FORM 5500 (SCHEDULE C) INFORMATION

Transcription

1 PGIM INVESTMENTS, A PGIM BUSINESS MUTUAL FUNDS EIN: FORM 5500 (SCHEDULE C) INFORMATION ELIGIBLE INDIRECT COMPENSATION DISCLOSURE Prudential Investments Mutual Funds TARGET Mutual Funds Identifying Information * Fund Name: Share Class: Ticker Symbol: CUSIP: Fiscal Year End: Total Fund Assets as of Fiscal Year End: Expense Ratio (exclusive of fee waivers): Located on the front cover page of Annual Report Located on the front cover page of Annual Report Located in the Statement of Assets & Liabilities and Financial Highlights sections of Annual Report Located in the Financial Highlights section of Annual Report * Applicable for funds with a fiscal year end in Management Fees Paid by the Funds Information regarding management fees paid by each Fund for its most recent fiscal year ended in 2016 is set forth in each Fund s annual report under the caption Statement of Operations Expenses - Management Fee. Information regarding any contractual or voluntary fee waiver(s) in effect during each Fund s most recent fiscal year ended in 2016 is set forth in each Fund s Annual Report in the Statement of Operations Expenses section as well as in the Notes to the Financial Statements Agreements section. Shareholder Fees (fees paid directly from your investment) Information regarding fees paid by shareholders on purchase and sales of Fund shares, including a sales load (if applicable), is set forth in each Fund s Prospectus in the table under the caption, Fund Fees and Expenses Shareholder Fees (fees paid directly from your investment).

2 Annual Fund Operating Expenses (expenses that you pay each year as a percentage of the value of your investment) Information regarding each Fund s Annual Fund Operating Expenses, including distribution and service (12b-1) fees if applicable, for each Fund s most recent fiscal year ended in 2016 is set forth in each Fund s Annual Report in the Statement of Operations Expenses section. Transfer Agent s Fees and Expenses Information regarding transfer agent s fees and expenses paid by each Fund for its most recent fiscal year ended in 2016 is set forth in each Fund s Annual Report under the caption Statement of Operations Expenses Transfer agent s fees and expenses. Soft Dollars Research Received by Investment Subadvisers An investment subadviser becomes eligible for soft dollar credits by sending trades and paying trade commissions to broker-dealers who both execute the trades and provide the investment subadviser with research services in the following forms: (1) research reports generated by the broker-dealer, (2) conferences with representatives of issuers, and/or (3) soft dollar credits that can be used to obtain research reports or services from others. The portion of any trade commission attributable to the soft dollar research services cannot be identified. For the Funds, a list of the soft dollar broker relationships is provided for the 12 months ended September 30, 2016 in Appendix A. Notes PGIM Investments LLC (formerly known as Prudential Investments LLC) is the investment manager of each Fund, responsible for managing each Fund s investment operations and administering its business affairs. PGIM Investments is also responsible for supervising each Fund's sub-adviser(s), who are responsible for determining the securities and investments to be purchased, sold or held by each Fund. Prudential Investment Management Services LLC (PIMS) distributes each Fund's shares under a Distribution Agreement with each Fund. Each Fund also has a Distribution and Service Plan (the Distribution Plan ) under Rule 12b-1 of the Investment Company Act of 1940 with respect to each of Class A, Class B, Class C, and Class R shares, as applicable. Under the Distribution Agreement and the Distribution Plans, PIMS pays the expenses of distributing each Fund's shares and provides certain shareholder support services. Under the Distribution Agreement, PIMS receives the initial sales charge on Class A shares paid by shareholders and the proceeds of contingent deferred sales charges paid by shareholders upon certain redemptions of Class A, Class B, and Class C shares. See Shareholder Fees in the table, above. Under the Distribution Plans, each Fund pays distribution and services fees to PIMS as compensation for its services for each such class of shares. These fees known as 12b-1 fees are shown in the "Annual Fund Operating Expenses" table, above. Except as otherwise noted herein, with respect to Class A, Class B, Class C, and Class R shares, the service fee is up to.25 of 1% of each Fund's respective share class. The distribution fee for Class A shares is up to.30 of 1% (including the.25 of 1% service fee), for Class R shares (including the.25 of 1% service fee) is up to.75 of 1%, and for Class B and Class C shares, is up to 1% (including the.25 of 1% service fee). 2

3 The distribution fee for Class A shares of Prudential Government Money Market Fund, Inc. is up to.125 of 1% (including the service fee of up to.125 of 1%). The distribution fee for Class A shares of Prudential Absolute Return Bond Fund, Prudential California Muni Income Fund, Prudential Core Bond Fund, Prudential Corporate Bond, Prudential Emerging Markets Debt Local Currency Fund, Prudential Floating Rate Income Fund, Prudential Global Absolute Return Bond Fund, Prudential Global Total Return Fund, Inc., Prudential Government Income Fund, Inc., Prudential High Yield Fund, Prudential International Bond Fund, Prudential Muni High Income Fund, Prudential National Muni Fund, Inc., Prudential Short Duration High Yield Income Fund, Prudential Short Duration Multi-Sector Bond Fund, Prudential Short Duration Muni High Income Fund, Prudential Short-Term Corporate Bond Fund, Inc., Prudential Total Return Bond Fund and Prudential Unconstrained Bond Fund is up to.25 of 1% (including the service fee of up to.25 of 1%). Class D, Class I, Class Q, Class T, and Class Z shares do not pay distribution or service (12b-1) fees, nor do they require an investor to pay an initial sales charge or contingent deferred sales charge. Class A shares of Prudential Government Money Market Fund, Inc. do not require an investor to pay an initial sales charge or contingent deferred sales charge. Prudential Mutual Fund Services LLC (PMFS) is each Fund s transfer agent, dividend disbursing agent and shareholder servicing agent. PGIM Investments, PIMS and PMFS are located at 655 Broad Street, Newark, NJ * * * * This document is not a substitute for legal advice to plans regarding compliance with ERISA reporting requirements. This document is being made available solely to assist information gathering for plans based on the information in the possession of the Funds. Mutual funds and other investment companies, and the entities that provide services to those funds, are not service providers to plans. However, this document may include information on payments that the funds or their advisors make to others for services to the plan, which would make the payments reportable on Schedule C. It is the responsibility of the recipient to report those payments to the plan. Any such information included in this document is being provided to inform the plan that it is necessary to seek information from brokers, record keepers, and others. This information is of a general nature and may not cover all of the compensation received by your service providers. 3

4 PGIM INVESTMENTS, A PGIM BUSINESS MUTUAL FUNDS EIN: FORM 5500 (SCHEDULE C) INFORMATION ELIGIBLE INDIRECT COMPENSATION DISCLOSURE APPENDIX A Allen & Company LLC Brokers with Soft Dollar Relationships for the 12 Months Ended September 30, 2016 Keefe, Bruyette & Woods, Inc. Avondale Partners, LLC Bank Of America Merrill Lynch Barclays Capital Inc. BB&T Securities, LLC BMO Capital Markets Corp. Bradesco Securities, Inc. Brean Capital, LLC BTG Pactual US Capital, LLC BTIG, LLC Canaccord Genuity Inc. Cantor Fitzgerald & Co. CIBC World Markets Corp. Citigroup Capital Markets Inc Citigroup Global Markets Inc. CLSA Americas, LLC Cowen And Company, LLC Credit Suisse Securities (USA) LLC CRT Capital Group LLC Keybanc Capital Markets Inc. Ladenburg Thalmann & Co. Inc. Leerink Partners LLC Liquidnet Inc Macquarie Capital (USA) Inc. Merrill Lynch, Pierce, Fenner & Smith Inc Mizuho Securities Usa Inc. MKM Partners LLC Monness Crespi Hardt & Co., Inc. Morgan Stanley & Co. LLC Needham & Company, LLC Oppenheimer & Co. Inc. OTR Global Trading LLC Piper Jaffray & Co. Raymond James & Associates, Inc. RBC Capital Markets, LLC Robert W. Baird & Co. Inc Sanford C. Bernstein & Co., LLC 4

5 DAIWA Capital Markets America Inc. Brokers with Soft Dollar Relationships for the 12 Months Ended September 30, 2016 Santander Investment Sec Inc. Deutsche Bank Securities Inc. Dowling & Partners Securities LLC Empirical Research Partners LLC Evercore Group L.L.C. FBR Capital Markets & Co. Goldman, Sachs & Co. Guggenheim Securities, LLC HSBC Securities (Usa) Inc. ITAU BBA USA Securities, Inc. J.P. Morgan Securities LLC Janney Montgomery Scott LLC Jefferies LLC JMP Securities LLC Scotia Capital (USA) Inc. Sidoti & Company, LLC Societe Generale Securities Corp. Stifel, Nicolaus & Company Inc. Suntrust Robinson Humphrey, Inc. Susquehanna Financial Group, LLP TD Securities (USA) LLC Telsey Advisory Group LLC Tudor, Pickering, Holt & Co. Inc UBS Securities LLC Wedbush Securities Inc. Wells Fargo Securities, LLC William Blair & Company LLC. KCG Americas LLC 5