Morningstar Advisor - August/September 2012 - (Page 17)

Prudential investments >> mutual Funds a few of our brightest stars. Help investors build portfolios that are ready for just about any market challenge, with morningstar 4- and 5-star rated funds from Prudential investments. morningstar Overall rating™ for Class Z shares as of 4/30/2012. morningstar measures risk-adjusted returns. the overall rating is a weighted average based on a fund’s 3-, 5-, and 10-year star rating. Prudential short-term CorPorate bond fund, inC. (PifZX) among 347 short-term Bond funds. the 3-, 5-, and 10-year ratings are 4 stars out of 347 funds, 5 stars out of 324 funds, and 5 stars out of 186 funds, respectively. Prudential Jennison eQuitY inCome fund (JdeZX) among 1,096 large value funds. the 3-, 5-, and 10-year ratings are 5 stars out of 1,096 funds, 5 stars out of 977 funds, and 4 stars out of 571 funds, respectively. Prudential total return bond fund, inC. (PdbZX) among 1,006 intermediate-term Bond funds. the 3-, 5-, and 10-year ratings are 5 stars out of 1,006 funds, 5 stars out of 865 funds, and 5 stars out of 589 funds, respectively. Prudential global real estate fund (PurZX) among 152 Global real estate funds. the 3-, 5-, and 10-year ratings are 4 stars out of 152 funds, 4 stars out of 110 funds, and 5 stars out of 24 funds, respectively. among 502 High Yield Bond funds. the 3-, 5-, and 10-year ratings are 4 stars out of 502 funds, 5 stars out of 444 funds, and 4 stars out of 301 funds, respectively. Prudential high-Yield fund (PhYZX) Prudential Jennison natural resourCes fund (PnrZX) among 124 natural resources funds. the 3-, 5-, and 10-year ratings are 3 stars out of 124 funds, 3 stars out of 88 funds, and 4 stars out of 38 funds, respectively. star ratings shown are for Class Z shares, which are available to individual investors through certain retirement and wrap fee programs, and to institutions at an investment minimum of $10,000,000. Performance by share class may vary. in addition to the ones shown above, other classes, which contain either a sales load or a contingent deferred sales charge, are also available. these expenses will generally lower total fund return. Please see the prospectus for additional information about fees, expenses and investor eligibility requirements. To learn more about our complete lineup of Morningstar 4- and 5-star rated funds, call the Prudential Investments sales desk, or visit us online. 800-257-3893 prudentialfunds.com/stars Consider a fund’s investment objectives, risks, charges, and expenses carefully before investing. The prospectus and the summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and the summary prospectus. Read them carefully before investing. Only eligible investors, including various institutional investors and investors in certain mutual fund wrap or asset allocation programs, may purchase Class Z shares. See the prospectus for eligibility requirements. the risks associated with investing in these funds include but are not limited to: derivative securities, which may carry market, credit, and liquidity risks (PiFZX, PdBZX, PHYZX, JdeZX, PurZX, PnrZX); short sales, which involve costs and the risk of potentially unlimited losses (PiFZX, PdBZX, PHYZX, JdeZX, PnrZX); leveraging, which may magnify losses (PiFZX, PdBZX, PHYZX); high yield (“junk”) bonds, which are subject to greater market risks (PiFZX, PdBZX, PHYZX); foreign securities, which are subject to currency fluctuation and political uncertainty (PdBZX, JdeZX, PurZX, PnrZX); real estate, which poses certain risks related to overall and specific economic conditions as well as risks related to individual property, credit and interest-rate fluctuations (PurZX); and mortgage-backed securities, which are subject to prepayment and extension risks (PiFZX, PdBZX). sector funds and specialty funds may not be suitable for all investors (PnrZX, PurZX). such funds are non-diversified, so a loss resulting from a particular security will have greater impact on the Fund’s return. fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise (PiFZX, PdBZX, PHYZX). the risks associated with each fund are explained more fully in each fund’s respective prospectus. there is no guarantee a Fund’s objectives will be achieved. some morningstar ratings may not be customarily based on adjusted historical returns. if so, an investment’s independent morningstar rating metric is compared against the retail mutual fund universe breakpoints to determine its hypothetical rating for certain time periods. For each fund with a 3-year history, morningstar calculates a morningstar rating based on a morningstar risk-adjusted return measure that accounts for variation in a fund’s monthly performance, including the effects of sales charges, placing more emphasis on downward variations and rewarding consistent performance. the top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. the Funds were rated against u.s.-domiciled funds. Other share classes may have different performance characteristics. Past performance does not guarantee future results. © 2012 morningstar, inc. all rights reserved. the information contained herein (1) is proprietary to morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. neither morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. mutual funds are distributed by Prudential investment management services llC, a Prudential Financial company, member siPC. Prudential investments, Prudential, Jennison associates, Jennison, the Prudential logo, the rock symbol and Bring Your Challenges are service marks of Prudential Financial, inc., and its related entities, registered in many jurisdictions worldwide. 0222013-00003-00 http://www.prudentialfunds.com/stars http://www.prudentialfunds.com/stars

Table of Contents for the Digital Edition of Morningstar Advisor - August/September 2012

Morningstar Advisor - August/September 2012
Contents
Contributors
Letter From the Editor
How Much of the Behavior Gap Is Your Fault?
What’s Your View of the Muni-Bond Market?
A Balanced Life
How to Get to Know EMMA
A Strong, Robust Fund Business
Dividend Investing Abroad
Four Picks for the Present
Investment Briefs
Fund Expenses Through the Decades
Autos on Comeback Track
Lessons From the Muni-Bond Rebound
Municipal-Bond Landscape Shifts
Municipal Bonds 101
A Tale of Two Cities
Unraveling the Mysteries of Money
Small Companies Mean the World to Him
The Chinese Art Market and the Origin of Bubbles
The Myth of the Dumb Investor
Stocks That Can Stand the Heat
Our Favorite Mutual Funds
50 Most Popular ETFs
Undervalued Stocks With Wide Moats
The War on Savers

Morningstar Advisor - August/September 2012