PRUDENTIAL INVESTMENTS, A PGIM BUSINESS | MUTUAL FUNDS

PRUDENTIAL REAL ASSETS FUND  DESIGNED FOR TODAY’S AND TOMORROW’S INVESTMENT CHALLENGES • Potential diversification boost • May help reduce portfolio volatility • Hedge against rising interest rates and inflation

DIVERSIFICATION ISN’T EASY ANYMORE Any investment advisor will tell you that one of the best ways to manage risk in a stock portfolio is to spread your money among many different categories—from large to small companies, domestic and international, and growth and value stocks. But traditional asset allocation has been a challenge these days, as many types of stocks are performing in lockstep with each other. As a result, the usual approach to equity diversification is not offering much of an advantage, which means increased risk in your portfolio. Many have diversified with bonds, but interest rates are so low that these investors are not getting much income. And they may lose money when interest rates start increasing, which generally causes bond prices to drop. One solution may be to include an allocation to real assets in your portfolio. Real assets offer real diversification potential and have performed well in rising interest rate environments, while providing a hedge against inflation.

REAL ASSETS MAY HELP SOLVE THE DIVERSIFICATION CHALLENGE

• Traditional

approaches to portfolio diversification haven’t been working.

• Adding

real assets offers real diversification potential while helping to protect against rising interest rates and inflation.

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REAL ASSETS ARE GENERALLY THINGS YOU CAN ACTUALLY SEE Broadly speaking, real assets have actual physical properties, such as land or commodities. Real assets mutual funds may include investments in one or more of the following: Real assets



Investment examples

Potential diversification advantage

Real Estate

Domestic and international industrial facilities, office buildings, retail malls, and apartments

The ability to modify rent and leasing terms tends to make real estate a good inflation hedge. Underlying property values also tend to rise with inflation.

Commodities

Energy, agriculture, and metals

Performance is not tied to stocks and bonds. Also, commodity prices rise with demand and high inflation.

Natural Resources

Oil and gas exploration and mining companies

May benefit from the earnings growth associated with that of natural resources companies.

Gold

Gold-related securities and gold mining companies

Relative safety during periods of economic uncertainty and high market volatility, as well as an inflation hedge.

Utilities/Infrastructure

Utilities, power generation plants, oil and gas pipelines, wireless towers, and telecom facilities

This sector is benefiting from rapidly increasing worldwide demand and has pricing power.

U.S. TIPS

Treasury inflation-protected securities (TIPS) are securities issued by the U.S. Treasury in which the principal increases with inflation and decreases with deflation, as measured by the Consumer Price Index.

While TIPS don’t have physical properties, they are often included in real assets portfolios for their ability to hedge against inflation. In addition, they may offer relative stability during volatile markets.

Master Limited Partnerships

Businesses that engage in the transportation, storage, processing, refining, marketing, exploration, production, and mining of minerals or natural resources.

Low correlation to stocks and bonds. Benefiting from rapidly increasing demand for energy and natural resources.

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REAL ASSETS FOR TODAY’S CHALLENGES For diversification potential Successful diversification depends on building a portfolio of asset classes that offer low correlation, meaning that they do not move in lockstep with one another. With their generally low correlation to traditional asset classes, real assets may offer a rare quality in today’s market—the potential to add real diversification to a stock and bond portfolio. For example, investments in gold and U.S. TIPS can help reduce portfolio volatility during severe market declines given their low correlation to stocks. A correlation of +1 means investments perform similarly; a correlation of –1 means they move in opposite directions. Portfolios with low or negatively correlated assets tend to be less volatile and have lower risk.

Real assets have a low to moderate correlation to U.S. STOCKS

Most real assets have a VERY low correlation to BONDS

Correlation to S&P 500 Index

Correlation to Bloomberg Barclays U.S. Aggregate Bond Index

.77

.83

.50

.24

.24

.25

.74

.75

Natural Resources

U.S. Real Estate

.85

.52

.32 .17 .06

0 –.09

–.07

Commodities MLPs

Natural Resources

U.S. Real Estate

Global Infrastructure

Int’l Real Estate

Gold

U.S. TIPS

Gold

U.S. Commodities MLPs TIPS

Int’l Utilities/ Real Infrastructure Estate

Source: Calculated by Prudential Investments LLC using data presented in Morningstar software products. All rights reserved. Used with permission. Time period: 1/1/2005 to 12/31/2015. Past performance does not guarantee future results. In this chart, real assets are represented by these indexes: S&P GSCI® Index (commodities), Lipper Global Natural Resources Funds Index (natural resources), S&P Global Infrastructure Index (infrastructure), FTSE NAREIT U.S. REIT Index (U.S. real estate), S&P Developed ex-U.S. Property Index (international real estate), London Fix Gold Index (gold), Bloomberg Barclays U.S. TIPS Index (U.S. TIPS), and Alerian MLP Index (MLPs). Stocks are represented by the S&P 500 Index. Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index. The indexes used to represent real assets are for illustrative purposes only. All indexes are unmanaged. An investment cannot be made in an index. See index definitions on page 11.

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For potential risk/return boost Adding a real assets allocation to a traditional stock and bond portfolio would have helped improve the portfolio’s risk-adjusted returns over the last 10 years, a period marked by low interest rates and low inflation. If interest rates and inflation start increasing, as many believe they will, real assets may help improve portfolio performance even more than they have in the past.

Adding real assets to a portfolio may help improve risk-adjusted returns

10-Year Annual Return (%)

7.5 7.1

40% Stocks/40% Bonds/20% Real Assets 6.7

S&P 500

6.3 5.9

60/40 Stock/Bond Split 5.5

0

7.5

15.0

22.5

30.0

10-Year Standard Deviation (%) Source: Calculated by Prudential Investments LLC using data presented in Morningstar software products. All rights reserved. Used with permission. As of 12/31/2015. Past performance does not guarantee future results. Risk is measured by standard deviation, which indicates the volatility of an investment. The higher the standard deviation, the riskier the investment. Real assets and stock indexes are an equal allocation (rebalanced annually) of these indexes: S&P GSCI Index (commodities), Lipper Global Natural Resources Funds Index (natural resources), S&P Global Infrastructure Index (infrastructure), FTSE NAREIT U.S. REIT Index (U.S. real estate), S&P Developed ex-U.S. Property Index (international real estate), London Fix Gold Index (gold), Bloomberg Barclays U.S. TIPS Index (U.S. TIPS), and Alerian MLP Index (MLPs). Stocks are represented by the S&P 500 Index. Bonds are represented by the Bloomberg Barclays U.S. Aggregate Bond Index. All indexes are unmanaged. An investment cannot be made in an index. See index definitions on page 11.



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REAL ASSETS FOR TOMORROW’S CHALLENGES For strength in rising interest rate environments If interest rates rise, bond prices generally will decrease and investors who have a large fixed income allocation in their portfolios could lose money. When interest rates have risen in the past, real assets have outperformed stocks and bonds, delivering strong returns, even after adjusting for inflation.

Real assets can provide better returns in rising rate periods Average Annual Real Returns (%)

7.1%

–1.7% Real Assets Indexes

BBG Barclays U.S. Aggregate Bond Index

Source: Calculated by Prudential Investments LLC using data presented in Morningstar software products. All rights reserved. Used with permission. Source: Yahoo, as of 12/31/2014. Returns represent the average return of each index dating back to October 2002 (common inception for all real asset indexes) in the 13 periods where the 10-year Treasury rose 50 bps or more. The indexes used to represent real assets are for illustrative purposes only; they are not meant to represent the Prudential Real Assets Fund. Average annual index returns do not include the effects of sales charges or operating expenses. If they had, returns would have been lower. Past performance does not guarantee future results. The decision to use a 50+ bps threshold for significant rising rate periods was done so that an investor could see multiple instances of such periods to better assess how this asset class performs during these types of environments.

In addition, real assets may provide better returns over bonds in rising rate periods. In fact, in the 13 periods where the 10-year Treasury rose 50 bps or more (going back to 2002), real assets outperformed bonds in all 13 periods by an average return of 8.9%.

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For periods of high inflation Achieving your long-term investment goals depends in part on how well your portfolio handles high inflation. During periods of higher inflation, real assets have outperformed stocks and bonds. Going back to 12/2001, when inflation has been above average,** real assets’ 1-year total returns have outperformed: •  Stocks 86% of the time by an average of 11.9% (68 out of 79 periods). •  Bonds 84% of the time by an average of 16.9% (66 out of 79 periods).

Average Annual Return (%)

Average 1-year total return during periods of above-average inflation**

Diversified Portfolio of 8 Real Asset Classes vs. Stocks and Bonds

Individual Real Asset Classes 25.5 20.8

18.3

Real Assets Portfolio+

7.2

8.5

5.2

Stocks (60%) Bonds (60%) Portfolio+

Stocks

Bonds

19.4

19.2

18.9

18.1

17.0 8.0

Commodities

Global Infrastructure

MLPs

Gold

Natural Resources Stock

U.S. Real Estate

TIPS

Int'l Real Estate

Source: Calculated by Prudential Investments LLC using data presented in Morningstar software products. All rights reserved. Used with permission. The indexes used to represent real assets are for illustrative purposes only; they are not meant to represent the Prudential Real Assets Fund. Average annual index returns do not include the effects of sales charges or operating expenses. Past performance is no guarantee of future results. Real Assets Portfolio is represented by an equal allocation (rebalanced annually) of these indexes: S&P GSCI® Index (commodities), Lipper Global Natural Resources Funds Index (natural resources), S&P Global Infrastructure Index (infrastructure), FTSE NAREIT All Equity REITs Index (U.S. real estate), S&P Developed ex-U.S. Property Index (international real estate), London Fix Gold Index (gold), Alerian MLP Index (master limited partnerships), Bloomberg Barclays U.S. TIPS Index (U.S. TIPS), S&P 500 Index (stocks), and Bloomberg Barclays Aggregate Bond Index (bonds). Stock / Bond Portfolio is represented by a 60% allocation to the S&P 500 Index (stocks) and 40% allocation to the Bloomberg Barclays Aggregate Bond Index (bonds), rebalanced annually. Inflation is represented by the Consumer Price Index. All indexes are unmanaged. An investment cannot be made in an index. See index definitions on page 11. **Average 1-year inflation rate from 12/2001 to 12/2015: 2.2%. Average 1-year total returns from 12/2001 to 12/2015 for all periods: Real Assets (8.65%), Stock/Bonds (5.97%), Stocks (6.35%), Bonds (4.65%), Commodities (–1.94%), Global Infrastructure (9.82%), Gold (10.04%), Int’l Real Estate (9.87%), MLPs (10.52%), Natural Resources Stocks (6.83%), TIPS (5.22%), and U.S. Real Estate (11.07%).

+



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PRUDENTIAL REAL ASSETS FUND Features a distinct asset allocation approach Since it takes time and expertise to understand and invest in these specialized sectors, investors often turn to mutual funds for their real assets allocation. The Prudential Real Assets Fund offers deep management experience and a dynamic approach to asset allocation. Unlike some real assets funds that base allocations on the expected rate of inflation, the Prudential Real Assets Fund’s proprietary asset allocation process makes tactical allocations based primarily on current marketplace risk tolerance. Here’s why: Real assets perform differently depending on marketplace risk tolerance

Post-tech bubble: higher risk tolerance (June 2004–December 2006)

Average Annual Returns (%)

24.6%

13.9% 11.6%

Real estate and commodities tend to perform well when investors are willing to take on risk …

3.8% Gold

TIPS

Real Estate

Commodities

Post-financial crisis: lower risk tolerance (January 2008–March 2009)

Average Annual Returns (%)

29.3%

2.4% Gold

TIPS –10.4% Commodities

… but gold and TIPS tend to outperform when risk tolerance is low. The Prudential Real Assets Fund can adjust to these changes in risk appetites.

–50.1% Real Estate Source: Calculated by Prudential Investments LLC using data presented in Morningstar software products. All rights reserved. Used with permission. Past performance does not guarantee future results. The four real assets indexes used in this chart illustrate dramatic changes in performance during different investment periods, and are represented by: S&P GSCI Index (commodities), FTSE NAREIT Equity REITs Index (real estate), London Fix Gold Index (gold), and Bloomberg Barclays U.S. TIPS Index (TIPS). All indexes are unmanaged. An investment cannot be made in an index. See index definitions on page 11.

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How diversification can provide less downside risk The Prudential Real Assets Fund’s asset allocation manager, QMA, tactically adjusts the portfolio weights based on price momentum, volatility, and correlation of each asset class to each other. This approach is intended to help cushion the fund’s performance during times of high volatility within the market. As seen below, investing in a diversified real assets portfolio has historically provided better downside protection over individual real asset classes.

0 –10 –20

–9.2 –14.7

–14.9

–16.3

–17.7

–19.2

–30 –40

–41.5

–41.8

Gold

MLPs

–50 –60

U.S. TIPS Prudential Global S&P 500 Real Assets Infrastructure Index Class Z

U.S. REITs

International REITs

–43.1 –55.1 Natural Commodities Resources Stocks

Source: Calculated by Prudential Investments LLC using data presented in Morningstar software products. All rights reserved. Used with permission. Time period: 1/1/2011 to 12/31/2015. Portfolio of 60% stocks, 40% bonds is represented by S&P 500 Index and Bloomberg Barclays U.S. Aggregate Bond Index. Past performance does not guarantee future results. Average annual returns do not include sales charges. Indexes are unmanaged. An investment cannot be made in an index. See index definitions on page 11. QMA is the primary business name of Quantitative Management Associates LLC.

CUMULATIVE RETURNS

AVERAGE ANNUAL TOTAL RETURNS

Performance as of 9/30/2016

YTD

1-Year

3-Year

Total Returns (Class Z without sales charges)

8.55%

7.11%

1.16%

SEC Standardized Returns (Class Z with sales charges)

N/A

7.11

1.16

5-Year

Since Inception

Inception Date

2.56%

1.62%

12/30/2010

2.56

1.62

12/30/2010

PRUDENTIAL REAL ASSETS FUND SHARE CLASS/NASDAQ

Past performance does not guarantee future results, and current performance may be lower or higher than the past performance data quoted. The investment return and principal value will fluctuate, and shares, when sold, may be worth more or less than the original cost. For the most recent month-end performance, visit our website at prudentialfunds.com. Gross operating expense: Class Z, 1.73%. Net operating expense: Class Z, 0.94%, after contractual reduction through 2/28/2017. Class Z shares are available to institutional investors through certain retirement, mutual fund wrap, and asset allocation programs, and to institutions at an investment minimum of $5,000,000. Performance by share class may vary. Other share classes, which contain either a sales load or a contingent deferred sales charge, are also available. These expenses could lower total fund return. Please see the prospectus for additional information about fees, expenses, and investor eligibility requirements.

A: PUDAX C: PUDCX Q: PUDQX Z: PUDZX

Source: Prudential Investment Management, Inc. (PIM). Total return describes the return to the investor after net operating expenses but before any sales charges are imposed. SEC standardized return describes the return to the investor after net operating expenses and maximum sales charges are imposed. All returns assume share price changes as well as the compounding effect of reinvested dividends and capital gains. Returns may reflect fee waivers and/or expense reimbursements. Without such, returns would be lower. Performance by share class may vary.



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SECTOR-SPECIFIC SEGMENTS LED BY ASSET CLASS SPECIALISTS The Fund’s asset allocation decisions are led by QMA, a manager of asset allocation strategies since 1975. QMA manages $112 billion (as of 6/30/16), about half in asset allocation strategies, including those utilizing real assets. Experienced teams of managers and analysts oversee and specialize in the Fund’s underlying investments, and they also manage these disciplines for major corporations, foundations, and pension funds worldwide.

Infrastructure/Utility (0% to 40%)*

Portfolio allocations as of 9/30/2016

Natural Resources (0% to 40%)* 10.31%

MLPs (0% to 20%)* All three are managed by Jennison Associates. Leading active equity manager with specialized experience in energy, metals, utility, and mining companies.

Global

18.13%

Both are managed by Prudential Real Estate Investors. Global real estate investor with a presence in 14 countries; deep experience in both private and public real estate markets.

6.02% 4.87% 13.93%

8.76%

Gold/Defensive (0% to 40%)* Managed by QMA. The asset allocation team uses quantitative techniques developed as a result of its extensive experience managing traditional and alternative asset classes.

Real Estate (0% to 50%)* U.S.

37.09%

Commodities (0% to 50%)* Managed by CoreCommodity Management, LLC, a deeply experienced 25-member commodity investment team that is supported by a robust technology platform.

Fixed Income (0% to 60%)* Managed by Prudential Fixed Income. Among the largest and most experienced fixed income managers; focused on extensive credit research and a risk-managed approach. Fixed income sleeve composition as of 9/30/2016: U.S. TIPS Bonds 30.1%, Prudential Short Duration High Yield Income Fund 3.0%, Prudential Floating Rate Income Fund 0.2%.

The Fund’s asset allocation is led by QMA, which currently manages $112 billion as of 6/30/2016, approximately half of which is in asset allocation strategies. QMA has been managing asset allocation strategies since 1975.

*Prospectus allocation range. Allocations are subject to change.

Ask your financial professional The knowledge and experience of a financial professional can be a valuable advantage. Your financial professional can help you determine whether an investment is the right choice for you, depending on your goals, investment time horizon, tolerance for risk, and existing investments. He or she will give you the guidance you need to decide if the Prudential Real Assets Fund is a suitable choice for you. QMA is the primary business name of Quantitative Management Associates LLC.

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The Fund is exposed to the same types of risks as the underlying funds, securities, and financial instruments in which it invests. These risks include: during periods of deflation or no inflation, the Fund may underperform broad market measures and lose value; non-U.S. and emerging market securities are subject to greater volatility and price declines; real estate poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit, and interest rate fluctuations; commodities and commoditylinked notes may be speculative and more volatile than investments in more traditional equity and debt securities, which may be subject to counterparty risk, volatility risk, and leverage; the Fund may invest in a wholly owned Cayman subsidiary, and changes in the laws of the Cayman Islands could result in the inability of the Fund to effect its desired commodity investment strategy; and derivative securities may carry market, credit, and liquidity risks. Treasury inflation-protected securities (TIPS) are inflation-index bonds that may experience greater losses than other fixed income securities with similar durations; fixed income investments are subject to interest rate risk, credit risk, and illiquidity risk; some, but not all, of the U.S. government securities in which the Fund invests are backed by the full faith and credit of the U.S. government, meaning that payment of interest and principal is guaranteed, but yield and market value are not; the Fund’s manager also serves as the manager of the underlying funds, and a conflict of interest could affect how the manager and subadvisors fulfill their fiduciary duties to the Fund and the underlying funds; short sales involve costs and the risk of potentially unlimited losses; and leveraging techniques may magnify losses. Asset allocation and diversification do not assure a profit or protect against loss in declining markets. Real estate investment trusts (REITs) may not be suitable for all investors. There is no guarantee a REIT will pay distributions given the inherent risks associated with the market. A REIT may fail to qualify as a REIT as defined in the tax code, which could affect operations and negatively impact the ability to make distributions. There is no guarantee a REIT’s investment objectives will be achieved. MLPs and MLP-related investments are subject to complicated and in some cases unsettled accounting, tax, and valuation issues, as well as risks related to limited control and limited rights to vote, potential conflicts of interest, cash flow, dilution, and limited liquidity and risks related to the general partner’s right to force sales at undesirable times or prices. MLP risks relating to their complex tax structure include losing their tax status as a partnership, resulting in a reduction in the value of the MLP investment and lower income to the fund. The Fund is deemed a commodity pool and compliance with certain commodity pool regulations may cause the Fund’s expenses to increase. The nature to which regulations of commodity pools may affect the fund are uncertain. The risks associated with the Fund are more fully explained in the prospectus and summary prospectus. These risks may result in greater share price volatility. There is no guarantee the Fund’s objective will be achieved.

INDEX DEFINITIONS Alerian MLP Index is an index composite of the 50 most prominent energy master limited partnerships (MLPs) that provides investors with an unbiased, comprehensive benchmark for this emerging asset class. The index is calculated using a float-adjusted, capitalization-weighted methodology. Bloomberg Barclays U.S. Aggregate Bond Index covers the U.S.-dollardenominated, investment-grade, fixed rate, taxable bond market of Securities and Exchange Commission (SEC)-registered securities. Bloomberg Barclays U.S. Aggregate Government—Long Index is a component of the Bloomberg Barclays U.S. Aggregate Bond Index. It tracks government bond securities with a maturity of 10 years or more. Bloomberg Barclays U.S. TIPS Index includes all publicly issued, U.S. Treasury inflation-protected securities that have at least one year remaining to maturity, are rated investment grade, and have $250 million or more of outstanding face value. Consumer Price Index is a weighted average of prices of consumer goods and services. FTSE NAREIT Equity REITs Index measures the performance of all real estate investment trusts listed on the New York Stock Exchange, the NASDAQ National Market, and the American Stock Exchange. Lipper Global Natural Resources Funds Index includes funds that invest primarily in the equity securities of domestic and foreign companies engaged in natural resources. London Fix Gold Index measures the price of gold and is fixed twice daily in London by the five members of the London gold pool, all members of the London Bullion Market Association. S&P 1500 Utilities Index is composed of companies in the utilities sector as determined by S&P. S&P 500 Index is a weighted index of 500 U.S. stocks providing a broad indicator of price movement. S&P Developed ex-U.S. Property Index measures the investable universe of publicly traded real estate companies domiciled in developed countries outside of the United States. S&P GSCI Index is a world-production-weighted index composed of 24 commodity futures contracts. S&P Global Infrastructure Index consists of 75 companies from around the world that represent the listed infrastructure universe. To create diversified exposure across the global listed infrastructure market, the index has balanced weights across three distinct infrastructure clusters: utilities, transportation, and energy. All indexes are unmanaged. An investment may not be made directly in an index.

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ABOUT PRUDENTIAL INVESTMENTS

Prudential Investments® strives to be a leader in a broad range of investments to help you stay on course to the future you envision. Our investment professionals also manage money for major corporations and pension funds around the world, which means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors. We are part of Prudential Financial, a company America has been bringing its challenges to for 140 years. Bring us yours.

FOR MORE INFORMATION, contact your financial professional or visit our website at prudentialfunds.com.

Consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and summary prospectus. Read them carefully before investing. Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company, member SIPC. Jennison Associates and PGIM, Inc. (PGIM) are registered investment advisors and Prudential Financial companies. QMA is the primary business name of Quantitative Management Associates LLC, a wholly owned subsidiary of PGIM. Prudential Fixed Income and PGIM Real Estate are units of PGIM. © 2016 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, PGIM Real Estate, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide. MUTUAL FUNDS • Are not insured by the FDIC or any federal government agency • May lose value • Are not a deposit of or guaranteed by any bank or any bank affiliate 0213026-00022-00 PI3140 Expiration: 01/31/2017