PGIM Real Assets Fund
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A: PUDAX
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C: PUDCX
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Z: PUDZX
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R6: PUDQX
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SUMMARY PROSPECTUS | February 15, 2024
Before you invest, you may want to review the Fund's Prospectus, which contains more
information about the Fund and its risks. You can find the Fund's Prospectus, Statement of Additional Information (“SAI”), Annual Report and other information about the Fund online at www.pgim.com/investments. You can also get this information at no cost by calling
1-800-225-1852 or by sending an e-mail to: prospectus@pgim.com. The Fund's Prospectus and SAI, both dated February 15, 2024,
as supplemented and amended from time to time, and
the Fund's Annual Report, dated October 31, 2023, are all incorporated by reference into (legally made a part
of) this Summary Prospectus.
INVESTMENT OBJECTIVE
The investment objective of the Fund is to seek long-term real return.
FUND FEES AND EXPENSES
The tables below describe the sales charges, fees and expenses that you may pay if
you buy, hold, and sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below. You may be required to pay commissions
to a broker for transactions in Class Z shares, which are not reflected in the table or the example below. You may qualify for sales charge discounts if you and an eligible group of related investors purchase, or agree to purchase in the future,
$25,000 or more in shares of the Fund or other funds in the PGIM Funds family. More information about these discounts as well as other waivers or discounts is available from your financial professional and is explained in Reducing or Waiving Class A's and Class C’s Sales Charges on page 42 of the Fund's Prospectus, Appendix A: Waivers and Discounts Available From Certain Financial Intermediaries on page 62 of the Fund's Prospectus and in Rights of Accumulation on page 60 of the Fund's Statement of Additional Information (“SAI”).
Shareholder Fees (fees paid directly from your investment)
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Class A
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Class C
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Class Z
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Class R6
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Maximum sales charge (load) imposed on purchases (as a percentage of offering price)
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5.50%
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None
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None
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None
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Maximum deferred sales charge (load) (as a percentage of the lower of the original
purchase price or the net asset value at
redemption)
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1.00%*
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1.00%**
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None
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None
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Maximum sales charge (load) imposed on reinvested dividends and other distributions
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None
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None
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None
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None
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Redemption fee
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None
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None
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None
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None
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Exchange fee
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None
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None
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None
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None
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Maximum account fee (accounts under $10,000)
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$15
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$15
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None***
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None
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*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%, although they are not subject to an initial sales charge. The CDSC is waived
for certain retirement and/or benefit plans.
**Class C shares are sold with a CDSC of 1.00% on sales made within 12 months of purchase.
***Direct Transfer Agent Accounts holding under $10,000 of Class Z shares are subject
to the $15 fee.
Annual Fund Operating Expenses (expenses that you pay each year as a percentage of
the value of your investment)
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Class A
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Class C
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Class Z
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Class R6
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Management fee(1)
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0.63%
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0.63%
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0.63%
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0.63%
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Distribution and service (12b-1) fees
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0.30%
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1.00%
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None
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None
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Other expenses
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0.47%
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0.59%
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0.37%
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0.23%
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Acquired Fund fees and expenses(2)
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0.94%
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0.94%
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0.94%
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0.94%
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Total annual Fund operating expenses
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2.34%
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3.16%
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1.94%
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1.80%
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Fee waiver and/or expense reimbursement
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(0.83)%
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(0.93)%
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(0.73)%
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(0.73)%
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Total annual Fund operating expenses after fee waiver and/or expense reimbursement(3,4)
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1.51%
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2.23%
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1.21%
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1.07%
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(1) Includes management fees of 0.60% of the average daily net assets of PGIM Real Assets Subsidiary, Ltd., the Fund’s wholly-owned Cayman Islands subsidiary (the “Cayman Subsidiary”) (0.04% of the daily net assets of the Fund, including the Cayman Subsidiary).
(2) Includes tax expense, if any, related to the underlying PGIM Jennison MLP Fund.
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
MF207A
(3) PGIM Investments LLC (“PGIM Investments”) has contractually agreed through February 28, 2025 to limit net annual operating
expenses and acquired fund fees and expenses (exclusive of distribution and service (12b-1) fees, shareholder service fee, interest, dividend
and interest expense on short sales (including acquired fund dividend and interest
expense on short sales), brokerage, taxes (such as income and foreign withholding taxes, stamp duty
and deferred tax expenses (including acquired fund taxes)), transfer agency expenses
(including sub-transfer agency and networking fees), and extraordinary expenses) of each class of shares to 0.85% of the Fund’s average daily net assets. Where applicable, PGIM Investments agrees to waive management fees or shared operating expenses on any share class to
the same extent that it waives such expenses on any other share class. In addition,
Total Annual 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 for the purpose of preventing the expenses from exceeding a certain expense
ratio limit 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 28, 2025 without the prior approval of the Fund’s Board of Trustees. Separately, PGIM Investments has contractually agreed to waive any management fees it receives from the Fund in an amount equal to the management fees paid by the
Cayman Subsidiary. This waiver will remain in effect for as long as the Fund remains
invested or intends to invest in the Cayman Subsidiary.
(4) The distributor of the Fund has contractually agreed until February 28, 2025 to reduce
its distribution and service (12b-1) fees applicable to Class A shares to 0.25% of
the average daily net assets of Class A shares. This waiver may not be terminated prior to February 28, 2025 without the prior approval of the Fund’s Board of Trustees.
Example. The following hypothetical example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. It assumes that you invest $10,000 in the
Fund for the time periods indicated and then, except as indicated, redeem all your shares at the end of those periods. It
assumes a 5% return on your investment each year, that the Fund's operating expenses remain the same (except that fee waivers
or reimbursements, if any, are only reflected in the 1-Year figures) and that all dividends and distributions are reinvested.
Your actual costs may be higher or lower.
If Shares Are Redeemed
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Share Class
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1 Year
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3 Years
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5 Years
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10 Years
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Class A
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$695
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$1,165
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$1,660
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$3,019
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Class C
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$326
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$888
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$1,574
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$3,212
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Class Z
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$123
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$538
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$979
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$2,205
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Class R6
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$109
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$495
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$907
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$2,056
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If Shares Are Not Redeemed
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Share Class
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1 Year
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3 Years
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5 Years
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10 Years
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Class A
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$695
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$1,165
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$1,660
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$3,019
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Class C
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$226
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$888
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$1,574
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$3,212
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Class Z
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$123
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$538
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$979
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$2,205
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Class R6
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$109
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$495
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$907
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$2,056
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Portfolio Turnover. The Fund pays transaction costs, such as commissions, when it buys and sells securities
(or “turns over” its portfolio). A higher portfolio turnover rate may indicate higher transaction
costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in
annual fund operating expenses or in the example, affect the Fund's performance. During the Fund's most recent fiscal year,
the Fund's portfolio turnover rate was 42% of the average value of its portfolio.
INVESTMENTS, RISKS AND PERFORMANCE
Principal Investment Strategies. The Fund seeks to achieve its investment objective by investing primarily in real
assets that may perform well in periods of high inflation. Real return is the rate of return after
adjusting for inflation. Under normal circumstances, the Fund invests at least 80% of its investable assets in investments
offering exposure to real assets. Real assets include interests in: commodities, real estate, utilities and infrastructure
stocks, natural resource stocks, fixed income instruments (including Treasury Inflation-Protected Securities (“TIPS”); master limited partnerships (“MLPs”); gold-related securities and other defensive assets; derivatives on each of these interests; and
other assets that have intrinsic value due to their physical properties. The Fund may focus its investments in particular types
of real assets and is not required to diversify among different categories of real assets. The term “investable assets” refers to the Fund's net assets plus any borrowings for investment purposes. The Fund's investable assets will be less than
its total assets to the extent that it has borrowed money for non-investment purposes, such as to meet anticipated redemptions.
The Fund gains exposure to the real asset classes by investing in varying combinations
of other PGIM mutual funds (the “Underlying Funds”); the Cayman Subsidiary; and direct investments in securities (such as equity and
equity-related securities, including common stock, convertible securities, nonconvertible preferred
stock, American Depositary Receipts, warrants and other rights that can be exercised to obtain stock, preferred stocks,
affiliated and unaffiliated exchange-traded funds (“ETFs”), notes and bonds and certain financial and derivative instruments, including futures).
The Fund’s asset allocation strategy is determined by the Fund’s subadviser. The subadviser utilizes a dynamic asset allocation strategy among the real asset classes to seek to provide attractive risk
adjusted real return. The subadviser utilizes a dynamic asset allocation process that makes tactical allocation decisions based
on portfolio management judgment which incorporates factors such as current market and economic conditions, risk, and valuation.
This analyzes the momentum of asset class prices, their volatility and their correlations to each other and adapts
the asset class allocations to reflect the current market environment. Finally, the subadviser’s portfolio managers overlay their judgment over the analysis to incorporate data and information that they believe may also impact future asset class
returns.
The subadviser may tactically adjust the asset allocation ranges among the real asset
classes within the following approximate ranges: commodities (0% to 50%), real estate (0% to 50%), utilities/infrastructure
(0% to 40%), natural resources (0% to 40%), fixed income (0% to 60%), MLPs (0% to 20%), and gold/defensive
(0% to 40%). Additionally, the Fund’s investments in the Underlying Funds may range from 0% to 100% of the Fund’s assets. As of October 31, 2023, the Fund’s assets were allocated approximately to each asset class as follows: commodities (19.45%), real estate (21.67%), utilities/infrastructure (9.24%), natural resources (7.84%), fixed income (25.67%),
MLPs (13.27%), gold/defensive (1.64%) and cash (1.21%).
Real Estate, Utilities/Infrastructure, Natural Resources, MLPs, Commodities and Fixed
Income Asset Classes. The Fund invests in the shares of the Underlying Funds named in the section entitled “More About the Fund's Principal and Non-Principal Investment Strategies, Investments and Risks” to obtain exposure to real estate, utilities/infrastructure, natural resources,
MLPs, commodities and fixed income. Each Underlying Fund invests primarily in securities
or other instruments suggested by such Underlying Fund's name. Each of the Underlying Funds is managed by the Fund’s manager and subadvised by its affiliates.
Gold/Defensive Asset Class. The Fund gains exposure to the gold/defensive asset class through investment of the Fund’s assets directly or in the Cayman Subsidiary. The subadviser manages the Fund’s assets that are allocated to the gold/defensive asset class. The objective of the gold/defensive asset class is to
provide exposure to gold-related securities and other defensive assets. To obtain the desired gold exposure, the subadviser may invest the Fund’s assets that are allocated to this asset class in a portfolio of relatively large, liquid gold mining
stocks, most of which are included in the NYSE Arca Gold Miners Index. To reduce the equity exposure associated with these stocks,
the gold/defensive asset class may obtain exposure to the Chicago Board Options Exchange Volatility Index (“VIX”) and cash or cash equivalents. The VIX measures the implied volatility (i.e., estimated future volatility) of the S&P 500
Index options. The Fund may also invest in ETFs, swaps, futures contracts and other derivatives and/or exchange traded notes
(“ETNs”). The subadviser also may invest through the Cayman Subsidiary in gold-related derivatives that would otherwise
generate non-qualifying income for purposes of the Internal Revenue Code of 1986, as amended (the “Code”) (e.g., gold futures).
Principal Risks. All investments have risks to some degree. The value of your investment in the Fund,
as well as the amount of return you receive on your investment, may fluctuate significantly from
day-to-day and over time.
You may lose part or all of your investment in the Fund or your investment may not
perform as well as other similar investments.
An investment in the Fund is not guaranteed to achieve its investment objective; is
not a deposit with a bank; and is not insured, endorsed or guaranteed by the Federal Deposit Insurance Corporation or any
other government agency. The following is a summary description of principal risks of investing in the Fund.
The order of the below risk factors does not indicate the significance of any particular
risk factor.
Set forth below is a description of the principal risks associated with an investment
in the Fund either through direct investments or indirectly through the Fund’s investments in the Underlying Funds.
Affiliated Funds Risk. The Fund's manager serves as the manager of the Underlying Funds. It is possible
that a conflict of interest among the Fund and the Underlying Funds could impact the manager and the
subadviser. Because the amount of the investment management fees to be retained by the manager and the subadviser may
differ depending upon the Underlying Funds in which the Fund invests, there is a conflict of interest for the
manager and the subadviser in selecting the Underlying Funds. In addition, the manager and the subadviser may have an incentive
to take into account the effect on an Underlying Fund in which the Fund may invest in determining whether, and under
what circumstances, to purchase or sell shares in that Underlying Fund. Although the manager and the subadviser take
steps to address the conflicts of interest, it is possible that the conflicts could impact the Fund. In addition, the subadviser
may invest in Underlying Funds that have a limited or no performance history.
Asset Allocation Risk. Asset allocation risk is the risk that the Fund’s assets may be allocated to an asset class that underperforms other asset classes. For example, the Fund may be overweight in equities
when the stock market is falling and the fixed income market is rising. Likewise, the Fund may be overweight in fixed
income securities when fixed income markets are falling and the equity markets are rising. Allocations to underperforming
or volatile asset classes or other changes in asset allocations could lead to increased volatility in the Fund’s portfolio.
Asset Class Variation Risk. The Underlying Funds invest principally in the securities constituting their asset
class. However, an Underlying Fund may vary the percentage of its assets in these securities (subject
to any applicable regulatory requirements). Depending upon the percentage of securities in a particular asset class
held by the Underlying Funds at any given time and the percentage of the Fund’s assets invested in the Underlying Funds, the Fund’s actual exposure to the securities in a particular asset class may vary substantially from its allocation
to that asset class.
Cayman Subsidiary Risk. By investing in the Cayman Subsidiary, the Fund is indirectly exposed to the risks
associated with the Cayman Subsidiary’s investments. The Cayman Subsidiary is not registered as an investment company under the 1940 Act, and, unless otherwise noted in this Prospectus, is not subject to all the investor
protections of the 1940 Act. The Fund has received a private letter ruling from the Internal Revenue Service stating that income derived from the Fund’s investment in the Cayman Subsidiary will be considered qualifying regulated investment
company income for tax purposes. Final tax regulations, on which taxpayers may rely for taxable years beginning after
September 28, 2016, also support this result. Changes in the laws of the Cayman Islands, under which the Cayman Subsidiary
is incorporated, could result in the inability of the Fund to effect its desired gold/defensive investment strategy.
Commodity Risk. The values of commodities and commodity-linked investments are affected by events
that might have less impact on the value of stocks and bonds. Such investments may be speculative. Prices
of commodities and related contracts may fluctuate significantly over short periods for a variety of reasons,
including weather, crop or livestock disease, investment speculation, resource availability, fluctuations in industrial and commercial
supply and demand, U.S. agricultural, fiscal, monetary and exchange control programs, embargoes, tariffs,
and international political, economic, military and regulatory developments. These risks may subject the Fund to greater
volatility than investments in traditional instruments or securities. In addition, the commodities markets are subject to temporary
distortions or other disruptions due to a variety of factors, including participation of speculators, government intervention
and regulation, and certain lack of liquidity in the markets.
Commodity-Linked Notes Risk. The Fund may invest in leveraged or unleveraged commodity-linked notes (“CLNs”) to gain exposure to the commodities markets. CLNs are subject to counterparty risk. The value
of the CLNs may fluctuate significantly because the values of the investments to which they are linked are volatile.
In addition, the terms of a CLN may create economic leverage by requiring payment by the issuer of an amount that is a
multiple of the price increase or decrease of the underlying commodity, commodity index or other economic variable.
Economic leverage increases the volatility of CLNs and their value may increase or decrease more quickly than the
value of the underlying commodity, commodity index or other economic variable.
Commodity Regulatory Risk. The Fund is deemed a “commodity pool” and the manager is considered a “commodity pool operator” with respect to the Fund under the Commodity Exchange Act. The manager, directly
or through its affiliates, is therefore subject to dual regulation by the Securities and Exchange Commission and
the Commodity Futures Trading Commission. The regulatory requirements governing the use of commodity futures (which
include futures on broad-based securities indexes, interest rate futures and currency futures), options on commodity
futures, certain swaps or certain other investments could change at any time.
Credit Risk/Counterparty Risk. The ability, or perceived ability, of the issuer or guarantor of a debt security,
or the counterparty (the party on the other side of the transaction) to a derivatives contract
or other financial contract to meet its financial obligations will affect the value of the security or derivative. Counterparty
and credit risk are especially important in the context of privately negotiated instruments. The Fund expects to enter into certain
privately negotiated agreements where the counterparty assumes the physical settlement obligations of the Fund under
such transactions. Under this type of arrangement, there is a risk that the relevant counterparty or intermediary would,
due to insolvency or other reasons, be unable to or fail to assume the physical settlement obligations of the Fund, in which
case the Fund could be required to sell portfolio instruments at unfavorable times or prices or could have insufficient assets
to satisfy its physical settlement obligations.
Credit ratings are intended to provide a measure of credit risk. However, credit ratings
are only the opinions of the credit rating agency issuing the ratings and are not guarantees as to quality. The lower
the rating of a debt security held by the Fund, the greater the degree of credit risk that is perceived to exist by the credit
rating agency with respect to that security. Increasing the amount of Fund assets allocated to lower-rated securities generally
will increase the credit risk to which the Fund is subject. Not all securities in which the Fund invests are rated. The lower the credit quality of a bond, the more sensitive it is to credit risk.
Currency Risk. The Fund's net asset value could decline as a result of changes in exchange rates,
which could adversely affect the Fund’s investments in currencies, or in securities that trade in, and receive revenues related to, currencies, or in derivatives that provide exposure to currencies. Certain foreign countries may impose
restrictions on the ability of issuers of foreign securities to make payment of principal and interest or dividends to investors
located outside the country, due to blockage of foreign currency exchanges or otherwise.
Debt Obligations Risk. Debt obligations are subject to credit risk, market risk and interest rate risk.
The Fund's holdings, share price, yield and total return may also fluctuate in response to bond market
movements. The value of bonds may decline for issuer-related reasons, including management performance, financial leverage
and reduced demand for the issuer’s goods and services. Certain types of fixed income obligations also may be subject to “call and redemption risk,” which is the risk that the issuer may call a bond held by the Fund for redemption
before it matures and the Fund may not be able to reinvest at the same rate of interest and therefore would earn less income.
Deflation Risk. During periods of deflation, prices throughout the economy may decline over time,
which may have an adverse effect on the creditworthiness of issuers in whose securities the Fund invests.
Additionally, since the Fund makes investments that may perform well in periods of rising inflation, during periods of
no inflation or deflation an investment in the Fund may underperform broad market measures and may lose value.
Derivatives Risk. Derivatives involve special risks and costs and may result in losses to the Fund.
The successful use of derivatives requires sophisticated management, and, to the extent that derivatives
are used, the Fund will depend on the subadviser’s ability to analyze and manage derivatives transactions. The prices of derivatives may move in unexpected ways, especially in abnormal market conditions. Some derivatives are “leveraged” or may create economic leverage for the Fund and therefore may magnify or otherwise increase investment losses to the Fund. The
Fund's use of derivatives may also increase the amount of taxes payable by shareholders.
Other risks arise from the potential inability to terminate or sell derivatives positions.
A liquid secondary market may not always exist for the Fund's derivatives positions. In fact, many over-the-counter
derivative instruments will not have liquidity beyond the counterparty to the instrument. Over-the-counter derivative instruments
also involve the risk that the other party will not meet its obligations to the Fund. The use of derivatives also exposes the
Fund to operational issues, such as documentation and settlement issues, systems failures, inadequate control and human
error.
Derivatives may also involve legal risks, such as insufficient documentation, the
lack of capacity or authority of a counterparty to execute or settle a transaction, and the legality and enforceability
of derivatives contracts. The U.S. Government and foreign governments have adopted (and may adopt further) regulations
governing derivatives markets, including mandatory clearing of certain derivatives, margin and reporting requirements
and risk exposure limitations. Regulation of derivatives may make derivatives more costly, limit their availability
or utility to the Fund, or otherwise adversely affect their performance or disrupt markets.
Distribution Risk. The Fund’s distributions may consist of net investment income, if any, and net realized gains, if any, from the sale of investments and/or return of capital. The Fund will provide to shareholders
early in each calendar year the final tax character of the Fund’s distributions for the previous year. Also, at such time that the Fund distribution is expected to be from sources other than current or accumulated net income, a notice to shareholders
may be required.
Economic and Market Events Risk. Events in the U.S. and global financial markets, including actions taken by the U.S. Federal Reserve or foreign central banks to stimulate or stabilize economic growth
or the functioning of the securities markets, or otherwise reduce inflation, may at times result in unusually high market
volatility, which could negatively impact performance. Governmental efforts to curb inflation often have negative effects on
the level of economic activity. Relatively reduced liquidity in credit and fixed income markets could adversely affect issuers
worldwide.
Emerging Markets Risk. The risks of foreign investments are greater for investments in or exposed to emerging
markets. Emerging market countries typically have economic and political systems that are less
fully developed, and can be expected to be less stable, than those of more developed countries. For example, the economies
of such countries can be subject to rapid and unpredictable rates of inflation or deflation. Low trading volumes may result
in a lack of liquidity and price volatility. Emerging market countries may have policies that restrict investment by
non-U.S. investors, or that prevent non-U.S. investors from withdrawing their money at will.
The Fund may invest in some emerging markets that subject it to risks such as those
associated with illiquidity, custody of assets, different settlement and clearance procedures and asserting legal title under
a developing legal and regulatory regime to a greater degree than in developed markets or even in other emerging markets.
Energy Sector Risk. The Fund’s investments in certain Underlying Funds will expose the Fund to the risks of adverse economic, environmental, business, regulatory or other occurrences affecting the energy
sector. The energy sector has historically experienced substantial price volatility. MLPs and other companies operating
in the energy sector are subject to specific risks, including, among others, fluctuations in commodity prices; reduced
consumer demand for commodities such as oil, natural gas or petroleum products; reduced availability of natural gas or
other commodities for transporting, processing, storing or delivering; slowdowns in new construction; extreme weather
or other natural disasters; wars and conflicts; and threats of attack by terrorists on energy assets. Additionally, changes
in the regulatory environment for energy companies may adversely impact their profitability. Over time, depletion of natural
gas reserves and other energy reserves may also affect the profitability of energy companies.
Foreign Securities Risk. Investments in securities of non-U.S. issuers (including those denominated in U.S.
dollars) may involve more risk than investing in securities of U.S. issuers. Foreign political,
economic and legal systems, especially those in developing and emerging market countries, may be less stable and more volatile
than in the United States. Foreign legal systems generally have fewer regulatory requirements than the U.S. legal system, particularly
those of emerging markets. In general, less information is publicly available with respect to non-U.S. companies than U.S. companies. Non-U.S. companies generally are not subject to the same accounting, auditing, and financial
reporting standards as are U.S. companies. Additionally, the changing value of foreign currencies and changes
in exchange rates could also affect the value of the assets the Fund holds and the Fund's performance. Certain foreign countries
may impose restrictions on the ability of issuers of foreign securities to make payment of principal and interest
or dividends to investors located outside the country, due to blockage of foreign currency exchanges or otherwise. Investments in
emerging markets are subject to greater volatility and price declines.
In addition, the Fund's investments in non-U.S. securities may be subject to the risks
of nationalization or expropriation of assets, imposition of currency exchange controls or restrictions on the repatriation
of non-U.S. currency, confiscatory taxation and adverse diplomatic developments. Special U.S. tax considerations may
apply.
Fund of Funds Risk. The value of an investment in the Fund will be related, to a degree, to the investment
performance of the Underlying Funds in which it invests. Therefore, the principal risks of investing
in the Fund are closely related to the principal risks associated with these Underlying Funds and their investments. Because the Fund’s allocation among different Underlying Funds and direct investments in securities and derivatives will
vary, an investment in the Fund may be subject to any and all of these risks at different times and to different degrees.
Investing in an Underlying Fund will also expose the Fund to a pro rata portion of the Underlying Fund’s fees and expenses. In addition, one Underlying Fund may buy the same securities that another Underlying Fund sells. Therefore, the Fund would
indirectly bear the costs of these trades without accomplishing the investment purpose.
Hedging Risk. The decision as to whether and to what extent the Fund will engage in hedging transactions
to hedge against certain risks, such as market risk and issuer risk, will depend on a number of factors,
including prevailing market conditions, the composition of the portfolio of the Fund, and the availability of
suitable transactions. Hedging transactions involve costs and may result in losses. There is no guarantee that any of these hedging
instruments would work as anticipated, and in certain cases the Fund might be better off had it not used a hedging
instrument. There can be no assurance that the Fund will engage in hedging transactions at any given time or from
time to time, even under volatile market environments, or that any such strategies, if used, will be successful.
Increase in Expenses Risk. Your actual cost of investing in the Fund may be higher than the expenses shown in
the expense table for a variety of reasons. For example, expense ratios may be higher than those
shown if average net assets decrease. Net assets are more likely to decrease and Fund expense ratios are more likely to
increase when markets are volatile. Active and frequent trading of Fund securities can increase expenses.
Interest Rate Risk. The value of your investment may go down when interest rates rise. A rise in rates
tends to have a greater impact on the prices of longer term or duration debt securities. Similarly, a rise
in interest rates may also have a greater negative impact on the value of equity securities whose issuers expect earnings further
out in the future. For example, a fixed income security with a duration of three years is expected to decrease in value
by approximately 3% if interest rates increase by 1%. This is referred to as “duration risk.” When interest rates fall, the issuers of debt obligations may prepay principal more quickly than expected, and the Fund may be required to reinvest the
proceeds at a lower interest rate. This is referred to as “prepayment risk.” When interest rates rise, debt obligations may be repaid more slowly than expected,
and the value of the Fund’s holdings may fall sharply. This is referred to as “extension risk.” The Fund may lose money if short-term or long-term interest rates rise sharply or in a manner not anticipated
by the subadviser.
Inflation-indexed bonds, such as TIPS, generally decline in value when real interest
rates rise. In certain interest rate environments, such as when real interest rates are rising faster than nominal interest
rates, TIPS may experience greater losses than other fixed income securities with similar durations. In addition, any
increase in principal value of an inflation-indexed bond caused by an increase in the price index is taxable in the
year the increase occurs, even though the Fund generally will not receive cash representing the increase at that time. As a
result, the Fund could be required at times to liquidate other investments, including when it is not advantageous to do so, in
order to satisfy its distribution requirements as a regulated investment company under the Code. Also, to the extent that the Fund
invests in inflation-indexed bonds, income distributions are more likely to fluctuate.
Junk Bonds Risk. High-yield, high-risk bonds have predominantly speculative characteristics, including
particularly high credit risk. Junk bonds tend to have lower market liquidity than higher-rated securities.
The liquidity of particular issuers or industries within a particular investment category may shrink or disappear suddenly
and without warning. The non-investment grade bond market can experience sudden and sharp price swings and
become illiquid due to a variety of factors, including changes in economic forecasts, stock market activity, large sustained
sales by major investors, a high profile default or a change in the market's psychology.
Large Shareholder and Large Scale Redemption Risk. Certain individuals, accounts, funds (including funds affiliated with the Manager) or institutions, including the Manager and its affiliates, may from time
to time own or control a substantial amount of the Fund’s shares. There is no requirement that these entities maintain their investment in the Fund. There is a risk that such large shareholders or that the Fund’s shareholders generally may redeem all or a substantial portion of their investments in the Fund in a short period of time, which could have a significant negative impact on the Fund’s NAV, liquidity, and brokerage costs. Large redemptions could also result in tax consequences
to shareholders and impact the Fund’s ability to implement its investment strategy. The Fund’s ability to pursue its investment objective after one or more large scale redemptions may be impaired and, as a result, the Fund may invest a larger
portion of its assets in cash or cash equivalents.
Leverage Risk. Certain transactions in which the Fund may engage may give rise to leverage. The
use of leverage exaggerates the effect of any increase or decrease in the value of the Fund’s holdings, and makes any change in the Fund’s net asset value greater than it would be without the use of leverage. This could result
in increased volatility of investment return. The Fund may be required to pledge its assets or post margin in connection
with certain borrowings or derivatives transactions that involve leverage. There is a possibility that posting or pledging
a large portion of the assets of the Fund could impede portfolio management or the Fund's ability to meet redemption requests
or other current obligations or that the Fund may be required to dispose of some of its investment at unfavorable prices
or times.
Liquidity Risk. Liquidity risk is the risk that the Fund could not meet requests to redeem shares
issued by the Fund without significant dilution of remaining investors' interests in the Fund. The Fund may invest
in instruments that trade in lower volumes and are more illiquid than other investments. If the Fund is forced to sell
these investments to pay redemption proceeds or for other reasons, the Fund may lose money. In addition, when there is
no willing buyer and investments cannot be readily sold at the desired time or price, the Fund may have to accept a lower
price or may not be able to sell the instrument at all. An inability to sell a portfolio position can adversely affect
the Fund's value or prevent the Fund from being able to take advantage of other investment opportunities.
Management Risk. Actively managed funds are subject to management risk. The subadviser will apply
investment techniques and risk analyses in making investment decisions for the Fund, but the subadviser’s judgments about the attractiveness, value or market trends affecting a particular security, industry or
sector or about market movements may be incorrect. Additionally, the investments selected for the Fund may underperform the
markets in general, the Fund's benchmark and other funds with similar investment objectives.
Market Disruption and Geopolitical Risks. Market disruption can be caused by economic, financial or political events and factors, including but not limited to, international wars or conflicts (including Russia’s military invasion of Ukraine and the Israel-Hamas war), geopolitical developments (including trading and tariff arrangements,
sanctions and cybersecurity attacks), instability in regions such as Asia, Eastern Europe and the Middle East,
terrorism, natural disasters and public health epidemics (including the outbreak of COVID-19 globally).
The extent and duration of such events and resulting market disruptions cannot be
predicted, but could be substantial and could magnify the impact of other risks to the Fund. These and other similar events
could adversely affect the U.S. and foreign financial markets and lead to increased market volatility, reduced liquidity
in the securities markets, significant negative impacts on issuers and the markets for certain securities and commodities
and/or government intervention. They may also cause short- or long-term economic uncertainties in the United States and
worldwide. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure
to the countries directly affected, the value and liquidity of the Fund’s investments may be negatively impacted. Further, due to closures of certain markets and restrictions on trading certain securities, the value of certain securities held by
the Fund could be significantly impacted, which could lead to such securities being valued at zero.
Market Risk. Securities markets may be volatile and the market prices of the Fund’s securities may decline. Securities fluctuate in price based on changes in an issuer’s financial condition and overall market and economic conditions. If the market prices of the securities owned by the Fund fall, the value of your investment
in the Fund will decline.
Master Limited Partnerships Risk. The Fund’s investments in certain Underlying Funds will expose the Fund to the risks of MLPs. An MLP is an investment that combines the tax benefits of a limited partnership
with the liquidity of publicly-traded securities. The risks of investing in an MLP are generally those involved in investing
in a partnership as opposed to a corporation. For example, state law governing partnerships is often less restrictive
than state law governing corporations. Accordingly, there may be fewer protections afforded investors in an MLP than investors
in a corporation. Investments held by MLPs may be relatively illiquid, limiting the MLPs’ ability to vary their portfolios promptly in response to changes in economic or other conditions. MLPs may have limited financial resources, their securities
may trade infrequently and in limited volume, and they may be subject to more abrupt or erratic price movements
than securities of larger or more broadly-based companies. Investments by the Fund in certain Underlying Funds that
invest in MLPs may also subject the Fund to the risks associated with the specific industry or industries in which the
MLPs invest, risks related to limited control and limited rights to vote on matters affecting the MLP, risks related to potential
conflicts of interest between the MLP and the MLP’s general partner, cash flow risks, dilution risks and risks related to the general partner’s right to require unit-holders to sell their common units at an undesirable time or price. MLPs are
generally considered interest-rate sensitive investments. During periods of interest rate volatility, these investments may not
provide attractive returns. Since MLPs generally conduct business in multiple states, through its investment in certain Underlying
Funds, the Fund may be subject to income or franchise tax in each of the states in which the partnership does business.
The additional cost of preparing and filing the tax returns and paying the related taxes may adversely impact the Fund’s return on its investment in certain Underlying Funds.
Mortgage-Backed and Asset-Backed Securities Risk. Mortgage-backed and asset-backed securities tend to increase in value less than other debt securities when interest rates decline, but are subject to similar
risk of decline in market value during periods of rising interest rates. The values of mortgage-backed and asset-backed securities
become more volatile as interest rates rise. In a period of declining interest rates, the Fund may be required to reinvest
more frequent prepayments on mortgage-backed and asset-backed securities in lower-yielding investments.
Natural Resources Investment Risk. The Fund’s investments in certain Underlying Funds will expose the Fund to the risk of investment in natural resource companies. The market value of securities of natural
resource companies may be affected by numerous factors, including events occurring in nature, inflationary pressures and
international politics. For example, events occurring in nature (such as earthquakes or fires in prime natural resource areas)
and political events (such as coups, military confrontations or acts of terrorism) can affect the overall supply of a natural
resource and the value of companies involved in such natural resource. Political risks and the other risks to which non-U.S.
securities are subject may affect domestic companies if they have significant operations or investments in non-U.S.
countries. In addition, rising interest rates and general economic conditions may affect the demand for natural resources.
Real Estate Investment Trust (“REIT”) Risk. Investing in REITs involves certain unique risks in addition to those risks associated with investing in the real estate industry in general. REITs may be affected
by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the
quality of any credit extended. REITs are dependent upon management skills, may not be diversified geographically or by
property/mortgage asset type, and are subject to heavy cash flow dependency, default by borrowers and self-liquidation.
REITs may be more volatile and/or more illiquid than other types of equity securities. REITs (especially mortgage REITs)
are subject to interest rate risks. REITs may incur significant amounts of leverage. The Fund will indirectly bear a portion of
the expenses, including management fees, paid by each REIT in which it invests, in addition to the expenses of the Fund.
REITs must also meet certain requirements under the Internal Revenue Code of 1986,
as amended (the “Code”) to avoid entity level tax and be eligible to pass-through certain tax attributes of their income
to shareholders. REITs are consequently subject to the risk of failing to meet these requirements for favorable tax treatment
and of failing to maintain their exemptions from registration under the Investment Company Act of 1940. REITs are subject
to the risks of changes in the Code affecting their tax status.
Real Estate Related Securities Risk. Because the Fund invests in real estate securities, including REITs, the Fund is
subject to the risks of investing in the real estate industry, such as changes in general
and local economic conditions, the supply and demand for real estate and changes in zoning and tax laws. Because the Fund invests
in stocks, there is the risk that the price of a particular stock owned by the Fund could go down or pay lower-than-expected
or no dividends. In addition to an individual stock losing value, the value of the equity markets or of companies
comprising the real estate industry could go down.
Real estate securities are subject to the same risks as direct investments in real
estate and mortgages, and their value will depend on the value of the underlying properties or the underlying loans or interests.
The underlying loans may be subject to the risks of default or of prepayments that occur earlier or later than expected,
and such loans may also include so-called “subprime” mortgages. The value of these securities will rise and fall in response to many factors,
including economic conditions, the demand for rental property and interest rates. In particular, the
value of these securities may decline when interest rates rise and will also be affected by the real estate market and by the
management of the underlying properties.
Small and Medium Sized Companies Risk. Small and medium sized companies usually offer a smaller range of products and services than larger companies. Smaller companies may also have limited financial
resources and may lack management depth. As a result, their prices may fluctuate more than the stocks of larger, more
established companies. Historically, small and medium sized companies have sometimes gone through extended periods when they
did not perform as well as larger companies. Small and medium sized companies generally are more illiquid than larger
companies, which may make such investments more difficult to sell at the time and price that the Fund would like.
Tax Risk. In order to qualify as a RIC under the Code, the Fund must meet certain requirements
regarding the source of its income, the diversification of its assets and the distribution of its income. If the
Fund were to fail to qualify as a RIC, the Fund could be subject to federal income tax on its net income at regular corporate
rates (without reduction for distributions to shareholders). When distributed, that income would also be taxable to shareholders
as an ordinary dividend to the extent attributable to the Fund’s earnings and profits. If the Fund were to fail to qualify as a RIC and become subject to federal income tax, shareholders of the Fund would be subject to diminished returns.
The Fund has received a private letter ruling from the Internal Revenue Service (the
“IRS”) stating that income derived from the Fund’s investment in the Cayman Subsidiary will constitute qualifying income to the Fund. Final tax regulations, on which taxpayers may rely for taxable years beginning after September 28, 2016, also
support this result. However, in the future, if the IRS issues regulations or other guidance, or Congress enacts legislation,
limiting the circumstances in which the Fund may treat such income as “qualifying income,” the Fund may need to change its investment strategies, which could adversely affect the Fund. The Cayman Subsidiary will not be subject to U.S.
federal income tax. The Cayman Subsidiary will, however, be considered a controlled foreign corporation, and the
Fund will be required to include as income annually amounts earned by the Cayman Subsidiary during that year. Furthermore, the
Fund will be subject to the distribution requirement applicable to open-end investment companies on such Cayman
Subsidiary income, whether or not the Cayman Subsidiary makes a distribution to the Fund during the taxable year.
One of the Underlying Funds, the PGIM Jennison MLP Fund, is taxed as a regular corporation,
or “C” corporation, for federal income tax purposes. This means that the PGIM Jennison MLP Fund is generally
subject to U.S. federal income tax on its taxable income at the rates applicable to corporations and also subject to
state and local income taxes. This may have unexpected and potentially significant consequences for shareholders, including the
Fund.
Treasury Inflation Protected Securities (“TIPS”) Risk. The value of TIPS generally fluctuates in response to inflationary concerns. As inflationary expectations increase, TIPS will become more attractive,
because they protect future interest payments against inflation. Conversely, as inflationary concerns decrease, TIPS will
become less attractive and less valuable. Although the principal value of TIPS declines in periods of deflation, holders at
maturity receive no less than the par value of the bond. However, if an Underlying Fund purchases TIPS in the secondary market, where
principal values have been adjusted upward due to inflation since issuance, it may experience a loss if there
is a subsequent period of deflation. If inflation is lower than expected during the period an Underlying Fund holds TIPS,
the Underlying Fund may earn less on the security than on a conventional bond.
U.S. Government and Agency Securities Risk. U.S. Treasury obligations are backed by the “full faith and credit” of the U.S. Government. Securities issued or guaranteed by federal agencies or authorities
and U.S. Government-sponsored instrumentalities or enterprises may or may not be backed by the full faith and credit
of the U.S. Government. For example, securities issued by the Federal Home Loan Mortgage Corporation, the Federal National
Mortgage Association and the Federal Home Loan Banks are neither insured nor guaranteed by the U.S. Government.
These securities may be supported by the ability to borrow from the U.S. Treasury or only by the credit of the issuing
agency, authority, instrumentality or enterprise and, as a result, are subject to greater credit risk than securities issued
or guaranteed by the U.S. Treasury. Further, the U.S. Government and its agencies, authorities, instrumentalities and
enterprises do not guarantee the market value of their securities; consequently, the value of such securities will fluctuate.
This may be the case especially when there is any controversy or ongoing uncertainty regarding the status of negotiations in
the U.S. Congress to increase the statutory debt ceiling. Such controversy or uncertainty could, among other things, result in
the credit quality rating of the U.S. Government being downgraded and reduced prices of U.S. Treasury securities. If
the U.S. Congress is unable to negotiate an adjustment to the statutory debt ceiling, there is also the risk that
the U.S. Government may default on payments on certain U.S. Government securities, including those held by the Fund,
which could have a negative impact on the Fund. An increase in demand for U.S. Government securities resulting from an increase
in demand for government money market funds may lead to lower yields on such securities.
Utilities/Infrastructure Investment Risk. The Fund’s investments in certain Underlying Funds will expose the Fund to potential adverse economic, regulatory, political and other changes affecting infrastructure
investments, particularly investments in the utilities sector. In most countries and localities, the utilities industry is
regulated by governmental entities, which can increase costs and delays for new projects and make it difficult to pass increased
costs on to consumers. In certain areas, deregulation of utilities has resulted in increased competition and reduced profitability
for certain companies, and increased the risk that a particular company will become bankrupt or fail completely. Reduced
profitability, as well as new uses for or additional need of funds (such as for expansion, operations or stock buybacks), could
result in reduced dividend payout rates for utilities companies. In addition, utilities companies face the risk of increases
in the cost and reduced availability of fuel (such as oil, coal, natural gas or nuclear energy) and potentially high interest
costs for borrowing to finance new projects. Issuers in other types of infrastructure-related businesses also are subject
to a variety of factors that may adversely affect their business or operations, including high interest costs in connection with
capital construction programs, costs associated with environmental and other regulations, the effects of economic slowdown
and surplus capacity, increased competition from other providers of services, uncertainties concerning the availability
of fuel at reasonable prices, the effects of energy conservation policies, and other factors.
Performance. The following bar chart shows the Fund's performance for Class Z shares for each full
calendar year of operations or for the last 10 calendar years, whichever is shorter. The following table shows the Fund's average annual returns and also compares the Fund’s performance with the average annual total returns of an index or other benchmark. The bar chart and table demonstrate the risk of investing in the Fund by showing how
returns can change from year to year.
Past performance (before and after taxes) does not mean that the Fund will achieve
similar results in the future. Without the management fee waiver and/or expense reimbursement, if any, the annual total returns
would have been lower. Updated Fund performance information, including current net asset value, is available online
at www.pgim.com/investments.
The performance for periods prior to January 6, 2014 shown below does not reflect
the implementation of certain investment strategies for the Fund, which became effective on or about that date.
 |
|
Best Quarter:
|
Worst Quarter:
|
||
|
9.89%
|
1st
Quarter
2019
|
-12.84%
|
1st
Quarter
2020
|
Average Annual Total Returns % (including sales charges) (as of 12-31-23)
|
Return Before Taxes
|
One Year
|
Five Years
|
Ten Years
|
Since
Inception
|
Inception
Date
|
|
Class A Shares
|
-2.73%
|
6.13%
|
2.60%
|
-
|
|
|
Class C Shares
|
1.23%
|
6.56%
|
2.44%
|
-
|
|
|
Class R6 Shares
|
3.38%
|
7.82%
|
N/A
|
3.28%
|
1-23-2015
|
|
Class Z Shares % (as of 12-31-23)
|
|||||
|
Return Before Taxes
|
3.25%
|
7.68%
|
3.50%
|
-
|
|
|
Return After Taxes on Distributions
|
1.88%
|
5.10%
|
1.82%
|
-
|
|
|
Return After Taxes on Distributions and Sale of Fund Shares
|
2.06%
|
4.99%
|
2.09%
|
-
|
|
|
Index % (reflects no deduction for fees, expenses or taxes) (as of 12-31-23)
|
|||||
|
Custom Blend Index
|
2.20%
|
5.40%
|
2.31%
|
2.47%*
|
|
|
Bloomberg US TIPS Index
|
3.90%
|
3.15%
|
2.42%
|
1.95%*
|
|
° After-tax returns are calculated using the historical highest individual federal marginal
income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. After-tax returns
shown are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown only for Class Z shares. After-tax returns for other classes
will vary due to differing sales charges and expenses.
* Since Inception returns for the Indexes are measured from the closest month-end to
the inception date for Class R6 shares.
MANAGEMENT OF THE FUND
The following individuals are jointly and primarily responsible for the day-to-day
management of the Fund.
|
Investment Manager
|
Subadviser
|
Portfolio Managers
|
Title
|
Service Date
|
|
PGIM Investments LLC
|
PGIM Quantitative Solutions LLC
|
Joel M. Kallman, CFA
|
Vice President and
Portfolio Manager
|
December 2010
|
|
|
|
Rory Cummings, CFA
|
Principal and Portfolio
Manager
|
April 2015
|
|
|
|
Marco Aiolfi, PhD
|
Managing Director,
Head of Multi-Asset
team and Portfolio
Manager
|
September 2022
|
BUYING AND SELLING FUND SHARES
|
|
Class A*
|
Class C*
|
Class Z*
|
Class R6
|
|
Minimum initial investment
|
$1,000
|
$1,000
|
None
|
None
|
|
Minimum subsequent investment
|
$100
|
$100
|
None
|
None
|
* Certain share classes are generally closed to investments by new group retirement
plans. Please see “How to Buy, Sell and Exchange Fund Shares—Closure of Certain Share Classes to New Group Retirement Plans” in the Prospectus for more information.
For Class A and Class C shares, the minimum initial and subsequent investment for
Automatic Investment Plan purchases is $50. Class R6 shares are generally not available for purchase by individuals. Class
Z shares may be purchased by certain individuals, subject to certain requirements. Please see “How to Buy, Sell and Exchange Fund Shares—How to Buy Shares—Qualifying for Class Z Shares,” and “—Qualifying for Class R6 Shares” in the Prospectus for purchase eligibility requirements.
Your financial intermediary may impose different investment minimums. You can purchase
or redeem shares on any business day that the Fund is open through the Fund's transfer agent or through servicing
agents, including brokers, dealers and other financial intermediaries appointed by the distributor to receive purchase
and redemption orders. Current shareholders may also purchase or redeem shares through the Fund's website or by calling
(800) 225-1852.
TAX INFORMATION
Dividends, Capital Gains and Taxes. The Fund's dividends and distributions are taxable and will be taxed as ordinary
income or capital gains, unless you are investing through a tax-deferred arrangement, such
as a 401(k) plan or an individual retirement account. Such tax-deferred arrangements may be taxed later upon withdrawal
of monies from those arrangements.
PAYMENTS TO FINANCIAL INTERMEDIaries
If you purchase Fund shares through a financial intermediary such as a broker-dealer,
bank, retirement recordkeeper or other financial services firm, the Fund or its affiliates may pay the financial intermediary
for the sale of Fund shares and/or for services to shareholders. This may create a conflict of interest by influencing
the financial intermediary or its representatives to recommend the Fund over another investment. Ask your financial
intermediary or representative or visit your financial intermediary’s website for more information.
|
By Mail:
|
Prudential Mutual Fund Services LLC, PO Box 534432, Pittsburgh, PA 15253-4432
|
|
By Telephone:
|
800-225-1852 or 973-367-3529 (outside the US)
|
|
On the Internet:
|
www.pgim.com/investments
|
MF207A