Form 485BPOS PRUDENTIAL GLOBAL TOTAL
WASHINGTON, D.C. 20549
PRE-EFFECTIVE AMENDMENT NO.
AMENDMENT NO. 54 (X)
Newark, New Jersey 07102
Newark, New Jersey 07102
__ on pursuant to paragraph (b)
__ 60 days after filing pursuant to paragraph (a)(1)
__ on (____) pursuant to paragraph (a)(1)
__ 75 days after filing pursuant to paragraph (a)(2)
__ on (date) pursuant to paragraph (a)(2) of Rule 485
__ this post-effective amendment designates a new effective date for a previously filed post-effective amendment.
The Amendment is not intended to amend the prospectus or statement of additional information of the other series of the Registrant.
PGIM GLOBAL TOTAL RETURN (USD HEDGED) FUND | |||
A: PHEAX | C: PHECX | Z: PHEZX | R6: PHEQX |
IMPORTANT INFORMATION |
Beginning on January 1, 2021, as permitted by regulations adopted by the Securities and Exchange Commission, paper copies of the Fund’s annual and semi-annual shareholder reports will no longer be sent by mail, unless you specifically request paper copies of the reports. Instead, the reports will be made available on the Fund’s website (www.pgiminvestments.com), and you will be notified by mail each time a report is posted and provided with a website link to access the report. |
If you already elected to receive shareholder reports electronically, you will not be affected by this change and you need not take any action. You may elect to receive shareholder reports and other communications from the Fund electronically anytime by contacting your financial intermediary (such as a broker-dealer or bank) or, if you are a direct investor, by calling 1-800-225-1852 or by sending an e-mail request to PGIM Investments at [email protected]. |
You may elect to receive all future reports in paper free of charge. If you invest through a financial intermediary, you can contact your financial intermediary or follow instructions included with this notice to elect to continue to receive paper copies of your shareholder reports. If you invest directly with the Fund, you can call 1-800-225-1852 or send an email request to [email protected] to let the Fund know you wish to continue receiving paper copies of your shareholder reports. Your election to receive reports in paper will apply to all funds held in your account if you invest through your financial intermediary or all funds held with the fund complex if you invest directly with the Fund. |
To enroll in e-delivery, go to pgiminvestments.com/edelivery | |
As with all mutual funds, the Securities and Exchange Commission has not approved or disapproved the Fund's shares, nor has the SEC determined that this prospectus is complete or accurate. It is a criminal offense to state otherwise. Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS), member SIPC. PGIM Fixed Income is a unit of PGIM, Inc. (PGIM), a registered investment adviser. PIMS and PGIM are Prudential Financial companies. © 2019 Prudential Financial, Inc. and its related entities. The Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. |
Shareholder Fees (fees paid directly from your investment) | ||||
Class A | Class C | Class Z | Class R6† | |
Maximum sales charge (load) imposed on purchases (as a percentage of offering price) | 4.50% | None | None | None |
Maximum deferred sales charge (load) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1.00% | 1.00% | None | None |
Maximum sales charge (load) imposed on reinvested dividends and other distributions | None | None | None | None |
Redemption fees | None | None | None | None |
Exchange fee | None | None | None | None |
Maximum account fee (accounts under $10,000) | $15 | $15 | None* | None |
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) | ||||
Class A | Class C | Class Z | Class R6(1) | |
Management fees | 0.50% | 0.50% | 0.50% | 0.50% |
Distribution and service (12b-1) fees | 0.25% | 1.00% | None | None |
Other expenses | 80.12% | 288.93%(2) | 24.19% | 1.17% |
Total annual Fund operating expenses | 80.87% | 290.43% | 24.69% | 1.67% |
Fee waiver and/or expense reimbursement | (79.99)% | (288.80)% | (24.06)% | (1.09)% |
Total annual Fund operating expenses after fee waiver and/or expense reimbursement(3) | 0.88% | 1.63% | 0.63% | 0.58% |
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If Shares Are Redeemed | If Shares Are Not Redeemed | |||||||
Share Class | 1 Year | 3 Years | 5 Years | 10 Years | 1 Year | 3 Years | 5 Years | 10 Years |
Class A | $536 | $6,731 | $7,092 | $7,114 | $536 | $6,731 | $7,092 | $7,114 |
Class C | $266 | $10,503 | $10,503 | $10,503 | $166 | $10,503 | $10,503 | $10,503 |
Class Z | $64 | $4,253 | $6,955 | $10,224 | $64 | $4,253 | $6,955 | $10,224 |
Class R6† | $59 | $420 | $805 | $1,885 | $59 | $420 | $805 | $1,885 |
4 | PGIM Global Total Return (USD Hedged) Fund |
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6 | PGIM Global Total Return (USD Hedged) Fund |
Average Annual Total Returns % (including sales charges) (as of 12-31-18) | ||||
Return Before Taxes | One Year | Five Years | Ten Years | Since Inception |
Class A shares | -4.68% | N/A | N/A | -4.60% (12/12/17) |
Class C shares | -1.87% | N/A | N/A | -1.09% (12/12/17) |
Class R6 shares† | 0.01% | N/A | N/A | -0.06% (12/12/17) |
Class Z Shares % (as of 12-31-18) | ||||
Return Before Taxes | 0.06% | N/A | N/A | -0.10% (12/12/17) |
Return After Taxes on Distributions | -2.29% | N/A | N/A | -2.38% (12/12/17) |
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Class Z Shares % (as of 12-31-18) | ||||
Return After Taxes on Distributions and Sale of Fund Shares | 0.02% | N/A | N/A | -1.03% (12/12/17) |
Index % (reflects no deduction for fees, expenses or taxes) (as of 12-31-18) | ||||
Bloomberg Barclays Global Aggregate (USD Hedged) Index | 1.76% | N/A | N/A | 1.83%** |
Lipper Average % (reflects no deduction for sales charges or taxes) (as of 12-31-18) | ||||
Lipper Global Income Funds Average | -1.67% | N/A | N/A | -1.29%** |
Investment Manager | Subadvisers | Portfolio Managers | Title | Service Date |
PGIM Investments LLC | PGIM Fixed Income PGIM Limited | Arvind Rajan, PhD | Managing Director & Head of Global & Macro | December 2017 |
Robert Tipp, CFA | Managing Director, Chief Investment Strategist, and Head of Global Bonds | December 2017 | ||
Michael J. Collins, CFA | Managing Director & Senior Portfolio Manager | December 2017 | ||
Matthew Angelucci, CFA | Principal and Co-Senior Portfolio Manager | October 2018 |
Class A* | Class C* | Class Z* | Class R6† | |
Minimum initial investment | $2,500 | $2,500 | Institutions: $5 million Group Retirement Plans: None | Institutions: $5 million Group Retirement Plans: None |
Minimum subsequent investment | $100 | $100 | None | None |
†Formerly known as Class Q shares.
8 | PGIM Global Total Return (USD Hedged) Fund |
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10 | PGIM Global Total Return (USD Hedged) Fund |
The Fund invests in investment-grade US or foreign mortgages and mortgage-related securities issued or guaranteed by US governmental entities or private issuers. These securities are usually pass-through instruments that pay investors a share of all interest and principal payments from an underlying pool of fixed or adjustable rate mortgages. Mortgage-related securities issued by the US Government include GNMAs and mortgage-related securities issued by agencies of the US Government as well as securities issued by Fannie Mae and Freddie Mac. The US Government or the issuing agency directly or indirectly guarantees the payment of interest and principal on these securities (see discussion above). Privately issued mortgage-related securities that are not guaranteed by US governmental entities generally have one or more types of credit enhancement to ensure timely receipt of payments and to protect against default. Private issuer mortgage-backed securities may include loans on commercial or residential properties.
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12 | PGIM Global Total Return (USD Hedged) Fund |
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14 | PGIM Global Total Return (USD Hedged) Fund |
Principal Strategies: Investment Limits |
■ Income-producing debt securities: Normally, at least 65% of total assets■ U.S. dollar currency exposure: At least 80% of net assets■ High-yield, high-risk debt securities (junk bonds) and all unrated securities: Up to 35% of total assets ■ Investments in foreign securities: no limit |
Non-Principal Strategies: Investment Limits |
■ Derivatives (including swaps): Up to 25% of net assets■ Short Sales: Up to 25% of net assets (excluding short sales against the box)■ Asset-backed securities: Up to 35% of total assets■ Mortgages and Mortgage-related securities: Percentage varies■ US Government and Agency securities: Percentage varies■ Loan Participations & Assignments: Up to 10% of net assets■ Illiquid Securities: Up to 15% of net assets■ Money market instruments: Up to 100% on temporary basis■ Borrowing: Up to 33 1⁄3% of total assets■ Zero coupon securities: Up to 10% of net assets■ Adjustable/floating rate securities: Percentage varies■ Stripped securities: Up to 10% of total assets |
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16 | PGIM Global Total Return (USD Hedged) Fund |
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18 | PGIM Global Total Return (USD Hedged) Fund |
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655 Broad Street
Newark, NJ 07102-4410
20 | PGIM Global Total Return (USD Hedged) Fund |
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22 | PGIM Global Total Return (USD Hedged) Fund |
Expected Distribution Schedule* | |
Dividends | Monthly |
Short-Term Capital Gains | Annually |
Long-Term Capital Gains | Annually |
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24 | PGIM Global Total Return (USD Hedged) Fund |
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P.O. Box 9658
Providence, RI 02940
Share Class | Eligibility |
Class A* | Individual investors |
Class C* | Individual investors |
Class Z* | Certain group retirement plans, institutional investors and certain other investors |
Class R6† | Certain group retirement plans, institutional investors and certain other investors |
■ | Class A shares purchased in amounts of less than $1 million require you to pay a sales charge at the time of purchase, but the operating expenses of Class A shares are lower than the operating expenses of Class C shares. Investors who purchase $1 million or more of Class A shares and sell these shares within 12 months of purchase are also subject to a contingent deferred sales charge (CDSC) of 1.00%. The CDSC is waived for certain retirement and/or benefit plans. |
26 | PGIM Global Total Return (USD Hedged) Fund |
■ | Class C shares do not require you to pay a sales charge at the time of purchase, but do require you to pay a contingent deferred sales charge (CDSC) if you sell your shares within 12 months of purchase. The operating expenses of Class C shares are higher than the operating expenses of Class A shares. |
■ | The amount of your investment and any previous or planned future investments, which may qualify you for reduced sales charges for Class A shares under Rights of Accumulation or a Letter of Intent. |
■ | The length of time you expect to hold the shares and the impact of varying distribution fees. Over time, these fees will increase the cost of your investment and may cost you more than paying other types of sales charges. For this reason, Class C shares are generally appropriate only for investors who plan to hold their shares for no more than 3 years. |
■ | The different sales charges that apply to each share class—Class A's front-end sales charge (and, in certain instances, CDSC) vs. Class C's CDSC. |
■ | Class C shares purchased in single amounts greater than $1 million are generally less advantageous than purchasing Class A shares. Purchase orders for Class C shares above this amount generally will not be accepted. |
■ | Because Class Zand Class R6 shares have lower operating expenses than Class A or Class C shares, as applicable, you should consider whether you are eligible to purchase such share classes. |
Class A | Class C | Class Z | Class R6† | |
Minimum purchase amount | $2,500 | $2,500 | Institutions: $5 million Group Retirement Plans: None | Institutions: $5 million Group Retirement Plans: None |
Minimum amount for subsequent purchases | $100 | $100 | None | None |
Maximum initial sales charge | 4.50% of the public offering price | None | None | None |
Contingent Deferred Sales Charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | 1.00% on sales of $1 million or more made within 12 months of purchase | 1.00% on sales made within 12 months of purchase | None | None |
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | 0.25% | 1.00% | None | None |
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Class A | Class C | Class Z | Class R | |
Existing Investors (Group Retirement Plans, IRAs, and all other investors) | No Change | No Change | No Change | No Change |
New Group Retirement Plans | Closed to group retirement plans wishing to add the share classes as new additions to plan menus on June 1, 2018, subject to certain exceptions below | |||
New IRAs | No Change | No Change | No Change | Closed to all new investors on June 1, 2018, subject to certain exceptions below |
All Other New Investors | No Change | No Change | No Change |
■ | Eligible group retirement plans who are exercising their one-time 90-day repurchase privilege in the Fund will be permitted to purchase such share classes. |
■ | Plan participants in a group retirement plan that offers Class A, Class C, Class R or Class Z shares of the Fund, as applicable, as of the Effective Date will be permitted to purchase such share classes of the Fund, even if the plan participant did not own shares of that class of the Fund as of the Effective Date. |
■ | Certain new group retirement plans will be permitted to offer such share classes of the Fund after the Effective Date, provided that the plan has or is actively negotiating a contractual agreement with the Fund’s distributor or service provider to offer such share classes of the Fund prior to or on the Effective Date. |
■ | New group retirement plans that combine with, replace or are otherwise affiliated with a current plan that invests in such share classes prior to or on the Effective Date will be permitted to purchase such share classes. |
28 | PGIM Global Total Return (USD Hedged) Fund |
■ | The Fund also reserves the right to refuse any purchase order that might disrupt management of the Fund or to otherwise modify the closure policy at any time on a case-by-case basis. |
■ | Shareholders owning Class C shares may continue to hold their Class C shares until the shares automatically convert to Class A shares under the conversion schedule, or until the shareholder redeems their Class C shares. |
Amount of Purchase | Sales Charge as a % of Offering Price* | Sales Charge as a % of Amount Invested* | Dealer Reallowance*** |
Less than $50,000 | 4.50% | 4.71% | 4.00% |
$50,000 to $99,999 | 4.00% | 4.17% | 3.50% |
$100,000 to $249,999 | 3.50% | 3.63% | 3.00% |
$250,000 to $499,999 | 2.50% | 2.56% | 2.00% |
$500,000 to $999,999 | 2.00% | 2.04% | 1.75% |
$1 million to $4,999,999** | None | None | 1.00% |
$5 million to $9,999,999** | None | None | 0.50% |
$10 million and over** | None | None | 0.25% |
■ | Use your Rights of Accumulation, which allow you or an eligible group of related investors to combine (1) the current value of Class A, Class B and Class C PGIM Fund shares you or the group already own, (2) the value of money market shares (other than Direct Purchase money market shares) you or an eligible group of related investors have received for shares of other PGIM Funds in an exchange transaction, and (3) the value of the shares you or an eligible group of related investors are purchasing; or |
■ | Sign a Letter of Intent, stating in writing that you or an eligible group of related investors will purchase a certain amount of shares in the Fund and other PGIM Funds within 13 months. |
■ | Purchases made prior to the effective date of the Letter of Intent will be applied toward the satisfaction of the Letter of Intent to determine the level of sales charge that will be paid pursuant to the Letter of Intent, but will not result in any reduction in the amount of any previously paid sales charge. |
■ | All accounts held in your name (alone or with other account holders) and taxpayer identification number (“TIN”); |
■ | Accounts held in your spouse's name (alone or with other account holders) and TIN (see definition of spouse below); |
■ | Accounts for your children or your spouse's children, including children for whom you and/or your spouse are legal guardian(s) (e.g., UGMAs and UTMAs); |
■ | Accounts in the name and TINs of your parents; |
■ | Trusts with you, your spouse, your children, your spouse's children and/or your parents as the beneficiaries; |
■ | With limited exclusions, accounts with the same address (exclusions include, but are not limited to, addresses for brokerage firms and other intermediaries and Post Office boxes); and |
■ | Accounts held in the name of a company controlled by you (a person, entity or group that holds 25% or more of the outstanding voting securities of a company will be deemed to control the company, and a partnership will be deemed to be controlled by each of its general partners), including employee benefit plans of the company where the accounts are held in the plan's TIN. |
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■ | The person to whom you are legally married. We also consider your spouse to include the following: |
■ | An individual of the same gender with whom you have been joined in a civil union, or legal contract similar to marriage; |
■ | A domestic partner, who is an individual (including one of the same gender) with whom you have shared a primary residence for at least six months, in a relationship as a couple where you, your domestic partner or both provide for the personal or financial welfare of the other without a fee, to whom you are not related by blood; or |
■ | An individual with whom you have a common law marriage, which is a marriage in a state where such marriages are recognized between a man and a woman arising from the fact that the two live together and hold themselves out as being married. |
■ | Mutual fund “wrap” or asset allocation programs, where the sponsor places fund trades, links its clients' accounts to a master account in the sponsor's name and charges its clients a management, consulting or other fee for its services; or |
■ | Mutual fund “supermarket” programs, where the sponsor links its clients' accounts to a master account in the sponsor's name and the sponsor charges a fee for its services. |
30 | PGIM Global Total Return (USD Hedged) Fund |
■ | Certain directors, officers, current employees (including their spouses, children and parents) and former employees (including their spouses, children and parents) of Prudential and its affiliates, the PGIM Funds, and the subadvisers of the PGIM Funds; former employees must have an existing investment in the Fund; |
■ | Persons who have retired directly from active service with Prudential or one of its subsidiaries; |
■ | Registered representatives and employees of broker-dealers (including their spouses, children and parents) that offer Class A shares; |
■ | Investors in IRAs, provided that: (a) the purchase is made either from a directed rollover to such IRA or with the proceeds of a tax-free rollover of assets from a Benefit Plan for which Prudential Retirement (the institutional Benefit Plan recordkeeping entity of Prudential) provides administrative or recordkeeping services, in each case provided that such purchase is made within 60 days of receipt of the Benefit Plan distribution, and (b) the IRA is established through Prudential Retirement as part of its “Rollover IRA” program (regardless of whether or not the purchase consists of proceeds of a tax-free rollover of assets from a Benefit Plan described above); and |
■ | Clients of financial intermediaries, who (i) offer Class A shares through a no-load network or platform, (ii) charge clients an ongoing fee for advisory, investment, consulting or similar services, or (iii) offer self-directed brokerage accounts or other similar types of accounts that may or may not charge transaction fees to customers. |
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■ | Mutual fund “wrap” or asset allocation programs where the sponsor places fund trades, links its clients' accounts to a master account in the sponsor's name and charges its clients a management, consulting or other fee for its services; or |
■ | Mutual fund “supermarket” programs where the sponsor links its clients' accounts to a master account in the sponsor's name and the sponsor charges a fee for its services. |
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■ | Certain participants in the MEDLEY Program (group variable annuity contracts) sponsored by Prudential for whom Class Z shares of the PGIM Funds are an available option; |
■ | Current and former Directors/Trustees of mutual funds managed by PGIM Investments or any other affiliate of Prudential; |
■ | Current and former employees (including their spouses, children and parents) of Prudential and its affiliates; former employees must have an existing investment in the Fund; |
■ | Prudential (including any program or account sponsored by Prudential or an affiliate that includes the Fund as an available option); |
■ | PGIM Funds, including PGIM funds-of-funds; |
■ | Qualified state tuition programs (529 plans); and |
■ | Investors working with fee-based consultants for investment selection and allocations. |
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34 | PGIM Global Total Return (USD Hedged) Fund |
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36 | PGIM Global Total Return (USD Hedged) Fund |
P.O. Box 9658
Providence, RI 02940
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Important Note: Effective January 1, 2021 you will no longer receive mailed copies of the annual and semi-annual reports, unless you elect to continue to receive these mailings. See the front cover of this prospectus for more information.
P.O. Box 9658
Providence, RI 02940
38 | PGIM Global Total Return (USD Hedged) Fund |
■ | You are selling more than $100,000 of shares; |
■ | You want the redemption proceeds made payable to someone that is not in the Transfer Agent’s records; |
■ | You want the redemption proceeds sent to an address that is not in the Transfer Agent’s records; |
■ | You are a business or a trust; or |
■ | You are redeeming due to the death of the shareholder or on behalf of the shareholder. |
■ | Amounts representing shares you purchased with reinvested dividends and distributions, |
■ | Amounts representing the increase in NAV above the total amount of payments for shares made during the past 12 months for Class A shares (in certain cases) and 12 months for Class C shares, and |
■ | Amounts representing the cost of shares held beyond the CDSC period (12 months for Class A shares (in certain cases) and 12 months for Class C shares). |
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■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or permanent disability of the grantor). This waiver applies to individual shareholders, as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability; |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account; and |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account. |
■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or permanent disability of the grantor). This waiver applies to individual shareholders, as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability; |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account; and |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account. |
40 | PGIM Global Total Return (USD Hedged) Fund |
P.O. Box 9658
Providence, RI 02940
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42 | PGIM Global Total Return (USD Hedged) Fund |
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Class A Shares | ||
December 12, 2017(a) through October 31, 2018 | ||
Per Share Operating Performance(b): | ||
Net Asset Value, Beginning of Period | $10.00 | |
Income (loss) from investment operations: | ||
Net investment income (loss) | 0.16 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.42) | |
Total from investment operations | (0.26) | |
Less Dividends and Distributions: | ||
Dividends from net investment income | (0.26) | |
Net asset value, end of period | $9.48 | |
Total Return(c): | (2.65)% | |
Ratios/Supplemental Data: | ||
Net assets, end of period (000) | $49 | |
Average net assets (000) | $46 | |
Ratios to average net assets(d): | ||
Expenses after waivers and/or expense reimbursement | 0.88%(e) | |
Expenses before waivers and/or expense reimbursement | 80.88%(e) | |
Net investment income (loss) | 1.86%(e) | |
Portfolio turnover rate(f) | 67% |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund's portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund's portfolio turnover rate may be higher. |
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Class C Shares | ||
December 12, 2017(a) through October 31, 2018 | ||
Per Share Operating Performance(b): | ||
Net Asset Value, Beginning of Period | $10.00 | |
Income (loss) from investment operations: | ||
Net investment income (loss) | 0.10 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.43) | |
Total from investment operations | (0.33) | |
Less Dividends and Distributions: | ||
Dividends from net investment income | (0.19) | |
Net asset value, end of period | $9.48 | |
Total Return(c): | (3.29)% | |
Ratios/Supplemental Data: | ||
Net assets, end of period (000) | $17 | |
Average net assets (000) | $13 | |
Ratios to average net assets(d): | ||
Expenses after waivers and/or expense reimbursement | 1.63%(e) | |
Expenses before waivers and/or expense reimbursement | 290.47%(e) | |
Net investment income (loss) | 1.13%(e) | |
Portfolio turnover rate(f) | 67% |
(a) | Commencement of operations. |
(b) | Calculated based on average shares outstanding during the period. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(d) | Does not include expenses of the underlying funds in which the Fund invests. |
(e) | Annualized. |
(f) | The Fund's portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund's portfolio turnover rate may be higher. |
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Class Z Shares | ||
December 12, 2017(a) through October 31, 2018 | ||
Per Share Operating Performance(b): | ||
Net Asset Value, Beginning of Period | $10.00 | |
Income (loss) from investment operations: | ||
Net investment income (loss) | 0.18 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.42) | |
Total from investment operations | (0.24) | |
Less Dividends and Distributions: | ||
Dividends from net investment income | (0.28) | |
Net asset value, end of period | $9.48 | |
Total Return(c): | (2.44)% | |
Ratios/Supplemental Data: | ||
Net assets, end of period (000) | $164 | |
Average net assets (000) | $160 | |
Ratios to average net assets(d): | ||
Expenses after waivers and/or expense reimbursement | 0.63%(e) | |
Expenses before waivers and/or expense reimbursement | 24.70%(e) | |
Net investment income (loss) | 2.11%(e) | |
Portfolio turnover rate(f) | 67% |
(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 generally accepted accounting principles. 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) | Annualized. |
(f) | The Fund's portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund's portfolio turnover rate may be higher. |
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Class R6 Shares | ||
December 12, 2017(a) through October 31, 2018 | ||
Per Share Operating Performance(b): | ||
Net Asset Value, Beginning of Period | $10.00 | |
Income (loss) from investment operations: | ||
Net investment income (loss) | 0.18 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | (0.42) | |
Total from investment operations | (0.24) | |
Less Dividends and Distributions: | ||
Dividends from net investment income | (0.28) | |
Net asset value, end of period | $9.48 | |
Total Return(c): | (2.40)% | |
Ratios/Supplemental Data: | ||
Net assets, end of period (000) | $24,421 | |
Average net assets (000) | $24,571 | |
Ratios to average net assets(d): | ||
Expenses after waivers and/or expense reimbursement | 0.58%(e) | |
Expenses before waivers and/or expense reimbursement | 1.67%(e) | |
Net investment income (loss) | 2.14%(e) | |
Portfolio turnover rate(f) | 67% |
(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 generally accepted accounting principles. 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) | Annualized. |
(f) | The Fund's portfolio turnover rate is calculated in accordance with regulatory requirements, without regard to transactions involving short term investments and certain derivatives. If such transactions were included, the Fund's portfolio turnover rate may be higher. |
Visit our website at www.pgiminvestments.com | 47 |
48 | PGIM Global Total Return (USD Hedged) Fund |
■ | Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan |
■ | Shares purchased by or through a 529 Plan, if applicable |
■ | Shares purchased through a Merrill Lynch affiliated investment advisory program |
■ | Shares purchased by third party investment advisors on behalf of their advisory clients through Merrill Lynch’s platform |
■ | Shares of funds purchased through the Merrill Edge Self-Directed platform |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family) |
■ | Shares exchanged from Class C (i.e. level-load) shares of the same fund in the month of or following the 10-year anniversary of the purchase date |
■ | Employees and registered representatives of Merrill Lynch or its affiliates and their family members |
■ | Directors or Trustees of the Fund, and employees of the Fund’s investment adviser or any of its affiliates, as described in this prospectus |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement) |
■ | Death or disability of the shareholder |
■ | Shares sold as part of a systematic withdrawal plan as described in this prospectus |
■ | Return of excess contributions from an IRA Account |
■ | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70 1⁄2 |
■ | Shares sold to pay Merrill Lynch fees but only if the transaction is initiated by Merrill Lynch |
■ | Shares acquired through a Right of Reinstatement |
■ | Shares held in retirement brokerage accounts, that are exchanged for a lower cost share class due to transfer to certain fee based accounts or platforms (applicable to Class A and C shares only) |
■ | Breakpoints as described in this prospectus |
■ | Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Merrill Lynch. Eligible fund family assets not held at Merrill Lynch may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets |
■ | Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through Merrill Lynch, over a 13-month period of time (if applicable) |
■ | Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans |
■ | Morgan Stanley employee and employee-related accounts according to Morgan Stanley’s account linking rules |
■ | Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund |
■ | Shares purchased through a Morgan Stanley self-directed brokerage account |
■ | Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management’s share class conversion program |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge. |
■ | Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs. |
■ | Shares purchased through an Ameriprise Financial investment advisory program (if an Advisory or similar share class for such investment advisory program is not available). |
■ | Shares purchased by third party investment advisors on behalf of their advisory clients through Ameriprise Financial’s platform (if an Advisory or similar share class for such investment advisory program is not available). |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family). |
■ | Shares exchanged from Class C shares of the same fund in the month of or following the 10-year anniversary of the purchase date. To the extent that this prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load waived shares, that waiver will also apply to such exchanges. |
■ | Employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members. |
■ | Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant (mother, father, |
grandmother, grandfather, great grandmother, great grandfather), advisor’s lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant. | |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement). |
■ | Shares purchased in an investment advisory program. |
■ | Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family). |
■ | Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James. |
■ | Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement). |
■ | A shareholder in the Fund’s Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James. |
■ | Death or disability of the shareholder. |
■ | Shares sold as part of a systematic withdrawal plan as described in the fund’s prospectus. |
■ | Return of excess contributions from an IRA Account. |
■ | Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching age 70 1⁄2 as described in the fund’s prospectus. |
■ | Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James. |
■ | Shares acquired through a right of reinstatement. |
■ | Breakpoints as described in this prospectus. |
■ | Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser’s household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the rights of accumulation calculation only if the shareholder notifies his or her financial advisor about such assets. |
FOR MORE INFORMATION Please read this Prospectus before you invest in the Fund and keep it for future reference. For information or shareholder questions contact: | |
■ MAIL Prudential Mutual Fund Services LLC PO Box 9658 Providence, RI 02940■ WEBSITE www.pgiminvestments.com | ■ TELEPHONE (800) 225-1852 (973) 367-3529 (from outside the US) |
■ E-DELIVERY To receive your mutual fund documents on-line, go to www.pgiminvestments.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
The Annual and Semi-Annual Reports and the SAI contain additional information about the Fund. Shareholders may obtain free copies of the SAI, Annual Report and Semi-Annual Report as well as other information about the Fund and may make other shareholder inquiries through the telephone number, address and website listed above. | |
■ STATEMENT OF ADDITIONAL INFORMATION (SAI) (incorporated by reference into this Prospectus) ■ SEMI-ANNUAL REPORT | ■ ANNUAL REPORT (contains a discussion of the market conditions and investment strategies that significantly affected the Fund's performance during the last fiscal year) |
You can also obtain copies of Fund documents, including the SAI, from the Securities and Exchange Commission as follows (the SEC charges a fee to copy documents): | |
■ ELECTRONIC REQUEST [email protected] | ■ VIA THE INTERNET on the EDGAR Database at www.sec.gov |
PGIM Global Total Return (USD Hedged) Fund | ||||
Share Class | A | C | Z | R6 |
NASDAQ | PHEAX | PHECX | PHEZX | PHEQX |
CUSIP | 74439A707 | 74439A806 | 74439A871 | 74439A889 |
MF238STAT | The Fund's Investment Company Act File No. 811-04661 |
Term | Definition |
1933 Act | Securities Act of 1933, as amended |
1934 Act | Securities Exchange Act of 1934, as amended |
1940 Act | Investment Company Act of 1940, as amended |
1940 Act Laws, Interpretations and Exemptions | Exemptive order, SEC release, no-action letter or similar relief or interpretations, collectively |
ADR | American Depositary Receipt |
ADS | American Depositary Share |
Board | Fund’s Board of Directors or Trustees |
Board Member | A trustee or director of the Fund’s Board |
CEA | Commodity Exchange Act, as amended |
CFTC | US Commodity Futures Trading Commission |
Code | Internal Revenue Code of 1986, as amended |
CMO | Collateralized Mortgage Obligation |
ETF | Exchange-Traded Fund |
EDR | European Depositary Receipt |
Fannie Mae | Federal National Mortgage Association |
FDIC | Federal Deposit Insurance Corporation |
Fitch | Fitch Ratings, Inc. |
Freddie Mac | Federal Home Loan Mortgage Corporation |
GDR | Global Depositary Receipt |
Ginnie Mae | Government National Mortgage Association |
IPO | Initial Public Offering |
IRS | Internal Revenue Service |
LIBOR | London Interbank Offered Rate |
Manager or PGIM Investments | PGIM Investments LLC |
Moody’s | Moody’s Investors Service, Inc. |
NASDAQ | National Association of Securities Dealers Automated Quotations System |
NAV | Net Asset Value |
NRSRO | Nationally Recognized Statistical Rating Organization |
NYSE | New York Stock Exchange |
OTC | Over the Counter |
Prudential | Prudential Financial, Inc. |
PMFS | Prudential Mutual Fund Services LLC |
QPTP | “Qualified publicly traded partnership” as the term is used in the Internal Revenue Code of 1986, as amended |
REIT | Real Estate Investment Trust |
Term | Definition |
RIC | Regulated Investment Company, as the term is used in the Internal Revenue Code of 1986, as amended |
S&P | S&P Global Ratings |
SEC | US Securities & Exchange Commission |
World Bank | International Bank for Reconstruction and Development |
■ | Junk bonds are issued by less creditworthy issuers. These securities are vulnerable to adverse changes in the issuer's economic condition and to general economic conditions. Issuers of junk bonds may be unable to meet their interest or principal payment obligations because of an economic downturn, specific issuer developments or the unavailability of additional financing. |
■ | The issuers of junk bonds may have a larger amount of outstanding debt relative to their assets than issuers of investment grade bonds. If the issuer experiences financial stress, it may be unable to meet its debt obligations. |
■ | Junk bonds are frequently ranked junior to claims by other creditors. If the issuer cannot meet its obligations, the senior obligations are generally paid off before the junior obligations. |
■ | Junk bonds frequently have redemption features that permit an issuer to repurchase the security from the Fund before it matures. If an issuer redeems the junk bonds, the Fund may have to invest the proceeds in bonds with lower yields and may lose income. |
■ | Prices of junk bonds are subject to extreme price fluctuations. Negative economic developments may have a greater impact on the prices of junk bonds than on other higher rated fixed-income securities. |
■ | Junk bonds may be less liquid than higher rated fixed-income securities even under normal economic conditions. There are fewer dealers in the junk bond market, and there may be significant differences in the prices quoted for junk bonds by the dealers. Because they are less liquid, judgment may play a greater role in valuing certain of the Fund’s portfolio securities than in the case of securities trading in a more liquid market. |
■ | The Fund may incur expenses to the extent necessary to seek recovery upon default or to negotiate new terms with a defaulting issuer. |
Independent Board Members | |||
Name, Address, Age Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service |
Ellen S. Alberding (60) Board Member Portfolios Overseen: 96 | President and Board Member, The Joyce Foundation (charitable foundation) (since 2002); Vice Chair, City Colleges of Chicago (community college system) (2011-2015); Trustee, National Park Foundation (charitable foundation for national park system) (2009-2018); Trustee, Economic Club of Chicago (since 2009); Trustee, Loyola University (since 2018). | None. | Since September 2013 |
Kevin J. Bannon (66) Board Member Portfolios Overseen: 96 | Retired; Managing Director (April 2008-May 2015) and Chief Investment Officer (October 2008-November 2013) of Highmount Capital LLC (registered investment adviser); formerly Executive Vice President and Chief Investment Officer (April 1993-August 2007) of Bank of New York Company; President (May 2003-May 2007) of BNY Hamilton Family of Mutual Funds. | Director of Urstadt Biddle Properties (equity real estate investment trust) (since September 2008). | Since July 2008 |
Linda W. Bynoe (66) Board Member Portfolios Overseen: 96 | President and Chief Executive Officer (since March 1995) and formerly Chief Operating Officer (December 1989-February 1995) of Telemat Ltd. (management consulting); formerly Vice President (January 1985-June 1989) at Morgan Stanley & Co. (broker-dealer). | Director of Anixter International, Inc. (communication products distributor) (since January 2006); Director of Northern Trust Corporation (financial services) (since April 2006); Trustee of Equity Residential (residential real estate) (since December 2009). | Since March 2005 |
Barry H. Evans (58) Board Member Portfolios Overseen: 95 | Retired; formerly President (2005 – 2016), Global Chief Operating Officer (2014– 2016), Chief Investment Officer – Global Head of Fixed Income (1998-2014), and various portfolio manager roles (1986-2006), Manulife Asset Management U.S. | Director, Manulife Trust Company (since 2011); formerly Director, Manulife Asset Management Limited (2015-2017); formerly Chairman of the Board of Directors of Manulife Asset Management U.S. (2005-2016); formerly Chairman of the Board, Declaration Investment Management and Research (2008-2016). | Since September 2017 |
Keith F. Hartstein (62) Board Member & Independent Chair Portfolios Overseen: 96 | Retired; Member (since November 2014) of the Governing Council of the Independent Directors Council (organization of independent mutual fund directors); formerly President and Chief Executive Officer (2005-2012), Senior Vice President (2004-2005), Senior Vice President of Sales and Marketing (1997-2004), and various executive management positions (1990-1997), John Hancock Funds, LLC (asset management); Chairman, Investment Company Institute’s Sales Force Marketing Committee (2003-2008). | None. | Since September 2013 |
Independent Board Members | |||
Name, Address, Age Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service |
Laurie Simon Hodrick (56) Board Member Portfolios Overseen: 95 | A. Barton Hepburn Professor Emerita of Economics in the Faculty of Business, Columbia Business School (since 2018); Visiting Professor of Law, Stanford Law School (since 2015); Visiting Fellow at the Hoover Institution, Stanford University (since 2015); Sole Member, ReidCourt LLC (since 2008) (a consulting firm); formerly A. Barton Hepburn Professor of Economics in the Faculty of Business, Columbia Business School (1996-2017); formerly Managing Director, Global Head of Alternative Investment Strategies, Deutsche Bank (2006-2008). | Independent Director, Kabbage, Inc. (since July 2018) (financial services); Independent Director, Corporate Capital Trust (2017-2018) (a business development company). | Since September 2017 |
Michael S. Hyland, CFA (73) Board Member Portfolios Overseen: 96 | Retired (since February 2005); formerly Senior Managing Director (July 2001-February 2005) of Bear Stearns & Co, Inc.; Global Partner, INVESCO (1999-2001); Managing Director and President of Salomon Brothers Asset Management (1989-1999). | None. | Since July 2008 |
Brian K. Reid (56) # Board Member Portfolios Overseen: 95 | Retired; formerly Chief Economist for the Investment Company Institute (ICI) (2005-2017); formerly Senior Economist and Director of Industry and Financial Analysis at the ICI (1998-2004); formerly Senior Economist, Industry and Financial Analysis at the ICI (1996-1998); formerly Staff Economist at the Federal Reserve Board (1989-1996); Director, ICI Mutual Insurance Company (2012-2017). | None. | Since March 2018 |
Interested Board Members | |||
Name, Address, Age Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service |
Stuart S. Parker (56) Board Member & President Portfolios Overseen: 96 | President of PGIM Investments LLC (formerly known as Prudential Investments LLC) (since January 2012); Executive Vice President of Prudential Investment Management Services LLC (since December 2012); formerly Executive Vice President of Jennison Associates LLC and Head of Retail Distribution of PGIM Investments LLC (June 2005-December 2011). | None. | Since January 2012 |
Scott E. Benjamin (45) Board Member & Vice President Portfolios Overseen:96 | Executive Vice President (since June 2009) of PGIM Investments LLC; Executive Vice President (June 2009-June 2012) and Vice President (since June 2012) of Prudential Investment Management Services LLC; Executive Vice President (since September 2009) of AST Investment Services, Inc.; Senior Vice President of Product Development and Marketing, PGIM Investments (since February 2006); formerly Vice President of Product Development and Product Management, PGIM Investments LLC (2003-2006). | None. | Since March 2010 |
Interested Board Members | |||
Name, Address, Age Position(s) Portfolios Overseen | Principal Occupation(s) During Past Five Years | Other Directorships Held During Past Five Years | Length of Board Service |
Grace C. Torres* (59) Board Member Portfolios Overseen: 95 | Retired; formerly Treasurer and Principal Financial and Accounting Officer of the PGIM Funds, Target Funds, Advanced Series Trust, Prudential Variable Contract Accounts and The Prudential Series Fund (1998-June 2014); Assistant Treasurer (March 1999-June 2014) and Senior Vice President (September 1999-June 2014) of PGIM Investments LLC; Assistant Treasurer (May 2003-June 2014) and Vice President (June 2005-June 2014) of AST Investment Services, Inc.; Senior Vice President and Assistant Treasurer (May 2003-June 2014) of Prudential Annuities Advisory Services, Inc. | Formerly Director (July 2015-January 2018) of Sun Bancorp, Inc. N.A. and Sun National Bank; Director (since January 2018) of OceanFirst Financial Corp. and OceanFirst Bank. | Since November 2014 |
Fund Officers(a) | ||
Name, Address and Age Position with Fund | Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer |
Raymond A. O’Hara (63) Chief Legal Officer | Vice President and Corporate Counsel (since July 2010) of Prudential Insurance Company of America (Prudential); Vice President (March 2011-Present) of Pruco Life Insurance Company and Pruco Life Insurance Company of New Jersey; Vice President and Corporate Counsel (March 2011-Present) of Prudential Annuities Life Assurance Corporation; Chief Legal Officer of PGIM Investments LLC (since June 2012); Chief Legal Officer of Prudential Mutual Fund Services LLC (since June 2012) and Corporate Counsel of AST Investment Services, Inc. (since June 2012); formerly Assistant Vice President and Corporate Counsel (September 2008-July 2010) of The Hartford Financial Services Group, Inc.; formerly Associate (September 1980-December 1987) and Partner (January 1988–August 2008) of Blazzard & Hasenauer, P.C. (formerly, Blazzard, Grodd & Hasenauer, P.C.). | Since June 2012 |
Chad A. Earnst (43) Chief Compliance Officer | Chief Compliance Officer (September 2014-Present) of PGIM Investments LLC; Chief Compliance Officer (September 2014-Present) of the PGIM Funds, Target Funds, Advanced Series Trust, The Prudential Series Fund, Prudential's Gibraltar Fund, Inc., PGIM Global Short Duration High Yield Income Fund, Inc., PGIM Short Duration High Yield Fund, Inc. and PGIM Jennison MLP Income Fund, Inc.; formerly Assistant Director (March 2010-August 2014) of the Asset Management Unit, Division of Enforcement, US Securities & Exchange Commission; Assistant Regional Director (January 2010-August 2014), Branch Chief (June 2006–December 2009) and Senior Counsel (April 2003-May 2006) of the Miami Regional Office, Division of Enforcement, US Securities & Exchange Commission. | Since September 2014 |
Dino Capasso (44) Deputy Chief Compliance Officer | Vice President and Deputy Chief Compliance Officer (June 2017-Present) of PGIM Investments LLC; formerly, Senior Vice President and Senior Counsel (January 2016-June 2017), and Vice President and Counsel (February 2012-December 2015) of Pacific Investment Management Company LLC. | Since March 2018 |
Andrew R. French (56) Secretary | Vice President and Corporate Counsel (since February 2010) of Prudential; formerly Director and Corporate Counsel (2006-2010) of Prudential; Vice President and Assistant Secretary (since January 2007) of PGIM Investments LLC; Vice President and Assistant Secretary (since January 2007) of Prudential Mutual Fund Services LLC. | Since October 2006 |
Jonathan D. Shain (60) Assistant Secretary | Vice President and Corporate Counsel (since August 1998) of Prudential; Vice President and Assistant Secretary (since May 2001) of PGIM Investments LLC; Vice President and Assistant Secretary (since February 2001) of Prudential Mutual Fund Services LLC; formerly Vice President and Assistant Secretary (May 2003-June 2005) of AST Investment Services, Inc. | Since May 2005 |
Claudia DiGiacomo (44) Assistant Secretary | Vice President and Corporate Counsel (since January 2005) of Prudential; Vice President and Assistant Secretary of PGIM Investments LLC (since December 2005); formerly Associate at Sidley Austin Brown & Wood LLP (1999-2004). | Since December 2005 |
Christian J. Kelly (43) Treasurer and Principal Financial and Accounting Officer | Vice President, Head of Fund Administration of PGIM Investments LLC (since November 2018); formerly, Director of Fund Administration of Lord Abbett & Co. LLC (2009-2018), Treasurer and Principal Accounting Officer of the Lord Abbett Family of Funds (2017-2018); Director of Accounting, Avenue Capital Group (2008-2009); Senior Manager, Investment Management Practice of Deloitte & Touche LLP (1998-2007). | Since January 2019 |
Peter Parrella (60) Assistant Treasurer | Vice President (since 2007) and Director (2004-2007) within PGIM Investments Fund Administration; formerly Tax Manager at SSB Citi Fund Management LLC (1997-2004). | Since June 2007 |
Fund Officers(a) | ||
Name, Address and Age Position with Fund | Principal Occupation(s) During Past Five Years | Length of Service as Fund Officer |
Lana Lomuti (51) Assistant Treasurer | Vice President (since 2007) and Director (2005-2007), within PGIM Investments Fund Administration; formerly Assistant Treasurer (December 2007-February 2014) of The Greater China Fund, Inc. | Since April 2014 |
Linda McMullin (57) Assistant Treasurer | Vice President (since 2011) and Director (2008-2011) within PGIM Investments Fund Administration. | Since April 2014 |
Kelly A. Coyne (50) Assistant Treasurer | Director, Investment Operations of Prudential Mutual Fund Services LLC (since 2010). | Since March 2015 |
Charles H. Smith (46) Anti-Money Laundering Compliance Officer | Vice President, Corporate Compliance, Anti-Money Laundering Unit (since January 2015) of Prudential; committee member of the American Council of Life Insurers Anti-Money Laundering and Critical Infrastructure Committee (since January 2016); formerly Global Head of Economic Sanctions Compliance at AIG Property Casualty (February 2007 – December 2014); Assistant Attorney General at the New York State Attorney General's Office, Division of Public Advocacy. (August 1998 —January 2007). | Since January 2017 |
■ | Board Members are deemed to be “Interested,” as defined in the 1940 Act, by reason of their affiliation with PGIM Investments LLC and/or an affiliate of PGIM Investments LLC. |
■ | Unless otherwise noted, the address of all Board Members and Officers is c/o PGIM Investments LLC, 655 Broad Street, Newark, New Jersey 07102-4410. |
■ | There is no set term of office for Board Members or Officers. The Board Members have adopted a retirement policy, which calls for the retirement of Board Members on December 31 of the year in which they reach the age of 75. |
■ | “Other Directorships Held” includes only directorships of companies required to register or file reports with the SEC under the 1934 Act (that is, “public companies”) or other investment companies registered under the 1940 Act. |
■ | “Portfolios Overseen” includes all investment companies managed by PGIM Investments LLC. The investment companies for which PGIM Investments LLC serves as manager include the PGIM Funds, The Prudential Variable Contract Accounts, PGIM ETF Trust, PGIM Short Duration High Yield Fund, Inc., PGIM Global Short Duration High Yield Fund, Inc., The Prudential Series Fund, Prudential's Gibraltar Fund, Inc. and the Advanced Series Trust. |
Name | Aggregate Fiscal Period Compensation from Fund | Pension or Retirement Benefits Accrued as Part of Fund Expenses | Estimated Annual Benefits Upon Retirement | Total Compensation from Fund and Fund Complex for Most Recent Calendar Year |
Compensation Received by Independent Board Members | ||||
Ellen S. Alberding | $1,007 | None | None | $312,000 (32/96)* |
Kevin J. Bannon | $1,007 | None | None | $322,000 (32/96)* |
Linda W. Bynoe** | $1,007 | None | None | $322,000 (32/96)* |
Barry H. Evans** | $1,007 | None | None | $309,000 (31/95)* |
Compensation Received by Independent Board Members | ||||
Keith F. Hartstein** | $1,037 | None | None | $386,000 (32/96)* |
Laurie Simon Hodrick** | $1,007 | None | None | $313,000 (31/95)* |
Michael S. Hyland** | $1,007 | None | None | $318,000 (32/96)* |
Richard A. Redeker** ± | $1,007 | None | None | $309,000 (32/96)* |
Brian K. Reid # | $807 | None | None | $266,500 (31/95)* |
Stephen G. Stoneburn** † | $510 | None | None | $121,750 (32/96)* |
Compensation Received by Non-Management Interested Board Member | ||||
Grace C. Torres‡ | $1,003 | None | None | $269,000 (31/95)* |
# Mr. Reid joined the Board effective as of March 1, 2018
† Mr. Stoneburn retired from the Board effective as of June 1, 2018.
Kevin J. Bannon (Chair)
Laurie Simon Hodrick
Michael S. Hyland, CFA
Brian K. Reid
Keith F. Hartstein (ex-officio)
Linda W. Bynoe (Chair)
Ellen S. Alberding
Barry H. Evans
Keith F. Hartstein (ex-officio)
Gibraltar Investment Committee
Ellen S. Alberding (Chair)
Kevin J. Bannon
Keith F. Hartstein
Laurie Simon Hodrick
Brian K. Reid
Michael S. Hyland, CFA (Chair)
Linda W. Bynoe
Barry H. Evans
Grace C. Torres
Board Committee Meetings (for most recently completed fiscal year) | ||
Audit Committee | Nominating & Governance Committee | Dryden Investment Committee |
4 | 4 | 4 |
Name | Dollar Range of Equity Securities in the Fund | Aggregate Dollar Range of Equity Securities in All Registered Investment Companies Overseen by Board Member in Fund Complex |
Board Member Share Ownership: Independent Board Members | ||
Ellen S. Alberding | None | Over $100,000 |
Kevin J. Bannon | None | Over $100,000 |
Linda W. Bynoe | None | Over $100,000 |
Barry H. Evans | None | Over $100,000 |
Keith F. Hartstein | None | Over $100,000 |
Laurie Simon Hodrick | None | Over $100,000 |
Michael S. Hyland | None | Over $100,000 |
Brian K. Reid | None | Over $100,000 |
Board Member Share Ownership: Interested Board Members | ||
Stuart S. Parker | None | Over $100,000 |
Scott E. Benjamin | None | Over $100,000 |
Name | Dollar Range of Equity Securities in the Fund | Aggregate Dollar Range of Equity Securities in All Registered Investment Companies Overseen by Board Member in Fund Complex |
Board Member Share Ownership: Interested Board Members | ||
Grace C. Torres | None | Over $100,000 |
0.50% on average daily net assets up to $2 billion;
0.485% of average daily net assets over $2 billion.
Management Fees Paid by the Fund | |||
2018* | 2017 | 2016 | |
Gross Fee | $110,025 | N/A | N/A |
Amount Waived/Reimbursed by PGIM Investments | $(337,262) | N/A | N/A |
Net Fee | $(227,237) | N/A | N/A |
* The Fund commenced investment operations as of December 12, 2017. Information shown above is for the fiscal period ended October 31, 2018.
0.235% on average daily net assets over $2 billion.
Subadvisory Fees Paid | |||
2018* | 2017 | 2016 | |
$60,513 | N/A | N/A |
Other Funds and Investment Accounts Managed by the Portfolio Managers | ||||
Subadvisers | Portfolio Managers | Registered Investment Companies/Total Assets | Other Pooled Investment Vehicles/ Total Assets | Other Accounts/ Total Assets |
PGIM Fixed Income PGIM Limited* | Arvind Rajan, PhD | 3/$1,805,179,333 | 1/$211,159,568 | 3/$1,374,499,495 |
Robert Tipp, CFA | 26/$47,997,453,059 | 17/$1,282,389,732 1/$612,590 | 95/$24,955,057,801 | |
Michael J. Collins, CFA | 18/$60,477,939,619 | 7/$13,958,189,847 | 41/$23,140,509,181 | |
Matthew Angelucci, CFA | 3/$1,805,179,333 | 1/$211,159,568 | 3/$1,374,499,495 |
Personal Investments and Financial Interests of the Portfolio Managers | ||
Subadvisers | Portfolio Managers | Investments and Other Financial Interests in the Fund and Similar Strategies* |
PGIM Fixed Income PGIM Limited | Arvind Rajan, PhD | None |
Robert Tipp, CFA | None | |
Michael J. Collins, CFA | None | |
Matthew Angelucci, CFA | None |
COMPENSATION. The base salary of an investment professional in the PGIM Fixed Income unit of PGIM is based on market data relative to similar positions as well as the past performance, years of experience and scope of responsibility of the individual. Incentive compensation, including the annual cash bonus, the long-term equity grant and grants under PGIM Fixed Income’s long-term incentive plans, is primarily based on such person’s contribution to PGIM Fixed Income’s goal of providing investment performance to clients consistent with portfolio objectives, guidelines and risk parameters and market-based data such as compensation trends and levels of overall compensation for similar positions in the asset management industry. In addition, an investment professional’s qualitative contributions to the organization and its commercial success are considered in determining incentive compensation. Incentive compensation is not solely based on the performance of, or value of assets in, any single account or group of client accounts.
■ | business initiatives; |
■ | the number of investment professionals receiving a bonus and related peer group compensation; |
■ | financial metrics of the business relative to those of appropriate peer groups; and |
■ | investment performance of portfolios: (i) relative to appropriate peer groups; and/or (ii) as measured against relevant investment indices. |
■ | elimination of the conflict; |
■ | disclosure of the conflict; or |
■ | management of the conflict through the adoption of appropriate policies, procedures or other mitigants. |
■ | Performance Fees - PGIM Fixed Income manages accounts with asset-based fees alongside accounts with performance-based fees. This side-by-side management may be deemed to create an incentive for PGIM Fixed Income and its investment professionals to favor one account over another. Specifically, PGIM Fixed Income or its affiliates could be considered to have the incentive to favor accounts for which PGIM Fixed Income or an affiliate receives performance fees, and possibly take greater investment risks in those accounts, in order to bolster performance and increase its fees. |
■ | Affiliated accounts - PGIM Fixed Income manages accounts on behalf of its affiliates as well as unaffiliated accounts. PGIM Fixed Income could be considered to have an incentive to favor accounts of affiliates over others. |
■ | Large accounts/higher fee strategies - large accounts and clients typically generate more revenue than do smaller accounts or clients and certain of PGIM Fixed Income’s strategies have higher fees than others. As a result, a portfolio manager could be considered to have an incentive when allocating scarce investment opportunities to favor accounts that pay a higher fee or generate more income for PGIM Fixed Income. |
■ | Long only and long/short accounts - PGIM Fixed Income manages accounts that only allow it to hold securities long as well as accounts that permit short selling. PGIM Fixed Income may, therefore, sell a security short in some client accounts while holding the same security long in other client accounts. These short sales could reduce the value of the securities held in the long only accounts. In addition, purchases for long only accounts could have a negative impact on the short positions. |
■ | Securities of the same kind or class - PGIM Fixed Income sometimes buys or sells for one client account securities of the same kind or class that are purchased or sold for another client at prices that may be different. PGIM Fixed Income may also, at any time, execute trades of securities of the same kind or class in one direction for an account and in the opposite direction for another account due to differences in price, investment strategy or client direction. Different strategies trading in the same securities or types of securities may appear as inconsistencies in PGIM Fixed Income’s management of multiple accounts side-by-side. |
■ | Investment at different levels of an issuer’s capital structure - PGIM Fixed Income may invest client assets in the same issuer, but at different levels in the capital structure. In the event of restructuring or insolvency, PGIM Fixed Income may exercise remedies and take other actions on behalf of the holders of senior debt that are not in the interest of, or are adverse to, other clients that are the holders of junior debt, or vice versa. |
■ | Financial interests of investment professionals - PGIM Fixed Income investment professionals may invest in certain investment vehicles that it manages, including mutual funds and private funds. Also, certain of these investment vehicles are options under the 401(k) and deferred compensation plans offered by Prudential Financial, Inc. In addition, the value of grants under PGIM Fixed Income’s long-term incentive plan and targeted long-term incentive plan is affected by the performance of certain client accounts. As a result, PGIM Fixed Income investment professionals may have financial interests in accounts managed by PGIM Fixed Income or that are related to the performance of certain client accounts. |
■ | Non-discretionary accounts - PGIM Fixed Income provides non-discretionary investment advice to some clients and manages others on a discretionary basis. Trades in non-discretionary accounts or accounts where discretion is limited could occur before, in concert with, or after PGIM Fixed Income executes similar trades in its discretionary accounts. The non-discretionary/limited discretion clients may be disadvantaged if PGIM Fixed Income delivers investment advice to them after it initiates trading for the discretionary clients, or vice versa. |
■ | Quarterly Strategy Reviews. Each quarter, the chief investment officer/head of PGIM Fixed Income holds a series of meetings with the senior portfolio managers and team responsible for the management of each of PGIM Fixed Income’s investment strategies. At each meeting, the chief investment officer/head of PGIM Fixed Income and strategy teams review and discuss the investment performance and performance attribution for each client account managed in the applicable strategy. These meetings are also typically attended by PGIM Fixed Income’s chief compliance officer or his designee and head of investment risk management or his designee. |
■ | Quarterly Senior Management Investment Review. Each quarter, the chief investment officer/head of PGIM Fixed Income reviews the investment performance and performance attribution of each of our strategies during a meeting typically attended by members of PGIM Fixed Income’s senior leadership team, chief compliance officer or his designee, head of investment risk management or his designee and senior portfolio managers. |
■ | In keeping with PGIM Fixed Income’s fiduciary obligations, its policy with respect to trade aggregation and allocation is to treat all of its client accounts fairly and equitably over time. PGIM Fixed Income’s trade management oversight committee, which generally meets quarterly, is responsible for providing oversight with respect to trade aggregation and allocation. Its compliance group periodically reviews a sampling of new issue allocations and related documentation to confirm compliance with the trade aggregation and allocation procedures. In addition, the compliance and investment risk management groups review forensic reports regarding new issue and secondary trade activity on a quarterly basis. This forensic analysis includes such data as the: (i) number of new issues allocated in the strategy; (ii) size of new issue allocations to each portfolio in the strategy; (iii) profitability of new issue transactions; and (iv) portfolio turnover. The results of these analyses are reviewed and discussed at PGIM Fixed Income’s trade management oversight committee meetings. The procedures above are designed to detect patterns and anomalies in PGIM Fixed Income’s side-by-side management and trading so that it may assess and improve its processes. |
■ | PGIM Fixed Income has procedures that specifically address its side-by-side management of long/short and long only portfolios. These procedures address potential conflicts that could arise from differing positions between long/short and long only portfolios. In addition, lending opportunities with respect to securities for which the market is demanding a slight premium rate over normal market rates are allocated to long only accounts prior to allocating the opportunities to long/short accounts. |
■ | Conflicts Arising Out of Legal Restrictions. PGIM Fixed Income may be restricted by law, regulation, contract or other constraints as to how much, if any, of a particular security it may purchase or sell on behalf of a client, and as to the timing of such purchase or sale. Sometimes these restrictions apply as a result of its relationship with Prudential Financial, Inc. and its other affiliates. For example, PGIM Fixed Income does not purchase securities issued by Prudential Financial, Inc. for client accounts. In addition, PGIM Fixed Income’s holdings of a security on behalf of its clients are required, under certain regulations, to be aggregated with the holdings of that security by other Prudential Financial, Inc. affiliates. These holdings could, on an aggregate basis, exceed certain reporting or ownership thresholds. Prudential Financial, Inc. tracks these aggregated holdings and may restrict purchases to avoid crossing such thresholds because of the potential consequences to Prudential Financial, Inc. if such thresholds are exceeded. In addition, PGIM Fixed Income could receive material, non-public information with respect to a particular issuer and, as a result, be unable to execute transactions in securities of that issuer for its clients. For example, PGIM Fixed Income’s bank loan team often invests in private bank loans in connection with which the borrower provides material, non-public information, resulting in restrictions on trading securities issued by those borrowers. PGIM Fixed Income has procedures in place to carefully consider whether to intentionally accept material, non-public information with respect to certain issuers. PGIM Fixed Income is generally able to avoid receiving material, non-public information from its affiliates and other units within PGIM by maintaining information barriers. In some instances, it may create an isolated information barrier around a small number of its employees so that material, non-public information received by such employees is not attributed to the rest of PGIM Fixed Income. |
■ | Conflicts Related to Outside Business Activity. From time to time, certain of PGIM Fixed Income employees or officers may engage in outside business activity, including outside directorships. Any outside business activity is subject to prior approval pursuant to PGIM Fixed Income’s personal conflicts of interest and outside business activities policy. Actual and potential conflicts of interest are analyzed during such approval process. PGIM Fixed Income could be restricted in trading the securities of certain issuers in client portfolios in the unlikely event that an employee or officer, as a result of outside business activity, obtains material, non-public information regarding an issuer. |
■ | Conflicts Related to Investment of Client Assets in Affiliated Funds. PGIM Fixed Income may invest client assets in funds that it manages or subadvises for an affiliate. PGIM Fixed Income may also invest cash collateral from securities lending transactions in these funds. These investments benefit both PGIM Fixed Income and its affiliate. |
■ | PICA General Account. Because of the substantial size of the general accounts of our affiliated insurance companies, trading by these general accounts, including PGIM Fixed Income’s trades on behalf of the accounts, may affect the market prices or limit the availability of the securities or instruments transacted. Although PGIM Fixed Income does not expect that the general accounts will execute transactions that will move a market frequently, and generally only in response to unusual market or issuer events, the execution of these transactions could have an adverse effect on transactions for or positions held by other clients. |
■ | PGIM Fixed Income invests in the securities of one or more clients for the accounts of other clients. |
■ | PGIM Fixed Income’s affiliates sell various products and/or services to certain companies whose securities PGIM Fixed Income purchases and sells for PGIM Fixed Income clients. |
■ | PGIM Fixed Income invests in the debt securities of companies whose equity is held by its affiliates. |
■ | PGIM Fixed Income’s affiliates hold public and private debt and equity securities of a large number of issuers and may invest in some of the same issuers for other client accounts but at different levels in the capital structure. For example: |
■ | Affiliated accounts can hold the senior debt of an issuer whose subordinated debt is held by PGIM Fixed Income’s clients or hold secured debt of an issuer whose public unsecured debt is held in client accounts. In the event of restructuring or insolvency, the affiliated accounts as holders of senior debt may exercise remedies and take other actions that are not in the interest of, or are adverse to, other clients that are the holders of junior debt. |
■ | To the extent permitted by applicable law, PGIM Fixed Income may also invest client assets in offerings of securities the proceeds of which are used to repay debt obligations held in affiliated accounts or other client accounts. PGIM Fixed Income’s interest in having the debt repaid creates a conflict of interest. PGIM Fixed Income has adopted a refinancing policy to address this conflict. |
■ | Certain of PGIM Fixed Income’s affiliates (as well as directors or officers of its affiliates) are officers or directors of issuers in which PGIM Fixed Income invests from time to time. These issuers may also be service providers to PGIM Fixed Income or its affiliates. |
■ | In addition, PGIM Fixed Income may invest client assets in securities backed by commercial mortgage loans that were originated or are serviced by an affiliate. |
Securities Lending Activities | |
Gross income from securities lending activities | $0 |
Fees and/or compensation for securities lending activities and related services | $0 |
Fees paid to securities lending agent from a revenue split | $0 |
Fees paid for any cash collateral management service (including fees deducted from a pooled cash collateral reinvestment vehicle) | $0 |
Administrative fees not included in revenue split | $0 |
Indemnification fee not included in revenue split | $0 |
Rebate (paid to borrower) | $0 |
Other fees not included in revenue split (specify) | $0 |
Aggregate fees/compensation for securities lending activities | $0 |
Net income from securities lending activities | $0 |
Fees Paid to PMFS* | |
Amount | |
$272 |
Payments Received by the Distributor | |
CLASS A CONTINGENT DEFERRED SALES CHARGES (CDSC) | $0 |
CLASS A DISTRIBUTION AND SERVICE (12B-1) FEES | $102 |
CLASS A INITIAL SALES CHARGES | $980 |
CLASS C CONTINGENT DEFERRED SALES CHARGES (CDSC) | $0 |
CLASS C DISTRIBUTION AND SERVICE (12B-1) FEES | $113 |
Amounts Spent by Distributor | ||||
Share Class | Printing & Mailing Prospectuses to Other than Current Shareholders | Compensation to Broker/Dealers for Commissions to Representatives and Other Expenses* | Overhead Costs** | Total Amount Spent |
CLASS A | $0 | $100 | $13 | $113 |
CLASS C | $0 | $126 | $5 | $131 |
■ | Prudential Retirement |
■ | Wells Fargo Advisors, LLC |
■ | Ameriprise |
■ | Charles Schwab & Co., Inc. |
■ | Merrill Lynch Pierce Fenner & Smith Inc. |
■ | Morgan Stanley Smith Barney |
■ | Raymond James |
■ | Fidelity |
■ | UBS Financial Services Inc. |
■ | LPL Financial |
■ | GWFS Equities, Inc. |
■ | Principal Life Insurance Company |
■ | Commonwealth Financial Network |
■ | Cetera |
■ | MSCS Financial Services |
■ | Nationwide Financial Services Inc. |
■ | American United Life Insurance Company |
■ | ADP Broker-Dealer, Inc. |
■ | Voya Financial |
■ | Massachusetts Mutual |
■ | PNC |
■ | John Hancock |
■ | AIG Advisor Group |
■ | Ascensus |
■ | MidAtlantic Capital Corp. |
■ | Edward Jones |
■ | Hartford Life |
■ | Alight Solutions LLC |
■ | TIAA Cref |
■ | Standard Insurance Company |
■ | Lincoln Retirement Services Company LLC |
■ | Reliance Trust Company |
■ | T. Rowe Price Retirement Plan Services |
■ | TD Ameritrade Trust Company |
■ | Securities America, Inc. |
■ | Cambridge |
■ | Northwestern |
■ | RBC Capital Markets Corporation |
■ | Vanguard Group, Inc. |
■ | VALIC Retirement Services Company |
■ | The Ohio National Life Insurance Company |
■ | Sammons Retirement Solutions, Inc. |
■ | Conduent HR Services LLC |
■ | Genworth |
■ | Security Benefit Life Insurance Company |
■ | Citigroup |
■ | Newport Retirement Plan Services, Inc. |
■ | Janney Montgomery & Scott, Inc. |
■ | Transamerica |
■ | Mercer HR Services, LLC |
■ | Securities Service Network |
■ | Triad Advisors Inc. |
■ | KMS Financial Services |
■ | Northern Trust |
■ | Investacorp |
■ | Oppenheimer & Co. |
■ | United Planners Financial Services of America |
■ | 1st Global Capital Corp. |
■ | AXA Equitable Life Insurance Company |
■ | BPAS |
■ | National Security Life |
Class A | |
NAV and redemption price per Class A share | $9.48 |
Maximum initial sales charge (4.50% of public offering price) | $0.45 |
Maximum offering price to public | $9.93 |
Class C | |
NAV, offering price and redemption price per Class C share | $9.48 |
Class Z | |
NAV, offering price and redemption price per Class Z share | $9.48 |
Class R6 | |
NAV, offering price and redemption price per Class R6 share | $9.48 |
Brokerage Commissions Paid by the Fund ($) | |||
2018* | 2017 | 2016 | |
Total brokerage commissions paid by the Fund | $2,846 | N/A | N/A |
Broker-Dealer Securities Holdings ($) | ||
Equity or Debt | Amount | |
CITIGROUP GLOBAL MARKETS, INC. | Debt | $247,713 |
CREDIT SUISSE SECURITIES (USA) LLC | Debt | $62,853 |
DEUTSCHE BANK SECURITIES, INC. | Debt | $195,018 |
GOLDMAN SACHS & CO. | Debt | $121,990 |
MORGAN STANLEY & CO. LLC | Debt | $207,976 |
PGIM Global Total Return Fund Class B common stock: 50 million shares
PGIM Global Total Return Fund Class C common stock: 320 million shares
PGIM Global Total Return Fund Class R6 common stock: 475 million shares
PGIM Global Total Return Fund Class Z common stock: 650 million shares
PGIM Global Total Return Fund Class T common stock: 125 million shares
PGIM Global Total Return Fund Class R2 common stock: 90 million shares
PGIM Global Total Return Fund Class R4 common stock: 90 million shares
PGIM Global Total Return (USD Hedged) Fund Class C common stock: 300 million shares
PGIM Global Total Return (USD Hedged) Fund Class R6 common stock: 400 million shares
PGIM Global Total Return (USD Hedged) Fund Class Z common stock: 600 million shares
Principal Fund Shareholders as of January 04, 2019 | |||
Fund Name and Share Class | Shareholder Name and Address | Share Class | No. of Shares/ % of Fund |
PGIM GLOB TOT RTN USD HDGD CL A | PHILIP N SCARIA ACHAMMA SCARIA JTWROS 1301 DARIEN CLUB DR DARIEN IL 60561-3671 | 3,642.769 | 47.42% |
PGIM GLOB TOT RTN USD HDGD CL A | CHARLES SCHWAB & CO SPECIAL CUSTODY ACCT FBO CUSTOMERS ATTN MUTUAL FUNDS 101 MONTGOMERY ST SAN FRANCISCO CA 941044122 | 2,092.865 | 27.24% |
PGIM GLOB TOT RTN USD HDGD CL A | PRUDENTIAL INVESTMENT MGMT INC PRUDENTIAL INVESTMENTS FUND MANAGMENT LLC ATTN ROBERT MCHUGH 655 BROAD ST 19TH FLOOR 08-19-24 NEWARK NJ 07102-4410 | 1,058.785 | 13.78% |
PGIM GLOB TOT RTN USD HDGD CL A | PERSHING LLC 1 PERSHING PLAZA JERSEY CITY NJ 07399-0002 | 665.440 | 8.66% |
PGIM GLOB TOT RTN USD HDGD CL C | PRUDENTIAL INVESTMENT MGMT INC PRUDENTIAL INVESTMENTS FUND MANAGMENT LLC ATTN ROBERT MCHUGH 655 BROAD ST 19TH FLOOR 08-19-24 NEWARK NJ 07102-4410 | 1,050.465 | 56.38% |
PGIM GLOB TOT RTN USD HDGD CL C | PERSHING LLC 1 PERSHING PLAZA JERSEY CITY NJ 07399-0002 | 812.590 | 43.62% |
PGIM GLOB TOT RTN USD HDGD CL Z | MICHAEL K LILLARD AMY L LILLARD JTWROS 301 CHRISTOPHER DR PRINCETON NJ 08540-2323 | 15,902.564 | 89.01% |
PGIM GLOB TOT RTN USD HDGD CL Z | PRUDENTIAL INVESTMENT MGMT INC PRUDENTIAL INVESTMENTS FUND MANAGMENT LLC ATTN ROBERT MCHUGH 655 BROAD ST 19TH FLOOR 08-19-24 NEWARK NJ 07102-4410 | 1,061.480 | 5.94% |
PGIM GLOB TOT RTN USD HDGD CL R6 | PIM INVESTMENTS INC ATTN ROBERT MCHUGH 655 BROAD ST 19TH FLOOR 08-19-24 NEWARK NJ 07102-4410 | 2,655,053.770 | 99.96% |
Control Persons (as of January 04, 2019) | |||
Fund Name | Shareholder Name and Address | No. of Shares | % of Voting Securities |
PGIM GLOB TOT RTN USD HDGD | PIM INVESTMENTS INC ATTN ROBERT MCHUGH 655 BROAD ST 19TH FLOOR 08-19-24 NEWARK NJ 07102-4410 | 2,655,053.770 | 98.94% |
■ | After a shareholder is deceased or permanently disabled (or, in the case of a trust account, after the death or disability of the grantor). This waiver applies to individual shareholders as well as shares held in joint tenancy, provided the shares were purchased before the death or permanent disability, |
■ | To provide for certain distributions—made without IRS penalty—from a qualified or tax-deferred retirement plan, benefit plan, IRA or Section 403(b) custodial account, |
■ | To withdraw excess contributions from a qualified or tax-deferred retirement plan, IRA or Section 403(b) custodial account, and |
■ | On certain redemptions effected through a Systematic Withdrawal Plan (Class B shares only). |
■ | A request for release of portfolio holdings shall be prepared setting forth a legitimate business purpose for such release which shall specify the Fund(s), the terms of such release, and frequency (e.g., level of detail, staleness). Such request shall address whether there are any conflicts of interest between the Fund and the investment adviser, subadviser, principal underwriter or any affiliated person thereof and how such conflicts shall be dealt with to demonstrate that the disclosure is in the best interest of the shareholders of the Fund(s). |
■ | The request shall be forwarded to PGIM Investments’ Product Development Group and to the Chief Compliance Officer or his delegate for review and approval. |
■ | A confidentiality agreement in the form approved by a Fund officer must be executed by the recipient of the portfolio holdings. |
■ | A Fund officer shall approve the release and the agreement. Copies of the release and agreement shall be sent to PGIM Investments’ Law Department. |
■ | Written notification of the approval shall be sent by such officer to PGIM Investments’ Fund Administration Group to arrange the release of portfolio holdings. |
■ | PGIM Investments’ Fund Administration Group shall arrange the release by the Custodian Bank. |
■ | Full holdings on a daily basis to Institutional Shareholder Services (ISS), Broadridge and Glass, Lewis & Co. (proxy voting administrator/agents) at the end of each day; |
■ | Full holdings on a daily basis to ISS (securities class action claims administrator) at the end of each day; |
■ | Full holdings on a daily basis to a Fund's Subadviser(s), Custodian Bank, sub-custodian (if any) and accounting agents (which includes the Custodian Bank and any other accounting agent that may be appointed) at the end of each day. When a Fund has more than one Subadviser, each Subadviser receives holdings information only with respect to the “sleeve” or segment of the Fund for which the Subadviser has responsibility; |
■ | Full holdings on a daily basis to eSecLending (securities lending agent) at the end of each day; |
■ | Full holdings to a Fund's independent registered public accounting firm as soon as practicable following the Fund's fiscal year-end or on an as-needed basis; |
■ | Full holdings to a Fund’s counsel on an as-needed basis; |
■ | Full holdings to counsel of a Fund’s independent board members on an as-needed basis; and |
■ | Full holdings to financial printers as soon as practicable following the end of a Fund's quarterly, semi-annual and annual period-ends. |
■ | Fund trades on a quarterly basis to Abel/Noser Corp. (an agency-only broker and transaction cost analysis company) as soon as practicable following a Fund's fiscal quarter-end; |
■ | Full holdings on a daily basis to FactSet Research Systems, Inc. (investment research provider) at the end of each day; |
■ | Full holdings on a daily basis to FT Interactive Data (a fair value information service) at the end of each day; |
■ | Full holdings on a quarterly basis to Frank Russell Company (investment research provider) when made available ; |
■ | Full holdings on a monthly basis to Fidelity Advisors (wrap program provider) approximately five days after the end of each month (PGIM Jennison Growth Fund and certain other selected PGIM Funds only); |
■ | Full holdings on a daily basis to ICE (InterContinental Exchange), IHS Markit and Thompson Reuters (securities valuation); |
■ | Full holdings on a daily basis to Standard & Poor’s Corporation (securities valuation); |
■ | Full holdings on a monthly basis to FX Transparency (foreign exchange/transaction analysis) when made available. |
■ | Leading market positions in well-established industries. |
■ | High rates of return on funds employed. |
■ | Conservative capitalization structure with moderate reliance on debt and ample asset protection. |
■ | Broad margins in earnings coverage of fixed financial charges and high internal cash generation. |
■ | Well-established access to a range of financial markets and assured sources of alternate liquidity. |
■ | Amortization schedule-the longer the final maturity relative to other maturities the more likely it will be treated as a note. |
■ | Source of payment-the more dependent the issue is on the market for its refinancing, the more likely it will be treated as a note. |
Name and Principal Business Address | Positions and Offices with Underwriter | Positions and Offices with Registrant | ||
Adam Scaramella (1) | President | N/A | ||
Gary F. Neubeck (2) | Executive Vice President | N/A | ||
Stuart S. Parker (2) | Executive Vice President | Board Member and President | ||
James Gemus (2) | Executive Vice President | N/A | ||
Scott E. Benjamin (2) | Vice President | Board Member and Vice President | ||
Francine Boucher (1) | Senior Vice President, Chief Legal Officer and Secretary | N/A | ||
Peter J. Boland (2) | Senior Vice President and Chief Operating Officer | N/A | ||
John N. Christolini (3) | Senior Vice President | N/A | ||
Mark R. Hastings (2) | Senior Vice President and Chief Compliance Officer | N/A | ||
Robert Smit (2) | Senior Vice President, Comptroller and Chief Financial Officer | N/A | ||
Hansjerg Schlenker (2) | Senior Vice President and Chief Operations Officer | N/A | ||
Monica Oswald (3) | Senior Vice President and Co-Chief Operations Officer | N/A | ||
Charles Smith (4) | Vice President and Anti-Money Laundering Officer | Anti-Money Laundering Compliance Officer |
(1) | 213 Washington Street, Newark, NJ 07102 |
(2) | 655 Broad Street, Newark, NJ 07102 |
(3) | 280 Trumbull Street, Hartford, CT 06103 |
(4) | 751 Broad Street, Newark NJ, 07102 |
Prudential Global Total Return Fund, Inc. |
* |
Stuart S. Parker, President |
Signature | Title | Date | ||
* Ellen S. Alberding | Director | |||
* Kevin J. Bannon | Director | |||
* Scott E. Benjamin | Director | |||
* Linda W. Bynoe | Director | |||
* Barry H. Evans | Director | |||
* Keith F. Hartstein | Director | |||
* Laurie Simon Hodrick | Director | |||
* Michael S. Hyland | Director | |||
* Stuart S. Parker | Director and President, Principal Executive Officer | |||
* Brian K. Reid | Director | |||
* Grace C. Torres | Director | |||
* Christian J. Kelly | Treasurer, Principal Financial and Accounting Officer | |||
*By: /s/ Jonathan D. Shain Jonathan D. Shain | Attorney-in-Fact | January 29, 2019 |
/s/ Ellen S. Alberding Ellen S. Alberding | /s/ Michael S. Hyland Michael S. Hyland |
/s/ Kevin J. Bannon Kevin J. Bannon | /s/ Brian D. Nee Brian D. Nee |
/s/ Scott E. Benjamin Scott E. Benjamin | /s/ Stuart S. Parker Stuart S. Parker |
/s/ Linda W. Bynoe Linda W. Bynoe | /s/ Richard A. Redeker Richard A. Redeker |
/s/ Barry H. Evans Barry H. Evans | /s/ Brian K. Reid Brian K. Reid |
/s/ Keith F. Hartstein Keith F. Hartstein | /s/ Grace C. Torres Grace C. Torres |
/s/ Laurie Simon Hodrick Laurie Simon Hodrick | |
Dated: September 20, 2018 |
The Prudential Investment Portfolios, Inc.
Prudential Investment Portfolios 2
Prudential Investment Portfolios 3
Prudential Investment Portfolios Inc. 14
Prudential Investment Portfolios 4
Prudential Investment Portfolios 5
Prudential Investment Portfolios 6
Prudential National Muni Fund, Inc.
Prudential Jennison Blend Fund, Inc.
Prudential Jennison Mid-Cap Growth Fund, Inc.
Prudential Investment Portfolios 7
Prudential Investment Portfolios 8
Prudential Jennison Small Company Fund, Inc.
Prudential Investment Portfolios 9
Prudential World Fund, Inc.
Prudential Investment Portfolios, Inc. 10
Prudential Jennison Natural Resources Fund, Inc.
Prudential Global Total Return Fund, Inc.
Prudential Investment Portfolios 12
Prudential Investment Portfolios, Inc. 15
Prudential Investment Portfolios 16
Prudential Investment Portfolios, Inc. 17
Prudential Investment Portfolios 18
Prudential Sector Funds, Inc.
Prudential Short-Term Corporate Bond Fund, Inc.
The Target Portfolio Trust
The Prudential Variable Contract Account-2
The Prudential Variable Contract Account-10
PGIM ETF Trust
/s/ Christian J. Kelly Christian J. Kelly |
Dated: December 20, 2018 |
The Prudential Investment Portfolios, Inc.
Prudential Investment Portfolios 2
Prudential Investment Portfolios 3
Prudential Investment Portfolios Inc. 14
Prudential Investment Portfolios 4
Prudential Investment Portfolios 5
Prudential Investment Portfolios 6
Prudential National Muni Fund, Inc.
Prudential Jennison Blend Fund, Inc.
Prudential Jennison Mid-Cap Growth Fund, Inc.
Prudential Investment Portfolios 7
Prudential Investment Portfolios 8
Prudential Jennison Small Company Fund, Inc.
Prudential Investment Portfolios 9
Prudential World Fund, Inc.
Prudential Investment Portfolios, Inc. 10
Prudential Jennison Natural Resources Fund, Inc.
Prudential Global Total Return Fund, Inc.
Prudential Investment Portfolios 12
Prudential Investment Portfolios, Inc. 15
Prudential Investment Portfolios 16
Prudential Investment Portfolios, Inc. 17
Prudential Investment Portfolios 18
Prudential Sector Funds, Inc.
Prudential Short-Term Corporate Bond Fund, Inc.
The Target Portfolio Trust
The Prudential Variable Contract Account-2
The Prudential Variable Contract Account-10
PGIM ETF Trust
Item 28 Exhibit No. | Description | |
(d)(8) | Expense Cap for PGIM Global Total Return (USD Hedged) Fund. | |
(j) | Consent of independent registered public accounting firm. |
PGIM Investments LLC
655 Broad Street – 17th Floor
Newark, New Jersey 07102
November 1, 2018
The Board of Directors
Prudential Global Total Return Fund, Inc.
655 Broad Street—17th Floor
Newark, New Jersey 07102
Re: PGIM Global Total Return (USD Hedged) Fund (the Fund)
To the Board of Directors:
PGIM Investments LLC (PGIM Investments) has contractually agreed, through February 29, 2020, to limit Total Annual Fund Operating Expenses after fee waivers and/or expense reimbursements to 0.88% of average daily net assets for Class A shares, 1.63% of average daily net assets for Class C shares, 0.63% of average daily net assets for Class Z shares, and 0.58% of average daily net assets for Class R6 shares. This contractual 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, PGIM Investments agrees to waive management fees or shared operating expenses on any share class to the same extent that it waives similar expenses on any other share class. In addition, Total Annual Fund Operating Expenses for Class R6 shares will not exceed Total Annual Fund Operating Expenses for Class Z shares. Fees and/or expenses waived and/or reimbursed by PGIM Investments may be recouped by PGIM Investments 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 recoupment for that fiscal year. This waiver may not be terminated prior to February 29, 2020 without the prior approval of the Fund’s Board of Directors.
Very truly yours,
PGIM INVESTMENTS LLC
By:/s/ Scott E. Benjamin
Name:Scott E. Benjamin
Title:Executive Vice President
Consent of Independent Registered Public Accounting Firm
The Board of Directors
Prudential Global Total Return Fund, Inc.:
We consent to the use of our report, dated December 18, 2018, with respect to the financial statements and financial highlights of PGIM Global Total Return (USD Hedged) Fund, a series of Prudential Global Total Return Fund, Inc., as of October 31, 2018, and for the respective period then ended presented therein, incorporated by reference herein. We also consent to the references to our firm under the headings “Financial Highlights” in the prospectus and “Other Service Providers – Independent Registered Public Accounting Firm” and “Financial Statements” in the statement of additional information.
New York, New York
January 25, 2019
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