	Class Z Shares	Class A Shares	Class C Shares
Shareholder Transaction Expenses
Maximum Initial Sales Load (as a percentage of the offering price) (1)	None	2.50%	None
Maximum Contingent Deferred Sales Charge (as a percentage of the offering price or repurchase proceeds, whichever is lower) (2)	None	1.50%	1.00%
Redemption Fee (on shares purchased and held for less than twelve months) (as a percentage of amount redeemed, if applicable)	None	None	None

(1)

The Distributor is the principal underwriter and distributor of the Common Shares and serves in that capacity on a

“

best efforts

”

basis, subject to various conditions. Shares may

be offered through Selling Agents that have entered into selling agreements with the Distributor. Selling Agents typically receive the sales load with respect to Class A Shares

purchased by their clients. The Distributor does not retain any portion of the sales load. Class A Shares are subject to an initial sales load of up to 2.50% of the total offering

price (including sales load). Class Z Shares and Class C Shares are each not subject to an initial sales load; however, investors could be required to pay brokerage commissions

on purchases and sales of such shares to their Selling Agents. Investors should consult with their Selling Agents about the sales load and any additional fees or charges their

Selling Agents might impose on each class of Common Shares. See

“

Prospectus Summary—Sales Loads.

”

(2)

A contingent deferred sales charge (

“

CDSC

”

) of 1.50% will be assessed on Class A Shares purchased without a sales charge if the shares are repurchased during the first 12

months after their purchase. In addition, a CDSC of 1.00% will be assessed on Class C Shares if the shares are repurchased during the first 12 months after their purchase.

Other Transaction Expenses [Abstract]

Annual Expenses [Table Text Block]

Annual Expenses (Perc en tage of Net Assets Attributable to Common Shares)
Management Fee (3)	1.37%	1.37%	1.37%
Distribution and Servicing Fee (4)	None	0.75%	1.00%
Interest Payments on Borrowed Funds (5)	1.17%	1.17%	1.17%
Other Expenses (6)	0.51%	581.14%	527.33%
Total Annual Fund Operating Expenses	3.05%	584.43%	530.87%
Fees Waived and/or Expenses Reimbursed (7)	(0.01)%	(580.64)%	(526.83)%
Total Annual Fund Operating Expenses After Fee Waiver and/or Expense Reimbursement	3.04%	3.79%	4.04%

(3)

Pursuant to an investment management agreement, the Manager receives a Management Fee, payable monthly in arrears by the Fund, at an annual rate equal to 1.10% of the

average daily value of the Fund’s total managed assets. The table reflects the estimated Management Fee based on average daily value of Fund's total managed assets of

approximately $137.7 million.

(4)

The Fund pays the Distributor a Distribution and Servicing Fee pursuant to its Distribution and Servicing Plan that is payable monthly and accrued daily at an annualized rate of

0.75% of the net assets of the Fund attributable to Class A Shares and an annualized rate of 1.00% of the net assets of the Fund attributable to Class C Shares. The Distribution

and Servicing Fee is for personal services provided to shareholders and/or the maintenance of shareholder accounts, as well as for the sale and marketing of the Class A Shares

and Class C Shares, and to reimburse the Distributor for related expenses incurred. The Distribution and Servicing Fee may also be used to pay for sub-transfer agency,

sub-accounting and certain other administrative services that are not required to be paid pursuant to a service fee under Financial Industry Regulatory Authority (

“

FINRA

”

) rules.

The Distributor generally will pay (or

“

reallow

”

) all or a portion of the Distribution and Servicing Fee to the Selling Agents that sell Class A Shares and Class C Shares. The

Distribution and Servicing Fee is governed by the Fund’s Distribution and Servicing Plan.

(5)

Reflects the Fund’s use of leverage in the form of reverse repurchase agreements at December 31, 2024 which represented 19.68% of the Fund’s total managed assets (including

assets attributable to such leverage), at an annual interest rate cost to the Fund of 4.75% which is the average interest rate cost at the fiscal year ended December 31, 2024. See

“

Use of Leverage—Effects of Leverage.

”

The actual amount of interest expense borne by the Fund will vary over time in accordance with the level of the Fund’s use of leverage

and variations in market interest rates. Borrowing expense is required to be treated as an expense of the Fund for accounting purposes. Any associated income or gains (or losses)

realized from leverage obtained through such instruments is not reflected in the Annual Expenses table above, but would be reflected in the Fund’s performance results.

(6)

“

Other Expenses

”

are estimated based on average Fund net assets of approximately $110.6 million and anticipated expenses for the current fiscal year.

“

Other Expenses

”

include

professional fees and other expenses, including, without limitation, filing fees, printing fees, administration fees, custody fees, trustee fees, insurance costs, and class-specific

transfer agency fees.

(7)

Pursuant to an Expense Limitation and Reimbursement Agreement, through December 6, 2026 (the

“

ELRA Period

”

), the Manager has contractually agreed to waive its fees and/or

reimburse expenses of the Fund so that the Fund’s Specified Expenses will not exceed 0.50% of net assets (annualized). The Fund has agreed to repay these amounts, when and if

requested by the Manager, but only if and to the extent that Specified Expenses are less than 0.50% of net assets (annualized) (or, if a lower expense limit is then in effect, such

lower limit) within three years after the date the Manager waived or reimbursed such fees or expenses. In no event will the Fund’s Specified Expenses exceed 0.50% of net assets

(annualized) during the ELRA Period notwithstanding any repayment made by the Fund pursuant to the ELRA. This arrangement cannot be terminated without the consent of the

Fund’s Board prior to the end of the ELRA Period.

“

Specified Expenses

”

is defined to include all expenses incurred in the business of the Fund, including organizational and

offering costs, with the exception of (i) the Management Fee, (ii) the Distribution and Servicing Fee, (iii) brokerage costs or other investment-related out-of-pocket expenses,

including with respect to unconsummated investments, (iv) dividend/interest payments (including any dividend payments, interest expenses, commitment fees, or other expenses

related to any leverage incurred by the Fund), (v) taxes, and (vi) extraordinary expenses (as determined in the sole discretion of the Manager).

Other Annual Expenses [Abstract]

Expense Example [Table Text Block]

Class Z Example

The following example illustrates the expenses that you would pay on a $1,000 investment in Class Z Shares and assuming (i) total

annual expenses of net assets attributable to the Class Z Shares remains the same, (ii) a 5% annual return, (iii) reinvestment of all

dividends and distributions at net asset value and (iv) application of the Expense Limitation and Reimbursement Agreement through the

ELRA Period:

	1 Year	3 Years	5 Years	10 Years
Total Expenses Incurred	$31	$94	$160	$336

The example should not be considered a representation of future expenses. Actual expenses may be greater or less than those shown.

Class A Example

The following example illustrates the expenses that you would pay on a $1,000 investment in Class A Shares and assuming (i) total

annual expenses of net assets attributable to the Class A Shares remains the same, (ii) a 5% annual return, (iii) reinvestment of all

dividends and distributions at net asset value and (iv) application of the Expense Limitation and Reimbursement Agreement through the

ELRA Period:

	1 Year	3 Years	5 Years	10 Years
Total Expenses Incurred	$62	$2,946	$2,946	$2,946

The example should not be considered a representation of future expenses. Actual expenses may be greater or less than those shown.

Class C Example

The following example illustrates the expenses that you would pay on a $1,000 investment in Class C Shares and assuming (i) total

annual expenses of net assets attributable to the Class C Shares remains the same, (ii) a 5% annual return, (iii) reinvestment of all

dividends and distributions at net asset value and (iv) application of the Expense Limitation and Reimbursement Agreement through the

ELRA Period:

	1 Year	3 Years	5 Years	10 Years
Total Expenses Incurred	$41	$2,720	$2,720	$2,720

The example should not be considered a representation of future expenses. Actual expenses may be greater or less than those shown.

Purpose of Fee Table , Note [Text Block]

The purpose of the following table is to help you understand all fees and expenses common shareholders would bear directly

or indirectly.

Basis of Transaction Fees, Note [Text Block]

as a percentage of the offering price

Other Expenses, Note [Text Block]

“

Other Expenses

”

are estimated based on average Fund net assets of approximately $110.6 million and anticipated expenses for the current fiscal year.

“

Other Expenses

”

include

professional fees and other expenses, including, without limitation, filing fees, printing fees, administration fees, custody fees, trustee fees, insurance costs, and class-specific

transfer agency fees.

Management Fee not based on Net Assets, Note [Text Block]

Pursuant to an investment management agreement, the Manager receives a Management Fee, payable monthly in arrears by the Fund, at an annual rate equal to 1.10% of the

average daily value of the Fund’s total managed assets. The table reflects the estimated Management Fee based on average daily value of Fund's total managed assets of

approximately $137.7 million.

General Description of Registrant [Abstract]

Investment Objectives and Practices [Text Block]

INVESTMENT OBJECTIVE AND STRATEGIES

Investment Objective

The Fund’s investment objective is to seek total return, through a combination of current income and capital appreciation.

Investment Strategies

The Fund seeks to achieve its investment objective by investing, under normal circumstances, across a wide array of credit markets,

including corporate, mortgage, consumer and municipal credit markets, and employing a flexible asset allocation strategy among

multiple public and private credit sectors in the global credit markets, including but not limited to corporate debt (including, among

other things, fixed-, variable- and floating-rate bonds and loans issued by U.S. or foreign (non-U.S.) corporations or other business

entities); mortgage-related and other consumer-related instruments; collateralized debt obligations, including, but not limited to,

collateralized loan obligations; municipal bonds; and other fixed-, variable- and floating-rate income-producing securities of U.S. and

foreign issuers (including developed and emerging market issuers). The Fund may invest in any sector, market or region without limit,

subject to compliance with applicable law. The Fund has flexibility to actively adjust allocations over time while adapting to the market

and economic environment without any explicit duration target or liquidity limitations. The Fund invests without limit in both investment

grade debt securities and in below investment grade debt securities (which are commonly referred to as

“

high yield

”

securities or

“

junk

bonds

”

), including securities of stressed, distressed and defaulted issuers.

80% Investment Policy

The Fund invests, under normal circumstances, at least 80% of its net assets (plus any borrowings for investment purposes) in a

portfolio of debt instruments of varying maturities (the

“

80% policy

”

For purposes of the 80% policy, debt instruments may include, without limitation, bonds, debt securities and other similar instruments of

varying maturities, issued by various U.S. and foreign (non-U.S.) public or private-sector entities; asset-backed securities issued on a

public or private basis (including, but not limited to, agency and non-agency residential mortgage-backed securities and commercial

mortgage-backed securities, adjustable rate mortgage-backed securities, mortgage-pass through securities, privately issued

mortgage-related securities, stripped mortgage securities, CBOs, CLO, CDOs, CMOs, CMO residuals, multi-class pass-through securities

and other similarly structured securities); corporate debt securities (including, among other things, fixed-, variable- and floating-rate

bonds and loans issued by U.S. or foreign (non-U.S.) corporations or other business entities, including emerging market issuers);

securities issued or guaranteed by the U.S. Government, its agencies or government-sponsored enterprises (

“

U.S. Government

Securities

”

); bank loans (including, among others, senior and second lien loans, mezzanine loans, bridge loans, delayed funding loans,

revolving credit facilities, covenant-lite obligations and loan participations and assignments); inverse floaters; and loans held and/or

originated by private financial institutions or PGIM, including commercial and residential mortgage loans, corporate loans and consumer

loans (such as credit card receivables, automobile loans and student loans) (

“

private credit assets

”

The Fund will not change its 80% policy without providing sixty (60) days’ notice to shareholders, as required by Rule 35d-1 under the

Investment Company Act of 1940.

Investment Philosophy and Portfolio Construction

In managing the Fund’s assets, the Subadvisers use a combination of top-down economic analysis and bottom-up research in

conjunction with proprietary quantitative models and risk management systems. In the top-down economic analysis, the Subadvisers

develop views on economic, policy and market trends while considering, among other things, market conditions, valuation assessments

and economic outlook.

With PGIM’s macroeconomic analysis as the basis for top-down investment decisions, the Fund expects to focus on seeking attractive

risk-adjusted returns across multiple credit sectors. The Fund has broad latitude to invest across sectors and will not focus on a specific

sector at the time of its launch. The Fund may choose to focus on particular sectors across countries or regions, asset classes, industries

and to the exclusion of others at any time and from time to time based on market conditions and other factors. Once the Fund’s

top-down, portfolio positioning decisions have been made as described above, PGIM generally selects particular investments for the

Fund by employing a bottom-up, disciplined credit approach which is driven by fundamental, independent research within each sector

represented in the Fund, with a focus on identifying securities and other instruments with solid and/or improving fundamentals. The

fundamental and relative value assessment within credit sectors draws on PGIM’s sector Portfolio Manager and analyst insights. PGIM

attempts to identify, through fundamental research driven by independent credit analysis and proprietary analytical tools, debt

obligations and other income-producing securities that provide positive risk-adjusted returns based on its analysis of the issuer’s credit

characteristics and the position of the security in the issuer’s capital structure. PGIM also attempts to identify investments that may

appreciate in value based on PGIM’s assessment of the issuer’s credit characteristics, forecast for interest rates and outlook for

particular countries/regions, currencies, industries, sectors and the global economy and bond markets generally. PGIM utilizes strategies

that focus on credit quality analysis, duration management and other risk management techniques.

Portfolio construction focuses on capturing the best firm-wide total return investment ideas achieved from capital appreciation or current

income. Additionally, PGIM incorporates proprietary risk framework designed to focus risk in areas of potential reward and to manage

downside risks.

PGIM relies primarily on its own analysis of the credit quality and risks associated with individual debt instruments considered for the

Fund, rather than relying exclusively on rating agencies or third-party research. The Fund’s sector portfolio managers utilize this

information in an attempt to minimize credit risk and/or to identify issuers, industries or sectors that they believe are undervalued and/or

that offer potentially attractive yields relative to PGIM’s assessment of their credit characteristics. In its bottom-up credit research, the

Subadvisers assess potential investments based on deep level fundamental research, relative value, technical and legal analysis. The

credit research process is supported by the firm’s extensive credit and industry knowledge and market presence with companies and

financial sponsors.

While duration is not explicitly targeted, it is expected that the Fund normally will have a short to intermediate average portfolio duration

(i.e., within a zero to five year range), as calculated by the Manager, although it may be shorter or longer at any time or from time to time

depending on market conditions and other factors. While the Fund seeks to maintain a short to intermediate average portfolio duration,

there is no limit on the maturity or duration of any individual security in which the Fund may invest. Duration is a measure used to

determine the sensitivity of a security’s price to changes in interest rates. The Fund’s duration strategy may entail maintaining a negative

average portfolio duration from time to time, which would potentially benefit the portfolio in an environment of rising market interest rates

but would generally adversely impact the portfolio in an environment of falling or neutral market interest rates. PGIM may also utilize

certain strategies including, without limitation, investments in interest rate futures contracts or swap, cap, floor or collar transactions, for

the purpose of reducing the interest rate sensitivity of the Fund’s portfolio, although there is no assurance that it will do so or that such

strategies will be successful.

Implementation of Investment Strategies

The Fund invests in securities of U.S. issuers and foreign (non-U.S.) issuers, securities traded principally outside of the United States,

and securities denominated in currencies other than the U.S. dollar. The Fund invests without limit in instruments of corporate and other

foreign (non-U.S.), including emerging market issuers and in instruments traded principally outside of the U.S. The Fund may also

invest directly in foreign currencies, including currencies of emerging market countries.

The Fund invests without limitation in debt instruments that are, at the time of purchase, rated below

“

investment grade

”

by at least one

of Moody’s Investors Service, Inc. (

“

Moody’s

”

), S&P Global Ratings (

“

S&P

”

) or Fitch, Inc. (

“

Fitch

”

), or unrated but determined by PGIM

to be of comparable quality.

“

Investment grade

”

means a rating, in the case of Moody’s, of Baa3 or higher, or in the case of S&P and

Fitch, of BBB- or higher. Debt instruments of below investment grade quality are regarded as having predominantly speculative

characteristics with respect to capacity to pay interest and to repay principal, and are commonly referred to as

“

high yield

”

securities or

“

junk bonds.

”

The Fund invests in securities of stressed or distressed issuers, which include securities at risk of being in default as to the repayment of

principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or more nationally

recognized statistical rating organizations or, if unrated, are determined by PGIM to be of comparable quality. The Fund may also invest

in defaulted securities and debtor-in-possession (

“

DIP

”

) financings.

The Fund invests in any level of the capital structure of an issuer of mortgage-backed or asset-backed instruments, including the equity

“

first loss

”

tranche.

The Fund invests in securities that have not been registered for public sale in the U.S. or relevant non-U.S. jurisdiction, including without

limitation securities eligible for purchase and sale pursuant to Rule 144A under the Securities Act of 1933, as amended (the

“

Securities

Act

”

) or relevant provisions of applicable non-U.S. law, and other securities issued in private placements.

The Fund originates loans and invests in loans held and/or originated by private financial institutions or PGIM, specifically through direct

lending to companies or corporations, including foreign (non-U.S.) entities, which may be in the form of unsecured notes, senior and

second lien loans, mezzanine loans, bridge loans or similar investments. Such borrowers may have credit ratings that are determined by

one or more nationally recognized statistical rating organizations (

“

NRSROs

”

) or PGIM to be below investment grade. The originated

loans in which the Fund invests may vary in maturity and/or duration. The Fund is not limited in the amount, size or type of originated

loans it may invest in, including with respect to a single borrower or with respect to borrowers that are determined to be below

investment grade, other than pursuant to any applicable law or the Fund’s fundamental investment restrictions and related

interpretations. The Fund’s investments in originated loans may also be limited by the Fund’s intention to qualify as a regulated

investment company (

“

RIC

”

The Fund may use derivatives to manage its duration, as well as to manage its foreign currency exposure, to hedge against losses and to

try to improve returns. The Fund may be either the buyer or seller in credit default swap transactions.

Leverage

The Fund currently expects to utilize leverage through reverse repurchase agreements and may also obtain leverage through credit

default swaps, dollar rolls and borrowings, such as through bank loans or commercial paper and/or other credit facilities. The Fund may

also enter into transactions other than those noted above that may give rise to a form of leverage including, among others, futures and

forward contracts (including foreign currency exchange contracts), credit default swaps, total return swaps and other derivative

transactions. The Fund’s Board of Trustees may authorize the issuance of preferred shares without the approval of Common

Shareholders. If the Fund issues preferred shares in the future, all costs and expenses relating to the issuance and ongoing

maintenance of the preferred shares will be borne by the Common Shareholders, and these costs and expenses may be significant. The

Fund utilizes reverse repurchase agreements, dollar rolls, borrowings and other forms of leverage opportunistically and may choose to

increase or decrease, or eliminate entirely, its use of leverage over time and from time to time based on PGIM’s assessment of the yield

curve environment, interest rate trends, market conditions and other factors.

The net proceeds the Fund obtains from reverse repurchase agreements, credit default swaps, dollar rolls or other forms of leverage

utilized will be invested in accordance with the Fund’s investment objective and policies as described in this prospectus. So long as the

rate of return, net of applicable Fund expenses, on the debt obligations and other investments purchased by the Fund exceeds the costs

to the Fund of the leverage it utilizes, the investment of the Fund’s assets attributable to leverage will generate more income than will be

needed to pay the costs of the leverage. If so, and all other things being equal, the excess may be used to pay higher dividends to

Common Shareholders than if the Fund were not so leveraged.

Derivatives

Derivatives are financial instruments whose value depends upon, or is derived from, the value of something else, such as one or more

underlying investments, indices or currencies. The Fund and Subadvisers may use various derivative strategies to try to improve the

Fund’s returns by managing risks, such as by using hedging techniques to try to protect the Fund’s assets. A derivative contract will

obligate or entitle the Fund to deliver or receive an asset or cash payment based on the change in value of one or more investments,

indices or currencies. Derivatives may be traded on organized exchanges, or in individually negotiated transactions with other parties

(these are known as

“

over-the-counter

”

derivatives). The Fund may be limited in its use of derivatives by rules adopted by the SEC

governing derivatives transactions, such as Rule 18f-4 under the Investment Company Act, described below. Although the Fund has the

flexibility to make use of derivatives, it may choose not to for a variety of reasons, even under very volatile market conditions.

The Fund relies on certain exemptions in Rule 18f-4 to enter into derivatives transactions and certain other transactions notwithstanding

the restrictions on the issuance of

“

senior securities

”

under Section 18 of the Investment Company Act. Under Rule 18f-4,

“

derivatives

transactions

”

include the following: (1) any swap, security-based swap, futures contract, forward contract, option, any combination of

the foregoing, or any similar instrument, under which the Fund is or may be required to make any payment or delivery of cash or other

assets during the life of the instrument or at maturity or early termination, whether as margin or settlement payment or otherwise; and

(2) any short sale borrowing. Rule 18f-4, among other things, requires the Fund to adopt and implement a comprehensive written

derivatives risk management program (

“

DRMP

”

) and comply with a relative or absolute limit on Fund leverage risk calculated based on

value-at-risk (

“

VaR

”

). The DRMP is administered by a

“

derivatives risk manager,

”

who is appointed by the Fund’s Board and periodically

reviews the DRMP and reports to the Fund’s Board. The Fund will rely on a separate exemption in Rule 18f- 4(e) when entering into

unfunded commitment agreements, which includes any commitment to make a loan to a company, including term loans, delayed draw

term loans, and revolvers, or to invest equity in a company. To rely on the unfunded commitment agreements exemption, the Fund must

reasonably believe, at the time it enters into such agreement, that it will have sufficient cash and cash the equivalents to meet its

obligations with respect to all of its unfunded commitment agreements, in each case as they come due. The Fund will rely on the

exemption in Rule 18f-4(f) when purchasing when-issued or forward-settling securities (e.g., firm and standby commitments, including

TBA commitments, and dollar rolls) and non-standard settlement cycle securities, if certain conditions are met.

Futures Contracts and Related Options.

The Fund may purchase and sell financial futures contracts and related options on financial

futures. A futures contract is an agreement to buy or sell a set quantity of an underlying asset at a future date, or to make or receive a

cash payment based on the value of a securities index, or some other asset, at a stipulated future date. The terms of futures contracts

are standardized. In the case of a financial futures contract based upon a broad index, there is no delivery of the securities comprising

the underlying index, margin is uniform, a clearing corporation or an exchange is the counterparty and the Fund makes daily margin

payments based on price movements in the index. An option gives the purchaser the right to buy or sell securities or currencies, or in

the case of an option on a futures contract, the right to buy or sell a futures contract in exchange for a premium.

Foreign Currency Forward Contracts.

The Fund may enter into foreign currency forward contracts to protect the value of its assets

against future changes in the level of foreign exchange rates or to enhance returns. A foreign currency forward contract is an obligation

to buy or sell a given currency on a future date and at a set price or to make or receive a cash payment based on the value of a given

currency at a future date. Delivery of the underlying currency is expected, the terms are individually negotiated, the counterparty is not a

clearing corporation or an exchange, and payment on the contract is made upon delivery, rather than daily.

Swap Transactions.

The Fund may enter into swap transactions. Swap agreements are two-party contracts entered into primarily by

institutional investors for periods typically ranging from a few weeks to more than one year. In a standard

“

swap

”

transaction, two parties

agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or

instruments, which may be adjusted for an interest factor. There are various types of swaps, including but not limited to credit default

swaps, interest rate swaps, total return swaps and index swaps.

Swap Options.

The Fund may enter into swap options. A swap option is a contract that gives a counterparty the right (but not the

obligation) to enter into a new swap agreement or to shorten, extend, cancel or otherwise modify an existing swap agreement, at some

designated future time on specified terms.

Options on Securities and Financial Indices.

The Fund may purchase and sell put and call options on securities, and financial indices

traded on U.S. or non-U.S. securities exchanges, on NASDAQ or in the over-the-counter market. An option gives the purchaser the right

to buy or sell securities in exchange for a premium.

Temporary Strategies

At times the Subadvisers may judge that conditions in the markets make pursuing the Fund’s primary investment strategy inconsistent

with the best interests of its shareholders. During temporary periods or in order to keep the Fund’s cash fully invested until the net

proceeds of this offering of Common Shares can be invested in accordance with the Fund’s primary investment strategies, the Fund may

deviate from its investment policies and objectives. At such times the Subadvisers may, temporarily, use alternative strategies primarily

designed to reduce fluctuations in the value of the Fund’s assets. If the Fund takes a temporary position, it may be unable to achieve its

investment objective.

In implementing these temporary strategies, the Fund may invest all or a portion of its assets in investments such as high grade debt

securities, including high quality, short-term debt securities, and cash and cash equivalents that the Manager considers consistent with

this strategy.

It is impossible to predict when, or for how long, the Fund will use these temporary strategies. There can be no assurance that such

strategies will be successful.

Principal Strategies

The following provides information regarding the types of securities and other instruments in which the Fund will ordinarily invest. A

more detailed discussion of these and other instruments and non-principal investment techniques that may be used by the Fund is

provided under

“

Investment Policies and Techniques

”

in the Statement of Additional Information.

High Yield Securities

The Fund may invest without limit in debt instruments that are, at the time of purchase, rated below

“

investment grade

”

by at least one

of Moody’s Investors Service, Inc. (

“

Moody’s

”

), S&P Global Ratings or Fitch, or unrated but determined by PGIM to be of comparable

quality.

“

Investment grade

”

means a rating, in the case of Moody’s, of Baa3 or higher, or in the case of S&P and Fitch, of BBB-or higher.

The Fund may invest in securities of stressed or distressed issuers, which include securities at risk of being in default as to the

repayment of principal and/or interest at the time of acquisition by the Fund or that are rated in the lower rating categories by one or

more NRSROs or, if unrated, are determined by PGIM to be of comparable quality. The Fund may invest in defaulted securities and

debtor-in-possession financings. Below investment grade securities are commonly referred to as

“

high yield

”

securities or

“

junk bonds.

”

High yield securities involve a greater degree of risk (in particular, a greater risk of default) than, and special risks in addition to the risks

associated with, investment grade debt obligations. While offering a greater potential opportunity for capital appreciation and higher

yields, high yield securities typically entail greater potential price volatility and may be less liquid than higher-rated securities. High yield

securities may be regarded as predominantly speculative with respect to the issuer’s continuing ability to make timely principal and

interest payments. They also may be more susceptible to real or perceived adverse economic and competitive industry conditions than

higher-rated securities. Debt securities in the lowest investment grade category also may be considered to possess some speculative

characteristics by certain ratings agencies. The market values of high yield securities tend to reflect individual developments of the

issuer to a greater extent than do higher-quality securities, which tend to react mainly to fluctuations in the general level of interest rates.

In addition, lower-quality debt securities tend to be more sensitive to general economic conditions. Certain emerging market

governments that issue high yield securities in which the Fund may invest are among the largest debtors to commercial banks, foreign

governments and supranational organizations, such as the World Bank, and may not be able or willing to make principal and/or interest

payments as they come due.

Credit ratings and unrated securities

Rating agencies are private services that provide ratings of the credit quality of debt obligations. Appendix A to this prospectus describes

the various ratings assigned to debt obligations by Moody’s, S&P and Fitch. As noted in Appendix A, Moody’s, S&P and Fitch may

modify their ratings of securities to show relative standing within a rating category, with the addition of numerical modifiers (1, 2 or 3) in

the case of Moody’s, and with the addition of a plus (+) or minus (-) sign in the case of S&P and Fitch. Ratings assigned by a rating

agency are not absolute standards of credit quality and do not evaluate market risks. Rating agencies may fail to make timely changes in

credit ratings, and an issuer’s current financial condition may be better or worse than a rating indicates. The Fund will not necessarily

sell a security when its rating is reduced below its rating at the time of purchase. The ratings of a debt security may change over time.

Moody’s, S&P and Fitch monitor and evaluate the ratings assigned to securities on an ongoing basis. As a result, debt instruments held

by the Fund could receive a higher rating (which would tend to increase their value) or a lower rating (which would tend to decrease

their value) during the period in which they are held by the Fund. The Fund may invest without limit in unrated securities (which are not

rated by a rating agency) if PGIM determines, in its sole discretion, that the security is of comparable quality to a rated security that the

Fund may purchase. In making determinations, PGIM may take into account different factors than those taken into account by rating

agencies, and PGIM’s rating of a security may differ from the rating that a rating agency may have given the same securities. Unrated

securities may be less liquid than comparable rated securities and involve the risk that PGIM may not accurately evaluate the security’s

comparative credit quality, which could result in the Fund’s portfolio having a higher level of credit and/or high yield risk than PGIM has

estimated or desires for the Fund, and could negatively impact the Fund’s performance and/or returns. The Fund may invest a

substantial portion of its assets in unrated securities and therefore may be particularly subject to the associated risks. Analysis of the

creditworthiness of issuers of high yield securities may be more complex than for issuers of higher-quality debt obligations. To the extent

that the Fund invests in high yield and/or unrated securities, the Fund’s success in achieving its investment objective may depend more

heavily on the portfolio managers’ creditworthiness analysis than if the Fund invested exclusively in higher-quality and rated securities.

Mortgage-Related and Other Asset-Backed Instruments

The Fund may invest in a variety of mortgage-related and other asset-backed instruments issued by government agencies or other

governmental entities or by private originators or issuers. Mortgage-related assets include, but are not limited to, any security, instrument

or other asset that is related to U.S. or non U.S. mortgages, including those issued by private originators or issuers, or issued or

guaranteed as to principal or interest by the U.S. Government or its agencies or instrumentalities or by non-U.S. governments or

authorities, such as, without limitation, assets representing interests in, collateralized or backed by, or whose values are determined in

whole or in part by reference to any number of mortgages or pools of mortgages or the payment experience of such mortgages or pools

of mortgages, including Real Estate Mortgage Investment Conduits (

“

REMICs

”

), which could include resecuritizations of REMICs

(

“

Re-REMICs

”

), mortgage pass-through securities, inverse floaters, collateralized mortgage obligations, collateralized loan obligations,

multiclass pass-through securities, private mortgage pass- through securities, stripped mortgage securities (generally interest-only and

principal-only securities), mortgage-related asset backed securities and mortgage-related loans (including through participations,

assignments, originations and whole loans), including commercial and residential mortgage loans. Exposures to mortgage-related assets

through derivatives or other financial instruments will be considered investments in mortgage-related assets.

Mortgage Pass-Through Securities

Interests in pools of mortgage-related securities differ from other forms of debt securities, which normally provide for periodic payment of

interest in fixed amounts with principal payments at maturity or specified call dates.

Instead, these securities provide a monthly payment which consists of both interest and principal payments. In effect, these payments

are a

“

pass through

”

of the monthly payments made by the individual borrowers on their residential or commercial mortgage loans, net

of any fees paid to the issuer or guarantor of such securities. Additional payments are caused by repayments of principal resulting from

the sale of the underlying property, refinancing or foreclosure, net of fees or costs that may be incurred. Some mortgage-related assets

(such as securities issued by GNMA) are described as

“

modified pass-through.

”

These securities entitle the holder to receive all interest

and principal payments owed on the mortgage pool, net of certain fees, at the scheduled payment dates regardless of whether the

mortgagor actually makes the payment.

The rate of pre-payments on underlying mortgages will affect the price and volatility of a mortgage-related security, and may have the

effect of shortening or extending the effective duration of the security relative to what was anticipated at the time of purchase. To the

extent that unanticipated rates of prepayment on underlying mortgages increase the effective duration of a mortgage-related security, the

volatility of such security can be expected to increase. The mortgage market in the United States has experienced heightened difficulties

over the past several years that may adversely affect the performance and market value of mortgage-related investments. Delinquencies

and losses on residential and commercial mortgage loans (especially subprime and second-lien residential mortgage loans) generally

have increased recently and may continue to increase, and a decline in or flattening of property values (as has recently been

experienced and may continue to be experienced in many markets) may exacerbate such delinquencies and losses. Borrowers with

adjustable-rate mortgage loans are more sensitive to changes in interest rates, which affect their monthly mortgage payments, and may

be unable to secure replacement mortgages at comparably low interest rates. Also, a number of residential mortgage loan originators

have recently experienced serious financial difficulties or bankruptcy. Owing largely to the foregoing, reduced investor demand for

mortgage loans and mortgage-related securities and increased investor yield requirements have caused limited liquidity in the secondary

market for mortgage-related securities, which can adversely affect the market value of mortgage-related securities. It is possible that

such limited liquidity in such secondary markets could continue or worsen.

Most mortgage-backed securities are issued by federal government agencies such as Ginnie Mae, or by government sponsored

enterprises such as Freddie Mac and Fannie Mae. Principal and interest payments on mortgage-backed securities issued by the federal

government and some federal agencies, such as Ginnie Mae, are guaranteed by the federal government and backed by the full faith and

credit of the United States. Mortgage-backed securities issued by other government agencies or government sponsored enterprises are

backed only by the credit of the government agency or enterprise and are not backed by the full faith and credit of the United States.

Fannie Mae and Freddie Mac are authorized to borrow from the U.S. Treasury to meet their obligations. Private mortgage-backed

securities are issued by private corporations rather than government agencies and are subject to credit risk and interest rate risk. Fannie

Mae and Freddie Mac are stockholder-owned companies chartered by Congress. Fannie Mae and Freddie Mac guarantee the securities

they issue as to timely payment of principal and interest, but such guarantee is not backed by the full faith and credit of the United

States. In September 2008, Fannie Mae and Freddie Mac were placed into conservatorship by their regulator, the Federal Housing

Finance Agency. The conservatorship has no specified end date. There can be no assurance as to when or how the conservatorship will

be terminated or whether Fannie Mae or Freddie Mac will continue to exist following the conservatorship or what their respective

business structures will be during or following the conservatorship. Although the U.S. Government has provided financial support to

Fannie Mae and Freddie Mac, there can be no assurance that it will support these or other government-sponsored enterprises in

the future.

Privately Issued Mortgage-Related Securities

Commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market

issuers also create pass-through pools of conventional residential mortgage loans. Such issuers may be the originators and/or servicers

of the underlying mortgage loans as well as the guarantors of the mortgage-related securities. Pools created by such non-governmental

issuers generally offer a higher rate of interest than government and government-related pools because there are no direct or indirect

government or agency guarantees of payments in the former pools. However, timely payment of interest and principal of these pools may

be supported by various forms of insurance or guarantees, including individual loan, title, pool and hazard insurance and letters of

credit, which may be issued by governmental entities or private insurers. Such insurance and guarantees and the creditworthiness of the

issuers thereof will be considered in determining whether a mortgage-related security meets the Fund’s investment quality standards.

There can be no assurance that insurers or guarantors can meet their obligations under the insurance policies or guarantee

arrangements. The Fund may buy mortgage-related securities without insurance or guarantees if, through an examination of the loan

experience and practices of the originators/servicers and poolers, PGIM determines that the securities meet the Fund’s quality

standards. Securities issued by certain private organizations may not be readily marketable.

Privately issued mortgage-related securities are not subject to the same underwriting requirements for the underlying mortgages that are

applicable to those mortgage-related securities that have a government or government-sponsored entity guarantee. As a result, the

mortgage loans underlying privately issued mortgage-related securities may, and frequently do, have less favorable collateral, credit risk

or other underwriting characteristics than government or government-sponsored mortgage-related securities and have wider variances in

a number of terms including interest rate, term, size, purpose and borrower characteristics. Mortgage pools underlying privately issued

mortgage-related securities more frequently include second mortgages, high loan-to-value ratio mortgages and manufactured housing

loans, in addition to commercial mortgages and other types of mortgages where a government or government-sponsored entity

guarantee is not available. The coupon rates and maturities of the underlying mortgage loans in a privately-issued mortgage-related

securities pool may vary to a greater extent than those included in a government guaranteed pool, and the pool may include subprime

mortgage loans. Subprime loans are loans made to borrowers with weakened credit histories or with a lower capacity to make timely

payments on their loans. For these reasons, the loans underlying these securities have had in many cases higher default rates than

those loans that meet government underwriting requirements.

The risk of non-payment is greater for mortgage-related securities that are backed by loans that were originated under weak underwriting

standards, including loans made to borrowers with limited means to make repayment. A level of risk exists for all loans, although,

historically, the poorest performing loans have been those classified as subprime. Other types of privately issued mortgage-related

securities, such as those classified as pay-option adjustable rate or Alt-A have also performed poorly. Even loans classified as prime have

experienced higher levels of delinquencies and defaults. The substantial decline in real property values across the U.S. has exacerbated

the level of losses that investors in privately issued mortgage-related securities have experienced. It is not certain when these trends may

reverse. Market factors that may adversely affect mortgage loan repayment include adverse economic conditions, unemployment, a

decline in the value of real property, or an increase in interest rates.

Privately issued mortgage-related securities are not traded on an exchange and there may be a limited market for the securities,

especially when there is a perceived weakness in the mortgage and real estate market sectors. Without an active trading market,

mortgage-related securities held in the Fund’s portfolio may be particularly difficult to value because of the complexities involved in

assessing the value of the underlying mortgage loans.

The Fund may purchase privately issued mortgage-related securities that are originated, packaged and serviced by third party entities. It

is possible these third parties could have interests that are in conflict with the holders of mortgage-related securities, and such holders

(such as the Fund) could have rights against the third parties or their affiliates. For example, if a loan originator, servicer or its affiliates

engaged in negligence or willful misconduct in carrying out its duties, then a holder of the mortgage-related security could seek recourse

against the originator/servicer or its affiliates, as applicable. Also, as a loan originator/servicer, the originator/servicer or its affiliates may

make certain representations and warranties regarding the quality of the mortgages and properties underlying a mortgage-related

security. If one or more of those representations or warranties is false, then the holders of the mortgage-related securities (such as the

Fund) could trigger an obligation of the originator/servicer or its affiliates, as applicable, to repurchase the mortgages from the

issuing trust.

Notwithstanding the foregoing, many of the third parties that are legally bound by trust and other documents have failed to perform their

respective duties, as stipulated in such trust and other documents, and investors have had limited success in enforcing terms. To the

extent third party entities involved with privately issued mortgage-related securities are involved in litigation relating to the securities,

actions may be taken that are adverse to the interests of holders of the mortgage-related securities, including the Fund. For example,

third parties may seek to withhold proceeds due to holders of the mortgage-related securities, including the Fund, to cover legal or

related costs. Any such action could result in losses to the Fund.

PGIM seeks to manage the portion of the Fund’s assets committed to privately issued mortgage-related securities in a manner consistent

with the Fund’s investment objective, policies and overall portfolio risk profile. In determining whether and how much to invest in

privately issued mortgage-related securities, and how to allocate those assets, PGIM will consider a number of factors. These may

include, but are not limited to: (1) the nature of the borrowers (e.g., residential vs. commercial); (2) the collateral loan type (e.g., for

residential: First Lien - Jumbo/Prime, First Lien - Alt-A, First Lien - Subprime, First Lien - Pay-Option or Second Lien; for commercial:

Conduit, Large Loan or Single Asset / Single Borrower); and (3) in the case of residential loans, whether they are fixed rate or adjustable

mortgages. Each of these criteria can cause privately issued mortgage-related securities to have differing primary economic

characteristics and distinguishable risk factors and performance characteristics.

Collateralized Mortgage Obligations

A CMO is a debt obligation of a legal entity that is collateralized by mortgages and divided into classes. Similar to a bond, interest and

prepaid principal is paid, in most cases, on a monthly basis. CMOs may be collateralized by whole mortgage loans or private mortgage

bonds, but are generally collateralized by portfolios of mortgage pass-through securities guaranteed by GNMA, FHLMC or FNMA and

their income streams. CMOs are structured into multiple classes, often referred to as

“

tranches,

”

with each class bearing a different

stated maturity and entitled to a different schedule for payments of principal and interest, including prepayments. The riskiest portion is

the

“

equity

”

tranche which bears the bulk of defaults and serves to protect the other, more senior tranches from default in all but the

most severe circumstances. Actual maturity and average life will depend upon the pre-payment experience of the collateral. In the case

of certain CMOs (known as

“

sequential pay

”

CMOs), payments of principal received from the pool of underlying mortgages, including

prepayments, are applied to the classes of CMOs in the order of their respective final distribution dates. Thus, no payment of principal

will be made to any class of sequential pay CMOs until all other classes having an earlier final distribution date have been paid in full.

CMOs may be less liquid and may exhibit greater price volatility than other types of mortgage- or asset-backed instruments.

Commercial Mortgage-Backed Securities

Commercial mortgage-backed securities (

“

CMBSs

”

) include securities that reflect an interest in, and are secured by, mortgage loans on

commercial real property. Many of the risks of investing in commercial mortgage-backed securities reflect the risks of investing in the

real estate securing the underlying mortgage loans. These risks reflect the effects of local and other economic conditions on real estate

markets, the ability of tenants to make loan payments and the ability of a property to attract and retain tenants. Commercial

mortgage-backed securities may be less liquid and exhibit greater price volatility than other types of mortgage- or

asset-backed instruments.

CMO Residuals

CMO residuals are mortgage securities issued by agencies or instrumentalities of the U.S. Government or by private originators of, or

investors in, mortgage loans, including savings and loan associations, homebuilders, mortgage banks, commercial banks, investment

banks and special purpose entities of the foregoing. The cash flow generated by the mortgage assets underlying a series of a CMO is

applied first to make required payments of principal and interest on the CMO and second to pay the related administrative expenses and

any management fee of the issuer. The residual in a CMO structure generally represents the interest in any excess cash flow remaining

after making the foregoing payments. Each payment of such excess cash flow to a holder of the related CMO residual represents income

and/or a return of capital. The amount of residual cash flow resulting from a CMO will depend on, among other things, the

characteristics of the mortgage assets, the coupon rate of each class of CMO, prevailing interest rates, the amount of administrative

expenses and the prepayment experience on the mortgage assets. In particular, the yield to maturity on CMO residuals is extremely

sensitive to prepayments on the related underlying mortgage assets, in the same manner as an interest-only (or IO) class of stripped

mortgage-backed securities (described below). In addition, if a series of a CMO includes a class that bears interest at an adjustable rate,

the yield to maturity on the related CMO residual will also be extremely sensitive to changes in the level of the index upon which interest

rate adjustments are based. As described below with respect to stripped mortgage-backed securities, in certain circumstances the Fund

may fail to recoup fully its initial investment in a CMO residual. CMO residuals are generally purchased and sold by institutional investors

through several investment banking firms acting as brokers or dealers. CMO residuals may, or pursuant to an exemption therefrom, may

not, have been registered under the Securities Act. CMO residuals, whether or not registered under the Securities Act, may be subject to

certain restrictions on transferability.

Adjustable Rate Mortgage-Backed Securities

Adjustable rate mortgage-backed securities (

“

ARMs

”

) have interest rates that reset at periodic intervals. Acquiring ARMs permits the

Fund to participate in increases in prevailing current interest rates through periodic adjustments in the coupons of mortgages underlying

the pool on which ARMs are based. Such ARMs generally have higher current yield and lower price fluctuations than is the case with

more traditional fixed income debt securities of comparable rating and maturity. In addition, when prepayments of principal are made on

the underlying mortgages during periods of rising interest rates, the Fund can reinvest the proceeds of such prepayments at rates higher

than those at which they were previously invested. Mortgages underlying most ARMs, however, have limits on the allowable annual or

lifetime increases that can be made in the interest rate that the mortgagor pays. Therefore, if current interest rates rise above such limits

over the period of the limitation, the Fund, when holding an ARM, does not benefit from further increases in interest rates. Moreover,

when interest rates are in excess of coupon rates (i.e., the rates being paid by mortgagors) of the mortgages, ARMs behave more like

fixed income securities and less like adjustable-rate securities and are subject to the risks associated with fixed income securities. In

addition, during periods of rising interest rates, increases in the coupon rate of adjustable-rate mortgages generally lag current market

interest rates slightly, thereby creating the potential for capital depreciation on such securities.

Stripped Mortgage-Backed Securities

SMBSs are derivative multi-class mortgage securities. SMBSs may be issued by agencies or instrumentalities of the U.S. Government, or

by private originators of, or investors in, mortgage loans, including savings and loan associations, mortgage banks, commercial banks,

investment banks and special purpose entities of the foregoing. SMBSs are usually structured with two classes that receive different

proportions of the interest and principal distributions on a pool of mortgage assets. A common type of SMBS will have one class

receiving some of the interest and most of the principal from the mortgage assets, while the other class will receive most of the interest

and the remainder of the principal. In the most extreme case, one class will receive all of the interest (the IO class), while the other class

will receive all of the principal (the principal-only or PO class). The yield to maturity on an IO class is extremely sensitive to the rate of

principal payments (including prepayments) on the related underlying mortgage assets, and a rapid rate of principal payments may have

a material adverse effect on the Fund’s yield to maturity from these securities. If the underlying mortgage assets experience greater than

anticipated prepayments of principal, the Fund may fail to recoup some or all of its initial investment in these securities even if the

security is in one of the highest rating categories.

Collateralized Bond Obligations, Collateralized Loan Obligations and other Collateralized Debt Obligations

The Fund may invest in each of CBOs, CLOs, other CDOs and other similarly structured securities. CBOs, CLOs and CDOs are types of

asset-backed securities. A CBO is a trust which is often backed by a diversified pool of high risk, below investment grade fixed income

securities. The collateral can be from many different types of fixed income securities such as high-yield debt, residential privately-issued

mortgage-related securities, commercial privately-issued mortgage-related securities, trust preferred securities and emerging market

debt. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured

loans, senior unsecured loans and subordinate corporate loans, including loans that may be rated below investment grade or equivalent

unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties. CBOs, CLOs and other

CDOs may charge management fees and administrative expenses. For CBOs, CLOs and CDOs, the cash flows from the trust are split into

two or more portions, called tranches, varying in risk and yield. The riskiest portion is the

“

equity

”

tranche which bears the bulk of

defaults from the bonds or loans in the trust and serves to protect the other, more senior tranches from default in all but the most severe

circumstances. Since they are partially protected from defaults, senior tranches from a CBO trust, CLO trust or trust of another CDO

typically have higher ratings and lower yields than their underlying securities, and can be rated investment grade. Despite the protection

from the equity tranche, CBO, CLO or other CDO tranches can experience substantial losses due to actual defaults, increased sensitivity

to defaults due to collateral default and disappearance of protecting tranches, market anticipation of defaults, as well as aversion to

CBO, CLO or other CDO securities as a class. The Fund may invest in any tranche, including the equity tranche, of a CBO, CLO or other

CDO. The risks of an investment in a CBO, CLO or other CDO depend largely on the type of the collateral securities and the class of the

instrument in which the Fund invests. Normally, CBOs, CLOs and other CDOs are privately offered and sold, and thus, are not registered

under the securities laws. As a result, investments in CBOs, CLOs and other CDOs may be characterized by the Fund as illiquid

investments, however an active dealer market may exist for CBOs, CLOs and other CDOs allowing them to qualify for Rule 144A under

the Securities Act. In addition to the normal risks associated with debt instruments discussed elsewhere in this prospectus and in the

Statement of Additional Information (e.g., prepayment risk, credit risk, liquidity risk, market risk, structural risk, legal risk and interest

rate risk (which may be exacerbated if the interest rate payable on a structured financing changes based on multiples of changes in

interest rates or inversely to changes in interest rates) and default risk), CBOs, CLOs and other CDOs may carry additional risks

including, but are not limited to: (i) the possibility that distributions from collateral securities will not be adequate to make interest or

other payments; (ii) the possibility that the quality of the collateral may decline in value or default; (iii) the possibility that investments in

CBOs, CLOs and other CDOs are subordinate to other classes or tranches thereof; and (iv) the complex structure of the security may not

be fully understood at the time of investment and may produce disputes with the issuer or unexpected investment results.

Asset-Backed Securities

Asset-backed securities (

“

ABS

”

) are bonds backed by pools of loans or other receivables. ABS are created from many types of assets,

including auto loans, credit card receivables, home equity loans and student loans. ABS are typically issued through special purpose

vehicles that are bankruptcy remote from the issuer of the collateral. The credit quality of an ABS transaction depends on the

performance of the underlying assets. To protect ABS investors from the possibility that some borrowers could miss payments or even

default on their loans, ABS include various forms of credit enhancement. Some ABS, particularly home equity loan ABS, are subject to

interest rate risk and prepayment risk. A change in interest can affect the pace of payments on the underlying loans, which in turn

affects total return on the securities. ABS also carry credit or default risk. If many borrowers on the underlying loans default, losses could

exceed the credit enhancement level and result in losses to investors in an ABS. In addition, ABS have structural risk due to a unique

characteristic known as early amortization, or early payout, risk. Built into the structure of most ABS are triggers for early payout,

designed to protect investors from losses. These triggers are unique to each transaction and can include a big rise in defaults on the

underlying loans, a sharp drop in the credit enhancement level or even the bankruptcy of the originator. Once early amortization begins,

all incoming loan payments (after expenses are paid) are used to pay investors as quickly as possible based upon a predetermined

priority of payment. Please see

“

Investment Objectives and Strategies—Mortgage-Related and Other Asset-Backed Instruments

”

and

“

Risks—Mortgage-Backed and Asset-Backed Securities Risk

”

in this prospectus for a more detailed description of the types of

mortgage-related and other asset-backed instruments in which the Fund may invest and their related risks.

Loans and Other Indebtedness, Loan Participations and Assignments

The Fund may purchase indebtedness and participations in loans held and/or originated by private financial institutions, including

commercial and residential mortgage loans, corporate loans and consumer loans, as well as interests and/or servicing or similar rights in

such loans. Such instruments may be secured or unsecured and may be newly-originated (and may be specifically designed for the

Fund). Indebtedness is different from traditional debt securities in that debt securities are part of a large issue of securities to the public

whereas indebtedness may not be a security, and may represent a specific loan to a borrower. Loan participations typically represent

direct participation, together with other parties, in a loan to a borrower, and generally are offered by banks or other financial institutions

or lending syndicates. The Fund may participate in such syndications, or can buy part of a loan, becoming a part lender. When

purchasing indebtedness and loan participations, the Fund assumes the credit risk associated with the borrower and may assume the

credit risk associated with an interposed bank or other financial intermediary. The indebtedness and loan participations that the Fund

may acquire may not be rated by any NRSRO. A loan is often administered by an agent bank acting as agent for all holders. The agent

bank administers the terms of the loan, as specified in the loan agreement. In addition, the agent bank is normally responsible for the

collection of principal and interest payments from the borrower and the apportionment of these payments to the credit of all institutions

which are parties to the loan agreement. Unless, under the terms of the loan or other indebtedness, the Fund has direct recourse

against the borrower, the Fund may have to rely on the agent bank or other financial intermediary to apply appropriate credit remedies

against a borrower.

A financial institution’s employment as agent bank might be terminated in the event that it fails to observe a requisite standard of care or

becomes insolvent. A successor agent bank would generally be appointed to replace the terminated agent bank, and assets held by the

agent bank under the loan agreement would likely remain available to holders of such indebtedness. However, if assets held by the

agent bank for the benefit of the Fund were determined to be subject to the claims of the agent bank’s general creditors, the Fund might

incur certain costs and delays in realizing payment on a loan or loan participation and could suffer a loss of principal and/or interest. In

situations involving other interposed financial institutions (e.g., an insurance company or governmental agency) similar risks may arise.

Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the borrower for payment of

principal and interest. Loans are subject to the risk that scheduled interest or principal payments will not be made in a timely manner or

at all, either of which may adversely affect the values of the loan. If the Fund does not receive scheduled interest or principal payments

on such indebtedness, the NAV, market share price and/ or yield of the Common Shares could be adversely affected. Loans that are fully

secured offer the Fund more protection than an unsecured loan in the event of non-payment of scheduled interest or principal.

However, the collateral underlying a loan may be unavailable or insufficient to satisfy a borrower’s obligation, and the Fund could

become part owner of any collateral if a loan is foreclosed, subjecting the Fund to costs associated with owning and disposing of the

collateral. In the event of the bankruptcy of a borrower, the Fund could experience delays or limitations in its ability to realize the benefits

of any collateral securing a loan.

The Fund may acquire loans and loan participations, or originate loans with credit quality comparable to that of issuers of its securities

investments. Indebtedness of companies whose creditworthiness is poor in quality involves substantially greater risks, and may be highly

speculative. Some companies may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Consequently,

when acquiring indebtedness of companies with poor credit, the Fund bears a substantial risk of losing the entire amount of the

instrument acquired. The Fund may make purchases of indebtedness and loan participations to achieve income and/or capital

appreciation, rather than to seek income. The Fund limits the amount of its total assets that it will invest in issuers within the same

industry (except with respect to the Fund’s policy to concentrate in mortgage-related assets). For purposes of this limit, the Fund

generally will treat the corporate borrower as the

“

issuer

”

of indebtedness held by the Fund. In the case of loan participations where a

bank or other lending institution serves as a financial intermediary between the Fund and the corporate borrower, if the participation

does not shift to the Fund the direct debtor-creditor relationship with the corporate borrower, SEC interpretations require the Fund to

treat both the lending bank or other lending institution and the corporate borrower as

“

issuers.

”

Treating a financial intermediary as an

issuer of indebtedness may restrict the Fund’s ability to invest in indebtedness related to a single financial intermediary, or a group of

intermediaries engaged in the same industry, even if the underlying borrowers represent many different companies and industries.

Loans and other types of direct indebtedness (which the Fund may purchase or otherwise gain exposure to) may not be readily

marketable and may be subject to restrictions on resale. In connection with certain loan transactions, transaction costs that are borne by

the Fund may include the expenses of third parties that are retained to assist with reviewing and conducting diligence, negotiating,

structuring and servicing a loan transaction, and/or providing other services in connection therewith. Furthermore, the Fund may incur

such costs in connection with loan transactions that are pursued by the Fund but not ultimately consummated (so-called

“

broken deal

costs

”

). In some cases, negotiations involved in disposing of indebtedness may require weeks to complete.

Consequently, some indebtedness may be difficult or impossible to dispose of readily at what PGIM believes to be a fair price. In

addition, valuation of illiquid indebtedness involves a greater degree of judgment in determining the Fund’s NAV than if that value were

based on available market quotations, and could result in significant variations in the Fund’s daily share price. At the same time, some

loan interests are traded among certain financial institutions and accordingly may be deemed liquid. As the market for different types of

indebtedness develops, the liquidity of these instruments is expected to improve.

Acquisitions of loan participations are considered to be debt obligations for purposes of the Fund’s investment restriction relating to the

lending of funds or assets by the Fund. Acquisitions of loans through a purchase of a loan, loan origination or direct assignment of a

financial institution’s interests with respect to a loan may involve additional risks to the Fund. The purchaser of an assignment typically

succeeds to all the rights and obligations under the loan agreement with the same rights and obligations as the assigning lender.

Assignments may, however, be arranged through private negotiations between potential assignees and potential assignors, and the rights

and obligations acquired by the purchaser of an assignment may differ from, and be more limited than, those held by the assigning

lender. If a loan is foreclosed, the Fund could become part owner of any collateral, and would bear the costs and liabilities associated

with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, the Fund

could be held liable as co-lender. It is unclear whether loans and other forms of direct indebtedness offer securities law protections

against fraud and misrepresentation. In the absence of definitive regulatory guidance, the Fund relies on PGIM’s research in an attempt

to avoid situations where fraud or misrepresentation could adversely affect the Fund.

For whole loans purchased by the Fund (which would not include, for example, underlying loans in a securitized product held by the

Fund), it is expected that a qualified custodian of the Fund will typically receive or be provided with access to an executed loan package.

While the executed packages may differ for certain investments, it is typically comprised of evidence in the form of a promissory note or

similar document, an executed copy of the underlying loan agreement or security instrument, and an executed copy of the loan

assignment. Although the Fund’s custodian would have access to loan files, whether in electronic form or otherwise, it is expected that

the enforcement of the loans will generally be handled by the loan servicer. The Fund may make, participate in or acquire

debtor-in-possession financings (commonly known as

“

DIP financings

”

). DIP financings are arranged when an entity seeks the

protections of the bankruptcy court under Chapter 11 of the U.S. Bankruptcy Code. These financings allow the entity to continue its

business operations while reorganizing under Chapter 11. Such financings constitute senior liens on unencumbered security (i.e.,

security not subject to other creditors’ claims). There is a risk that the entity will not emerge from Chapter 11 and be forced to liquidate

its assets under Chapter 7 of the U.S. Bankruptcy Code. In the event of liquidation, the Fund’s only recourse will be against the property

securing the DIP financing.

Loan Origination

The Fund may seek to originate loans and invest in loans held and/or originated by private financial institutions or PGIM, specifically

through direct lending to companies or corporations, including foreign (non-U.S.) entities, which may be in the form of, without

limitation, corporate loans or other types of loans, which may be in the form of secured and unsecured notes, senior and second lien

loans, mezzanine loans, bridge loans or similar investments. Such borrowers may have credit ratings that are determined by one or more

NRSROs or PGIM to be below investment grade. The loans the Fund originates may vary in maturity and/or duration. The Fund is not

limited in the amount, size or type of loans it may originate, including with respect to a single borrower or with respect to borrowers that

are determined to be below investment grade, other than pursuant to any applicable law or the Fund’s fundamental investment

restrictions and related interpretations. The Fund’s origination of loans may also be limited by the Fund’s intention to qualify as a RIC.

The Fund will retain all fees received in connection with originating or structuring the terms of any such loan.

PGIM Fixed Income utilizes a rigorous bottom-up, relative value-based investment approach with a focus on emphasizing company

fundamentals to identify creditworthy borrowers and reduce downside risk from defaults.

Throughout the underwriting process, PGIM Fixed Income may consider the following to evaluate the opportunity: an assessment of

industry fundamentals, asset assessment, management expertise, suite of products/services, competitive position in its markets, barriers

to entry, valuation, operating and financial performance (historical and forward looking), organic and inorganic growth prospects, as well

as the expansion potential of its markets. PGIM Fixed Income seeks to identify the specific sources of cash flow and whether they are

recurring or one-time in nature. PGIM Fixed Income also reviews an issuer’s other available sources of cash and liquidity, which may

include the type and scope of available bank lines, access to capital markets (both debt and equity), and asset values. PGIM Fixed

Income typically assesses issuers within a given industry and across the relevant industries in a sector to seek to determine the degrees

of relative value. This proprietary relative value process is periodically performed across the global leverage finance platform and used to

guide portfolio construction across range of strategies that have exposure.

In determining whether to make a direct loan, the Fund will rely primarily upon the creditworthiness of the borrower and/or any collateral

for payment of interest and repayment of principal. In making a direct loan, the Fund is exposed to the risk that the borrower may

default or become insolvent and, consequently, that the Fund will lose money on the loan. Furthermore, direct loans may subject the

Fund to liquidity and interest rate risk and certain direct loans may be deemed illiquid. Direct loans are not publicly traded and may not

have a secondary market. The lack of a secondary market for direct loans may have an adverse impact on the ability of the Fund to

dispose of a direct loan and/or to value the direct loan.

When engaging in direct lending, the Fund’s performance may depend, in part, on the ability of the Fund to originate loans on

advantageous terms. In originating and purchasing loans, the Fund will often compete with a broad spectrum of lenders. Increased

competition for, or a diminishment in the available supply of, qualifying loans could result in lower yields on and/or less advantageous

terms of such loans, which could reduce Fund performance.

As part of its lending activities, the Fund may originate loans to companies that are experiencing significant financial or business

difficulties, including companies involved in bankruptcy or other reorganization and liquidation proceedings or that are rated

“

below

investment grade

”

by a national recognized ratings agency. Although the terms of such financing may result in significant financial

returns to the Fund, they involve a substantial degree of risk. The level of analytical sophistication, both financial and legal, necessary for

successful financing to companies experiencing significant business and financial difficulties is unusually high. Different types of assets

may be used as collateral for the Fund’s loans and, accordingly, the valuation of and risks associated with such collateral will vary by

loan. There is no assurance that the Fund will correctly evaluate the value of the assets collateralizing the Fund’s loans or the prospects

for a successful reorganization or similar action. In any reorganization or liquidation proceeding relating to a company that the Fund

funds, the Fund may lose all or part of the amounts advanced to the borrower or may be required to accept collateral with a value less

than the amount of the loan advanced by the Fund or its affiliates to the borrower. Furthermore, in the event of a default by a borrower,

the Fund may have difficulty disposing of the assets used as collateral for a loan.

Bridge loans are short-term loan arrangements (e.g., 12 to 18 months) typically made by a borrower in anticipation of intermediate-term

or long-term permanent financing. Most bridge loans are structured as floating-rate debt with step-up provisions under which the

interest rate on the bridge loan rises over time. Thus, the longer the loan remains outstanding, the more the interest rate increases. In

addition, bridge loans commonly contain a conversion feature that allows the bridge loan investor to convert its loan interest into senior

exchange notes if the loan has not been prepaid in full on or prior to its maturity date. Bridge loans may be subordinate to other debt

and may be secured or unsecured. Like any loan, bridge loans involve credit risk. Bridge loans are generally made with the expectation

that the borrower will be able to obtain permanent financing in the near future. Any delay in obtaining permanent financing subjects the

bridge loan investor to increased risk. A borrower's use of bridge loans also involves the risk that the borrower may be unable to locate

permanent financing to replace the bridge loan, which may impair the borrower's perceived creditworthiness.

Delayed Funding Loans and Revolving Credit Facilities

The Fund may invest in or acquire participations in, delayed funding loans and revolving credit facilities, in which a lender agrees to

make loans up to a maximum amount upon demand by the borrower during a specified term. A revolving credit facility differs from a

delayed funding loan in that as the borrower repays the loan, an amount equal to the repayment may be borrowed again during the term

of the revolving credit facility. Delayed funding loans and revolving credit facilities usually provide for floating or variable rates of interest.

These commitments may have the effect of requiring the Fund to increase its investment in an issuer at a time when it might not

otherwise decide to do so (including at a time when the issuer’s financial condition makes it unlikely that such amounts will be repaid).

The Fund may invest in delayed funding loans and revolving credit facilities with credit quality comparable to that of issuers of its

securities investments. Delayed funding loans and revolving credit facilities may be subject to restrictions on transfer, and only limited

opportunities may exist to resell such instruments. As a result, the Fund may be unable to sell such investments at an opportune time or

may have to resell them at less than fair market value.

U.S. Government Securities

U.S. government securities are obligations of and, in certain cases, guaranteed by, the U.S. government, its agencies or

instrumentalities. The U.S. government does not guarantee the NAV of the Fund’s Common Shares. Some U.S. government securities,

such as Treasury bills, notes and bonds, and securities guaranteed by GNMA, are supported by the full faith and credit of the United

States; others, such as those of the FHLBs, are supported by the right of the issuer to borrow from the U.S. Department of the Treasury

(the

“

U.S. Treasury

”

); others, such as those of FNMA, are supported by the discretionary authority of the U.S. government to purchase

the agency’s obligations; and still others are supported only by the credit of the instrumentality. U.S. government securities may include

zero coupon securities, which do not distribute interest on a current basis and tend to be subject to greater risk than interest-paying

securities of similar maturities.

Inverse Floaters

An inverse floater is a type of debt instrument that bears a floating or variable interest rate that moves in the opposite direction to interest

rates generally or the interest rate on another security or index. Changes in interest rates generally, or the interest rate of the other

security or index, inversely affect the interest rate paid on the inverse floater, with the result that the inverse floater’s price will be

considerably more volatile than that of a fixed-rate bond. The Fund may invest without limitation in inverse floaters, which brokers

typically create by depositing an income-producing instrument, which may be a mortgage-related asset, in a trust. The trust in turn

issues a variable rate security and inverse floaters. The interest rate for the variable rate security is typically determined by an index or an

auction process, while the inverse floater holder receives the balance of the income from the underlying income-producing instrument

less an auction fee. The market prices of inverse floaters may be highly sensitive to changes in interest rates and prepayment rates on

the underlying securities, and may decrease significantly when interest rates increase or prepayment rates change. In a transaction in

which the Fund purchases an inverse floater from a trust, and the underlying bond was held by the Fund prior to being deposited into

the trust, the Fund typically treats the transaction as a secured borrowing for financial reporting purposes. As a result, for financial

reporting purposes, the Fund will generally incur a non-cash interest expense with respect to interest paid by the trust on the variable

rate securities, and will recognize additional interest income in an amount directly corresponding to the non-cash interest expense.

Therefore, the Fund’s NAV per Common Share and performance are not affected by the non-cash interest expense. This accounting

treatment does not apply to inverse floaters acquired by the Fund when the Fund did not previously own the underlying bond.

Foreign (Non-U.S.) Investments

The Fund may invest some or all of its assets in U.S. dollar-denominated debt obligations of foreign issuers or supranational government

agencies. Subject to the limitations set forth in this prospectus, the Fund may invest in securities denominated in foreign currencies,

including sovereign debt issued by foreign developed and emerging market governments and their respective sub-divisions, agencies or

instrumentalities, government sponsored enterprises and supranational government entities. Supranational entities include international

organizations that are organized or supported by one or more government entities to promote economic reconstruction or development

and by international banking institutions and related governmental agencies. As a holder of such debt securities, the Fund may be

requested to participate in the rescheduling of such debt and to extend further loans to governmental entities. In addition, there are

generally no bankruptcy proceedings similar to those in the United States by which defaulted foreign debt securities may be collected.

Investing in foreign securities involves special risks and considerations not typically associated with investing in U.S. securities. See

“

Risks—Non-U.S. Investment Risks.

”

PGIM generally considers an instrument to be economically tied to a non-U.S. country if the issuer

is a foreign (non-U.S.) government (or any political subdivision, agency, authority or instrumentality of such government), or if the issuer

is organized under the laws of a non-U.S. country. In the case of money market instruments other than commercial paper and

certificates of deposit, such instruments will be considered economically tied to a non-U.S. country if the issuer of such money market

instrument is organized under the laws of a non-U.S. country. In the case of commercial paper and certificates of deposit, instruments

will be considered economically tied to a non-U.S. country if the

“

country of exposure

”

of such instrument is a non-U.S. country, as

determined by the criteria set forth below. With respect to derivative instruments, PGIM generally considers such instruments to be

economically tied to non-U.S. countries if the underlying assets are foreign currencies (or baskets or indexes of such currencies), or

instruments or securities that are issued by foreign governments or issuers organized under the laws of a non-U.S. country (or if the

underlying assets are money market instruments other than commercial paper and certificates of deposit, the issuer of such money

market instrument is organized under the laws of a non-U.S. country, or, in the case of underlying assets that are commercial paper or

certificates of deposit, if the

“

country of exposure

”

of such money market instrument is a non-U.S. country). A security’s

“

country of

exposure

”

is determined by PGIM using certain factors provided by a third-party analytical service provider. The factors are applied in

order such that the first factor to result in the assignment of a country determines the

“

country of exposure.

”

Both the factors and the

order in which they are applied may change in the discretion of PGIM. The current factors, listed in the order in which they are applied,

are: (i) if an asset-backed or other collateralized security, the country in which the collateral backing the security is located; (ii) the

“

country of risk

”

of the issuer; (iii) if the security is guaranteed by the government of a country (or any political subdivision, agency,

authority or instrumentality of such government), the country of the government or instrumentality providing the guarantee; (iv) the

“

country of risk

”

of the issuer’s ultimate parent; or (v) the country where the issuer is organized or incorporated under the laws thereof.

“

Country of risk

”

is a separate four-part test determined by the following factors, listed in order of importance: (i) management location;

(ii) country of primary listing; (iii) sales or revenue attributable to the country; and (iv) reporting currency of the issuer. Further, where a

derivative instrument is exposed to an index, PGIM generally considers the derivative to be economically tied to each country

represented by the components of the underlying index pursuant to the criteria set forth in the preceding sentence.

The foreign securities in which the Fund may invest include without limitation Eurodollar obligations and

“

Yankee Dollar

”

obligations.

Eurodollar obligations are U.S. dollar-denominated certificates of deposit and time deposits issued outside the U.S. capital markets by

foreign branches of U.S. banks and by foreign banks. Yankee Dollar obligations are U.S. dollar-denominated obligations issued in the

U.S. capital markets by foreign banks. Eurodollar and Yankee Dollar obligations are generally subject to the same risks that apply to

domestic debt issues, notably credit risk, interest rate risk, market risk and liquidity risk. Additionally, Eurodollar (and to a limited extent,

Yankee Dollar) obligations are subject to certain sovereign risks. One such risk is the possibility that a sovereign country might prevent

capital, in the form of U.S. dollars, from flowing across its borders. Other risks include adverse political and economic developments; the

extent and quality of government regulation of financial markets and institutions; the imposition of foreign withholding or other taxes;

market disruptions, the possibility of security suspensions; the expropriation or nationalization of foreign issuers or the imposition of

sanctions or other similar measures.

Derivative Strategies

The Fund may, but is not required to, utilize various derivative strategies (both long and short positions) for investment purposes,

leveraging purposes, or in an attempt to hedge against market, credit, interest rate, currency and other risks in the portfolio. See

“

Leverage.

”

Generally, derivatives are financial contracts whose value depends upon, or is derived from, the value of an underlying

asset, reference rate or index, and may relate to, among others, individual debt instruments, interest rates, currencies or currency

exchange rates, commodities and related indexes. Examples of derivative instruments that the Fund may use include, without limitation,

futures and forward contracts (including foreign currency exchange contracts), call and put options (including options on futures

contracts), credit default swaps, total return swaps, basis swaps and other swap agreements. The Fund’s use of derivative instruments

involves risks different from, or possibly greater than, the risks associated with investment directly in securities and other more traditional

investments. See

“

Risks — Derivatives Risk.

”

Certain types of derivative instruments that the Fund may utilize are described elsewhere

in this section, including those described under

“

Certain Interest Rate Transactions

”

and

“

Credit Default Swaps

”

. Please see

“

Investment Policies and Techniques — Derivatives,

”

“

Investment Policies and Techniques — Structured Notes and Related

Instruments

”

and

“

Investment Policies and Techniques — Hybrid Instruments

”

in the Statement of Additional Information for additional

information about these and other derivative instruments that the Fund may use and the risks associated with such instruments. There

is no assurance that these derivative strategies will be available at any time or that PGIM will determine to use them for the Fund or, if

used, that the strategies will be successful. In addition, the Fund may be subject to certain restrictions on its use of derivative strategies

imposed by guidelines of one or more rating agencies that may issue ratings for any preferred shares issued by the Fund.

Certain Interest Rate Transactions

In order to reduce the interest rate risk inherent in the Fund’s underlying investments and capital structure, the Fund may (but is not

required to) enter into interest rate swap transactions. Interest rate swaps involve the exchange by the Fund with a counterparty of their

respective commitments to pay or receive interest, such as an exchange of fixed rate payments for floating rate payments. These

transactions generally involve an agreement with the swap counterparty to pay a fixed or variable rate payment in exchange for the

counterparty paying the Fund the other type of payment stream (i.e., variable or fixed). The payment obligation would be based on the

notional amount of the swap. Other forms of interest rate swap agreements in which the Fund may invest include without limitation

interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates

exceed a specified rate, or

“

cap;

”

interest rate floors, under which, in return for a premium, one party agrees to make payments to the

other to the extent that interest rates fall below a specified rate, or

“

floor;

”

and interest rate

“

collars,

”

under which a party sells a cap and

purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum

levels. The Fund may (but is not required to) use interest rate swap transactions with the intent to reduce or eliminate the risk that an

increase in short-term interest rates could pose for the performance of the Fund’s Common Shares as a result of leverage, and also may

use these instruments for other hedging or investment purposes. Any termination of an interest rate swap transaction could result in a

termination payment by or to the Fund.

Credit Default Swaps

The Fund may enter into credit default swaps for both investment and risk management purposes, as well as to add leverage to the

Fund’s portfolio. A credit default swap may have as reference obligations one or more securities that are not currently held by the Fund.

The protection

“

buyer

”

in a credit default swap is generally obligated to pay the protection

“

seller

”

an upfront or a periodic stream of

payments over the term of the contract provided that no credit event, such as a default, on a reference obligation has occurred. If a

credit event occurs, the seller generally must pay the buyer the

“

par value

”

(full notional value) of the swap in exchange for an equal

face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related

net cash amount, if the swap is cash settled. Rather than exchange the bonds for par value, a single cash payment may be due from the

protection seller representing the difference between the par value of the bonds and the current market value of the bonds (which may

be determined through an auction).

The spread of a credit default swap is the annual amount the protection buyer must pay the protection seller over the length of the

contract, expressed as a percentage of the notional amount. When spreads rise, market perceived credit risk rises and when spreads

fall, market perceived credit risk falls. Wider credit spreads and decreasing market values, when compared to the notional amount of the

swap, represent a deterioration of the referenced entity’s credit soundness and a greater likelihood or risk of default or other credit event

occurring as defined under the terms of the agreement. For credit default swaps on asset-backed securities and credit indices, the

quoted market prices and resulting values, as well as the annual payment rate, serve as an indication of the current status of the

payment/performance risk.

Credit default swaps involve greater risks than if the Fund had invested in the reference obligation directly since, in addition to general

market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risk, among other risks associated with

derivative instruments. A buyer generally also will lose its investment and recover nothing should no credit event occur and the swap is

held to its termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller, coupled with the

upfront or periodic payments previously received, may be less than the full notional value it pays to the buyer, resulting in a loss of value

to the seller. The Fund’s obligations under a credit default swap will be accrued daily (offset against any amounts owing to the Fund).

Private Placements

A private placement involves the sale of securities that have not been registered under the Securities Act, or relevant provisions of

applicable non-U.S. law, including Rule 144A securities, to certain institutional and qualified individual purchasers, such as the Fund. In

addition to the general risks to which all securities are subject, securities received in a private placement generally are subject to strict

restrictions on resale, and there may be no liquid secondary market or ready purchaser for such securities. Therefore, the Fund may be

unable to dispose of such securities when it desires to do so, or at the most favorable time or price. Private placements may also raise

valuation risks.

Rule 144A Securities

The Fund invests in securities that have not been registered for public sale, but that are eligible for purchase and sale pursuant to Rule

144A under the Securities Act. Rule 144A permits certain qualified institutional buyers, such as the Fund, to trade in privately placed

securities that have not been registered for sale under the Securities Act. Rule 144A securities may be deemed illiquid, although the

Fund may determine that certain Rule 144A securities are liquid.

“

Covenant-lite

”

Obligations

The Fund invests in, or obtain exposure to debt obligations, loans or other securities that may be

“

covenant-lite,

”

which means such

obligations lack, or possess fewer, financial covenants that protect lenders. Covenant-lite agreements feature incurrence covenants, as

opposed to more restrictive maintenance covenants. Under a maintenance covenant, the borrower would need to meet regular, specific

financial tests, while under an incurrence covenant, the borrower only would be required to comply with the financial tests at the time it

takes certain actions (e.g., issuing additional debt, paying a dividend, making an acquisition). A covenant-lite obligation contains fewer

maintenance covenants than other obligations, or no maintenance covenants, and may not include terms that allow the lender to

monitor the performance of the borrower and declare a default if certain criteria are breached.

Repurchase Agreements

The Fund enters into repurchase agreements, in which the Fund purchases a security from a bank or broker-dealer agrees to

repurchase the security at the Fund’s cost plus interest within a specified time. If the party agreeing to repurchase should default, the

Fund would seek to sell the securities which it holds. This could involve costs or delays in addition to a loss on the securities if their value

should fall below their repurchase price. Repurchase agreements may be or become illiquid. These events could also trigger adverse tax

consequences for the Fund.

Portfolio Turnover

The length of time the Fund has held a particular security is not generally a consideration in investment decisions. A change in the

securities held by the Fund is known as

“

portfolio turnover.

”

The Fund may engage in frequent and active trading of portfolio securities

to achieve its investment objective, particularly during periods of volatile market movements. High portfolio turnover (e.g., over 100%)

generally involves correspondingly greater expenses to the Fund, including brokerage commissions or dealer mark-ups and other

transaction costs on the sale of securities and reinvestments in other securities. Sales of portfolio securities may also result in realization

of taxable capital gains, including short-term capital gains (which are generally treated as ordinary income upon distribution in the form

of dividends). The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund’s performance. Please

see

“

Investment Policies and Techniques

”

in the Statement of Additional Information for additional information regarding the

investments of the Fund and their related risks.

Variable- and Floating-Rate Securities

Variable- and floating-rate instruments are instruments that pay interest at rates that adjust whenever a specified interest rate changes

and/or that reset on predetermined dates (such as the last day of a month or calendar quarter). In addition to senior loans, variable- and

floating-rate instruments may include, without limitation, instruments such as catastrophe and other event-linked bonds, bank capital

securities, unsecured bank loans, corporate bonds, money market instruments and certain types of mortgage-related and other

asset-backed securities. Due to their variable- or floating-rate features, these instruments will generally pay higher levels of income in a

rising interest rate environment and lower levels of income as interest rates decline. For the same reason, the market value of a variable-

or floating-rate instrument is generally expected to have less sensitivity to fluctuations in market interest rates than a fixed-rate

instrument, although the value of a variable- or floating-rate instrument may nonetheless decline as interest rates rise and due to other

factors, such as changes in credit quality. The Fund also may engage in credit spread trades. A credit spread trade is an investment

position relating to a difference in the prices or interest rates of two bonds or other securities, in which the value of the investment

position is determined by changes in the difference between the prices or interest rates, as the case may be, of the respective securities.

Emerging Markets Investments

The Fund may invest in securities and instruments by emerging market issuers that are economically tied to

“

emerging market

”

countries. PGIM generally considers an instrument to be economically tied to an emerging market country if: the issuer is organized

under the laws of an emerging market country; the currency of settlement of the security is a currency of an emerging market country;

the security is guaranteed by the government of an emerging market country (or any political subdivision, agency, authority or

instrumentality of such government); for an asset-backed or other collateralized security, the country in which the collateral backing the

security is located is an emerging market country; or the security’s

“

country of exposure

”

is an emerging market country, as determined

by the criteria set forth below.

With respect to derivative instruments, PGIM generally considers such instruments to be economically tied to emerging market countries

if the underlying assets are currencies of emerging market countries (or baskets or indexes of such currencies), or instruments or

securities that are issued or guaranteed by governments of emerging market countries or by entities organized under the laws of

emerging market countries or an instrument’s

“

country of exposure

”

is an emerging market country. PGIM will consider emerging

market country and currency composition based on its evaluation of relative interest rates, inflation rates, exchange rates, monetary and

fiscal policies, trade and current account balances, legal and political developments and any other specific factors it believes to

be relevant.

The Fund generally considers emerging market countries to be countries included in the JP Morgan Emerging Markets Bond Index

Global Diversified Index, the JP Morgan Government Bond Index-Emerging Markets Global Diversified Index, the JP Morgan Emerging

Local Markets Index Plus or the JP Morgan Corporate Emerging Markets Bond Index Broad Diversified.

Risk Factors [Table Text Block]

RISKS

The Fund is designed primarily as a long-term investment and not as a trading vehicle. The Fund is not intended to be a complete

investment program and, due to the uncertainty inherent in all investments, there can be no assurance that the Fund will achieve its

investment objective(s). At any point in time your investment in the Fund may be worth less than you invested, even after taking into

account the reinvestment of Fund dividends, distributions or interest payments, as applicable.

Investing in the Fund involves risks, including the risk that a shareholder may receive little or no return on his or her investment or that a

shareholder may lose part or all of his or her investment. The Fund should be considered a speculative investment that entails

substantial risks, and a prospective investor should invest in the Fund only if they can sustain a complete loss of their investment. Below

is a summary of some of the principal risks of investing in the Fund.

Shareholders should consider carefully the following principal risks before investing in the Fund:

Limited History of Operations Risk.

The Fund is a recently organized, diversified, closed-end management investment company with

limited history of operations or public trading and is subject to all of the business risks and uncertainties associated with any new

business. As a result, prospective investors have limited track record or history on which to base their investment decision.

General, Market and Economic Risk

. Investing in the Fund involves certain risks and the Fund may not be able to achieve its intended

results for a variety of reasons, including, among others, the possibility that the Fund may not be able to successfully implement its

investment strategy because of market, economic, regulatory, geopolitical and other conditions. International wars or conflicts (such as

those in the Middle East and Ukraine) and geopolitical developments in foreign countries, along with instability in regions such as Asia,

Eastern Europe, and the Middle East, possible terrorist attacks in the United States or around the world, public health epidemics and

pandemics such as the outbreak of infectious diseases like the COVID-19 pandemic, and other similar events could adversely affect the

U.S. and foreign financial markets, including increases in market volatility, reduced liquidity in the securities markets and government

intervention, and may cause further long-term economic uncertainties in the United States and worldwide generally. Relatively reduced

liquidity in credit and fixed income markets could adversely affect issuers worldwide. U.S. and foreign governments have taken a

number of unprecedented actions designed to support certain financial institutions and segments of the financial markets that have

experienced extreme volatility, and in some cases a lack of liquidity. The impact of these measures, as well as any additional future

regulatory actions, is not yet known and cannot be predicted.

Legislation or regulation may also change the way in which the Fund itself is regulated and could limit or preclude the Fund’s ability to

achieve its investment objective. Because the market price of the Common Shares will fluctuate, there is a risk that you will lose money.

Your investment will decline in value if, among other things, the market price of the Common Shares decreases. As with any security, a

complete loss of your investment is possible.

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.

Repurchase Offers Risk.

As described under

“

Periodic Repurchase Offers

”

above, the Fund is an

“

interval fund

”

and, in order to provide

liquidity to shareholders, the Fund, subject to applicable law, will conduct quarterly repurchase offers of the Fund’s outstanding

Common Shares at NAV, with the size of the repurchase offer subject to approval of the Board. In all cases, such repurchase offers will

be for at least 5% and not more than 25% of its outstanding Common Shares at NAV, pursuant to Rule 23c-3 under the Investment

Company Act. The Fund currently expects to conduct quarterly repurchase offers for 5% of its outstanding Common Shares under

ordinary circumstances. The Fund believes that these repurchase offers are generally beneficial to the Fund’s shareholders, and

repurchases generally will be funded from available cash or sales of portfolio securities. However, repurchase offers and the need to

fund repurchase obligations may affect the ability of the Fund to be fully invested or force the Fund to maintain a higher percentage of

its assets in liquid investments, which may harm the Fund’s investment performance. Moreover, diminution in the size of the Fund

through repurchases may result in untimely sales of portfolio securities (with associated imputed transaction costs, which may be

significant), and may limit the ability of the Fund to participate in new investment opportunities or to achieve its investment objective.

The Fund may accumulate cash by holding back (i.e., not reinvesting)

payments

received in connection with the Fund’s investments.

The Fund believes that payments received in connection with the Fund’s investments will generate sufficient cash to meet the maximum

potential amount of the Fund’s repurchase obligations. If at any time cash and other cash equivalents held by the Fund are not sufficient

to meet the Fund’s repurchase obligations, the Fund intends, if necessary, to sell investments. If, as expected, the Fund employs

investment leverage, repurchases of Common Shares would compound the adverse effects of leverage in a declining market. In addition,

if the Fund borrows to finance repurchases, interest on that borrowing will negatively affect Common Shareholders who do not tender

their Common Shares by increasing the Fund’s expenses and reducing any net investment income. If a repurchase offer is

oversubscribed, the Fund may, but is not required to, determine to increase the amount repurchased by up to 2% of the Fund’s

outstanding shares as of the date of the Repurchase Request Deadline. In the event that the Fund determines not to repurchase more

than the repurchase offer amount, or if shareholders tender more than the repurchase offer amount plus 2% of the Fund’s outstanding

shares as of the date of the Repurchase Request Deadline, the Fund will repurchase the Common Shares tendered on a pro rata basis,

and shareholders will have to wait until the next repurchase offer to make another repurchase request. As a result, shareholders may be

unable to liquidate all or a given percentage of their investment in the Fund during a particular repurchase offer. Some shareholders, in

anticipation of proration, may tender more Common Shares than they wish to have repurchased in a particular quarter, thereby

increasing the likelihood that proration will occur. A shareholder may be subject to market and other risks, and the NAV of Common

Shares tendered in a repurchase offer may decline between the Repurchase Request Deadline and the date on which the NAV for

tendered Common Shares is determined. In addition, the repurchase of Common Shares by the Fund may be a taxable event

to shareholders.

If a repurchase offer is oversubscribed, the Fund will repurchase only a pro rata portion of the Common Shares tendered by each

shareholder. In addition, substantial repurchases of Common Shares could result in a decrease in the Fund's net assets, resulting in an

increase in the Fund's total annual operating expense ratio. See

“

Repurchase Offers Risk

”

above for additional information about certain

risks related to Repurchase Offers.

Illiquid Investment Risk.

To the e

ent consistent with the applicable liquidity requirements for interval funds under Rule 23c-3 under the

1940 Act, the Fund may invest without limit in illiquid securities. A variety of factors could make it difficult for the Fund to dispose of any

of its illiquid assets on acceptable terms even if a disposition is in the best interests of the Fund’s shareholders. The Fund may not be

able to readily dispose of such securities at prices that approximate those at which the Fund could sell the securities if they were more

widely traded and, as a result of that illiquidity, the Fund may have to sell such securities at a loss or sell other investments or engage in

borrowing transactions if necessary to raise cash to meet its obligations. Limited liquidity can also affect the market price of securities,

thereby adversely affecting the Fund’s NAV and ability to make dividend distributions. The Fund may invest in privately-held companies,

below-investment-grade instruments (

“

junk

”

bonds), securities which are at risk of default as to the repayment of principal and/or

interest at the time of acquisition by the fund or are rated in the lower rating categories or are unrated, which may be difficult to value

and may be illiquid.

Distributions Risk.

There can be no assurance that the Fund will achieve investment results that will allow the Fund to make a specified

level of cash distributions or maintain certain levels of cash distributions. All distributions will be paid at the discretion of the Board and

may depend on the Fund’s earnings, the Fund’s net investment income, the Fund’s financial condition, compliance with applicable

regulations and such other factors as the Board may deem relevant from time to time. The distributions for any full or partial calendar

year might not be made in equal amounts, and one distribution may be larger than others. The Fund will make a distribution only if

authorized by the Board and declared by the Fund out of assets legally available for these distributions. This distribution policy may,

under certain circumstances, have certain adverse consequences to the Fund and its shareholders because it may result in a return of

capital, which would reduce the Fund’s NAV and, over time, potentially increase the Fund’s expense ratio. If the Fund distributes a

return of capital, it means that the Fund is returning to shareholders a portion of their investment rather than making a distribution that

is funded from the Fund’s earned income or other profits. The Fund’s distribution policy may be changed by the Board at any time

without shareholder approval. The Fund may also invest in securities that have not been registered for public sale in the U.S. or relevant

non-U.S. jurisdiction, including, without limitation, securities eligible for purchase and sale pursuant to Rule 144A under the Securities

Act of 1933, as amended. Rule 144A permits certain qualified institutional buyers, such as the Fund, to trade in privately placed

securities that have not been registered for sale under the Securities Act. Rule 144A securities may be deemed illiquid, although the

Fund may determine that certain Rule 144A securities are liquid.

Liquidity Risk.

In order to provide liquidity to shareholders, the Fund is structured as an

“

interval fund

”

and conducts periodic

repurchase offers for a portion of its outstanding Common Shares, as described herein. The Fund is designed primarily for long-term

investors and an investment in the Common Shares should be considered illiquid. The Common Shares are not currently listed for

trading on any securities exchange. There is currently no public market for the Common Shares and none is expected to develop.

Although the Fund may offer to repurchase Common Shares from shareholders, no assurance can be given that these repurchases will

occur as scheduled or at all.

Valuation Risk.

The value of certain of the Fund’s investments will be difficult to determine and the valuation determinations made by the

Manager, Subadvisers, and Independent Valuation Advisor with respect to such investments will likely vary from the amounts the Fund

would receive upon sale or disposition of such investments. It is possible that the fair value determined for an investment may differ

materially from the value that could be realized upon the sale of the investment. Within the parameters of the Fund’s valuation policies

and procedures, the valuation methodologies used to value the Fund’s assets will involve subjective judgments and projections and that

ultimately may not materialize. Ultimate realization of the value of an asset depends to a great extent on economic, market and other

conditions beyond the Fund’s control and the control of the Manager and the Fund’s Independent Valuation Advisor and third-party

appraisers. Rapidly changing market conditions or material events may not be immediately reflected in the Fund’s daily NAV. The

resulting potential disparity in the Fund’s NAV may inure to the benefit of shareholders whose shares are repurchased or new purchasers

of the Common Shares, depending on whether the Fund’s published NAV per share for such class is overstated or understated. See

“

Net Asset Value.

”

Loans Risk.

The Fund may invest in loans, including, among others, bank loans, senior loans, mezzanine loans, bridge loans, delayed

funding loans and revolving credit facilities, loan participations and assignments, and loans held and/or originated by private financial

institutions or PGIM, including commercial and residential mortgage loans and private credit assets. The Fund may also make,

participate in or acquire DIP financings. DIP financings constitute senior liens on unencumbered security. The Fund’s ability to receive

payments of principal and interest and other amounts in connection with loans (whether through participations, assignments or

otherwise) will depend primarily on the financial condition of the borrower. The failure by the Fund to receive scheduled interest or

principal payments on a loan because of a default, bankruptcy or any other reason would adversely affect the income of the Fund and

would likely reduce the value of its assets. Even with loans secured by collateral, there is the risk that the value of the collateral may

decline, may be insufficient to meet the obligations of the borrower, or be difficult to liquidate. In the event of a default, the Fund may

have difficulty collecting on any collateral and would not have the ability to collect on any collateral for an uncollateralized loan. Further,

the Fund's access to collateral, if any, may be limited by bankruptcy laws. Due to the nature of the private syndication of senior loans,

including, for example, lack of publicly-available information, some senior loans are not as easily purchased or sold as publicly-traded

securities. In addition, loan participations generally are subject to restrictions on transfer, and only limited opportunities may exist to sell

loan participations in secondary markets. As a result, it may be difficult for the Fund to value loans or sell loans at an acceptable price

when it wants to sell them. Loans trade in an over-the-counter market, and confirmation and settlement, which are effected through

standardized procedures and documentation, may take significantly longer than seven days to complete. Extended trade settlement

periods may, in unusual market conditions with a high volume of shareholder repurchase requests, present a risk to shareholders

regarding the Fund's ability to pay repurchase offer proceeds in a timely manner. In some instances, loans and loan participations are

not rated by independent credit rating agencies; in such instances, a decision by the Fund to invest in a particular loan or loan

participation could depend exclusively on the Subadvisers’ credit analysis of the borrower, or in the case of a loan participation, of the

intermediary holding the portion of the loan that the Fund has purchased. To the extent the Fund invests in loans of non-U.S. issuers,

the risks of investing in non-U.S. issuers are applicable. Loans may not be considered to be

“

securities

”

and as a result may not benefit

from the protections of the federal securities laws, including anti-fraud protections and those with respect to the use of material

non-public information, so that purchasers, such as the Fund, may not have the benefit of these protections. If the Fund is in possession

of material non-public information about a borrower as a result of its investment in such borrower’s loan, the Fund may not be able to

enter into a transaction with respect to a publicly-traded security of the borrower when it would otherwise be advantageous to do so.

Loan Origination Risk.

The Subadvisers will originate loans on behalf of the Fund. The level of analytical sophistication, both financial

and legal, necessary for successful financing to companies, particularly companies experiencing significant business and financial

difficulties, is high. There can be no assurance that the Subadvisers and the Fund will correctly evaluate the value of the assets

collateralizing these loans or the prospects for successful repayment or a successful reorganization or similar action.

Loan origination involves a number of particular risks that may not exist in the case of secondary debt purchases. A Subadviser may

have to rely more on its own resources to conduct due diligence of the borrower, and such borrower may in some circumstances present

a higher credit risk and/or could not obtain debt financing in the syndicated markets. Loan origination may also involve additional

regulatory risks given licensing requirements for certain types of lending in some jurisdictions, and the scope of these regulatory

requirements (and certain permitted exemptions) may vary from jurisdiction to jurisdiction and may change from time to time. In

addition, in originating loans, the Fund will compete with a broad spectrum of lenders, some of which may have greater financial

resources than the Fund, and some of which may be willing to lend money on better terms (from a borrower’s standpoint) than the

Fund. Increased competition for, or a diminution in the available supply of, qualifying loans may result in lower yields on such loans,

which could reduce returns to the Fund.

Mortgage-Backed and Asset-Backed Securities Risk.

Mortgage-backed securities are particularly susceptible to prepayment and

extension risks, because prepayments on the underlying

mortgages

tend to increase when interest rates fall and decrease when interest

rates rise. Prepayments may also occur on a scheduled basis or due to foreclosure. When market interest rates increase, mortgage

refinancings and prepayments slow, which lengthens the effective duration of these securities. As a result, the negative effect of the

interest rate increase on the market value of mortgage-backed securities is usually more pronounced than it is for other types of fixed

income securities, potentially increasing the volatility of the Fund.

Conversely, when market interest rates decline, while the value of mortgage-backed securities may increase, the rates of prepayment of

the underlying mortgages tend to increase, which shortens the effective duration of these securities. Mortgage-backed securities are also

subject to the risk that underlying borrowers will be unable to meet their obligations.

At times, some of the mortgage-backed securities in which the Fund may invest will have higher than market interest rates and therefore

will be purchased at a premium above their par value. Prepayments may cause losses on securities purchased at a premium.

The value of mortgage-backed securities may be affected by changes in credit quality or value of the mortgage loans or other assets that

support the securities. In addition, for mortgage-backed securities, when market conditions result in an increase in the default rates on

the underlying mortgages and the foreclosure values of the underlying real estate are below the outstanding amount of the underlying

mortgages, collection of the full amount of accrued interest and principal on these investments may be doubtful. For mortgage

derivatives and structured securities that have embedded leverage features, small changes in interest or prepayment rates may cause

large and sudden price movements. Mortgage derivatives can also become illiquid and hard to value in declining markets.

Asset-backed securities are structured like mortgage-backed securities and are subject to many of the same risks, including prepayment

risk, extension risk, credit risk and interest rate risk. The ability of an issuer of asset-backed securities to enforce its security interest in

the underlying assets or to otherwise recover from the underlying obligor may be limited. Certain asset-backed securities present a

heightened level of risk because, in the event of default, the liquidation value of the underlying assets may be inadequate to pay any

unpaid principal or interest.

Structured Products Risk.

Holders of structured product securities bear risks of the underlying investments, index or reference

obligation. Certain structured products may be thinly traded or have a limited trading market, and as a result may be characterized as

illiquid. 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, which may

also result in additional costs. Structured products are also subject to credit risk; the assets backing the structured product may be

insufficient to pay interest or principal. In addition to the general risks associated with investments in fixed income, structured products

carry additional risks, including, but not limited to: the possibility that distributions from collateral securities will not be adequate to make

interest or other payments; the quality of the collateral may decline in value or default; and the possibility that the structured products

are subordinate to other classes. Structured securities are generally privately negotiated debt obligations where the principal and/or

interest or value of the structured security is determined by reference to the performance of a specific asset, benchmark asset, market

or interest rate (

“

reference instrument

”

), and changes in the reference instrument or security may cause significant price fluctuations, or

could cause the interest rate on the structured security to be reduced to zero. Holders of structured products indirectly bear risks

associated with the reference instrument, are subject to counterparty risk and typically do not have direct rights against the reference

instrument. Structured products may also entail structural complexity and documentation risk and there is no guarantee that the courts

or administrators will interpret the priority of principal and interest payments as expected.

Fixed Income Instruments Risk.

In addition to the other risks described herein, fixed income instruments are also subject to certain

risks, including:

■

Issuer Risk.

The value of fixed income instruments may decline for a number of reasons that directly relate to the issuer, such as

management performance, financial leverage and reduced demand for the issuer’s goods and services.

■

Interest Rate Risk.

The value of the Fund’s investments 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. When interest rates fall, the issuers of debt obligations may prepay

principal more quickly than expected, and the Fund may be required to reinvest the proceeds at a lower interest rate. This is referred

to as

“

prepayment risk.

”

When interest rates rise, debt obligations may be repaid more slowly than expected, and the value of the

Fund’s holdings may fall sharply. This is referred to as

“

extension risk.

”

The Fund may face a heightened level of interest rate risk as a

result of the U.S. Federal Reserve Board’s rate-setting policies. Interest rates are at or near historical lows, which may increase the

risks associated with rising interest rates in the future. The Fund may lose money if short-term or long-term interest rates rise sharply

or in a manner not anticipated by the Subadvisers. Fluctuations in the market price of the Fund’s instruments will not affect interest

income derived from instruments already owned by the Fund, but will be reflected in the Fund’s NAV. The Fund may utilize certain

strategies, including investments in derivatives, for the purpose of reducing the interest rate sensitivity of the portfolio and decreasing

the Fund’s exposure to interest rate risk, although there is no assurance that it will do so or that such strategies, if utilized, will

be successful.

■

Duration Risk.

Duration measures the time-weighted expected cash

flows

of a security, which can determine the security’s sensitivity

to changes in the general level of interest rates (or yields). Securities with longer durations tend to be more sensitive to interest rate (or

yield) changes than securities with shorter durations. Various techniques may be used to shorten or lengthen the Fund’s duration. The

duration of a security will be expected to change over time with changes in market factors and time to maturity.

■

Floating-Rate and Fixed-to-Floating-Rate Securities Risk.

The market value of floating-rate securities is a reflection of discounted

expected cash flows based on expectations for future interest rate resets. The market value of such securities may fall in a declining

interest rate environment and may also fall in a rising interest rate environment if there is a lag between the rise in interest rates and

the reset. This risk may also be present with respect to fixed-to-floating-rate securities in which the Fund may invest. A secondary risk

associated with declining interest rates is the risk that income earned by the Fund on floating-rate and fixed-to-floating-rate securities

will decline due to lower coupon payments on floating-rate securities.

■

Prepayment Risk.

During periods of declining interest rates, the issuer of an instrument may exercise its option to prepay principal

earlier than scheduled, forcing the Fund to reinvest the proceeds from such prepayment in lower yielding instruments, which may

result in a decline in the Fund’s income and distributions to shareholders. This is known as prepayment or

“

call

”

risk. Fixed income

instruments frequently have call features that allow the issuer to redeem the instrument at dates prior to its stated maturity at a

specified price (typically greater than par) only if certain prescribed conditions are met (

“

call protection

”

). An issuer may choose to

redeem a fixed income instrument if, for example, the issuer can refinance the instrument at a lower cost due to declining interest

rates or an improvement in the credit standing of the issuer. For premium bonds (bonds acquired at prices that exceed their par or

principal value) purchased by the Fund, prepayment risk may be enhanced.

■

Extension Risk.

During periods of rising interest rates, an issuer could exercise its right to pay principal on an obligation held by the

Fund later than expected. Under these circumstances, the value of the obligation will decrease, and the Fund may be prevented from

reinvesting in higher yielding securities.

■

Reinvestment Risk.

Reinvestment risk is the risk that income from the Fund’s portfolio will decline if and when the Fund invests the

proceeds from matured, traded or called fixed income instruments at market interest rates that are below the portfolio’s current

earnings rate.

■

Spread Risk.

Wider credit spreads and decreasing market values typically represent a deterioration of the fixed income instrument’s

credit soundness and a perceived greater likelihood or risk of default by the issuer. Fixed income instruments generally compensate

for greater credit risk by paying interest at a higher rate. The difference (or

“

spread

”

) between the yield of a security and the yield of a

benchmark, such as a U.S. Treasury security with a comparable maturity, measures the additional interest paid for credit risk. As the

spread on a security widens (or increases), the price (or value) of the security generally falls. Spread widening may occur, among

other reasons, as a result of market concerns over the stability of the market, excess supply, general credit concerns in other markets,

security- or market-specific credit concerns or general reductions in risk tolerance.

■

Credit Risk.

Credit risk is the risk that one or more fixed income instruments in the Fund’s portfolio will decline in price or fail to pay

interest or principal when due because the issuer, the guarantor or the insurer of the instrument or any applicable counterparty may

be unable or unwilling to make timely principal and interest payments or to otherwise honor its obligations. Additionally, the

instruments could lose value due to a loss of confidence in the ability of the issuer, guarantor, insurer or counterparty to pay back

debt. The longer the maturity and the lower the credit quality of a bond, the more sensitive it is to credit risk.

■

Refinancing Risk.

This is the risk that one or more issuers of fixed income instruments in the Fund’s portfolio may not be able to pay

off their debt upon maturity. During times of extreme market stress, even creditworthy companies can have temporary trouble

accessing the markets to refinance their outstanding debt, potentially leading to an inability to pay off existing bondholders, including

the Fund. This could negatively affect the Fund’s NAV or overall return.

Below Investment Grade (High Yield or Junk Bond) Instruments Risk.

The Fund’s investments in below investment grade quality

securities and instruments are regarded as having predominantly speculative characteristics with respect to the issuer’s capacity to pay

interest and repay principal in accordance with the terms of the obligations and involve major risk exposure to adverse conditions. Below

investment grade instruments are often issued in connection with a corporate reorganization or restructuring or as part of a merger,

acquisition, takeover or similar event. They are also issued by less established companies seeking to expand. Such issuers are often

highly leveraged and generally less able than more established or less leveraged entities to make scheduled payments of principal and

interest in the event of adverse developments or business conditions. Fixed income instruments rated below investment grade generally

offer a higher current yield than that available from higher grade issues, but typically involve greater risk. These investments are

especially sensitive to adverse changes in general economic conditions, to changes in the financial condition of their issuers and to price

fluctuation in response to changes in interest rates. During periods of economic downturn or rising interest rates, issuers of below

investment grade instruments may experience financial stress that could adversely affect their ability to make payments of principal and

interest on their obligations and increase the possibility of default. The secondary market for high yield instruments may not be as liquid

as the secondary market for more highly rated instruments, a factor that may have an adverse effect on the Fund’s ability to dispose of a

particular security. There are fewer dealers in the market for high yield instruments than for investment grade obligations. The prices

quoted by different dealers may vary significantly, and the spread between the bid and asked price is generally much larger for high

yield instruments than for higher quality instruments. Under continuing adverse market or economic conditions, the secondary market

for high yield instruments could contract further, independent of any specific adverse changes in the condition of a particular issuer, and

these instruments may become illiquid. In addition, adverse publicity and investor perceptions, whether or not based on fundamental

analysis, may also decrease the values and liquidity of below investment grade instruments, especially in a market characterized by a

low volume of trading. Default, or the market’s perception that an issuer is likely to default, could reduce the value and liquidity of

instruments held by the Fund, which could have a material adverse impact on the Fund’s business, financial condition and results of

operations. In addition, default may cause the Fund to incur expenses in seeking recovery of principal and/or interest on its portfolio

holdings. In any reorganization or liquidation proceeding relating to a portfolio company, the Fund may lose its entire investment or may

be required to accept cash or securities or other instruments with a value less than its original investment and/or may be subject to

restrictions on the sale of such securities or instruments. Among the risks inherent in investments in a troubled entity is the fact that it

frequently may be difficult to obtain information as to the true financial condition of such issuer. The Subadvisers' judgment about the

credit quality of an issuer and the relative value of its instruments may prove to be wrong. Investments in below investment grade

instruments may present special tax issues for the Fund, particularly to the extent that the issuers of these instruments default on their

obligations pertaining thereto, and the U.S. federal income tax consequences to the Fund as a holder of such instruments, including

when the Fund may stop reporting interest income or claim a loss on such instruments, may not be clear. Lower rated high yield

instruments generally present the same type of risks as investments in higher rated high yield instruments. However, in most cases,

these risks are of a greater magnitude because of the uncertainties of investing in an issuer undergoing financial distress. In particular,

lower rated high yield instruments entail a higher risk of default. Such instruments present substantial credit risk and default is a real

possibility. Such instruments may be illiquid and the prices at which such instruments may be sold may represent a substantial discount

to what the Subadvisers believe to be the ultimate value of such instruments.

Distressed and Defaulted Obligations Risk.

The Fund may invest in

“

below investment grade

”

securities (commonly referred to as

“

high

yield

”

securities or

“

junk bonds

”

) and obligations of issuers in weak financial condition, experiencing poor operating results, having

substantial capital needs or negative net worth, facing special competitive or product obsolescence problems (including companies

involved in bankruptcy or other reorganization and liquidation proceedings). Below investment grade securities in which the Fund may

invest also include defaulted and partially defaulted loans. Such investments are likely to be particularly risky although they also may

offer the potential for correspondingly high returns. Any one or all of the issuers of the securities in which the Fund may invest may be

unsuccessful or not show any return for a considerable period of time.

Among the risks inherent in investments in troubled entities is the risk that it frequently may be difficult to obtain information as to the

true condition of such issuers. Such investments may also be adversely affected by laws relating to, among other things, fraudulent

transfers and other voidable transfers or payments, lender liability and the bankruptcy court’s power to disallow, reduce, subordinate,

recharacterize debt as equity or disenfranchise particular claims. Such companies’ obligations may be considered speculative, and the

ability of such companies to pay their debts on schedule could be affected by adverse interest rate movements, changes in the general

economic climate, economic factors affecting a particular industry or specific developments within such companies. In addition, there is

no minimum credit standard that is a prerequisite to the Fund’s investments. Obligations in which the Fund invests may be less than

investment grade. The level of analytical sophistication, both financial and legal, necessary for successful investment in companies

experiencing significant business and financial difficulties is unusually high. There is no assurance that value of the assets collateralizing

the Fund’s investments will be sufficient or that prospects for a successful reorganization or similar action will become available. Unless

such loans are most senior, in any reorganization or liquidation proceeding relating to a company in which the Fund invests, the Fund

may lose its entire investment, may be required to accept cash or securities with a value less than its original investment and/or may be

required to accept payment over an extended period of time. Under such circumstances, the returns generated from the Fund’s

investments may not compensate investors adequately for the risks assumed. In addition, under certain circumstances, payments and

distributions may be disgorged if any such payment is later determined to have been a fraudulent conveyance or a preferential payment.

In liquidation (both in and out of bankruptcy) and other forms of corporate reorganization, there exists the risk that the reorganization

either will be unsuccessful (due to, for example, failure to obtain requisite approvals), will be delayed (for example, until various

liabilities, actual or contingent, have been satisfied) or will result in a distribution of cash or a new investment the value of which will be

less than the purchase price to the Fund of the investment in respect to which such distribution was made.

Subprime Risk.

Loans, and debt instruments collateralized by loans acquired by the Fund may be subprime in quality, or may become

subprime in quality. Although there is no specific legal or market definition of

“

subprime,

”

subprime loans are generally understood to

refer to loans made to borrowers that display poor credit histories and other characteristics that correlate with a higher default risk.

Accordingly, subprime loans, and debt instruments secured by such loans, have speculative characteristics and are subject to

heightened risks, including the risk of nonpayment of interest or repayment of principal, and the risks associated with investments in

high yield securities. In addition, these instruments could be subject to increased regulatory scrutiny. The Fund is not restricted by any

particular borrower credit criteria when acquiring loans or debt instruments collateralized by loans.

Inflation

Risk

Globally, inflation and rapid fluctuations in inflation rates have in the past had negative effects on economies and financial

markets, particularly in emerging economies, and may do so in the future. Wages and prices of inputs increase during periods of

inflation, which can negatively impact returns on investments. In an attempt to stabilize inflation, governments may impose wage and

price controls, or otherwise intervene in the economy. Governmental efforts to curb inflation often have negative effects on levels of

economic activity.

In the United States, inflation has accelerated in recent years as a result of global supply chain disruptions, a rise in energy prices,

strong consumer spending, and other factors. Inflationary pressures have increased the costs of labor, energy, and raw materials, and

have adversely affected consumer spending, economic growth, and the operations of companies in the U.S. and globally, and have

resulted in a tightening of monetary policy by the U.S. Federal Reserve. Inflation may continue in the near to medium-term, particularly

in the U.S., with the possibility that monetary policy may tighten further in response. Inflation could become a serious problem in the

future and have an adverse impact on the Fund’s returns.

Derivatives Risk.

The Fund may invest in derivative instruments, such as options contracts, futures contracts, options on futures

contracts, indexed securities, credit linked notes, credit default swaps and other swap agreements for investment, hedging and risk

management purposes.

The Fund’s investments in derivatives may be for hedging, investment or leverage purposes, or to manage interest rates or the duration

of the Fund’s portfolio. Derivative transactions may subject the Fund to increased risk of principal loss due to imperfect correlation

between the values of the derivatives and the underlying securities or unexpected price or interest rate movements. The use of

derivatives may subject the Fund to risks, including, but not limited to:

■

Counterparty Risk.

The risk that the counterparty in a derivative transaction will be unable to honor its financial obligation to the Fund,

or the risk that the reference entity in

credit default swap or similar derivative will not be able to honor its financial obligations. If the

Fund’s counterparty to a derivative transaction experiences a loss of capital, or is perceived to lack adequate capital or access to

capital, it may experience margin calls or other regulatory requirements to increase equity. Under such circumstances, the risk that a

counterparty will be unable to honor its financial obligations may be substantially increased. The counterparty risk for cleared

derivatives is generally lower than for uncleared over-the-counter derivative transactions since generally a clearing organization

becomes substituted for each counterparty to a cleared derivative contract and, in effect, guarantees the parties’ performance under

the contract as each party to a trade looks only to the clearing house for performance of financial obligations. However, there can be

no assurance that the clearing house, or its members, will satisfy its obligations to the Fund.

■

Currency Risk.

The risk that changes in the exchange rate between two currencies will adversely affect the value (in U.S. dollar terms)

of an investment.

■

Leverage Risk.

The Fund may use, among other things, reverse repurchase agreements and/or dollar rolls to add leverage to its

portfolio. The risk associated with certain types of derivative strategies that relatively small market movements may result in large

changes in the value of an investment. Certain investments or trading strategies that involve leverage can result in losses that greatly

exceed the amount originally invested.

■

Liquidity Risk.

The risk that certain derivative positions may be difficult or impossible to close out at the time that the Fund would like

or at the price that the Fund believes the position is currently worth. This risk is heightened to the extent the Fund engages in

over-the-counter derivative transactions, which are generally less liquid than exchange-traded instruments.

■

Correlation Risk.

The risk that changes in the value of a derivative will not match the changes in the value of the portfolio holdings that

are being hedged or of the particular market or security to which the Fund seeks exposure. Furthermore, the ability to successfully

use derivative instruments depend in part on the ability of the Manager and Subadvisers to predict pertinent market movements,

which cannot be assured.

■

Index Risk.

If the derivative is linked to the performance of an index, it will be subject to the risks associated with changes in that

index. If the index changes, the Fund could receive lower interest payments or experience a reduction in the value of the derivative to

below what the Fund paid. Certain indexed derivatives may create leverage, to the extent that they increase or decrease in value at a

rate that is a multiple of the changes in the applicable index.

■

Regulatory Risk.

Derivative contracts, including, without limitation, swaps, currency forwards, and non-deliverable forwards, are

subject to regulation under the Dodd-Frank Wall Street Reform and Consumer Protection Act (

“

Dodd-Frank Act

”

) in the U.S. and

under comparable regimes in Europe, Asia and other non-U.S. jurisdictions. Swaps, non-deliverable forwards and certain other

derivatives traded in the OTC market are subject to variation margin requirements. Implementation of the margining and other

provisions of the Dodd-Frank Act regarding clearing, mandatory trading, reporting and documentation of swaps and other derivatives

have impacted and may continue to impact the costs to the Fund of trading these instruments and, as a result, may affect returns to

investors in the Fund. In addition, the Commodity Futures Trading Commission (the

“

CFTC

”

) subjects advisers to registered

investment companies to regulation by the CFTC if a fund that is advised by the investment adviser either (i) invests, directly or

indirectly, more than a prescribed level of its liquidation value in certain derivatives, or (ii) markets itself as providing investment

exposure to such instruments. CFTC Rule 4.5 permits investment advisers to registered investment companies to claim an exclusion

from the definition of

“

commodity pool operator

”

under the Commodity Exchange Act (

“

CEA

”

) with respect to a fund, provided certain

requirements are met. In order to permit the Manager and Subadvisers to claim this exclusion with respect to the Fund, the Fund will

limit its use of such derivatives (excluding transactions entered into for

“

bona fide hedging purposes,

”

as defined under CFTC

regulations) such that either: (i) the aggregate initial margin and premiums required to establish its derivatives do not exceed 5% of

the liquidation value of the Fund’s portfolio, after taking into account unrealized profits and losses on such positions, or (ii) the

aggregate net notional value of its derivatives does not exceed 100% of the liquidation value of the Fund’s portfolio, after taking into

account unrealized profits and losses on such positions. Additionally, the Fund will not market itself as a

“

commodity pool

”

or a

vehicle for trading such instruments. Accordingly, the Fund is not subject to regulation under the CEA or otherwise regulated by the

CFTC, and the Manager and Subadvisers have claimed an exclusion from the definition of the term

“

commodity pool operator

”

under

the CEA pursuant to Rule 4.5 under the CEA. The Manager and Subadvisers are not, therefore, subject to registration or regulation as

“

commodity pool operator

”

under the CEA in respect of the Fund.

■

Credit Default Swaps Risk

. Credit default swaps involve greater risks than if the Fund had invested in the reference obligation directly.

In addition to general market risks, credit default swaps are subject to liquidity risk and credit risk. A buyer of credit protection also

may lose its investment and recover nothing should no credit event occur. If a credit event were to occur, the value of the reference

obligation received by the seller, coupled with the periodic payments previously received, may be less than the full notional value it

pays to the buyer, resulting in a loss of value to the Fund. Further, in certain circumstances, the buyer can receive the notional value

of a credit default swap only by delivering a physical security to the seller, and is at risk if such deliverable security is unavailable or

illiquid. Such a delivery

“

crunch

”

is a distinct risk of these investments.

■

The credit derivatives market is a rapidly evolving market. As a result, different participants in the credit derivatives markets may have

different practices or interpretations with respect to applicable terms and definitions, and ambiguities concerning such terms or

definitions, may be interpreted or resolved in ways that are adverse to the Fund. Additionally, there may be circumstances and market

conditions (including the possibility of a large number of buyers of credit default swaps being required to deliver the same physical

security in the same time frame) that have not yet been experienced that could have adverse effects on the Fund’s investments.

Leverage Risk.

Although the Fund may utilize leverage, there can be no assurance that the Fund will do so, or that, if utilized, it will be

successful during any period in which it is employed. Leverage is a speculative technique that exposes the Fund to greater risk and

higher costs than if it were not implemented.

The Fund anticipates that any money borrowed from a bank or other financial institution for investment purposes will accrue interest

based on shorter-term interest rates that would be periodically reset. So long as the Fund’s portfolio provides a higher rate of return, net

of expenses, than the interest rate on borrowed money, as reset periodically, the leverage may cause the Fund to receive a higher

current rate of return than if the Fund were not leveraged. If, however, short-term rates rise, the interest rate on borrowed money could

exceed the rate of return on instruments held by the Fund, reducing returns to the Fund and the level of income available for dividends

or distributions made by the Fund. Developments in the credit markets may adversely affect the ability of the Fund to borrow for

investment purposes and may increase the costs of such borrowings, which would also reduce returns to the Fund. There is no

assurance that a leveraging strategy will be successful. The use of leverage to purchase additional investments creates an opportunity for

increased Common Shares dividends, but also creates special risks and considerations for the common shareholders, including:

■

the likelihood of greater volatility of NAV, market price and dividend rate of Common Shares than a comparable fund without leverage;

■

the risk that fluctuations in interest rates on borrowings and short-term debt or in dividend payments on, principal proceeds

distributed to, or redemption of any preferred shares and/or notes or other debt securities that the Fund has issued will reduce the

return to the Fund;

■

magnified interest rate risk, which is the risk that the prices of certain of the portfolio investments will fall (or rise) if market interest

rates for those types of investments rise (or fall). As a result, leverage may cause greater changes in the Fund’s NAV, which could have

a material adverse impact on the Fund’s business, financial condition and results of operations;

■

the effect of leverage in a declining market, which is likely to cause a greater decline in the NAV of the Common Shares than if the

Fund were not leveraged; and

■

leverage may increase expenses (which will be borne entirely by the common shareholders), which may reduce the Fund’s NAV and

the total return to common shareholders.

Leveraging is a speculative technique and there are special risks and costs involved. When leverage is used, the net asset value of the

Common Shares and the yield to Common Shareholders will be more volatile. In addition, interest and other expenses borne by the Fund

with respect to its use of leverage are borne by the Common Shareholders and result in a reduction of the net asset value of the

Common Shares. In addition, because the fees received by the Manager are based on the average daily total managed assets of the

Fund (including any assets attributable to any reverse repurchase agreements, dollar rolls, borrowings and any preferred shares that

may be outstanding, if issued), the Manager has a financial incentive for the Fund to use certain forms of leverage (e.g., reverse

repurchase agreements, dollar rolls, borrowings and preferred shares), which may create a conflict of interest between the Manager, on

the one hand, and the Common Shareholders, on the other hand.

Leverage creates risks for Common Shareholders, including the likelihood of greater volatility of net income, distributions and/or NAV in

relation to market changes, the risk that fluctuations in interest rates on borrowings and short term debt or in the dividend rates on any

preferred shares may affect the return to Common Shareholders and increased operating costs, which may reduce the Fund’s total

return. To the extent the income or capital appreciation derived from investments purchased with funds received from leverage exceeds

the cost of leverage, the Fund’s return will be greater than if leverage had not been used. Conversely, if the income or capital

appreciation from the investments purchased with such funds is not sufficient to cover the cost of leverage, the return of the Fund will

be less than if leverage had not been used, and therefore the amount available for distribution to shareholders as dividends and other

distributions will be reduced. In the latter case, PGIM Investments and/or the Subadvisers in their best judgment nevertheless may

determine to maintain the Fund’s leveraged position if it expects that the benefits to the Fund’s shareholders of maintaining the

leveraged position will outweigh the current reduced return. Capital raised through leverage will be subject to interest costs or dividend

payments that may or may not exceed the income and appreciation on the assets purchased. The Fund also may be required to

maintain minimum average balances in connection with borrowings or to pay a commitment or other fee to maintain a line of credit;

either of these requirements will increase the cost of borrowing over the stated interest rate. The issuance of additional series of

preferred shares involves offering expenses and other costs and may limit the Fund’s freedom to pay dividends on Common Shares or to

engage in other activities. Borrowings and the issuance of a class of preferred shares create an opportunity for greater return per share

of Common Shares, but at the same time such borrowing is a speculative technique in that it will increase the Fund’s exposure to capital

risk. Unless the income and appreciation, if any, on assets acquired with borrowed funds or offering proceeds exceed the cost of

borrowing or issuing additional classes of securities, the use of leverage will diminish the investment performance of the Fund compared

with what it would have been without leverage.

Allocation of Investment Opportunities Risk.

Certain other existing or future funds, investment vehicles and accounts managed by the

Manager and its affiliates and PGIM affiliated proprietary entities invest in securities, properties and other assets in which the Fund may

seek to invest. Allocation of identified investment opportunities among the Fund, the Manager and other PGIM affiliated investment

vehicles presents inherent conflicts of interest where demand exceeds available supply. While the Manager believes it is likely that there

will be some overlap of investment opportunities for the Fund and other PGIM affiliated investment vehicles and PGIM affiliated

proprietary accounts from time to time, the Fund’s stock of investment opportunities may be materially affected by competition from

other PGIM affiliated investment vehicles and PGIM affiliated proprietary entities. Investors should note that the conflicts inherent in

making such allocation decisions will not always be resolved in favor of the Fund. See

“

Management and Advisory Arrangements

”

and

“

Conflicts of Interest.

”

Non-U.S. Investment Risk.

The Fund may invest in non-U.S. investments, which may include investments denominated in U.S. dollars

or in non-U.S. currencies, to the extent permitted by the 1940 Act. Such investments may involve a broad range of economic,

non-U.S. currency and exchange rate, political, legal, tax and financial risks not typically associated with investments in U.S. companies.

Such risks include, but are not limited to, (i) the risk of nationalization or expropriation of assets or confiscatory taxation, (ii) negative

diplomatic developments and social, economic and political uncertainty, including war and revolution, (iii) dependence on exports and

the corresponding importance of international trade, (iv) greater price fluctuations and market volatility, less liquidity and smaller

capitalization of securities markets, (v) currency exchange rate fluctuations, (vi) higher rates of inflation, (vii) controls on, and changes in

controls on, foreign investment and limitations on repatriation of invested capital and on the Fund’s ability to exchange local currencies

for United States dollars, (viii) governmental involvement in and control over the economies and other aspects of the private sector,

(ix) governmental decisions to discontinue support of economic reform programs generally and to impose centrally planned economies,

(x) differences in auditing and financial reporting standards which may result in the unavailability of material information about issuers,

(xi) less extensive regulation of the securities markets, (xii) longer settlement periods for securities transactions and (xiii) less developed

corporate laws regarding fiduciary duties and the protection of investors, and (xiv) taxes that may not be mitigated through refunds or tax

treaties. Prior government approval for non-U.S. investments may be required under certain circumstances in some countries, and the

process of obtaining these approvals may require a significant expenditure of time and resources. Additionally, certain countries depend

heavily on exports to the United States. Accordingly, these countries may be sensitive to fluctuations in U.S. demand and changes in

U.S. market conditions. The foregoing factors may increase transaction costs and adversely impact the value of the Fund’s investments

in non-U.S. portfolio companies.

“

Covenant-Lite

”

Risk.

Some of the debt obligations, loans or other securities in which the Fund may invest or get exposure to may be

“

covenant-lite

”

, which means the loans or obligations contain fewer financial maintenance covenants than other loans or obligations (in

some cases, none) and do not include terms which allow the lender to monitor the borrower’s performance and declare a default if

certain criteria are breached. An investment by the Fund in a covenant-lite loan may potentially hinder the ability to reprice credit risk

associated with the issuer and reduce the ability to restructure a problematic loan and mitigate potential loss. The Fund may also

experience difficulty, expenses or delays in enforcing its rights on its holdings of covenant-lite loans or obligations. As a result of these

risks, the Fund’s exposure to losses may be increased, which could result in an adverse impact on the Fund’s net income and NAV.

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.

U.S. Government and Agency Securities Risk.

U.S. Gov

nment and agency securities are subject to market risk, interest rate risk and

credit risk. Not all U.S. Government securities are insured or guaranteed by the full faith and credit of the U.S. Government; some are

only insured or guaranteed by the issuing agency, which must rely on its own resources to repay the debt. Some agency securities carry

no guarantee whatsoever and the risk of default associated with these securities would be borne by the Fund. The maximum potential

liability of the issuers of some U.S. Government securities held by the Fund may greatly exceed their current resources, including their

legal right to support from the U.S. Treasury. No assurance can be given that the U.S. Government would provide financial support to

any such issuers if it is not obligated to do so by law. It is possible that these issuers will not have the funds to meet their payment

obligations in the future. In addition, the value of U.S. Government securities may be affected by changes in the credit rating of the

U.S. Government.

Privately Issued Mortgage-Related Securities Risk.

Commercial banks, savings and loan institutions, private mortgage insurance

companies, mortgage bankers and other secondary market issuers also create pass-through pools of conventional residential mortgage

loans. Such issuers may be the originators and/or servicers of the underlying mortgage loans as well as the guarantors of the

mortgage-related securities. Pools created by such non-governmental issuers generally offer a higher rate of interest than government

and government-related pools because there are no direct or indirect government or agency guarantees of payments in the former pools.

However, timely payment of interest and principal of these pools may be supported by various forms of insurance or guarantees,

including individual loan, title, pool and hazard insurance and letters of credit, which may be issued by governmental entities or private

insurers. Such insurance and guarantees and the creditworthiness of the issuers thereof will be considered in determining whether a

mortgage-related security meets the Fund’s investment quality standards. There can be no assurance that insurers or guarantors can

meet their obligations under the insurance policies or guarantee arrangements. The Fund may buy mortgage-related securities without

insurance or guarantees if, through an examination of the loan experience and practices of the originators/servicers and poolers, the

Manager determines that the securities meet the Fund’s quality standards. Securities issued by certain private organizations may not be

readily marketable.