PGIM INVESTMENTS | Bringing you the investment managers of Prudential Financial, Inc.
PGIM FLOATING RATE INCOME FUND
|
A: FRFAX
|
C: FRFCX
|
Z: FRFZX
|
R6: PFRIX
|
|
|
|
|
|
|
SUMMARY PROSPECTUS | April 29, 2021
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 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 April 29, 2021, as supplemented and amended from time to time, and the Fund's Annual Report, dated February 28, 2021, are all incorporated by reference into (legally
made a
INVESTMENT OBJECTIVES
The primary investment objective of the Fund is to maximize current income. Capital appreciation is a secondary investment objective, but only when consistent with the Fund's primary investment objective of seeking to maximize current income.
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, $100,000 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 31 of the Fund's Prospectus, Appendix A: Waivers and Discounts Available From Certain Financial Intermediaries on page 53 of the Fund's Prospectus and in Rights of Accumulation on page 56 of the Fund's Statement of Additional Information (SAI).
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)
|
2.25%
|
None
|
None
|
None
|
|
Maximum deferred sales charge (load) (as a percentage of the lower of the original purchase price or the 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 fee
|
None
|
None
|
None
|
None
|
|
Exchange fee
|
None
|
None
|
None
|
None
|
|
Maximum account fee (accounts under $10,000)
|
$15
|
$15
|
None***
|
None
|
*Investors who purchase $500,000 or more of Class A shares and sell these shares within 12months of purchase are subject to
a 1.00% contingent deferred sales charge (CDSC) although they are not subject to an initial sales charge. The CDSC is waived for purchases by 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)
|
|
Class A
|
Class C
|
Class Z
|
Class R6
|
|
Management fee
|
0.65%
|
0.65%
|
0.65%
|
0.65%
|
|
Distribution and service (12b-1) fees
|
0.25%
|
1.00%
|
None
|
None
|
|
Other expenses
|
0.27%
|
0.29%
|
0.25%
|
0.27%(1)
|
|
Total annual Fund operating expenses
|
1.17%
|
1.94%
|
0.90%
|
0.92%
|
|
Fee waiver and/or expense reimbursement
|
(0.20)%
|
(0.22)%
|
(0.18)%
|
(0.25)%
|
|
Total annual Fund operating expenses after fee waiver and/or expense reimbursement(2)
|
0.97%
|
1.72%
|
0.72%
|
0.67%
|
(1) Other expenses have been updated from the most recent annual report to reflect current expenses.
To enroll in e-delivery, go to pgim.com/investments/resource/edelivery
MF211A
MF211A
(2) PGIM Investments LLC (PGIM Investments) has contractually agreed, through June 30, 2022, to limit Total Annual Fund Operating Expenses after fee waivers and/or expense reimbursements to 0.95% of average daily net assets for Class A shares, 1.70% of average daily net assets for Class C shares,
0.70% of average daily net assets for Class Z shares, and 0.65% 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 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 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 June 30, 2022 without the prior approval of the Fund’s Board of Directors.
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
|
Share Class
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
Class A
|
$322
|
$569
|
$835
|
$1,596
|
|
Class C
|
$275
|
$588
|
$1,027
|
$2,046
|
|
Class Z
|
$74
|
$269
|
$481
|
$1,091
|
|
Class R6
|
$68
|
$268
|
$485
|
$1,108
|
If Shares Are Not Redeemed
|
Share Class
|
1 Year
|
3 Years
|
5 Years
|
10 Years
|
|
Class A
|
$322
|
$569
|
$835
|
$1,596
|
|
Class C
|
$175
|
$588
|
$1,027
|
$2,046
|
|
Class Z
|
$74
|
$269
|
$481
|
$1,091
|
|
Class R6
|
$68
|
$268
|
$485
|
$1,108
|
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
125% of the average value of its portfolio.
INVESTMENTS, RISKS AND PERFORMANCE
Principal Investment Strategies. Under normal market conditions, the Fund invests at least 80% of its investable assets (net assets plus borrowings for investment purposes, if any) in floating rate loans and other floating rate debt securities. Floating
rate loans and other floating rate debt obligations have interest rates which adjust or “float” periodically (normally on a monthly or quarterly basis) based on a generally recognized base rate such as the London Interbank Offered Rate (“LIBOR”), the Secured Overnight Financing Rate (“SOFR”) or the prime rate offered by one or more major US banks. Floating rate loans (often referred to as “bank loans”) are arranged through private negotiations between a corporation or other institution that is the borrower and one or more financial institutions that are the lenders.
In managing the Fund’s assets, the subadviser uses a combination of top-down economic analysis and bottom-up research in conjunction with proprietary quantitative models and risk management systems. In the top-down economic analysis, the subadviser develops views on economic, policy and market trends. In its bottom-up research, the subadviser develops an internal rating and outlook on issuers. The rating and outlook is determined based on a thorough review of the financial health and trends of the issuer. The subadviser may also consider investment factors such as expected total return, yield,
spread and potential for price appreciation as well as credit quality, maturity and risk. The Fund may invest in a security
based upon the expected total return rather than the yield of such security.
Most floating rate loans are senior in rank (“senior loans”) in the event of bankruptcy to most other securities of the issuer, such as common stock or publicly-issued bonds. Floating rate loans are often secured by specific collateral of the issuer
so that holders of the loans will have a priority claim on those assets in the event of default or bankruptcy of the issuer.
Floating rate loans are often structured and administered by a financial institution that acts as agent for the holders of the loan.
Loans can be acquired directly through the agent, by assignment from another holder of the loan, or as a participation interest in another holder's portion of the loan.
The Fund has no requirement as to the maturity or quality of the debt instruments it may buy, or as to the market capitalization of those instruments. The Fund may invest primarily in senior loans that are rated below investment grade or
unrated senior loans of comparable quality at the time of purchase as determined by the Fund’s subadviser. Instruments rated below investment grade are sometimes referred to as “junk bonds.” A description of security ratings is provided in an Appendix to the Fund’s Statement of Additional Information.
The Fund may invest up to 20% of its total assets in senior loans that are not secured by any specific collateral. The Fund
may invest up to 25% of its total assets in senior loans made to foreign-domiciled borrowers and other foreign securities,
including securities of issuers located in emerging market countries, which may be denominated in US dollars or non-US currencies.
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.
Adjustable and Floating Rate Securities Risk. The value of adjustable and floating rate securities may lag behind the value of fixed rate securities when interest rates change. Such securities may be subject to extended settlement periods (longer than
seven days) and in unusual market conditions, with a high volume of shareholder redemptions, may present a risk of loss to
the Fund or may impair the Fund’s ability satisfy shareholder redemption requests.
Bank Loan Investments Risk. The Fund's ability to receive payments of principal and interest and other amounts in connection with loans (whether through participations, assignments or otherwise) will depend primarily on the financial condition of the borrower. The failure by the Fund to receive scheduled interest or principal payments on a loan because of
a default, bankruptcy or any other reason would adversely affect the income of the Fund and would likely reduce the value
of its assets. Even with loans secured by collateral, there is the risk that the value of the collateral may decline, may
be insufficient to meet the obligations of the borrower, or be difficult to liquidate. In the event of a default, the Fund may
have difficulty collecting on any collateral and would not have the ability to collect on any collateral for an uncollateralized
loan. Further, the Fund's access to collateral, if any, may be limited by bankruptcy laws. Due to the nature of the private syndication of senior loans, including, for example, lack of publicly-available information, some senior loans are not as
easily purchased or sold as publicly-traded securities. In addition, loan participations generally are subject to restrictions on
transfer, and only limited opportunities may exist to sell loan participations in secondary markets. As a result, it may be
difficult for the Fund to value loans or sell loans at an acceptable price when it wants to sell them. Loans trade in an over-the-counter market, and confirmation and settlement, which are effected through standardized procedures and documentation, may take significantly longer than seven days to complete. Extended trade settlement periods may, in unusual market conditions with a high volume of shareholder redemptions, present a risk to shareholders regarding the Fund's ability to pay redemption proceeds in a timely manner. In some instances, loans and loan participations are not rated
by independent credit rating agencies; in such instances, a decision by the Fund to invest in a particular loan or loan participation could depend exclusively on the subadviser's credit analysis of the borrower, or in the case of a loan participation, of the intermediary holding the portion of the loan that the Fund has purchased. To the extent the Fund invests
in loans of non-US issuers, the risks of investing in non-US issuers are applicable. Loans may not be considered to be “securities” and as a result may not benefit from the protections of the federal securities laws, including anti-fraud protections and those with respect to the use of material non-public information, so that purchasers, such as the Fund, may
not have the benefit of these protections. If the Fund is in possession of material non-public information about a borrower
as a result of its investment in such borrower’s loan, the Fund may not be able to enter into a transaction with respect to a publicly-traded security of the borrower when it would otherwise be advantageous to do so.
Bond Obligations Risk. As with credit risk, market risk and interest rate risk, the Fund's holdings, share price, yield and total return may 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 lose income.
Credit Risk. This is the risk that the issuer, the guarantor or the insurer of a fixed income security, or the counterparty to a contract, may be unable or unwilling to make timely principal and interest payments, or to otherwise honor its obligations.
Additionally, fixed income securities could lose value due to a loss of confidence in the ability of the issuer, guarantor,
insurer or counterparty to pay back debt. The longer the maturity and the lower the credit quality of a bond, the more sensitive it
is to credit risk.
Economic and Market Events Risk. Events in the US and global financial markets, including actions taken by the US Federal Reserve or foreign central banks to stimulate or stabilize economic growth or the functioning of the securities markets, may
at times result in unusually high market volatility, which could negatively impact performance. Relatively reduced liquidity
in credit and fixed income markets could adversely affect issuers worldwide.
Foreign Securities Risk. The Fund’s investments in securities of foreign issuers or issuers with significant exposure to foreign markets involve additional risk. The securities of such issuers may trade in markets that are less liquid, less regulated
and more volatile than US markets. The value of the Fund’s investments may decline because of factors affecting the particular issuer as well as foreign markets and issuers generally, such as unfavorable government actions, and political or financial
instability. Lack of information may also affect the value of these securities.
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. 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.
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.
LIBOR Risk. Many financial instruments use or may use a floating rate based on the London Interbank Offered Rate, or “LIBOR,” which is the offered rate for short-term Eurodollar deposits between major international banks. Over the course of the last several years, global regulators have indicated an intent to phase out the use of LIBOR and similar interbank offering
rates (IBOR). There still remains uncertainty regarding the nature of any replacement rates for LIBOR and the other IBORs
as well as around fallback approaches for instruments extending beyond the any phase-out of these reference rates. The lack of consensus around replacement rates and the uncertainty of the phase out of LIBOR and other IBORs may result in increased volatility in corporate or governmental debt, bank loans, derivatives and other instruments invested in by the Fund
as well as loan facilities used by the Fund.
The potential effect of a transition away from LIBOR on the Fund or the financial instruments in which the Fund invests cannot yet be determined. The elimination of LIBOR or changes to other reference rates or any other changes or reforms to
the determination or supervision of reference rates could have an adverse impact on the market for, or value of, any securities or payments linked to those reference rates, which may adversely affect the Fund’s performance and/or net asset value. Certain proposed replacement rates to LIBOR, such as the Secured Overnight Financing Rate (“SOFR”), are materially different from LIBOR, and changes in the applicable spread for instruments previously linked to LIBOR will need
to be made in order for instruments to pay similar rates. Uncertainty and risk also remain regarding the willingness and ability of issuers and lenders to include revised provisions in new and existing contracts or instruments. Consequently, the
transition away from LIBOR to other reference rates may lead to reduced coupons on debt held by the Fund, higher rates required to be paid by the Fund on bank lines of credit due to increases in spreads, increased volatility and illiquidity
in markets that are tied to LIBOR, fluctuations in values of LIBOR-related investments or investments in issuers that utilize
LIBOR, increased difficulty in borrowing or refinancing and diminished effectiveness of hedging strategies, adversely affecting the Fund’s performance. Furthermore, the risks associated with the expected discontinuation of LIBOR and transition may be exacerbated if the work necessary to effect an orderly transition to an alternative reference rate is not
completed in a timely manner. Because the usefulness of LIBOR and the other IBORs as benchmarks could deteriorate during the transition period, these effects could begin to be experienced by the end of 2021 and beyond until the anticipated discontinuance date in 2023 for the majority of the LIBOR rates.
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.
Loan Liquidity Risk. The Fund’s investments in loans may subject it to additional illiquidity risks. Loans generally are subject to legal or contractual restrictions on resale. The liquidity of loans, including the volume and frequency of secondary market
trading in such loans, varies significantly over time and among individual loans. For example, if the credit quality of a
loan unexpectedly declines significantly, secondary market trading in that loan can also decline for a period of time. During periods of infrequent trading, valuing a loan can be more difficult and buying and selling a loan at an acceptable price can
be more difficult and delayed. Difficulty in selling a loan can result in a loss. Certain of the Fund’s assets may be invested in assets that are considerably less liquid than debt instruments traded on national exchanges. Market quotations for such assets may be volatile and/or subject to large spreads between bid and ask prices. Loans trade in an over-the-counter market, and confirmation and settlement may take significantly longer than seven days to complete. Extended trade settlement periods may, in unusual market conditions with a high volume of shareholder redemptions, present a risk to shareholders regarding the Fund’s ability to pay redemption proceeds within the allowable time periods stated in this Prospectus. To the extent the extended loan settlement process gives rise to short-term liquidity needs, such as the need
to satisfy redemption requests, the Fund may hold cash, sell investments or temporarily borrow from banks or other lenders.
Management Risk. The value of your investment may decrease if judgments by the subadviser about the attractiveness, value or market trends affecting a particular security, industry or sector or about market movements are incorrect.
Market Disruption and Geopolitical Risks. International wars or conflicts and geopolitical developments in foreign countries, along with instability in regions such as Asia, Eastern Europe, and the Middle East, possible terrorist attacks in the United
States or around the world, public health epidemics such as the outbreak of infectious diseases like the recent outbreak of
coronavirus globally or the 2014–2016 outbreak in West Africa of the Ebola virus, and other similar events could adversely affect the U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities
markets and government intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. The coronavirus pandemic and the related governmental and public responses have had and may continue to have an impact on the Fund’s investments and net asset value and have led and may continue to lead to increased market volatility and the potential for illiquidity in certain classes of securities and sectors of the market.
Preventative or protective actions that governments may take in respect of pandemic or epidemic diseases may result in periods of business disruption, business closures, inability to obtain raw materials, supplies and component parts, and reduced or disrupted operations for the issuers in which the Fund invests. Government intervention in markets may impact interest rates, market volatility and security pricing. The occurrence, reoccurrence and pendency of such diseases could adversely affect the economies (including through changes in business activity and increased unemployment) and financial markets either in specific countries or worldwide.
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.
Portfolio Turnover Risk. The length of time the Fund has held a particular security is not generally a consideration in investment decisions. Under certain market conditions, the Fund’s turnover rate may be higher than that of other mutual funds. Portfolio turnover generally involves some expense to the Fund, including brokerage commissions or dealer mark-ups
and other transaction costs on the sale of securities and reinvestment in other securities. These transactions may result
in realization of taxable capital gains. The trading costs and tax effects associated with portfolio turnover may adversely affect
the Fund’s investment performance.
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.
 |
|
Best Quarter:
|
Worst Quarter:
|
||
|
12.30%
|
2nd
Quarter
2020
|
-15.73%
|
1st
Quarter
2020
|
|
1The total return for Class Z shares from January 1, 2021 through
|
March 31, 2021
|
was
|
2.71%
|
Average Annual Total Returns % (including sales charges) (as of 12-31-20)
|
Return Before Taxes
|
One Year
|
Five Years
|
Ten Years
|
Since
Inception
|
Inception
Date
|
|
Class A shares
|
1.99%
|
4.36%
|
N/A
|
3.73%
|
3-30-11
|
|
Class C shares
|
2.68%
|
4.08%
|
N/A
|
3.21%
|
3-30-11
|
|
Class R6 shares
|
4.65%
|
5.15%
|
N/A
|
4.06%
|
4-27-15
|
|
Class Z Shares % (as of 12-31-20)
|
|||||
|
Return Before Taxes
|
4.60%
|
5.08%
|
N/A
|
4.25%
|
3-30-11
|
|
Return After Taxes on Distributions
|
2.22%
|
2.86%
|
N/A
|
2.25%
|
3-30-11
|
|
Return After Taxes on Distributions and Sale of Fund Shares
|
2.61%
|
2.90%
|
N/A
|
2.38%
|
3-30-11
|
|
Index % (reflects no deduction for fees, expenses or taxes) (as of 12-31-20)
|
|||||
|
Credit Suisse Leveraged Loan Index
|
2.78%
|
5.19%
|
N/A
|
4.31%*
|
-
|
* Since Inception returns for the Index are measured from the closest month-end to the inception date for Class A shares, Class
C shares and Class Z shares.
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.
MANAGEMENT OF THE FUND
|
Investment Manager
|
Subadvisers
|
Portfolio Managers
|
Title
|
Service Date
|
|
PGIM Investments LLC
|
PGIM Fixed Income
PGIM Limited
|
Robert Cignarella, CFA
|
Managing Director and
Head of US High Yield
and co-Head of the
Global High Yield
Strategy
|
March 2014
|
|
|
|
Brian Juliano
|
Managing Director and
Head of PGIM Fixed
Income’s US Bank Loan
Team
|
March 2011
|
|
|
|
Parag Pandya, CFA
|
Principal and Portfolio
Manager
|
April 2018
|
|
|
|
Ian F. Johnston
|
Principal and Portfolio
Manager
|
April 2021
|
|
|
|
Robert W. Meyer, CFA
|
Vice President
|
April 2021
|
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 9658, Providence, RI 02940
|
|
|
By Telephone:
|
800-225-1852 or 973-367-3529 (outside the US)
|
|
|
On the Internet:
|
www.pgim.com/investments
|
MF211A