PGIM
Jennison MLP Fund
PROSPECTUS
— January
29,
2024
INVESTMENT
OBJECTIVE
Total
return
|
PGIM
JENNISON MLP FUND | |||
|
A:
PRPAX |
C:
PRPCX |
Z:
PRPZX |
R6:
PRPQX |
The
Securities and Exchange Commission
(“SEC”)
has not approved or disapproved the
Fund's
shares, nor has the SEC determined
that
this Prospectus is complete or accurate.
It is
a criminal offense to state otherwise. Mutual
funds are distributed by Prudential
Investment
Management Services LLC,
member
SIPC. Jennison Associates LLC is a
registered
investment adviser. Both are
Prudential
Financial companies. © 2024
Prudential
Financial, Inc. and its related
entities.
Jennison Associates, Jennison, the
Prudential
logo, and the Rock symbol are
service
marks of Prudential Financial, Inc.
and
its related entities, registered in many
jurisdictions
worldwide. |
 |
To
enroll in e-delivery, go to pgim.com/investments/resource/edelivery
|
|
Class
A |
Class
C |
Class
Z |
Class
R6 |
|
Maximum
sales charge (load) imposed on purchases (as a percentage of offering
price) |
|
|
|
|
|
Maximum
deferred sales charge (load) (as a percentage of the lower of the original
purchase price or the net asset value at
redemption) |
|
|
|
|
|
Maximum
sales charge (load) imposed on reinvested dividends and other
distributions |
|
|
|
|
|
Redemption
fee |
|
|
|
|
|
Exchange
fee |
|
|
|
|
|
Maximum
account fee (accounts under $10,000) |
$ |
$ |
|
|
*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.
|
|
Class
A |
Class
C |
Class
Z |
Class
R6 |
|
Management
fee |
|
|
|
|
|
Distribution
and service (12b-1) fees |
|
|
|
|
|
Other
expenses |
|
|
|
|
|
Deferred
income tax expenses/(benefit)(1) |
|
|
|
|
|
Current
income tax expenses(1) |
|
|
|
|
|
Total
annual Fund operating expenses |
|
|
|
|
|
Fee
waiver and/or expense reimbursement |
( |
|
|
|
|
Total
annual Fund operating expenses after fee waiver and/or expense
reimbursement(2,3) |
|
|
|
|
(1)
The
Fund is classified for federal income tax purposes as a taxable regular
corporation or so-called Subchapter “C” corporation. As a “C” corporation, the
Fund accrues deferred tax liability for its future tax liability associated with
the capital appreciation of its investments, distributions it receives on
interests of master limited partnerships considered to be a return of capital,
and for any net operating gains. The Fund’s accrued deferred tax liability, if
any, is reflected each day in the Fund’s net asset value per share. The Fund’s
deferred tax liability will depend upon income, gains, losses, and deductions
the Fund is allocated from its master limited partnership investments and on the
Fund’s realized and unrealized gains and losses, and may vary greatly from year
to year and from day to day depending on the nature of the Fund’s investments,
the performance of those investments and general market conditions. Therefore,
any estimate of deferred tax liability cannot be reliably predicted from year to
year. Actual income tax expense, if any, will be incurred over many years,
depending on if and when investment gains and losses are realized, the
then-current basis of the Fund's assets and other factors. For the year ended
November 30, 2023, the Fund's current tax expense and deferred income tax
expense were $33,249 and $11,097,428, respectively.
(2)
PGIM Investments LLC (“PGIM
Investments”) has contractually agreed, through March 31, 2025, to limit Total
Annual Fund Operating Expenses after fee waivers and/or expense reimbursement to
1.50% of average daily net assets for Class A shares, 2.25% of average daily net
assets for Class C shares, 1.25% of average daily net assets for Class Z shares,
and 1.20% 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
Visit our website
at www.pgim.com/investments
3
(3)
The
distributor of the Fund has contractually agreed through March 31, 2025 to
reduce its distribution and service (12b-1) fees for Class A shares to 0.25% of
the average daily net assets of the Class A shares. This waiver may not be
terminated prior to March 31, 2025 without the prior approval of the Fund’s
Board of Trustees.
|
Share
Class |
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
Class
C |
$ |
$ |
$ |
$ |
|
Class
Z |
$ |
$ |
$ |
$ |
|
Class
R6 |
$ |
$ |
$ |
$ |
|
Share
Class |
1
Year |
3
Years |
5
Years |
10
Years |
|
Class
A |
$ |
$ |
$ |
$ |
|
Class
C |
$ |
$ |
$ |
$ |
|
Class
Z |
$ |
$ |
$ |
$ |
|
Class
R6 |
$ |
$ |
$ |
$ |
4
PGIM
Jennison MLP Fund
The order of the
below risk factors does not indicate the significance of any particular risk
factor.
Visit our website
at www.pgim.com/investments
5
6
PGIM
Jennison MLP Fund
Visit our website
at www.pgim.com/investments
7
8
PGIM
Jennison MLP Fund
 |
|
|
| ||
|
|
|
|
|
|
Return
Before Taxes |
One
Year |
Five
Years |
Ten
Years |
Since
Inception |
Inception
Date |
|
Class
A Shares |
|
|
|
- |
|
|
Class
C Shares |
|
|
|
- |
|
|
Class
R6 Shares |
|
|
|
|
|
|
Class
Z Shares % (as of 12-31-23) | |||||
|
Return
Before Taxes |
|
|
|
- |
|
|
Return
After Taxes on Distributions |
|
|
|
- |
|
|
Return
After Taxes on Distributions and Sale of Fund Shares |
|
|
|
- |
|
|
Index
% (reflects no deduction for fees, expenses or taxes) (as of
12-31-23) | |||||
|
Alerian
MLP Index |
|
|
|
|
|
|
S&P
500 Index |
|
|
|
|
|
*
Since
Inception returns for the Index 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 |
Jennison
Associates LLC |
Ubong
“Bobby”
Edemeka |
Managing
Director |
December
2013 |
|
|
|
Shaun
Hong, CFA |
Managing
Director |
December
2013 |
|
|
|
Stephen
J. Maresca,
CFA |
Managing
Director |
July
2016 |
Visit our website
at www.pgim.com/investments
9
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
The Fund is treated
as a regular corporation, or “C” corporation, for US federal, state and local
income tax purposes. The Fund will make distributions that will be treated for
US federal income tax purposes as (i) first, taxable dividends to the extent of
your allocable share of the Fund’s earnings and profits, (ii) second,
non-taxable returns of capital to the extent of your tax basis in your shares of
the Fund (for the portion of those distributions that exceed the Fund’s earnings
and profits) and (iii) third, taxable gains (for the balance of the return of
capital distributions that exceed your tax basis in your shares). Dividend
income will be treated as “qualified dividends” for federal income tax purposes,
subject to favorable capital gain tax rates, provided that certain requirements
are met. Unlike a regulated investment company, the Fund will not be able to
pass-through the character of its recognized net capital gain by paying “capital
gain dividends.” Although the Fund expects that a significant portion of its
distributions will be treated as nontaxable return of capital and gains,
combined, no assurance can be given in this regard. Additionally, a sale of Fund
shares is a taxable event for shares held in a taxable
account.
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.
10
PGIM
Jennison MLP Fund
MORE ABOUT THE
FUND'S PRINCIPAL AND NON-PRINCIPAL INVESTMENT STRATEGIES, INVESTMENTS AND
RISKS
INVESTMENT
STRATEGIES AND INVESTMENTS
The Fund's
investment objective is total
return.
The Fund seeks to provide total
return through a combination of current income and capital appreciation. To
achieve the Fund’s objective, the Fund normally invests at least 80% of its
investable assets in master limited partnerships (“MLPs”) and MLP related
investments (together, “MLP investments”). 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’s MLP
investments may be of any market capitalization.
The Fund’s MLP investments may
include, but are not limited to: MLPs structured as LPs or LLCs; MLPs that are
taxed as “C” corporations; I-Units issued by MLP affiliates, parent companies of
MLPs, shares of companies owning MLP general partnership interests and other
securities representing indirect beneficial interest ownership interests in MLP
common units; “C” corporations that hold significant interests in MLPs; and
other equity and fixed income securities and derivative instruments, including
pooled investment vehicles including but not limited to exchange-traded funds
and/or mutual funds ETPs, that provide exposure to MLP investments or have
economic characteristics similar to MLP investments. MLPs generally own and
operate assets that are used in the energy sector, including assets used in
exploring, developing, producing, generating, transporting (including marine),
transmitting, terminal operation, storing, gathering, processing, refining,
distributing, mining or marketing of natural gas, natural gas liquids, crude
oil, refined products, coal or electricity, or that provide energy related
equipment or services.
MLPs formed as LPs or LLCs are
generally treated as partnerships for U.S. federal income tax purposes. To be
treated as a partnership for U.S. federal income tax purposes, an MLP must
derive at least 90% of its gross income for each taxable year from qualifying
sources, including activities such as the exploration, development, mining,
production, processing, refining, transportation, storage and certain marketing
of mineral or natural resources. MLPs are generally publicly traded, and as a
result are subject to the SEC’s rules and regulations and make public filings
like any publicly traded corporation. The Fund may also invest in privately
placed securities of publicly traded MLPs. The Fund is intended to provide
access to a product that issues a single Form 1099 to its shareholders thereby
removing the obstacles of federal and state filings (because shareholders will
not receive any Schedule K-1 and, for certain tax-exempt shareholders, UBTI
filings), while providing portfolio transparency, liquidity and daily net asset
value.
Many of the MLPs in
which the Fund invests operate oil, gas or petroleum facilities, or other
facilities within the energy sector. The Fund concentrates its investments in
the energy sector. The Fund may invest in “downstream,”
“midstream” and
“upstream” MLPs. Downstream MLPs are primarily engaged in the processing,
treatment, and refining of natural gas liquids and crude oil. Midstream MLPs are
generally engaged in the treatment, gathering, compression, processing,
transportation, transmission, fractionation, storage and terminating of natural
gas, natural gas liquids, crude oil, refined products or coal. Midstream MLPs
may also operate ancillary businesses including marketing of energy products and
logistical services. Upstream MLPs are primarily engaged in the exploration,
recovery, development and production of crude oil, natural gas and natural gas
liquids. The MLPs in which the Fund invests may also engage in owning, managing
and transporting alternative energy assets, including alternative fuels such as
ethanol, hydrogen and biodiesel.
In deciding which
stocks to buy, the subadviser relies on proprietary fundamental research,
focused on the discovery of quality companies with predictable and sustainable
cash flows. In narrowing the investment universe, the investment team compares
prospective candidates’ competitive positioning, including strategically located
assets; distribution coverage ratios; organic growth opportunities; expected
dividend or distribution growth; the quality of the management team; balance
sheet strength; and the support of the general partner. Valuation and the
investment’s degree of liquidity factor into the portfolio managers’ decision
calculus, as well.
Visit our website
at www.pgim.com/investments
11
The team also
monitors wider industry dynamics and interacts continually with subadviser’s
Natural Resources investment professionals to gain insights into emerging
trends, such as the anticipation of an acceleration or reduction in production
of particular oil and gas plays or a shift in regulatory or tax policy, which
could affect potential or current positions.
Generally, the Fund
considers selling a security when it has increased in value to the point where
it is no longer undervalued in the opinion of the subadviser.
The Fund’s investments may include
equity and equity-related securities, including common stocks; nonconvertible
preferred stocks; convertible securities—like bonds, corporate notes and
preferred stocks—that can convert into the company's common stock, the cash
value of common stock, or some other equity security; American Depositary
Receipts (“ADRs”); American Depositary Shares (“ADSs”) and other similar
securities: warrants and rights that can be exercised to obtain stocks; equity
securities of real estate investment trusts (“REITs”); investments in various
types of business ventures, including partnerships and joint ventures; and
similar securities.
The Fund’s
investment in debt securities, including corporate and government bonds, will
generally consist of those rated investment-grade by a major rating service
(such as BBB or above by S&P Global Ratings (“S&P”) or Baa or above by
Moody's Investors Service, Inc. (“Moody's”)) or, if not rated, to those the
subadviser believes are of comparable quality.
The Fund may invest
up to 20% of its investable assets in high yield debt obligations that at the
time of investment are rated below investment grade by a nationally recognized
statistical rating organization (“NRSRO”) or that are unrated but judged to be
of comparable quality by the subadviser. Obligations rated below BBB by S&P
or Baa by Moody's have speculative characteristics, and are often referred to as
high yield or “junk” bonds.
If the rating of a debt security is
downgraded after the Fund purchases it (or if the security is no longer rated),
the subadviser will not have to sell the security, but the subadviser will
consider this downgrade in deciding whether the Fund should continue to hold the
security.
The Fund may
participate in the initial public offering (“IPO”) market.
The Fund is a
regular corporation, or “C” corporation, for U.S. federal income tax purposes.
Accordingly, unlike traditional open-end mutual funds, the Fund is subject to
U.S. federal income tax on its taxable income at the rates applicable to
corporations (currently a flat rate of 21%) as well as state and local income
taxes.
Due to the tax
characterization of distributions made by MLPs, the Fund expects that a
significant portion of its distributions will consist of return of capital for
U.S. federal tax purposes. Additionally, to the extent that the Fund's
distributions to shareholders approximately equal the distribution rate that the
Fund receives from the Fund's MLP investments and the other securities in which
the Fund invests, including any income (without any deduction for Fund
expenses), a larger portion of the Fund's distributions to shareholders will
consist of return of capital for U.S. federal tax purposes than the
distributions the Fund receives from the MLPs. Generally, a fund distribution
will constitute return of capital, rather than a qualified or other taxable
dividend, to the extent that it exceeds the Fund's current and accumulated
earnings and profits. Return of capital reduces a shareholder's adjusted cost
basis in the Fund's shares, impacting the amount of any capital gains or loss
realized by the shareholder upon selling the Fund's shares. Once a shareholder's
adjusted cost basis has been reduced to zero (due to return of capital), any
further distributions will be treated as capital gains. For more information,
see “Fund Distributions and Tax Issues - Distributions” in this
Prospectus.
The Fund is
“non-diversified” for purposes of the Investment Company Act of 1940 (the “1940
Act”), which means that it can invest a greater percentage of its assets in
fewer issuers than a “diversified” fund.
12
PGIM
Jennison MLP Fund
The Fund's
investment objective is not a fundamental policy and can be changed by the Board
of Trustees without shareholder approval. The Fund will provide 60 days' prior
written notice to shareholders of a change in its non-fundamental policy of
normally investing at least 80% of its investable assets in the type of
investment suggested by its name.
Small,
Unseasoned Issuers
The Fund may invest
in the securities of small, unseasoned issuers. These are companies that have
been in operation for less than three years, including the operations of any
predecessors.
Repurchase
Agreements
The Fund may enter
into repurchase agreements, where a party agrees to sell a security to the Fund
and then repurchases it at an agreed-upon price at a stated time. This creates a
fixed return for the Fund, and is, in effect, a loan by the Fund. Repurchase
agreements are used for cash management purposes only.
Exchange-Traded
Funds (ETFs) and Exchange-Traded Products (ETPs)
The Fund may invest
in securities of ETFs. Securities of ETFs represent shares of ownership in
either a open-end management investment company or unit investment trust that
generally holds a portfolio of securities that may include bonds, common stocks,
other instruments or a combination of all three and which is designed to provide
exposure to the market represented by the portfolio of those securities. Such
holdings are subject to any management fees of the ETF. In addition, the Fund
may invest in ETPs. ETPs, like ETFs, are traded on major exchanges. ETP returns
are based on the performance of a market index, although the credit rating of
the issuer may affect the value of the ETP.
Short
Sales
The Fund may make
short sales of a security. This means that the Fund may sell a security that it
does not own, which it may do, for example, when the subadviser thinks the value
of the security will decline. The Fund generally borrows the security to deliver
to the buyers in a short sale. The Fund must then replace the borrowed security
by purchasing it at the market price at the time of replacement. The Fund may
make short sales “against the box.” In a short sale against the box, at the time
of sale, the Fund owns or has the right to acquire the identical security at no
additional cost through conversion or exchange of other securities it
owns.
Structured
Notes
The Fund may invest
in structured notes. The return of the structured notes in which the Fund may
invest may be linked to equity securities or equity indices or other instruments
or indices (“reference instruments”). These notes differ from other types of
debt securities in several respects. The interest rate or principal amount
payable at maturity may vary based on changes in the value of the equity
security, instrument, or index. A structured note may be positively or
negatively indexed; that is, its value or interest rate may increase or decrease
if the value of the reference instrument increases. Similarly, its value may
increase or decrease if the value of the reference instrument decreases.
Further, the change in the principal amount payable with respect to, or the
interest rate of, a structured note may be a multiple of the percentage change
(positive or negative) in the value of the underlying reference instrument(s).
In addition, structured notes are unrated, meaning that they are not assigned
quality ratings by NRSROs. Due to the differences discussed above, the
subadviser’s decision to invest in structured notes is not subject to a
determination that the notes are of comparable quality to rated debt
obligations.
Private
Investments in Public Equity (“PIPEs”)
A PIPE is an equity
security sold in a private placement that is issued by issuers that have
outstanding, publicly-traded equity securities of the same
class.
Securities
Lending
Consistent with applicable
regulatory requirements, the Fund may lend portfolio securities with a value up
to 33 1∕3% of its total assets to brokers,
dealers and other financial organizations to earn additional income. Loans of
portfolio securities will be collateralized by cash.
Visit our website
at www.pgim.com/investments
13
Investments
in Affiliated and Unaffiliated Funds
The Fund may invest its assets in
affiliated or unaffiliated funds, including exchange-traded funds. The Fund can
invest its free cash balances in short-term bond funds and/or money market funds
to obtain income on short-term cash balances while awaiting attractive
investment opportunities, to provide liquidity in preparation for anticipated
redemptions or for defensive purposes. Such an investment could also allow the
Fund to obtain the benefits of a more diversified portfolio available in the
funds than might otherwise be available through direct investments in those
asset classes, and will subject the Fund to the risks associated with the
particular asset class. The investment results of the portions of the Fund’s
assets invested in the other funds will be based on the investment results of
the other funds. As a shareholder in other funds, the Fund will pay its
proportional share of the expenses of the other funds.
The affiliated
short-term bond funds and certain affiliated money market funds do not pay a
management fee to the investment manager, since the investment manager only
receives reimbursement for its expenses. Thus, shareholders of the Fund are not
paying management fees for both the Fund and the affiliated short-term bond
funds and money market funds.
To the extent the
Fund serves as an underlying investment for other registered funds, the Fund may
be prohibited from investing in certain registered funds and private
funds.
Temporary
Defensive Investments
In response to
adverse market, economic or political conditions, the Fund may take a temporary
defensive position and invest up to 100% of its investable assets in money
market instruments, including short-term obligations of, or securities
guaranteed by, the U.S. Government, its agencies or instrumentalities, or in
high-quality obligations of U.S. or non-U.S. banks and corporations, and may
hold up to 100% of its investable assets in cash or cash equivalents. Although
the subadviser has the ability to take defensive positions, it may choose not to
do so for a variety of reasons, even during volatile market conditions.
Investing heavily in these securities is inconsistent with and limits the Fund's
ability to achieve its investment objective, but may help to preserve the Fund's
assets.
New
Securities and Other Investment Techniques
New types of
securities and other investment and hedging practices are developed from time to
time. The subadviser expects, consistent with the Fund's investment objective
and policies, to invest in such new types of securities and to engage in such
new types of investment practices if the subadviser believes that these
investments and investment techniques may assist the Fund in achieving its
investment objective. In addition to the strategies and securities discussed
above, the Fund may use other strategies or invest in other types
of securities as described in the Statement of Additional Information
(“SAI”). The Fund might not use all of the strategies or invest in all
of the types of securities as described in the Prospectus or in the
SAI.
The table below
summarizes the investment limits applicable to the Fund’s principal investment
strategies and certain non-principal investment strategies.
|
Principal
Strategies: Investment Limits |
|
◾MLP
Investments: At least 80% of investable assets ◾Equity
and Equity-related securities: Up to 100% of investable
assets ◾Fixed
income Obligations: Up to 100% of investable assets ◾Foreign
Securities: Up to 100% of investable
assets |
|
Certain
Non-Principal Strategies: Investment Limits |
|
◾Below
Investment Grade Instruments and Unrated Instruments: Up to 20% of
investable assets ◾ETFs:
Up to 10% of total assets ◾Structured
Notes: Up to 15% of total assets ◾Illiquid
Investments: Up to 15% of net assets ◾Short
Sales: Up to 25% of net assets (not including short sales “against
the box”) ◾Money
Market Instruments: Up to 100% of investable assets on a temporary
basis |
14
PGIM
Jennison MLP Fund
RISKS
OF INVESTING IN THE FUND
The order of the
below risk factors does not indicate the significance of any particular risk
factor.
Credit Risk.
This is the risk that
the issuer, the guarantor, or the insurer of a fixed income security, or the
counterparty to a contract may be unable or unwilling to make timely principal
and interest payments or to otherwise honor its obligations. Additionally, fixed
income securities could lose value due to a loss of confidence in the ability of
the issuer, guarantor, insurer, or counterparty to pay back debt. The lower the
credit quality of a bond, the more sensitive it is to credit
risk.
Cyber
Security Risk. Failures or
breaches of the electronic systems of the Fund, the Fund's manager, subadviser,
distributor, and other service providers, or the issuers of securities in which
the Fund invests have the ability to cause disruptions and negatively impact the
Fund's business operations, potentially resulting in financial losses to the
Fund and its shareholders. While the Fund has established business continuity
plans and risk management systems seeking to address system breaches or
failures, there are inherent limitations in such plans and systems. Furthermore,
the Fund cannot control the cyber security plans and systems of the Fund's
service providers or issuers of securities in which the Fund
invests.
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.
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.
Energy
Sector Risk. The Fund
concentrates its investments in the energy sector, and will therefore be
susceptible to adverse economic, environmental, business, regulatory or other
occurrences affecting that sector. The energy sector has historically
experienced substantial price volatility. Energy companies may have relatively
high levels of debt and may be more likely than other companies to restructure
their businesses if there are downturns in energy markets or in the global
economy. A downturn in the energy sector could have a larger impact on the Fund
than on funds that are broadly diversified across many sectors and industries.
At times, the performance of securities of companies in the energy sector may
lag behind the performance of other sectors or industries or the broader market
as a whole. MLPs and other companies operating in the energy sector are subject
to specific risks, including, among others, fluctuations in commodity prices
which may result from changes in general economic conditions or political
circumstances (especially of key energy producing and consuming countries),
market conditions, weather patterns, domestic production levels, volume of
imports, energy conservation, domestic and foreign governmental regulation,
international politics, policies of the Organization of Petroleum Exporting
Countries (“OPEC”), taxation, tariffs, and the availability and costs of local,
intrastate and interstate transportation methods; 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; and threats of attack by terrorists on energy assets. The energy
sector is highly regulated. Changes in the regulatory environment for energy
companies may adversely impact their profitability. There is an inherent risk
that MLPs and other companies operating in the energy sector may incur
environmental costs and liabilities due to the nature of their businesses and
the substances they handle. Hydraulic fracturing, or “fracking,” is a relatively
new technique for releasing and extracting natural gas trapped in underground
shale formations. The fracking sector is facing allegations from
environmentalists and some landowners that the technique may cause serious
difficulties, which has led to uncertainty about the nature, extent, and cost of
the environmental regulation to which it may ultimately be subject.
Visit our website
at www.pgim.com/investments
15
Equity
and Equity-Related Securities Risk. Equity and
equity-related securities may be subject to changes in value, and their values
may be more volatile than those of other asset classes. In addition to an
individual security losing value, the value of the equity markets or a sector in
which the Fund invests could go down. Different parts of a market can react
differently to adverse issuer, market, regulatory, political and economic
developments.
Exchange-Traded
Funds (“ETFs”) Risk.
Investing in securities issued by ETFs involves risks similar to those of
investing directly in the securities and other assets held by the ETF. Unlike
shares of typical mutual funds, shares of ETFs are generally traded on an
exchange throughout a trading day and bought and sold based on market values and
not at net asset value. For this reason, shares could trade at either a premium
or discount to net asset value, which may be substantial during periods of
market stress. The trading price of an index-based ETF is expected to (but may
not) closely track the net asset value of the ETF, and the Fund will generally
gain or lose value consistent with the performance of the ETF’s portfolio
securities. The Fund will pay brokerage commissions in connection with the
purchase and sale of shares of ETFs. In addition, the Fund will indirectly bear
its pro rata share of the fees and expenses incurred by an ETF (including ETFs
managed by the Manager or the subadviser(s)) in which it invests, including
advisory fees (to the extent not offset by the Manager through waivers). These
expenses are in addition to the advisory and other expenses that the Fund bears
directly in connection with its own operations. An index-based ETF may not
replicate exactly the performance of the benchmark index it seeks to track for a
number of reasons.
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.
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.
Initial
Public Offerings Risk. The volume of IPOs
and the levels at which the newly issued stocks trade in the secondary market
are affected by the performance of the stock market overall. If IPOs are brought
to the market, availability may be limited and if the Fund desires to acquire
shares in such an offering, it may not be able to buy any shares at the offering
price, or if it is able to buy shares, it may not be able to buy as many shares
at the offering price as it would like. The prices of securities involved in
IPOs are often subject to greater and more unpredictable price changes than more
established stocks. Such unpredictability can have a dramatic impact on the
Fund's performance (higher or lower) and any assumptions by investors based on
the affected performance may be unwarranted. In addition, as Fund assets grow,
the impact of IPO investments on performance will decline, which could reduce
total returns.
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
16
PGIM
Jennison MLP Fund
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.Certain of
these entities may use predetermined, nondiscretionary mathematical formulas in
their investment process that may result in large-scale asset flows into and out
of the Fund. These shareholders may also pledge or loan Fund shares (to secure
financing or otherwise), which may result in the shares becoming concentrated in
another party. 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.
Such redemptions may cause the Fund to have to sell securities at inopportune
times or prices. These transactions may adversely affect the Fund’s performance
and increase transaction costs. In addition, large redemption requests may
exceed the cash balance of the Fund and result in credit line borrowing fees
and/or overdraft charges to the Fund until the sales of portfolio securities
necessary to cover the redemption request settle. To the extent a large
shareholder in the Fund is an entity subject to domestic and/or international
regulations governing banking, insurance,
or
other financial institutions, changes in those regulations (e.g., capital
requirements) or in the shareholder’s financial status may cause or require the
shareholder to redeem its investment in the Fund when it otherwise would not
choose to redeem that investment. It is also possible that a significant
redemption could result in an increase in Fund expenses on account of being
spread over a smaller asset base, and therefore make it more difficult for the
Fund to implement its investment strategy. Large redemptions could also result
in tax consequences to shareholders. The Fund’s ability to pursue its investment
objective after one or more large scale redemptions may be impaired and, as a
result, the Fund may invest a larger portion of its assets in cash or cash
equivalents.
Liquidity
Risk.
Liquidity risk is the risk that the Fund could not meet requests to redeem
shares issued by the Fund without significant dilution of remaining investors'
interests in the Fund. The Fund may invest in instruments that trade in lower
volumes and are more illiquid than other investments. If the Fund is forced to
sell these investments to pay redemption proceeds or for other reasons, the Fund
may lose money. In addition, when there is no willing buyer and investments
cannot be readily sold at the desired time or price, the Fund may have to accept
a lower price or may not be able to sell the instrument at all. An inability to
sell a portfolio position can adversely affect the Fund's value or prevent the
Fund from being able to take advantage of other investment
opportunities.
Management Risk.
Actively managed funds
are subject to management risk. The subadviser will apply investment techniques
and risk analyses in making investment decisions for the Fund, but the
subadviser's judgments about the attractiveness, value or market trends
affecting a particular security, industry or sector or about market movements
may be incorrect. Additionally, the investments selected for the Fund may
underperform the markets in general, the Fund's benchmark and other funds with
similar investment objectives.
Market
Disruption and Geopolitical Risks. Market disruption can be caused by
economic, financial or political events and factors, including but not limited
to, international wars or conflicts (including Russia’s military invasion of
Ukraine and the Israel-Hamas war),
geopolitical developments (including trading and tariff arrangements, sanctions
and cybersecurity attacks), instability in regions such as Asia, Eastern Europe
and the Middle East, terrorism, natural disasters and public health epidemics
(including the outbreak of COVID-19 globally).
Visit our website
at www.pgim.com/investments
17
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 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. The Fund’s investment in MLPs also subjects 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, 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
MLPs.
Money
Market Instruments Risk. The value of money
market instruments may be affected by changing interest rates and by changes in
the credit ratings of those instruments. If a significant amount of the Fund's
assets are invested in money market instruments, it will be more difficult for
the Fund to achieve its investment objective.
Non-Diversified
Investment Company Risk. The Fund is
non-diversified for purposes of the 1940 Act. This means that the Fund may
invest a greater percentage of its assets in the securities of a single company
or other issuer than a diversified fund. Investing in a non-diversified fund
involves greater risk than investing in a diversified fund because a loss
resulting from the decline in value of any one security may represent a greater
portion of the total assets of a non-diversified fund.
PIPEs
Risk.
A PIPE is an equity security sold in a private placement that is issued by
issuers that have outstanding, publicly-traded equity securities of the same
class. Shares sold in PIPEs transactions generally are not registered with the
Securities and Exchange Commission (“SEC”) until after a certain time period
from the date the private sale is completed. This restricted period can last
many months. Until the public registration process is completed, PIPEs are
restricted as to resale and the Fund cannot freely trade the securities.
Generally, such restrictions cause the PIPEs to be illiquid during this time.
PIPEs may contain provisions that the issuer will pay specified financial
penalties to the holder if the issuer does not publicly register the restricted
equity securities within a specified period of time, but there is no assurance
that the restricted equity securities will be publicly registered, or that the
registration will remain in effect.
18
PGIM
Jennison MLP Fund
Repurchase
Agreements Risk. Repurchase
agreements could involve certain risks in the event of default or insolvency of
the seller, including losses and possible delays or restrictions upon the Fund’s
ability to dispose of the underlying securities. To the extent that, in the
meantime, the value of the securities that the Fund has purchased has decreased,
the Fund could experience a loss.
Securities
Lending Risk.
Securities lending involves the risk that the borrower may fail to return the
securities in a timely manner or at all. As a result, the Fund may lose money
and there may be a delay in recovering the loaned securities. Additionally,
losses could result from the reinvestment of collateral received on loaned
securities in investments that decline in value, default, or do not perform as
well as expected. These events could trigger adverse tax consequences for the
Fund.
Short
Sales Risk. Short sales
involve costs and risks. The Fund must pay the lender interest on the security
it borrows, and the Fund will lose money to the extent that the price of the
security increases between the time of the short sale and the date when the Fund
replaces the borrowed security. Although the Fund’s gain is limited to the price
at which it sold the securities short, its potential loss is limited only by the
maximum attainable price of the securities, less the price at which the security
was sold and may, theoretically, be unlimited. The Fund may also make short
sales “against the box.” When selling short against the box, the Fund gives up
the opportunity for capital appreciation in the security.
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.
Small,
Unseasoned Issuers Risk. Securities of unseasoned issuers
may have a limited trading market, which may adversely affect their disposition
and can result in their being priced lower than might otherwise be the case. It
may be difficult to obtain reliable information and financial data on such
companies and the securities of these small companies may not be readily
marketable, making it difficult to dispose of shares when desirable. Smaller
emerging companies often are at an earlier stage of development and therefore
have limited product lines, market access for such products, financial resources
and depth in management as compared to larger, more established companies, and
their securities may be subject to more abrupt or erratic market movements than
securities of larger, more established companies or the market averages in
general. In addition, certain smaller issuers may face difficulties in obtaining
the capital necessary to continue in operation and may go into bankruptcy, which
could result in a complete loss of an investment. Smaller companies also may be
less significant factors within their industries and may have difficulty
withstanding competition from larger companies. If other investment companies
and investors who invest in such issuers trade the same securities when the Fund
attempts to dispose of its holdings, the Fund may receive lower prices than
might otherwise be obtained. While smaller companies may be subject to these
additional risks, they may also realize more substantial growth than larger,
more established companies obtained.
Structured
Securities Risk. Structured
securities are subject to credit risk, which is the risk that the underlying
receivables will not be paid by debtors or by credit issuers or guarantors of
such instruments. A decline or increase in the value of the reference instrument
may cause the interest rate to be reduced to zero, and any further declines or
increases in the reference instrument may then reduce the principal amount
payable on maturity, and the percentage by which the value of a structured note
decreases may be far greater than the percentage by which the value of the
reference instrument increases or decreases. Structured securities may entail a
greater degree of market risk because the investor bears the risk of the
reference instrument. Structured securities may also be more volatile, less
liquid, and more difficult to accurately price than less complex securities. The
secondary market for structured securities could be illiquid, making them
difficult to sell when the Fund determines to sell them. The possible lack of a
liquid secondary market for structured securities and the resulting inability of
the Fund to sell a structured security could expose the Fund to losses and could
make structured securities more difficult for the Fund to value
accurately.
Visit our website
at www.pgim.com/investments
19
Tax
Risk.
The Fund’s investment policies involve complicated and in some cases unsettled
accounting, tax and valuation issues that may result in unexpected and
potentially significant consequences for the Fund and its shareholders. Tax
risks associated with investments in the Fund include but are not limited to the
following:
MLP
Tax Risk. A change in
current tax law or a change in the underlying business mix of a given MLP could
result in the MLP being treated as a corporation rather than a partnership for
U.S. federal income tax purposes, which would result in the MLP being required
to pay U.S. federal income tax (as well as state and local income taxes) on its
taxable income. This would have the effect of reducing the amount of cash
available for distribution by the MLP and could result in a reduction in the
value of the Fund’s investment in the MLP and lower income to the
Fund.
Fund
Structure Risk. Unlike
traditional mutual funds that are structured as regulated investment companies
for U.S. federal income tax purposes, the Fund will be taxable as a regular
corporation, or “C” corporation, for U.S. federal income tax purposes. This
means the Fund generally will be subject to U.S. federal income tax on its
taxable income at the rates applicable to corporations (currently a flat rate of
21%) and will also be subject to state and local income taxes. The 20% deduction
for “qualified business income” and certain other items of income will not be
available to Fund shareholders, but might be available to an individual
investing directly in an MLP.
Tax
Estimation/NAV Risk. In calculating the
Fund’s daily net asset value (NAV), the Fund will, among other things, account
for its current taxes and deferred tax liability and/or asset balances. Any
deferred tax liability balance will reduce the Fund’s NAV, and any deferred tax
asset balance (reduced by any valuation allowance) will increase the Fund’s NAV.
To estimate these amounts, the Fund will rely to some extent on information
provided by MLPs, which may not be provided on a timely basis. The daily
estimate of these amounts could vary dramatically from the Fund’s actual tax
liability or benefit, and, as a result, the determination of the Fund’s actual
tax liability or benefit may have a material impact on the Fund’s NAV. From time
to time, the Fund may modify its estimates or assumptions regarding its current
taxes and deferred tax liability and/or asset balances as new information
becomes available, which modifications in estimates or assumptions may have a
material impact on the Fund’s NAV.
Shareholders who
redeem their shares at a NAV that is based on estimates of the Fund’s current
taxes and deferred tax liability and/or asset balances may benefit at the
expense of remaining shareholders (or remaining shareholders may benefit at the
expense of redeeming shareholders) if the estimates are later revised or
ultimately differ from the Fund’s actual tax liability and/or asset
balances.
As an investor in
MLPs, the Fund includes in its taxable income its allocable share of the MLPs’
income, gains, losses, deductions and credits, regardless of whether they
distribute any cash to the Fund. Historically, distributions from MLPs exceed
their taxable income. As a limited partner or member of an MLP, the Fund incurs
current tax liability on its allocable share of an MLP’s income and gains that
is not offset by tax deductions, losses and credits, or the Fund’s net operating
loss carryforwards, if any. The portion, if any, of a distribution received by
the Fund as the holder of an MLP equity security that is offset by the MLP’s tax
deductions or losses generally will be treated as a return of capital. Return of
capital distributions from an MLP reduce the Fund’s adjusted tax basis in the
MLP, increasing the amount of income or gain (or decreasing the amount of loss)
recognized by the Fund for tax purposes upon the sale of the MLP or upon
subsequent distributions. The percentage of an MLP’s income and gains that is
offset by tax deductions, losses and credits will fluctuate over time for
various reasons. A significant slowdown in acquisition activity or capital
spending by MLPs held in the Fund’s portfolio could result in a reduction of
accelerated depreciation generated by new acquisitions, which may result in
increased current tax liability for the Fund. The final portion of the
distributions received by the Fund that are considered return of capital will
not be known until the Fund receives a Schedule K-1 with respect to each of its
MLP investments. The Fund’s tax liability will not be known until the Fund
completes its annual tax return. The Fund’s tax estimates could vary
substantially from the actual liability and therefore the determination of the
Fund’s actual tax liability may have a material impact on the Fund’s NAV. The
payment of corporate income taxes imposed on the Fund will decrease cash
available for distribution to shareholders.
To the extent the
Fund has a deferred tax asset balance, the Fund will assess, in accordance with
generally accepted accounting principles, whether a valuation allowance, which
would offset the value of some or all of the Fund’s deferred tax asset balance,
is required. Pursuant to Financial Accounting Standards Board Accounting
Standards Codification
20
PGIM
Jennison MLP Fund
740 (FASB ASC 740),
the Fund will assess a valuation allowance to reduce some or all of the deferred
tax asset balance if, based on the weight of all available evidence, both
negative and positive, it is more likely than not that some or all of the
deferred tax asset will not be realized. The Fund will use judgment in
considering the relative impact of negative and positive evidence. The weight
given to the potential effect of negative and positive evidence will be
commensurate with the extent to which such evidence can be objectively verified.
The Fund’s assessment considers, among other matters, the nature, frequency and
severity of current and cumulative losses, forecasts of future profitability
(which are dependent on, among other factors, future MLP cash distributions),
the duration of statutory carry forward periods and the associated risk that
operating loss carryforwards may be limited or expire unused. However, this
assessment generally may not consider the potential for market value increases
with respect to the Fund’s investments in equity securities of MLPs or any other
securities or assets. Recovery of a deferred tax asset is dependent on continued
payment of the MLP cash distributions at or near current levels in the future
and the resultant generation of taxable income. The Fund will assess whether a
valuation allowance is required to offset some or all of any deferred tax asset
in connection with the calculation of the Fund’s NAV per share each day;
however, to the extent the final valuation allowance differs from the estimates
of the Fund used in calculating the Fund’s daily NAV, the application of such
final valuation allowance could have a material impact on the Fund’s
NAV.
Distribution
Risk.
Due to the tax characterization of distributions made by MLPs, the Fund expects
that a significant portion of its distributions will consist of return of
capital for U.S. federal tax purposes. Additionally, to the extent that the
Fund's distributions to shareholders approximately equal the distribution rate
that the Fund receives from the Fund's MLP investments and the other securities
in which the Fund invests, including any income (without any deduction for Fund
expenses), a larger portion of the Fund's distributions to shareholders will
consist of return of capital for U.S. federal tax purposes than the
distributions the Fund receives from the MLPs. Generally, a fund distribution
will constitute return of capital, rather than a qualified or other taxable
dividend, to the extent that it exceeds the Fund's current and accumulated
earnings and profits. Return of capital reduces a shareholder's adjusted cost
basis in the Fund's shares, impacting the amount of any capital gains or loss
realized by the shareholder upon selling the Fund's shares. Once a shareholder's
adjusted cost basis has been reduced to zero (due to return of capital), any
further distributions will be treated as capital gains.
Please note that,
in addition to the risks discussed above, there are many other factors that may
impact the Fund’s ability to achieve its investment objective and which could
result in a loss of all or a part of your investment.
More information
about the Fund’s investment strategies and risks appears in the SAI.
Visit our website
at www.pgim.com/investments
21
HOW THE FUND IS
MANAGED
BOARD
OF TRUSTEES
The Fund is
overseen by a Board of Trustees (hereafter referred to as “Trustees,” or the
“Board”). The Board oversees the actions of the Manager, subadviser and
distributor and decides on general policies. The Board also oversees the Fund's
officers, who conduct and supervise the daily business operations of the
Fund.
MANAGER
PGIM
Investments LLC (“PGIM Investments”)
655 Broad Street
Newark, NJ 07102-4410
655 Broad Street
Newark, NJ 07102-4410
Under a management agreement with
the Fund, PGIM Investments manages the Fund's investment operations and
administers its business affairs and is responsible for supervising the Fund's
subadviser. For the fiscal year ended November 30, 2023, the Fund paid PGIM
Investments management fees (net of waivers, as applicable) at the effective
rate of 1.00% of the Fund’s average daily net assets.
PGIM Investments and its
predecessors have served as a manager or administrator to investment companies
since 1987. As of November 30, 2023, PGIM Investments, a wholly-owned subsidiary
of Prudential Financial, Inc. (“Prudential”), served as the investment manager
to all of the Prudential U.S. and offshore open-end investment companies, and as
the manager or administrator to closed-end investment companies, with aggregate
assets of approximately $287.1 billion.
Subject to the
supervision of the Board, PGIM Investments is responsible for conducting the
initial review of prospective subadvisers for the Fund. In evaluating a
prospective subadviser, PGIM Investments considers many factors, including the
firm's experience, investment philosophy and historical performance. Subject to
the Board’s oversight, PGIM Investments is also responsible for monitoring the
performance of the Fund's subadviser and recommending its termination and
replacement when deemed appropriate. PGIM Investments may provide a subadviser
with additional investment guidelines consistent with the Fund's investment
objective and restrictions.
PGIM Investments
and the Fund operate under an exemptive order (the “Order”) from the SEC that
generally permits PGIM Investments to enter into or amend agreements with
unaffiliated subadvisers and certain subadvisers that are affiliates of PGIM
Investments without obtaining shareholder approval. This authority is subject to
certain conditions, including the requirement that the Board must approve any
new or amended agreements with a subadviser. Shareholders of the Fund still have
the right to terminate these agreements at any time by a vote of the majority of
the outstanding shares of the Fund. The Fund will notify shareholders of any new
subadvisers engaged or material amendments to subadvisory agreements made
pursuant to the Order. Any new subadvisory agreement or amendment to the Fund’s
management agreement or current subadvisory agreement that directly or
indirectly results in an increase in the aggregate management fee rate payable
by the Fund will be submitted to the Fund’s shareholders for their approval.
PGIM Investments does not currently intend to retain unaffiliated
subadvisers.
A discussion of the
basis for the Board's approvals of the management and subadvisory agreements is
available in the Fund's Annual Report to shareholders dated November
30.
SUBADVISER
Jennison
Associates LLC (“Jennison”) is a wholly-owned subsidiary of
PGIM, Inc., which is an indirect wholly-owned subsidiary of Prudential. Its
address is 466 Lexington Avenue, New York, New York 10017. PGIM Investments has
responsibility for all investment advisory services, supervises Jennison and
pays Jennison for its services. As of December 31, 2023, Jennison managed in
excess of $194.1 billion in assets. Jennison (including its predecessor,
Jennison Associates Capital Corp.) is a registered investment adviser founded in
1969.
22
PGIM
Jennison MLP Fund
PORTFOLIO
MANAGERS
Ubong
“Bobby” Edemeka, Shaun
Hong, CFA, and
Stephen J. Maresca, CFA, are jointly
and primarily responsible for the day-to-day management of the
Fund.
Ubong
“Bobby” Edemeka is a Managing
Director and an income and infrastructure and utility and master limited
partnership portfolio manager. He joined Jennison in March 2002. Prior to
joining Jennison, Mr. Edemeka was with Goldman Sachs as a sell-side research
analyst on the U.S. Power & Utilities team. Prior to that, he was an analyst
on the global utilities team at SSB Citi Asset Management Group. Mr. Edemeka
began his career as an analyst for the Prudential Utility Fund (now PGIM
Jennison Utility Fund). Mr. Edemeka earned a BA in government from Harvard
University.
Shaun
Hong, CFA, is a Managing
Director and an income and infrastructure and utility and master limited
partnership portfolio manager. He joined Prudential (now PGIM) in 1999 as an
analyst in Prudential's public equity unit responsible for the power, natural
gas, and telecommunications industries, and in September 2000 when Prudential’s
public equity asset management capabilities were transferred to Jennison, he
joined Jennison. Prior to joining Prudential, Mr. Hong was a research analyst at
Equinox Capital Management where he covered the utility, consumer products,
commodities, and technology sectors. Mr. Hong began his career as a research
analyst covering telecommunications and technology companies at Parker/Hunter.
He earned a BS in industrial management from Carnegie Mellon University and he
holds the Chartered Financial Analyst (CFA) designation.
Stephen
J. Maresca, CFA, is a Managing
Director, a master limited partnership portfolio manager, and an income and
infrastructure research analyst. He joined Jennison in July 2014. Prior to
joining Jennison, Mr. Maresca was a managing director and equity research
analyst covering master limited partnerships (MLPs) and diversified natural gas
at Morgan Stanley for six years. Prior to that, he covered energy MLPs for UBS.
Mr. Maresca began his financial services career in 1997 as a treasury funding
analyst with PaineWebber & Company. He earned a BS in accounting from
Providence College and he holds the Chartered Financial Analyst (CFA)
designation.
The portfolio
managers for the Fund are supported by other Jennison portfolio managers,
research analysts and investment professionals. Team members conduct research,
make securities recommendations and support the portfolio managers in all
activities. Members of the team may change from time to time.
Additional
information about portfolio manager compensation, other accounts managed, and
portfolio manager ownership of Fund securities may be found in the
SAI.
DISTRIBUTOR
Prudential
Investment Management Services LLC (“PIMS” or the “Distributor”) distributes
each class of the Fund's shares under a Distribution Agreement with the Fund.
The Fund has Distribution and Service Plans (the “Plans”) pursuant to Rule 12b-1
under the Investment Company Act of 1940, as amended (the “1940 Act”),
applicable to certain of the Fund's shares. Under the Plans and the Distribution
Agreement, the Distributor pays the expenses of distributing the shares of all
share classes of the Fund. The Distributor also provides certain shareholder
support services. Under the Plans, certain classes of the Fund pay distribution
and other fees to the Distributor as compensation for its services. These
fees—known as 12b-1 fees—are set forth in the “Fund Fees and Expenses”
tables.
Because these fees
are paid from the Fund's assets on an ongoing basis, over time these fees will
increase the cost of your investment and may cost you more than paying other
types of sales charges.
DISCLOSURE
OF PORTFOLIO HOLDINGS
The Fund's policies
and procedures with respect to the disclosure of the Fund's portfolio securities
are described in the Fund's SAI and on the Fund's website at www.pgim.com/investments.
Visit our website
at www.pgim.com/investments
23
FUND
DISTRIBUTIONS AND TAX ISSUES
DISTRIBUTIONS
Due to the tax
characterization of distributions made by MLPs, the Fund expects that a
significant portion of its distributions will consist of return of capital for
US federal tax purposes. Additionally, to the extent that the Fund's
distributions to shareholders approximately equal the distribution rate that the
Fund receives from the Fund's MLP investments and the other securities in which
the Fund invests, including any income (without any deduction for Fund
expenses), a larger portion of the Fund's distributions to shareholders will
consist of return of capital for US federal tax purposes than the distributions
the Fund receives from the MLPs. To permit the Fund to maintain a more stable
distribution rate, from time to time the Fund may distribute less or more than
the entire amount of cash it receives from its investments in a particular
period. Any undistributed cash would be available to supplement future
distributions, and until distributed would add to the Fund’s net asset value.
Correspondingly, such amounts, once distributed, will be deducted from the
Fund’s net asset value. This practice may impact the amount that is a return of
capital for certain Fund distributions.
Generally, the
Fund's distributions will constitute returns of capital, rather than qualified
or other taxable dividends, to the extent that they exceed the Fund's current
and accumulated earnings and profits. Return of capital reduces a shareholder's
adjusted cost basis in the Fund's shares, impacting the amount of any capital
gains or loss realized by the shareholder upon selling the Fund's shares. Once a
shareholder's adjusted cost basis has been reduced to zero (due to return of
capital), any further distributions will be treated as capital gains. To the
extent that the distributions paid by the Fund to shareholders exceed the
distributions the Fund receives, over time the Fund's assets will decline, which
may also result in an increase in the Fund's expense ratio and a reduction in
the Fund's net asset value.
The Fund is not
required to maintain a stable distribution rate and/or make distributions that
approximately equal the distribution rate that the Fund receives from its
investments, including any income, and may decide to discontinue such payments
or to change the distribution rate without providing shareholders prior
notice.
When you purchase
shares of the Fund, part of the NAV per share may be represented by
undistributed income and/or realized gains that have previously been earned by
the Fund. Therefore, subsequent distributions on such shares from such income
and/or realized gains may be taxable to you even if the NAV of the shares is, as
a result of the distributions, reduced below the cost of such shares and the
distributions (or portions thereof) represent a return of a portion of the
purchase price.
For your convenience, the Fund's
dividends and other distributions are automatically reinvested in the Fund
without any sales charge. If you ask us to pay the distributions in cash, we
will send you a check if your account is with Prudential Mutual Fund Services
LLC (PMFS or the Transfer Agent). Otherwise, if your account is with a broker,
you will receive a credit to your account. Either way, the distributions may be
subject to income taxes unless your shares are held in a qualified or
tax-deferred plan or account. If your dividend distribution check(s) remains
uncashed for more than six months, your check(s) may be invested in additional
shares of the Fund at the next net asset value (“NAV”) calculated on the day of the
investment. For more information about automatic reinvestment and other
shareholder services, see “Additional Shareholder Services” in the next section.
Unless requested otherwise by you, dividends and other distributions will be
automatically reinvested in additional shares of the Fund at the NAV per share
in effect on the day after the record date.
24
PGIM
Jennison MLP Fund
The chart below
sets forth the expected frequency of distributions to shareholders. Various
factors may impact the frequency of distributions to shareholders, including but
not limited to adverse market conditions or portfolio holding-specific
events.
|
Expected
Distribution Schedule |
|
|
Distributions |
Quarterly |
TAX
ISSUES
The following
briefly discusses some of the important income tax issues you should be aware
of, but is not meant to be tax advice. For tax advice, please speak with your
tax adviser.
Federal
Income Taxation of the Fund.
Although the
Internal Revenue Code generally provides that a regulated investment company
does not pay an entity-level income tax, provided that it distributes all or
substantially all of its income, the Fund does not meet current tests for
qualification as a regulated investment company under Subchapter M of the
Internal Revenue Code because of the fact that most or substantially all of the
Fund’s investments will consist of investments in certain MLPs intended to be
treated as partnerships for federal income tax purposes. The regulated
investment company tax rules therefore do not apply to the Fund or to its
shareholders. As a result, the Fund is treated as a corporation for federal and
state income tax purposes, and will pay federal and state income tax on its
taxable income.
The Fund invests
primarily in MLPs, which generally are intended to be treated as partnerships
for federal income tax purposes. As a partner in the MLPs, the Fund must report
its allocable share of the MLPs’ taxable income or loss in computing the Fund’s
taxable income or loss, regardless of the extent (if any) to which the MLPs make
distributions. Based upon a review of the historic results of the type of MLPs
in which the Fund intends to invest, the Fund expects that the cash flow
received by the Fund with respect to its MLP investments will generally exceed
the taxable income allocated to the Fund (and this excess generally will not be
currently taxable to the Fund but, rather, will result in a reduction of the
Fund’s adjusted tax basis in each MLP as described in the following paragraph).
This is the result of a variety of factors, including significant non-cash
deductions, such as accelerated depreciation. Past performance is not
necessarily an indication of future results and there is no assurance that the
Fund’s expectation regarding the tax character of MLP distributions will be
realized. If this expectation is not realized and cash distributions are less
than the taxable income allocated to the Fund, there may be greater tax expense
borne by the Fund and less cash available to distribute to shareholders or to
pay to expenses.
The Fund will be subject to U.S.
federal income tax at the regular corporate income tax rates on the Fund’s share
of any taxable income from investment in MLPs and on any other investment and on
gain recognized by the Fund on any sale of equity securities of an MLP or of
other Fund investments. As explained above, cash distributions from an MLP to
the Fund that exceed the Fund’s allocable share of such MLP’s net taxable income
will reduce the Fund’s adjusted tax basis in the equity securities of the MLP.
These reductions in the Fund’s adjusted tax basis in the MLP equity securities
will increase the amount of gain (or decrease the amount of loss) recognized by
the Fund on a subsequent sale of the securities of an MLP. In addition, as a
regular corporation, the Fund is subject to state and local income taxes due to
the activities of the MLPs in various states. The Fund may have state and local
income tax liabilities in multiple states, reducing the Fund's cash available to
make distributions on the shares. The extent to which the Fund is required to
pay U.S. corporate income tax could materially reduce the Fund's cash available
to make distributions.
Receipt
of Distributions. Distributions made
to you by the Fund (other than distributions in redemption of shares subject to
Section 302(b) of the Internal Revenue Code) will generally constitute taxable
dividends to the extent of your allocable share of the Fund’s current or
accumulated earnings and profits, as calculated for federal income tax purposes,
unless you hold your shares in a 401(k) plan, an Individual Retirement Account
(IRA) of some other qualified or tax-deferred plan or account. Generally, a
corporation’s earnings and profits are computed based upon taxable income, with
certain specified adjustments. As explained above, the Fund anticipates that the
distributed cash from the MLPs generally will exceed the Fund’s share of the
MLPs’ taxable income. Consequently, the Fund anticipates that only a portion, if
any, of the Fund’s distributions will be treated as dividend income to you. To
the extent that
Visit our website
at www.pgim.com/investments
25
distributions to
you exceed your allocable share of the Fund’s current and accumulated earnings
and profits, your basis in the Fund’s shares with respect to which the
distribution is made will be reduced, which will increase the amount of gain (or
decrease the amount of loss) realized upon a subsequent sale or redemption of
such shares. To the extent you hold such shares as a capital asset and have no
further basis in the shares to offset the distribution, you will report the
excess as capital gain.
Because the Fund
will invest a substantial portion of its assets in MLPs, special rules will
apply to the calculation of the Fund’s earnings and profits. For example, the
Fund’s earnings and profits will be calculated using the straight-line
depreciation method rather than the accelerated depreciation method. This
difference in treatment may, for example, result in the Fund’s earnings and
profits being higher than the Fund’s taxable income in a particular year if the
MLPs in which the Fund invests calculate their income using accelerated
depreciation. Because of these differences, the Fund may make distributions in a
particular year out of earnings and profits (treated as dividends) in excess of
the amount of the Fund’s taxable income for such year. Also, MLPs may eventually
exhaust their available depreciation, unless they invest in additional
capital.
Distributions to
you from the Fund treated as taxable dividends under the foregoing rules
generally will be taxable as ordinary income to you but are generally expected
to be treated as “qualified dividend income” to eligible taxpayers. Qualified
dividend income received by individuals and other noncorporate shareholders is
taxed at long-term capital gain rates, which currently reach a maximum of 15%,
or, for certain high income individuals, 20%. For a dividend to constitute
qualified dividend income, the shareholder generally must hold the shares paying
the dividend for more than 60 days during the 121-day period beginning 60 days
before the ex-dividend date, although a longer period may apply if the
shareholder engages in certain risk reduction transactions with respect to the
common stock.
In addition to
constituting qualified dividend income to noncorporate investors, such dividends
are expected to be eligible for the dividends received deduction available to
corporate shareholders of the Fund under Section 243 of the Internal Revenue
Code. However, corporate shareholders of the Fund should be aware that certain
limitations apply to the availability of the dividends received deduction,
including rules which limit the deduction in cases where (i) certain holding
period requirements are not met, (ii) a corporate shareholder of the Fund is
obligated (e.g., pursuant to a short sale) to make related payments with respect
to positions in substantially similar or related property, or (iii) the
corporate shareholder’s investment in shares of the Fund is financed with
indebtedness. Corporate shareholders of the Fund should consult their own tax
advisors regarding the application of these limitations to their particular
situations.
The Fund will
recognize gain or loss on the sale, exchange or other taxable disposition of an
MLP interest or other investment based upon the amount realized and the Fund’s
adjusted tax basis in such MLP or other investment. Any such gain will be
subject to U.S. federal income tax at the corporate rates (currently at a flat
rate of 21%), regardless of how long the Fund has held the MLP or other
investment. The amount realized by the Fund generally will be the amount paid by
the purchaser of the equity security plus the Fund’s allocable share, if any, of
the MLP’s debt that will be allocated to the purchaser as a result of the sale,
exchange or other taxable disposition. The Fund’s tax basis in an MLP is
generally equal to the amount the Fund paid for the equity securities, increased
by the Fund’s allocable share of the MLP’s net taxable income and certain MLP
nonrecourse debt, if any, and decreased by the Fund’s allocable share of the
MLP’s net losses and any distributions received by the Fund from the MLP.
Although any distribution by an MLP to the Fund in excess of the Fund’s
allocable share of such MLP’s net taxable income may create a temporary economic
benefit to the Fund, such distribution will increase the amount of gain (or
decrease the amount of loss) that will be recognized on the sale of an equity
security in the MLP by the Fund. If the Fund is required to sell equity
securities in the MLPs or other investments to meet redemption requests, the
Fund likely will recognize ordinary income and/or gain for U.S. federal income
tax purposes, which will result in corporate income taxes imposed on the Fund
and decrease cash available for distribution to shareholders. To the extent that
the Fund has a net capital loss in any tax year, the net capital loss can be
carried back three years and forward five years to reduce the Fund’s capital
gains, subject to certain limitations. In the event a capital loss carryover
cannot be utilized in the carryover periods, the Fund’s U.S. federal income tax
liability may be higher than expected, which will result in less cash available
to distribute to shareholders.
26
PGIM
Jennison MLP Fund
If you participate
in the Fund’s automatic dividend reinvestment plan, upon the Fund’s payment of a
dividend or other distribution to you, you will be treated for federal income
tax purposes as receiving a taxable distribution or a return of capital
distribution from the Fund in an amount equal to the fair market value of the
shares issued to you under the plan. The portion of such a distribution that is
treated as dividend income will be determined under the rules described
above.
Redemptions
and Sales of Shares. A redemption of
common shares will be treated as a sale or exchange of such shares, provided the
redemption: (i) is not essentially equivalent to a dividend; (ii) is a
substantially disproportionate redemption; (iii) is a complete redemption
of a shareholder’s entire interest in the Fund; or (iv) is in partial
liquidation of the Fund. Redemptions that do not qualify for sale or exchange
treatment will be treated as described in “Receipt of Distributions”
above.
Upon a redemption
treated as a sale or exchange under the foregoing rules, or upon a sale of your
shares to a third party, you generally will recognize capital gain or loss equal
to the difference between the cost of your shares and the amount you receive
when you sell them. Any such capital gain or loss will be a long-term capital
gain or loss if you held the shares for more than one year at the time of
disposition. Long-term capital gains of noncorporate shareholders of the Fund
(including individuals) are currently subject to U.S. federal income taxation at
a maximum rate of 15%, or, for certain high income individuals, 20%. The
deductibility of capital losses for both corporate and non-corporate
shareholders of the Fund is subject to limitations under the Internal Revenue
Code.
Medicare
Contribution Tax. A U.S. shareholder
that is an individual, estate or certain type of trust is subject to a 3.8%
Medicare contribution tax on the lesser of (1) the U.S. shareholder’s “net
investment income,” including Fund distributions and net gains from the
disposition of Fund shares, and (2) the excess of the U.S. shareholder’s
modified adjusted gross income for the taxable year over $200,000 (or $250,000
for married couples filing jointly). For this purpose, net investment income
includes interest, dividends, annuities, royalties, capital gain and income from
a passive activity business or a business of trading in financial instruments or
commodities.
Investment
by Tax-Exempt Investors and Regulated Investment Companies. Employee benefit
plans and most other organizations exempt from federal income tax, including
individual retirement accounts and other retirement plans, are subject to
federal income tax on their unrelated business taxable income, or UBTI. Because
the Fund is a corporation for federal income tax purposes, an owner of the
Fund’s shares will not report on its federal income tax return any items of
income, gain, loss and deduction that are allocated to the Fund from the MLPs in
which the Fund invests. Moreover, dividend income from, and gain from the sale
of, corporate stock generally does not constitute UBTI unless the corporate
stock is debt-financed. Therefore, a tax-exempt investor will not have UBTI
attributable to its ownership, sale, or the redemption of the Fund’s shares
unless its ownership is debt-financed. In general, shares are considered to be
debt-financed if the tax-exempt owner of the shares incurred debt to acquire the
shares or otherwise incurred a debt that would not have been incurred if the
shares had not been acquired. Similarly, the income and gain realized from an
investment in the Fund’s shares by an investor that is a regulated investment
company will constitute qualifying income for the regulated investment
company.
Form
1099
For every year the
Fund declares a dividend, you will receive a Form 1099, which reports the amount
of taxable dividends and returns of capital we distributed to you during the
prior year unless you own shares of the Fund as part of a qualified or
tax-deferred plan or account. Shareholders may receive a corrected Form 1099 as
necessary. If you do own shares of the Fund as part of a qualified or
tax-deferred plan or account, your taxes are deferred, so you will not receive a
Form 1099 annually, but instead you will receive a Form 1099 when you take any
distribution from your qualified or tax-deferred plan or account.
Fund distributions
are generally taxable to you in the calendar year in which they are
received.
Visit our website
at www.pgim.com/investments
27
Cost
Basis Reporting
The Fund must
report cost basis information to you and the IRS when you redeem shares acquired
in your non-retirement accounts. The cost basis regulations do not affect
retirement accounts, such as a 401(k) plan or an individual retirement plan. The
cost basis regulations also require the Fund to report whether a gain or loss is
short-term (shares held one year or less) or long-term (shares held more than
one year).
Withholding
Taxes
If federal tax law
requires you to provide the Fund with your taxpayer identification number and
certifications as to your tax status and you fail to do this, or if you are
otherwise subject to backup withholding, we will withhold and pay to the U.S.
Treasury a portion of your distributions and sale proceeds, based on the backup
withholding rate.
Taxation
of Non-U.S. Shareholders
For a discussion
regarding the taxation of non-U.S. shareholders, please see the SAI and contact
your tax adviser.
If
You Purchase on or Before a Record Date
If you buy shares
of the Fund on or before the record date for a distribution (the date that
determines who receives the distribution), we will pay that distribution to you.
As explained above, the distribution may be subject to taxes. You may think
you've done well since you bought shares one day and soon thereafter received a
distribution. That is not so, because when dividends are paid out, the value of
each share of the Fund decreases by the amount of the dividend to reflect the
payout, although this may not be apparent because the value of each share of the
Fund also will be affected by market changes, if any. However, the timing of
your purchase does mean that part of your investment may have come back to you
as taxable income.
Qualified
and Tax-Deferred Retirement Plans
Retirement plans
and accounts allow you to defer paying taxes on investment income and capital
gains. Contributions to these plans may also be tax-deductible, although
distributions from these plans generally are taxable. In the case of Roth IRA
accounts, contributions are not tax-deductible, but distributions from the plan
may be tax-free. Please contact your financial adviser for information on a
variety of PGIM Funds that are suitable for retirement plans offered by
Prudential.
IF
YOU SELL OR EXCHANGE YOUR SHARES
If you sell any
shares of the Fund for a profit, you have realized a capital gain, which is
subject to tax unless the shares are held in a qualified or tax-deferred plan or
account. As mentioned above, the maximum capital gains tax rate is up to 15% or
20% for individuals, depending on whether their incomes exceed certain threshold
amounts, which are adjusted annually for inflation.
If you sell shares of the Fund at a
loss, you may have a capital loss, which you may use to offset capital gains you
have, plus, in the case of non-corporate taxpayers, ordinary income of up to
$3,000. If you sell shares and realize a loss, you will not be permitted to use
the loss to the extent you replace the shares (including pursuant to the
reinvestment of a dividend) within a 61-day period (beginning 30 days before and
ending 30 days after the sale of the shares). Under certain circumstances, if
you acquire shares of the Fund and sell or exchange your shares within 90 days,
you may not be allowed to include certain charges incurred in acquiring the
shares for purposes of calculating gain or loss realized upon the sale or
exchange of the shares.
If you exchange
your Fund shares for shares of another class of the Fund, this is generally not
a taxable event and should not result in realization of a capital gain or loss
by you. If you exchange your shares of the Fund for shares of another PGIM Fund,
this is considered a sale for tax purposes. In other words, it's a taxable
event. Therefore, if the
28
PGIM
Jennison MLP Fund
shares you
exchanged have increased in value since you purchased them, you have capital
gains, which are subject to the taxes described above. Unless you hold your
shares in a qualified or tax-deferred plan or account, you or your financial
adviser should keep track of the dates on which you buy and sell—or
exchange—Fund shares, as well as the amount of any gain or loss on each
transaction. For tax advice, please see your tax adviser.
Automatic
Conversion of Class C Shares
The conversion of
Class C shares into Class A shares—which happens automatically approximately 8
years after purchase—is not a taxable event for federal income tax purposes. For
more information about the automatic conversion of Class C shares, see
Class
C Shares Automatically Convert to Class A Shares in How
to Buy, Sell and Exchange Fund Shares.
Visit our website
at www.pgim.com/investments
29
HOW TO BUY, SELL
AND EXCHANGE FUND SHARES
HOW
TO BUY SHARES
In order to buy
Fund shares, simply follow the steps described below.
Opening
an Account
Shares may be
purchased through an account with the Transfer Agent, or through an account with
a financial intermediary that has an agreement with the Distributor to sell Fund
shares. In order to open an account with the Transfer Agent contact PMFS at
(800)
225-1852 or write
to:
Prudential
Mutual Fund Services LLC (“PMFS”)
P.O. Box 534432
Pittsburgh, PA 15253-4432
P.O. Box 534432
Pittsburgh, PA 15253-4432
PMFS will accept
purchases of shares by check or wire. We do not accept cash, money orders,
non-U.S. checks, credit card checks, payable through checks or travelers checks.
To purchase by wire, call the number above to obtain an application. After PMFS
receives your completed application, you will receive an account number. For
additional information, see the back cover page of this Prospectus. Your
purchase order must be in good order to be accepted and processed, which means
that all necessary processing requirements have been satisfied. We have the
right to reject any purchase order (including an exchange into the Fund) or
suspend or modify the Fund's sales of its shares under certain circumstances.
These circumstances include, but are not limited to, failure by you to provide
additional information requested, such as information required to verify the
source of funds used to purchase shares, your identity or the identity of any
underlying beneficial owners of your shares. Furthermore, we are required by law
to close your account if you do not provide the required identifying
information. This would result in the redemption of shares at the then-current
NAV and the proceeds would be remitted to you via check. We will attempt to
verify your identity within a reasonable time frame (e.g., 60 days), which may
change from time to time. For further information, please contact PMFS (for
shares purchased through the Transfer Agent) or your financial professional (for
shares purchased through a financial intermediary).
With certain
limited exceptions, Fund shares are only available to be sold in the United
States, U.S. Virgin Islands, Puerto Rico and Guam.
Choosing
a Share Class
The Fund offers the
following share classes. Certain classes of shares may have additional specific
eligibility or qualification requirements, which are explained
below.
|
Share
Class |
Eligibility |
|
Class
A* |
Retail
investors |
|
Class
C* |
Retail
investors |
|
Class
Z* |
Certain
group retirement plans, institutional investors and certain other
investors |
|
Class
R6 |
Certain
group retirement plans, institutional investors and certain other
investors |
*
The Fund’s Class A, Class C, and Class Z shares are generally closed to
investments by new group retirement plans. Please see “Closure
of Certain Share Classes to New Group Retirement Plans” in this section of the
Prospectus for more information.
Multiple share
classes let you choose a cost structure that meets your needs:
◾
Class A shares
purchased in amounts of less than $1 million require you to pay a sales charge
at the time of purchase, but the operating expenses of Class A shares are lower
than the operating expenses of Class C shares. Investors who purchase $1 million
or more of Class A shares and sell these shares within 12 months of purchase are
also subject to a contingent deferred sales charge (“CDSC”) of 1.00%, although
they are not subject to an initial sales charge. The CDSC is waived for certain
retirement and/or benefit plans.
◾
Class C shares do
not require you to pay a sales charge at the time of purchase, but do require
you to pay a CDSC of 1.00% if you sell your shares within 12 months of purchase.
The operating expenses of Class C shares are higher than the operating expenses
of Class A shares.
30
PGIM
Jennison MLP Fund
When choosing a
share class, you should consider the following factors:
◾
The amount of your
investment and any previous or planned future investments, which may qualify you
for reduced sales charges for Class A shares under Rights of Accumulation or a
Letter of Intent.
◾
The length of time
you expect to hold the shares and the impact of varying distribution fees. Over
time, these fees will increase the cost of your investment and may cost you more
than paying other types of sales charges. For this reason, Class C shares are
generally appropriate only for investors who plan to hold their shares for no
more than 3 years.
◾
The different sales
charges that apply to each share class—Class A's front-end sales charge (and, in
certain instances, CDSC) vs. Class C's CDSC.
◾
Class C shares
purchased in single amounts greater than $1 million are generally less
advantageous than purchasing Class A shares. Purchase orders for Class C shares
above this amount generally will not be accepted.
◾
If you purchase
Class Z shares through a broker acting solely as an agent on behalf of its
customers pursuant to an agreement with PIMS, the broker may charge you a
commission in an amount determined and separately disclosed to you by the
broker.
◾
Because Class
Z and Class R6 shares have lower operating expenses than Class A or Class C
shares, as applicable, you should consider whether you are eligible to purchase
such share classes.
See “How to Sell
Your Shares” for a description of the impact of CDSCs.
If your shares are
held through a financial intermediary, you should discuss with your intermediary
which share classes of the Fund are available to you and which share class may
best meet your needs. Certain financial intermediaries through which you may
purchase shares of the Fund may impose their own investment minimums, fees,
policies and procedures for purchasing, exchanging and selling Fund shares,
which are not described in this Prospectus or the SAI, and which will depend on
the policies, procedures and trading platforms of the financial intermediary.
Consult your financial intermediary about share class availability and the
intermediary’s policies, procedures and other information. The
availability of certain sales charge waivers and discounts will depend on
whether you purchase your shares directly from the Fund or through a financial
intermediary. See “Appendix A: Waivers and Discounts Available From Certain
Financial Intermediaries” for additional information. The Fund has
advised financial intermediaries of the share class features and guidelines, per
the Prospectus, and it is their responsibility to monitor and enforce these
guidelines with respect to shareholders purchasing shares through financial
intermediaries.
Share
Class Comparison. Use the following
chart to help you compare the different share classes. The discussion following
this chart will tell you whether you are entitled to a reduction or waiver of
any sales charges.
|
|
Class
A* |
Class
C* |
Class
Z* |
Class
R6 |
|
Minimum
purchase amount |
$1,000 |
$1,000 |
None |
None |
|
Minimum
amount for subsequent purchases |
$100 |
$100 |
None |
None |
|
Maximum
initial sales charge |
5.50%
of the public
offering
price |
None |
None |
None |
|
Contingent
Deferred Sales Charge (“CDSC”) (as a
percentage
of the lower of the original purchase
price
or the net asset value at redemption) |
1.00%
on sales of $1
million
or more made
within
12 months of
purchase |
1.00%
on sales made
within
12 months of
purchase |
None |
None |
|
Annual
distribution and service (12b-1) fees (shown
as
a percentage of average daily net assets) |
0.30%
(0.25% currently) |
1.00% |
None |
None |
Notes
to Share Class Comparison Table:
°
The minimum initial and subsequent investment requirements do not apply to
employee savings plan accounts, payroll deduction plan accounts, or when
exchanging all shares of an account to
an existing account with the same registration. The minimum initial and
subsequent investment requirements for AIP accounts is $50 monthly (if your
shares are held through a broker or other financial intermediary, the broker or
intermediary is responsible for determining the minimum initial and subsequent
investment for AIP accounts). In addition, the minimum initial and subsequent
investment requirements do not apply with respect to Class A and Class C shares
when offered at NAV on fee-based programs, mutual fund “wrap” or asset
allocation programs, mutual fund “supermarket” programs, and group retirement
plans.
°
If the value of your Class A, Class C or Class Z account with PMFS is less than
$10,000, the Fund will deduct a $15 annual account maintenance fee from your
account. The $15 annual account
maintenance fee will be assessed during the 4th calendar quarter of each year.
Any applicable CDSC on the shares redeemed to pay the $15 account maintenance
fee will be waived. The $15 account maintenance fee will not be charged on: (i)
accounts during the first six months from inception of the account, (ii)
accounts which are authorized for electronic delivery of account statements,
transaction confirmations, prospectuses and fund shareholder reports, (iii)
omnibus accounts or accounts for which a broker or other financial
Visit our website
at www.pgim.com/investments
31
intermediary
is responsible for recordkeeping, (iv) institutional accounts, (v) group
retirement plans, (vi) AIP accounts or employee savings plan accounts, (vii)
accounts with the same registration
associated with multiple share classes within the Fund, provided that the
aggregate value of share classes with the same registration within the Fund is
$10,000 or more, or (viii) clients with assets of $50,000 or more across the
PGIM Funds family of mutual funds. For more information, see “Purchase,
Redemption and Pricing of Fund Shares—Account Maintenance Fee” in the
SAI.
° For more information about
the CDSC and how it is calculated, see “How to Sell Your Shares—Contingent
Deferred Sales Charge (“CDSC”).”
° Investors
who purchase $1 million or more of Class A shares and sell these shares within
12 months of purchase are subject to a 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.
°
Distribution and service (12b-1) fees are paid from the Fund's assets on a
continuous basis. Over time, the fees will increase the cost of your investment
and may cost you more than paying
other types of sales charges. Class A shares may pay a service fee of up to
0.25%. The distribution fee for Class A shares is limited to 0.30% (including up
to 0.25% service fee). Class C shares pay a service fee of 0.25%. Class C shares
pay a distribution fee of 0.75% (in addition to the 0.25% service
fee).
° The
Distributor of the Fund has contractually agreed through March 31, 2025 to reduce its
distribution and service (12b-1) fees for Class A shares to 0.25% of the average
daily net assets of the Class A shares.
*
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 this section of the Prospectus for more
information.
Closure
of Certain Share Classes to New Group Retirement Plans
Effective June 1,
2018 (the “Effective Date”), the Fund’s Class A, Class C, Class R and Class Z
shares, as applicable, were closed to investments by new group retirement plans,
except as discussed below. Existing group retirement plans as of the Effective
Date may keep their investments in their current share class and may continue to
make additional purchases or exchanges in the Fund. As of the Effective Date,
all new group retirement plans wishing to add the Fund as a new addition to the
plan generally will be into one of the available Class R6 shares, Class R4
shares, or Class R2 shares of the Fund, as applicable. A short-term investment
in a PGIM affiliated money market fund shall not be deemed a new group
retirement plan investment for purposes of this policy.
In addition, on the
Effective Date, the Class R shares of any fund were closed to all new investors,
except as discussed below. Due to the closing of the Class R shares to new
investors, effective on the Effective Date new IRA investors may only purchase
Class A, Class C, Class Z or Class R6 shares of the Fund, as applicable, subject
to share class eligibility. Following the Effective Date, no Class R shares may
be purchased or acquired by any new Class R shareholder, except as discussed
below.
|
|
Class
A |
Class
C |
Class
Z |
Class
R |
|
Existing
Investors
(Group Retirement Plans,
IRAs,
and all other investors) |
No
Change |
No
Change |
No
Change |
No
Change |
|
New
Group Retirement Plans |
Closed
to group retirement plans wishing to add the share classes as new
additions to plan menus on June 1, 2018,
subject
to certain exceptions below | |||
|
New
IRAs |
No
Change |
No
Change |
No
Change |
Closed
to all new
investors
on June 1, 2018,
subject
to certain
exceptions
below |
|
All
Other New Investors |
No
Change |
No
Change |
No
Change | |
However, the
following new investors may continue to purchase Class A, Class C, Class R and
Class Z shares of the Fund, as applicable:
◾
Eligible group
retirement plans that are exercising their one-time 90-day repurchase privilege
in the Fund will be permitted to purchase such share classes.
◾
Plan participants
in a group retirement plan that offers Class A, Class C, Class R or Class Z
shares of the Fund, as applicable, as of the Effective Date will be permitted to
purchase such share classes of the Fund, even if the plan participant did not
own shares of that class of the Fund as of the Effective Date.
◾
Certain new group
retirement plans will be permitted to offer such share classes of the Fund after
the Effective Date, provided that the plan or its financial intermediary or
other agent
has or
is actively negotiating a contractual agreement with the Fund’s distributor or
service provider to offer such share classes of the Fund prior to or on the
Effective Date.
◾
New group
retirement plans that combine with, replace or are otherwise affiliated with a
current plan that invests in such share classes prior to or on the Effective
Date will be permitted to purchase such share classes.
◾
The Fund also
reserves the right to refuse any purchase order that might disrupt management of
the Fund or to otherwise modify the closure policy at any time on a case-by-case
basis.
◾
Shareholders owning
Class C shares may continue to hold their Class C shares until the shares
automatically convert to Class A shares under the conversion schedule, or until
the shareholder redeems their Class C shares.
32
PGIM
Jennison MLP Fund
Reducing
or Waiving Class A's and Class C’s Sales Charges
The following
describes the different ways investors can reduce or avoid paying Class A's
sales charge.
Increase the
Amount of Your Investment. You can reduce Class A's sales
charge by increasing the amount of your investment. The chart below shows how
the sales charge decreases as the amount of your investment
increases:
|
Amount
of Purchase |
Sales
Charge as a % of
Offering
Price* |
Sales
Charge as a % of
Amount
Invested* |
Dealer
Reallowance*** |
|
Less
than $25,000 |
5.50% |
5.82% |
5.00% |
|
$25,000
to $49,999 |
5.00% |
5.26% |
4.50% |
|
$50,000
to $99,999 |
4.50% |
4.71% |
4.00% |
|
$100,000
to $249,999 |
3.75% |
3.90% |
3.25% |
|
$250,000
to $499,999 |
2.75% |
2.83% |
2.50% |
|
$500,000
to $999,999 |
2.00% |
2.04% |
1.75% |
|
$1
million to $4,999,999** |
None |
None |
1.00% |
|
$5
million to $9,999,999** |
None |
None |
0.50% |
|
$10
million and over** |
None |
None |
0.25% |
*
Due to rounding in the calculation of the offering price and the number of
shares purchased, the actual sales charge you pay may be more or less than the
percentages shown above.
**
If you invest $1 million or more, you can buy only Class A shares, unless you
qualify to buy other share classes. If you purchase $1 million or more of Class
A shares and sell these shares within
12 months of purchase, you will be subject to a CDSC of 1.00%, although you will
not be subject to an initial sales charge. The CDSC is waived for certain
retirement and/or benefit plans.
*** The Dealer Reallowance is the amount that is paid by the Fund’s distributor to the financial intermediary responsible for the sale of the Fund’s shares. For more information, please see “How Financial Intermediaries are Compensated for Selling Fund Shares” in this section of the Prospectus.
*** The Dealer Reallowance is the amount that is paid by the Fund’s distributor to the financial intermediary responsible for the sale of the Fund’s shares. For more information, please see “How Financial Intermediaries are Compensated for Selling Fund Shares” in this section of the Prospectus.
To satisfy the
purchase amounts above, you can:
◾
Use your Rights of
Accumulation, which allow you or an eligible group of related investors to
combine the value of a new purchase of Class A shares of any PGIM Fund with (1)
the current value of Class A and Class C, and any other PGIM Fund share class
(when used in retail brokerage or advisory programs) you or the eligible group
of related investors already own, (2) the value of money market shares (other
than Direct Purchase money market shares) you or an eligible group of related
investors have received for shares of other PGIM Funds in an exchange
transaction, and (3) the value of the shares you or an eligible group of related
investors are purchasing; or
◾
Sign a Letter of
Intent, stating in writing that you or an eligible group of related investors
will purchase a certain amount of shares in the Fund and other PGIM Funds within
13 months.
◾
Purchases made
prior to the effective date of the Letter of Intent will be applied toward the
satisfaction of the Letter of Intent to determine the level of sales charge that
will be paid pursuant to the Letter of Intent, but will not result in any
reduction in the amount of any previously paid sales charge.
An “eligible group
of related investors” includes any combination of the following:
◾
All accounts held
in your name (alone or with other account holders) and taxpayer identification
number (“TIN”);
◾
Accounts held in
your spouse's name (alone or with other account holders) and TIN (see definition
of spouse below);
◾
Accounts for your
children or your spouse's children, including children for whom you and/or your
spouse are legal guardian(s) (e.g., UGMAs and UTMAs);
◾
Accounts in the
name and TINs of your parents;
◾
Trusts with you,
your spouse, your children, your spouse's children and/or your parents as the
beneficiaries;
◾
With limited
exclusions, accounts with the same address (exclusions include, but are not
limited to, addresses for brokerage firms and other intermediaries and Post
Office boxes); and
◾
Accounts held in
the name of a company controlled by you (a person, entity or group that holds
25% or more of the outstanding voting securities of a company will be deemed to
control the company, and a partnership will be deemed to be controlled by each
of its general partners), including employee benefit plans of the company where
the accounts are held in the plan's TIN.
A “spouse” is
defined in this Prospectus as follows:
◾
The person to whom
you are legally married. We also consider your spouse to include the
following:
Visit our website
at www.pgim.com/investments
33
◾
An individual of
the same gender with whom you have been joined in a civil union, or legal
contract similar to marriage;
◾
A domestic partner,
who is an individual (including one of the same gender) with whom you have
shared a primary residence for at least six months, in a relationship as a
couple where you, your domestic partner or both provide for the personal or
financial welfare of the other without a fee, to whom you are not related by
blood; or
◾
An individual with
whom you have a common law marriage, which is a marriage in a state where such
marriages are recognized between a man and a woman arising from the fact that
the two live together and hold themselves out as being married.
The value of shares
held by you or an eligible group of related investors will be determined as
follows:
◾
for Class A shares
and any other share class for which a sales charge is paid, the value of
existing shares is determined by the maximum offering price (NAV plus maximum
sales charge); and
◾
for all other share
classes, the value of existing shares is determined by the NAV.
If your shares are
held directly by the Transfer Agent, and you believe you qualify for a reduction
or waiver of Class A’s or Class C's sales charges, you must notify the Transfer
Agent at the time of the qualifying share purchase in order to receive the
applicable reduction or waiver. If your shares are held through a broker or
other financial intermediary, and you believe you qualify for a reduction or
waiver of Class A’s or Class C's sales charges, you must notify your broker or
intermediary at the time of the qualifying purchase in order to receive the
applicable reduction or waiver. Shares held through a broker or other financial
intermediary will not be systematically aggregated with shares held directly by
the Transfer Agent for purposes of receiving a reduction or waiver of Class A’s
or Class C's sales charges. The reduced or waived sales charge will be granted
subject to confirmation of account holdings.
If your shares are
held directly by the Transfer Agent, you must identify the eligible group of
related investors. Although the Transfer Agent does not require any specific
form of documentation in order to establish your eligibility to receive a waiver
or reduction of Class A’s or Class C's sales charges, you may be required to
provide appropriate documentation if the Transfer Agent is unable to establish
your eligibility.
If your shares are
held through a financial intermediary, the financial intermediary is responsible
for determining the specific documentation, if any, that you may need in order
to establish your eligibility to receive a waiver or reduction of Class A’s or
Class C's sales charges. Your financial intermediary is also responsible for
notifying the Transfer Agent if your share purchase qualifies for a reduction or
waiver of Class A’s or Class C's sales charges.
Purchases of $1
Million or More. If
you purchase $1 million or more of Class A shares, you will not be subject to an
initial sales charge, although a CDSC may apply, as previously
noted.
Mutual
Fund Programs. The initial sales
charge on Class A shares will be waived for participants in any fee-based
program or trust program sponsored by Prudential or an affiliate that includes
the Fund as an available option. The initial sales charge will also be waived
for clients of financial intermediaries in programs that are sponsored by or
available through financial intermediaries that offer Class A shares without an
initial sales charge, relating to:
◾
Mutual fund “wrap”
or asset allocation programs, where the sponsor places fund trades, links its
clients' accounts to a master account in the sponsor's name and charges its
clients a management, consulting or other fee for its services; or
◾
Mutual fund
“supermarket” programs, where the sponsor links its clients' accounts to a
master account in the sponsor's name and the sponsor charges a fee for its
services.
Financial
intermediaries sponsoring these mutual fund programs may offer their clients
more than one class of shares in the Fund in connection with different pricing
options for their programs. Investors should consider carefully any separate
transaction and other fees charged by these programs in connection with
investing in each available share class before selecting a share
class.
34
PGIM
Jennison MLP Fund
Group
Retirement Plans. Class A’s and
Class C’s sales charges will be waived for group retirement plans (including
defined contribution plans, defined benefit plans and deferred compensation
plans) available through a retirement plan recordkeeper or third party
administrator. Investors in group retirement plans should contact their
financial intermediary with any questions regarding availability of Class A and
Class C shares at net asset value.
Other
Types of Investors. Certain other
types of investors may purchase Class A shares without paying the initial sales
charge, including:
◾
Certain directors
or trustees, officers, current employees (including their spouses, children and
parents) and former employees (including their spouses, children and parents) of
Prudential and its affiliates, the PGIM Funds, and the subadvisers of the PGIM
Funds; former employees must have an existing investment in the
Fund;
◾
Persons who have
retired directly from active service with Prudential or one of its
subsidiaries;
◾
Registered
representatives and employees of broker-dealers (including their spouses,
children and parents) that offer Class A shares; and
◾
Clients of
financial intermediaries, who (i) offer Class A shares through a no-load network
or platform, (ii) charge clients an ongoing fee for advisory, investment,
consulting or similar services, or (iii) offer self-directed brokerage accounts
or other similar types of accounts that may or may not charge transaction fees
to customers.
To qualify for a
waiver of the Class A or Class C sales charges at the time of purchase
(including exchange of share classes within the Fund), you must notify the
Transfer Agent, or the Distributor must be notified by the financial
intermediary facilitating the purchase, that the transaction qualifies for a
waiver of the Class A or Class C sales charges. The waiver will be granted
subject to confirmation of your account holdings.
Additional
Information About Reducing or Waiving Class A’s and Class C's Sales
Charges. The Fund also
makes available free of charge, on the Fund's website, in a clear and prominent
format, information relating to the Fund's Class A and Class C sales charges,
and the different ways that investors can reduce or avoid paying the initial
sales charge. The Fund's website includes hyperlinks that facilitate access to
this information.
You may need to
provide your financial intermediary through which you hold Fund shares with the
information necessary to take full advantage of reduced or waived Class A or
Class C sales charges.
The Distributor may
reallow the Class A sales charge to dealers.
Class
C Shares Automatically Convert to Class A Shares
Class C shares will
be eligible for automatic conversion into Class A shares on a monthly basis
approximately eight years after the original date of purchase. Conversion will
take place based on the relative NAV of the two classes, without the imposition
of any sales load, fee or other charge. All such automatic conversions of Class
C shares will constitute tax-free exchanges for federal income tax purposes. See
the table titled “Annual Fund Operating Expenses”
in the
section of the Fund’s Prospectus titled “Fund Summary – Fund Fees and Expenses”
for the annual fund operating expenses for Class A and Class C
shares.
For shareholders
investing in Class C shares through retirement plans or omnibus accounts, and in
certain other instances, the Fund and its agents may not have transparency into
how long a shareholder has held Class C shares for purposes of determining
whether such Class C shares are eligible for automatic conversion to Class A
shares, and the relevant financial intermediary may not have the ability to
track purchases in order to credit individual shareholders’ holding periods. In
these circumstances, the Fund will not be able to automatically convert Class C
shares to Class A shares as described above. In order to determine eligibility
for conversion in these circumstances, it is the responsibility of the financial
intermediary to notify the Fund that the shareholder is eligible for the
conversion of Class C shares to Class A shares, and the financial intermediary
may be required to maintain and provide the Fund with records that substantiate
the holding period of Class C shares. It is the financial intermediary’s (and
not the Fund’s) responsibility to keep records of transactions made in accounts
it holds and to ensure that the shareholder is credited with the proper holding
period based on such records or those provided to the financial intermediary by
the shareholder. Please consult with your financial intermediary for the
applicability of this conversion feature to your shares.
Visit our website
at www.pgim.com/investments
35
A financial
intermediary may sponsor and/or control accounts, programs or platforms that
impose a different conversion schedule or different eligibility requirements for
the exchange of Class C shares for Class A shares (see Appendix
A: Waivers and Discounts Available From Certain Financial
Intermediaries of the
Prospectus). Please consult with your financial intermediary if you have any
questions regarding your shares’ conversion from Class C shares to Class A
shares.
Qualifying
for Class Z Shares
Institutional
Investors. Various
institutional investors may purchase Class Z shares, including corporations,
banks, governmental entities, municipalities, hospitals, insurance companies and
IRS Section 501 entities, such as foundations and endowments. Institutional
investors are responsible for indicating their eligibility to purchase Class Z
shares at the time of purchase. Certain financial intermediaries may require
that investments by their institutional investor clients in Class Z shares be
placed directly with the Fund's Transfer Agent. Please contact the Transfer
Agent at (800) 225-1852 for further details.
Mutual
Fund Programs. Class Z shares can
be purchased by participants in any fee-based program or trust program sponsored
by Prudential or an affiliate that includes the Fund as an available option.
Class Z shares also can be purchased by investors in certain programs sponsored
by financial intermediaries who offer Class Z shares of the Fund, or whose
programs are available through financial intermediaries that offer Class Z
shares of the Fund, for:
◾
Mutual fund “wrap”
or asset allocation programs where the sponsor places fund trades, links its
clients' accounts to a master account in the sponsor's name and charges its
clients a management, consulting or other fee for its services;
◾
Mutual fund
“supermarket” programs where the sponsor links its clients' accounts to a master
account in the sponsor's name and the sponsor charges a fee for its services;
or
◾
Fee- or
commission-based retail brokerage programs of certain financial intermediaries
that offer Class Z shares through such programs and that have agreements with
PIMS to offer such shares when acting solely on an agency basis for their
customers for the purchase or sale of such shares. If you transact in Class Z
shares of the Fund through one of these programs, you may be required to pay a
commission and/or other forms of compensation to the broker or financial
intermediary for effecting such transaction. Because the Fund is not a party to
any commission arrangement between you and your broker, any transactions in
Class Z shares will be made by the Fund at net asset value (before imposition of
the commission). Any such fee is paid by you, not by the Fund, and the
imposition of any such fee or commission by your broker or financial
intermediary does not impact the net asset value for such Fund shares. Shares of
the Fund are available in other share classes that have different fees and
expenses.
Financial
intermediaries sponsoring these mutual fund programs may offer their clients
more than one class of shares in the Fund in connection with different pricing
options for their programs. Investors should consider carefully any separate
transaction and other fees charged by these programs in connection with
investing in a share class offered by the program before selecting a share
class.
Other
Types of Investors. Class Z shares
also can be purchased by any of the following:
◾
Certain
participants in the MEDLEY Program (group variable annuity contracts) sponsored
by Prudential for whom Class Z shares of the PGIM Funds are an available
option;
◾
Current and former
Directors/Trustees of mutual funds, closed-end funds and ETFs managed by PGIM
Investments or any other affiliate of Prudential;
◾
Current and former
employees (including their spouses, children and parents) of Prudential and its
affiliates; former employees must have an existing investment in the
Fund;
◾
Prudential
(including any program or account sponsored by Prudential or an affiliate that
includes the Fund as an available option);
◾
PGIM Funds,
including PGIM funds-of-funds;
◾
Qualified state
tuition programs (529 plans); and
◾
Investors working
with fee-based consultants for investment selection and allocations.
36
PGIM
Jennison MLP Fund
Qualifying
for Class R6 Shares
Group
Retirement Plans. Group retirement
plans (including defined contribution plans, defined benefit plans and deferred
compensation plans) available through a retirement plan recordkeeper or third
party administrator may purchase Class R6 shares. Investors in group retirement
plans should contact their financial intermediary with any questions regarding
availability of Class R6 shares.
Institutional
Investors. Various
institutional investors may purchase Class R6 shares, including, but not limited
to, corporations, governmental entities, municipalities, hospitals, insurance
companies and IRS Section 501 entities, such as foundations and endowments and
other institutional investors. Institutional investors are responsible for
indicating their eligibility to purchase Class R6 shares at the time of
purchase.
Other
Types of Investors. Class R6 shares may
also be purchased by Prudential, certain programs or accounts sponsored by
Prudential, and PGIM Funds, including PGIM funds-of-funds.
Class R6 shares may
only be purchased from financial intermediaries who offer such
shares.
Class R6 shares are
offered to eligible investors as described in this Prospectus. Neither the Fund
nor its affiliates shall make or pay fees associated with or similar to
sub-accounting, networking, revenue sharing, or certain administrative fees with
respect to Class R6 shares.
How
Financial Intermediaries are Compensated for Selling Fund Shares
The PGIM Funds are
distributed by Prudential Investment Management Services LLC (the
“Distributor”), a broker-dealer that is licensed to sell securities. The
Distributor generally does not sell shares of the PGIM Funds directly to the
public, but instead markets and sells the PGIM Funds through other
broker-dealers, 401(k) providers, retirement plan administrators, and other
financial intermediaries. Each PGIM Fund is managed by the Manager.
Only persons
licensed with the Financial Industry Regulatory Authority, Inc. (“FINRA”), as a
registered representative (often referred to as a broker or financial adviser)
and associated with a specific financial services firm may sell shares of a
mutual fund to you, or to a retirement plan in which you
participate.
Rule
12b-1 Fees & Sales Charges. The Distributor
has agreements in place with financial intermediaries defining how much each
firm will be paid for the sale of a particular mutual fund from front-end sales
charges, if any, paid by Fund shareholders and from fees paid to the Distributor
by the Fund pursuant to Rule 12b-1 under the 1940 Act (“Rule 12b-1”). These
financial intermediaries then pay their registered representatives who sold you
the Fund some or all of what they received from the Distributor. The registered
representatives may receive a payment when the sale is made and can, in some
cases, continue to receive ongoing payments while you are invested in the Fund.
The Distributor may change at any time, without prior notice, the amount of Rule
12b-1 fees that it pays (when the sale is made and/or any ongoing payments) to
financial intermediaries and registered representatives so that the Distributor
may retain all or a portion of such fees.
“Revenue
Sharing” Payments. In addition to the
compensation received by financial intermediaries as described above, the
Manager or certain of its affiliates (but not the Distributor) may make
additional payments (which are often referred to as “revenue sharing” payments)
to the financial intermediaries from the Manager's or certain affiliates' own
resources, including from the profits derived from management fees or other fees
received from the Fund, without additional direct or indirect cost to the Fund
or its shareholders, provided that no such additional payments to financial
intermediaries are made with respect to the Fund’s Class R6 shares. Revenue
sharing payments are in addition to the front-end sales charges paid by Fund
shareholders or fees paid pursuant to plans adopted in accordance with Rule
12b-1. The Manager or certain of its affiliates may revise the terms of any
existing revenue sharing arrangement, and may enter into additional revenue
sharing arrangements with other financial intermediaries in the
future.
Revenue sharing
arrangements are intended to foster the sale of Fund shares and/or to compensate
financial intermediaries for assisting in marketing or promotional activities in
connection with the sale of Fund shares. In exchange for revenue sharing
payments, the Fund generally expects to receive the opportunity for the Fund to
be sold
Visit our website
at www.pgim.com/investments
37
through the
financial intermediaries' sales force or access to third-party platforms or
other marketing programs, including but not limited to mutual fund “supermarket”
platforms or other sales programs. To the extent that financial intermediaries
receiving revenue sharing payments sell more shares of the Fund, the Manager and
Distributor benefit from the increase in Fund assets as a result of the
management and distribution fees they receive from the Fund, respectively.
Increased sales of Fund shares also may benefit shareholders, since an increase
in Fund assets may allow the Fund to expand its investment opportunities, and
increased Fund assets may result in reduced Fund operating expenses.
From time to time
the Manager or an affiliate of the Fund (and not the Fund itself) may pay
certain administrative fees in order to make the Fund available to shareholders.
Such fees are not included in, and are paid separate and apart from, any revenue
sharing payments.
Revenue sharing
payments, as well as the other types of payments described above, may provide an
incentive for financial intermediaries and their registered representatives to
recommend or sell shares of the Fund to you and in doing so may create conflicts
of interest between the firms' financial interests and their duties to
customers.
If your Fund shares
are purchased through a retirement plan, the Manager or certain of its
affiliates (but not the Distributor) may also make revenue sharing payments to
the plan's recordkeeper or an affiliate, which generally is not a registered
broker-dealer.
It is likely that
financial intermediaries that execute portfolio transactions for the Fund will
include those firms with which the Manager and/or certain of its affiliates have
entered into revenue sharing arrangements. Neither the Manager nor any
subadviser may consider sales of Fund shares as a factor in the selection of
broker-dealers to execute portfolio transactions for the Fund. The Manager and
certain of its affiliates will not use Fund brokerage as any part of revenue
sharing payments to financial intermediaries.
Revenue sharing
payments are usually calculated based on a percentage of Fund sales and/or Fund
assets attributable to a particular financial services firm. Payments may also
be based on other criteria or factors, for example, a fee per each transaction.
Specific payment formulas are negotiated based on a number of factors,
including, but not limited to, reputation in the industry, ability to attract
and retain assets, target markets, customer relationships and scope and quality
of services provided. The Manager and/or certain of its affiliates make such
payments to financial intermediaries in amounts that generally range from 0.02%
up to 0.20% of Fund assets serviced and maintained by the financial
intermediaries or from 0.10% to 0.25% of sales of Fund shares attributable to
the firm. In addition, the Manager and/or certain of its affiliates may pay flat
fees on a one-time or irregular basis for the initial set-up of the Fund on a
financial services intermediary’s systems, participation or attendance at a
financial services firm's meeting, or for other reasons. These amounts are
subject to change. In addition, the costs associated with visiting the financial
intermediaries to make presentations, and/or train and educate the personnel of
the financial intermediaries, may be paid by the Manager and/or certain of its
affiliates, subject to applicable FINRA regulations.
Please contact the
registered representative (or his or her firm) who sold shares of the Fund to
you for details about any payments the financial intermediary may receive from
the Manager and/or certain of its affiliates. You should review your financial
intermediary’s disclosure and/or talk to your financial intermediary to obtain
more information on how this compensation may have influenced your financial
intermediary’s recommendation of the Fund. Additional information regarding
these revenue sharing payments is included in the SAI which is available to you
at no additional charge.
Other
Payments Received by Financial Intermediaries
Administrative,
Sub-Accounting and Networking Fees. In addition to,
rather than in lieu of, the fees that the Fund may pay to financial
intermediaries as described above, and the fees the Fund pays to the Transfer
Agent, the Transfer Agent or its affiliates may enter into additional agreements
on behalf of the Fund with financial intermediaries pursuant to which the Fund
will pay financial intermediaries for certain administrative, sub-accounting and
networking services, provided that no such additional payments to financial
intermediaries are made with respect to the Fund’s Class R6 shares. These
services include maintenance of shareholder accounts by the firms, such as
recordkeeping and other activities that otherwise would be performed by the
Transfer Agent. Sub-accounting services encompass activities that
38
PGIM
Jennison MLP Fund
reduce the burden
of recordkeeping to the Fund. Administrative fees are paid to a firm that
undertakes, for example, shareholder communications on behalf of the Fund.
Networking services are services undertaken to support the electronic
transmission of shareholder purchase and redemption orders through the National
Securities Clearing Corporation (“NSCC”).
These payments, as
discussed above, are paid out of Fund assets and generally based on either (1) a
percentage of the average daily net assets of Fund shareholders serviced by a
financial intermediary or (2) a fixed dollar amount for each account serviced by
a financial services firm. From time to time, the Manager or certain of its
affiliates (but not the Distributor) also may pay a portion of the fees for the
services to the financial intermediaries at their own expense and out of their
own resources.
In addition, the
Fund reimburses the Distributor for NSCC fees that are invoiced to the
Distributor as the party to the Agreement with NSCC for the administrative
services provided by NSCC to the Fund and its shareholders. These administrative
services provided by NSCC to the Fund and its shareholders include transaction
processing and settlement through Fund/SERV, electronic networking services to
support the transmission of shareholder purchase and redemption orders to and
from financial intermediaries, and related recordkeeping provided by NSCC to the
Fund and its shareholders. These payments are generally based on a transaction
fee rate for certain administrative services plus a fee for other administrative
services.
Anti-Money
Laundering
In accordance with
federal law, the Fund has adopted policies designed to deter money laundering.
Under the policies, the Fund will not knowingly engage in financial transactions
that involve proceeds from unlawful activity or support terrorist activities,
and shall file government reports, including those concerning suspicious
activities, as required by applicable law. The Fund will seek to confirm the
identity of potential shareholders to include both individuals and entities
through documentary and non-documentary methods. Non-documentary methods may
include verification of name, address, date of birth and tax identification
number with selected credit bureaus. The Fund's Anti-Money Laundering Compliance
Officer oversees the Fund's anti-money laundering policies.
Understanding
the Price You'll Pay
The price you pay
for each share of the Fund is based on the share value. The share value of a
mutual fund—known as the net asset value or NAV—is determined by a simple
calculation: it's the total value of the Fund (assets minus liabilities) divided
by the total number of shares outstanding. For example, if the value of the
investments held by Fund XYZ (minus its liabilities) is $1,000 and there are 100
shares of Fund XYZ owned by shareholders, the value of one share of the Fund—or
the NAV—is $10 ($1,000 divided by 100).
Mutual
Fund Shares
The NAV of mutual
fund shares changes every day because the value of a fund's portfolio changes
constantly. For example, if Fund XYZ holds ACME Corp. bonds in its portfolio and
the price of ACME bonds goes up, while the value of the Fund's other holdings
remains the same and expenses don't change, the NAV of Fund XYZ will
increase.
The Fund's NAV will
be determined every day on which the Fund is open as of the close of regular
trading on the New York Stock Exchange (“NYSE”) (generally, 4:00 p.m. Eastern
Time). The Fund's portfolio securities are valued based upon market quotations
or, if market quotations are not readily available, at fair value as determined
in good faith by the Manager, as the Board's valuation designee. In this
capacity, the Manager has adopted pricing methodologies for determining the fair
value of certain types of securities and other assets held by the Fund that do
not have quoted market prices, including the use of other pricing sources, such
as bid prices supplied by a principal market maker and evaluated prices supplied
by pricing vendors that employ analytic methodologies that take into account the
prices of similar securities and other market factors.
Visit our website
at www.pgim.com/investments
39
If the Fund
determines that a market quotation for a security is not reliable based on,
among other things, events or market conditions that occur with respect to one
or more securities held by the Fund or the market as a whole, after the
quotation is derived or after the closing of the primary market on which the
security is traded, but before the time that the Fund's NAV is determined, the
Fund may use “fair value pricing,” which is implemented by a valuation committee
(“Valuation Committee”) consisting of representatives of the Manager. The
subadviser often provides relevant information for the Valuation Committee
meeting. Non-U.S. securities markets are open for trading on weekends and other
days when the Fund does not price shares. Therefore, the value of the Fund’s
shares may change on days when you will not be able to purchase or redeem the
Fund’s shares.
Investments in
open-end non-exchange-traded mutual funds will be valued at their NAV as
determined as of the close of the NYSE on the date of valuation, which will
reflect the mutual fund’s fair valuation procedures.
Different valuation
methods may result in differing values for the same security. The fair value of
a portfolio security that the Fund uses to determine its NAV may differ from the
security's quoted or published price. If the Fund needs to implement fair value
pricing after the NAV publishing deadline but before shares of the Fund are
processed, the NAV you receive or pay may differ from the published NAV price.
The prospectuses of any other mutual funds in which the Fund invests will
explain each fund’s procedures and policies with respect to the use of fair
value pricing.
Fair value pricing
procedures are designed to result in prices for the Fund's securities and its
NAV that are reasonable in light of the circumstances which make or have made
market quotations unavailable or unreliable, and may have the effect of reducing
arbitrage opportunities available to short-term traders. There is no assurance,
however, that fair value pricing will accurately reflect the market value of a
security or that it will prevent dilution of the Fund's NAV by short-term
traders.
What
Price Will You Pay for Shares of the Fund? For Class A
shares, you'll pay the public offering price, which is the NAV next determined
after we receive your order to purchase, plus an initial sales charge (unless
you're entitled to a waiver). For all other share classes, you will pay the NAV
next determined after we receive your order to purchase (remember, there are no
up-front sales charges for these share classes). Your broker may charge you a
separate or additional fee for purchases of shares. Unless regular trading on
the NYSE closes before 4:00 p.m. Eastern Time, or later than 4:00 p.m. Eastern
Time, your order to purchase must be received by 4:00 p.m. Eastern Time in order
to receive that day's NAV. In the event that regular trading on the NYSE closes
before 4:00 p.m. Eastern Time, you will receive the following day's NAV if your
order to purchase is received after the close of regular trading on the NYSE.
The Fund will not treat an intraday unscheduled disruption in NYSE trading as a
closure of the NYSE and will price its shares as of 4:00 p.m. Eastern Time, if
the particular disruption directly affects only the NYSE. We deem an order
received when it is received by the Transfer Agent at its processing center. If
you submit your order through a broker or other financial intermediary, it may
be deemed received when received by the broker or financial
intermediary.
Each business day, the Fund's
current NAV per share is made available at
www.pgim.com/investments/mutual-funds/prices.
Additional
Shareholder Services
As a Fund
shareholder, you can take advantage of the following services and
privileges:
Automatic
Reinvestment. As we explained in
the “Fund Distributions and Tax Issues” section, the Fund currently anticipates
making distributions to its shareholders at a rate that is approximately equal
to the distribution rate the Fund receives from the MLPs and other securities in
which it invests, including income. For your convenience, we will automatically
reinvest your distributions in the Fund at NAV, without any sales charge. If you
want your distributions paid in cash, you can indicate this preference on your
application, or by notifying your broker or the Transfer Agent in writing (at
the address below) at least five business days before the date we determine who
receives dividends. For accounts held at the Transfer Agent (PMFS),
distributions of $10.00 or less on non-retirement accounts will not be paid out
in cash, but will be automatically reinvested into your account.
40
PGIM
Jennison MLP Fund
Prudential
Mutual Fund Services LLC
P.O. Box 534432
Pittsburgh, PA 15253-4432
P.O. Box 534432
Pittsburgh, PA 15253-4432
Automatic
Investment Plan (AIP). You can make
regular purchases of the Fund by having a fixed amount of money automatically
withdrawn from your bank or brokerage account at specified intervals. The
minimum for subsequent investments through newly-established AIP accounts must
be at least $50 monthly.
Retirement
Plan Services. Prudential offers
a wide variety of retirement plans for individuals and institutions, including
large and small businesses. For information on IRAs, including Roth IRAs or
SEP-IRAs for a one-person business, please contact your financial adviser. If
you are interested in opening a 401(k) or other company-sponsored retirement
plan (SIMPLE IRAs, SEP plans, Keoghs, 403(b)(7) plans, pension and
profit-sharing plans), your financial adviser will help you determine which
retirement plan best meets your needs. Complete instructions about how to
establish and maintain your plan and how to open accounts for you and your
employees will be included in the retirement plan kit you receive in the
mail.
Systematic
Withdrawal Plan. A Systematic
Withdrawal Plan is available that will provide you with monthly, quarterly,
semi-annual or annual redemption checks. The Systematic Withdrawal Plan is not
available to participants in certain retirement plans. Please contact PMFS at
(800) 225-1852 for more details.
Reports
to Shareholders. Every year we
will send you an updated summary prospectus. We will also send or make
available to you pursuant to Rule 30e-3 under the 1940 Act,
an annual report and a semi-annual report, which contain
important financial information about the Fund. To reduce Fund expenses, we may
send or make available one annual shareholder report, one semi-annual
shareholder report and one summary prospectus per household, unless you instruct
us or your financial intermediary otherwise. If each Fund shareholder in your
household would like to receive a copy of the Fund's summary prospectus and
shareholder reports, please call us toll free at (800) 225-1852. We will begin
sending additional copies of these documents within 30 days of receipt of your
request.
HOW
TO SELL YOUR SHARES
You can sell your
Fund shares for cash at any time, subject to certain restrictions. For more
information about these restrictions, see “Restrictions on Sales”
below.
When you sell
shares of the Fund—also known as redeeming your shares—the price you will
receive will be the NAV next determined after the Transfer Agent or your
financial intermediary receives your order to sell (less any applicable
CDSC).
Shares
Held by Financial Intermediaries. If your financial
intermediary holds your shares, your financial intermediary must receive your
order to sell no later than the time regular trading on the NYSE closes—which is
usually 4:00 p.m. Eastern Time—to process the sale on that day. In the event
that regular trading on the NYSE closes before 4:00 p.m. Eastern Time, you will
receive the following day's NAV if your order to sell is received after the
close of regular trading on the NYSE.
Shares
Held by the Transfer Agent. If the Transfer
Agent holds your shares, PMFS must receive your order to sell no later than the
time regular trading on the NYSE closes—which is usually 4:00 p.m. Eastern
Time—to process the sale on that day. In the event that regular trading on the
NYSE closes before 4:00 p.m. Eastern Time, you will receive the following day's
NAV if your order to sell is received after the close of regular trading on the
NYSE. You may contact the Transfer Agent at:
Prudential
Mutual Fund Services LLC
P.O. Box 534432
Pittsburgh, PA 15253-4432
P.O. Box 534432
Pittsburgh, PA 15253-4432
Visit our website
at www.pgim.com/investments
41
Payment
for Shares You Have Sold
Shares
Held by Financial Intermediaries. Typically, if your
order to sell shares is received in good order, payment will be credited to your
account within 1 to 3 business days after the order is received, but in any
event within seven days. Your broker may charge you a separate or additional fee
for sales of shares.
Shares
Held by the Transfer Agent. Typically, if your
order to sell shares is received in good order, we will send payment on the next
business day, but in any event within seven days, regardless of the method of
payment (e.g., payment by check, wire or electronic transfer
(“ACH”)).
Restrictions
on Sales
If you are selling
shares you recently purchased with a check, we may delay sending you the
proceeds until your check clears, which can take up to seven days from the
purchase date.
As a result of
restrictions on withdrawals and transfers imposed by Section 403(b) of the
Internal Revenue Code of 1986, as amended, we may consider a redemption request
to not be in good order until we obtain information from your employer that is
reasonably necessary to ensure that the payment is in compliance with such
restrictions, if applicable. In such an event, the redemption request will not
be in good order and we will not process it until we obtain information from
your employer.
In addition, there
are certain times when you may not be able to sell shares of the Fund or when we
may delay paying you the proceeds from a sale. As permitted by the SEC, the
former may happen only during unusual market conditions or emergencies when the
Fund is unable to determine the value of its assets or sell its holdings. For
more information, see the SAI.
If you hold your
shares directly with the Transfer Agent, you will need to have the signature on
your sell order Medallion signature guaranteed if:
◾
You are selling
more than $100,000 of shares;
◾
You want the
redemption proceeds made payable to someone that is not in the Transfer Agent’s
records;
◾
You want the
redemption proceeds sent to an address that is not in the Transfer Agent’s
records;
◾
You are a business
or a trust; or
◾
You are redeeming
due to the death of the shareholder or on behalf of the shareholder.
The Medallion
signature guarantee may be obtained from an authorized officer from a bank,
broker, dealer, securities exchange or association, clearing agency, savings
association, or credit union that is participating in one of the recognized
Medallion guarantee programs (STAMP, SEMP, or NYSE MSP), but not from a notary
public. The Medallion signature guarantee must be appropriate for the dollar
amount of the transaction. The Transfer Agent reserves the right to reject sale
transactions where the value of the transaction exceeds the value of the surety
coverage indicated on the Medallion imprint. The Fund may change the signature
guarantee requirements from time to time without prior notice to shareholders.
For more information, see the SAI.
How
the Fund Pays for Shares You Have Sold
Under normal market
conditions, the Fund expects to pay for shares that you have sold primarily by
using cash or cash equivalents in its portfolio or selling portfolio assets to
generate cash. Supplementally, the Fund may also raise cash to pay for sold
shares by short-term borrowing in the form of overdrafts permitted by the Fund’s
custodian bank and/or by short-term borrowing from a group of banks through an
unsecured credit facility, which is intended to provide the Fund with a
temporary additional source of liquidity. In certain circumstances the Fund
reserves the right to pay for sold shares by giving you securities from the
Fund’s portfolio. If you receive securities, you would incur transaction costs
in converting the securities to cash, and you may receive less for the
securities than the price at which they were valued for redemption
purposes.
During stressed
market conditions, it may be impractical or impossible to raise sufficient cash
to pay for sold shares through the primary methods described above. In these
circumstances, the Fund would be more likely to rely more heavily on the credit
facility as a source of liquidity, as described above.
42
PGIM
Jennison MLP Fund
Contingent
Deferred Sales Charge (“CDSC”)
If you sell Class C
shares within 12 months of purchase, you will have to pay a CDSC of 1.00%. In
addition, if you purchase $1 million or more of Class A shares, although you are
not subject to an initial sales charge, you are subject to a CDSC of 1.00% for
shares redeemed within 12 months of purchase. The CDSC is waived for certain
retirement and/or benefit plans. To keep the CDSC as low as possible, we will
sell amounts representing shares in the following order:
◾
Amounts
representing shares you purchased with reinvested dividends and
distributions,
◾
Amounts
representing the increase in NAV above the total amount of payments for shares
made during the past 12 months for Class A shares (in certain cases) and 12
months for Class C shares, and
◾
Amounts
representing the cost of shares held beyond the CDSC period (12 months for Class
A shares (in certain cases) and 12 months for Class C shares).
Since shares that
fall into any of the categories listed above are not subject to the CDSC,
selling them first helps you to avoid—or at least minimize—the CDSC.
Having sold the
exempt shares first, if there are any remaining shares that are subject to the
CDSC, we will apply the CDSC to amounts representing the cost of shares held for
the longest period of time within the applicable CDSC period.
The CDSC is
calculated based on the lesser of the original purchase price or the net asset
value at redemption. The rate decreases on the anniversary date of your
purchase.
The holding period
for purposes of determining the applicable CDSC will be calculated from the
anniversary date of the purchase, excluding any time Class C shares were held in
a money market fund.
Waiver
of the CDSC—Class A Shares and Class C Shares
The CDSC will be
waived if the Class A shares and Class C shares are sold:
◾
After a shareholder
is deceased or permanently disabled (or, in the case of a trust account, after
the death or permanent disability of the grantor). This waiver applies to
individual shareholders, as well as shares held in joint tenancy, provided the
shares were purchased before the death or permanent disability;
◾
To provide for
certain distributions—made without IRS penalty—from a qualified or tax-deferred
retirement plan, benefit plan, IRA or Section 403(b) custodial account;
and
◾
To withdraw excess
contributions from a qualified or tax-deferred retirement plan, IRA or Section
403(b) custodial account.
For more
information, see the SAI.
Involuntary
Redemption of Small Accounts Held by the Transfer Agent
If the value of
your account with PMFS is less than $500 for any reason, we may sell your shares
(without charging any CDSC) and close your account. We would do this to minimize
the Fund's expenses paid by other shareholders. The involuntary sale provisions
do not apply to Automatic Investment Plan (AIP) accounts, employee savings plan
accounts, payroll deduction plan accounts, retirement accounts (such as a 401(k)
plan, an IRA or other qualified or tax-deferred plan or account), omnibus
accounts, and accounts for which a broker or other financial intermediary is
responsible for recordkeeping. Prior thereto, if you make a sale that reduces
your account value to less than the threshold, we may sell the rest of your
shares (without charging any CDSC) and close your account; this involuntary sale
does not apply to shareholders who own their shares as part of a retirement
account. For more information, see “Purchase, Redemption and Pricing of Fund
Shares—Involuntary Redemption” in the SAI.
Account
Maintenance Fee for Accounts Held by the Transfer Agent
If the value of your Class A, Class
C and/or Class Z account with PMFS is less than $10,000, with certain
exclusions, a $15 annual account maintenance fee will be deducted from your
account during the 4th calendar quarter of each year. Any applicable CDSC on the
shares redeemed to pay the account maintenance fee will be waived. For more
information, see “Purchase, Redemption and Pricing of Fund Shares—Account
Maintenance Fee” in the SAI.
Visit our website
at www.pgim.com/investments
43
90-Day
Repurchase Privilege
After you redeem
your shares, you have a 90-day period during which you may reinvest back into
your account any of the redemption proceeds in shares of the same Fund without
paying an initial sales charge. In order to take advantage of this privilege,
you must notify the Transfer Agent or your broker at the time of the repurchase.
This privilege can only be used once in a 12-month period. For more information,
see the SAI.
The terms of this
privilege may vary by financial intermediary. For more information, see
“Appendix A: Waivers and Discounts Available From Certain Financial
Intermediaries.”
Retirement
Plans
To sell shares and
receive a distribution from your retirement account, call your broker or the
Transfer Agent for a distribution request form. There are special distribution
and income tax withholding requirements for distributions from retirement plans
and you must submit a withholding form with your request to avoid delay. If your
retirement plan account is held for you by your employer or plan trustee, you
must arrange for the distribution request to be signed and sent by the plan
administrator or trustee. For additional information, see the
SAI.
HOW
TO EXCHANGE YOUR SHARES
You can generally
exchange your shares of the Fund for shares of the same class in certain other
PGIM Funds—including PGIM Government Money Market Fund—if you satisfy the
minimum investment requirements. For example, you can exchange Class A shares of
the Fund for Class A shares of other funds in the PGIM Funds mutual fund family,
but you can’t exchange Class A shares for a different share class of another
PGIM Fund.
In addition, Class R6 shares may
not be exchanged for Class R6 shares of the PGIM Target Date Funds or the PGIM
60/40 Allocation Fund. After an exchange, at redemption, any CDSC will be
calculated from the date of the initial purchase, excluding any time that Class
C shares were held in PGIM Government Money Market Fund. We may change the terms
of any exchange privilege after giving you 60 days' notice.
There is no sales
charge for exchanges. However, if you exchange—and then sell—shares within the
applicable CDSC period, you must still pay the applicable CDSC. At the time of
exchange, CDSC liable shares and free shares move proportionally according to
the percentage of total shares you are exchanging. If you have exchanged Class C
shares into PGIM Government Money Market Fund, the time you hold the Class C
shares in the money market fund will not be counted in calculating the required
holding period for CDSC liability.
For investors in
certain programs sponsored by financial intermediaries that offer shares of the
Fund, or whose programs are available through financial intermediaries that
offer shares of the Fund for mutual fund “wrap” or asset allocation programs or
mutual fund “supermarket” programs, an exchange may be made from Class A to
Class Z shares of the Fund in certain limited circumstances. Contact your
program sponsor or financial intermediary with any questions.
Exchanging
Shares Held by a Financial Intermediary. If you hold
shares through a financial intermediary, you must exchange shares through your
financial intermediary.
Exchanging
Shares Held by the Transfer Agent. If you hold
shares through the Transfer Agent, contact your financial advisor or PMFS at
(800) 225-1852 or write to PMFS at:
Prudential
Mutual Fund Services LLC
P.O. Box 534432
Pittsburgh, PA 15253-4432
P.O. Box 534432
Pittsburgh, PA 15253-4432
44
PGIM
Jennison MLP Fund
If you participate
in any fee-based program where the Fund is an available investment option, you
may arrange with the Transfer Agent or your recordkeeper to exchange your Class
A shares, if any, for Class Z shares when you elect to participate in the
fee-based program. When you no longer participate in the program, you may
arrange with the Transfer Agent or your recordkeeper to exchange all of your
Class Z shares, including shares purchased while you were in the program, for
Class A shares.
Remember, as we
explained in the section entitled “Fund Distributions and Tax Issues—If You Sell
or Exchange Your Shares,” exchanging shares is considered a sale for tax
purposes. Therefore, if the shares you exchange are worth more than the amount
that you paid for them, you may have to pay capital gains tax. For additional
information about exchanging shares, see the SAI.
Frequent
Purchases and Redemptions of Fund Shares
The Fund seeks to
prevent patterns of frequent purchases and redemptions of Fund shares by its
shareholders. Frequent purchases and sales of shares of the Fund may adversely
affect Fund performance and the interests of long-term investors. When a
shareholder engages in frequent or short-term trading, the Fund may have to sell
portfolio securities to have the cash necessary to redeem the shareholder's
shares. This can happen when it is not advantageous to sell any securities, so
the Fund's performance may be hurt. When large dollar amounts are involved,
frequent trading can also make it difficult to use long-term investment
strategies because the Fund cannot predict how much cash it will have to invest.
In addition, if the Fund is forced to liquidate investments due to short-term
trading activity, it may incur increased brokerage and tax costs. Similarly, the
Fund may bear increased administrative costs as a result of the asset level and
investment volatility that accompanies patterns of short-term trading. Moreover,
frequent or short-term trading by certain shareholders may cause dilution in the
value of Fund shares held by other shareholders. Funds that invest in non-U.S.
securities may be particularly susceptible to frequent trading because time zone
differences among international stock markets can allow a shareholder engaging
in frequent trading to exploit fund share prices that may be based on closing
prices of non-U.S. securities established some time before the Fund calculates
its own share price. Funds that invest in certain fixed income securities, such
as high-yield bonds or certain asset-backed securities, may also constitute an
effective vehicle for a shareholder's frequent trading strategy.
The Fund does not
knowingly accommodate or permit frequent trading, and the Board has adopted
policies and procedures designed to discourage or prevent frequent trading
activities by Fund shareholders. In an effort to prevent such practices, the
Fund's Transfer Agent monitors trading activity on a daily basis. The Fund has
implemented a trading policy that limits the number of times a shareholder may
purchase Fund shares or exchange into the Fund and then sell those shares within
a specified period of time (a “round-trip transaction”) as established by the
Fund's Chief Compliance Officer (“CCO”). The CCO is authorized to set and modify
the parameters of the trading policy at any time as required to prevent the
adverse impact of frequent trading on Fund shareholders.
The CCO has defined
frequent trading as one or more round-trip transactions in shares of the Fund
within a 30-day period. If this occurs, the shareholder’s account will be
subject to a 60-day warning period. If a second round-trip occurs before the
conclusion of the 60-day warning period, a trading suspension will be placed on
the account by the Fund’s Transfer Agent that will remain in effect for 90 days.
The trading suspension will relate to purchases and exchange purchases (but not
redemptions) in the Fund in which the frequent trading occurred. Exceptions to
the trading policy will not normally be granted.
Transactions in the
PGIM money market funds, exchange-traded funds and PGIM Short-Term Corporate
Bond Fund are excluded from this trading policy. In addition, transactions by
affiliated PGIM Funds or certain unaffiliated funds, which are structured as
“funds-of-funds,” and invest primarily in other mutual funds within the PGIM
Fund family, are not subject to the limitations of the trading policy and are
not considered frequent or short-term trading.
This trading policy
does not apply to systematic purchases and redemptions (e.g., payroll purchases,
systematic withdrawals and rebalancing transactions or other similar
transactions not initiated by a shareholder or financial professional on
the transaction date). Generally, purchases and redemptions will not be
considered “systematic” unless the transaction is pre-established or scheduled
for a specific date.
Visit our website
at www.pgim.com/investments
45
The Fund reserves
the right to reject or cancel, without prior notice, all additional purchases or
exchanges into the Fund by a shareholder. Moreover, the Fund may direct a
broker-dealer or other intermediary to block a shareholder account from future
trading in the Fund. The Transfer Agent will monitor daily trading activity
above a certain threshold, which may be changed from time to time, over a
rolling 90-day period. If a purchase into the Fund is rejected or canceled, the
shareholder will receive a return of the purchase amount.
If the Fund is
offered to qualified plans on an omnibus basis or if Fund shares may be
purchased through other omnibus arrangements, such as through a financial
intermediary such as a broker-dealer, a bank, an insurance company separate
account, an investment adviser, or an administrator or trustee of a retirement
plan (“Intermediaries”) that holds your shares in an account under its name,
Intermediaries maintain the individual beneficial owner records and submit to
the Fund only aggregate orders combining the transactions of many beneficial
owners. The Fund itself generally cannot monitor trading by particular
beneficial owners. The Fund has notified Intermediaries in writing that it
expects the Intermediaries to impose restrictions on transfers by beneficial
owners. Intermediaries may impose different or stricter restrictions on
transfers by beneficial owners.
The Transfer Agent
also reviews aggregate omnibus net flows above a certain threshold. In cases
where the activity is considered unusual, the Intermediary may be contacted by
the Transfer Agent to obtain additional information. The Transfer Agent has the
authority to cancel all or a portion of the trade if the information reveals
that the activity relates to potential offenders. Where appropriate, the
Transfer Agent may request that the Intermediary block a financial adviser or
client from accessing the Fund. If necessary, the Fund may be removed from a
particular Intermediary’s platform.
Shareholders
seeking to engage in frequent trading activities may use a variety of strategies
to avoid detection and, despite the efforts of the Fund to prevent such trading,
there is no guarantee that the Fund, the Transfer Agent or Intermediaries will
be able to identify these shareholders or curtail their trading practices. The
Fund does not have any arrangements intended to permit trading of its shares in
contravention of the policies described above.
Telephone
Redemptions or Exchanges
You may redeem your
shares of the Fund if the proceeds of the redemption do not exceed $250,000 or
exchange your shares in any amount by calling the Fund at (800) 225-1852 and
communicating your instructions in good order to a customer service
representative before 4:00 p.m. Eastern Time. You will receive a redemption or
exchange amount based on that day's NAV. Certain restrictions apply; please see
the section entitled “How to Sell Your Shares—Restrictions on Sales” above for
additional information. In the event that regular trading on the NYSE closes
before 4:00 p.m. Eastern Time, you will receive the following day's NAV if your
order to sell or exchange is received after the close of regular trading on the
NYSE.
The Transfer Agent
will record your telephone instructions and request specific account information
before redeeming or exchanging shares. The Fund will not be liable for losses
due to unauthorized or fraudulent telephone instructions if it follows
instructions that it reasonably believes are made by the shareholder. If the
Fund does not follow reasonable procedures, it may be liable.
In the event of
drastic economic or market changes, you may have difficulty in redeeming or
exchanging your shares by telephone. If this occurs, you should consider
redeeming or exchanging your shares by mail or through your broker.
The telephone
redemption and exchange procedures may be modified or terminated at any time. If
this occurs, you will receive a written notice from the Fund.
Expedited
Redemption Privilege
If you have
selected the Expedited Redemption Privilege, you may have your redemption
proceeds sent directly to your bank account. Expedited redemption requests may
be made by telephone or letter, must be received by the Transfer Agent prior to
4:00 p.m. Eastern Time to receive a redemption amount based on that day's NAV
and are subject to the terms and conditions regarding the redemption of shares.
In the event that regular trading on the NYSE closes before
46
PGIM
Jennison MLP Fund
4:00 p.m. Eastern
Time, you will receive the following day's NAV if your order to sell is received
after the close of regular trading on the NYSE. For more information, see the
SAI. The Expedited Redemption Privilege may be modified or terminated at any
time without notice.
Visit our website
at www.pgim.com/investments
47
FINANCIAL
HIGHLIGHTS
Introduction
The financial
highlights will help you evaluate the Fund's financial performance for the past
five fiscal years or periods (as applicable). Certain information reflects
financial results for a single fund class share. The total return in each chart
represents the rate that a shareholder would have earned (or lost) on an
investment in the Fund, assuming investment at the start of the period and
reinvestment of all dividends and other distributions. The information is for
the periods indicated.
These financial
highlights for the fiscal years ended November 30, 2020 and after were derived
from the financial statements audited by PricewaterhouseCoopers LLP, an
independent registered public accounting firm, whose report on those financial
statements was unqualified. The information for the fiscal years or periods (as
applicable) prior to the fiscal year ended November 30, 2020 was audited by
another independent registered public accounting firm.
A copy of the
Fund's annual report, including the Fund's audited financial statements and
report of independent registered public accounting firm, is available upon
request, at no charge, as described on the back cover of this
Prospectus.
48
PGIM
Jennison MLP Fund
|
Class
A Shares | |||||
|
|
Year
Ended November 30, | ||||
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
|
Per
Share Operating Performance(a): | |||||
|
Net
Asset Value, Beginning of Year |
$7.03 |
$5.76 |
$4.42 |
$5.87 |
$6.50 |
|
Income
(loss) from investment operations: | |||||
|
Net
investment income (loss) |
0.03 |
(0.02) |
(-)(b)(c) |
0.02 |
-(c) |
|
Net
realized and unrealized gain (loss) on investment and foreign currency
transactions |
0.53 |
1.68 |
1.66 |
(1.12) |
(0.18) |
|
Total
from investment operations |
0.56 |
1.66 |
1.66 |
(1.10) |
(0.18) |
|
Less
Dividends and Distributions: | |||||
|
Dividends
from net investment income |
(0.47) |
(0.39) |
(0.11) |
- |
- |
|
Tax
return of capital distributions |
- |
- |
(0.21) |
(0.35) |
(0.45) |
|
Total
dividends and distributions |
(0.47) |
(0.39) |
(0.32) |
(0.35) |
(0.45) |
|
Net
asset value, end of Year |
$7.12 |
$7.03 |
$5.76 |
$4.42 |
$5.87 |
|
Total
Return(d): |
8.63% |
29.47% |
37.90% |
(18.96)% |
(3.24)% |
|
| |||||
|
Ratios/Supplemental
Data: | |||||
|
Net
assets, end of Year
(000) |
$39,391 |
$38,163 |
$28,139 |
$20,308 |
$45,620 |
|
Average
net assets (000) |
$38,031 |
$33,865 |
$25,733 |
$28,294 |
$51,347 |
|
Ratios
to average net assets(e): | |||||
|
Expenses
after waivers and/or expense reimbursement, before
taxes |
1.47% |
1.48% |
1.50% |
1.50% |
1.47% |
|
Expenses
after waivers and/or expense reimbursement, after taxes(f) |
3.58% |
7.35% |
1.02% |
1.97% |
1.43% |
|
Expenses
before waivers and/or expense reimbursement, before
taxes |
1.52% |
1.53% |
1.55% |
1.57% |
1.52% |
|
Net
investment income (loss) |
0.46% |
(0.26)% |
(0.03)% |
0.44% |
0.05% |
|
Net
investment income (loss), after taxes(g) |
0.31% |
(0.26)% |
(0.03)% |
0.45% |
0.05% |
|
Portfolio
turnover rate(h) |
40% |
37% |
42% |
45% |
23% |
|
(a) |
Calculated
based on average shares outstanding during the
year. |
|
(b) |
The
per share amount of net investment income (loss) does not directly
correlate to the amounts reported in the Statement of Operations due to
class specific expenses. |
|
(c) |
Amount
rounds to zero. |
|
(d) |
Total
return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of a share on the first day and a sale on
the last day of each year
reported
and includes reinvestment of dividends and distributions, if any. Total
returns may reflect adjustments to conform to
GAAP. |
|
(e) |
Does
not include expenses of the underlying funds in which the Fund
invests. |
|
(f) |
Tax
estimate for the ratio calculation is derived from the net investment
income (loss), realized and unrealized gains
(losses). |
|
(g) |
Tax
estimate for the ratio calculation is derived from the net investment
income (loss) only. |
|
(h) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short-term
investments, certain derivatives
and
in-kind transactions (if any). If such transactions were included, the
Fund's portfolio turnover rate may be
higher. |
Visit our website
at www.pgim.com/investments
49
|
Class
C Shares | |||||
|
|
Year
Ended November 30, | ||||
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
|
Per
Share Operating Performance(a): | |||||
|
Net
Asset Value, Beginning of Year |
$6.42 |
$5.33 |
$4.14 |
$5.56 |
$6.22 |
|
Income
(loss) from investment operations: | |||||
|
Net
investment income (loss) |
(0.01)(b) |
(0.06) |
(0.03)(b) |
(0.02)(b) |
(0.03) |
|
Net
realized and unrealized gain (loss) on investment and foreign currency
transactions |
0.47 |
1.54 |
1.54 |
(1.05) |
(0.18) |
|
Total
from investment operations |
0.46 |
1.48 |
1.51 |
(1.07) |
(0.21) |
|
Less
Dividends and Distributions: | |||||
|
Dividends
from net investment income |
(0.47) |
(0.39) |
(0.11) |
- |
- |
|
Tax
return of capital distributions |
- |
- |
(0.21) |
(0.35) |
(0.45) |
|
Total
dividends and distributions |
(0.47) |
(0.39) |
(0.32) |
(0.35) |
(0.45) |
|
Net
asset value, end of Year |
$6.41 |
$6.42 |
$5.33 |
$4.14 |
$5.56 |
|
Total
Return(c): |
7.88% |
28.44% |
36.83% |
(19.49)% |
(3.89)% |
|
| |||||
|
Ratios/Supplemental
Data: | |||||
|
Net
assets, end of Year
(000) |
$31,067 |
$34,626 |
$27,871 |
$22,823 |
$38,772 |
|
Average
net assets (000) |
$31,833 |
$31,511 |
$27,590 |
$27,522 |
$47,560 |
|
Ratios
to average net assets(d): | |||||
|
Expenses
after waivers and/or expense reimbursement, before
taxes |
2.20% |
2.21% |
2.23% |
2.25% |
2.21% |
|
Expenses
after waivers and/or expense reimbursement, after taxes(e) |
4.31% |
8.08% |
1.75% |
2.72% |
2.17% |
|
Expenses
before waivers and/or expense reimbursement, before
taxes |
2.20% |
2.21% |
2.23% |
2.25% |
2.21% |
|
Net
investment income (loss) |
(0.20)% |
(0.96)% |
(0.68)% |
(0.38)% |
(0.56)% |
|
Net
investment income (loss), after taxes(f) |
(0.35)% |
(0.96)% |
(0.68)% |
(0.37)% |
(0.56)% |
|
Portfolio
turnover rate(g) |
40% |
37% |
42% |
45% |
23% |
|
(a) |
Calculated
based on average shares outstanding during the
year. |
|
(b) |
The
per share amount of net investment income (loss) does not directly
correlate to the amounts reported in the Statement of Operations due to
class specific expenses. |
|
(c) |
Total
return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of a share on the first day and a sale on
the last day of each year
reported
and includes reinvestment of dividends and distributions, if any. Total
returns may reflect adjustments to conform to
GAAP. |
|
(d) |
Does
not include expenses of the underlying funds in which the Fund
invests. |
|
(e) |
Tax
estimate for the ratio calculation is derived from the net investment
income (loss), realized and unrealized gains
(losses). |
|
(f) |
Tax
estimate for the ratio calculation is derived from the net investment
income (loss) only. |
|
(g) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short-term
investments, certain derivatives
and
in-kind transactions (if any). If such transactions were included, the
Fund's portfolio turnover rate may be
higher. |
50
PGIM
Jennison MLP Fund
|
Class
Z Shares | |||||
|
|
Year
Ended November 30, | ||||
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
|
Per
Share Operating Performance(a): | |||||
|
Net
Asset Value, Beginning of Year |
$7.26 |
$5.93 |
$4.53 |
$5.98 |
$6.60 |
|
Income
(loss) from investment operations: | |||||
|
Net
investment income (loss) |
0.06 |
-(b)(c) |
0.02 |
0.03 |
0.02 |
|
Net
realized and unrealized gain (loss) on investment and foreign currency
transactions |
0.55 |
1.72 |
1.70 |
(1.13) |
(0.19) |
|
Total
from investment operations |
0.61 |
1.72 |
1.72 |
(1.10) |
(0.17) |
|
Less
Dividends and Distributions: | |||||
|
Dividends
from net investment income |
(0.47) |
(0.39) |
(0.11) |
- |
- |
|
Tax
return of capital distributions |
- |
- |
(0.21) |
(0.35) |
(0.45) |
|
Total
dividends and distributions |
(0.47) |
(0.39) |
(0.32) |
(0.35) |
(0.45) |
|
Net
asset value, end of Year |
$7.40 |
$7.26 |
$5.93 |
$4.53 |
$5.98 |
|
Total
Return(d): |
9.06% |
29.64% |
38.32% |
(18.60)% |
(2.89)% |
|
| |||||
|
Ratios/Supplemental
Data: | |||||
|
Net
assets, end of Year
(000) |
$411,752 |
$425,535 |
$323,886 |
$252,513 |
$352,610 |
|
Average
net assets (000) |
$402,196 |
$387,625 |
$315,208 |
$267,715 |
$388,262 |
|
Ratios
to average net assets(e): | |||||
|
Expenses
after waivers and/or expense reimbursement, before
taxes |
1.18% |
1.19% |
1.19% |
1.20% |
1.17% |
|
Expenses
after waivers and/or expense reimbursement, after taxes(f) |
3.29% |
7.06% |
0.71% |
1.67% |
1.13% |
|
Expenses
before waivers and/or expense reimbursement, before
taxes |
1.18% |
1.19% |
1.19% |
1.20% |
1.17% |
|
Net
investment income (loss) |
0.80% |
0.06% |
0.34% |
0.62% |
0.37% |
|
Net
investment income (loss), after taxes(g) |
0.65% |
0.06% |
0.35% |
0.63% |
0.37% |
|
Portfolio
turnover rate(h) |
40% |
37% |
42% |
45% |
23% |
|
(a) |
Calculated
based on average shares outstanding during the
year. |
|
(b) |
The
per share amount of net investment income (loss) does not directly
correlate to the amounts reported in the Statement of Operations due to
class specific expenses. |
|
(c) |
Amount
rounds to zero. |
|
(d) |
Total
return is calculated assuming a purchase of a share on the first day and a
sale on the last day of each year reported and includes reinvestment of
dividends and
distributions,
if any. Total returns may reflect adjustments to conform to
GAAP. |
|
(e) |
Does
not include expenses of the underlying funds in which the Fund
invests. |
|
(f) |
Tax
estimate for the ratio calculation is derived from the net investment
income (loss), realized and unrealized gains
(losses). |
|
(g) |
Tax
estimate for the ratio calculation is derived from the net investment
income (loss) only. |
|
(h) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short-term
investments, certain derivatives
and
in-kind transactions (if any). If such transactions were included, the
Fund's portfolio turnover rate may be
higher. |
Visit our website
at www.pgim.com/investments
51
|
Class
R6 Shares | |||||
|
|
Year
Ended November 30, | ||||
|
|
2023 |
2022 |
2021 |
2020 |
2019 |
|
Per
Share Operating Performance(a): | |||||
|
Net
Asset Value, Beginning of Year |
$7.28 |
$5.93 |
$4.53 |
$5.98 |
$6.59 |
|
Income
(loss) from investment operations: | |||||
|
Net
investment income (loss) |
0.06 |
-(b)(c) |
0.01 |
0.02 |
0.07 |
|
Net
realized and unrealized gain (loss) on investment and foreign currency
transactions |
0.55 |
1.74 |
1.71 |
(1.12) |
(0.23) |
|
Total
from investment operations |
0.61 |
1.74 |
1.72 |
(1.10) |
(0.16) |
|
Less
Dividends and Distributions: | |||||
|
Dividends
from net investment income |
(0.47) |
(0.39) |
(0.11) |
- |
- |
|
Tax
return of capital distributions |
- |
- |
(0.21) |
(0.35) |
(0.45) |
|
Total
dividends and distributions |
(0.47) |
(0.39) |
(0.32) |
(0.35) |
(0.45) |
|
Net
asset value, end of Year |
$7.42 |
$7.28 |
$5.93 |
$4.53 |
$5.98 |
|
Total
Return(d): |
9.04% |
29.99% |
38.32% |
(18.60)% |
(2.89)% |
|
| |||||
|
Ratios/Supplemental
Data: | |||||
|
Net
assets, end of Year
(000) |
$56,523 |
$64,413 |
$42,615 |
$17,116 |
$2,611 |
|
Average
net assets (000) |
$55,166 |
$53,695 |
$35,663 |
$3,836 |
$7,303 |
|
Ratios
to average net assets(e): | |||||
|
Expenses
after waivers and/or expense reimbursement, before
taxes |
1.09% |
1.10% |
1.11% |
1.20% |
1.17% |
|
Expenses
after waivers and/or expense reimbursement, after taxes(f) |
3.20% |
6.97% |
0.63% |
1.67% |
1.13% |
|
Expenses
before waivers and/or expense reimbursement, before
taxes |
1.09% |
1.10% |
1.11% |
1.33% |
1.41% |
|
Net
investment income (loss) |
0.89% |
0.01% |
0.21% |
0.53% |
1.06% |
|
Net
investment income (loss), after taxes(g) |
0.74% |
0.01% |
0.22% |
0.54% |
1.06% |
|
Portfolio
turnover rate(h) |
40% |
37% |
42% |
45% |
23% |
|
(a) |
Calculated
based on average shares outstanding during the
year. |
|
(b) |
The
per share amount of net investment income (loss) does not directly
correlate to the amounts reported in the Statement of Operations due to
class specific expenses. |
|
(c) |
Amount
rounds to zero. |
|
(d) |
Total
return is calculated assuming a purchase of a share on the first day and a
sale on the last day of each year reported and includes reinvestment of
dividends and
distributions,
if any. Total returns may reflect adjustments to conform to
GAAP. |
|
(e) |
Does
not include expenses of the underlying funds in which the Fund
invests. |
|
(f) |
Tax
estimate for the ratio calculation is derived from the net investment
income (loss), realized and unrealized gains
(losses). |
|
(g) |
Tax
estimate for the ratio calculation is derived from the net investment
income (loss) only. |
|
(h) |
The
Fund's portfolio turnover rate is calculated in accordance with regulatory
requirements, without regard to transactions involving short-term
investments, certain derivatives
and
in-kind transactions (if any). If such transactions were included, the
Fund's portfolio turnover rate may be
higher. |
52
PGIM
Jennison MLP Fund
GLOSSARY
FUND
Indices
Alerian MLP
Index. The Alerian MLP
Index is an unmanaged index and the leading gauge of energy infrastructure
Master Limited Partnerships (MLPs). The capped, float-adjusted, and
capitalization-weighted index is comprised of securities that
earn the majority of their cash flow from midstream activities involving energy
commodities. Index returns do not include the effect of any sales charges,
mutual fund operating expenses or taxes. These returns would be lower if they
included the effect of these expenses.
S&P 500
Index. The S&P 500
Index is an unmanaged index of over 500 stocks of large U.S. public companies.
It gives a broad look at how large company stocks in the United States have
performed. These returns do not include the effect of any sales charges,
operating expenses of a mutual fund or taxes. These returns would be lower if
they included the effect of these expenses.
The S&P 500 Index is a product
of S&P Dow Jones Indices LLC and/or its affiliates and has been licensed for
use by PGIM, Inc. and/or its affiliates. Copyright © 2024 S&P Dow Jones
Indices LLC, a division of S&P Global, Inc., and/or its affiliates. All
rights reserved. Redistribution or reproduction in whole or in part are
prohibited without written permission of S&P Dow Jones Indices LLC. For more
information on any of S&P Dow Jones Indices LLC’s indices please visit
www.spdji.com. S&P® is a registered trademark of S&P Global and Dow
Jones® is a registered trademark of Dow Jones Trademark Holdings
LLC.
Visit our website
at www.pgim.com/investments
53
APPENDIX A:
WAIVERS AND DISCOUNTS AVAILABLE FROM CERTAIN FINANCIAL
INTERMEDIARIES
The availability of
certain sales charge waivers and discounts will depend on whether you purchase
your shares directly from the Fund or through a financial intermediary.
Intermediaries may have different policies and procedures regarding the
availability of front-end sales load waivers or contingent deferred sales charge
(“CDSC”) waivers (i.e., back-end), which are discussed below. In all instances,
it is the purchaser's responsibility to notify the Fund or the purchaser's
financial intermediary at the time of purchase of any relationship or other
facts qualifying the purchaser for sales charge waivers or discounts.
For
waivers and discounts not available through a particular intermediary,
shareholders will have to purchase Fund shares through the applicable
intermediary to receive these waivers or discounts.
Merrill
Lynch
Effective April 1, 2024, purchases
or sales of front-end (i.e. Class A) or level-load (i.e., Class C) mutual fund
shares through a Merrill platform or account will be eligible only for the
following sales load waivers (front-end, contingent deferred, or back-end
waivers) and discounts, which may differ from those disclosed elsewhere in this
Fund’s prospectus. Purchasers will have to buy mutual fund shares directly from
the mutual fund company or through another intermediary to be eligible for
waivers or discounts not listed below.
It is the client’s responsibility
to notify Merrill at the time of purchase or sale of any relationship or other
facts that qualify the transaction for a waiver or discount. A Merrill
representative may ask for reasonable documentation of such facts and Merrill
may condition the granting of a waiver or discount on the timely receipt of such
documentation.
Additional information on waivers
and discounts is available in the Merrill Sales Load Waiver and Discounts
Supplement (the “Merrill SLWD Supplement”) and in the Mutual Fund Investing at
Merrill pamphlet at ml.com/funds. Clients are encouraged to review these
documents and speak with their financial advisor to determine whether a
transaction is eligible for a waiver or discount.
Front-end Load
Waivers Available at Merrill
◾
Shares of mutual funds available
for purchase by employer-sponsored retirement, deferred compensation, and
employee benefit plans (including health savings accounts) and trusts used to
fund those plans provided the shares are not held in a commission-based
brokerage account and shares are held for the benefit of the plan. For purposes
of this provision, employer-sponsored retirement plans do not include SEP IRAs,
Simple IRAs, SAR-SEPs or Keogh plans.
◾
Shares purchased through a Merrill
investment advisory program.
◾
Brokerage class shares exchanged
from advisory class shares due to the holdings moving from a Merrill investment
advisory program to a Merrill brokerage account.
◾
Shares purchased through the
Merrill Edge Self-Directed platform.
◾
Shares purchased through the
systematic reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same mutual fund in the same account.
◾
Shares exchanged from level-load
shares to front-end load shares of the same mutual fund in accordance with the
description in the Merrill SLWD Supplement.
◾
Shares purchased by eligible
employees of Merrill or its affiliates and their family members who purchase
shares in accounts within the employee’s Merrill Household (as defined in the
Merrill SLWD Supplement).
◾
Shares purchased by eligible
persons associated with the fund as defined in this prospectus (e.g. the fund’s
officers or trustees).
◾
Shares purchased from the proceeds
of a mutual fund redemption in front-end load shares provided (1) the repurchase
is in a mutual fund within the same fund family; (2) the repurchase occurs
within 90 calendar days from the redemption trade date, and (3) the redemption
and purchase occur in the same account (known as Rights of Reinstatement).
Automated transactions (i.e. systematic purchases and withdrawals) and purchases
made after shares are automatically sold to pay Merrill’s account maintenance
fees are not eligible for Rights of Reinstatement.
54
Contingent
Deferred Sales Charge (“CDSC”) Waivers on Front-end, Back-end, and Level Load
Shares Available at Merrill
◾
Shares sold due to the client’s
death or disability (as defined by Internal Revenue Code Section
22e(3)).
◾
Shares sold pursuant to a
systematic withdrawal program subject to Merrill’s maximum systematic withdrawal
limits as described in the Merrill SLWD Supplement.
◾
Shares sold due to return of excess
contributions from an IRA account.
◾
Shares sold as part of a required
minimum distribution for IRA and retirement accounts due to the investor
reaching the qualified age based on applicable IRS regulation.
◾
Front-end or level-load shares held
in commission-based, non-taxable retirement brokerage accounts (e.g.
traditional, Roth, rollover, SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans)
that are transferred to fee-based accounts or platforms and exchanged for a
lower cost share class of the same mutual fund.
Front-end Load
Discounts Available at Merrill: Breakpoints, Rights of Accumulation &
Letters of Intent
◾
Breakpoint discounts, as described
in this prospectus, where the sales load is at or below the maximum sales load
that Merrill permits to be assessed to a front-end load purchase, as described
in the Merrill SLWD Supplement.
◾
Rights of Accumulation (ROA), as
described in the Merrill SLWD Supplement, which entitle clients to breakpoint
discounts based on the aggregated holdings of mutual fund family assets held in
accounts in their Merrill Household.
◾
Letters of Intent (LOI), which
allow for breakpoint discounts on eligible new purchases based on anticipated
future eligible purchases within a fund family at Merrill, in accounts within
your Merrill Household, as further described in the Merrill SLWD
Supplement.
Prior to April 1, 2024,
Shareholders purchasing Fund shares through a Merrill Lynch platform or account
are eligible only for the following load waivers (front-end sales charge waivers
and contingent deferred, or back-end, sales charge waivers) and discounts, as
applicable, which may differ from those disclosed elsewhere in this Fund's
Prospectus or SAI.
Front-end
Sales Load Waivers on Class A Shares available at Merrill Lynch
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan
◾
Shares purchased by
a 529 Plan (does not include 529 Plan units or 529-specific share classes or
equivalents)
◾
Shares purchased
through a Merrill Lynch affiliated investment advisory program
◾
Shares exchanged
due to the holdings moving from a Merrill Lynch affiliated investment advisory
program to a Merrill Lynch brokerage (non-advisory) account pursuant to Merrill
Lynch’s policies relating to sales load discounts and waivers
◾
Shares purchased by
third party investment advisors on behalf of their advisory clients through
Merrill Lynch’s platform
◾
Shares of funds
purchased through the Merrill Edge Self-Directed platform
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family)
◾
Shares exchanged
from Class C (i.e. level-load) shares of the same fund pursuant to Merrill
Lynch’s policies relating to sales load discounts and waivers
◾
Employees and
registered representatives of Merrill Lynch or its affiliates and their family
members
◾
Directors or
Trustees of the Fund, and employees of the Fund’s investment adviser or any of
its affiliates, as described in this Prospectus
◾
Eligible shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of
Reinstatement). Automated transactions (i.e. systematic purchases and
withdrawals) and purchases made after shares are automatically sold to pay
Merrill Lynch’s account maintenance fees are not eligible for
reinstatement
CDSC
Waivers on Class A and C Shares available at Merrill Lynch
◾
Death or disability
of the shareholder
◾
Shares sold as part
of a systematic withdrawal plan as described in this Prospectus
55
◾
Return of excess
contributions from an IRA Account
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts pursuant to
the Internal Revenue Code
◾
Shares sold to pay
Merrill Lynch fees but only if the transaction is initiated by Merrill
Lynch
◾
Shares acquired
through a Right of Reinstatement
◾
Shares held in
retirement brokerage accounts, that are exchanged for a lower cost share class
due to transfer to certain fee based accounts or platforms
◾
Shares received
through an exchange due to the holdings moving from a Merrill Lynch affiliated
investment advisory program to a Merrill Lynch brokerage (non-advisory) account
pursuant to Merrill Lynch’s policies relating to sales load discounts and
waivers
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation
& Letters of Intent
◾
Breakpoints as
described in this Prospectus
◾
Rights of
Accumulation (“ROA”) which entitle shareholders to breakpoint discounts as
described in the Fund’s Prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts (including 529 program
holdings, where applicable) within the purchaser’s household at Merrill Lynch.
Eligible fund family assets not held at Merrill Lynch may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor about
such assets
◾
•
Letters of Intent (“LOI”) which
allow for breakpoint discounts based on anticipated purchases within a fund
family, through Merrill Lynch, over a 13-month period of time
Morgan
Stanley Wealth Management
Shareholders
purchasing Fund shares through a Morgan Stanley Wealth Management transactional
brokerage account are eligible only for the following front-end sales charge
waivers with respect to Class A shares, which may differ from and be more
limited than those disclosed elsewhere in this Fund's Prospectus or
SAI.
Front-End
Sales Charge Waivers on Class A Shares Available at Morgan Stanley Wealth
Management
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans
◾
Morgan Stanley
employee and employee-related accounts according to Morgan Stanley’s account
linking rules
◾
Shares purchased
through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund
◾
Shares purchased
through a Morgan Stanley self-directed brokerage account
◾
Class C (i.e.,
level-load) shares that are no longer subject to a contingent deferred sales
charge and are converted to Class A shares of the same fund pursuant to Morgan
Stanley Wealth Management’s share class conversion program
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (i) the
repurchase occurs within 90 days following the redemption, (ii) the redemption
and purchase occur in the same account, and (iii) redeemed shares were subject
to a front-end or deferred sales charge
Ameriprise
Financial
Class
A Shares Front-End Sales Charge Waivers Available at Ameriprise
Financial
The following
information applies to Class A shares purchases if you have an account with or
otherwise purchase Fund shares through Ameriprise Financial.
Shareholders
purchasing Fund shares through an Ameriprise Financial brokerage account are
eligible for the following front-end sales charge waivers and discounts, which
may differ from those disclosed elsewhere in this Fund's Prospectus or
SAI.
56
◾
Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family).
◾
Shares exchanged
from Class C shares of the same fund in the month of or following the 7-year
anniversary of the purchase date. To the extent that this Prospectus elsewhere
provides for a waiver with respect to exchanges of Class C shares or conversion
of Class C shares following a shorter holding period, that waiver will
apply.
◾
Employees and
registered representatives of Ameriprise Financial or its affiliates and their
immediate family members.
◾
Shares purchased by
or through qualified accounts (including IRAs, Coverdell Education Savings
Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit
plans) that are held by a covered family member, defined as an Ameriprise
financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant
(mother, father, grandmother, grandfather, great grandmother, great
grandfather), advisor’s lineal descendant (son, step-son, daughter,
step-daughter, grandson, granddaughter, great grandson, great granddaughter) or
any spouse of a covered family member who is a lineal descendant.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (i.e. Rights of Reinstatement).
Raymond
James & Associates, Inc., Raymond James Financial Services and each entity’s
affiliates (“Raymond James”)
Shareholders
purchasing fund shares through a Raymond James platform or account, or through
an introducing broker-dealer or independent registered investment adviser for
which Raymond James provides trade execution, clearance, and/or custody
services, will be eligible only for the following load waivers (front-end sales
charge waivers and contingent deferred, or back-end, sales charge waivers) and
discounts, which may differ from those disclosed elsewhere in this Fund’s
Prospectus or SAI.
Front-end
sales load waivers on Class A shares available at Raymond James
◾
Shares purchased in
an investment advisory program.
◾
Shares purchased
within the same fund family through a systematic reinvestment of capital gains
and dividend distributions.
◾
Employees and
registered representatives of Raymond James or its affiliates and their family
members as designated by Raymond James.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of
Reinstatement).
◾
A shareholder in
the Fund’s Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if the shares are no
longer subject to a CDSC and the conversion is in line with the policies and
procedures of Raymond James.
CDSC
Waivers on Classes A and C shares available at Raymond James
◾
Death or disability
of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the Fund’s
Prospectus.
◾
Return of excess
contributions from an IRA Account.
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching the qualified age based on applicable IRS regulations as
described in the Fund’s Prospectus.
◾
Shares sold to pay
Raymond James fees but only if the transaction is initiated by Raymond
James.
◾
Shares acquired
through a right of reinstatement.
Front-end
load discounts available at Raymond James: breakpoints, and/or rights of
accumulation, and/or letters of intent
◾
Breakpoints as
described in this Prospectus.
57
◾
Rights of
accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Raymond James. Eligible
fund family assets not held at Raymond James may be included in the calculation
of rights of accumulation only if the shareholder notifies his or her financial
advisor about such assets.
◾
Letters of intent
which allow for breakpoint discounts based on anticipated purchases within a
fund family, over a 13-month time period. Eligible fund family assets not held
at Raymond James may be included in the calculation of letters of intent only if
the shareholder notifies his or her financial advisor about such
assets.
Edward D. Jones
& Co., L.P. (“Edward Jones”)
Policies
Regarding Transactions Through Edward Jones
◾
Effective on or after January 1st, 2024, the
following information supersedes prior information with respect to transactions
and positions held in fund shares through an Edward Jones system. Clients of
Edward Jones (also referred to as “shareholders”) purchasing fund shares on the
Edward Jones commission and fee-based platforms are eligible only for the
following sales charge discounts (also referred to as “breakpoints”) and
waivers, which can differ from discounts and waivers described elsewhere in the
mutual fund prospectus or statement of additional information (“SAI”) or through
another broker-dealer. In all instances, it is the shareholder's responsibility
to inform Edward Jones at the time of purchase of any relationship, holdings of
PGIM Funds, or other facts qualifying the purchaser for discounts or waivers.
Edward Jones can ask for documentation of such circumstance. Shareholders should
contact Edward Jones if they have questions regarding their eligibility for
these discounts and waivers.
Breakpoints
◾
Breakpoint pricing, otherwise known
as volume pricing, at dollar thresholds as described in the prospectus.
Rights
of Accumulation (“ROA”)
◾
The applicable sales charge on a
purchase of Class A shares is determined by taking into account all share
classes (except certain money market funds and any assets held in group
retirement plans) of PGIM Funds held by the shareholder or in an account grouped
by Edward Jones with other accounts for the purpose of providing certain pricing
considerations (“pricing groups”). If grouping assets as a shareholder, this
includes all share classes held on the Edward Jones platform and/or held on
another platform. The inclusion of eligible fund family assets in the ROA
calculation is dependent on the shareholder notifying Edward Jones of such
assets at the time of calculation. Money market funds are included only if such
shares were sold with a sales charge at the time of purchase or acquired in
exchange for shares purchased with a sales charge.
◾
The employer
maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or
change ROA for the IRA accounts associated with the plan to a plan-level
grouping as opposed to including all share classes at a shareholder or pricing
group level.
◾
ROA is determined
by calculating the higher of cost minus redemptions or market value (current
shares x NAV).
Letter
of Intent (“LOI”)
◾
Through a LOI,
shareholders can receive the sales charge and breakpoint discounts for purchases
shareholders intend to make over a 13-month period from the date Edward Jones
receives the LOI. The LOI is determined by calculating the higher of cost or
market value of qualifying holdings at LOI initiation in combination with the
value that the shareholder intends to buy over a 13-month period to calculate
the front-end sales charge and any breakpoint discounts. Each purchase the
shareholder makes during that 13-month period will receive the sales charge and
breakpoint discount that applies to the total amount. The inclusion of eligible
fund family assets in the LOI calculation is dependent on the shareholder
notifying Edward Jones of such assets at the time of calculation. Purchases made
before the LOI is received by Edward Jones are not adjusted under the LOI and
will not reduce the sales charge previously paid. Sales charges will be adjusted
if LOI is not met.
◾
If the employer maintaining a SEP
IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the
IRA accounts associated with the plan to a plan-level grouping, LOIs will also
be at the plan-level and may only be established by the employer.
Sales
Charge Waivers
Sales charges are
waived for the following shareholders and in the following
situations:
58
◾
Associates of Edward Jones and its
affiliates and other accounts in the same pricing group (as determined by Edward
Jones under its policies and procedures) as the associate. This waiver will
continue for the remainder of the associate's life if the associate retires from
Edward Jones in good-standing and remains in good standing pursuant to Edward
Jones' policies and procedures.
◾
Shares purchased in
an Edward Jones fee-based program.
◾
Shares purchased through
reinvestment of capital gains distributions and dividend reinvestment. Shares
purchased from the proceeds of redeemed shares of the same fund family so long
as the following conditions are met: the proceeds are from the sale of shares
within 60 days of the purchase, the sale and purchase are made from a share
class that charges a front load and one of the following:
◾
The redemption and repurchase occur
in the same account.
◾
The redemption proceeds are used to
process an: IRA contribution, excess contributions, conversion, recharacterizing
of contributions, or distribution, and the repurchase is done in an account
within the same Edward Jones grouping for ROA.
◾
Shares exchanged into Class A
shares from another share class so long as the exchange is into the same fund
and was initiated at the discretion of Edward Jones. Edward Jones is responsible
for any remaining CDSC due to the fund company, if applicable. Any future
purchases are subject to the applicable sales charge as disclosed in the
prospectus.
◾
Exchanges from
Class C shares to Class A shares of the same fund, generally, in the 84th month
following the anniversary of the purchase date or earlier at the discretion of
Edward Jones.
◾
Purchases of Class 529-A shares
through a rollover from either another education savings plan or a security used
for qualified distributions.
◾
Purchases of Class 529 shares made
for recontribution of refunded amounts.
Contingent
Deferred Sales Charge (“CDSC”) Waivers
If the shareholder
purchases shares that are subject to a CDSC and those shares are redeemed before
the CDSC is expired, the shareholder is responsible to pay the CDSC except in
the following conditions:
◾
The death or disability of the
shareholder.
◾
Systematic withdrawals with up to
10% per year of the account value.
◾
Return of excess contributions from
an Individual Retirement Account (IRA).
◾
Shares redeemed as part of a
required minimum distribution for IRA and retirement accounts if the redemption
is taken in or after the year the shareholder reaches qualified age based on
applicable IRS regulations.
◾
Shares redeemed to pay Edward Jones
fees or costs in such cases where the transaction is initiated by Edward
Jones.
◾
Shares exchanged in an Edward Jones
fee-based program.
◾
Shares acquired through NAV
reinstatement.
◾
Shares redeemed at
the discretion of Edward Jones for Minimum Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward Jones
Minimum Purchase
Amounts
◾
Initial purchase
minimum: $250
◾
Subsequent purchase
minimum: none
Minimum
Balances
◾
Edward Jones has
the right to redeem at its discretion fund holdings with a balance of $250 or
less. The following are examples of accounts that are not included in this
policy:
◾
A fee-based account
held on an Edward Jones platform
◾
A 529 account held
on an Edward Jones platform
◾
An account with an
active systematic investment plan or LOI
Exchanging
Share Classes
◾
At any time it deems necessary,
Edward Jones has the authority to exchange at NAV a shareholder's holdings in a
fund to Class A shares of the same fund.
59
Janney
Montgomery Scott LLC (“Janney”)
Shareholders
purchasing Fund shares through a Janney account are eligible only for the
following load waivers (front-end sales charge waivers and contingent deferred,
or back-end, sales charge waivers) and discounts, which may differ from those
disclosed elsewhere in this Fund's Prospectus or SAI.
Front-end
sales charge waivers on Class A shares available at Janney
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the fund
family).
◾
Shares purchased by
employees and registered representatives of Janney or its affiliates and their
family members as designated by Janney.
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within ninety (90) days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (i.e., right of
reinstatement).
◾
Class C shares that
are no longer subject to a contingent deferred sales charge and are converted to
Class A shares of the same fund pursuant to Janney’s policies and
procedures.
Sales
charge waivers on Class A and C shares available at Janney
◾
Shares sold upon
the death or disability of the shareholder.
◾
Shares sold as part
of a systematic withdrawal plan as described in the Fund’s
Prospectus.
◾
Shares purchased in
connection with a return of excess contributions from an IRA
account.
◾
Shares sold as part
of a required minimum distribution for IRA and other retirement accounts due to
the shareholder reaching the qualified age based on applicable IRS regulations
as described in the Fund’s Prospectus.
◾
Shares sold to pay
Janney fees but only if the transaction is initiated by Janney.
◾
Shares acquired
through a right of reinstatement.
Front-end
load discounts available at Janney: breakpoints, and/or rights of
accumulation
◾
Breakpoints as
described in the Fund’s Prospectus.
◾
Rights of
accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will
be automatically calculated based on the aggregated holding of Fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such
assets.
Oppenheimer
& Co. Inc. (“OPCO”)
Shareholders
purchasing Fund shares through an OPCO platform or account will only be eligible
for the following sales charge waivers (front-end sales charge waivers and
contingent deferred sales charge (“CDSC”) waivers (i.e., back-end)) and
discounts, which may differ from those disclosed elsewhere in this Prospectus or
the SAI.
Front-End
Sales Charge Waivers on Class A share available at OPCO
◾
Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan
◾
Shares purchased by
or through a 529 Plan
◾
Shares purchased
through an OPCO affiliated investment advisory program
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund (but not any other fund within the PGIM
fund family)
◾
Shares purchased
from the proceeds of redemptions within the same fund family, provided (1) the
repurchase occurs within 90 days following the redemption, (2) the redemption
and purchase occur in the same account, and (3) redeemed shares were subject to
a front-end or deferred sales load (known as Rights of
Reinstatement)
◾
A shareholder in
the Fund’s Class C shares will have their shares converted at net asset value to
Class A shares (or the appropriate share class) of the Fund if the shares are no
longer subject to a CDSC and the conversion is in line with the policies and
procedures of OPCO
◾
Employees and
registered representatives of OPCO or its affiliates and their family
members
60
◾
Directors or
Trustees of the Fund, and employees of the Fund’s investment adviser or any of
its affiliates, as described in this Prospectus
Contingent
Deferred Sales Charge (“CDSC”) Waivers available at OPCO
◾
The death or
disability of the shareholder
◾
Shares sold as part
of a systematic withdrawal plan as described in this Prospectus
◾
Return of excess
contributions from an Individual Retirement Account (“IRA”)
◾
Shares sold as part
of a required minimum distribution for IRA and retirement accounts due to the
shareholder reaching the qualified age based on applicable IRS
regulations
◾
Shares sold to pay
OPCO fees but only if the transaction is initiated by OPCO
◾
Shares acquired
through a Right of Reinstatement
Front-end
load discounts available at OPCO: breakpoints and/or rights of
accumulation
◾
Breakpoints as
described in this Prospectus
◾
Rights of
accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will
be automatically calculated based on the aggregated holding of Fund family
assets held by accounts within the purchaser’s household at OPCO. Eligible Fund
family assets not held at OPCO may be included in the ROA calculation only if
the shareholder notifies his or her financial advisor about such
assets.
RW
Baird (“Baird”)
Shareholders
purchasing Fund shares through a Baird platform or account will only be eligible
for the following sales charge waivers (front-end sales charge waivers and CDSC
waivers) and discounts, which may differ from those disclosed elsewhere in this
Prospectus or the SAI.
Front-end
sales charge waivers on Class A shares available at Baird
◾
Shares purchased
through reinvestment of capital gains distributions and dividend reinvestment
when purchasing shares of the same fund
◾
Shares purchased by
employees and registered representatives of Baird or its affiliates and their
family members as designated by Baird
◾
Shares purchased
from the proceeds of redemptions from another PGIM Fund, provided (1) the
repurchase occurs within ninety (90) days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales charge (known as Rights of
Reinstatement)
◾
A shareholder in
the Fund's Class C Shares will have their shares converted at net asset value to
Class A shares of the Fund if the shares are no longer subject to CDSC and the
conversion is in line with the policies and procedures of Baird
◾
Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs
Contingent
Deferred Sales Charge (“CDSC”) waivers on Class A and C shares available at
Baird
◾
Shares sold upon
the death or disability of the shareholder
◾
Shares sold as part
of a systematic withdrawal plan as described in this Prospectus
◾
Shares purchased in
connection with a return of excess contributions from an IRA account
◾
Shares sold as part
of a required minimum distribution for IRA and other retirement accounts due to
the shareholder reaching the qualified age based on applicable IRS
regulations
◾
Shares sold to pay
Baird fees but only if the transaction is initiated by Baird
◾
Shares acquired
through a Right of Reinstatement
Front-end
Sales Charge Discounts available at Baird: Breakpoints and/or Rights of
Accumulation
◾
Breakpoints as
described in this Prospectus
61
◾
Rights of
accumulation (“ROA”), which entitle shareholders to breakpoint discounts, will
be automatically calculated based on the aggregated holding of PGIM Fund assets
held by accounts within the purchaser’s household at Baird. Eligible PGIM Fund
assets not held at Baird may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such assets
◾
Letters of Intent
(“LOI”) which allow for breakpoint discounts based on anticipated purchases of
PGIM Funds through Baird, over a 13-month period of time
STIFEL,
NICOLAUS & COMPANY, INCORPORATED (“STIFEL”)
Shareholders
purchasing Fund shares through a Stifel platform or account, or who own shares
for which Stifel or an affiliate is the broker-dealer of record, are eligible
for the following front-end sales charge waivers with respect to Class A shares,
which may differ from and be more limited than those disclosed elsewhere in this
Fund's Prospectus or SAI. All other waivers in the Fund’s Prospectus or SAI
apply as described.
Front-End
Sales Charge Waivers on Class A Shares
◾
Class C (i.e.,
level-load) shares that are no longer subject to a contingent deferred sales
charge and are converted to Class A shares of the same Fund (at net asset value
per share) pursuant to policies and procedures of Stifel.
J.P. MORGAN
SECURITIES LLC
Effective September 29, 2023, if
you purchase or hold fund shares through an applicable J.P. Morgan Securities
LLC brokerage account, you will be eligible for the following sales charge
waivers (front-end sales charge waivers and contingent deferred sales charge
(“CDSC”), or back-end sales charge, waivers), share class conversion policy and
discounts, which may differ from those disclosed elsewhere in this fund’s
prospectus or Statement of Additional Information.
Front-end sales
charge waivers on Class A shares available at J.P. Morgan Securities
LLC
◾
Shares exchanged from Class C (i.e.
level-load) shares that are no longer subject to a CDSC and are exchanged into
Class A shares of the same fund pursuant to J.P. Morgan Securities LLC’s share
class exchange policy.
◾
Qualified employer-sponsored
defined contribution and defined benefit retirement plans, nonqualified deferred
compensation plans, other employee benefit plans and trusts used to fund those
plans. For purposes of this provision, such plans do not include SEP IRAs,
SIMPLE IRAs, SAR-SEPs or 501(c)(3) accounts.
◾
Shares of funds purchased through
J.P. Morgan Securities LLC Self-Directed Investing accounts.
◾
Shares purchased through rights of
reinstatement.
◾
Shares purchased through
reinvestment of capital gains distributions and dividend reinvestment when
purchasing shares of the same fund (but not any other fund within the fund
family).
◾
Shares purchased by employees and
registered representatives of J.P. Morgan Securities LLC or its affiliates and
their spouse or financial dependent as defined by J.P. Morgan Securities
LLC.
Class C to Class
A share conversion
◾
A shareholder in the fund’s Class C
shares will have their shares converted to Class A shares (or the appropriate
share class) of the same fund if the shares are no longer subject to a CDSC and
the conversion is consistent with J.P. Morgan Securities LLC’s policies and
procedures.
CDSC waivers on
Class A and C shares available at J.P. Morgan Securities LLC
◾
Shares sold upon the death or
disability of the shareholder.
◾
Shares sold as part of a systematic
withdrawal plan as described in the fund’s prospectus.
◾
Shares purchased in connection with
a return of excess contributions from an IRA account.
◾
Shares sold as part of a required
minimum distribution for IRA and retirement accounts pursuant to the Internal
Revenue Code.
◾
Shares acquired through a right of
reinstatement.
Front-end load
discounts available at J.P. Morgan Securities LLC: breakpoints, rights of
accumulation & letters of intent
◾
Breakpoints as described in the
prospectus.
62
◾
Rights of Accumulation (“ROA”)
which entitle shareholders to breakpoint discounts as described in the fund’s
prospectus will be automatically calculated based on the aggregated holding of
fund family assets held by accounts within the purchaser’s household at J.P.
Morgan Securities LLC. Eligible fund family assets not held at J.P. Morgan
Securities LLC (including 529 program holdings, where applicable) may be
included in the ROA calculation only if the shareholder notifies their financial
advisor about such assets.
◾
Letters of Intent (“LOI”) which
allow for breakpoint discounts based on anticipated purchases within a fund
family, through J.P. Morgan Securities LLC, over a 13-month period of time (if
applicable).
63
|
FOR
MORE INFORMATION
Please read
this Prospectus before you invest in the Fund and keep it for future
reference.
For
information or shareholder questions contact: | |
|
◾MAIL
Prudential
Mutual Fund Services LLC
P.O. Box
534432
Pittsburgh,
PA 15253-4432 ◾WEBSITE
www.pgim.com/investments |
◾TELEPHONE
(800)
225-1852
(973)
367-3529
(from
outside the U.S.) |
|
◾E-DELIVERY
To
receive your mutual fund documents on-line, go to
pgim.com/investments/resource/edelivery and enroll.
Instead
of receiving printed documents by mail, you will receive notification via
email when new materials are
available.
You can cancel your enrollment or change your email address at any time by
visiting the website address
above. |
|
The Annual
and Semi-Annual Reports and the SAI contain additional information about
the Fund. Shareholders may
obtain free
copies of the SAI, Annual Report and Semi-Annual Report as well as other
information about the Fund
and may make
other shareholder inquiries through the telephone number, address and
website listed above. | |
|
◾STATEMENT
OF ADDITIONAL INFORMATION
(incorporated
by reference into this Prospectus) ◾SEMI-ANNUAL
REPORT |
◾ANNUAL
REPORT
(contains a
discussion of the market conditions and
investment
strategies that significantly affected the
Fund's
performance during the last fiscal
year) |
|
You
can also obtain copies of Fund documents, including the SAI, from the SEC
as follows (the SEC charges a fee to
copy
documents): | |
|
◾ELECTRONIC
REQUEST
|
◾VIA
THE INTERNET
on
the EDGAR Database at
www.sec.gov |
|
PGIM
Jennison MLP Fund | ||||
|
Share
Class |
A |
C |
Z |
R6 |
|
NASDAQ |
PRPAX |
PRPCX |
PRPZX |
PRPQX |
|
CUSIP |
74440G701 |
74440G800 |
74440G883 |
74440G859 |
MF218STAT
The
Fund's Investment Company Act File No. 811-08587