3.9 | |
Pipelines | | | 3.9 | |
Commercial Services | | | 3.8 | |
Healthcare-Services | | | 3.4 | |
Entertainment | | | 2.5 | |
Chemicals | | | 2.5 | |
Pharmaceuticals | | | 2.5 | |
Foods | | | 2.1 | |
Aerospace & Defense | | | 2.1 | |
Affiliated Mutual Funds | | | 2.1 | |
Building Materials | | | 2.0 | |
Packaging & Containers | | | 1.8 | |
Mining | | | 1.7 | |
Lodging | | | 1.7 | |
Auto Parts & Equipment | | | 1.7 | |
Real Estate Investment Trusts (REITs) | | | 1.5 | |
Computers | | | 1.3 | |
Collateralized Loan Obligations | | | 1.2 | |
Insurance | | | 1.2 | |
Real Estate | | | 1.1 | |
Airlines | | | 1.0 | |
Healthcare-Products | | | 0.9 | |
Affiliated Exchange-Traded Funds | | | 0.9 | |
Banks | | | 0.8 | |
Housewares | | | 0.8 | |
Auto Manufacturers | | | 0.7 | |
Software | | | 0.7 | |
Electronic Equipment, Instruments & Components | | | 0.7 | |
Internet | | | 0.7 | |
| | | | |
Machinery-Diversified | | | 0.6 | % |
Wireless Telecommunication Services | | | 0.6 | |
Iron/Steel | | | 0.6 | |
Distribution/Wholesale | | | 0.6 | |
Environmental Control | | | 0.6 | |
Transportation | | | 0.5 | |
Household Products/Wares | | | 0.5 | |
Metal Fabricate/Hardware | | | 0.5 | |
Electrical Components & Equipment | | | 0.4 | |
Gas Utilities | | | 0.4 | |
Apparel | | | 0.4 | |
Miscellaneous Manufacturing | | | 0.3 | |
Advertising | | | 0.3 | |
Agriculture | | | 0.3 | |
Oil, Gas & Consumable Fuels | | | 0.2 | |
Investment Companies | | | 0.2 | |
Coal | | | 0.2 | |
Engineering & Construction | | | 0.2 | |
Gas | | | 0.2 | |
Cosmetics/Personal Care | | | 0.2 | |
Machinery-Construction & Mining | | | 0.1 | |
Electronics | | | 0.1 | |
Office/Business Equipment | | | 0.1 | |
Electric Utilities | | | 0.1 | |
Holding Companies-Diversified | | | 0.0 | * |
Oil & Gas Services | | | 0.0 | * |
Textiles | | | 0.0 | * |
Hotels, Restaurants & Leisure | | | 0.0 | * |
| | | | |
| | | 99.1 | |
Other assets in excess of liabilities | | | 0.9 | |
| | | | |
| | | 100.0 | % |
| | | | |
See Notes to Financial Statements.
PGIM High Yield Fund 87
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are credit risk, foreign exchange risk and interest rate risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of August 31, 2024 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | | | |
| | | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Statement of Assets and Liabilities Location | | Fair
Value | | | Statement of Assets and Liabilities Location | | Fair
Value | |
Credit contracts | | Due from/to broker-variation margin swaps | | $ | 7,675,103 | * | | — | | $ | — | |
Foreign exchange contracts | | Unrealized appreciation on OTC forward foreign currency exchange contracts | | | 1,173,025 | | | Unrealized depreciation on OTC forward foreign currency exchange contracts | | | 4,131,232 | |
Interest rate contracts | | Due from/to broker-variation margin futures | | | 27,687 | * | | Due from/to broker-variation margin futures | | | 6,586,852 | * |
Interest rate contracts | | Unrealized appreciation on OTC swap agreements | | | 2,486,484 | | | Unrealized depreciation on OTC swap agreements | | | 17,554,794 | |
| | | | | | | | | | | | |
| | | | |
| | | | $ | 11,362,299 | | | | | $ | 28,272,878 | |
| | | | | | | | | | | | |
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. 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 year ended August 31, 2024 are as follows:
| | | | | | | | | | | | | | | |
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Futures | | Forward
Currency
Exchange
Contracts | | Swaps |
Credit contracts | | | $ | — | | | | $ | — | | | | $ | (38,434,188 | ) |
Foreign exchange contracts | | | | — | | | | | 842,556 | | | | | — | |
Interest rate contracts | | | | 58,281,220 | | | | | — | | | | | (3,075,068 | ) |
| | | | | | | | | | | | | | | |
| | | |
Total | | | $ | 58,281,220 | | | | $ | 842,556 | | | | $ | (41,509,256 | ) |
| | | | | | | | | | | | | | | |
See Notes to Financial Statements.
88
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Futures | | Forward
Currency
Exchange
Contracts | | Swaps |
Credit contracts | | | $ | — | | | | $ | — | | | | $ | 13,498,220 | |
Equity contracts | | | | (7,496 | ) | | | | — | | | | | — | |
Foreign exchange contracts | | | | — | | | | | (4,997,342 | ) | | | | — | |
Interest rate contracts | | | | (12,816,995 | ) | | | | — | | | | | (13,026,550 | ) |
| | | | | | | | | | | | | | | |
| | | |
Total | | | $ | (12,824,491 | ) | | | $ | (4,997,342 | ) | | | $ | 471,670 | |
| | | | | | | | | | | | | | | |
For the year ended August 31, 2024, the Fund’s average volume of derivative activities is as follows:
| | | | | | | | |
| Derivative Contract Type | | Average Volume of Derivative Activities* | |
| |
Futures Contracts - Long Positions (1) | | | $2,212,489,952 | | | | | |
Futures Contracts - Short Positions (1) | | | 51,116,654 | | | | | |
Forward Foreign Currency Exchange Contracts - Purchased (2) | | | 115,063,072 | | | | | |
Forward Foreign Currency Exchange Contracts - Sold (2) | | | 226,325,611 | | | | | |
Credit Default Swap Agreements - Buy Protection (1) | | | 787,469,570 | | | | | |
Credit Default Swap Agreements - Sell Protection (1) | | | 181,193,000 | | | | | |
Total Return Swap Agreements (1) | | | 389,428,000 | | | | | |
| |
| * | Average volume is based on average quarter end balances for the year ended August 31, 2024. |
| (1) | Notional Amount in USD. |
| (2) | Value at Settlement Date. |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund invested in OTC derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives where the legal right to set-off exists is presented in the summary below.
Offsetting of OTC derivative assets and liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amounts of
Recognized
Assets(1) | | Gross Amounts of
Recognized
Liabilities(1) | | Net Amounts of
Recognized
Assets/(Liabilities) | | Collateral
Pledged/(Received)(2) | | Net Amount |
BARC | | | $ | 1,119,911 | | | | $ | — | | | | $ | 1,119,911 | | | | $ | (1,079,423 | ) | | | $ | 40,488 | |
BNP | | | | — | | | | | (7,200,052 | ) | | | | (7,200,052 | ) | | | | 7,200,052 | | | | | — | |
BOA | | | | 739,214 | | | | | (1,968,325 | ) | | | | (1,229,111 | ) | | | | 1,229,111 | | | | | — | |
GSI | | | | 1,366,573 | | | | | — | | | | | 1,366,573 | | | | | (280,000 | ) | | | | 1,086,573 | |
See Notes to Financial Statements.
PGIM High Yield Fund 89
PGIM High Yield Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amounts of
Recognized
Assets(1) | | Gross Amounts of
Recognized
Liabilities(1) | | Net Amounts of
Recognized
Assets/(Liabilities) | | Collateral
Pledged/(Received)(2) | | Net Amount |
HSBC | | | $ | — | | | | $ | (29,602 | ) | | | $ | (29,602 | ) | | | $ | — | | | | $ | (29,602 | ) |
JPM | | | | — | | | | | (1,994,222 | ) | | | | (1,994,222 | ) | | | | 1,994,222 | | | | | — | |
MSI | | | | 433,811 | | | | | (10,493,825 | ) | | | | (10,060,014 | ) | | | | 10,060,014 | | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 3,659,509 | | | | $ | (21,686,026 | ) | | | $ | (18,026,517 | ) | | | $ | 19,123,976 | | | | $ | 1,097,459 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
| (2) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions and the Fund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
90
PGIM High Yield Fund
Statement of Assets & Liabilities
as of August 31, 2024
| | | | |
| |
Assets | | | | |
Investments at value: | | | | |
Unaffiliated investments (cost $19,341,828,095) | | $ | 18,448,465,215 | |
Affiliated investments (cost $574,934,549) | | | 575,551,196 | |
Foreign currency, at value (cost $2,535,893) | | | 2,531,689 | |
Dividends and interest receivable | | | 281,478,082 | |
Receivable for Fund shares sold | | | 42,969,500 | |
Receivable for investments sold | | | 10,960,391 | |
Unrealized appreciation on OTC swap agreements | | | 2,486,484 | |
Unrealized appreciation on OTC forward foreign currency exchange contracts | | | 1,173,025 | |
Due from broker—variation margin swaps | | | 503,498 | |
Unrealized appreciation on unfunded loan commitment | | | 22,184 | |
Prepaid expenses and other assets | | | 286,550 | |
| | | | |
| |
Total Assets | | | 19,366,427,814 | |
| | | | |
| |
Liabilities | | | | |
Payable for investments purchased | | | 74,955,269 | |
Payable for Fund shares purchased | | | 56,411,917 | |
Unrealized depreciation on OTC swap agreements | | | 17,554,794 | |
Dividends payable | | | 9,439,397 | |
Management fee payable | | | 5,873,118 | |
Due to broker—variation margin futures | | | 4,240,530 | |
Unrealized depreciation on OTC forward foreign currency exchange contracts | | | 4,131,232 | |
Accrued expenses and other liabilities | | | 2,012,212 | |
Payable to custodian | | | 871,390 | |
Distribution fee payable | | | 498,264 | |
Affiliated transfer agent fee payable | | | 132,208 | |
Unrealized depreciation on unfunded loan commitment | | | 44,063 | |
Directors’ fees payable | | | 33,548 | |
| | | | |
| |
Total Liabilities | | | 176,197,942 | |
| | | | |
| |
Net Assets | | $ | 19,190,229,872 | |
| | | | |
| |
| | | | |
| |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 39,836,171 | |
Paid-in capital in excess of par | | | 21,436,133,142 | |
Total distributable earnings (loss) | | | (2,285,739,441 | ) |
| | | | |
| |
Net assets, August 31, 2024 | | $ | 19,190,229,872 | |
| | | | |
See Notes to Financial Statements.
PGIM High Yield Fund 91
PGIM High Yield Fund
Statement of Assets & Liabilities (continued)
as of August 31, 2024
| | | | | | | | | | |
Class A | | | | | | | | | | |
Net asset value and redemption price per share, ($1,439,104,839 ÷ 299,071,591 shares of common stock issued and outstanding) | | | $ | 4.81 | | | | | | |
Maximum sales charge (3.25% of offering price) | | | | 0.16 | | | | | | |
| | | | | | | | | | |
Maximum offering price to public | | | $ | 4.97 | | | | | | |
| | | | | | | | | | |
Class C | | | | | | | | | | |
Net asset value, offering price and redemption price per share, ($194,627,179 ÷ 40,499,023 shares of common stock issued and outstanding) | | | $ | 4.81 | | | | | | |
| | | | | | | | | | |
Class R | | | | | | | | | | |
Net asset value, offering price and redemption price per share, ($65,100,611 ÷ 13,537,011 shares of common stock issued and outstanding) | | | $ | 4.81 | | | | | | |
| | | | | | | | | | |
Class Z | | | | | | | | | | |
Net asset value, offering price and redemption price per share, ($8,004,472,086 ÷ 1,659,435,765 shares of common stock issued and outstanding) | | | $ | 4.82 | | | | | | |
| | | | | | | | | | |
Class R2 | | | | | | | | | | |
Net asset value, offering price and redemption price per share, ($27,070,889 ÷ 5,619,549 shares of common stock issued and outstanding) | | | $ | 4.82 | | | | | | |
| | | | | | | | | | |
Class R4 | | | | | | | | | | |
Net asset value, offering price and redemption price per share, ($38,025,102 ÷ 7,896,528 shares of common stock issued and outstanding) | | | $ | 4.82 | | | | | | |
| | | | | | | | | | |
Class R6 | | | | | | | | | | |
Net asset value, offering price and redemption price per share, ($9,421,829,166 ÷ 1,957,557,614 shares of common stock issued and outstanding) | | | $ | 4.81 | | | | | | |
| | | | | | | | | | |
See Notes to Financial Statements.
92
PGIM High Yield Fund
Statement of Operations
Year Ended August 31, 2024
| | | | |
Net Investment Income (Loss) | | | | |
Income | | | | |
Interest income (net of $311,949 foreign withholding tax) | | $ | 1,238,333,552 | |
Affiliated dividend income | | | 50,108,000 | |
Unaffiliated dividend income | | | 7,303,407 | |
Income from securities lending, net (including affiliated income of $5,272,604) | | | 5,298,375 | |
| | | | |
Total income | | | 1,301,043,334 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 65,904,982 | |
Distribution fee(a) | | | 5,964,467 | |
Shareholder servicing fees(a) | | | 59,315 | |
Transfer agent’s fees and expenses (including affiliated expense of $798,564)(a) | | | 13,071,953 | |
Custodian and accounting fees | | | 953,783 | |
Shareholders’ reports | | | 909,258 | |
Registration fees(a) | | | 443,934 | |
Directors’ fees | | | 260,244 | |
Professional fees | | | 203,453 | |
Audit fee | | | 48,230 | |
Miscellaneous | | | 287,112 | |
| | | | |
Total expenses | | | 88,106,731 | |
Less: Fee waiver and/or expense reimbursement(a) | | | (31,704 | ) |
Distribution fee waiver(a) | | | (157,009 | ) |
| | | | |
Net expenses | | | 87,918,018 | |
| | | | |
Net investment income (loss) | | | 1,213,125,316 | |
| | | | |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | | | | |
| |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $1,007,300) | | | (536,599,739 | ) |
Futures transactions | | | 58,281,220 | |
Forward currency contract transactions | | | 842,556 | |
Swap agreement transactions | | | (41,509,256 | ) |
Foreign currency transactions | | | (3,603,588 | ) |
| | | | |
| | | (522,588,807 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated of $(1,434,500)) | | | 1,385,786,595 | |
Futures | | | (12,824,491 | ) |
Forward currency contracts | | | (4,997,342 | ) |
Swap agreements | | | 471,670 | |
Foreign currencies | | | 10,170 | |
Unfunded loan commitment | | | (21,879 | ) |
| | | | |
| | | 1,368,424,723 | |
| | | | |
Net gain (loss) on investment and foreign currency transactions | | | 845,835,916 | |
| | | | |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | 2,058,961,232 | |
| | | | |
See Notes to Financial Statements.
PGIM High Yield Fund 93
PGIM High Yield Fund
Statement of Operations (continued)
Year Ended August 31, 2024
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class R | | | Class Z | | | Class R2 | | | Class R4 | | | Class R6 | |
Distribution fee | | | 3,475,056 | | | | 1,957,483 | | | | 471,028 | | | | — | | | | 60,900 | | | | — | | | | — | |
Shareholder servicing fees | | | — | | | | — | | | | — | | | | — | | | | 24,360 | | | | 34,955 | | | | — | |
Transfer agent’s fees and expenses | | | 1,542,153 | | | | 153,260 | | | | 101,565 | | | | 10,767,449 | | | | 43,284 | | | | 56,407 | | | | 407,835 | |
Registration fees | | | 65,235 | | | | 25,512 | | | | 8,304 | | | | 209,505 | | | | 9,479 | | | | 9,347 | | | | 116,552 | |
Fee waiver and/or expense reimbursement | | | (1,568 | ) | | | (213 | ) | | | (71 | ) | | | (9,142 | ) | | | (8,440 | ) | | | (2,159 | ) | | | (10,111 | ) |
Distribution fee waiver | | | — | | | | — | | | | (157,009 | ) | | | — | | | | — | | | | — | | | | — | |
See Notes to Financial Statements.
94
PGIM High Yield Fund
Statements of Changes in Net Assets
| | | | | | | | |
| |
| | | Year Ended August 31, | |
| | | | |
| | |
| | | 2024 | | | 2023 | |
| | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 1,213,125,316 | | | $ | 1,231,293,988 | |
Net realized gain (loss) on investment and foreign currency transactions | | | (522,588,807 | ) | | | (326,782,172 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | 1,368,424,723 | | | | 104,176,171 | |
| | | | | | | | |
| | |
Net increase (decrease) in net assets resulting from operations | | | 2,058,961,232 | | | | 1,008,687,987 | |
| | | | | | | | |
| | |
Dividends and Distributions | | | | | | | | |
Distributions from distributable earnings | | | | | | | | |
Class A | | | (99,136,361 | ) | | | (97,475,419 | ) |
Class C | | | (12,544,300 | ) | | | (13,302,674 | ) |
Class R | | | (4,280,965 | ) | | | (4,084,408 | ) |
Class Z | | | (598,289,069 | ) | | | (621,901,366 | ) |
Class R2 | | | (1,690,603 | ) | | | (2,268,916 | ) |
Class R4 | | | (2,519,969 | ) | | | (2,301,289 | ) |
Class R6 | | | (618,260,254 | ) | | | (565,640,081 | ) |
| | | | | | | | |
| | | (1,336,721,521 | ) | | | (1,306,974,153 | ) |
| | | | | | | | |
Fund share transactions (Net of share conversions) | | | | | | | | |
Net proceeds from shares sold | | | 6,087,264,509 | | | | 6,079,164,560 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 1,212,438,258 | | | | 1,170,989,695 | |
Cost of shares purchased | | | (6,805,845,729 | ) | | | (7,617,202,166 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 493,857,038 | | | | (367,047,911 | ) |
| | | | | | | | |
Total increase (decrease) | | | 1,216,096,749 | | | | (665,334,077 | ) |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 17,974,133,123 | | | | 18,639,467,200 | |
| | | | | | | | |
End of year | | $ | 19,190,229,872 | | | $ | 17,974,133,123 | |
| | | | | | | | |
See Notes to Financial Statements.
PGIM High Yield Fund 95
PGIM High Yield Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $4.62 | | | | $4.70 | | | | $5.60 | | | | $5.36 | | | | $5.49 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.30 | | | | 0.30 | | | | 0.27 | | | | 0.28 | | | | 0.32 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.22 | | | | (0.06 | ) | | | (0.83) | | | | 0.29 | | | | (0.13 | )(b) |
Total from investment operations | | | 0.52 | | | | 0.24 | | | | (0.56 | ) | | | 0.57 | | | | 0.19 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.33 | ) | | | (0.32 | ) | | | (0.28 | ) | | | (0.31 | ) | | | (0.32 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (0.06 | ) | | | (0.02 | ) | | | - | |
Total dividends and distributions | | | (0.33 | ) | | | (0.32 | ) | | | (0.34 | ) | | | (0.33 | ) | | | (0.32 | ) |
Net asset value, end of year | | | $4.81 | | | | $4.62 | | | | $4.70 | | | | $5.60 | | | | $5.36 | |
Total Return(c): | | | 11.75 | % | | | 5.34 | % | | | (10.37 | )% | | | 10.83 | % | | | 3.67 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $1,439,105 | | | | $1,389,896 | | | | $1,482,194 | | | | $1,845,347 | | | | $1,738,601 | |
Average net assets (000) | | | $1,390,022 | | | | $1,406,761 | | | | $1,692,604 | | | | $1,758,634 | | | | $1,639,881 | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.74 | % | | | 0.75 | % | | | 0.75 | % | | | 0.75 | % | | | 0.79 | % |
Expenses before waivers and/or expense reimbursement | | | 0.74 | % | | | 0.75 | % | | | 0.75 | % | | | 0.75 | % | | | 0.79 | % |
Net investment income (loss) | | | 6.44 | % | | | 6.52 | % | | | 5.14 | % | | | 5.01 | % | | | 5.96 | % |
Portfolio turnover rate(e) | | | 42 | % | | | 22 | % | | | 38 | % | | | 56 | % | | | 45 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
96
PGIM High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $4.62 | | | | $4.69 | | | | $5.59 | | | | $5.35 | | | | $5.48 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.27 | | | | 0.27 | | | | 0.23 | | | | 0.24 | | | | 0.28 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.22 | | | | (0.05 | ) | | | (0.83) | | | | 0.29 | | | | (0.13 | )(b) |
Total from investment operations | | | 0.49 | | | | 0.22 | | | | (0.60 | ) | | | 0.53 | | | | 0.15 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.30 | ) | | | (0.29 | ) | | | (0.24 | ) | | | (0.27 | ) | | | (0.28 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (0.06 | ) | | | (0.02 | ) | | | - | |
Total dividends and distributions | | | (0.30 | ) | | | (0.29 | ) | | | (0.30 | ) | | | (0.29 | ) | | | (0.28 | ) |
Net asset value, end of year | | | $4.81 | | | | $4.62 | | | | $4.69 | | | | $5.59 | | | | $5.35 | |
Total Return(c): | | | 10.72 | % | | | 4.81 | % | | | (11.04 | )% | | | 10.05 | % | | | 2.95 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $194,627 | | | | $203,122 | | | | $228,267 | | | | $285,550 | | | | $264,771 | |
Average net assets (000) | | | $195,748 | | | | $213,856 | | | | $265,453 | | | | $276,522 | | | | $240,674 | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.47 | % | | | 1.47 | % | | | 1.47 | % | | | 1.46 | % | | | 1.49 | % |
Expenses before waivers and/or expense reimbursement | | | 1.47 | % | | | 1.47 | % | | | 1.47 | % | | | 1.46 | % | | | 1.49 | % |
Net investment income (loss) | | | 5.71 | % | | | 5.80 | % | | | 4.41 | % | | | 4.29 | % | | | 5.27 | % |
Portfolio turnover rate(e) | | | 42 | % | | | 22 | % | | | 38 | % | | | 56 | % | | | 45 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM High Yield Fund 97
PGIM High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $4.62 | | | | $4.69 | | | | $5.59 | | | | $5.36 | | | | $5.49 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.29 | | | | 0.29 | | | | 0.25 | | | | 0.26 | | | | 0.30 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.22 | | | | (0.06 | ) | | | (0.82) | | | | 0.28 | | | | (0.13 | )(b) |
Total from investment operations | | | 0.51 | | | | 0.23 | | | | (0.57 | ) | | | 0.54 | | | | 0.17 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.32 | ) | | | (0.30 | ) | | | (0.27 | ) | | | (0.29 | ) | | | (0.30 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (0.06 | ) | | | (0.02 | ) | | | - | |
Total dividends and distributions | | | (0.32 | ) | | | (0.30 | ) | | | (0.33 | ) | | | (0.31 | ) | | | (0.30 | ) |
Net asset value, end of year | | | $4.81 | | | | $4.62 | | | | $4.69 | | | | $5.59 | | | | $5.36 | |
Total Return(c): | | | 11.41 | % | | | 5.25 | % | | | (10.67 | )% | | | 10.31 | % | | | 3.35 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $65,101 | | | | $62,119 | | | | $65,159 | | | | $80,110 | | | | $75,437 | |
Average net assets (000) | | | $62,804 | | | | $61,679 | | | | $74,379 | | | | $75,371 | | | | $73,040 | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.05 | % | | | 1.06 | % | | | 1.06 | % | | | 1.04 | % | | | 1.10 | % |
Expenses before waivers and/or expense reimbursement | | | 1.30 | % | | | 1.31 | % | | | 1.31 | % | | | 1.29 | % | | | 1.35 | % |
Net investment income (loss) | | | 6.13 | % | | | 6.21 | % | | | 4.83 | % | | | 4.71 | % | | | 5.67 | % |
Portfolio turnover rate(e) | | | 42 | % | | | 22 | % | | | 38 | % | | | 56 | % | | | 45 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
98
PGIM High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class Z Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $4.63 | | | | $4.71 | | | | $5.61 | | | | $5.37 | | | | $5.50 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.31 | | | | 0.31 | | | | 0.28 | | | | 0.29 | | | | 0.33 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.22 | | | | (0.06 | ) | | | (0.82) | | | | 0.29 | | | | (0.13 | )(b) |
Total from investment operations | | | 0.53 | | | | 0.25 | | | | (0.54 | ) | | | 0.58 | | | | 0.20 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.34 | ) | | | (0.33 | ) | | | (0.30 | ) | | | (0.32 | ) | | | (0.33 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (0.06 | ) | | | (0.02 | ) | | | - | |
Total dividends and distributions | | | (0.34 | ) | | | (0.33 | ) | | | (0.36 | ) | | | (0.34 | ) | | | (0.33 | ) |
Net asset value, end of year | | | $4.82 | | | | $4.63 | | | | $4.71 | | | | $5.61 | | | | $5.37 | |
Total Return(c): | | | 12.00 | % | | | 5.60 | % | | | (10.12 | )% | | | 11.09 | % | | | 3.94 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $8,004,472 | | | | $8,520,420 | | | | $9,297,381 | | | | $12,845,347 | | | | $9,241,395 | |
Average net assets (000) | | | $8,146,187 | | | | $8,663,429 | | | | $11,828,293 | | | | $11,069,596 | | | | $6,354,707 | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.51 | % | | | 0.51 | % | | | 0.51 | % | | | 0.50 | % | | | 0.53 | % |
Expenses before waivers and/or expense reimbursement | | | 0.51 | % | | | 0.51 | % | | | 0.51 | % | | | 0.50 | % | | | 0.53 | % |
Net investment income (loss) | | | 6.66 | % | | | 6.76 | % | | | 5.37 | % | | | 5.22 | % | | | 6.18 | % |
Portfolio turnover rate(e) | | | 42 | % | | | 22 | % | | | 38 | % | | | 56 | % | | | 45 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM High Yield Fund 99
PGIM High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R2 Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $4.63 | | | | $4.70 | | | | $5.60 | | | | $5.37 | | | | $5.50 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.29 | | | | 0.29 | | | | 0.26 | | | | 0.26 | | | | 0.31 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.23 | | | | (0.05 | ) | | | (0.83) | | | | 0.29 | | | | (0.13 | )(b) |
Total from investment operations | | | 0.52 | | | | 0.24 | | | | (0.57 | ) | | | 0.55 | | | | 0.18 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.33 | ) | | | (0.31 | ) | | | (0.27 | ) | | | (0.30 | ) | | | (0.31 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (0.06 | ) | | | (0.02 | ) | | | - | |
Total dividends and distributions | | | (0.33 | ) | | | (0.31 | ) | | | (0.33 | ) | | | (0.32 | ) | | | (0.31 | ) |
Net asset value, end of year | | | $4.82 | | | | $4.63 | | | | $4.70 | | | | $5.60 | | | | $5.37 | |
Total Return(c): | | | 11.56 | % | | | 5.40 | % | | | (10.51 | )% | | | 10.45 | % | | | 3.55 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $27,071 | | | | $23,440 | | | | $38,316 | | | | $44,289 | | | | $13,815 | |
Average net assets (000) | | | $24,360 | | | | $33,366 | | | | $43,115 | | | | $34,097 | | | | $8,936 | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.91 | % | | | 0.91 | % | | | 0.91 | % | | | 0.91 | % | | | 0.91 | % |
Expenses before waivers and/or expense reimbursement | | | 0.94 | % | | | 0.92 | % | | | 0.92 | % | | | 0.91 | % | | | 1.11 | % |
Net investment income (loss) | | | 6.27 | % | | | 6.35 | % | | | 4.99 | % | | | 4.77 | % | | | 5.83 | % |
Portfolio turnover rate(e) | | | 42 | % | | | 22 | % | | | 38 | % | | | 56 | % | | | 45 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
100
PGIM High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R4 Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $4.63 | | | | $4.70 | | | | $5.60 | | | | $5.36 | | | | $5.50 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.30 | | | | 0.30 | | | | 0.27 | | | | 0.28 | | | | 0.32 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.23 | | | | (0.05 | ) | | | (0.82) | | | | 0.29 | | | | (0.14 | )(b) |
Total from investment operations | | | 0.53 | | | | 0.25 | | | | (0.55 | ) | | | 0.57 | | | | 0.18 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.34 | ) | | | (0.32 | ) | | | (0.29 | ) | | | (0.31 | ) | | | (0.32 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (0.06 | ) | | | (0.02 | ) | | | - | |
Total dividends and distributions | | | (0.34 | ) | | | (0.32 | ) | | | (0.35 | ) | | | (0.33 | ) | | | (0.32 | ) |
Net asset value, end of year | | | $4.82 | | | | $4.63 | | | | $4.70 | | | | $5.60 | | | | $5.36 | |
Total Return(c): | | | 11.61 | % | | | 5.66 | % | | | (10.28 | )% | | | 10.93 | % | | | 3.61 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $38,025 | | | | $32,930 | | | | $33,423 | | | | $31,793 | | | | $19,171 | |
Average net assets (000) | | | $34,955 | | | | $32,736 | | | | $34,464 | | | | $24,783 | | | | $14,759 | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.66 | % | | | 0.66 | % | | | 0.66 | % | | | 0.66 | % | | | 0.66 | % |
Expenses before waivers and/or expense reimbursement | | | 0.67 | % | | | 0.67 | % | | | 0.69 | % | | | 0.67 | % | | | 0.79 | % |
Net investment income (loss) | | | 6.52 | % | | | 6.61 | % | | | 5.27 | % | | | 5.05 | % | | | 6.10 | % |
Portfolio turnover rate(e) | | | 42 | % | | | 22 | % | | | 38 | % | | | 56 | % | | | 45 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM High Yield Fund 101
PGIM High Yield Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | | | | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $4.62 | | | | $4.70 | | | | $5.60 | | | | $5.36 | | | | $5.49 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.32 | | | | 0.32 | | | | 0.29 | | | | 0.30 | | | | 0.33 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.22 | | | | (0.06 | ) | | | (0.83) | | | | 0.29 | | | | (0.12 | )(b) |
Total from investment operations | | | 0.54 | | | | 0.26 | | | | (0.54 | ) | | | 0.59 | | | | 0.21 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.35 | ) | | | (0.34 | ) | | | (0.30 | ) | | | (0.33 | ) | | | (0.34 | ) |
Distributions from net realized gains | | | - | | | | - | | | | (0.06 | ) | | | (0.02 | ) | | | - | |
Total dividends and distributions | | | (0.35 | ) | | | (0.34 | ) | | | (0.36 | ) | | | (0.35 | ) | | | (0.34 | ) |
Net asset value, end of year | | | $4.81 | | | | $4.62 | | | | $4.70 | | | | $5.60 | | | | $5.36 | |
Total Return(c): | | | 12.16 | % | | | 5.73 | % | | | (10.03 | )% | | | 11.24 | % | | | 4.07 | % |
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | | $9,421,829 | | | | $7,742,206 | | | | $7,494,727 | | | | $8,711,897 | | | | $8,146,218 | |
Average net assets (000) | | | $8,261,633 | | | | $7,742,669 | | | | $8,544,222 | | | | $8,959,961 | | | | $4,881,610 | |
Ratios to average net assets(d): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.38 | % | | | 0.38 | % | | | 0.38 | % | | | 0.38 | % | | | 0.40 | % |
Expenses before waivers and/or expense reimbursement | | | 0.38 | % | | | 0.38 | % | | | 0.38 | % | | | 0.38 | % | | | 0.40 | % |
Net investment income (loss) | | | 6.80 | % | | | 6.89 | % | | | 5.52 | % | | | 5.39 | % | | | 6.29 | % |
Portfolio turnover rate(e) | | | 42 | % | | | 22 | % | | | 38 | % | | | 56 | % | | | 45 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | The per share amount of realized and unrealized gain (loss) on investments does not directly correlate to the amounts reported in the Statement of Operations due to the timing of portfolio share transactions in relation to fluctuating market values. |
| (c) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (d) | Does not include expenses of the underlying funds in which the Fund invests. |
| (e) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
102
PGIM Short Duration High Yield Income Fund
Schedule of Investments
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
LONG-TERM INVESTMENTS 96.4% | | | | | | | | | | | | | | | | |
| | | | |
ASSET-BACKED SECURITIES 3.4% | | | | | | | | | | | | | | | | |
| | | | |
Collateralized Loan Obligations | | | | | | | | | | | | | | | | |
| | | | |
Atlas Static Senior Loan Fund Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2022-01A, Class AR, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.750% (Cap N/A, Floor 1.750%) | | | 7.051%(c) | | | | 07/15/30 | | | | 20,255 | | | $ | 20,339,924 | |
| | | | |
Battalion CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2015-09A, Class AR, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.362% (Cap N/A, Floor 1.100%) | | | 6.663(c) | | | | 07/15/31 | | | | 21,321 | | | | 21,344,198 | |
| | | | |
BlueMountain CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2016-02A, Class A1R2, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.382% (Cap N/A, Floor 1.120%) | | | 6.510(c) | | | | 08/20/32 | | | | 20,000 | | | | 20,013,728 | |
| | | | |
BlueMountain Fuji US CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2017-02A, Class A1AR, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.262% (Cap N/A, Floor 0.000%) | | | 6.544(c) | | | | 10/20/30 | | | | 2,981 | | | | 2,982,136 | |
| | | | |
Carlyle Global Market Strategies CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2014-03RA, Class A1A, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.312% (Cap N/A, Floor 0.000%) | | | 6.575(c) | | | | 07/27/31 | | | | 2,921 | | | | 2,922,368 | |
| | | | |
Madison Park Funding Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2019-33A, Class AR, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.290% (Cap N/A, Floor 1.290%) | | | 6.591(c) | | | | 10/15/32 | | | | 7,500 | | | | 7,503,659 | |
| | | | |
OFSI BSL Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2018-01A, Class AR, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.190% (Cap N/A, Floor 1.190%) | | | 6.491(c) | | | | 07/15/31 | | | | 19,307 | | | | 19,339,634 | |
| | | | |
Sound Point CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2018-03A, Class A1AR, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.300% (Cap N/A, Floor 1.300%) | | | 6.579(c) | | | | 10/26/31 | | | | 13,536 | | | | 13,528,525 | |
| | | | |
Trinitas CLO Ltd. (Bermuda), | | | | | | | | | | | | | | | | |
Series 2023-26A, Class A1, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.690% (Cap N/A, Floor 1.690%) | | | 6.972(c) | | | | 01/20/35 | | | | 30,000 | | | | 30,066,999 | |
| | | | |
Voya CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2015-03A, Class A1R3, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.150% (Cap N/A, Floor 1.150%) | | | 6.432(c) | | | | 10/20/31 | | | | 25,863 | | | | 25,864,977 | |
| | | | |
Wellfleet CLO Ltd. (Cayman Islands), | | | | | | | | | | | | | | | | |
Series 2018-02A, Class A1, 144A, 3 Month SOFR + | | | | | | | | | | | | | | | | |
1.462% (Cap N/A, Floor 1.200%) | | | 6.744(c) | | | | 10/20/31 | | | | 4,071 | | | | 4,070,941 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL ASSET-BACKED SECURITIES
(cost $167,073,688) | | | | | | | | | | | | | | | 167,977,089 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 103
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS 77.9% | |
|
Advertising 0.2% | |
Clear Channel Outdoor Holdings, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.125% | | | | 08/15/27 | | | | 4,250 | | | $ | 4,152,476 | |
Sr. Sec’d. Notes, 144A | | | 9.000 | | | | 09/15/28 | | | | 4,725 | | | | 5,024,361 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 9,176,837 | |
| | | | |
Aerospace & Defense 1.5% | | | | | | | | | | | | | | | | |
Bombardier, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 02/15/28 | | | | 26,567 | | | | 26,500,582 | |
Sr. Unsec’d. Notes, 144A | | | 7.125 | | | | 06/15/26 | | | | 7,464 | | | | 7,594,620 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 02/01/29 | | | | 2,995 | | | | 3,152,238 | |
Sr. Unsec’d. Notes, 144A | | | 7.875 | | | | 04/15/27 | | | | 6,989 | | | | 7,023,945 | |
TransDigm, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.625 | | | | 01/15/29 | | | | 568 | | | | 546,496 | |
Gtd. Notes | | | 5.500 | | | | 11/15/27 | | | | 20,458 | | | | 20,330,576 | |
Sr. Sec’d. Notes, 144A | | | 6.375 | | | | 03/01/29 | | | | 8,910 | | | | 9,177,597 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 74,326,054 | |
|
Agriculture 0.1% | |
Vector Group Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.750 | | | | 02/01/29 | | | | 4,635 | | | | 4,701,714 | |
|
Airlines 1.2% | |
American Airlines, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.250 | | | | 02/15/28 | | | | 2,925 | | | | 2,943,528 | |
American Airlines, Inc./AAdvantage Loyalty IP Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 04/20/26 | | | | 23,374 | | | | 23,253,911 | |
United Airlines, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 04/15/26 | | | | 6,737 | | | | 6,580,581 | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 04/15/29 | | | | 9,400 | | | | 8,951,088 | |
VistaJet Malta Finance PLC/Vista Management Holding, Inc. (Switzerland), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.875 | | | | 05/01/27 | | | | 11,573 | | | | 10,849,688 | |
Sr. Unsec’d. Notes, 144A | | | 9.500 | | | | 06/01/28 | | | | 5,322 | | | | 4,976,070 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 57,554,866 | |
See Notes to Financial Statements.
104
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Apparel 0.2% | |
Hanesbrands, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.875% | | | | 05/15/26 | | | | 1,475 | | | $ | 1,465,630 | |
William Carter Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625 | | | | 03/15/27 | | | | 7,240 | | | | 7,230,317 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 8,695,947 | |
| | | | |
Auto Manufacturers 1.6% | | | | | | | | | | | | | | | | |
Ford Motor Credit Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.300 | | | | 02/10/25 | | | | 5,800 | | | | 5,715,018 | |
Sr. Unsec’d. Notes | | | 2.700 | | | | 08/10/26 | | | | 1,750 | | | | 1,672,433 | |
Sr. Unsec’d. Notes | | | 2.900 | | | | 02/16/28 | | | | 12,250 | | | | 11,334,537 | |
Sr. Unsec’d. Notes | | | 3.375 | | | | 11/13/25 | | | | 3,500 | | | | 3,420,930 | |
Sr. Unsec’d. Notes | | | 3.664 | | | | 09/08/24 | | | | 2,825 | | | | 2,825,000 | |
Sr. Unsec’d. Notes | | | 4.125 | | | | 08/17/27 | | | | 3,207 | | | | 3,119,321 | |
Sr. Unsec’d. Notes | | | 4.134 | | | | 08/04/25 | | | | 8,500 | | | | 8,406,678 | |
Sr. Unsec’d. Notes | | | 4.950 | | | | 05/28/27 | | | | 2,300 | | | | 2,287,735 | |
Sr. Unsec’d. Notes | | | 5.125 | | | | 06/16/25 | | | | 2,000 | | | | 1,994,606 | |
Sr. Unsec’d. Notes | | | 6.800 | | | | 05/12/28 | | | | 3,227 | | | | 3,385,772 | |
Sr. Unsec’d. Notes | | | 6.950 | | | | 03/06/26 | | | | 3,800 | | | | 3,886,479 | |
Sr. Unsec’d. Notes | | | 7.350 | | | | 11/04/27 | | | | 9,750 | | | | 10,321,373 | |
Sr. Unsec’d. Notes, GMTN | | | 4.389 | | | | 01/08/26 | | | | 1,765 | | | | 1,743,985 | |
Jaguar Land Rover Automotive PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 10/15/25 | | | | 6,625 | | | | 6,648,850 | |
PM General Purchaser LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 10/01/28 | | | | 10,375 | | | | 10,637,859 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 77,400,576 | |
| | | | |
Auto Parts & Equipment 1.5% | | | | | | | | | | | | | | | | |
Adient Global Holdings Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.875 | | | | 08/15/26 | | | | 6,695 | | | | 6,611,313 | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 04/15/28 | | | | 2,820 | | | | 2,890,500 | |
American Axle & Manufacturing, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.250 | | | | 03/15/26 | | | | 351 | | | | 352,245 | |
Gtd. Notes | | | 6.500 | | | | 04/01/27 | | | | 5,040 | | | | 5,068,331 | |
Clarios Global LP/Clarios US Finance Co., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.500 | | | | 05/15/27 | | | | 10,600 | | | | 10,706,000 | |
Dana Financing Luxembourg Sarl, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 04/15/25 | | | | 4,737 | | | | 4,725,158 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 105
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Auto Parts & Equipment (cont’d.) | |
Dana, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.375% | | | | 11/15/27 | | | | 2,400 | | | $ | 2,377,835 | |
Sr. Unsec’d. Notes | | | 5.625 | | | | 06/15/28 | | | | 3,700 | | | | 3,650,212 | |
Phinia, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 04/15/29 | | | | 3,055 | | | | 3,136,450 | |
Tenneco, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 11/17/28 | | | | 32,372 | | | | 30,216,474 | |
Titan International, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 7.000 | | | | 04/30/28 | | | | 2,300 | | | | 2,248,287 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 71,982,805 | |
| | | | |
Banks 1.1% | | | | | | | | | | | | | | | | |
Freedom Mortgage Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.625 | | | | 01/15/27 | | | | 13,850 | | | | 13,673,456 | |
Sr. Unsec’d. Notes, 144A | | | 7.625 | | | | 05/01/26 | | | | 21,823 | | | | 21,949,742 | |
Sr. Unsec’d. Notes, 144A | | | 12.000 | | | | 10/01/28 | | | | 2,950 | | | | 3,212,907 | |
Popular, Inc. (Puerto Rico), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 7.250 | | | | 03/13/28 | | | | 13,700 | | | | 14,316,500 | |
UBS AG (Switzerland), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, MTN | | | 3.625 | | | | 09/09/24 | | | | 2,170 | | | | 2,169,023 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 55,321,628 | |
| | | | |
Building Materials 1.5% | | | | | | | | | | | | | | | | |
Builders FirstSource, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 03/01/30 | | | | 1,490 | | | | 1,446,624 | |
Eco Material Technologies, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.875 | | | | 01/31/27 | | | | 6,615 | | | | 6,686,011 | |
Griffon Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.750 | | | | 03/01/28 | | | | 6,375 | | | | 6,254,593 | |
JELD-WEN, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 12/15/25 | | | | 4,570 | | | | 4,568,052 | |
Gtd. Notes, 144A | | | 4.875 | | | | 12/15/27 | | | | 11,045 | | | | 10,721,752 | |
Smyrna Ready Mix Concrete LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.000 | | | | 11/01/28 | | | | 4,600 | | | | 4,586,824 | |
See Notes to Financial Statements.
106
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Building Materials (cont’d.) | |
Standard Industries, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.750% | | | | 01/15/28 | | | | 5,600 | | | $ | 5,456,101 | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 02/15/27 | | | | 36,688 | | | | 36,189,505 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 75,909,462 | |
| | | | |
Chemicals 1.4% | | | | | | | | | | | | | | | | |
Avient Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.750 | | | | 05/15/25 | | | | 27,462 | | | | 27,443,770 | |
Cornerstone Chemical Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, Cash coupon 5.000% and PIK 10.000%^ | | | 15.000 | | | | 12/06/28 | | | | 2,688 | | | | 2,687,572 | |
Olympus Water US Holding Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.250 | | | | 10/01/28 | | | | 3,481 | | | | 3,275,759 | |
Sr. Sec’d. Notes, 144A | | | 9.750 | | | | 11/15/28 | | | | 7,775 | | | | 8,294,795 | |
Rain CII Carbon LLC/CII Carbon Corp., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 7.250 | | | | 04/01/25 | | | | 363 | | | | 358,601 | |
SNF Group SACA (France), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.125 | | | | 03/15/27 | | | | 18,392 | | | | 17,196,520 | |
TPC Group, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 13.000 | | | | 12/16/27 | | | | 4,595 | | | | 4,663,404 | |
WR Grace Holdings LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.875 | | | | 06/15/27 | | | | 4,615 | | | | 4,519,609 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 68,440,030 | |
| | | | |
Coal 0.1% | | | | | | | | | | | | | | | | |
Conuma Resources Ltd. (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 13.125 | | | | 05/01/28 | | | | 6,368 | | | | 6,511,280 | |
| | | | |
Commercial Services 2.6% | | | | | | | | | | | | | | | | |
Adtalem Global Education, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 03/01/28 | | | | 3,503 | | | | 3,443,725 | |
Allied Universal Holdco LLC/Allied Universal Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.750 | | | | 07/15/27 | | | | 10,774 | | | | 10,786,535 | |
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 Sarl, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 06/01/28 | | | | 10,366 | | | | 9,585,958 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 107
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Commercial Services (cont’d.) | |
Allied Universal Holdco LLC/Allied Universal Finance Corp./Atlas Luxco 4 Sarl, (cont’d.) | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.625% | | | | 06/01/28 | | | | 3,625 | | | $ | 3,344,062 | |
Alta Equipment Group, Inc., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 9.000 | | | | 06/01/29 | | | | 6,060 | | | | 5,500,365 | |
AMN Healthcare, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.000 | | | | 04/15/29 | | | | 2,520 | | | | 2,353,126 | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/01/27 | | | | 28,075 | | | | 27,477,794 | |
Avis Budget Car Rental LLC/Avis Budget Finance, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 04/01/28 | | | | 1,020 | | | | 947,096 | |
Gtd. Notes, 144A | | | 5.750 | | | | 07/15/27 | | | | 6,575 | | | | 6,391,707 | |
Gtd. Notes, 144A | | | 5.750 | | | | 07/15/27 | | | | 13,920 | | | | 13,567,493 | |
Brink’s Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/15/27 | | | | 1,086 | | | | 1,060,593 | |
Gtd. Notes, 144A | | | 6.500 | | | | 06/15/29 | | | | 1,100 | | | | 1,140,003 | |
Herc Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 07/15/27 | | | | 14,941 | | | | 14,836,777 | |
Gtd. Notes, 144A | | | 6.625 | | | | 06/15/29 | | | | 3,505 | | | | 3,605,736 | |
Hertz Corp. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 12/01/26 | | | | 3,625 | | | | 2,844,978 | |
Mavis Tire Express Services Topco Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 05/15/29 | | | | 5,268 | | | | 5,076,405 | |
NESCO Holdings II, Inc., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 5.500 | | | | 04/15/29 | | | | 8,450 | | | | 7,809,636 | |
Service Corp. International, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.625 | | | | 12/15/27 | | | | 4,725 | | | | 4,639,770 | |
United Rentals North America, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.875 | | | | 01/15/28 | | | | 1,275 | | | | 1,256,914 | |
VT Topco, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.500 | | | | 08/15/30 | | | | 2,175 | | | | 2,284,572 | |
Williams Scotsman, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 06/15/29 | | | | 2,120 | | | | 2,187,009 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 130,140,254 | |
| | | | |
Computers 0.7% | | | | | | | | | | | | | | | | |
CA Magnum Holdings (India), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.375 | | | | 10/31/26 | | | | 2,100 | | | | 2,046,187 | |
Fortress Intermediate 3, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 06/01/31 | | | | 4,940 | | | | 5,130,476 | |
See Notes to Financial Statements.
108
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Computers (cont’d.) | |
NCR Voyix Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000% | | | | 10/01/28 | | | | 17,450 | | | $ | 17,215,859 | |
Gtd. Notes, 144A | | | 5.125 | | | | 04/15/29 | | | | 5,414 | | | | 5,314,690 | |
Gtd. Notes, 144A | | | 5.250 | | | | 10/01/30 | | | | 3,950 | | | | 3,845,503 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 33,552,715 | |
| | | | |
Distribution/Wholesale 0.4% | | | | | | | | | | | | | | | | |
H&E Equipment Services, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.875 | | | | 12/15/28 | | | | 20,949 | | | | 19,404,735 | |
Ritchie Bros Holdings, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 03/15/28 | | | | 975 | | | | 1,001,813 | |
Velocity Vehicle Group LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.000 | | | | 06/01/29 | | | | 1,615 | | | | 1,678,965 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 22,085,513 | |
| | | | |
Diversified Financial Services 5.0% | | | | | | | | | | | | | | | | |
Bread Financial Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.750 | | | | 03/15/29 | | | | 10,860 | | | | 11,724,680 | |
Freedom Mortgage Holdings LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.250 | | | | 02/01/29 | | | | 9,035 | | | | 9,250,152 | |
GGAM Finance Ltd. (Ireland), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.875 | | | | 04/15/29 | | | | 3,185 | | | | 3,288,513 | |
Gtd. Notes, 144A | | | 8.000 | | | | 02/15/27 | | | | 9,075 | | | | 9,438,000 | |
Sr. Unsec’d. Notes, 144A | | | 8.000 | | | | 06/15/28 | | | | 7,375 | | | | 7,882,031 | |
goeasy Ltd. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.375 | | | | 05/01/26 | | | | 14,150 | | | | 13,778,563 | |
Gtd. Notes, 144A | | | 9.250 | | | | 12/01/28 | | | | 432 | | | | 463,320 | |
Sr. Unsec’d. Notes, 144A | | | 7.625 | | | | 07/01/29 | | | | 1,640 | | | | 1,684,280 | |
Intercontinental Exchange, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.625 | | | | 09/01/28 | | | | 10,253 | | | | 9,930,459 | |
LD Holdings Group LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 04/01/28 | | | | 3,750 | | | | 3,176,639 | |
LFS Topco LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 10/15/26 | | | | 3,725 | | | | 3,463,865 | |
Macquarie Airfinance Holdings Ltd. (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.400 | | | | 03/26/29 | | | | 15,900 | | | | 16,426,479 | |
Sr. Unsec’d. Notes, 144A | | | 8.125 | | | | 03/30/29 | | | | 2,225 | | | | 2,366,819 | |
Sr. Unsec’d. Notes, 144A | | | 8.375 | | | | 05/01/28 | | | | 1,175 | | | | 1,241,795 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 109
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
CORPORATE BONDS (Continued) | |
|
Diversified Financial Services (cont’d.) | |
Nationstar Mortgage Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125% | | | | 12/15/30 | | | | 2,500 | | | $ | 2,374,504 | |
Gtd. Notes, 144A | | | 5.500 | | | | 08/15/28 | | | | 20,195 | | | | 19,851,806 | |
Gtd. Notes, 144A | | | 6.000 | | | | 01/15/27 | | | | 13,500 | | | | 13,480,211 | |
Gtd. Notes, 144A | | | 6.500 | | | | 08/01/29 | | | | 3,145 | | | | 3,169,101 | |
Navient Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.875 | | | | 03/15/28 | | | | 10,240 | | | | 9,756,444 | |
Sr. Unsec’d. Notes | | | 5.000 | | | | 03/15/27 | | | | 4,448 | | | | 4,357,912 | |
Sr. Unsec’d. Notes | | | 5.500 | | | | 03/15/29 | | | | 2,800 | | | | 2,663,068 | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 10/25/24 | | | | 500 | | | | 499,501 | |
Sr. Unsec’d. Notes | | | 6.750 | | | | 06/25/25 | | | | 5,150 | | | | 5,167,188 | |
Sr. Unsec’d. Notes | | | 6.750 | | | | 06/15/26 | | | | 2,400 | | | | 2,442,203 | |
OneMain Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 3.875 | | | | 09/15/28 | | | | 8,008 | | | | 7,375,863 | |
Gtd. Notes | | | 4.000 | | | | 09/15/30 | | | | 7,050 | | | | 6,240,407 | |
Gtd. Notes | | | 6.625 | | | | 01/15/28 | | | | 4,475 | | | | 4,555,515 | |
Gtd. Notes | | | 7.125 | | | | 03/15/26 | | | | 17,838 | | | | 18,173,394 | |
PennyMac Financial Services, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.250 | | | | 02/15/29 | | | | 6,400 | | | | 6,047,691 | |
Gtd. Notes, 144A | | | 5.375 | | | | 10/15/25 | | | | 19,041 | | | | 18,964,476 | |
Gtd. Notes, 144A | | | 7.875 | | | | 12/15/29 | | | | 1,757 | | | | 1,864,898 | |
PRA Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.875 | | | | 01/31/30 | | | | 3,035 | | | | 3,139,526 | |
Rocket Mortgage LLC/Rocket Mortgage Co-Issuer, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 2.875 | | | | 10/15/26 | | | | 19,969 | | | | 19,007,208 | |
Gtd. Notes, 144A | | | 3.625 | | | | 03/01/29 | | | | 4,550 | | | | 4,228,939 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 247,475,450 | |
| | | | |
Electric 3.0% | | | | | | | | | | | | | | | | |
Calpine Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.500 | | | | 02/15/28 | | | | 15,660 | | | | 15,185,527 | |
Sr. Sec’d. Notes, 144A | | | 5.250 | | | | 06/01/26 | | | | 465 | | | | 462,509 | |
Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 03/15/28 | | | | 17,347 | | | | 16,945,564 | |
NRG Energy, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.750 | | | | 01/15/28 | | | | 13,524 | | | | 13,534,892 | |
Gtd. Notes, 144A | | | 5.250 | | | | 06/15/29 | | | | 24,775 | | | | 24,544,583 | |
Vistra Operations Co. LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.375 | | | | 05/01/29 | | | | 21,640 | | | | 20,730,124 | |
Gtd. Notes, 144A | | | 5.000 | | | | 07/31/27 | | | | 39,591 | | | | 39,187,866 | |
See Notes to Financial Statements.
110
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Electric (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Vistra Operations Co. LLC, (cont’d.) | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500% | | | | 09/01/26 | | | | 7,892 | | | $ | 7,885,521 | |
Gtd. Notes, 144A | | | 5.625 | | | | 02/15/27 | | | | 10,500 | | | | 10,485,719 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 148,962,305 | |
| | | | |
Electrical Components & Equipment 0.6% | | | | | | | | | | | | | | | | |
| | | | |
Energizer Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.750 | | | | 06/15/28 | | | | 6,623 | | | | 6,392,132 | |
Gtd. Notes, 144A | | | 6.500 | | | | 12/31/27 | | | | 16,843 | | | | 16,999,169 | |
WESCO Distribution, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.375 | | | | 03/15/29 | | | | 3,450 | | | | 3,545,539 | |
Gtd. Notes, 144A | | | 7.250 | | | | 06/15/28 | | | | 2,802 | | | | 2,875,019 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 29,811,859 | |
| | | | |
Electronics 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Sensata Technologies BV, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | | | | | | | | | | | | | | |
| | | | |
| | | 4.000 | | | | 04/15/29 | | | | 4,200 | | | | 3,942,750 | |
| | | | |
Engineering & Construction 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Brand Industrial Services, Inc.,
Sr. Sec’d. Notes, 144A | | | 10.375 | | | | 08/01/30 | | | | 700 | | | | 762,991 | |
| | | | |
Entertainment 2.8% | | | | | | | | | | | | | | | | |
| | | | |
Caesars Entertainment, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 10/15/29 | | | | 30,715 | | | | 29,043,012 | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 02/15/30 | | | | 15,950 | | | | 16,537,347 | |
CCM Merger, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.375 | | | | 05/01/26 | | | | 23,044 | | | | 23,028,406 | |
Cinemark USA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 08/01/32 | | | | 2,290 | | | | 2,377,101 | |
International Game Technology PLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.125 | | | | 04/15/26 | | | | 2,700 | | | | 2,639,250 | |
Sr. Sec’d. Notes, 144A | | | 5.250 | | | | 01/15/29 | | | | 860 | | | | 847,100 | |
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 01/15/27 | | | | 8,500 | | | | 8,574,375 | |
Jacobs Entertainment, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.750 | | | | 02/15/29 | | | | 10,875 | | | | 10,364,053 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 111
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Entertainment (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Jacobs Entertainment, Inc., (cont’d.) | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.750% | | | | 02/15/29 | | | | 6,575 | | | $ | 6,240,532 | |
Midwest Gaming Borrower LLC/Midwest Gaming Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.875 | | | | 05/01/29 | | | | 9,503 | | | | 9,083,154 | |
Penn Entertainment, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.125 | | | | 07/01/29 | | | | 1,050 | | | | 940,309 | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 01/15/27 | | | | 24,783 | | | | 24,326,277 | |
Wynn Resorts Finance LLC/Wynn Resorts Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 10/01/29 | | | | 4,575 | | | | 4,474,972 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 138,475,888 | |
| | | | |
Environmental Control 0.1% | | | | | | | | | | | | | | | | |
| | | | |
GFL Environmental, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.000 | | | | 08/01/28 | | | | 2,300 | | | | 2,185,000 | |
Gtd. Notes, 144A | | | 4.375 | | | | 08/15/29 | | | | 841 | | | | 798,168 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 2,983,168 | |
| | | | |
Foods 1.8% | | | | | | | | | | | | | | | | |
| | | | |
Albertson’s Cos., Inc./Safeway, Inc./New Albertson’s LP/Albertson’s LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 01/15/27 | | | | 13,125 | | | | 12,835,944 | |
Gtd. Notes, 144A | | | 5.875 | | | | 02/15/28 | | | | 5,200 | | | | 5,189,870 | |
B&G Foods, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.250 | | | | 04/01/25 | | | | 17,028 | | | | 16,865,221 | |
Gtd. Notes | | | 5.250 | | | | 09/15/27 | | | | 20,976 | | | | 19,867,411 | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 09/15/28 | | | | 6,230 | | | | 6,475,310 | |
Bellis Acquisition Co. PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.125 | | | | 05/14/30 | | | | GBP6,950 | | | | 8,855,072 | |
Lamb Weston Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 01/31/30 | | | | 5,750 | | | | 5,352,809 | |
Post Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 12/15/29 | | | | 13,360 | | | | 13,122,884 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 88,564,521 | |
See Notes to Financial Statements.
112
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Gas 0.3% | | | | | | | | | | | | | | | | |
| | | | |
AmeriGas Partners LP/AmeriGas Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.500% | | | | 05/20/25 | | | | 2,304 | | | $ | 2,296,315 | |
Sr. Unsec’d. Notes | | | 5.750 | | | | 05/20/27 | | | | 4,429 | | | | 4,334,473 | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 08/20/26 | | | | 6,604 | | | | 6,533,709 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 13,164,497 | |
| | | | |
Healthcare-Products 0.9% | | | | | | | | | | | | | | | | |
| | | | |
Medline Borrower LP,
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 04/01/29 | | | | 48,030 | | | | 45,423,416 | |
| | | | |
Healthcare-Services 1.9% | | | | | | | | | | | | | | | | |
| | | | |
DaVita, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 06/01/30 | | | | 28,740 | | | | 27,048,262 | |
HCA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.050 | | | | 12/01/27 | | | | 15,705 | | | | 16,745,163 | |
Legacy LifePoint Health LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 02/15/27 | | | | 24,405 | | | | 23,828,446 | |
MPH Acquisition Holdings LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 09/01/28 | | | | 6,250 | | | | 4,559,805 | |
Prime Healthcare Services, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.375 | | | | 09/01/29 | | | | 4,070 | | | | 4,100,710 | |
Tenet Healthcare Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 4.250 | | | | 06/01/29 | | | | 10,700 | | | | 10,274,384 | |
Sr. Sec’d. Notes | | | 4.375 | | | | 01/15/30 | | | | 3,500 | | | | 3,348,966 | |
Sr. Sec’d. Notes | | | 4.625 | | | | 06/15/28 | | | | 5,494 | | | | 5,373,704 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 95,279,440 | |
| | | | |
Home Builders 4.6% | | | | | | | | | | | | | | | | |
| | | | |
Ashton Woods USA LLC/Ashton Woods Finance Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 08/01/29 | | | | 16,544 | | | | 15,696,939 | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 04/01/30 | | | | 400 | | | | 376,700 | |
Sr. Unsec’d. Notes, 144A | | | 6.625 | | | | 01/15/28 | | | | 3,260 | | | | 3,286,051 | |
Beazer Homes USA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.875 | | | | 10/15/27 | | | | 16,812 | | | | 16,712,703 | |
Gtd. Notes | | | 7.250 | | | | 10/15/29 | | | | 6,417 | | | | 6,558,576 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 113
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Home Builders (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Brookfield Residential Properties, Inc./Brookfield Residential US LLC (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.250% | | | | 09/15/27 | | | | 31,689 | | | $ | 31,530,555 | |
Empire Communities Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.750 | | | | 05/01/29 | | | | 7,870 | | | | 8,312,688 | |
Forestar Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.850 | | | | 05/15/26 | | | | 20,960 | | | | 20,432,773 | |
Gtd. Notes, 144A | | | 5.000 | | | | 03/01/28 | | | | 7,275 | | | | 7,059,227 | |
KB Home, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.800 | | | | 11/15/29 | | | | 735 | | | | 717,474 | |
Landsea Homes Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.875 | | | | 04/01/29 | | | | 11,965 | | | | 12,374,093 | |
M/I Homes, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.950 | | | | 02/01/28 | | | | 8,649 | | | | 8,483,004 | |
Mattamy Group Corp. (Canada), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.250 | | | | 12/15/27 | | | | 33,644 | | | | 33,181,395 | |
New Home Co., Inc. (The), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.250 | | | | 10/01/29 | | | | 3,975 | | | | 4,142,349 | |
Shea Homes LP/Shea Homes Funding Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 02/15/28 | | | | 6,075 | | | | 5,929,394 | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 04/01/29 | | | | 4,100 | | | | 3,940,043 | |
STL Holding Co. LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.750 | | | | 02/15/29 | | | | 5,345 | | | | 5,617,861 | |
Taylor Morrison Communities, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 01/15/28 | | | | 8,769 | | | | 8,843,012 | |
Gtd. Notes, 144A | | | 5.875 | | | | 06/15/27 | | | | 6,681 | | | | 6,767,502 | |
Gtd. Notes, 144A | | | 6.625 | | | | 07/15/27 | | | | 1,450 | | | | 1,451,061 | |
Tri Pointe Homes, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.250 | | | | 06/01/27 | | | | 21,693 | | | | 21,598,592 | |
Gtd. Notes | | | 5.700 | | | | 06/15/28 | | | | 2,143 | | | | 2,154,211 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 225,166,203 | |
| | | | |
Household Products/Wares 0.2% | | | | | | | | | | | | | | | | |
| | | | |
ACCO Brands Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.250 | | | | 03/15/29 | | | | 10,048 | | | | 9,346,100 | |
See Notes to Financial Statements.
114
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Housewares 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Scotts Miracle-Gro Co. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375% | | | | 02/01/32 | | | | 2,400 | | | $ | 2,163,868 | |
Gtd. Notes | | | 4.500 | | | | 10/15/29 | | | | 7,975 | | | | 7,557,055 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 9,720,923 | |
| | | | |
Insurance 0.6% | | | | | | | | | | | | | | | | |
| | | | |
Acrisure LLC/Acrisure Finance, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.500 | | | | 11/06/30 | | | | 5,710 | | | | 5,869,867 | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 02/01/29 | | | | 9,286 | | | | 9,548,552 | |
Sr. Unsec’d. Notes, 144A | | | 8.500 | | | | 06/15/29 | | | | 3,220 | | | | 3,349,530 | |
AmWINS Group, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.375 | | | | 02/15/29 | | | | 3,000 | | | | 3,074,911 | |
Sr. Unsec’d. Notes, 144A | | | 4.875 | | | | 06/30/29 | | | | 7,925 | | | | 7,556,135 | |
AssuredPartners, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 01/15/29 | | | | 1,900 | | | | 1,815,589 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 31,214,584 | |
| | | | |
Internet 1.6% | | | | | | | | | | | | | | | | |
| | | | |
Cablevision Lightpath LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 09/15/27 | | | | 13,680 | | | | 12,824,452 | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 09/15/28 | | | | 200 | | | | 180,607 | |
Cogent Communications Group LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 3.500 | | | | 05/01/26 | | | | 1,150 | | | | 1,113,993 | |
Gen Digital, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.000 | | | | 04/15/25 | | | | 47,505 | | | | 47,299,542 | |
Go Daddy Operating Co. LLC/GD Finance Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.250 | | | | 12/01/27 | | | | 15,010 | | | | 14,926,638 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 76,345,232 | |
| | | | |
Iron/Steel 0.6% | | | | | | | | | | | | | | | | |
| | | | |
ATI, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 7.250 | | | | 08/15/30 | | | | 1,761 | | | | 1,868,401 | |
Big River Steel LLC/BRS Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 01/31/29 | | | | 11,361 | | | | 11,485,743 | |
Cleveland-Cliffs, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.750 | | | | 04/15/30 | | | | 6,525 | | | | 6,625,267 | |
Gtd. Notes, 144A | | | 7.000 | | | | 03/15/32 | | | | 1,155 | | | | 1,160,299 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 115
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Iron/Steel (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Mineral Resources Ltd. (Australia), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 9.250% | | | | 10/01/28 | | | | 7,528 | | | $ | 7,970,270 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 29,109,980 | |
| | | | |
Leisure Time 5.3% | | | | | | | | | | | | | | | | |
| | | | |
Amer Sports Co. (Finland), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 02/16/31 | | | | 3,475 | | | | 3,509,750 | |
Carnival Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 03/01/27 | | | | 35,725 | | | | 35,725,000 | |
Gtd. Notes, 144A | | | 6.000 | | | | 05/01/29 | | | | 4,455 | | | | 4,460,613 | |
Sr. Sec’d. Notes, 144A | | | 4.000 | | | | 08/01/28 | | | | 23,225 | | | | 22,121,812 | |
Carnival Holdings Bermuda Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 10.375 | | | | 05/01/28 | | | | 3,787 | | | | 4,097,301 | |
Lindblad Expeditions Holdings, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 9.000 | | | | 05/15/28 | | | | 6,475 | | | | 6,718,819 | |
Lindblad Expeditions LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 02/15/27 | | | | 20,525 | | | | 20,391,108 | |
NCL Corp. Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 03/15/26 | | | | 32,182 | | | | 32,051,261 | |
Sr. Sec’d. Notes, 144A | | | 5.875 | | | | 02/15/27 | | | | 9,716 | | | | 9,703,855 | |
Sr. Sec’d. Notes, 144A | | | 8.125 | | | | 01/15/29 | | | | 6,925 | | | | 7,411,689 | |
Sr. Sec’d. Notes, 144A | | | 8.375 | | | | 02/01/28 | | | | 3,250 | | | | 3,424,687 | |
Sr. Unsec’d. Notes, 144A | | | 3.625 | | | | 12/15/24 | | | | 11,139 | | | | 11,041,534 | |
Sr. Unsec’d. Notes, 144A | | | 7.750 | | | | 02/15/29 | | | | 8,700 | | | | 9,276,375 | |
Royal Caribbean Cruises Ltd., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 7.500 | | | | 10/15/27 | | | | 3,000 | | | | 3,187,500 | |
Sr. Unsec’d. Notes, 144A | | | 5.375 | | | | 07/15/27 | | | | 11,894 | | | | 11,928,612 | |
Sr. Unsec’d. Notes, 144A | | | 5.500 | | | | 04/01/28 | | | | 26,260 | | | | 26,367,141 | |
Viking Cruises Ltd., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 09/15/27 | | | | 19,275 | | | | 19,248,593 | |
Gtd. Notes, 144A | | | 6.250 | | | | 05/15/25 | | | | 3,000 | | | | 2,999,310 | |
Sr. Unsec’d. Notes, 144A | | | 7.000 | | | | 02/15/29 | | | | 10,875 | | | | 10,997,344 | |
Sr. Unsec’d. Notes, 144A | | | 9.125 | | | | 07/15/31 | | | | 4,800 | | | | 5,262,000 | |
Viking Ocean Cruises Ship VII Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.625 | | | | 02/15/29 | | | | 1,500 | | | | 1,481,250 | |
VOC Escrow Ltd., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.000 | | | | 02/15/28 | | | | 8,800 | | | | 8,614,210 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 260,019,764 | |
See Notes to Financial Statements.
116
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Lodging 2.7% | | | | | | | | | | | | | | | | |
| | | | |
Boyd Gaming Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.750% | | | | 12/01/27 | | | | 1,725 | | | $ | 1,696,481 | |
Gtd. Notes, 144A | | | 4.750 | | | | 06/15/31 | | | | 2,375 | | | | 2,233,515 | |
Genting New York LLC/GENNY Capital, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.300 | | | | 02/15/26 | | | | 14,986 | | | | 14,495,847 | |
Hilton Domestic Operating Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.875 | | | | 04/01/29 | | | | 4,320 | | | | 4,399,847 | |
Las Vegas Sands Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 2.900 | | | | 06/25/25 | | | | 900 | | | | 879,992 | |
Sr. Unsec’d. Notes | | | 3.500 | | | | 08/18/26 | | | | 700 | | | | 679,694 | |
MGM Resorts International, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.625 | | | | 09/01/26 | | | | 14,002 | | | | 13,805,731 | |
Gtd. Notes | | | 4.750 | | | | 10/15/28 | | | | 15,964 | | | | 15,548,858 | |
Gtd. Notes | | | 5.500 | | | | 04/15/27 | | | | 17,725 | | | | 17,727,201 | |
Gtd. Notes | | | 5.750 | | | | 06/15/25 | | | | 965 | | | | 964,342 | |
Station Casinos LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.500 | | | | 02/15/28 | | | | 6,325 | | | | 6,076,507 | |
Sugarhouse HSP Gaming Prop Mezz LP/Sugarhouse HSP Gaming Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.875 | | | | 05/15/25 | | | | 24,058 | | | | 24,007,784 | |
Wynn Las Vegas LLC/Wynn Las Vegas Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.250 | | | | 05/15/27 | | | | 6,875 | | | | 6,829,089 | |
Wynn Macau Ltd. (Macau), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.500 | | | | 10/01/27 | | | | 17,000 | | | | 16,436,280 | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 08/26/28 | | | | 4,962 | | | | 4,728,786 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 130,509,954 | |
| | | | |
Machinery-Construction & Mining 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Terex Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 05/15/29 | | | | 2,000 | | | | 1,943,194 | |
| | | | |
Machinery-Diversified 0.7% | | | | | | | | | | | | | | | | |
| | | | |
Maxim Crane Works Holdings Capital LLC, | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 11.500 | | | | 09/01/28 | | | | 9,365 | | | | 9,745,153 | |
TK Elevator US Newco, Inc. (Germany), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.250 | | | | 07/15/27 | | | | 26,957 | | | | 26,451,556 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 36,196,709 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 117
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Media 4.2% | | | | | | | | | | | | | | | | |
| | | | |
CCO Holdings LLC/CCO Holdings Capital Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.000% | | | | 02/01/28 | | | | 2,461 | | | $ | 2,367,399 | |
Sr. Unsec’d. Notes, 144A | | | 5.125 | | | | 05/01/27 | | | | 35,979 | | | | 35,304,385 | |
Sr. Unsec’d. Notes, 144A | | | 5.500 | | | | 05/01/26 | | | | 20,679 | | | | 20,623,876 | |
CSC Holdings LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.375 | | | | 02/15/31 | | | | 200 | | | | 129,115 | |
Gtd. Notes, 144A | | | 4.125 | | | | 12/01/30 | | | | 200 | | | | 131,442 | |
Gtd. Notes, 144A | | | 5.375 | | | | 02/01/28 | | | | 4,950 | | | | 3,796,029 | |
Gtd. Notes, 144A | | | 5.500 | | | | 04/15/27 | | | | 5,071 | | | | 4,149,566 | |
Sr. Unsec’d. Notes, 144A | | | 4.625 | | | | 12/01/30 | | | | 200 | | | | 78,140 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 04/01/28 | | | | 1,238 | | | | 622,145 | |
Diamond Sports Group LLC/Diamond Sports Finance Co., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $74,250; purchased 01/31/24)(f) | | | 6.625 | | | | 08/15/27(d) | | | | 1,100 | | | | 20,140 | |
Sec’d. Notes, 144A (original cost $15,609,994;purchased 07/18/19 - 07/05/22)(f) | | | 5.375 | | | | 08/15/26(d) | | | | 18,919 | | | | 242,961 | |
DISH DBS Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.125 | | | | 06/01/29 | | | | 950 | | | | 433,476 | |
Gtd. Notes | | | 5.875 | | | | 11/15/24 | | | | 17,902 | | | | 17,317,379 | |
Gtd. Notes | | | 7.375 | | | | 07/01/28 | | | | 725 | | | | 372,381 | |
Gtd. Notes | | | 7.750 | | | | 07/01/26 | | | | 44,200 | | | | 29,881,041 | |
DISH Network Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 11.750 | | | | 11/15/27 | | | | 11,050 | | | | 11,229,910 | |
Nexstar Media, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625 | | | | 07/15/27 | | | | 7,296 | | | | 7,129,890 | |
Radiate Holdco LLC/Radiate Finance, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.500 | | | | 09/15/26 | | | | 24,349 | | | | 19,285,438 | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 09/15/28 | | | | 2,000 | | | | 1,100,228 | |
Sinclair Television Group, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 02/15/27 | | | | 9,731 | | | | 8,289,539 | |
Univision Communications, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.625 | | | | 06/01/27 | | | | 12,490 | | | | 12,363,568 | |
Sr. Sec’d. Notes, 144A | | | 8.000 | | | | 08/15/28 | | | | 16,915 | | | | 17,103,164 | |
Virgin Media Secured Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.500 | | | | 05/15/29 | | | | 14,425 | | | | 13,657,157 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 205,628,369 | |
See Notes to Financial Statements.
118
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Mining 2.0% | | | | | | | | | | | | | | | | |
| | | | |
Arsenal AIC Parent LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.000% | | | | 10/01/30 | | | | 1,750 | | | $ | 1,884,126 | |
Eldorado Gold Corp. (Turkey), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.250 | | | | 09/01/29 | | | | 1,550 | | | | 1,530,982 | |
First Quantum Minerals Ltd. (Zambia), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.875 | | | | 10/15/27 | | | | 8,600 | | | | 8,505,916 | |
Sec’d. Notes, 144A | | | 9.375 | | | | 03/01/29 | | | | 3,215 | | | | 3,404,942 | |
Freeport-McMoRan, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375 | | | | 08/01/28 | | | | 1,820 | | | | 1,794,420 | |
Hecla Mining Co., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.250 | | | | 02/15/28 | | | | 4,975 | | | | 5,059,152 | |
Hudbay Minerals, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.500 | | | | 04/01/26 | | | | 21,760 | | | | 21,433,600 | |
New Gold, Inc. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.500 | | | | 07/15/27 | | | | 14,123 | | | | 14,246,576 | |
Novelis Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.250 | | | | 11/15/26 | | | | 25,674 | | | | 24,713,659 | |
Gtd. Notes, 144A | | | 4.750 | | | | 01/30/30 | | | | 12,710 | | | | 12,169,161 | |
Taseko Mines Ltd. (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.250 | | | | 05/01/30 | | | | 1,545 | | | | 1,602,937 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 96,345,471 | |
| | | | |
Miscellaneous Manufacturing 0.3% | | | | | | | | | | | | | | | | |
| | | | |
Amsted Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.625 | | | | 07/01/27 | | | | 10,291 | | | | 10,262,664 | |
Trinity Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.750 | | | | 07/15/28 | | | | 6,635 | | | | 6,951,596 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 17,214,260 | |
| | | | |
Oil & Gas 4.1% | | | | | | | | | | | | | | | | |
| | | | |
Aethon United BR LP/Aethon United Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 02/15/26 | | | | 10,000 | | | | 10,133,754 | |
Alta Mesa Holdings LP/Alta Mesa Finance Services Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.875 | | | | 12/15/24(d) | | | | 10,985 | | | | 1,099 | |
Ascent Resources Utica Holdings LLC/ARU Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 11/01/26 | | | | 1,575 | | | | 1,580,999 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 119
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Oil & Gas (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Ascent Resources Utica Holdings LLC/ARU Finance Corp., (cont’d.) | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.000% | | | | 11/01/27 | | | | 8,789 | | | $ | 10,736,998 | |
Sr. Unsec’d. Notes, 144A | | | 8.250 | | | | 12/31/28 | | | | 19,888 | | | | 20,484,231 | |
Chesapeake Energy Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $2,425,000;purchased 02/02/21)(f) | | | 5.500 | | | | 02/01/26 | | | | 2,425 | | | | 2,423,644 | |
CITGO Petroleum Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.375 | | | | 06/15/26 | | | | 10,350 | | | | 10,404,091 | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 06/15/25 | | | | 9,285 | | | | 9,299,657 | |
Civitas Resources, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.375 | | | | 07/01/28 | | | | 8,750 | | | | 9,241,943 | |
Gtd. Notes, 144A | | | 8.625 | | | | 11/01/30 | | | | 1,350 | | | | 1,470,245 | |
Crescent Energy Finance LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 9.250 | | | | 02/15/28 | | | | 8,485 | | | | 8,979,010 | |
Diamond Foreign Asset Co./Diamond Finance LLC, | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 8.500 | | | | 10/01/30 | | | | 1,275 | | | | 1,340,535 | |
Endeavor Energy Resources LP/EER Finance, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.750 | | | | 01/30/28 | | | | 9,993 | | | | 10,184,869 | |
Hilcorp Energy I LP/Hilcorp Finance Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.750 | | | | 02/01/29 | | | | 1,200 | | | | 1,192,375 | |
Sr. Unsec’d. Notes, 144A | | | 6.250 | | | | 11/01/28 | | | | 2,608 | | | | 2,623,556 | |
Kraken Oil & Gas Partners LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.625 | | | | 08/15/29 | | | | 2,235 | | | | 2,303,710 | |
Nabors Industries, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.375 | | | | 05/15/27 | | | | 15,906 | | | | 16,078,744 | |
Noble Finance II LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.000 | | | | 04/15/30 | | | | 5,115 | | | | 5,310,707 | |
Parkland Corp. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.500 | | | | 10/01/29 | | | | 4,150 | | | | 3,907,806 | |
Gtd. Notes, 144A | | | 5.875 | | | | 07/15/27 | | | | 11,915 | | | | 11,855,425 | |
Precision Drilling Corp. (Canada), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.125 | | | | 01/15/26 | | | | 3,376 | | | | 3,371,780 | |
Preem Holdings AB (Sweden), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 12.000 | | | | 06/30/27 | | | EUR | 9,360 | | | | 10,990,823 | |
SM Energy Co., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.750 | | | | 08/01/29 | | | | 2,980 | | | | 3,029,396 | |
Southwestern Energy Co., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.375 | | | | 02/01/29 | | | | 4,975 | | | | 4,912,099 | |
Gtd. Notes | | | 5.375 | | | | 03/15/30 | | | | 4,630 | | | | 4,591,896 | |
Gtd. Notes | | | 8.375 | | | | 09/15/28 | | | | 12,534 | | | | 12,915,239 | |
See Notes to Financial Statements.
120
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Oil & Gas (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Sunoco LP, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000% | | | | 05/01/29 | | | | 3,410 | | | $ | 3,554,021 | |
Sunoco LP/Sunoco Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.875 | | | | 03/15/28 | | | | 1,490 | | | | 1,492,407 | |
Gtd. Notes | | | 6.000 | | | | 04/15/27 | | | | 6,575 | | | | 6,593,086 | |
Transocean, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 8.250 | | | | 05/15/29 | | | | 7,665 | | | | 7,741,650 | |
Gtd. Notes, 144A | | | 8.500 | | | | 05/15/31 | | | | 615 | | | | 624,317 | |
Valaris Ltd., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 8.375 | | | | 04/30/30 | | | | 2,200 | | | | 2,294,798 | |
Vital Energy, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 9.750 | | | | 10/15/30 | | | | 650 | | | | 713,529 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 202,378,439 | |
| | | | |
Packaging & Containers 1.9% | | | | | | | | | | | | | | | | |
ARD Finance SA (Luxembourg), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, Cash coupon 6.500% or PIK 7.250% | | | 6.500 | | | | 06/30/27 | | | | 3,200 | | | | 736,000 | |
Ardagh Packaging Finance PLC/Ardagh Holdings USA, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 2.125 | | | | 08/15/26 | | | EUR | 1,600 | | | | 1,460,720 | |
Sr. Sec’d. Notes, 144A | | | 4.125 | | | | 08/15/26 | | | | 6,853 | | | | 5,912,083 | |
Graham Packaging Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.125 | | | | 08/15/28 | | | | 5,520 | | | | 5,452,052 | |
Graphic Packaging International LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.500 | | | | 03/15/28 | | | | 3,550 | | | | 3,352,968 | |
Intelligent Packaging Ltd. Finco, Inc./Intelligent Packaging Ltd. Co-Issuer LLC (Canada), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.000 | | | | 09/15/28 | | | | 17,732 | | | | 17,399,525 | |
LABL, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.875 | | | | 11/01/28 | | | | 10,900 | | | | 10,101,162 | |
Sr. Sec’d. Notes, 144A | | | 6.750 | | | | 07/15/26 | | | | 12,075 | | | | 12,014,990 | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 11/01/28 | | | | 2,075 | | | | 2,126,276 | |
Sr. Unsec’d. Notes, 144A | | | 10.500 | | | | 07/15/27 | | | | 9,460 | | | | 9,343,131 | |
Mauser Packaging Solutions Holding Co., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.875 | | | | 04/15/27 | | | | 6,600 | | | | 6,825,559 | |
Pactiv Evergreen Group Issuer LLC/Pactiv Evergreen Group Issuer, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 10/15/28 | | | | 3,780 | | | | 3,598,266 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 121
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Packaging & Containers (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Pactiv Evergreen Group Issuer, Inc./Pactiv Evergreen Group Issuer LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.000% | | | | 10/15/27 | | | | 1,050 | | | $ | 1,003,085 | |
Sealed Air Corp./Sealed Air Corp. US, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.125 | | | | 02/01/28 | | | | 1,275 | | | | 1,297,737 | |
Trident TPI Holdings, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 12.750 | | | | 12/31/28 | | | | 13,345 | | | | 14,641,256 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 95,264,810 | |
| | | | |
Pharmaceuticals 1.8% | | | | | | | | | | | | | | | | |
AdaptHealth LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.625 | | | | 08/01/29 | | | | 2,525 | | | | 2,304,897 | |
Gtd. Notes, 144A | | | 6.125 | | | | 08/01/28 | | | | 26,741 | | | | 26,515,153 | |
Bausch Health Americas, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $27,037,581;purchased 04/20/21 - 11/16/21)(f) | | | 8.500 | | | | 01/31/27 | | | | 25,400 | | | | 18,811,407 | |
Bausch Health Cos., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A (original cost $3,312,675;purchased 07/28/21 - 04/28/22)(f) | | | 5.000 | | | | 01/30/28 | | | | 4,150 | | | | 2,282,500 | |
Gtd. Notes, 144A (original cost $302,400; purchased 06/05/24)(f) | | | 5.000 | | | | 02/15/29 | | | | 630 | | | | 321,300 | |
Gtd. Notes, 144A (original cost $336,600; purchased 05/23/24)(f) | | | 5.250 | | | | 01/30/30 | | | | 660 | | | | 316,800 | |
Gtd. Notes, 144A (original cost $318,150; purchased 05/17/24)(f) | | | 5.250 | | | | 02/15/31 | | | | 630 | | | | 302,400 | |
Gtd. Notes, 144A (original cost $325,950; purchased 05/21/24)(f) | | | 6.250 | | | | 02/15/29 | | | | 615 | | | | 310,575 | |
Gtd. Notes, 144A (original cost $3,272,925;purchased 01/24/22)(f) | | | 7.000 | | | | 01/15/28 | | | | 3,468 | | | | 1,994,100 | |
Gtd. Notes, 144A (original cost $93,000; purchased 08/02/24)(f) | | | 9.000 | | | | 12/15/25 | | | | 100 | | | | 90,250 | |
Sr. Sec’d. Notes, 144A (original cost $784,000;purchased 05/24/21)(f) | | | 4.875 | | | | 06/01/28 | | | | 784 | | | | 589,686 | |
Sr. Sec’d. Notes, 144A (original cost $1,328,438;purchased 07/30/24)(f) | | | 5.750 | | | | 08/15/27 | | | | 1,625 | | | | 1,275,625 | |
Jazz Securities DAC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.375 | | | | 01/15/29 | | | | 4,400 | | | | 4,191,000 | |
Organon & Co./Organon Foreign Debt Co-Issuer BV, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.125 | | | | 04/30/28 | | | | 14,988 | | | | 14,322,203 | |
See Notes to Financial Statements.
122
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Pharmaceuticals (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Organon & Co./Organon Foreign Debt Co-Issuer BV, (cont’d.) | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.125% | | | | 04/30/31 | | | | 3,275 | | | $ | 3,064,149 | |
P&L Development LLC/PLD Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.750 | | | | 11/15/25 | | | | 10,654 | | | | 10,041,201 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 86,733,246 | |
| | | | |
Pipelines 2.4% | | | | | | | | | | | | | | | | |
| | | | |
Antero Midstream Partners LP/Antero Midstream Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.750 | | | | 03/01/27 | | | | 3,230 | | | | 3,226,845 | |
Gtd. Notes, 144A | | | 5.750 | | | | 01/15/28 | | | | 3,624 | | | | 3,628,843 | |
Blue Racer Midstream LLC/Blue Racer Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 7.000 | | | | 07/15/29 | | | | 2,990 | | | | 3,111,043 | |
EQM Midstream Partners LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 4.125 | | | | 12/01/26 | | | | 4,129 | | | | 4,056,969 | |
Sr. Unsec’d. Notes, 144A | | | 6.000 | | | | 07/01/25 | | | | 920 | | | | 921,457 | |
Sr. Unsec’d. Notes, 144A | | | 6.500 | | | | 07/01/27 | | | | 6,100 | | | | 6,257,405 | |
Sr. Unsec’d. Notes, 144A | | | 7.500 | | | | 06/01/27 | | | | 11,784 | | | | 12,156,496 | |
Global Partners LP/GLP Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.000 | | | | 08/01/27 | | | | 6,397 | | | | 6,456,527 | |
Howard Midstream Energy Partners LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 8.875 | | | | 07/15/28 | | | | 1,950 | | | | 2,080,505 | |
Rockies Express Pipeline LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.600 | | | | 05/15/25 | | | | 8,549 | | | | 8,411,308 | |
Sr. Unsec’d. Notes, 144A | | | 4.800 | | | | 05/15/30 | | | | 5,020 | | | | 4,661,421 | |
Tallgrass Energy Partners LP/Tallgrass Energy Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 01/15/28 | | | | 3,765 | | | | 3,633,796 | |
Gtd. Notes, 144A | | | 6.000 | | | | 03/01/27 | | | | 9,092 | | | | 9,073,650 | |
Sr. Unsec’d. Notes, 144A | | | 7.375 | | | | 02/15/29 | | | | 2,670 | | | | 2,725,679 | |
Venture Global LNG, Inc., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 01/15/30 | | | | 4,870 | | | | 4,984,697 | |
Sr. Sec’d. Notes, 144A | | | 9.500 | | | | 02/01/29 | | | | 23,631 | | | | 26,630,276 | |
Sr. Sec’d. Notes, 144A | | | 9.875 | | | | 02/01/32 | | | | 11,400 | | | | 12,687,584 | |
Western Midstream Operating LP, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.100 | | | | 02/01/25 | | | | 3,180 | | | | 3,145,948 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 117,850,449 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 123
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Real Estate 1.2% | | | | | | | | | | | | | | | | |
| | | | |
Five Point Operating Co. LP/Five Point Capital Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 10.500%(cc) | | | | 01/15/28 | | | | 16,173 | | | $ | 16,615,861 | |
Greystar Real Estate Partners LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 7.750 | | | | 09/01/30 | | | | 2,175 | | | | 2,320,018 | |
Howard Hughes Corp. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.125 | | | | 02/01/29 | | | | 3,624 | | | | 3,337,180 | |
Gtd. Notes, 144A | | | 5.375 | | | | 08/01/28 | | | | 38,463 | | | | 37,437,420 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 59,710,479 | |
| | | | |
Real Estate Investment Trusts (REITs) 2.3% | | | | | | | | | | | | | | | | |
| | | | |
Diversified Healthcare Trust, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.375 | | | | 03/01/31 | | | | 675 | | | | 516,046 | |
Gtd. Notes | | | 9.750 | | | | 06/15/25 | | | | 1,655 | | | | 1,657,287 | |
Sr. Unsec’d. Notes | | | 4.750 | | | | 02/15/28 | | | | 1,950 | | | | 1,713,822 | |
MPT Operating Partnership LP/MPT Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 0.993 | | | | 10/15/26 | | | | EUR3,100 | | | | 2,760,308 | |
Gtd. Notes | | | 5.000 | | | | 10/15/27 | | | | 10,130 | | | | 8,585,174 | |
Park Intermediate Holdings LLC/PK Domestic Property LLC/PK Finance Co-Issuer, | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.000 | | | | 02/01/30 | | | | 4,040 | | | | 4,145,776 | |
Sr. Sec’d. Notes, 144A | | | 4.875 | | | | 05/15/29 | | | | 8,500 | | | | 8,111,527 | |
RHP Hotel Properties LP/RHP Finance Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 4.750 | | | | 10/15/27 | | | | 15,714 | | | | 15,389,007 | |
Gtd. Notes, 144A | | | 6.500 | | | | 04/01/32 | | | | 4,645 | | | | 4,781,290 | |
Gtd. Notes, 144A | | | 7.250 | | | | 07/15/28 | | | | 425 | | | | 441,941 | |
Sabra Health Care LP, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 5.125 | | | | 08/15/26 | | | | 650 | | | | 651,429 | |
SBA Communications Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 3.875 | | | | 02/15/27 | | | | 33,534 | | | | 32,466,223 | |
Starwood Property Trust, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.375 | | | | 01/15/27 | | | | 6,475 | | | | 6,291,659 | |
Sr. Unsec’d. Notes, 144A | | | 7.250 | | | | 04/01/29 | | | | 4,125 | | | | 4,297,049 | |
Uniti Group LP/Uniti Group Finance, Inc./CSL Capital LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 10.500 | | | | 02/15/28 | | | | 4,554 | | | | 4,678,844 | |
See Notes to Financial Statements.
124
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Real Estate Investment Trusts (REITs) (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
VICI Properties LP/VICI Note Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.250% | | | | 12/01/26 | | | | 4,290 | | | $ | 4,229,764 | |
Gtd. Notes, 144A | | | 4.500 | | | | 09/01/26 | | | | 10,120 | | | | 10,024,450 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 110,741,596 | |
| | | | |
Retail 3.1% | | | | | | | | | | | | | | | | |
| | | | |
1011778 BC ULC/New Red Finance, Inc. (Canada), | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 4.375 | | | | 01/15/28 | | | | 7,025 | | | | 6,796,687 | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 01/15/28 | | | | 5,132 | | | | 4,901,060 | |
Sr. Sec’d. Notes, 144A | | | 6.125 | | | | 06/15/29 | | | | 4,210 | | | | 4,279,760 | |
Arko Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.125 | | | | 11/15/29 | | | | 8,450 | | | | 7,514,750 | |
Brinker International, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.000 | | | | 10/01/24 | | | | 5,593 | | | | 5,588,507 | |
Gtd. Notes, 144A | | | 8.250 | | | | 07/15/30 | | | | 9,450 | | | | 10,040,400 | |
Carvana Co., | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A, Cash coupon 9.000% or PIK 12.000% | | | 12.000 | | | | 12/01/28 | | | | 26,175 | | | | 27,160,459 | |
Sr. Sec’d. Notes, 144A, Cash coupon 11.000% or PIK 13.000% | | | 13.000 | | | | 06/01/30 | | | | 6,260 | | | | 6,676,851 | |
eG Global Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 11.000 | | | | 11/30/28 | | | EUR | 2,400 | | | | 2,819,128 | |
Sr. Sec’d. Notes, 144A | | | 12.000 | | | | 11/30/28 | | | | 6,375 | | | | 6,948,737 | |
Fertitta Entertainment LLC/Fertitta Entertainment Finance Co., Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 6.750 | | | | 01/15/30 | | | | 9,064 | | | | 8,116,125 | |
Sr. Sec’d. Notes, 144A | | | 4.625 | | | | 01/15/29 | | | | 5,460 | | | | 5,112,020 | |
Gap, Inc. (The), | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 3.625 | | | | 10/01/29 | | | | 11,600 | | | | 10,391,773 | |
LCM Investments Holdings II LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 4.875 | | | | 05/01/29 | | | | 10,719 | | | | 10,212,268 | |
Lithia Motors, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 3.875 | | | | 06/01/29 | | | | 9,550 | | | | 8,864,974 | |
Sally Holdings LLC/Sally Capital, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 6.750 | | | | 03/01/32 | | | | 12,835 | | | | 13,096,693 | |
Suburban Propane Partners LP/Suburban Energy Finance Corp., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes | | | 5.875 | | | | 03/01/27 | | | | 4,008 | | | | 3,989,030 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 125
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Retail (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
White Cap Buyer LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 6.875% | | | | 10/15/28 | | | | 1,825 | | | $ | 1,807,459 | |
White Cap Parent LLC, | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A, Cash coupon 8.250% or PIK 9.000% | | | 8.250 | | | | 03/15/26 | | | | 6,000 | | | | 5,987,917 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 150,304,598 | |
| | | | |
Software 2.1% | | | | | | | | | | | | | | | | |
| | | | |
Camelot Finance SA, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 4.500 | | | | 11/01/26 | | | | 66,801 | | | | 65,270,790 | |
Clarivate Science Holdings Corp., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 4.875 | | | | 07/01/29 | | | | 2,550 | | | | 2,455,629 | |
Sr. Sec’d. Notes, 144A | | | 3.875 | | | | 07/01/28 | | | | 11,960 | | | | 11,398,391 | |
SS&C Technologies, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 5.500 | | | | 09/30/27 | | | | 22,625 | | | | 22,612,796 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 101,737,606 | |
| | | | |
Telecommunications 4.9% | | | | | | | | | | | | | | | | |
| | | | |
Altice Financing SA (Luxembourg), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes | | | 2.250 | | | | 01/15/25 | | | EUR | 29,912 | | | | 32,436,495 | |
Sr. Sec’d. Notes, 144A | | | 2.250 | | | | 01/15/25 | | | EUR | 200 | | | | 216,879 | |
Sr. Sec’d. Notes, 144A | | | 5.000 | | | | 01/15/28 | | | | 2,425 | | | | 1,946,062 | |
Digicel Group Holdings Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, Series 1B14, 144A (original cost $61; purchased 11/14/23)^(f) | | | 0.000 | | | | 12/31/30 | | | | 606 | | | | 1 | |
Sr. Sec’d. Notes, Series 3A14, 144A (original cost $6,813; purchased 11/14/23)^(f) | | | 0.000 | | | | 12/31/30 | | | | 3 | | | | 1,431 | |
Sr. Sec’d. Notes, Series 3B14, 144A (original cost $37; purchased 11/14/23)^(f) | | | 0.000 | | | | 12/31/30 | | | | 366 | | | | — | |
Digicel Intermediate Holdings Ltd./Digicel International Finance Ltd./DIFL US (Jamaica), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, Cash coupon 9.000% and PIK 1.500% (original cost $28,627,276; purchased 01/29/24 - 05/15/24)(f) | | | 10.500 | | | | 05/25/27 | | | | 30,801 | | | | 30,637,114 | |
Digicel MidCo Ltd./DIFL US II LLC (Jamaica), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, PIK 10.500% (original cost $8,775,970; purchased 01/30/24 - 05/15/24)(f) | | | 10.500 | | | | 11/25/28 | | | | 13,376 | | | | 10,888,461 | |
See Notes to Financial Statements.
126
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
CORPORATE BONDS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Telecommunications (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Frontier Communications Holdings LLC, | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 5.000% | | | | 05/01/28 | | | | 11,549 | | | $ | 11,222,757 | |
Sr. Sec’d. Notes, 144A | | | 5.875 | | | | 10/15/27 | | | | 33,201 | | | | 33,074,780 | |
Iliad Holding SASU (France), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.500 | | | | 10/15/26 | | | | 28,292 | | | | 28,399,510 | |
Sr. Sec’d. Notes, 144A | | | 7.000 | | | | 10/15/28 | | | | 13,401 | | | | 13,585,264 | |
Intelsat Jackson Holdings SA (Luxembourg), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 6.500 | | | | 03/15/30 | | | | 6,850 | | | | 6,569,972 | |
Level 3 Financing, Inc., | | | | | | | | | | | | | | | | |
Sec’d. Notes, 144A | | | 4.875 | | | | 06/15/29 | | | | 15,855 | | | | 12,587,795 | |
Sr. Sec’d. Notes, 144A | | | 10.500 | | | | 04/15/29 | | | | 21,222 | | | | 22,838,088 | |
Sr. Sec’d. Notes, 144A | | | 11.000 | | | | 11/15/29 | | | | 11,173 | | | | 12,267,301 | |
Sprint LLC, | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 7.625 | | | | 02/15/25 | | | | 2,215 | | | | 2,223,111 | |
Gtd. Notes | | | 7.625 | | | | 03/01/26 | | | | 2,600 | | | | 2,681,619 | |
T-Mobile USA, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes | | | 2.625 | | | | 04/15/26 | | | | 1,052 | | | | 1,019,469 | |
Viasat, Inc., | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.625 | | | | 09/15/25 | | | | 7,489 | | | | 7,424,791 | |
Zegona Finance PLC (United Kingdom), | | | | | | | | | | | | | | | | |
Sr. Sec’d. Notes, 144A | | | 8.625 | | | | 07/15/29 | | | | 8,530 | | | | 8,901,311 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 238,922,211 | |
| | | | |
Transportation 0.5% | | | | | | | | | | | | | | | | |
| | | | |
RXO, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.500 | | | | 11/15/27 | | | | 6,345 | | | | 6,570,941 | |
XPO, Inc., | | | | | | | | | | | | | | | | |
Gtd. Notes, 144A | | | 7.125 | | | | 06/01/31 | | | | 625 | | | | 652,556 | |
Gtd. Notes, 144A | | | 7.125 | | | | 02/01/32 | | | | 2,130 | | | | 2,234,464 | |
Sr. Sec’d. Notes, 144A | | | 6.250 | | | | 06/01/28 | | | | 14,875 | | | | 15,204,804 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 24,662,765 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL CORPORATE BONDS
(cost $3,832,635,859) | | | | | | | | | | | | | | | 3,827,712,908 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 127
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
FLOATING RATE AND OTHER LOANS 9.9% | | | | | | | | | | | | | | | | |
| | | | |
Auto Parts & Equipment 0.6% | | | | | | | | | | | | | | | | |
| | | | |
First Brands Group LLC, | | | | | | | | | | | | | | | | |
First Lien 2021 Term Loan, 3 Month SOFR + 5.262% | | | 10.514%(c) | | | | 03/30/27 | | | | 13,640 | | | $ | 13,446,521 | |
Second Lien 2021 Term Loan, 3 Month SOFR + 8.762%^ | | | 14.014(c) | | | | 03/30/28 | | | | 7,990 | | | | 7,550,550 | |
Tenneco, Inc., | | | | | | | | | | | | | | | | |
Term A Loan, 1 Month SOFR + 4.850% | | | 10.082(c) | | | | 11/17/28 | | | | 3,759 | | | | 3,583,106 | |
Term B Loan, 3 Month SOFR + 5.100% | | | 10.331(c) | | | | 11/17/28 | | | | 4,600 | | | | 4,419,284 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 28,999,461 | |
| | | | |
Building Materials 0.0% | | | | | | | | | | | | | | | | |
| | | | |
MIWD HoldCo II LLC, | | | | | | | | | | | | | | | | |
2024 Incremental Term Loan, 1 Month SOFR + 3.500% | | | 8.747(c) | | | | 03/28/31 | | | | 2,175 | | | | 2,184,176 | |
| | | | |
Chemicals 0.6% | | | | | | | | | | | | | | | | |
| | | | |
Consolidated Energy Finance SA (Switzerland), | | | | | | | | | | | | | | | | |
2024 Incremental Term Loan, 3 Month SOFR + 4.500% | | | 9.557(c) | | | | 11/15/30 | | | | 16,494 | | | | 15,297,872 | |
Iris Holdings Ltd., | | | | | | | | | | | | | | | | |
Initial Term Loan, 3 Month SOFR + 4.850% | | | 10.102(c) | | | | 06/28/28 | | | | 5,335 | | | | 5,022,246 | |
Venator Finance Sarl, | | | | | | | | | | | | | | | | |
Initial First-Out Term Loan, 3 Month SOFR + 2.000%^ | | | 7.286(c) | | | | 12/31/25 | | | | 5,025 | | | | 5,024,915 | |
Term Loan, 3 Month SOFR + 10.000%^ | | | 15.299(c) | | | | 10/12/28 | | | | 7,159 | | | | 6,801,000 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 32,146,033 | |
| | | | |
Commercial Services 0.8% | | | | | | | | | | | | | | | | |
| | | | |
Cimpress USA LLC (Ireland), | | | | | | | | | | | | | | | | |
2024 Refinancing Tranche Term B-1 Loan, 1 Month SOFR + 3.000% | | | 8.247(c) | | | | 05/17/28 | | | | 6,984 | | | | 6,984,495 | |
Fly Funding II Sarl (Luxembourg), | | | | | | | | | | | | | | | | |
Term B Loan, 3 Month LIBOR + 1.750% | | | 7.120(c) | | | | 08/11/25 | | | | 1,443 | | | | 1,400,705 | |
Kingpin Intermediate Holdings LLC, | | | | | | | | | | | | | | | | |
Amendment No. 8 Term Loan, 1 Month SOFR + 3.500% | | | 8.747(c) | | | | 02/08/28 | | | | 7,211 | | | | 7,188,427 | |
See Notes to Financial Statements.
128
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
FLOATING RATE AND OTHER LOANS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Commercial Services (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Mavis Tire Express Services Topco Corp., | | | | | | | | | | | | | | | | |
Term Loan, 1 Month SOFR + 3.500% | | | 8.747%(c) | | | | 05/04/28 | | | | 13,387 | | | $ | 13,390,233 | |
Trans Union LLC, | | | | | | | | | | | | | | | | |
Term B-7 Loan, 1 Month SOFR + 2.000% | | | 7.247(c) | | | | 12/01/28 | | | | 9,675 | | | | 9,678,626 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 38,642,486 | |
| | | | |
Computers 1.0% | | | | | | | | | | | | | | | | |
| | | | |
McAfee Corp., | | | | | | | | | | | | | | | | |
Tranche B-1 Term Loan, 1 Month SOFR + 3.250% | | | 8.592(c) | | | | 03/01/29 | | | | 30,691 | | | | 30,582,590 | |
NCR Atleos Corp., | | | | | | | | | | | | | | | | |
Term A Loan, 1 Month SOFR + 3.350%^ | | | 8.599(c) | | | | 09/27/28 | | | | 2,281 | | | | 2,283,424 | |
NCR Atleos LLC, | | | | | | | | | | | | | | | | |
Term B Loan, 3 Month SOFR + 4.850% | | | 10.099(c) | | | | 03/27/29 | | | | 16,121 | | | | 16,242,265 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 49,108,279 | |
| | | | |
Distribution/Wholesale 0.1% | | | | | | | | | | | | | | | | |
| | | | |
Windsor Holdings III LLC, | | | | | | | | | | | | | | | | |
Term B Loan 2024, 1 Month SOFR + 4.000% | | | 9.311(c) | | | | 08/01/30 | | | | 4,080 | | | | 4,097,711 | |
| | | | |
Electric 0.0% | | | | | | | | | | | | | | | | |
Heritage Power LLC, | | | | | | | | | | | | | | | | |
Term Loan, 3 Month SOFR + 5.500%^ | | | 10.835(c) | | | | 07/20/28 | | | | 1,140 | | | | 1,106,052 | |
| | | | |
Electronics 0.1% | | | | | | | | | | | | | | | | |
Likewize Corp., | | | | | | | | | | | | | | | | |
Closing Date Term Loan, 1 Month SOFR + 5.750% | | | 11.026(c) | | | | 09/30/29 | | | | 4,125 | | | | 4,001,250 | |
| | | | |
Entertainment 0.1% | | | | | | | | | | | | | | | | |
Golden Entertainment, Inc., | | | | | | | | | | | | | | | | |
Term B-1 Loan, 1 Month SOFR + 2.250% | | | 7.502(c) | | | | 05/28/30 | | | | 6,065 | | | | 6,049,892 | |
| | | | |
Insurance 1.4% | | | | | | | | | | | | | | | | |
Acrisure LLC, | | | | | | | | | | | | | | | | |
2024 Refinancing Term B Loan, 3 Month SOFR + 3.000% | | | 8.344(c) | | | | 02/15/27 | | | | 10,500 | | | | 10,456,247 | |
2024 Refinancing Term Loan, 3 Month SOFR + 3.250% | | | 8.594(c) | | | | 11/06/30 | | | | 25,153 | | | | 24,932,492 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 129
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
FLOATING RATE AND OTHER LOANS (Continued) | | | | | | | | | | | | | | | | |
| | | | |
Insurance (cont’d.) | | | | | | | | | | | | | | | | |
| | | | |
Asurion LLC, | | | | | | | | | | | | | | | | |
New B-8 Term Loan, 1 Month SOFR + 3.364% | | | 8.611%(c) | | | | 12/23/26 | | | | 31,235 | | | $ | 31,078,452 | |
New B-9 Term Loan, 1 Month SOFR + 3.364% | | | 8.611(c) | | | | 07/31/27 | | | | 2,008 | | | | 1,983,544 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 68,450,735 | |
| | | | |
Internet 0.0% | | | | | | | | | | | | | | | | |
| | | | |
Cablevision Lightpath LLC, | | | | | | | | | | | | | | | | |
Initial Term Loan, 1 Month SOFR + 3.364% | | | 8.701(c) | | | | 11/30/27 | | | | 339 | | | | 336,203 | |
| | | | |
Investment Companies 0.2% | | | | | | | | | | | | | | | | |
Hurricane CleanCo Ltd. (United Kingdom), | | | | | | | | | | | | | | | | |
Facility A, 3 Month LIBOR + 6.250% (Cap N/A, Floor 0.000% )^ | | | 6.250(c) | | | | 10/31/29 | | | | 7,753 | | | | 10,181,717 | |
| | | | |
Media 1.1% | | | | | | | | | | | | | | | | |
Altice Financing SA (Luxembourg), | | | | | | | | | | | | | | | | |
2022 Dollar Loan, 3 Month SOFR + 5.000% | | | 10.301(c) | | | | 10/31/27 | | | | 5,124 | | | | 4,534,731 | |
CSC Holdings LLC, | | | | | | | | | | | | | | | | |
2022 Refinancing Term Loan, 1 Month SOFR + 4.500% | | | 9.837(c) | | | | 01/18/28 | | | | 24,322 | | | | 23,182,367 | |
Diamond Sports Group LLC, | | | | | | | | | | | | | | | | |
Dip Term Loan | | | 10.000 | | | | 12/02/24 | | | | 1,298 | | | | 1,590,648 | |
First Lien Term Loan, 1 Month SOFR + 10.100% | | | 15.442(c) | | | | 05/25/26 | | | | 813 | | | | 748,589 | |
Second Lien Term Loan, 1 Month SOFR + 3.400% | | | 8.175(c) | | | | 08/24/26(d) | | | | 1,542 | | | | 24,744 | |
Gray Television, Inc., | | | | | | | | | | | | | | | | |
Term F Loan, 1 Month SOFR + 5.250% | | | 10.592(c) | | | | 06/04/29 | | | | 3,824 | | | | 3,648,246 | |
Radiate Holdco LLC, | | | | | | | | | | | | | | | | |
Amendment No. 6 Term Loan, 1 Month SOFR + 3.364% | | | 8.611(c) | | | | 09/25/26 | | | | 7,909 | | | | 6,327,027 | |
Univision Communications, Inc., | | | | | | | | | | | | | | | | |
2021 Replacement Term Loan, 1 Month SOFR + 3.364% | | | 8.611(c) | | | | 03/15/26 | | | | 6,931 | | | | 6,922,328 | |
Virgin Media Bristol LLC, | | | | | | | | | | | | | | | | |
Facility Q Advance, 1 Month SOFR + 3.364% | | | 8.701(c) | | | | 01/31/29 | | | | 9,175 | | | | 8,830,938 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 55,809,618 | |
See Notes to Financial Statements.
130
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
FLOATING RATE AND OTHER LOANS (Continued) | |
|
Metal Fabricate/Hardware 0.4% | |
| | | | |
Doncasters US Finance LLC (United Kingdom),
Initial Term Loan, 3 Month SOFR + 6.500% | | | 11.835%(c) | | | | 04/23/30 | | | | 17,970 | | | $ | 17,790,263 | |
| | | | |
Mining 0.2% | | | | | | | | | | | | | | | | |
| | | | |
Rain Carbon GmbH (Germany),
2023 Replacement Term Loan, 3 Month EURIBOR + 5.000% | | | 8.560(c) | | | | 10/31/28 | | | EUR | 8,336 | | | | 9,068,759 | |
| | | | |
Oil & Gas Services 0.0% | | | | | | | | | | | | | | | | |
| | | | |
US Silica Co., | | | | | | | | | | | | | | | | |
Term B Loan, 1 Month SOFR + 4.500% | | | 9.747(c) | | | | 07/31/31 | | | | 1,640 | | | | 1,617,962 | |
| | | | |
Packaging & Containers 0.5% | | | | | | | | | | | | | | | | |
| | | | |
Trident TPI Holdings, Inc., | | | | | | | | | | | | | | | | |
Tranche B-6 Term Loan, 3 Month SOFR + 4.000% | | | 9.332(c) | | | | 09/15/28 | | | | 22,786 | | | | 22,853,778 | |
| | | | |
Retail 0.6% | | | | | | | | | | | | | | | | |
| | | | |
Great Outdoors Group LLC, | | | | | | | | | | | | | | | | |
Term B-2 Loan, 1 Month SOFR + 3.864% | | | 9.111(c) | | | | 03/06/28 | | | | 5,949 | | | | 5,943,860 | |
LBM Acquisition LLC, | | | | | | | | | | | | | | | | |
First Lien Initial Term Loan, 1 Month SOFR + 3.850% | | | 9.097(c) | | | | 12/17/27 | | | | 6,932 | | | | 6,820,996 | |
White Cap Buyer LLC, | | | | | | | | | | | | | | | | |
Tranche C Term Loan, 1 Month SOFR + 3.250% | | | 8.497(c) | | | | 10/19/29 | | | | 16,253 | | | | 16,136,777 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 28,901,633 | |
| | | | |
Software 1.2% | | | | | | | | | | | | | | | | |
| | | | |
athenahealth, Inc., | | | | | | | | | | | | | | | | |
Initial Term Loan, 1 Month SOFR + 3.250% | | | 8.497(c) | | | | 02/15/29 | | | | 11,139 | | | | 11,043,502 | |
BMC Software, | | | | | | | | | | | | | | | | |
2031 New First Lien Dollar Term Loan, 1 Month SOFR + 3.750% | | | 9.005(c) | | | | 07/30/31 | | | | 9,916 | | | | 9,886,305 | |
Cotiviti, Inc., | | | | | | | | | | | | | | | | |
Initial Floating Rate Term Loan, 1 Month SOFR + 3.250% | | | 8.592(c) | | | | 05/01/31 | | | | 19,896 | | | | 19,877,462 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 131
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
|
FLOATING RATE AND OTHER LOANS (Continued) | |
|
Software (cont’d.) | |
| | | | |
Dun & Bradstreet Corp., | | | | | | | | | | | | | | | | |
Incremental Term B-2, 1 Month SOFR + 2.750% | | | 8.026%(c) | | | | 01/18/29 | | | | 9,411 | | | $ | 9,421,718 | |
Skillsoft Finance II, Inc., | | | | | | | | | | | | | | | | |
Initial Term Loan, 1 Month SOFR + 5.364% | | | 10.642(c) | | | | 07/14/28 | | | | 10,708 | | | | 8,419,445 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 58,648,432 | |
| | | | |
Telecommunications 1.0% | | | | | | | | | | | | | | | | |
| | | | |
Digicel International Finance Ltd. (Jamaica), | | | | | | | | | | | | | | | | |
Initial Term Loan, 3 Month SOFR + 6.750% | | | 12.002(c) | | | | 05/25/27 | | | | 10,946 | | | | 10,735,930 | |
Level 3 Financing, Inc., | | | | | | | | | | | | | | | | |
Term B-1, 1 Month SOFR + 6.560% | | | 11.838(c) | | | | 04/15/29 | | | | 7,422 | | | | 7,461,081 | |
Term B-2, 1 Month SOFR + 6.560% | | | 11.838(c) | | | | 04/15/30 | | | | 7,863 | | | | 7,894,025 | |
MLN US HoldCo LLC, | | | | | | | | | | | | | | | | |
3L Term B Loan, 3 Month SOFR + 9.250% | | | 14.629(c) | | | | 10/18/27 | | | | 4 | | | | 200 | |
Initial Term Loan, 3 Month SOFR + 6.540% | | | 11.819(c) | | | | 10/18/27 | | | | 244 | | | | 138,375 | |
Initial Term Loan (Second Out (First Lien Roll-Up)), 3 Month SOFR + 6.800% | | | 12.079(c) | | | | 10/18/27 | | | | 552 | | | | 44,150 | |
Viasat, Inc., | | | | | | | | | | | | | | | | |
Initial Term Loan, 1 Month SOFR + 4.500% | | | 9.747(c) | | | | 03/02/29 | | | | 11,278 | | | | 10,502,572 | |
Xplornet Communications, Inc. (Canada), | | | | | | | | | | | | | | | | |
First Lien Refinancing Term Loan | | | — (p) | | | | 10/02/28(d) | | | | 18,319 | | | | 3,217,330 | |
Initial Term Loan - Second Lien | | | — (p) | | | | 10/01/29(d) | | | | 1,355 | | | | 23,712 | |
Zegona Holdco Ltd., | | | | | | | | | | | | | | | | |
Term Loan | | | — (p) | | | | 07/31/29 | | | | 8,675 | | | | 8,604,516 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 48,621,891 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL FLOATING RATE AND OTHER LOANS
(cost $506,422,900) | | | | | | | | | | | | | | | 488,616,331 | |
| | | | | | | | | | | | | | | | |
| | | | |
SOVEREIGN BONDS 0.0% | | | | | | | | | | | | | | | | |
Ecuador Government International Bond (Ecuador), | | | | | | | | | | | | | | | | |
Sr. Unsec’d. Notes, 144A | | | 5.000(cc) | | | | 07/31/40 | | | | 125 | | | | 63,329 | |
Sr. Unsec’d. Notes, 144A | | | 5.500(cc) | | | | 07/31/35 | | | | 535 | | | | 295,546 | |
Sr. Unsec’d. Notes, 144A | | | 6.608(s) | | | | 07/31/30 | | | | 92 | | | | 49,762 | |
Sr. Unsec’d. Notes, 144A | | | 6.900 | | | | 07/31/30 | | | | 324 | | | | 230,526 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL SOVEREIGN BONDS
(cost $878,124) | | | | | | | | | | | | | | | 639,163 | |
| | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
132
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | | | | | |
| | | | |
| Description | | Interest Rate | | | Maturity Date | | | Principal Amount (000)# | | | Value | |
| | | | |
U.S. TREASURY OBLIGATIONS(h) 1.3% | | | | | | | | | | | | | | | | |
U.S. Treasury Notes(k) | | | 4.250% | | | | 09/30/24 | | | | 24,890 | | | $ | 24,869,583 | |
U.S. Treasury Notes | | | 4.875 | | | | 05/31/26 | | | | 38,500 | | | | 39,042,910 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL U.S. TREASURY OBLIGATIONS
(cost $63,650,602) | | | | | | | | | | | | | | | 63,912,493 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | Shares | | | | |
AFFILIATED EXCHANGE-TRADED FUNDS 2.4% | | | | | | | | | | | | | | | | |
PGIM AAA CLO ETF | | | | | | | | | | | 240,000 | | | | 12,280,800 | |
PGIM Ultra Short Bond ETF | | | | | | | | | | | 2,150,000 | | | | 107,005,500 | |
| | | | | | | | | | | | | | | | |
| | | | |
TOTAL AFFILIATED EXCHANGE-TRADED FUNDS
(cost $118,995,331)(wa) | | | | | | | | | | | | | | | 119,286,300 | |
| | | | | | | | | | | | | | | | |
| | | | |
COMMON STOCKS 1.5% | | | | | | | | | | | | | | | | |
| | | | |
Chemicals 0.6% | | | | | | | | | | | | | | | | |
| | | | |
Cornerstone Chemical Co.*^ | | | | | | | | | | | 144,561 | | | | 2,746,659 | |
TPC Group, Inc.*^ | | | | | | | | | | | 319,092 | | | | 12,125,496 | |
Venator Materials PLC (original cost $43,833,355; purchased 12/21/23)*^(f) | | | | | | | | | | | 26,944 | | | | 16,166,400 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 31,038,555 | |
| | | | |
Electric Utilities 0.0% | | | | | | | | | | | | | | | | |
| | | | |
GenOn Energy Holdings, Inc. (Class A Stock)*^ | | | | | | | | | | | 41,315 | | | | 1,239,450 | |
| | | | |
Gas Utilities 0.4% | | | | | | | | | | | | | | | | |
| | | | |
Ferrellgas Partners LP (Class B Stock)^ | | | | | | | | | | | 100,126 | | | | 20,516,879 | |
| | | | |
Hotels, Restaurants & Leisure 0.1% | | | | | | | | | | | | | | | | |
| | | | |
CEC Entertainment, Inc.* | | | | | | | | | | | 366,068 | | | | 5,445,262 | |
| | | | |
Oil, Gas & Consumable Fuels 0.3% | | | | | | | | | | | | | | | | |
| | | | |
Chesapeake Energy Corp. (original cost $0; purchased 02/09/21)(f) | | | | | | | | | | | 63,506 | | | | 4,730,562 | |
Heritage Power LLC*^ | | | | | | | | | | | 157,638 | | | | 6,620,796 | |
Heritage Power LLC*^ | | | | | | | | | | | 6,933 | | | | 291,186 | |
Heritage Power LLC*^ | | | | | | | | | | | 181,423 | | | | 90,711 | |
| | | | | | | | | | | | | | | | |
| | | | |
| | | | | | | | | | | | | | | 11,733,255 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 133
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | |
| | |
| Description | | Shares | | | Value | |
| | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Wireless Telecommunication Services 0.1% | | | | | | | | |
| | |
Digicel International Finance Ltd. (Jamaica) (original cost $577,847; purchased 01/29/24 - 01/30/24)*^(f) | | | 475,786 | | | $ | 1,184,707 | |
Intelsat Emergence SA (Luxembourg)* | | | 65,330 | | | | 2,444,420 | |
| | | | | | | | |
| | |
| | | | | | | 3,629,127 | |
| | | | | | | | |
| | |
TOTAL COMMON STOCKS
(cost $72,420,142) | | | | | | | 73,602,528 | |
| | | | | | | | |
| | |
PREFERRED STOCKS 0.0% | | | | | | | | |
| | |
Electronic Equipment, Instruments & Components 0.0% | | | | | | | | |
| | |
Ferrellgas Escrow LLC, 8.956%, Maturing 03/30/31^ | | | 1,125 | | | | 1,125,000 | |
| | |
Wireless Telecommunication Services 0.0% | | | | | | | | |
| | |
Digicel International Finance Ltd. (Jamaica) (original cost $305,201; purchased 01/26/24 - 01/29/24)*^(f) | | | 50,575 | | | | 541,233 | |
| | | | | | | | |
| | |
TOTAL PREFERRED STOCKS
(cost $1,441,450) | | | | | | | 1,666,233 | |
| | | | | | | | |
| | |
TOTAL LONG-TERM INVESTMENTS
(cost $4,763,518,096) | | | | | | | 4,743,413,045 | |
| | | | | | | | |
| | |
SHORT-TERM INVESTMENTS 3.0% | | | | | | | | |
| | |
AFFILIATED MUTUAL FUNDS | | | | | | | | |
PGIM Core Government Money Market Fund (7-day effective yield 5.562%)(wa) | | | 109,245,115 | | | | 109,245,115 | |
PGIM Core Short-Term Bond Fund(wa) | | | 4,036,329 | | | | 36,811,321 | |
| | | | | | | | |
| | |
TOTAL SHORT-TERM INVESTMENTS
(cost $146,054,400) | | | | | | | 146,056,436 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS 99.4%
(cost $4,909,572,496) | | | | | | | 4,889,469,481 | |
Other assets in excess of liabilities(z) 0.6% | | | | | | | 28,096,492 | |
| | | | | | | | |
| | |
NET ASSETS 100.0% | | | | | | $ | 4,917,565,973 | |
| | | | | | | | |
See Notes to Financial Statements.
134
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
See the Glossary for a list of the abbreviation(s) used in the annual report.
| * | Non-income producing security. |
| # | Principal or notional amount is shown in U.S. dollars unless otherwise stated. |
| ^ | Indicates a Level 3 instrument. The aggregate value of Level 3 instruments is $98,285,179 and 2.0% of net assets. |
| (c) | Variable rate instrument. The interest rate shown reflects the rate in effect at August 31, 2024. |
| (cc) | Variable rate instrument. The rate shown is based on the latest available information as of August 31, 2024. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description. |
| (d) | Represents issuer in default on interest payments and/or principal repayment. Non-income producing security. Such securities may be post-maturity. |
| (f) | Indicates a restricted security that is acquired in unregistered, private sales from the issuing company or from an affiliate of the issuer and is considered restricted as to disposition under federal securities law; the aggregate original cost of such securities is $137,347,523. The aggregate value of $93,131,297 is 1.9% of net assets. |
| (h) | Represents security, or a portion thereof, segregated as collateral for OTC derivatives. |
| (k) | Represents security, or a portion thereof, segregated as collateral for centrally cleared/exchange-traded derivatives. |
| (p) | Represents a security with a delayed settlement and therefore the interest rate is not available until settlement which is after the period end. |
| (s) | Represents zero coupon bond or principal only security. Rate represents yield to maturity at purchase date. |
| (wa) | Represents investments in Funds affiliated with the Manager. |
| (z) | Includes net unrealized appreciation/(depreciation) and/or market value of the below holdings which are excluded from the Schedule of Investments: |
Unfunded loan commitments outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | |
Borrower | | Principal
Amount
(000)# | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
Doncasters US Finance LLC, Delayed Draw Term Loan,
1.500%, Maturity Date 04/23/30 (cost $1,782,143) | | | 1,802 | | | $ | 1,787,989 | | | $ | 5,846 | | | $ | — | |
Likewize Corp., Delayed Draw Term Loan, 1.000%, Maturity
Date 08/15/29 (cost $375,000) | | | 375 | | | | 363,750 | | | | — | | | | (11,250 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | $ | 2,151,739 | | | $ | 5,846 | | | $ | (11,250 | ) |
| | | | | | | | | | | | | | | | |
Futures contracts outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | |
Number
of
Contracts | | Type | | Expiration
Date | | Current
Notional
Amount | | Value /
Unrealized
Appreciation
(Depreciation) |
Long Positions: | | | | | | | | | | | | | | | |
1,133 | | 2 Year U.S. Treasury Notes | | | | Dec. 2024 | | | | $ | 235,150,611 | | | | $ | (90,446 | ) |
36 | | 5 Year Euro-Bobl | | | | Dec. 2024 | | | | | 4,733,942 | | | | | (3,610 | ) |
5,131 | | 5 Year U.S. Treasury Notes | | | | Dec. 2024 | | | | | 561,323,396 | | | | | (1,013,579 | ) |
43 | | 20 Year U.S. Treasury Bonds | | | | Dec. 2024 | | | | | 5,294,375 | | | | | (59,500 | ) |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 135
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
Futures contracts outstanding at August 31, 2024 (continued):
| | | | | | | | | | | | | | | | | |
Number of
Contracts | | Type | | Expiration
Date | | Current
Notional
Amount | | Value /
Unrealized
Appreciation
(Depreciation) |
Long Positions (cont’d): | | | | | | | | | | | | | | | |
40 | | 30 Year U.S. Ultra Treasury Bonds | | | | Dec. 2024 | | | | $ | 5,277,500 | | | | $ | (79,546 | ) |
3 | | Euro Schatz Index | | | | Dec. 2024 | | | | | 353,673 | | | | | (3 | ) |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | (1,246,684 | ) |
| | | | | | | | | | | | | | | | | |
Short Positions: | | | | | | | | | | | | | | | |
23 | | 10 Year Euro-Bund | | | | Dec. 2024 | | | | | 3,391,588 | | | | | 4,937 | |
466 | | 10 Year U.S. Treasury Notes | | | | Dec. 2024 | | | | | 52,920,125 | | | | | 299,880 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | 304,817 | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | $ | (941,867 | ) |
| | | | | | | | | | | | | | | | | |
Forward foreign currency exchange contracts outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | |
Purchase Contracts | | Counterparty | | | Notional
Amount
(000) | | | Value at
Settlement
Date | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
OTC Forward Foreign Currency Exchange Contracts: | | | | | | | | | | | | | |
British Pound, | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 09/03/24 | | | MSI | | | GBP | 14,133 | | | $ | 18,654,178 | | | $ | 18,561,861 | | | $ | — | | | $ | (92,317 | ) |
Euro, | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 09/03/24 | | | BOA | | | EUR | 52,338 | | | | 58,441,864 | | | | 57,865,305 | | | | — | | | | (576,559 | ) |
Expiring 09/03/24 | | | GSI | | | EUR | 10,864 | | | | 11,917,912 | | | | 12,010,729 | | | | 92,817 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 89,013,954 | | | $ | 88,437,895 | | | | 92,817 | | | | (668,876 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Sale Contracts | | Counterparty | | | Notional
Amount
(000) | | | Value at
Settlement
Date | | | Current
Value | | | Unrealized
Appreciation | | | Unrealized
Depreciation | |
OTC Forward Foreign Currency Exchange Contracts: | | | | | | | | | | | | | | | | | |
British Pound, | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 09/03/24 | | | BNP | | | GBP | 14,133 | | | $ | 18,197,639 | | | $ | 18,561,861 | | | $ | — | | | $ | (364,222 | ) |
Expiring 10/02/24 | | | MSI | | | GBP | 14,133 | | | | 18,659,139 | | | | 18,566,301 | | | | 92,838 | | | | — | |
Euro, | | | | | | | | | | | | | | | | | | | | | | | | |
Expiring 09/03/24 | | | BOA | | | EUR | 63,202 | | | | 68,676,784 | | | | 69,876,034 | | | | — | | | | (1,199,250 | ) |
Expiring 10/02/24 | | | BOA | | | EUR | 52,338 | | | | 58,520,214 | | | | 57,939,856 | | | | 580,358 | | | | — | |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | $ | 164,053,776 | | | $ | 164,944,052 | | | | 673,196 | | | | (1,563,472 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | $ | 766,013 | | | $ | (2,232,348 | ) |
| | | | | | | | | | | | | | | | | | | | | | | | |
See Notes to Financial Statements.
136
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
Credit default swap agreement outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity/ Obligation | | Termination
Date | | Fixed
Rate | | Notional
Amount
(000)#(3) | | Implied Credit
Spread at
August 31,
2024(4) | | Value at
Trade Date | | Value at
August 31,
2024 | | Unrealized
Appreciation
(Depreciation) |
Centrally Cleared Credit Default Swap Agreement on credit indices - Sell Protection(2): | |
CDX.NA.HY.42.V1 | | | | 06/20/29 | | | | | 5.000%(Q) | | | | | 102,955 | | | | | 3.215 | % | | | $ | 6,185,919 | | | | $ | 8,407,856 | | | | $ | 2,221,937 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
The Fund entered into credit default swaps (“CDS”) to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be short the credit as the value of the contract rises the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases.
| (1) | If the Fund is a buyer of protection, it pays the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) receive from the seller of protection an amount equal to the notional amount of the swap and make delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) receive a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| (2) | If the Fund is a seller of protection, it receives the fixed rate. When a credit event occurs, as defined under the terms of that particular swap agreement, the Fund will either (i) pay to the buyer of protection an amount equal to the notional amount of the swap and take delivery of the referenced obligation or underlying securities comprising the referenced index or (ii) pay a net settlement amount in the form of cash or securities equal to the notional amount of the swap less the recovery value of the referenced obligation or underlying securities comprising the referenced index. |
| (3) | Notional amount represents the maximum potential amount the Fund could be required to pay as a seller of credit protection or receive as a buyer of credit protection if a credit event occurs as defined under the terms of that particular swap agreement. |
| (4) | Implied credit spreads, represented in absolute terms, utilized in determining the fair value of credit default swap agreements where the Fund is the seller of protection as of the reporting date serve as an indicator of the current status of the payment/ performance risk and represent the likelihood of risk of default for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include up-front payments required to be made to enter into the agreement. Wider credit spreads represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement. |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 137
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
Total return swap agreements outstanding at August 31, 2024:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Reference Entity | | Financing
Rate | | Counterparty | | Termination
Date | | Long
(Short)
Notional
Amount
(000)#(1) | | Fair
Value | | Upfront
Premiums
Paid
(Received) | | Unrealized
Appreciation
(Depreciation)(2) |
|
OTC Total Return Swap Agreements: | |
iBoxx US Dollar Liquid High Yield Index(T) | | |
| 1 Day
SOFR(Q)/
5.320% |
| | | | BARC | | | | | 09/20/24 | | | | | 50,100 | | | | $ | 1,694,716 | | | | | $— | | | | $ | 1,694,716 | |
iBoxx US Dollar Liquid High Yield Index(T) | | |
| 1 Day
SOFR(Q)/
5.320% |
| | | | MSI | | | | | 12/20/24 | | | | | 33,960 | | | | | 982,589 | | | | | — | | | | | 982,589 | |
iBoxx US Dollar Liquid High Yield Index(T) | | |
| 1 Day
SOFR(Q)/
5.320% |
| | | | MSI | | | | | 12/20/24 | | | | | 40,050 | | | | | 1,165,833 | | | | | — | | | | | 1,165,833 | |
iBoxx US Dollar Liquid High Yield Index(T) | | |
| 1 Day
SOFR(Q)/
5.320% |
| | | | BARC | | | | | 03/20/25 | | | | | 12,300 | | | | | 185,871 | | | | | — | | | | | 185,871 | |
iBoxx US Dollar Liquid High Yield Index(T) | | |
| 1 Day
SOFR(Q)/
5.320% |
| | | | MSI | | | | | 03/20/25 | | | | | 42,890 | | | | | (173,820 | ) | | | | — | | | | | (173,820 | ) |
iBoxx US Dollar Liquid Investment Grade Index(T) | | |
| 1 Day
SOFR(Q)/
5.320% |
| | | | BNP | | | | | 09/20/24 | | | | | (9,071) | | | | | (507,688 | ) | | | | — | | | | | (507,688 | ) |
iBoxx US Dollar Liquid Investment Grade Index(T) | | |
| 1 Day
SOFR(Q)/
5.320% |
| | | | MSI | | | | | 12/20/24 | | | | | (22,250) | | | | | 252,791 | | | | | — | | | | | 252,791 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | $ | 3,600,292 | | | | | $— | | | | $ | 3,600,292 | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | On a long total return swap, the Fund receives payments for any positive return on the reference entity (makes payments for any negative return) and pays the financing rate. On a short total return swap, the Fund makes payments for any positive return on the reference entity (receives payments for any negative return) and receives the financing rate. |
| (2) | Upfront/recurring fees or commissions, as applicable, are included in the net unrealized appreciation (depreciation). |
Balances Reported in the Statement of Assets and Liabilities for OTC Swap Agreements:
| | | | | | | | |
| | | Premiums Paid | | Premiums Received | | Unrealized
Appreciation | | Unrealized
Depreciation |
OTC Swap Agreements | | $— | | $— | | $4,281,800 | | $(681,508) |
See Notes to Financial Statements.
138
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
Summary of Collateral for Centrally Cleared/Exchange-traded Derivatives:
Cash and securities segregated as collateral, including pending settlement for closed positions, to cover requirements for centrally cleared/exchange-traded derivatives are listed by broker as follows:
| | | | | | | | | | |
Broker | | Cash and/or Foreign Currency | | Securities Market Value |
CGM | | | | $2,725,000 | | | | | $12,693,579 | |
| | | | | | | | | | |
Fair Value Measurements:
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—unadjusted quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
The following is a summary of the inputs used as of August 31, 2024 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Long-Term Investments | | | | | | | | | | | | |
Asset-Backed Securities | | | | | | | | | | | | |
Collateralized Loan Obligations | | $ | — | | | $ | 167,977,089 | | | $ | — | |
Corporate Bonds | | | — | | | | 3,825,023,904 | | | | 2,689,004 | |
Floating Rate and Other Loans | | | — | | | | 455,668,673 | | | | 32,947,658 | |
Sovereign Bonds | | | — | | | | 639,163 | | | | — | |
U.S. Treasury Obligations | | | — | | | | 63,912,493 | | | | — | |
Affiliated Exchange-Traded Funds | | | 119,286,300 | | | | — | | | | — | |
Common Stocks. | | | 4,730,562 | | | | 7,889,682 | | | | 60,982,284 | |
Preferred Stocks | | | — | | | | — | | | | 1,666,233 | |
Short-Term Investments | | | | | | | | | | | | |
Affiliated Mutual Funds | | | 146,056,436 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 270,073,298 | | | $ | 4,521,111,004 | | | | $98,285,179 | |
| | | | | | | | | | | | |
| | | |
Other Financial Instruments* | | | | | | | | | | | | |
Assets | | | | | | | | | | | | |
Unfunded Loan Commitment | | $ | — | | | $ | 5,846 | | | $ | — | |
Futures Contracts | | | 304,817 | | | | — | | | | — | |
OTC Forward Foreign Currency Exchange Contracts | | | — | | | | 766,013 | | | | — | |
Centrally Cleared Credit Default Swap Agreement | | | — | | | | 2,221,937 | | | | — | |
OTC Total Return Swap Agreements | | | — | | | | 4,281,800 | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 304,817 | | | $ | 7,275,596 | | | $ | — | |
| | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 139
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | Level 1 | | | Level 2 | | | Level 3 | |
Other Financial Instruments* (continued) | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | |
Unfunded Loan Commitment | | $ | — | | | $ | (11,250 | ) | | $ | — | |
Futures Contracts | | | (1,246,684 | ) | | | — | | | | — | |
OTC Forward Foreign Currency Exchange Contracts | | | — | | | | (2,232,348 | ) | | | — | |
OTC Total Return Swap Agreements | | | — | | | | (681,508 | ) | | | — | |
| | | | | | | | | | | | |
Total | | $ | (1,246,684 | ) | | $ | (2,925,106 | ) | | $ | — | |
| | | | | | | | | | | | |
| * | Other financial instruments are derivative instruments, with the exception of unfunded loan commitments, and are not reflected in the Schedule of Investments. Futures, forwards, centrally cleared swap contracts and unfunded loan commitments are recorded at net unrealized appreciation (depreciation) and OTC swap contracts are recorded at fair value. |
The following is a reconciliation of assets in which unobservable inputs (Level 3) were used in determining fair value:
| | | | | | | | | | | | | | | | | | | | |
| | | | | | Floating Rate | | | | | | | | | | |
| | | Corporate | | | and | | | Common | | | Preferred | | | | |
| | | Bonds | | | Other Loans | | | Stocks | | | Stocks | | | Rights | |
Balance as of 08/31/23 | | $ | 6,370,007 | | | $ | 8,928,536 | | | $ | 11,695,650 | | | $ | — | | | $ | 70,110 | |
Realized gain (loss) | | | 18,032 | | | | 3,386,026 | | | | (410 | ) | | | 36,478 | | | | — | |
Change in unrealized appreciation (depreciation) | | | (5,467 | ) | | | (598,086 | ) | | | (12,546,544 | ) | | | 224,783 | | | | (69,937 | ) |
Purchases/Exchanges /Issuances | | | 2,706,130 | | | | 32,885,405 | | | | 53,994,771 | | | | 2,471,020 | | | | — | |
Sales/Paydowns | | | (6,399,645 | ) | | | (11,947,426 | ) | | | (1 | ) | | | (1,066,048 | ) | | | (173 | ) |
Accrued discount/premium | | | (53 | ) | | | 293,803 | | | | — | | | | — | | | | — | |
Transfers into Level 3* | | | — | | | | — | | | | 7,838,818 | | | | — | | | | — | |
Transfers out of Level 3* | | | — | | | | (600 | ) | | | — | | | | — | | | | — | |
| | | | | | | | | | | | | | | | | | | | |
Balance as of 08/31/24 | | $ | 2,689,004 | | | $ | 32,947,658 | | | $ | 60,982,284 | | | $ | 1,666,233 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
Change in unrealized appreciation (depreciation) relating to securities still held at reporting period end | | $ | (5,460 | ) | | $ | 194,332 | | | $ | (12,546,544 | ) | | $ | 224,783 | | | $ | — | |
| | | | | | | | | | | | | | | | | | | | |
| * | It is the Fund’s policy to recognize transfers in and transfers out at the securities’ fair values as of the beginning of period. Securities transferred between Level 2 and Level 3 are due to changes in the method utilized in valuing the investments. Transfers from Level 2 to Level 3 are typically a result of a change from the use of methods used by independent pricing services (Level 2) to the use of a single broker quote or valuation technique which utilizes significant unobservable inputs due to an absence of current or reliable market quotations (Level 3). Transfers from Level 3 to Level 2 are a result of the availability of current and reliable market data provided by independent pricing services or other valuation techniques which utilize observable inputs. In accordance with the requirements of ASC 820, the amounts of transfers into and out of Level 3, if material, are disclosed in the Notes to the Schedule of Investments of the Fund. |
See Notes to Financial Statements.
140
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
Level 3 securities as presented in the table above are being fair valued using pricing methodologies approved by the Board, which contain unobservable inputs as follows:
| | | | | | | | | | | | | | | | | | |
Level 3 Securities** | | Fair Value as
of
August 31,
2024 | | | Valuation
Approach | | | Valuation
Methodology | | | Unobservable
Inputs | | | Inputs
(Range) |
Corporate Bonds | | $ | 1,432 | | | | Market | | | | Recovery Value | | | | Recovery Rate | | | 0.00% -
48.00% |
Corporate Bonds | | | 2,687,572 | | | | Market | | |
| Transaction
Based |
| |
| Unadjusted
Price |
| | NA |
Floating Rate and Other Loans | | | 10,181,717 | | | | Market | | | | Enterprise Value | | | | EBITDA Multiple | | | 8.3x |
Common Stocks | | | 20,516,879 | | | | Market | | |
| Adjusted Trade
Price |
| | | Premium Rate | | | 20.00% |
Common Stocks | | | 3,931,366 | | | | Market | | | | Enterprise Value | | | | EBITDA Multiple | | | 4.0x - 12.2x |
Common Stocks | | | 90,711 | | | | Market | | | | Enterprise Value | | | | Recovery Rate | | | 0.50% |
Preferred Stocks | | | 541,233 | | | | Market | | | | Enterprise Value | | | | Recovery Rate | | | 10.70% |
Preferred Stocks | | | 1,125,000 | | | | Market | | |
| Transaction
Based |
| |
| Unadjusted
Price |
| | NA |
| | | | | | | | | | | | | | | | | | |
| | $ | 39,075,910 | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | |
| ** | The table does not include Level 3 securities and/or derivatives that are valued by independent pricing vendors or brokers. As of August 31, 2024, the aggregate value of these securities and/or derivatives was $59,209,269. The unobservable inputs for these investments were not developed by the Fund and are not readily available (e.g. single broker quotes). |
Industry Classification:
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of August 31, 2024 were as follows:
| | | | |
Telecommunications | | | 5.9 | % |
Media | | | 5.3 | |
Leisure Time | | | 5.3 | |
Diversified Financial Services | | | 5.0 | |
Home Builders | | | 4.6 | |
Oil & Gas | | | 4.1 | |
Retail | | | 3.7 | |
Commercial Services | | | 3.4 | |
Collateralized Loan Obligations | | | 3.4 | |
Software | | | 3.3 | |
Electric | | | 3.0 | |
Affiliated Mutual Funds | | | 3.0 | |
Entertainment | | | 2.9 | |
Lodging | | | 2.7 | |
| | | | |
Chemicals | | | 2.6 | % |
Affiliated Exchange-Traded Funds | | | 2.4 | |
Packaging & Containers | | | 2.4 | |
Pipelines | | | 2.4 | |
Real Estate Investment Trusts (REITs) | | | 2.3 | |
Mining | | | 2.2 | |
Auto Parts & Equipment | | | 2.1 | |
Insurance | | | 2.0 | |
Healthcare-Services | | | 1.9 | |
Foods | | | 1.8 | |
Pharmaceuticals | | | 1.8 | |
Computers | | | 1.7 | |
Auto Manufacturers | | | 1.6 | |
Internet | | | 1.6 | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 141
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
Industry Classification (continued):
| | | | |
Building Materials | | | 1.5 | % |
Aerospace & Defense | | | 1.5 | |
U.S. Treasury Obligations | | | 1.3 | |
Real Estate | | | 1.2 | |
Airlines | | | 1.2 | |
Banks | | | 1.1 | |
Healthcare-Products | | | 0.9 | |
Machinery-Diversified | | | 0.7 | |
Electrical Components & Equipment | | | 0.6 | |
Iron/Steel | | | 0.6 | |
Distribution/Wholesale | | | 0.5 | |
Transportation | | | 0.5 | |
Gas Utilities | | | 0.4 | |
Metal Fabricate/Hardware | | | 0.4 | |
Miscellaneous Manufacturing | | | 0.3 | |
Gas | | | 0.3 | |
Oil, Gas & Consumable Fuels | | | 0.3 | |
Investment Companies | | | 0.2 | |
Housewares | | | 0.2 | |
Household Products/Wares | | | 0.2 | |
Advertising | | | 0.2 | |
| | | | |
Apparel | | | 0.2 | % |
Electronics | | | 0.2 | |
Coal | | | 0.1 | |
Hotels, Restaurants & Leisure | | | 0.1 | |
Agriculture | | | 0.1 | |
Wireless Telecommunication Services | | | 0.1 | |
Environmental Control | | | 0.1 | |
Machinery-Construction & Mining | | | 0.0 | * |
Oil & Gas Services | | | 0.0 | * |
Electric Utilities | | | 0.0 | * |
Electronic Equipment, Instruments & Components | | | 0.0 | * |
Engineering & Construction | | | 0.0 | * |
Sovereign Bonds | | | 0.0 | * |
| | | | |
| | | 99.4 | |
Other assets in excess of liabilities | | | 0.6 | |
| | | | |
| |
| | | 100.0 | % |
| | | | |
Effects of Derivative Instruments on the Financial Statements and Primary Underlying Risk Exposure:
The Fund invested in derivative instruments during the reporting period. The primary types of risk associated with these derivative instruments are credit risk, foreign exchange risk, and interest rate risk. See the Notes to Financial Statements for additional detail regarding these derivative instruments and their risks. The effect of such derivative instruments on the Fund’s financial position and financial performance as reflected in the Statement of Assets and Liabilities and Statement of Operations is presented in the summary below.
Fair values of derivative instruments as of August 31, 2024 as presented in the Statement of Assets and Liabilities:
| | | | | | | | | | |
| | | Asset Derivatives | | Liability Derivatives | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Statement of Assets and Liabilities Location | | Fair
Value | | Statement of Assets and Liabilities Location | | Fair
Value | |
Credit contracts | | Due from/to broker-variation margin swaps | | $2,221,937* | | — | | $ | — | |
See Notes to Financial Statements.
142
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
| | | | | | | | | | | | |
| | | Asset Derivatives | | | Liability Derivatives | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Statement of Assets and Liabilities Location | | Fair
Value | | | Statement of Assets and Liabilities Location | | Fair
Value | |
Foreign exchange contracts | | Unrealized appreciation on OTC forward foreign currency exchange contracts | | $ | 766,013 | | | Unrealized depreciation on OTC forward foreign currency exchange contracts | | $ | 2,232,348 | |
| | | | |
Interest rate contracts | | Due from/to broker-variation margin futures | | | 304,817 | * | | Due from/to broker-variation margin futures | | | 1,246,684 | * |
| | | | |
Interest rate contracts | | Unrealized appreciation on OTC swap agreements | | | 4,281,800 | | | Unrealized depreciation on OTC swap agreements | | | 681,508 | |
| | | | | | | | | | | | |
| | | | |
| | | | $ | 7,574,567 | | | | | $ | 4,160,540 | |
| | | | | | | | | | | | |
| * | Includes cumulative appreciation (depreciation) as reported in the schedule of open futures and centrally cleared swap contracts. 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 year ended August 31, 2024 are as follows:
| | | | | | | | | | | | | | | |
Amount of Realized Gain (Loss) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Futures | | Forward
Currency
Exchange
Contracts | | Swaps |
| | | |
Credit contracts | | | $ | — | | | | $ | — | | | | $ | 16,618,701 | |
Foreign exchange contracts | | | | — | | | | | 616,010 | | | | | — | |
Interest rate contracts | | | | 8,252,509 | | | | | — | | | | | 156,279 | |
| | | | | | | | | | | | | | | |
| | | |
Total | | | $ | 8,252,509 | | | | $ | 616,010 | | | | $ | 16,774,980 | |
| | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
Change in Unrealized Appreciation (Depreciation) on Derivatives Recognized in Income | |
Derivatives not accounted for as hedging instruments, carried at fair value | | Futures | | Forward
Currency
Exchange
Contracts | | Swaps |
| | | |
Credit contracts | | | $ | — | | | | $ | — | | | | $ | 2,264,985 | |
Foreign exchange contracts | | | | — | | | | | (1,911,055 | ) | | | | — | |
Interest rate contracts | | | | (4,054,427 | ) | | | | — | | | | | 3,338,693 | |
| | | | | | | | | | | | | | | |
| | | |
Total | | | $ | (4,054,427 | ) | | | $ | (1,911,055 | ) | | | $ | 5,603,678 | |
| | | | | | | | | | | | | | | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 143
PGIM Short Duration High Yield Income Fund
Schedule of Investments (continued)
as of August 31, 2024
For the year ended August 31, 2024, the Fund’s average volume of derivative activities is as follows:
| | |
| Derivative Contract Type | | Average Volume of Derivative Activities* |
|
| |
Futures Contracts - Long Positions (1) | | $926,411,522 |
| |
Futures Contracts - Short Positions (1) | | 44,733,151 |
| |
Forward Foreign Currency Exchange Contracts - Purchased (2) | | 69,693,614 |
| |
Forward Foreign Currency Exchange Contracts - Sold (2) | | 136,324,285 |
| |
Credit Default Swap Agreements - Buy Protection (1) | | 49,664,000 |
| |
Credit Default Swap Agreements - Sell Protection (1) | | 138,639,790 |
| |
Total Return Swap Agreements (1) | | 77,212,200 |
|
| * | Average volume is based on average quarter end balances for the year ended August 31, 2024. |
| (1) | Notional Amount in USD. |
| (2) | Value at Settlement Date. |
Financial Instruments/Transactions—Summary of Offsetting and Netting Arrangements:
The Fund invested in OTC derivatives during the reporting period that are either offset in accordance with current requirements or are subject to enforceable master netting arrangements or similar agreements that permit offsetting. The information about offsetting and related netting arrangements for OTC derivatives where the legal right to set-off exists is presented in the summary below.
Offsetting of OTC derivative assets and liabilities:
| | | | | | | | | | | | | | | | | | | | | | | | | |
Counterparty | | Gross Amounts of
Recognized
Assets(1) | | Gross Amounts of
Recognized
Liabilities(1) | | Net Amounts of
Recognized
Assets/(Liabilities) | | Collateral
Pledged/(Received)(2) | | Net Amount |
BARC | | | $ | 1,880,587 | | | | $ | — | | | | $ | 1,880,587 | | | | $ | (1,880,587 | ) | | | $ | — | |
BNP | | | | — | | | | | (871,910 | ) | | | | (871,910 | ) | | | | 865,765 | | | | | (6,145 | ) |
BOA | | | | 580,358 | | | | | (1,775,809 | ) | | | | (1,195,451 | ) | | | | 1,195,451 | | | | | — | |
GSI | | | | 92,817 | | | | | — | | | | | 92,817 | | | | | — | | | | | 92,817 | |
MSI | | | | 2,494,051 | | | | | (266,137 | ) | | | | 2,227,914 | | | | | (254,072 | ) | | | | 1,973,842 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| | | $ | 5,047,813 | | | | $ | (2,913,856 | ) | | | $ | 2,133,957 | | | | $ | (73,443 | ) | | | $ | 2,060,514 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (1) | Includes unrealized appreciation/(depreciation) on swaps and forwards, premiums paid/(received) on swap agreements and market value of purchased and written options, as represented on the Statement of Assets and Liabilities. |
| (2) | Collateral amount disclosed by the Fund is limited to the market value of financial instruments/transactions and the Fund’s OTC derivative exposure by counterparty. |
See Notes to Financial Statements.
144
PGIM Short Duration High Yield Income Fund
Statement of Assets & Liabilities
as of August 31, 2024
| | | | |
| |
Assets | | | | |
Investments at value: | | | | |
Unaffiliated investments (cost $4,644,522,765) | | $ | 4,624,126,745 | |
Affiliated investments (cost $265,049,731) | | | 265,342,736 | |
Cash | | | 5,301 | |
Foreign currency, at value (cost $3,430,670) | | | 3,453,821 | |
Dividends and interest receivable | | | 66,259,999 | |
Receivable for Fund shares sold | | | 12,144,857 | |
Unrealized appreciation on OTC swap agreements | | | 4,281,800 | |
Deposit with broker for centrally cleared/exchange-traded derivatives | | | 2,725,000 | |
Receivable for investments sold | | | 2,288,753 | |
Unrealized appreciation on OTC forward foreign currency exchange contracts | | | 766,013 | |
Due from broker—variation margin swaps | | | 130,310 | |
Unrealized appreciation on unfunded loan commitment | | | 5,846 | |
Prepaid expenses and other assets | | | 44,255 | |
| | | | |
| |
Total Assets | | | 4,981,575,436 | |
| | | | |
| |
Liabilities | | | | |
Payable for investments purchased | | | 33,910,062 | |
Payable for Fund shares purchased | | | 20,713,545 | |
Management fee payable | | | 2,517,705 | |
Unrealized depreciation on OTC forward foreign currency exchange contracts | | | 2,232,348 | |
Dividends payable | | | 1,839,448 | |
Due to broker—variation margin futures | | | 1,163,230 | |
Accrued expenses and other liabilities | | | 696,519 | |
Unrealized depreciation on OTC swap agreements | | | 681,508 | |
Distribution fee payable | | | 221,014 | |
Affiliated transfer agent fee payable | | | 13,114 | |
Unrealized depreciation on unfunded loan commitment | | | 11,250 | |
Directors’ fees payable | | | 9,720 | |
| | | | |
| |
Total Liabilities | | | 64,009,463 | |
| | | | |
| |
Net Assets | | $ | 4,917,565,973 | |
| | | | |
| |
| | | | | |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 5,813,297 | |
Paid-in capital in excess of par | | | 5,391,177,242 | |
Total distributable earnings (loss) | | | (479,424,566 | ) |
| | | | |
| |
Net assets, August 31, 2024 | | $ | 4,917,565,973 | |
| | | | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 145
PGIM Short Duration High Yield Income Fund
Statement of Assets & Liabilities (continued)
as of August 31, 2024
| | | | | | | | |
| | |
Class A | | | | | | | | |
Net asset value and redemption price per share,
($415,668,631 ÷ 49,151,417 shares of common stock issued and outstanding) | | $ | 8.46 | | | | | |
Maximum sales charge (2.25% of offering price) | | | 0.19 | | | | | |
| | | | | | | | |
| | |
Maximum offering price to public | | $ | 8.65 | | | | | |
| | | | | | | | |
| | |
Class C | | | | | | | | |
Net asset value, offering price and redemption price per share,
($158,601,094 ÷ 18,755,506 shares of common stock issued and outstanding) | | $ | 8.46 | | | | | |
| | | | | | | | |
| | |
Class Z | | | | | | | | |
Net asset value, offering price and redemption price per share,
($3,815,741,464 ÷ 451,094,771 shares of common stock issued and outstanding) | | $ | 8.46 | | | | | |
| | | | | | | | |
| | |
Class R6 | | | | | | | | |
Net asset value, offering price and redemption price per share,
($527,554,784 ÷ 62,327,960 shares of common stock issued and outstanding) | | $ | 8.46 | | | | | |
| | | | | | | | |
See Notes to Financial Statements.
146
PGIM Short Duration High Yield Income Fund
Statement of Operations
Year Ended August 31, 2024
| | | | |
Net Investment Income (Loss) | |
Income | | | | |
Interest income (net of $729 foreign withholding tax) | | $ | 308,026,673 | |
Affiliated dividend income | | | 14,264,262 | |
Affiliated income from securities lending, net | | | 961,035 | |
Unaffiliated dividend income | | | 416,623 | |
| | | | |
| |
Total income | | | 323,668,593 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 32,489,162 | |
Distribution fee(a) | | | 2,627,751 | |
Transfer agent’s fees and expenses (including affiliated expense of $80,029)(a) | | | 4,360,351 | |
Custodian and accounting fees | | | 428,020 | |
Shareholders’ reports | | | 256,022 | |
Registration fees(a) | | | 252,160 | |
Professional fees | | | 79,220 | |
Directors’ fees | | | 75,280 | |
Audit fee | | | 45,580 | |
Miscellaneous | | | 125,089 | |
| | | | |
| |
Total expenses | | | 40,738,635 | |
Less: Fee waiver and/or expense reimbursement(a) | | | (2,809,287 | ) |
| | | | |
| |
Net expenses | | | 37,929,348 | |
| | | | |
Net investment income (loss) | | | 285,739,245 | |
| | | | |
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | |
Net realized gain (loss) on: | | | | |
Investment transactions (including affiliated of $113,138) | | | (69,136,753 | ) |
Futures transactions | | | 8,252,509 | |
Forward currency contract transactions | | | 616,010 | |
Swap agreement transactions | | | 16,774,980 | |
Foreign currency transactions | | | 92,879 | |
| | | | |
| | | (43,400,375 | ) |
| | | | |
Net change in unrealized appreciation (depreciation) on: | | | | |
Investments (including affiliated of $(65,620)) | | | 229,443,365 | |
Futures | | | (4,054,427 | ) |
Forward currency contracts | | | (1,911,055 | ) |
Swap agreements | | | 5,603,678 | |
Foreign currencies | | | (74,074 | ) |
Unfunded loan commitment | | | (5,404 | ) |
| | | | |
| |
| | | 229,002,083 | |
| | | | |
Net gain (loss) on investment and foreign currency transactions | | | 185,601,708 | |
| | | | |
| |
Net Increase (Decrease) In Net Assets Resulting From Operations | | $ | 471,340,953 | |
| | | | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 147
PGIM Short Duration High Yield Income Fund
Statement of Operations (continued)
Year Ended August 31, 2024
| (a) | Class specific expenses and waivers were as follows: |
| | | | | | | | | | | | | | | | |
| | | Class A | | | Class C | | | Class Z | | | Class R6 | |
| | | | |
Distribution fee | | | 974,569 | | | | 1,653,182 | | | | — | | | | — | |
| | | | |
Transfer agent’s fees and expenses | | | 293,185 | | | | 139,682 | | | | 3,898,223 | | | | 29,261 | |
| | | | |
Registration fees | | | 48,019 | | | | 30,073 | | | | 127,302 | | | | 46,766 | |
| | | | |
Fee waiver and/or expense reimbursement | | | (172,688 | ) | | | (98,144 | ) | | | (2,428,161 | ) | | | (110,294 | ) |
See Notes to Financial Statements.
148
PGIM Short Duration High Yield Income Fund
Statements of Changes in Net Assets
| | | | | | | | |
| |
| | | Year Ended
August 31, | |
| | |
| | | 2024 | | | 2023 | |
| | |
Increase (Decrease) in Net Assets | | | | | | | | |
| | |
Operations | | | | | | | | |
Net investment income (loss) | | $ | 285,739,245 | | | $ | 258,305,903 | |
Net realized gain (loss) on investment and foreign currency transactions | | | (43,400,375 | ) | | | (67,872,183 | ) |
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | | | 229,002,083 | | | | 104,130,309 | |
| | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | | 471,340,953 | | | | 294,564,029 | |
| | | | | | | | |
| | |
Dividends and Distributions | | | | | | | | |
Distributions from distributable earnings | | | | | | | | |
Class A | | | (25,507,673 | ) | | | (22,481,636 | ) |
Class C | | | (9,599,566 | ) | | | (10,227,256 | ) |
Class Z | | | (250,196,663 | ) | | | (223,123,846 | ) |
Class R6 | | | (34,233,660 | ) | | | (42,592,103 | ) |
| | | | | | | | |
| | | (319,537,562 | ) | | | (298,424,841 | ) |
| | | | | | | | |
| | |
Fund share transactions (Net of share conversions) | | | | | | | | |
Net proceeds from shares sold | | | 1,713,056,375 | | | | 2,398,738,068 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 295,646,114 | | | | 271,659,264 | |
Cost of shares purchased | | | (1,904,807,925 | ) | | | (2,760,525,901 | ) |
| | | | | | | | |
Net increase (decrease) in net assets from Fund share transactions | | | 103,894,564 | | | | (90,128,569 | ) |
| | | | | | | | |
Total increase (decrease) | | | 255,697,955 | | | | (93,989,381 | ) |
| | |
Net Assets: | | | | | | | | |
Beginning of year | | | 4,661,868,018 | | | | 4,755,857,399 | |
| | | | | | | | |
End of year | | $ | 4,917,565,973 | | | $ | 4,661,868,018 | |
| | | | | | | | |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 149
PGIM Short Duration High Yield Income Fund
Financial Highlights
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class A Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $8.19 | | | | $8.19 | | | | $9.08 | | | | $8.75 | | | | $8.97 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.48 | | | | 0.43 | | | | 0.32 | | | | 0.35 | | | | 0.42 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.33 | | | | 0.07 | | | | (0.79 | ) | | | 0.41 | | | | (0.21 | ) |
Total from investment operations | | | 0.81 | | | | 0.50 | | | | (0.47 | ) | | | 0.76 | | | | 0.21 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.54 | ) | | | (0.50 | ) | | | (0.42 | ) | | | (0.43 | ) | | | (0.43 | ) |
Net asset value, end of year | | | $8.46 | | | | $8.19 | | | | $8.19 | | | | $9.08 | | | | $8.75 | |
Total Return(b): | | | 10.26 | % | | | 6.33 | % | | | (5.32 | )% | | | 8.90 | % | | | 2.53 | % |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | $ | 415,669 | | | $ | 382,916 | | | $ | 374,112 | | | $ | 398,715 | | | $ | 321,482 | |
Average net assets (000) | | $ | 389,827 | | | $ | 365,519 | | | $ | 387,572 | | | $ | 356,899 | | | $ | 290,219 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % | | | 1.00 | % |
Expenses before waivers and/or expense reimbursement | | | 1.04 | % | | | 1.04 | % | | | 1.04 | % | | | 1.04 | % | | | 1.07 | % |
Net investment income (loss) | | | 5.83 | % | | | 5.30 | % | | | 3.73 | % | | | 3.86 | % | | | 4.89 | % |
Portfolio turnover rate(d) | | | 61 | % | | | 32 | % | | | 43 | % | | | 67 | % | | | 65 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
150
PGIM Short Duration High Yield Income Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class C Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $8.19 | | | | $8.19 | | | | $9.08 | | | | $8.75 | | | | $8.97 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.42 | | | | 0.37 | | | | 0.26 | | | | 0.28 | | | | 0.36 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.33 | | | | 0.07 | | | | (0.80 | ) | | | 0.42 | | | | (0.21 | ) |
Total from investment operations | | | 0.75 | | | | 0.44 | | | | (0.54 | ) | | | 0.70 | | | | 0.15 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.48 | ) | | | (0.44 | ) | | | (0.35 | ) | | | (0.37 | ) | | | (0.37 | ) |
Net asset value, end of year | | | $8.46 | | | | $8.19 | | | | $8.19 | | | | $9.08 | | | | $8.75 | |
Total Return(b): | | | 9.44 | % | | | 5.54 | % | | | (5.92 | )% | | | 7.97 | % | | | 1.77 | % |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | $ | 158,601 | | | $ | 177,138 | | | $ | 206,423 | | | $ | 277,887 | | | $ | 297,707 | |
Average net assets (000) | | $ | 165,318 | | | $ | 189,264 | | | $ | 249,871 | | | $ | 286,974 | | | $ | 315,727 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.75 | % | | | 1.75 | % | | | 1.75 | % | | | 1.75 | % | | | 1.75 | % |
Expenses before waivers and/or expense reimbursement | | | 1.81 | % | | | 1.80 | % | | | 1.79 | % | | | 1.79 | % | | | 1.81 | % |
Net investment income (loss) | | | 5.08 | % | | | 4.54 | % | | | 2.95 | % | | | 3.14 | % | | | 4.16 | % |
Portfolio turnover rate(d) | | | 61 | % | | | 32 | % | | | 43 | % | | | 67 | % | | | 65 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 151
PGIM Short Duration High Yield Income Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class Z Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $8.19 | | | | $8.19 | | | | $9.08 | | | | $8.75 | | | | $8.97 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.50 | | | | 0.45 | | | | 0.35 | | | | 0.37 | | | | 0.45 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.33 | | | | 0.07 | | | | (0.80 | ) | | | 0.42 | | | | (0.22 | ) |
Total from investment operations | | | 0.83 | | | | 0.52 | | | | (0.45 | ) | | | 0.79 | | | | 0.23 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.56 | ) | | | (0.52 | ) | | | (0.44 | ) | | | (0.46 | ) | | | (0.45 | ) |
Net asset value, end of year | | | $8.46 | | | | $8.19 | | | | $8.19 | | | | $9.08 | | | | $8.75 | |
Total Return(b): | | | 10.53 | % | | | 6.60 | % | | | (5.08 | )% | | | 9.17 | % | | | 2.79 | % |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | $ | 3,815,741 | | | $ | 3,636,190 | | | $ | 3,338,292 | | | $ | 3,120,921 | | | $ | 2,218,850 | |
Average net assets (000) | | $ | 3,684,295 | | | $ | 3,488,961 | | | $ | 3,408,050 | | | $ | 2,529,710 | | | $ | 2,184,180 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.75 | % | | | 0.75 | % | | | 0.75 | % | | | 0.75 | % | | | 0.75 | % |
Expenses before waivers and/or expense reimbursement | | | 0.82 | % | | | 0.81 | % | | | 0.81 | % | | | 0.81 | % | | | 0.83 | % |
Net investment income (loss) | | | 6.08 | % | | | 5.56 | % | | | 3.99 | % | | | 4.09 | % | | | 5.14 | % |
Portfolio turnover rate(d) | | | 61 | % | | | 32 | % | | | 43 | % | | | 67 | % | | | 65 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
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PGIM Short Duration High Yield Income Fund
Financial Highlights (continued)
| | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Class R6 Shares | | | | | | | | | | | | | | | | | | | | |
| | | Year Ended August 31, | |
| | | 2024 | | | 2023 | | | 2022 | | | 2021 | | | 2020 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Year | | | $8.20 | | | | $8.19 | | | | $9.08 | | | | $8.76 | | | | $8.97 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | 0.51 | | | | 0.45 | | | | 0.35 | | | | 0.37 | | | | 0.45 | |
| Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | 0.32 | | | | 0.08 | | | | (0.79 | ) | | | 0.41 | | | | (0.20 | ) |
Total from investment operations | | | 0.83 | | | | 0.53 | | | | (0.44 | ) | | | 0.78 | | | | 0.25 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (0.57 | ) | | | (0.52 | ) | | | (0.45 | ) | | | (0.46 | ) | | | (0.46 | ) |
Net asset value, end of year | | | $8.46 | | | | $8.20 | | | | $8.19 | | | | $9.08 | | | | $8.76 | |
Total Return(b): | | | 10.46 | % | | | 6.78 | % | | | (5.03 | )% | | | 9.10 | % | | | 2.95 | % |
| | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of year (000) | | $ | 527,555 | | | $ | 465,623 | | | $ | 837,030 | | | $ | 821,859 | | | $ | 488,557 | |
Average net assets (000) | | $ | 499,694 | | | $ | 654,572 | | | $ | 913,657 | | | $ | 622,618 | | | $ | 245,125 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % | | | 0.70 | % |
Expenses before waivers and/or expense reimbursement | | | 0.72 | % | | | 0.72 | % | | | 0.71 | % | | | 0.72 | % | | | 0.73 | % |
Net investment income (loss) | | | 6.13 | % | | | 5.55 | % | | | 4.05 | % | | | 4.14 | % | | | 5.13 | % |
Portfolio turnover rate(d) | | | 61 | % | | | 32 | % | | | 43 | % | | | 67 | % | | | 65 | % |
| (a) | Calculated based on average shares outstanding during the year. |
| (b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to GAAP. |
| (c) | Does not include expenses of the underlying funds in which the Fund invests. |
| (d) | The Fund’s portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short-term investments, certain derivatives and in-kind transactions (if any). If such transactions were included, the Fund’s portfolio turnover rate may be higher. |
See Notes to Financial Statements.
PGIM Short Duration High Yield Income Fund 153
Notes to Financial Statements
Prudential Investment Portfolios, Inc. 15 (the “Registered Investment Company” or “RIC”) is registered under the Investment Company Act of 1940, as amended (“1940 Act”), as an open-end management investment company. The RIC is organized as a Maryland Corporation. These financial statements relate to the following series of the RIC: PGIM ESG High Yield Fund, PGIM High Yield Fund and PGIM Short Duration High Yield Income Fund (each, a “Fund” and collectively, the “Funds”). The Funds are classified as diversified funds for purposes of the 1940 Act.
The Funds have the following investment objectives:
| | | | |
| | | |
Fund | | | | Investment Objective(s) |
PGIM ESG High Yield Fund (“ESG High Yield”) | | | | to seek total return, through a combination of current income and capital appreciation |
PGIM High Yield Fund (“High Yield”) | | | | to maximize current income. As a secondary investment objective, the Fund seeks capital appreciation but only when consistent with the Fund’s primary objective of current income |
PGIM Short Duration High Yield Income Fund (“Short Duration High Yield Income”) | | | | to provide a high level of current income |
The Funds follow the investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification (“ASC”) Topic 946 Financial Services — Investment Companies. The following is a summary of significant accounting policies followed by the Funds in the preparation of their financial statements. The policies conform to U.S. generally accepted accounting principles (“GAAP”). The Funds consistently follow such policies in the preparation of their financial statements.
Securities Valuation: The Funds hold securities and other assets and liabilities that are fair valued as of the close of each day (generally, 4:00 PM Eastern time) the New York Stock Exchange (“NYSE”) is open for trading. As described in further detail below, the Funds’ investments are valued daily based on a number of factors, including the type of investment and whether market quotations are readily available. The RIC’s Board of Directors (the “Board”) has approved the Funds’ valuation policies and procedures for security valuation and designated PGIM Investments LLC (“PGIM Investments” or the “Manager”) as the “Valuation Designee,” as defined by Rule 2a-5(b) under the 1940 Act, to perform the fair value determination relating to all Funds investments. Pursuant to the Board’s oversight, the
154
Valuation Designee has established a Valuation Committee to perform the duties and responsibilities of the Valuation Designee under Rule 2a-5. The valuation procedures permit the Funds to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. Fair value is the estimated price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date.
For the fiscal reporting year-end, securities and other assets and liabilities were fair valued at the close of the last U.S. business day. Trading in certain foreign securities may occur when the NYSE is closed (including weekends and holidays). Because such foreign securities trade in markets that are open on weekends and U.S. holidays, the values of some of the Funds’ foreign investments may change on days when investors cannot purchase or redeem Fund shares.
Various inputs determine how the Funds’ investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the Schedule of Investments and referred to herein as the “fair value hierarchy” in accordance with FASB ASC Topic 820 Fair Value Measurement.
Common or preferred stocks, exchange-traded funds (“ETFs”) and derivative instruments, if applicable, that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy. In the event that no sale or official closing price on a valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Investments in open-end funds (other than ETFs) are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the OTC market are generally classified as Level 2 in the fair value hierarchy. Such fixed income securities are typically valued using the market approach which generally involves obtaining data from an approved independent third-party vendor source. The Funds utilize the market approach as the primary method to value securities when market prices of identical or comparable instruments are available. The third-party vendors’ valuation techniques used to derive the evaluated bid price are based on evaluating observable inputs, including but not limited to, yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations and reported trades. Certain Level 3 securities are also valued using the market approach when obtaining a single broker quote or when utilizing
155
Notes to Financial Statements (continued)
transaction prices for identical securities that have been used in excess of five business days. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Floating rate and other loans are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Floating rate and other loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy. Floating rate and other loans valued based on a single broker quote or at the original transaction price in excess of five business days are classified as Level 3 in the fair value hierarchy.
OTC and centrally cleared derivative instruments are generally classified as Level 2 in the fair value hierarchy. Such derivative instruments are typically valued using the market approach and/or income approach which generally involves obtaining data from an approved independent third-party vendor source. The Funds utilize the market approach when quoted prices in broker-dealer markets are available but also include consideration of alternative valuation approaches, including the income approach. In the absence of reliable market quotations, the income approach is typically utilized for purposes of valuing derivatives such as interest rate swaps based on a discounted cash flow analysis whereby the value of the instrument is equal to the present value of its future cash inflows or outflows. Such analysis includes projecting future cash flows and determining the discount rate (including the present value factors that affect the discount rate) used to discount the future cash flows. In addition, the third-party vendors’ valuation techniques used to derive the evaluated derivative price is based on evaluating observable inputs, including but not limited to, underlying asset prices, indices, spreads, interest rates and exchange rates. Certain derivatives may be classified as Level 3 when valued using the market approach by obtaining a single broker quote or when utilizing unobservable inputs in the income approach. During the reporting period, there were no changes to report with respect to the valuation approach and/or valuation techniques discussed above.
Securities and other assets that cannot be priced according to the methods described above are valued based on policies and procedures approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy. Altering one or more unobservable inputs may result in a significant change to a Level 3 security’s fair value measurement.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of
156
the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; and any available analyst media or other reports or information deemed reliable by the Valuation Designee 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 unaffiliated mutual funds to calculate their net asset values.
Foreign Currency Translation: The books and records of the Funds are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities — at the exchange rate as of the valuation date;
(ii) purchases and sales of investment securities, income and expenses — at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Funds are presented at the foreign exchange rates and market values at the close of the period, the Funds do not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Funds do not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period unrealized and realized foreign currency gains (losses) are included in the reported net change in unrealized appreciation (depreciation) on investments and net realized gains (losses) on investment transactions on the Statements of Operations. Notwithstanding the above, each Fund does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.
Additionally, net realized gains (losses) on foreign currency transactions represent net foreign exchange gains (losses) from the disposition of holdings of foreign currencies, currency gains (losses) realized between the trade and settlement dates on investment transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Funds’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains (losses) arise from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates.
Forward and Cross Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Funds enter into forward currency contracts, as defined in the prospectus, in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency and to gain
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Notes to Financial Statements (continued)
exposure to certain currencies. The contracts are valued daily at current forward exchange rates and any unrealized gain (loss) is included in net unrealized appreciation or depreciation on forward and cross currency contracts. Gain (loss) is realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain (loss), if any, is included in net realized gain (loss) on forward and cross currency contract transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve risks from currency exchange rate and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities. The Funds’ maximum risk of loss from counterparty credit risk is the net value of the cash flows to be received from the counterparty at the end of the contract’s life. A cross currency contract is a forward contract where a specified amount of one foreign currency will be exchanged for a specified amount of another foreign currency.
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 Funds are 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 Funds each day, depending on the daily fluctuations in the value of the underlying security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain (loss). When the contract expires or is closed, the gain (loss) is realized and is presented in the Statement of Operations as net realized gain (loss) on futures transactions.
The Funds invested in financial futures contracts in order to hedge their existing portfolio securities, or securities the Funds intend to purchase, against fluctuations in value caused by changes in prevailing interest rates. Should interest rates move unexpectedly, the Funds 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. Since futures contracts are exchange-traded, there is minimal counterparty credit risk to the Funds since the exchanges’ clearinghouse acts as counterparty to all exchange-traded futures and guarantees the futures contracts against default.
Swap Agreements: Certain Funds entered into certain types of swap agreements detailed in the disclosures below. A swap agreement is an agreement to exchange the return generated by one instrument for the return generated by another instrument. Swap agreements are negotiated in the OTC market and may be executed either directly with a counterparty (“OTC-traded”) or through a central clearing facility, such as a registered exchange. Swap agreements are valued daily at current market value and any change in value is included in
158
the net unrealized appreciation or depreciation on swap agreements. Centrally cleared swaps pay or receive an amount known as “variation margin”, based on daily changes in the valuation of the swap contract. For OTC-traded, upfront premiums paid and received are shown as swap premiums paid and swap premiums received in the Statement of Assets and Liabilities. Risk of loss may exceed amounts recognized on the Statement of Assets and Liabilities. Swap agreements outstanding at period end, if any, are listed on the Schedule of Investments.
Credit Default Swaps (“CDS”): CDS involve one party (the protection buyer) making a stream of payments to another party (the protection seller) in exchange for the right to receive a specified payment in the event of a default or as a result of a default (collectively a “credit event”) for the referenced entity (typically corporate issues or sovereign issues of an emerging country) on its obligation; or in the event of a write-down, principal shortfall, interest shortfall or default of all or part of the referenced entities comprising a credit index.
The Funds are subject to credit risk in the normal course of pursuing their investment objectives, and as such, have entered into CDS contracts to provide a measure of protection against defaults or to take an active long or short position with respect to the likelihood of a particular issuer’s default or the reference entity’s credit soundness. CDS contracts generally trade based on a spread which represents the cost a protection buyer has to pay the protection seller. The protection buyer is said to be “short the credit” because the higher the contract value rises, the more the credit deteriorates. The value of the CDS contract increases for the protection buyer if the spread increases. A Fund’s maximum risk of loss from counterparty credit risk for purchased CDS is the inability of the counterparty to honor the contract up to the notional value due to a credit event.
As a seller of protection on credit default swap agreements, the Fund generally receives an agreed upon payment from the buyer of protection throughout the term of the swap, provided no credit event occurs. As the seller, the Fund effectively increases its investment risk because, in addition to its total net assets, the Fund may be subject to investment exposure on the notional amount of the swap.
The maximum amount of the payment that the Fund, as a seller of protection, could be required to make under a credit default swap agreement would be equal to the notional amount of the underlying security or index contract as a result of a credit event. This potential amount will be partially offset by any recovery values of the respective referenced obligations or net amounts received from the settlement of buy protection credit default swap agreements which the Fund entered into for the same referenced entity or index. As a buyer of protection, the Fund generally receives an amount up to the notional value of the swap if a credit event occurs.
Implied credit spreads, represented in absolute terms, utilized in determining the market value of credit default swap agreements where the Fund is the seller of protection as of period end are disclosed in the footnotes to the Schedule of Investments, if applicable. These spreads serve as indicators of the current status of the payment/performance risk and
159
Notes to Financial Statements (continued)
represent the likelihood of default risk for the credit derivative. The implied credit spread of a particular referenced entity reflects the cost of buying/selling protection and may include upfront payments required to enter into the agreement. Wider credit spreads and increased market value in absolute terms, when compared to the notional amount of the swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood of risk of default or other credit event occurring as defined under the terms of the agreement.
Total Return Swaps: In a total return swap, one party receives payments based on the market value of the security or the commodity involved, or total return of a specific referenced asset, such as an equity, index or bond, and in return pays a defined amount. The Funds are subject to risk exposures associated with the referenced asset in the normal course of pursuing their investment objectives. The Funds entered into total return swaps to manage their exposure to a security or an index. The Funds’ maximum risk of loss from counterparty credit risk is the change in the value of the security, in the Funds’ favor, from the point of entering into the contract.
Floating Rate and Other Loans: Certain Funds invested in floating rate and other loans. Floating rate and other loans include loans that are privately negotiated between a corporate borrower and one or more financial institutions, including, but not limited to, term loans, revolvers, and other instruments issued in the floating rate and other loans market. The Funds acquire interests in loans directly (by way of assignment from the selling institution) and/or indirectly (by way of the purchase of a participation interest from the selling institution). Under a floating rate and other loans assignment, the Funds generally will succeed to all the rights and obligations of an assigning lending institution and become a lender under the loan agreement with the relevant borrower in connection with that loan. Under a floating rate and other loans participation, the Funds generally will have a contractual relationship only with the lender, not with the relevant borrower. As a result, the Funds generally will have the right to receive payments of principal, interest, and any fees to which they are entitled only from the lender selling the participation and only upon receipt by the lender of the payments from the relevant borrower. The Funds may not directly benefit from the collateral supporting the debt obligation in which they have purchased the participation. As a result, the Funds will assume the credit risk of both the borrower and the institution selling the participation to the Funds.
Master Netting Arrangements: The RIC, on behalf of each Fund, is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadviser may have negotiated and entered into on behalf of all or a portion of each Fund. A master netting arrangement between each Fund and the counterparty permits each Fund to offset amounts payable by each Fund to the same counterparty against amounts to be received and by the receipt of collateral from the counterparty by each Fund
160
to cover each Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law.
The RIC, on behalf of each Fund, is a party to International Swaps and Derivatives Association, Inc. (“ISDA”) Master Agreements with certain counterparties that govern OTC derivative and foreign exchange contracts entered into from time to time. The Master Agreements may contain provisions regarding, among other things, the parties’ general obligations, representations, agreements, collateral requirements, events of default and early termination. With respect to certain counterparties, in accordance with the terms of the Master Agreements, collateral posted to each Fund is held in a segregated account by each Fund’s custodian and with respect to those amounts which can be sold or re-pledged, is presented in the Schedule of Investments. Collateral pledged by each Fund is segregated by each Fund’s custodian and identified in the Schedule of Investments. Collateral can be in the form of cash or debt securities issued by the U.S. Government or related agencies or other securities as agreed to by each Fund and the applicable counterparty. Collateral requirements are determined based on each Fund’s net position with each counterparty. Termination events applicable to each Fund may occur upon a decline in each Fund’s net assets below a specified threshold over a certain period of time. Termination events applicable to counterparties may occur upon a decline in the counterparty’s long-term and short-term credit ratings below a specified level. In each case, upon occurrence, the other party may elect to terminate early and cause settlement of all derivative and foreign exchange contracts outstanding, including the payment of any losses and costs resulting from such early termination, as reasonably determined by the terminating party. Any decision by one or more of each Fund’s counterparties to elect early termination could impact each Fund’s future derivative activity.
In addition to each instrument’s primary underlying risk exposure (e.g. interest rate, credit, equity or foreign exchange, etc.), swap agreements involve, to varying degrees, elements of credit, market and documentation risk. Such risks involve the possibility that no liquid market for these agreements will exist, the counterparty to the agreement may default on its obligation to perform or disagree on the contractual terms of the agreement, and changes in net interest rates will be unfavorable. In connection with these agreements, securities in the portfolio may be identified or received as collateral from the counterparty in accordance with the terms of the respective swap agreements to provide or receive assets of value and to serve as recourse in the event of default or bankruptcy/insolvency of either party. Such OTC derivative agreements include conditions which, when materialized, give the counterparty the right to cause an early termination of the transactions under those agreements. Any election by the counterparty for early termination of the contract(s) may impact the amounts reported on financial statements.
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Notes to Financial Statements (continued)
Short sales and OTC contracts, including forward foreign currency exchange contracts, swaps, forward rate agreements and written options involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities, if applicable. Such risks may be mitigated by engaging in master netting arrangements.
Warrants and Rights: The Funds held warrants and rights acquired either through a direct purchase or pursuant to corporate actions. Warrants and rights entitle the holder to buy a proportionate amount of common stock, or such other security that the issuer may specify, at a specific price and time through the expiration dates. Such warrants and rights are held as long positions by the Funds until exercised, sold or expired. Warrants and rights are valued at fair value in accordance with the Board approved fair valuation procedures.
Payment-In-Kind: Certain Funds invested in the open market or received pursuant to debt restructuring securities that pay-in-kind (“PIK”) the interest due on such debt instruments. The PIK interest, computed at the contractual rate specified, is added to the existing principal balance of the debt when issued bonds have the same terms as the bond or recorded as a separate bond when terms are different from the existing debt, and is recorded as interest income.
Securities Lending: The Funds lend their portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in an affiliated money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. In the event of significant appreciation in value of the securities on loan on the last business day of the reporting period, the financial statements may reflect a collateral value that is less than the market value of the loaned securities. Such shortfall is remedied as described above. Loans are subject to termination at the option of the borrower or the Funds. Upon termination of the loan, the borrower will return to the Funds securities identical to the loaned securities. The remaining open loans of the securities lending transactions are considered overnight and continuous. Should the borrower of the securities fail financially, the Funds have the right to repurchase the securities in the open market using the collateral.
The Funds recognize income, net of any rebate and securities lending agent fees, for lending their securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends from the securities loaned and such payments are passed back to the lender in amounts equivalent thereto, which are reflected in interest income or unaffiliated dividend income based on the nature of the payment on the Statement of Operations. The Funds also continue to recognize any unrealized gain (loss) in the market price of the securities loaned and on the change in the value of the collateral invested that may occur during the term of the loan. In addition,
162
realized gain (loss) is recognized on changes in the value of the collateral invested upon liquidation of the collateral. Net earnings from securities lending are disclosed in the Statement of Operations.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) from investment and currency transactions are calculated on the specific identification method. Dividend income is recorded on the ex-date, or for certain foreign securities, when the Funds become aware of such dividends. 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 an accrual basis, which may require the use of certain estimates by management that may differ from actual expense amounts. Net investment income or loss (other than class specific expenses and waivers, which are allocated as noted below) and unrealized and realized gains (losses) are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day. Class specific expenses and waivers, where applicable, are charged to the respective share classes. Such class specific expenses and waivers include distribution fees and distribution fee waivers, shareholder servicing fees, transfer agent’s fees and expenses, registration fees and fee waivers and/or expense reimbursements, as applicable.
Taxes: It is each 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 investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends, interest and capital gains, if any, are recorded, net of reclaimable amounts, at the time the related income is earned.
Dividends and Distributions: Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. Permanent book/tax differences relating to income and gain (loss) are reclassified between total distributable earnings (loss) and paid-in capital in excess of par, as appropriate. The chart below sets forth the expected frequency of dividend and capital gains distributions to shareholders. Various factors may impact the frequency of dividend distributions to shareholders, including but not limited to adverse market conditions or portfolio holding-specific events.
| | |
| | |
| Expected Distribution Schedule to Shareholders* | | Frequency |
| |
Net Investment Income | | Monthly |
| |
Short-Term Capital Gains | | Annually |
| |
Long-Term Capital Gains | | Annually |
| * | Under certain circumstances, each Fund may make more than one distribution of short-term and/or long-term capital gains during a fiscal year. |
Estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial
163
Notes to Financial Statements (continued)
statements. Actual results could differ from those estimates.
The RIC, on behalf of each Fund, has entered into management agreements with the Manager pursuant to which it has responsibility for all investment advisory services, including supervision of each subadviser’s performance of such services, and for rendering administrative services with respect to each Fund.
The Manager has entered into subadvisory agreements with PGIM, Inc., which provides subadvisory services to each Fund through its business unit PGIM Fixed Income and PGIM Limited (collectively the “subadviser”). The Manager pays for the services of the subadviser.
Fees payable under the management agreement are computed daily and paid monthly. For the reporting period ended August 31, 2024, the contractual and effective management fee rates were as follows:
| | | | |
| Fund | | Management Fee | | Effective Management Fee, before any waiver and/or expense reimbursements |
| | |
ESG High Yield | | 0.50% of average daily net assets up to and including $250 million; 0.475% on the next $500 million of average daily net assets; 0.45% on the next $750 million of average daily net assets; 0.425% on the next $500 million of average daily net assets; 0.40% on the next $500 million of average daily net assets; 0.375% on the next $500 million of average daily net assets; and 0.35% of average daily net assets over $3 billion. | | 0.50% |
| | |
High Yield | | 0.50% of average daily net assets up to and including $250 million; 0.475% on next $500 million of average daily net assets; 0.45% of next $750 million of average daily net assets; 0.425% on next $500 million of average daily net assets; 0.40% on next $500 million of average daily net assets; 0.375% on next $500 million of average daily net assets; 0.35% on average daily net assets over $3 billion. | | 0.36 |
164
| | | | |
| Fund | | Management Fee | | Effective Management Fee, before any waiver and/or expense reimbursements |
| | |
Short Duration High Yield Income | | 0.700% of average daily net assets up to and including $2 billion; 0.675% on next $3 billion of average daily net assets; 0.655% on average daily net assets over $5 billion. | | 0.69% |
The Manager has contractually agreed, through December 31, 2025, to limit total annual operating expenses after fee waivers and/or expense reimbursements. This contractual expense waiver excludes interest, brokerage, taxes (such as income and foreign withholding taxes, stamp duty and deferred tax expenses), acquired fund fees and expenses, extraordinary expenses, and certain other Fund expenses such as dividend and interest expense and broker charges on short sales.
Where applicable, the Manager agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class. In addition, total annual operating expenses for Class R6 shares will not exceed total annual operating expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by the Manager for the purpose of preventing the expenses from exceeding a certain expense ratio limit may be recouped by the Manager within the same fiscal year during which such waiver and/or reimbursement is made if such recoupment can be realized without exceeding the expense limit in effect at the time of the waiver/reimbursement and/or recoupment for that fiscal year, as applicable. The expense limitations attributable to each class are as follows:
| | | | | |
| Fund | | Class Expense
Limitation |
| |
ESG High Yield - Class A | | | | 0.80 | % |
| |
ESG High Yield - Class C | | | | 1.50 | |
| |
ESG High Yield - Class Z | | | | 0.54 | |
| |
ESG High Yield - Class R6 | | | | 0.41 | |
| |
High Yield - Class A | | | | — | |
| |
High Yield - Class C | | | | — | |
| |
High Yield - Class R | | | | — | |
| |
High Yield - Class Z | | | | — | |
| |
High Yield - Class R2 | | | | 0.91 | |
| |
High Yield - Class R4 | | | | 0.66 | |
| |
High Yield - Class R6 | | | | — | |
| |
Short Duration High Yield Income - Class A | | | | 1.00 | |
| |
Short Duration High Yield Income - Class C | | | | 1.75 | |
| |
Short Duration High Yield Income - Class Z | | | | 0.75 | |
| |
Short Duration High Yield Income - Class R6 | | | | 0.70 | |
The RIC, on behalf of each Fund, has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class C,
165
Notes to Financial Statements (continued)
Class R, Class Z, Class R2, Class R4 and Class R6 shares of each Fund. Each Fund compensates PIMS for distributing and servicing each Fund’s Class A, Class C, Class R and Class R2 shares, pursuant to the plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS.
Pursuant to the Distribution Plans, each Fund compensates PIMS for distribution related activities at an annual rate based on average daily net assets per class. PIMS has contractually agreed through December 31, 2025 to limit such fees on certain classes based on the average daily net assets. The distribution fees are accrued daily and payable monthly.
The High Yield Fund has adopted a Shareholder Services Plan with respect to Class R2 and Class R4 shares. Under the terms of the Shareholder Services Plan, Class R2 and Class R4 shares are authorized to compensate Prudential Mutual Fund Services LLC (“PMFS”), its affiliates or third-party service providers for services rendered to the shareholders of such Class R2 or Class R4 shares. The shareholder service fee is accrued daily and paid monthly, as applicable.
Each Fund’s annual gross and net distribution rates and maximum shareholder service fee, where applicable, are as follows:
| | | | | | | | | | | | | | | |
| Fund | | Gross Distribution Fee | | Net Distribution Fee | | Shareholder Service Fee |
| | | |
ESG High Yield - Class A | | | | 0.25 | % | | | | 0.25 | % | | | | N/A | % |
| | | |
ESG High Yield - Class C | | | | 1.00 | | | | | 1.00 | | | | | N/A | |
| | | |
ESG High Yield - Class Z | | | | N/A | | | | | N/A | | | | | N/A | |
| | | |
ESG High Yield - Class R6 | | | | N/A | | | | | N/A | | | | | N/A | |
| | | |
High Yield - Class A | | | | 0.25 | | | | | 0.25 | | | | | N/A | |
| | | |
High Yield - Class C | | | | 1.00 | | | | | 1.00 | | | | | N/A | |
| | | |
High Yield - Class R | | | | 0.75 | | | | | 0.50 | | | | | N/A | |
| | | |
High Yield - Class Z | | | | N/A | | | | | N/A | | | | | N/A | |
| | | |
High Yield - Class R2 | | | | 0.25 | | | | | 0.25 | | | | | 0.10 | |
| | | |
High Yield - Class R4 | | | | N/A | | | | | N/A | | | | | 0.10 | |
| | | |
High Yield - Class R6 | | | | N/A | | | | | N/A | | | | | N/A | |
| | | |
Short Duration High Yield Income - Class A | | | | 0.25 | | | | | 0.25 | | | | | N/A | |
| | | |
Short Duration High Yield Income - Class C | | | | 1.00 | | | | | 1.00 | | | | | N/A | |
| | | |
Short Duration High Yield Income - Class Z | | | | N/A | | | | | N/A | | | | | N/A | |
| | | |
Short Duration High Yield Income - Class R6 | | | | N/A | | | | | N/A | | | | | N/A | |
For the year ended August 31, 2024, PIMS received front-end sales charges (“FESL”) resulting from sales of certain class shares and contingent deferred sales charges (“CDSC”)
166
imposed upon redemptions by certain shareholders. From these fees, PIMS paid such sales charges to broker-dealers, who in turn paid commissions to salespersons and incurred other distribution costs. The sales charges are as follows where applicable:
| | | | | | | | |
| Fund | | FESL | | | CDSC | |
ESG High Yield - Class A | | $ | — | | | $ | — | |
ESG High Yield - Class C | | | — | | | | — | |
High Yield - Class A | | | 1,004,014 | | | | 1,869 | |
High Yield - Class C | | | — | | | | 16,325 | |
Short Duration High Yield Income - Class A | | | 291,796 | | | | 17,005 | |
Short Duration High Yield Income - Class C | | | — | | | | 10,768 | |
PGIM Investments, PGIM, Inc., PMFS, PGIM Limited and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
| 4. | Other Transactions with Affiliates |
PMFS serves as each Fund’s transfer agent and shareholder servicing agent. Transfer agent’s and shareholder servicing agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
Each Fund may invest its overnight sweep cash in the PGIM Core Government Money Market Fund (the “Core Government Fund”), a series of the Prudential Government Money Market Fund, Inc., and its securities lending cash collateral in the PGIM Institutional Money Market Fund (the “Money Market Fund”), a series of Prudential Investment Portfolios 2, each registered under the 1940 Act and managed by PGIM Investments. The High Yield Fund may also invest in the PGIM Core Short-Term Bond Fund (together with the Core Government Fund, the “Core Funds”), a series of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PGIM Investments, pursuant to an exemptive order received from the Securities and Exchange Commission (“SEC”). PGIM Investments and/or its affiliates are paid fees or reimbursed for providing their services to the Core Funds and the Money Market Fund. In addition to the realized and unrealized gains on investments in the Core Funds and the Money Market Fund, earnings from such investments are disclosed on the Statement of Operations as “Affiliated dividend income” and “Income from securities lending, net”, respectively.
Each Fund may enter into certain securities purchase or sale transactions under Board approved Rule 17a-7 procedures. Rule 17a-7 is an exemptive rule under the 1940 Act that, subject to certain conditions, permits purchase and sale transactions among affiliated investment companies, or between an investment company and a person that is affiliated solely by reason of having a common (or affiliated) investment adviser, common directors/trustees, and/or common officers. For the year ended August 31, 2024, no Rule 17a-7 transactions were entered into by each Fund.
167
Notes to Financial Statements (continued)
5. Portfolio Securities
The aggregate cost of purchases and proceeds from sales of portfolio securities (excluding short-term investments and U.S. Government securities) for the reporting period ended August 31, 2024, were as follows:
| | | | | | | | | | |
| Fund | | Cost of
Purchases | | Proceeds from
Sales |
| | |
ESG High Yield | | | | $ 9,924,135 | | | | | $ 8,803,773 | |
High Yield | | | | 7,211,226,674 | | | | | 6,942,112,927 | |
Short Duration High Yield Income | | | | 2,824,502,468 | | | | | 2,575,652,155 | |
A summary of the cost of purchases and proceeds from sales of shares of affiliated mutual funds for the year ended August 31, 2024, is presented as follows:
ESG High Yield
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Value, Beginning of Year | | Cost of
Purchases | | Proceeds
from Sales | | Change in
Unrealized
Gain (Loss) | | Realized
Gain
(Loss) | | Value, End of Year | | Shares,
End of Year | | Income |
| | | Long-Term Investments - Affiliated Exchange-Traded Funds(wa): | |
|
| | | PGIM AAA CLO ETF(1) | |
| | | $ — | | | | $ | 50,998 | | | | $ | — | | | | $ | 172 | | | | $ | — | | | | $ | 51,170 | | | | | 1,000 | | | | $ | 243 | |
|
| | | PGIM Ultra Short Bond ETF(1) | |
| | | — | | | | | 371,887 | | | | | — | | | | | 1,388 | | | | | — | | | | | 373,275 | | | | | 7,500 | | | | | 3,575 | |
| | | $ — | | | | $ | 422,885 | | | | $ | — | | | | $ | 1,560 | | | | $ | — | | | | $ | 424,445 | | | | | | | | | $ | 3,818 | |
|
| | | Short-Term Investments - Affiliated Mutual Funds: | |
|
| | | PGIM Core Government Money Market Fund (7-day effective yield 5.562%)(1)(wa) | |
| | | | | | | |
| | | 1,431,308 | | | | | 6,898,101 | | | | | 7,551,287 | | | | | — | | | | | — | | | | | 778,122 | | | | | 778,122 | | | | | 42,182 | |
|
| | | PGIM Core Short-Term Bond Fund(1)(wa) | |
| | | 343,654 | | | | | 17,083 | | | | | 360,365 | | | | | (1,098 | ) | | | | 726 | | | | | — | | | | | — | | | | | 17,555 | |
| | | $1,774,962 | | | | $ | 6,915,184 | | | | $ | 7,911,652 | | | | $ | (1,098 | ) | | | $ | 726 | | | | $ | 778,122 | | | | | | | | | $ | 59,737 | |
| | | $1,774,962 | | | | $ | 7,338,069 | | | | $ | 7,911,652 | | | | $ | 462 | | | | $ | 726 | | | | $ | 1,202,567 | | | | | | | | | $ | 63,555 | |
168
High Yield
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Value, Beginning of Year | | Cost of
Purchases | | | Proceeds
from Sales | | | Change in
Unrealized
Gain (Loss) | | | Realized
Gain
(Loss) | | | Value, End of Year | | | Shares,
End of Year | | | Income | |
|
Long-Term Investments - Affiliated Exchange-Traded Funds(wa): | |
|
PGIM AAA CLO ETF(1) | |
| | | | | | | |
| $ — | | | $ 12,235,367 | | | | $ — | | | | $ 45,433 | | | | $ — | | | | $ 12,280,800 | | | | 240,000 | | | | $ 70,181 | |
|
PGIM Ultra Short Bond ETF(1) | |
| — | | | 162,667,803 | | | | — | | | | 328,947 | | | | — | | | | 162,996,750 | | | | 3,275,000 | | | | 433,448 | |
| $ — | | | $ 174,903,170 | | | | $ — | | | | $ 374,380 | | | | $ — | | | | $175,277,550 | | | | | | | | $ 503,629 | |
|
Short-Term Investments - Affiliated Mutual Funds: | |
|
PGIM Core Government Money Market Fund (7-day effective yield 5.562%)(1)(wa) | |
| | | | | | | |
| 528,836,093 | | | 4,545,863,626 | | | | 4,893,397,474 | | | | — | | | | — | | | | 181,302,245 | | | | 181,302,245 | | | | 26,508,666 | |
|
PGIM Core Short-Term Bond Fund(1)(wa) | |
| | | | | | | |
| 321,449,022 | | | 68,229,120 | | | | 169,882,236 | | | | (784,772 | ) | | | (39,733 | ) | | | 218,971,401 | | | | 24,010,022 | | | | 23,095,705 | |
|
PGIM Institutional Money Market Fund (7-day effective yield 5.595%)(1)(b)(wa) | |
| 2,481,916,844 | | | 2,871,766,508 | | | | 5,353,706,277 | | | | (1,024,108 | ) | | | 1,047,033 | | | | — | | | | — | | | | 5,272,604 | (2) |
| $3,332,201,959 | | | $7,485,859,254 | | | | $10,416,985,987 | | | | $(1,808,880 | ) | | | $1,007,300 | | | | $400,273,646 | | | | | | | | $54,876,975 | |
| $3,332,201,959 | | | $7,660,762,424 | | | | $10,416,985,987 | | | | $(1,434,500 | ) | | | $1,007,300 | | | | $575,551,196 | | | | | | | | $55,380,604 | |
Short Duration High Yield Income
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Value, Beginning of Year | | | Cost of
Purchases | | | Proceeds
from Sales | | | Change in
Unrealized
Gain (Loss) | | | Realized
Gain
(Loss) | | | Value, End of Year | | | Shares,
End of Year | | | Income | |
|
| | Long-Term Investments - Affiliated Exchange-Traded Funds(wa): | |
|
| | PGIM AAA CLO ETF(1) | |
| | | | | | | |
| | $ — | | | $ | 12,237,894 | | | $ | — | | | $ | 42,906 | | | $ | — | | | $ | 12,280,800 | | | | 240,000 | | | $ | 42,599 | |
|
| | PGIM Ultra Short Bond ETF(1) | |
| | — | | | | 106,757,437 | | | | — | | | | 248,063 | | | | — | | | | 107,005,500 | | | | 2,150,000 | | | | 738,063 | |
169
Notes to Financial Statements (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Value, Beginning of Year | | Cost of
Purchases | | | Proceeds
from Sales | | | Change in
Unrealized
Gain (Loss) | | | Realized
Gain
(Loss) | | | Value, End of Year | | | Shares,
End of Year | | | Income | |
| $ — | | | $ 118,995,331 | | | | $ — | | | | $ 290,969 | | | | $ — | | | | $119,286,300 | | | | | | | | $ 780,662 | |
|
Short-Term Investments - Affiliated Mutual Funds: | |
|
PGIM Core Government Money Market Fund (7-day effective yield 5.562%)(1)(wa) | |
| | | | | | | |
| $117,274,100 | | | $1,696,807,598 | | | | $1,704,836,583 | | | | $ — | | | | $ — | | | | $109,245,115 | | | | 109,245,115 | | | | $ 5,678,721 | |
|
PGIM Core Short-Term Bond Fund(1)(wa) | |
| | | | | | | |
| 52,572,955 | | | 96,664,105 | | | | 112,153,940 | | | | (111,132 | ) | | | (160,667 | ) | | | 36,811,321 | | | | 4,036,329 | | | | 7,804,879 | |
|
PGIM Institutional Money Market Fund (7-day effective yield 5.595%)(1)(b)(wa) | |
| 544,705,489 | | | 692,397,921 | | | | 1,237,131,758 | | | | (245,457 | ) | | | 273,805 | | | | — | | | | — | | | | 961,035 | (2) |
| $714,552,544 | | | $2,485,869,624 | | | | $3,054,122,281 | | | | $(356,589) | | | | $113,138 | | | | $146,056,436 | | | | | | | | $14,444,635 | |
| $714,552,544 | | | $2,604,864,955 | | | | $3,054,122,281 | | | | $ (65,620) | | | | $113,138 | | | | $265,342,736 | | | | | | | | $15,225,297 | |
| (1) | The Fund did not have any capital gain distributions during the reporting period. |
| (2) | The amount, or a portion thereof, represents the affiliated securities lending income shown on the Statement of Operations. |
| (b) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan and includes dividend reinvestment. |
| (wa) | Represents investments in Funds affiliated with the Manager. |
| 6. | Distributions and Tax Information |
Distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from GAAP, are recorded on the ex-date. In order to present total distributable earnings (loss) and paid-in capital in excess of par on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to total distributable earnings (loss) and paid-in capital in excess of par for the Funds indicated below.
For the year ended August 31, 2024, the adjustments were as follows:
| | | | | | | | | | |
| Fund | | Total Distributable Earnings (Loss) | | Paid-in Capital in Excess of Par |
ESG High Yield (a) | | | $ | 1,600 | | | | $ | (1,600 | ) |
High Yield | | | | — | | | | | — | |
Short Duration High Yield Income | | | | — | | | | | — | |
| (a) | Non-deductible excise tax payment. |
170
For the year ended August 31, 2024, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
| | | | | | | | | | | |
| Fund | | Ordinary Income | | Long-Term Capital Gains | | Tax Return of Capital | | Total Dividends
and Distributions |
ESG High Yield | | $ 1,660,334 | | $— | | $— | | | | $ 1,660,334 | |
High Yield | | 1,336,721,521 | | — | | — | | | | 1,336,721,521 | |
Short Duration High Yield Income | | 319,537,562 | | — | | — | | | | 319,537,562 | |
For the year ended August 31, 2023, the tax character of dividends paid as reflected in the Statement of Changes in Net Assets were as follows:
| | | | | | | | | | | |
| Fund | | Ordinary Income | | Long-Term Capital Gains | | Tax Return of Capital | | Total Dividends
and Distributions |
ESG High Yield | | $ 1,527,056 | | $— | | $— | | | | $ 1,527,056 | |
High Yield | | 1,306,974,153 | | — | | — | | | | 1,306,974,153 | |
Short Duration High Yield Income | | 298,424,841 | | — | | — | | | | 298,424,841 | |
For the year ended August 31, 2024, the Funds indicated below had the following amounts of accumulated undistributed earnings on a tax basis:
| | | | | | | | |
| Fund | | Undistributed
Ordinary
Income | | | Undistributed
Long-Term
Capital Gains | |
ESG High Yield | | | $ 254,875 | | | | $— | |
High Yield | | | 101,288,821 | | | | — | |
Short Duration High Yield Income | | | 7,612,272 | | | | — | |
The United States federal income tax basis of the Funds’ investments and the net unrealized depreciation as of August 31, 2024 were as follows:
| | | | | | | | |
| Fund | | Tax Basis | | Gross Unrealized Appreciation | | Gross Unrealized Depreciation | | Net Unrealized Depreciation |
ESG High Yield | | $ 27,305,248 | | $ 591,174 | | $ (1,694,612) | | $ (1,103,438) |
High Yield | | 20,115,763,199 | | 587,001,845 | | (1,695,681,091) | | (1,108,679,246) |
Short Duration High Yield Income | | 5,039,752,621 | | 121,751,996 | | (268,626,513) | | (146,874,517) |
The difference between GAAP basis and tax basis is primarily attributable to deferred losses on wash sales, differences in the treatment of premium amortization for GAAP and tax purposes, mark-to-market of futures contracts, swaps, investments in passive foreign investment companies, securities in default and other GAAP to tax differences.
For federal income tax purposes, the following Funds had an approximated capital loss carryforward as of August 31, 2024 which can be carried forward for an unlimited period. No capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such losses.
| | | | | | | | |
| Fund | | Capital Loss Carryforward | | | Capital Loss Carryforward Utilized | |
ESG High Yield | | | $ 1,556,000 | | | | $— | |
171
Notes to Financial Statements (continued)
| | | | | | | | |
| Fund | | Capital Loss Carryforward | | | Capital Loss Carryforward Utilized | |
High Yield | | | $1,201,509,000 | | | | $— | |
Short Duration High Yield Income | | | 333,977,000 | | | | — | |
The Manager has analyzed the Funds’ tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Funds’ financial statements for the current reporting period. Since tax authorities can examine previously filed tax returns, the Funds’ U.S. federal and state tax returns for each of the four fiscal years up to the most recent fiscal year ended August 31, 2024 are subject to such review.
The ESG Yield Fund and Short Duration High Yield Income Fund offer Class A, Class C, Class Z and Class R6 shares. The High Yield Fund offers Class A, Class C, Class R, Class Z, Class R2, Class R4 and Class R6 shares. Class A shares are sold with a maximum front-end sales charge of 3.25% for the ESG High Yield Fund and High Yield Fund and 2.25% for the Short Duration High Yield Income Fund. Investors who purchase $500,000 or more of Class A shares and sell those shares within 12 months of purchase are subject to a CDSC of 1% on sales although these purchases are not subject to a front-end sales charge. The Class A CDSC is waived for certain retirement and/or benefit plans. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on sales made within 12 months of purchase. Class C shares will automatically convert to Class A shares on a monthly basis approximately eight years (ten years prior to January 22, 2021) after purchase. Class R, Class Z, Class R2, Class R4 and Class R6 shares are not subject to any sales or redemption charges and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of each Fund to one or more other share classes of each Fund as presented in the table of transactions in shares of beneficial interest, below.
The RIC is authorized to issue 96,525,000,000 shares of common stock, $0.01 par value per share. The authorized shares of each Fund are currently classified and designated as
172
follows:
| | | | |
| Fund | | Number of Shares | |
ESG High Yield - Class A | | | 200,000,000 | |
ESG High Yield - Class C | | | 300,000,000 | |
ESG High Yield - Class Z | | | 600,000,000 | |
ESG High Yield - Class R6 | | | 400,000,000 | |
High Yield - Class A | | | 6,000,000,000 | |
High Yield - Class B | | | 50,000,000 | |
High Yield - Class C | | | 1,000,000,000 | |
High Yield - Class R | | | 500,000,000 | |
High Yield - Class Z | | | 41,000,000,000 | |
High Yield - Class T | | | 300,000,000 | |
High Yield - Class R2 | | | 300,000,000 | |
High Yield - Class R4 | | | 300,000,000 | |
High Yield - Class R6 | | | 37,000,000,000 | |
Short Duration High Yield Income - Class A | | | 800,000,000 | |
Short Duration High Yield Income - Class C | | | 700,000,000 | |
Short Duration High Yield Income - Class Z | | | 5,500,000,000 | |
Short Duration High Yield Income - Class T | | | 75,000,000 | |
Short Duration High Yield Income - Class R6 | | | 1,500,000,000 | |
The Funds currently do not have any Class B or Class T shares outstanding.
As of August 31, 2024, Prudential, through its affiliated entities, including affiliated funds (if applicable), owned shares of each Fund as follows:
| | | | | | | | |
| Fund | | Number of Shares | | | Percentage of
Outstanding Shares | |
ESG High Yield–Class A | | | 1,175 | | | | 4.4% | |
ESG High Yield–Class C | | | 1,153 | | | | 76.9 | |
ESG High Yield–Class Z | | | 1,184 | | | | 2.0 | |
ESG High Yield–Class R6 | | | 2,861,213 | | | | 99.9 | |
High Yield–Class A | | | 11,009 | | | | 0.1 | |
High Yield–Class Z | | | 105,356 | | | | 0.1 | |
As of August 31, 2024, Prudential, through its affiliated entities, including affiliated funds (if applicable), did not own any shares of the Short Duration High Yield Income Fund.
At the reporting period end, the number of shareholders holding greater than 5% of each Fund are as follows:
| | | | | | | | |
| Fund | | Number of Shares | | | Percentage of Outstanding Shares | |
Affiliated: | | | | | | | | |
ESG High Yield | | | 1 | | | | 96.9% | |
High Yield | | | — | | | | — | |
Short Duration High Yield Income | | | — | | | | — | |
Unaffiliated: | | | | | | | | |
ESG High Yield | | | — | | | | — | |
173
Notes to Financial Statements (continued)
| | | | | | | | | | |
| Fund | | Number of Shareholders | | Percentage of Outstanding Shares |
Unaffiliated: | | | | | | | | | | |
High Yield | | | | 5 | | | | | 56.0 | % |
Short Duration High Yield Income | | | | 10 | | | | | 90.8 | |
Transactions in shares of common stock were as follows:
ESG High Yield
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class A | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 21,992 | | | $ | 189,856 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 841 | | | | 7,289 | |
| | |
Shares purchased | | | (7,015 | ) | | | (60,782 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 15,818 | | | $ | 136,363 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 8,945 | | | $ | 75,608 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 236 | | | | 1,978 | |
| | |
Shares purchased | | | (3,727 | ) | | | (31,328 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 5,454 | | | $ | 46,258 | |
| | |
Class C | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 80 | | | $ | 696 | |
| | |
Net increase (decrease) in shares outstanding | | | 80 | | | $ | 696 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 77 | | | $ | 645 | |
| | |
Net increase (decrease) in shares outstanding | | | 77 | | | $ | 645 | |
| | |
Class Z | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 23,752 | | | $ | 206,006 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 3,024 | | | | 26,185 | |
| | |
Shares purchased | | | (756 | ) | | | (6,564 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 26,020 | | | $ | 225,627 | |
174
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 31,771 | | | $ | 264,602 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 2,878 | | | | 24,066 | |
| | |
Shares purchased | | | (33,110 | ) | | | (276,406 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 1,539 | | | $ | 12,262 | |
| | |
Class R6 | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 80,439 | | | $ | 682,443 | |
| | |
Net increase (decrease) in shares outstanding | | | 80,439 | | | $ | 682,443 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 1,774 | | | $ | 14,964 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 179,122 | | | | 1,500,041 | |
| | |
Net increase (decrease) in shares outstanding | | | 180,896 | | | $ | 1,515,005 | |
High Yield
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class A | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 44,645,005 | | | $ | 208,662,413 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 19,161,687 | | | | 89,686,487 | |
| | |
Shares purchased | | | (67,231,881 | ) | | | (313,549,435 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (3,425,189 | ) | | | (15,200,535 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 5,960,806 | | | | 27,812,608 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (4,115,227 | ) | | | (19,203,412 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (1,579,610 | ) | | $ | (6,591,339 | ) |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 40,798,579 | | | $ | 187,663,921 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 19,183,979 | | | | 87,964,455 | |
| | |
Shares purchased | | | (76,642,358 | ) | | | (351,818,390 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (16,659,800 | ) | | | (76,190,014 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 5,859,109 | | | | 26,910,491 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (4,161,772 | ) | | | (19,166,922 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (14,962,463 | ) | | $ | (68,446,445 | ) |
175
Notes to Financial Statements (continued)
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class C | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 6,164,331 | | | $ | 28,738,320 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 2,557,037 | | | | 11,950,608 | |
| | |
Shares purchased | | | (8,015,214 | ) | | | (37,312,817 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 706,154 | | | | 3,376,111 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (4,202,176 | ) | | | (19,585,822 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (3,496,022 | ) | | $ | (16,209,711 | ) |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 6,534,148 | | | $ | 29,866,331 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 2,732,098 | | | | 12,517,484 | |
| | |
Shares purchased | | | (10,347,337 | ) | | | (47,420,411 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (1,081,091 | ) | | | (5,036,596 | ) |
| | |
Shares purchased upon conversion into other share class(es) | | | (3,594,674 | ) | | | (16,494,509 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (4,675,765 | ) | | $ | (21,531,105 | ) |
| | |
Class R | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 2,065,589 | | | $ | 9,624,299 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 914,908 | | | | 4,279,254 | |
| | |
Shares purchased | | | (2,884,315 | ) | | | (13,405,803 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 96,182 | | | | 497,750 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (4,021 | ) | | | (19,001 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 92,161 | | | $ | 478,749 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 1,419,609 | | | $ | 6,533,767 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 890,430 | | | | 4,080,987 | |
| | |
Shares purchased | | | (2,747,609 | ) | | | (12,603,464 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (437,570 | ) | | $ | (1,988,710 | ) |
| | |
Class Z | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 549,616,868 | | | $ | 2,572,092,739 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 123,201,651 | | | | 577,883,251 | |
| | |
Shares purchased | | | (839,803,744 | ) | | | (3,917,256,807 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (166,985,225 | ) | | | (767,280,817 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 5,144,613 | | | | 24,017,783 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (17,444,121 | ) | | | (80,040,948 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (179,284,733 | ) | | $ | (823,303,982 | ) |
176
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 660,076,349 | | | $ | 3,037,995,940 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 130,846,124 | | | | 601,477,883 | |
| | |
Shares purchased | | | (919,106,804 | ) | | | (4,227,314,616 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (128,184,331 | ) | | | (587,840,793 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 6,538,560 | | | | 30,153,572 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (14,738,064 | ) | | | (67,540,653 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (136,383,835 | ) | | $ | (625,227,874 | ) |
| | |
Class R2 | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 2,553,713 | | | $ | 11,934,208 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 360,401 | | | | 1,689,436 | |
| | |
Shares purchased | | | (2,359,195 | ) | | | (11,032,493 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 554,919 | | | $ | 2,591,151 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 1,848,346 | | | $ | 8,500,940 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 494,223 | | | | 2,267,665 | |
| | |
Shares purchased | | | (5,429,984 | ) | | | (24,893,573 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (3,087,415 | ) | | $ | (14,124,968 | ) |
| | |
Class R4 | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 2,694,046 | | | $ | 12,594,544 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 408,020 | | | | 1,911,825 | |
| | |
Shares purchased | | | (2,323,598 | ) | | | (10,870,225 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 778,468 | | | $ | 3,636,144 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 2,380,952 | | | $ | 10,932,215 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 338,988 | | | | 1,556,926 | |
| | |
Shares purchased | | | (2,714,046 | ) | | | (12,441,734 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 5,894 | | | $ | 47,407 | |
| | |
Class R6 | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 694,076,933 | | | $ | 3,243,617,986 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 112,103,690 | | | | 525,037,397 | |
| | |
Shares purchased | | | (537,689,463 | ) | | | (2,502,418,149 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 268,491,160 | | | | 1,266,237,234 | |
| | |
Shares issued upon conversion from other share class(es) | | | 15,613,441 | | | | 71,347,542 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (932,392 | ) | | | (4,328,750 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 283,172,209 | | | $ | 1,333,256,026 | |
177
Notes to Financial Statements (continued)
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 608,673,783 | | | $ | 2,797,671,446 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 100,505,725 | | | | 461,124,295 | |
| | |
Shares purchased | | | (640,402,963 | ) | | | (2,940,709,978 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 68,776,545 | | | | 318,085,763 | |
| | |
Shares issued upon conversion from other share class(es) | | | 12,009,890 | | | | 54,847,768 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (1,898,012 | ) | | | (8,709,747 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 78,888,423 | | | $ | 364,223,784 | |
Short Duration High Yield Income
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Class A | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 12,738,730 | | | $ | 105,020,636 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 2,896,961 | | | | 23,912,117 | |
| | |
Shares purchased | | | (15,529,114 | ) | | | (127,808,883 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 106,577 | | | | 1,123,870 | |
| | |
Shares issued upon conversion from other share class(es) | | | 4,534,616 | | | | 37,471,651 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (2,249,276 | ) | | | (18,711,226 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 2,391,917 | | | $ | 19,884,295 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 11,771,670 | | | $ | 95,515,311 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 2,594,093 | | | | 21,024,653 | |
| | |
Shares purchased | | | (15,513,097 | ) | | | (125,651,422 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (1,147,334 | ) | | | (9,111,458 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 3,895,018 | | | | 31,637,948 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (1,683,316 | ) | | | (13,673,864 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 1,064,368 | | | $ | 8,852,626 | |
| | |
Class C | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 3,775,563 | | | $ | 31,192,438 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 1,100,117 | | | | 9,074,592 | |
| | |
Shares purchased | | | (4,079,182 | ) | | | (33,521,552 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 796,498 | | | | 6,745,478 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (3,673,632 | ) | | | (30,354,885 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (2,877,134 | ) | | $ | (23,609,407 | ) |
178
| | | | | | | | |
| | | |
| Share Class | | Shares | | | Amount | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 4,151,803 | | | $ | 33,686,375 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 1,151,055 | | | | 9,327,237 | |
| | |
Shares purchased | | | (5,734,528 | ) | | | (46,445,149 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (431,670 | ) | | | (3,431,537 | ) |
| | |
Shares purchased upon conversion into other share class(es) | | | (3,150,424 | ) | | | (25,559,808 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (3,582,094 | ) | | $ | (28,991,345 | ) |
| | |
Class Z | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 171,602,120 | | | $ | 1,413,876,035 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 28,043,496 | | | | 231,554,988 | |
| | |
Shares purchased | | | (186,125,921 | ) | | | (1,531,640,487 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 13,519,695 | | | | 113,790,536 | |
| | |
Shares issued upon conversion from other share class(es) | | | 2,825,851 | | | | 23,454,665 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (9,170,845 | ) | | | (75,118,088 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 7,174,701 | | | $ | 62,127,113 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 253,215,379 | | | $ | 2,055,967,417 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 25,174,279 | | | | 204,123,200 | |
| | |
Shares purchased | | | (239,570,179 | ) | | | (1,941,369,542 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | 38,819,479 | | | | 318,721,075 | |
| | |
Shares issued upon conversion from other share class(es) | | | 2,494,239 | | | | 20,247,573 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (5,027,149 | ) | | | (40,456,910 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 36,286,569 | | | $ | 298,511,738 | |
| | |
Class R6 | | | | | | | | |
| | |
Year ended August 31, 2024: | | | | | | | | |
| | |
Shares sold | | | 19,759,540 | | | $ | 162,967,266 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 3,765,704 | | | | 31,104,417 | |
| | |
Shares purchased | | | (25,734,103 | ) | | | (211,837,003 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (2,208,859 | ) | | | (17,765,320 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 7,742,588 | | | | 63,423,407 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (20,162 | ) | | | (165,524 | ) |
| | |
Net increase (decrease) in shares outstanding | | | 5,513,567 | | | $ | 45,492,563 | |
| | |
Year ended August 31, 2023: | | | | | | | | |
| | |
Shares sold | | | 26,351,914 | | | $ | 213,568,965 | |
| | |
Shares issued in reinvestment of dividends and distributions | | | 4,591,118 | | | | 37,184,174 | |
| | |
Shares purchased | | | (79,759,284 | ) | | | (647,059,788 | ) |
| | |
Net increase (decrease) in shares outstanding before conversion | | | (48,816,252 | ) | | | (396,306,649 | ) |
| | |
Shares issued upon conversion from other share class(es) | | | 3,623,971 | | | | 29,048,364 | |
| | |
Shares purchased upon conversion into other share class(es) | | | (153,289 | ) | | | (1,243,303 | ) |
| | |
Net increase (decrease) in shares outstanding | | | (45,345,570 | ) | | $ | (368,501,588 | ) |
179
Notes to Financial Statements (continued)
The RIC, on behalf of each Fund, along with other affiliated registered investment companies (the “Participating Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The table below provides details of the current SCA in effect at the reporting period-end as well as the prior SCA.
| | | | | | |
| | | Current SCA | | | | Prior SCA |
Term of Commitment | | 9/29/2023 - 9/26/2024 | | | | 9/30/2022 – 9/28/2023 |
Total Commitment | | $ 1,200,000,000 | | | | $ 1,200,000,000 |
Annualized Commitment Fee on the Unused Portion of the SCA | | 0.15% | | | | 0.15% |
Annualized Interest Rate on Borrowings | | 1.00% plus the higher of (1)
the effective federal funds
rate, (2) the daily SOFR
rate plus 0.10% or (3) zero
percent | | | | 1.00% plus the higher of (1)
the effective federal funds
rate, (2) the daily SOFR
rate plus 0.10% or (3) zero
percent |
Subsequent to the reporting period end, the SCA has been renewed and effective September 27, 2024 will provide a commitment of $1,200,000,000 through September 25, 2025. The commitment fee allocated to the Participating Funds will continue to be 0.15% of the unused portion of the SCA. The interest on borrowings under the renewed SCA will be paid monthly and at a per annum interest rate of 1.00% plus the higher of (1) the effective federal funds rate, (2) the daily SOFR rate plus 0.10% or (3) zero percent.
Certain affiliated registered investment companies that are parties to the SCA include portfolios that are subject to a predetermined mathematical formula used to manage certain benefit guarantees offered under variable annuity contracts. The formula may result in large scale asset flows into and out of these portfolios. Consequently, these portfolios may be more likely to utilize the SCA for purposes of funding redemptions. It may be possible for those portfolios to fully exhaust the committed amount of the SCA, thereby requiring the Manager to allocate available funding per a Board-approved methodology designed to treat the Participating Funds in the SCA equitably.
The Funds did not utilize the SCA during the year ended August 31, 2024.
180
| 9. | Risks of Investing in the Funds |
Each Fund’s principal risks include, but are not limited to, some or all of the risks discussed below. For further information on the risks applicable to any given Fund, please refer to the Prospectus and Statement of Additional Information of that Fund.
| | | | | | |
| | | | |
| Risks | | ESG
High Yield | | High Yield | | Short
Duration High
Yield Income |
Covenant-Lite | | X | | X | | – |
Credit | | X | | X | | X |
Debt Obligations | | X | | X | | X |
Derivatives | | X | | X | | X |
Economic and Market Events | | X | | X | | X |
Emerging Markets | | X | | X | | X |
ESG Methodology | | X | | – | | – |
Foreign Securities | | X | | X | | X |
Increase in Expenses | | X | | X | | X |
Interest Rate | | X | | X | | X |
Junk Bonds | | X | | X | | X |
Large Shareholder and Large Scale Redemption | | X | | X | | X |
Liquidity | | X | | X | | X |
Management | | X | | X | | X |
Market Disruption and Geopolitical | | X | | X | | X |
Market | | X | | X | | X |
New Fund | | X | | – | | – |
Covenant-Lite Risk: Some of the loans or debt obligations in which the Fund may invest or get exposure to may be “covenant-lite”, which means the loans or obligations contain fewer financial maintenance covenants than other loans or obligations (in some cases, none) and do not include terms which allow the lender to monitor the borrower’s performance and declare a default if certain criteria are breached. An investment by the Fund in a covenant-lite loan may potentially hinder the ability to reprice credit risk associated with the issuer and reduce the ability to restructure a problematic loan and mitigate potential loss. The Fund may also experience difficulty, expenses or delays in enforcing its rights on its holdings of covenant-lite loans or obligations. As a result of these risks, the Fund’s exposure to losses may be increased, which could result in an adverse impact on the Fund’s net income and NAV.
Credit Risk: This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract, may be unable or unwilling to make timely principal and interest payments, or to otherwise honor its obligations. Additionally, fixed income securities could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back debt. The lower the credit quality of a bond, the more sensitive it is to credit risk.
Debt Obligations Risk: Debt obligations are fixed income investments that are subject to credit risk, market risk and interest rate risk. The Fund’s holdings, share price, yield and
181
Notes to Financial Statements (continued)
total return may also fluctuate in response to bond market movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Fund for redemption before it matures and the Fund may not be able to reinvest at the same rate of interest and therefore would earn less income.
Derivatives Risk: Derivatives involve special risks and costs and may result in losses to the Fund. The successful use of derivatives requires sophisticated management, and, to the extent that derivatives are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” or may create economic leverage for the Fund and therefore may magnify or otherwise increase investment losses to the Fund. The Fund’s use of derivatives may also increase the amount of taxes payable by shareholders.
Other risks arise from the potential inability to terminate or sell derivatives positions. A liquid secondary market may not always exist for the Fund’s derivatives positions. In fact, many over-the-counter derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments also involve the risk that the other party will not meet its obligations to the Fund. The use of derivatives also exposes the Fund to operational issues, such as documentation and settlement issues, systems failures, inadequate control and human error.
Derivatives may also involve legal risks, such as insufficient documentation, the lack of capacity or authority of a counterparty to execute or settle a transaction, and the legality and enforceability of derivatives contracts. The U.S. Government and foreign governments have adopted (and may adopt further) regulations governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements and risk exposure limitations. Regulation of derivatives may make derivatives more costly, limit their availability or utility to the Fund, or otherwise adversely affect their performance or disrupt markets.
Economic and Market Events Risk: Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, or otherwise reduce inflation, may at times result in unusually high market volatility, which could negatively impact performance. Governmental efforts to curb inflation often have negative effects on the level of economic activity. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers worldwide.
182
Emerging Markets Risk: The risks of foreign investments are greater for investments in or exposed to emerging markets. Emerging market countries typically have economic and political systems that are less fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
ESG Methodology Risk: Because the subadviser utilizes screens and other exclusionary tools in its ESG methodology, this may result in the Fund forgoing opportunities to make certain investments when it might otherwise be advantageous to do so, or sell investments based on its ESG methodology criteria when it might be otherwise disadvantageous for it to do so. In evaluating an issuer, the subadviser is dependent upon information and data, including from third party data providers, that may be incomplete, inaccurate, or unavailable, or that may present conflicting information and data with respect to an issuer, which in each case could cause the subadviser to incorrectly assess an issuer’s business practices with respect to ESG. Issuers that are a assigned a higher ESG Impact Rating by the subadviser may underperform similar issuers that have a lower ESG Impact Rating and/or may underperform the market as a whole. As a result, the Fund may underperform funds that do not screen or score companies based on ESG factors or funds that use a different ESG methodology. ESG Impact Ratings are inherently subjective and the subadviser’s assessment of an issuer, based on the issuer’s level of involvement in a particular industry or the issuer’s ESG Impact Ratings may differ from that of other funds or an investor. As a result, the Fund may invest in issuers that do not reflect the beliefs or values of any particular investor and may not be deemed to exhibit positive or favorable ESG characteristics if different metrics were used to evaluate them.
Foreign Securities Risk: Investments in securities of non-U.S. issuers (including those denominated in U.S. dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political, economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes in exchange rates could also affect the value of the assets the Fund holds and the Fund’s performance. Certain foreign countries may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors located
183
Notes to Financial Statements (continued)
outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in emerging markets are subject to greater volatility and price declines.
In addition, the Fund’s investments in non-U.S. securities may be subject to the risks of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may apply.
Increase in Expenses Risk: Your actual cost of investing in the Fund may be higher than the expenses shown in the expense table in the Fund’s prospectus for a variety of reasons. For example, expense ratios may be higher than those shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Interest Rate Risk: The value of your investment may go down when interest rates rise. A rise in rates tends to have a greater impact on the prices of longer term or duration debt securities. Similarly, a rise in interest rates may also have a greater negative impact on the value of equity securities whose issuers expect earnings further out in the future. For example, a fixed income security with a duration of three years is expected to decrease in value by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred to as “prepayment risk.” For premium bonds (bonds acquired at prices that exceed their par or principal value) purchased by the Fund, prepayment risk may be elevated. When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the Fund’s holdings may fall sharply. This is referred to as “extension risk.” The Fund may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated by the subadviser.
Junk Bonds Risks: High-yield, high-risk bonds have predominantly speculative characteristics, including particularly high credit risk. Junk bonds tend to have lower market liquidity than higher-rated securities. The liquidity of particular issuers or industries within a particular investment category may shrink or disappear suddenly and without warning. The non-investment grade bond market can experience sudden and sharp price swings and become illiquid due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained sales by major investors, a high profile default or a change in the market’s psychology.
Large Shareholder and Large Scale Redemption Risk: Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its
184
affiliates, may from time to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger portion of its assets in cash or cash equivalents.
Liquidity Risk: Liquidity risk is the risk that the Fund could not meet requests to redeem shares issued by the Fund without significant dilution of remaining investors’ interests in the Fund. The Fund may invest in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect the Fund’s value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk: Actively managed funds are subject to management risk. The subadviser will apply investment techniques and risk analyses in making investment decisions for the Fund, but the subadviser’s judgments about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements may be incorrect. Additionally, the investments selected for the Fund may underperform the markets in general, the Fund’s benchmark and other funds with similar investment objectives.
Market Disruption and Geopolitical Risks: Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine and the Israel-Hamas war), geopolitical developments (including trading and tariff arrangements, sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East, terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures
185
Notes to Financial Statements (continued)
of certain markets and restrictions on trading certain securities, the value of certain securities held by the Fund could be significantly impacted, which could lead to such securities being valued at zero.
Market Risk: Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment in the Fund will decline.
New Fund Risk: The Fund recently commenced operations. As a new and relatively small fund, the Fund’s performance may not represent how the Fund is expected to or may perform in the long term if it becomes larger and after it has fully implemented its investment strategies. Investment positions may have a disproportionate impact (negative or positive) on performance in new and smaller funds. New and smaller funds may also require a period of time before they are invested in securities that meet their investment objectives and policies and achieve a representative portfolio composition. Accordingly, investors in the Fund bear the risk that the Fund may not be successful in implementing its investment strategy, and may not employ a successful investment strategy, either of which could result in the Fund being liquidated at any time without shareholder approval and/or at a time that may not be favorable for all shareholders. Such a liquidation could result in transaction costs and have negative tax consequences for shareholders.
186
Report of Independent Registered Public Accounting Firm
To the Board of Directors of Prudential Investment Portfolios, Inc. 15 and Shareholders of PGIM ESG High Yield Fund, PGIM High Yield Fund and PGIM Short Duration High Yield Income Fund
Opinions on the Financial Statements
We have audited the accompanying statements of assets and liabilities, including the schedules of investments, of PGIM ESG High Yield Fund, PGIM High Yield Fund and PGIM Short Duration High Yield Income Fund (constituting Prudential Investment Portfolios, Inc. 15, hereafter collectively referred to as the “Funds”) as of August 31, 2024, the related statements of operations for the year ended August 31, 2024, the statements of changes in net assets for each of the two years in the period ended August 31, 2024, including the related notes, and the financial highlights for each of the periods indicated therein in the period ended August 31, 2024 (collectively referred to as the “financial statements”). In our opinion, the financial statements present fairly, in all material respects, the financial position of the Funds as of August 31, 2024, the results each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period ended August 31, 2024 and each of the financial highlights for each of the periods indicated therein in the period ended August 31, 2024 in conformity with accounting principles generally accepted in the United States of America.
The financial statements of the PGIM High Yield Fund and PGIM Short Duration High Yield Income Fund as of and for the year ended August 31, 2020 and the financial highlights for each of the periods ended on or prior to August 31, 2020 (not presented herein, other than the financial highlights) were audited by other auditors whose report dated October 15, 2020 expressed an unqualified opinion on those financial statements and financial highlights.
Basis for Opinions
These financial statements are the responsibility of the Funds’ management. Our responsibility is to express an opinion on the Funds’ financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Funds in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits of these financial statements in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. Our procedures included confirmation of securities owned as of August 31, 2024 by correspondence with the custodian, transfer agent, brokers and agent banks; when replies were not received from brokers or agent banks, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinions.
/s/PricewaterhouseCoopers LLP
New York, New York
October 22, 2024
We have served as the auditor of one or more investment companies in the PGIM Retail Funds complex since 2020.
187
Other Information
Form N-CSR Item 8 - Changes in and Disagreements with Accountants for Open-End Management Investment Companies - None.
Form N-CSR Item 9 - Proxy Disclosures for Open-End Management Investment Companies-None.
Form N-CSR Item 10 - Remuneration Paid to Directors, Officers, and Others of Open-End Management Investment Companies – Included as part of the financial statements filed under Item 7 of this Form.
Form N-CSR Item 11 - Statement Regarding Basis for Approval of Investment Advisory Contract.
Approval of Advisory Agreements
The Fund’s Board of Directors
The Board of Directors (the “Board”) of PGIM ESG High Yield Fund1 (the “Fund”) consists of ten individuals, eight of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Directors”). The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Director. The Board has established five standing committees: the Audit Committee, the Nominating and Governance Committee, the Compliance Committee and two Investment Committees. Each committee is chaired by, and composed of, Independent Directors.
Annual Approval of the Fund’s Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with PGIM Investments LLC (“PGIM Investments”) and the Fund’s subadvisory agreement with PGIM Limited (“PGIML”) and PGIM, Inc. (“PGIM”) on behalf of its PGIM Fixed Income unit (“PGIM Fixed Income”). In considering the renewal of the agreements, the Board, including all of the Independent Directors, met on May 28 and June 4-6, 2024 (the “Board Meeting”) and approved the renewal of the agreements through July 31, 2025, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PGIM Investments, PGIML and PGIM Fixed Income. Also, the Board considered comparisons with other mutual funds in relevant peer universes and peer groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PGIM Investments and the subadvisers, the performance of the Fund, the profitability of PGIM Investments and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders as the Fund’s assets grow. In their deliberations, the Directors did not identify any single factor which alone was responsible for the Board’s decision to approve an
| 1 | PGIM ESG High Yield Fund is a series of Prudential Investment Portfolios, Inc. 15. |
PGIM ESG High Yield Fund
Approval of Advisory Agreements (continued)
agreement with respect to the Fund. In connection with its deliberations, the Board considered information provided by PGIM Investments throughout the year at regular and special Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the Board Meeting.
The Directors determined that the overall arrangements between the Fund and PGIM Investments, which serves as the Fund’s investment manager pursuant to a management agreement, and between PGIM Investments, PGIML and PGIM Fixed Income, which serve as the Fund’s subadvisers pursuant to the terms of a subadvisory agreement with PGIM Investments, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment. The Board considered the approval of the agreements for the Fund as part of its consideration of agreements for multiple funds, but its approvals were made on a fund-by-fund basis.
The material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PGIM Investments, PGIML and PGIM Fixed Income. The Board noted that PGIML and PGIM Fixed Income are affiliated with PGIM Investments. The Board considered the services provided by PGIM Investments, including but not limited to the oversight of the subadvisers for the Fund, as well as the provision of accounting oversight, fund recordkeeping, compliance and other services to the Fund, such as PGIM Investments’ role as administrator for the Fund’s liquidity risk management program and as valuation designee. With respect to PGIM Investments’ oversight of the subadvisers, the Board noted that PGIM Investments’ Strategic Investment Research Group (“SIRG”), which is a business unit of PGIM Investments, is responsible for monitoring and reporting to PGIM Investments’ senior management on the performance and operations of the subadvisers. The Board also considered that PGIM Investments pays the salaries of all of the officers and interested Directors of the Fund who are part of Fund management. The Board also considered the investment subadvisory services provided by PGIML and PGIM Fixed Income, including investment research and security selection, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PGIM Investments’ evaluation of the subadvisers, as well as PGIM Investments’ recommendation, based on its review of the subadvisers, to renew the subadvisory agreement.
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The Board considered the qualifications, backgrounds and responsibilities of PGIM Investments’ senior management responsible for the oversight of the Fund, PGIML and PGIM Fixed Income, and also considered the qualifications, backgrounds and responsibilities of the PGIML and PGIM Fixed Income portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PGIML’s, PGIM Investments’ and PGIM Fixed Income’s organizational structure, senior management, investment operations, and other relevant information pertaining to PGIM Investments, PGIML and PGIM Fixed Income. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to each of PGIM Investments, PGIML and PGIM Fixed Income.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PGIM Investments and the subadvisory services provided to the Fund by PGIML and PGIM Fixed Income, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PGIM Investments, PGIML and PGIM Fixed Income under the management and subadvisory agreement.
Costs of Services and Profits Realized by PGIM Investments
The Board was provided with information on the profitability of PGIM Investments and its affiliates in serving as the Fund’s investment manager. The Board discussed with PGIM Investments the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations of direct and indirect costs, and the adviser’s capital structure and cost of capital. However, the Board considered that the cost of services provided by PGIM Investments for the year ended December 31, 2023 exceeded the management fees received by PGIM Investments, resulting in an operating loss to PGIM Investments. Taking these factors into account, the Board concluded that the profitability of PGIM Investments and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
The Board received and discussed information concerning economies of scale that PGIM Investments may realize as the Fund’s assets grow beyond current levels. The Board noted that the management fee schedule for the Fund includes breakpoints, which have the
PGIM ESG High Yield Fund
Approval of Advisory Agreements (continued)
effect of decreasing the fee rate as assets increase. During the course of time, the Board has considered information regarding the launch date of the Fund, the management fees of the Fund compared to those of similarly managed funds and PGIM Investments’ investment in the Fund over time. The Board noted that economies of scale can be shared with the Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also considered PGIM Investments’ assertion that it continually evaluates the management fee schedule of the Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PGIM Investments’ costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Other Benefits to PGIM Investments, PGIML and PGIM Fixed Income
The Board considered potential ancillary benefits that might be received by PGIM Investments, PGIML, PGIM Fixed Income and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PGIM Investments included transfer agency fees received by the Fund’s transfer agent (which is affiliated with PGIM Investments), as well as benefits to its reputation or other intangible benefits resulting from PGIM Investments association with the Fund. The Board concluded that the potential benefits to be derived by PGIML and PGIM Fixed Income included the ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to its reputation. The Board concluded that the benefits derived by PGIM Investments, PGIML and PGIM Fixed Income were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Fund / Fees and Expenses
The Board considered certain additional factors and made related conclusions relating to the historical performance of the Fund for the one-year period ended December 31, 2023. The Board considered that the Fund commenced operations in 2021 and that longer-term performance was not available.
The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended August 31, 2023. The Board considered the
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management fee for the Fund as compared to the management fee charged by PGIM Investments to other funds and the fee charged by other advisers to comparable mutual funds in a peer group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.
The mutual funds included in the peer universe, which was used to consider performance, and the peer group, which was used to consider fees and expenses, were objectively determined by Broadridge, an independent provider of mutual fund data. In certain circumstances, PGIM Investments also provided supplemental peer universe or peer group information, for reasons addressed with the Board. The comparisons placed the Fund in various quartiles over various periods, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth net performance comparisons (which reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the peer universe, actual management fees with the peer group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the peer group, each of which were key factors considered by the Board.
| | | | | | | | |
| Net Performance | | 1 Year | | 3 Years | | 5 Years | | 10 Years |
| | 1st Quartile | | N/A | | N/A | | N/A |
| Actual Management Fees: 1st Quartile |
| Net Total Expenses: 1st Quartile |
| ● | The Board noted that the Fund underperformed its benchmark index over the one-year period. |
| ● | The Board considered that the Fund commenced operations on December 8, 2021 and that longer-term performance was not available. |
| ● | The Board and PGIM Investments agreed to retain the Fund’s existing contractual expense cap, which (exclusive of certain fees and expenses) caps the Fund’s annual operating expenses at 0.80% for Class A shares, 1.50% for Class C shares, 0.54% for Class Z shares, and 0.41% for Class R6 shares through December 31, 2024. |
| ● | In addition, PGIM Investments will waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class, and has agreed that total annual fund operating expenses for Class R6 shares will not exceed total annual fund operating expenses for Class Z shares. |
PGIM ESG High Yield Fund
Approval of Advisory Agreements (continued)
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to allow the Fund to develop a longer performance record and to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that approval of the agreements was in the best interests of the Fund and its shareholders.
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Approval of Advisory Agreements
The Fund’s Board of Directors
The Board of Directors (the “Board”) of PGIM High Yield Fund1 (the “Fund”) consists of ten individuals, eight of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Directors”). The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Director. The Board has established five standing committees: the Audit Committee, the Nominating and Governance Committee, the Compliance Committee and two Investment Committees. Each committee is chaired by, and composed of, Independent Directors.
Annual Approval of the Fund’s Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with PGIM Investments LLC (“PGIM Investments”) and the Fund’s subadvisory agreement with PGIM Limited (“PGIML”) and PGIM, Inc. (“PGIM”) on behalf of its PGIM Fixed Income unit (“PGIM Fixed Income”). In considering the renewal of the agreements, the Board, including all of the Independent Directors, met on May 28 and June 4-6, 2024 (the “Board Meeting”) and approved the renewal of the agreements through July 31, 2025, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PGIM Investments, PGIML and PGIM Fixed Income. Also, the Board considered comparisons with other mutual funds in relevant peer universes and peer groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PGIM Investments and the subadvisers, the performance of the Fund, the profitability of PGIM Investments and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders as the Fund’s assets grow. In their deliberations, the Directors did not identify any single factor which alone was responsible for the Board’s decision to approve an
| 1 | PGIM High Yield Fund is a series of Prudential Investment Portfolios, Inc. 15. |
PGIM High Yield Fund
Approval of Advisory Agreements (continued)
agreement with respect to the Fund. In connection with its deliberations, the Board considered information provided by PGIM Investments throughout the year at regular and special Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the Board Meeting.
The Directors determined that the overall arrangements between the Fund and PGIM Investments, which serves as the Fund’s investment manager pursuant to a management agreement, and between PGIM Investments, PGIML and PGIM Fixed Income, which serve as the Fund’s subadvisers pursuant to the terms of a subadvisory agreement with PGIM Investments, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment. The Board considered the approval of the agreements for the Fund as part of its consideration of agreements for multiple funds, but its approvals were made on a fund-by-fund basis.
The material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PGIM Investments, PGIML and PGIM Fixed Income. The Board noted that PGIML and PGIM Fixed Income are affiliated with PGIM Investments. The Board considered the services provided by PGIM Investments, including but not limited to the oversight of the subadvisers for the Fund, as well as the provision of accounting oversight, fund recordkeeping, compliance and other services to the Fund, such as PGIM Investments’ role as administrator for the Fund’s liquidity risk management program and as valuation designee. With respect to PGIM Investments’ oversight of the subadvisers, the Board noted that PGIM Investments’ Strategic Investment Research Group (“SIRG”), which is a business unit of PGIM Investments, is responsible for monitoring and reporting to PGIM Investments’ senior management on the performance and operations of the subadvisers. The Board also considered that PGIM Investments pays the salaries of all of the officers and interested Directors of the Fund who are part of Fund management. The Board also considered the investment subadvisory services provided by PGIML and PGIM Fixed Income, including investment research and security selection, as well as adherence to the Fund’s investment restrictions and compliance with applicable Fund policies and procedures. The Board considered PGIM Investments’ evaluation of the subadvisers, as well as PGIM Investments’ recommendation, based on its review of the subadvisers, to renew the subadvisory agreement.
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The Board considered the qualifications, backgrounds and responsibilities of PGIM Investments’ senior management responsible for the oversight of the Fund, PGIML and PGIM Fixed Income, and also considered the qualifications, backgrounds and responsibilities of the PGIML and PGIM Fixed Income portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PGIML’s, PGIM Investments’ and PGIM Fixed Income’s organizational structure, senior management, investment operations, and other relevant information pertaining to PGIM Investments, PGIML and PGIM Fixed Income. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to each of PGIM Investments, PGIML and PGIM Fixed Income.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PGIM Investments and the subadvisory services provided to the Fund by PGIML and PGIM Fixed Income, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PGIM Investments, PGIML and PGIM Fixed Income under the management and subadvisory agreement.
Costs of Services and Profits Realized by PGIM Investments
The Board was provided with information on the profitability of PGIM Investments and its affiliates in serving as the Fund’s investment manager. The Board discussed with PGIM Investments the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations of direct and indirect costs, and the adviser’s capital structure and cost of capital. Taking these factors into account, the Board concluded that the profitability of PGIM Investments and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
The Board received and discussed information concerning economies of scale that PGIM Investments may realize as the Fund’s assets grow beyond current levels. The Board noted that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as assets increase. During the course of time, the Board has considered information regarding the launch date of the Fund, the management fees of the Fund compared to those of similarly managed funds and PGIM Investments’
PGIM High Yield Fund
Approval of Advisory Agreements (continued)
investment in the Fund over time. The Board noted that economies of scale can be shared with the Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also considered PGIM Investments’ assertion that it continually evaluates the management fee schedule of the Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PGIM Investments’ costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Other Benefits to PGIM Investments, PGIML and PGIM Fixed Income
The Board considered potential ancillary benefits that might be received by PGIM Investments, PGIML, PGIM Fixed Income and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PGIM Investments included transfer agency fees received by the Fund’s transfer agent (which is affiliated with PGIM Investments), as well as benefits to its reputation or other intangible benefits resulting from PGIM Investments association with the Fund. The Board concluded that the potential benefits to be derived by PGIML and PGIM Fixed Income included the ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to its reputation. The Board concluded that the benefits derived by PGIM Investments, PGIML and PGIM Fixed Income were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Fund / Fees and Expenses
The Board considered certain additional factors and made related conclusions relating to the historical performance of the Fund for the one-, three-, five- and ten-year periods ended December 31, 2023.
The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended August 31, 2023. The Board considered the management fee for the Fund as compared to the management fee charged by PGIM Investments to other funds and the fee charged by other advisers to comparable mutual funds in a peer group. The actual management fee represents the fee rate actually paid by
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Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.
The mutual funds included in the peer universe, which was used to consider performance, and the peer group, which was used to consider fees and expenses, were objectively determined by Broadridge, an independent provider of mutual fund data. In certain circumstances, PGIM Investments also provided supplemental peer universe or peer group information, for reasons addressed with the Board. The comparisons placed the Fund in various quartiles over various periods, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth net performance comparisons (which reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the peer universe, actual management fees with the peer group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the peer group, each of which were key factors considered by the Board.
| | | | | | | | |
| Net Performance | | 1 Year | | 3 Years | | 5 Years | | 10 Years |
| | 2nd Quartile | | 2nd Quartile | | 2nd Quartile | | 1st Quartile |
| Actual Management Fees: 1st Quartile |
| Net Total Expenses: 1st Quartile |
| ● | The Board noted that the Fund outperformed its benchmark index over the ten-year period, equaled its benchmark index over the five-year period, and underperformed its benchmark index over the other periods. |
| ● | The Board also noted that the Fund outperformed its benchmark index in six out of the last ten calendar years gross of fees. |
| ● | The Board and PGIM Investments agreed to retain the Fund’s existing contractual expense cap, which (exclusive of certain fees and expenses) limits transfer agency, shareholder servicing, sub-transfer agency and blue sky fees to the extent that such fees cause total annual operating expenses to exceed 0.91% for Class R2 shares and 0.66% for Class R4 shares through December 31, 2024. |
| ● | In addition, PGIM Investments will waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class and has agreed that total annual fund operating expenses for Class R6 shares will not exceed total annual fund operating expenses for Class Z shares. |
PGIM High Yield Fund
Approval of Advisory Agreements (continued)
| ● | The Board concluded that, in light of the above, it would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that approval of the agreements was in the best interests of the Fund and its shareholders.
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Approval of Advisory Agreements
The Fund’s Board of Directors
The Board of Directors (the “Board”) of PGIM Short Duration High Yield Income Fund1 (the “Fund”) consists of ten individuals, eight of whom are not “interested persons” of the Fund, as defined in the Investment Company Act of 1940, as amended (the “1940 Act”) (the “Independent Directors”). The Board is responsible for the oversight of the Fund and its operations, and performs the various duties imposed on the directors of investment companies by the 1940 Act. The Independent Directors have retained independent legal counsel to assist them in connection with their duties. The Chair of the Board is an Independent Director. The Board has established five standing committees: the Audit Committee, the Nominating and Governance Committee, the Compliance Committee and two Investment Committees. Each committee is chaired by, and composed of, Independent Directors.
Annual Approval of the Fund’s Advisory Agreements
As required under the 1940 Act, the Board determines annually whether to renew the Fund’s management agreement with PGIM Investments LLC (“PGIM Investments”), the Fund’s subadvisory agreement with PGIM, Inc. (“PGIM”), on behalf of its PGIM Fixed Income unit (“PGIM Fixed Income”), and the Fund’s sub-subadvisory agreement with PGIM Limited (“PGIML”). In considering the renewal of the agreements, the Board, including all of the Independent Directors, met on May 28 and June 4-6, 2024 (the “Board Meeting”) and approved the renewal of the agreements through July 31, 2025, after concluding that the renewal of the agreements was in the best interests of the Fund and its shareholders.
In advance of the meetings, the Board requested and received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with its consideration. Among other things, the Board considered comparative fee information from PGIM Investments, PGIML, PGIM, and, where appropriate, affiliates of PGIM. Also, the Board considered comparisons with other mutual funds in relevant peer universes and peer groups, as is further discussed below.
In approving the agreements, the Board, including the Independent Directors advised by independent legal counsel, considered the factors it deemed relevant, including the nature, quality and extent of services provided by PGIM Investments, the subadviser and, as relevant, its affiliates, the performance of the Fund, the profitability of PGIM Investments and its affiliates, expenses and fees, and the potential for economies of scale that may be
| 1 | PGIM Short Duration High Yield Income Fund is a series of Prudential Investment Portfolios, Inc. 15. |
PGIM Short Duration High Yield Income Fund
Approval of Advisory Agreements (continued)
shared with the Fund and its shareholders as the Fund’s assets grow. In their deliberations, the Directors did not identify any single factor which alone was responsible for the Board’s decision to approve an agreement with respect to the Fund. In connection with its deliberations, the Board considered information provided by PGIM Investments throughout the year at regular and special Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the Board Meeting.
The Directors determined that the overall arrangements between the Fund and PGIM Investments, which serves as the Fund’s investment manager pursuant to a management agreement, between PGIM Investments and PGIM, which, through its PGIM Fixed Income unit, serves as the Fund’s subadviser pursuant to the terms of a subadvisory agreement with PGIM Investments, and between PGIM and PGIML, which serves as the Fund’s sub-subadviser pursuant to the terms of a sub-subadvisory agreement with PGIM, are in the best interests of the Fund and its shareholders in light of the services performed, fees charged and such other matters as the Directors considered relevant in the exercise of their business judgment. The Board considered the approval of the agreements for the Fund as part of its consideration of agreements for multiple funds, but its approvals were made on a fund-by-fund basis.
The material factors and conclusions that formed the basis for the Directors’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, Quality and Extent of Services
The Board received and considered information regarding the nature, quality and extent of services provided to the Fund by PGIM Investments, PGIM Fixed Income, and PGIML. The Board noted that PGIM Fixed Income and PGIML are affiliated with PGIM Investments. The Board considered the services provided by PGIM Investments, including but not limited to the oversight of the subadviser and sub-subadviser for the Fund, as well as the provision of accounting oversight, fund recordkeeping, compliance and other services to the Fund, such as PGIM Investments’ role as administrator of the Fund’s liquidity risk management program and as valuation designee. With respect to PGIM Investments’ oversight of the subadviser and sub-subadviser, the Board noted that PGIM Investments’ Strategic Investment Research Group (“SIRG”), which is a business unit of PGIM Investments, is responsible for monitoring and reporting to PGIM Investments’ senior management on the performance and operations of the subadviser and sub-subadviser. The Board also considered that PGIM Investments pays the salaries of all of the officers and interested Directors of the Fund who are part of Fund management. The Board also considered the investment subadvisory services provided by PGIM Fixed Income and PGIML, including investment research and security selection, as well as adherence to the Fund’s investment
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restrictions and compliance with applicable Fund policies and procedures. The Board considered PGIM Investments’ evaluation of the subadviser and sub-subadviser, as well as PGIM Investments’ recommendation, based on its review of the subadviser and sub-subadviser, to renew the subadvisory and sub-subadvisory agreements.
The Board considered the qualifications, backgrounds and responsibilities of PGIM Investments’ senior management responsible for the oversight of the Fund, PGIM Fixed Income, and PGIML, and also considered the qualifications, backgrounds and responsibilities of PGIM Fixed Income’s portfolio managers who are responsible for the day-to-day management of the Fund’s portfolio. The Board was provided with information pertaining to PGIM Investments’, PGIM Fixed Income’s, and PGIML’s organizational structure, senior management, investment operations, and other relevant information pertaining to PGIM Investments, PGIM Fixed Income, and PGIML. The Board also noted that it received favorable compliance reports from the Fund’s Chief Compliance Officer (“CCO”) as to PGIM Investments, PGIM Fixed Income, and PGIML.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PGIM Investments, the subadvisory services provided to the Fund by PGIM Fixed Income, and the sub-subadvisory services provided by PGIML, and that there was a reasonable basis on which to conclude that the Fund benefits from the services provided by PGIM Investments, PGIM Fixed Income, and PGIML under the management, subadvisory and sub-subadvisory agreements.
Costs of Services and Profits Realized by PGIM Investments
The Board was provided with information on the profitability of PGIM Investments and its affiliates in serving as the Fund’s investment manager. The Board discussed with PGIM Investments the methodology utilized in assembling the information regarding profitability and considered its reasonableness. The Board recognized that it is difficult to make comparisons of profitability from fund management contracts because comparative information is not generally publicly available and is affected by numerous factors, including the structure of the particular adviser, the types of funds it manages, its business mix, numerous assumptions regarding allocations of direct and indirect costs, and the adviser’s capital structure and cost of capital. Taking these factors into account, the Board concluded that the profitability of PGIM Investments and its affiliates in relation to the services rendered was not unreasonable.
Economies of Scale
The Board received and discussed information concerning economies of scale that PGIM Investments may realize as the Fund’s assets grow beyond current levels. The Board noted
PGIM Short Duration High Yield Income Fund
Approval of Advisory Agreements (continued)
that the management fee schedule for the Fund includes breakpoints, which have the effect of decreasing the fee rate as assets increase. During the course of time, the Board has considered information regarding the launch date of the Fund, the management fees of the Fund compared to those of similarly managed funds and PGIM Investments’ investment in the Fund over time. The Board noted that economies of scale can be shared with the Fund in other ways, including low management fees from inception, additional technological and personnel investments to enhance shareholder services, and maintaining existing expense structures in the face of a rising cost environment. The Board also considered PGIM Investments’ assertion that it continually evaluates the management fee schedule of the Fund and the potential to share economies of scale through breakpoints or fee waivers as asset levels increase.
The Board recognized the inherent limitations of any analysis of economies of scale, stemming largely from the Board’s understanding that most of PGIM Investments’ costs are not specific to individual funds, but rather are incurred across a variety of products and services.
Other Benefits to PGIM Investments, PGIM Fixed Income, and PGIML
The Board considered potential ancillary benefits that might be received by PGIM Investments, PGIM Fixed Income, and PGIML and their affiliates as a result of their relationship with the Fund. The Board concluded that potential benefits to be derived by PGIM Investments included transfer agency fees received by the Fund’s transfer agent (which is affiliated with PGIM Investments), as well as benefits to its reputation or other intangible benefits resulting from PGIM Investments’ association with the Fund. The Board concluded that the potential benefits to be derived by PGIM Fixed Income and PGIML included the ability to use soft dollar credits, as well as the potential benefits consistent with those generally resulting from an increase in assets under management, specifically, potential access to additional research resources and benefits to their reputations. The Board concluded that the benefits derived by PGIM Investments, PGIM Fixed Income, and PGIML were consistent with the types of benefits generally derived by investment managers and subadvisers to mutual funds.
Performance of the Fund / Fees and Expenses
The Board considered certain additional specific factors and made related conclusions relating to the historical performance of the Fund for the one-, three- five-, and ten-year periods ended December 31, 2023.
The Board also considered the Fund’s actual management fee, as well as the Fund’s net total expense ratio, for the fiscal year ended August 31, 2023. The Board considered the
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management fee for the Fund as compared to the management fee charged by PGIM Investments to other funds and the fee charged by other advisers to comparable mutual funds in a peer group. The actual management fee represents the fee rate actually paid by Fund shareholders and includes any fee waivers or reimbursements. The net total expense ratio for the Fund represents the actual expense ratio incurred by Fund shareholders.
The mutual funds included in the peer universe, which was used to consider performance, and the peer group, which was used to consider expenses and fees, were objectively determined by Broadridge, an independent provider of mutual fund data. In certain circumstances, PGIM Investments also provided supplemental peer universe or peer group information for reasons addressed with the Board. The comparisons placed the Fund in various quartiles over various periods, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
The section below summarizes key factors considered by the Board and the Board’s conclusions regarding the Fund’s performance, fees and overall expenses. The table sets forth net performance comparisons (which reflect the impact on performance of fund expenses, or any subsidies, expense caps or waivers that may be applicable) with the peer universe, actual management fees with the peer group (which reflect the impact of any subsidies or fee waivers), and net total expenses with the peer group, each of which were key factors considered by the Board.
| | | | | | | | |
| Net Performance | | 1 Year | | 3 Years | | 5 Years | | 10 Years |
| | 2nd Quartile | | 2nd Quartile | | 1st Quartile | | 1st Quartile |
| Actual Management Fees: 4th Quartile |
| Net Total Expenses: 4th Quartile |
| ● | The Board noted that the Fund outperformed its benchmark index over the three-, five-, and ten-year periods and underperformed its benchmark index over the one-year period. |
| ● | The Board and PGIM Investments agreed to retain the existing contractual expense cap, which (exclusive of certain fees and expenses) caps total annual operating expenses at 1.00% for Class A shares, 1.75% for Class C shares, 0.70% for Class R6 shares, and 0.75% for Class Z shares through December 31, 2024. |
| ● | In addition, PGIM Investments will waive management fees or shared operating expenses on any share class to the same extent that it waives such expenses on any other share class and has agreed that total annual fund operating expenses for Class R6 shares will not exceed total annual fund operating expenses for Class Z shares. |
PGIM Short Duration High Yield Income Fund
Approval of Advisory Agreements (continued)
| ● | The Board concluded that it, in light of the above, would be in the best interests of the Fund and its shareholders to renew the agreements. |
| ● | The Board concluded that the management fees (including subadvisory and sub- subadvisory fees) and total expenses were reasonable in light of the services provided. |
* * *
After full consideration of these factors, the Board concluded that approval of the agreements was in the best interests of the Fund and its shareholders.
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| Item 12 – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. |
| Item 13 – | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. |
| Item 14 – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
| Item 15 – | Submission of Matters to a Vote of Security Holders – There have been no material changes to the procedures by which shareholders may recommend nominees to the registrant’s board of directors. |
| Item 16 – | 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 (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d))) that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting. |
| Item 17 – | Disclosure of Securities Lending Activities for Closed-End Management Investment Companies – Not applicable. |
| Item 18 – | Recovery of Erroneously Awarded Compensation – Not applicable. |
| | (a)(2) | Policy required by the listing standards adopted pursuant to Rule 10D-1 under the Securities Exchange Act of 1934 – Not applicable. |
| | (a)(3)(1) | Any written solicitation to purchase securities under Rule 23c-1 under the Investment Company Act of 1940 – Not applicable. |
| | (a)(3)(2) | Change in the registrant’s independent public accountant – Not applicable. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
Registrant: | | Prudential Investment Portfolios, Inc. 15 |
| |
By: | | /s/ Andrew R. French |
| | Andrew R. French |
| | Secretary |
| |
Date: | | October 22, 2024 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
By: | | /s/ Stuart S. Parker |
| | Stuart S. Parker |
| | President and Principal Executive Officer |
| |
Date: | | October 22, 2024 |
| |
By: | | /s/ Christian J. Kelly |
| | Christian J. Kelly |
| | Chief Financial Officer (Principal Financial Officer) |
| |
Date: | | October 22, 2024 |
