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Prudential Investment Portfolios, Inc. – ‘N-CSR’ for 9/30/14

On:  Friday, 11/21/14, at 5:28pm ET   ·   Effective:  11/21/14   ·   For:  9/30/14   ·   Accession #:  1193125-14-422065   ·   File #:  811-07343

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

11/21/14  Prudential Inv Portfolios, Inc.   N-CSR       9/30/14    4:8.1M                                   RR Donnelley/FA
          → Pgim Balanced Fund ⇒ Class A (PIBAX) — Class B (PBFBX) — Class C (PABCX) — Class R (PALRX) — Class Z (PABFX)
          → Pgim Conservative Allocation Fund ⇒ Class A (JDUAX) — Class B (JDABX) — Class C (JDACX) — Class R (JDARX) — Class Z (JDAZX)
          → Pgim Growth Allocation Fund ⇒ Class A (JDAAX) — Class B (JDGBX) — Class C (JDGCX) — Class R (JGARX) — Class Z (JDGZX)
          → Pgim Jennison Focused Value Fund ⇒ Class A (PJIAX) — Class B (PJIBX) — Class C (PJGCX) — Class R (PJORX) — Class R6 (PJOQX) — Class Z (PJGZX)
          → Pgim Jennison Growth Fund ⇒ Class A (PJFAX) — Class B (PJFBX) — Class C (PJFCX) — Class R (PJGRX) — Class Z (PJFZX)
          → Pgim Moderate Allocation Fund ⇒ Class A (JDTAX) — Class B (JDMBX) — Class C (JDMCX) — Class R (JMARX) — Class Z (JDMZX)

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSR       The Prudential Investment Portfolios, Inc.          HTML   5.07M 
 4: EX-99.906CERT  Certifications Pursuant to Section 906           HTML      9K 
 3: EX-99.CERT  Certifications Pursuant to Section 302              HTML     22K 
 2: EX-99.CODE-ETH  Code of Ethics                                  HTML     26K 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Item 1 – Reports to Stockholders –

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

PRUDENTIAL ASSET ALLOCATION FUND

ANNUAL REPORT ^· SEPTEMBER 30, 2014

Fund Type

Balanced/Allocation

Objective

Income and long-term growth of capital

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.

Mutual funds are distributed by Prudential Investment Management Services LLC, a Prudential Financial company. Quantitative Management Associates, LLC (QMA) is a wholly owned subsidiary of Prudential Investment Management, Inc. (PIM). QMA and PIM are registered investment advisers and Prudential Financial companies. ^© 2014 Prudential Financial, Inc. and its related entities. Prudential Investments LLC, Prudential, the Prudential logo, Bring Your Challenges, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

November 14, 2014

Dear Shareholder:

We hope you find the annual report for the Prudential Asset Allocation Fund informative and useful. The report covers performance for the 12-month period that ended September 30, 2014.

Since market conditions change overtime, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.

Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. Keep in mind, however, that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.

Prudential Investments^® is dedicated to helping you solve your toughest investment challenges—whether it’s capital growth, reliable income, or protection from market volatility and other risks. We offer the expertise of Prudential Financial’s affiliated asset managers* that strive to be leaders in a broad range of funds to help you stay on course to the future you envision. They 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.

Thank you for choosing the Prudential Investments family of funds.

Sincerely,

Stuart S. Parker, President

Prudential Asset Allocation Fund

*Most of Prudential Investments’ equity funds are advised by Jennison Associates LLC, Quantitative Management Associates LLC (QMA), or Prudential Real Estate Investors. Prudential Investments’ fixed income and money market funds are advised by Prudential Investment Management, Inc. (PIM) through its Prudential Fixed Income unit. Jennison Associates LLC, QMA, and PIM are registered investment advisers and Prudential Financial companies. Prudential Real Estate Investors is a unit of PIM.

Your Fund’s Performance (Unaudited)

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852.

Growth of a $10,000 Investment

The graph compares a $10,000 investment in the Fund’s Class A shares with a similar investment in the Customized Blend Index and the Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) by portraying the initial account values at the beginning of the 10-year period for Class A shares (September 30, 2004) and the account values at the end of the current fiscal year (September 30, 2014) as measured on a quarterly basis. For purposes of the graph, and unless otherwise indicated, it has been assumed that (a) the maximum applicable front-end sales charge was deducted from the initial $10,000 investment in Class A shares; (b) all recurring fees (including management fees) were deducted; and (c) all dividends and distributions were reinvested. The line graph provides information for Class A shares only. As indicated in the tables provided earlier, performance for Class B, Class C, Class R, and Class Z shares will vary due to the differing charges and expenses applicable to each share class (as indicated in the following paragraphs). Without waiver of fees and/or expense reimbursement, if any, the returns would have been lower.

Past performance does not predict future performance. Total returns and the ending account values in the graphs include changes in share price and reinvestment of dividends and capital gains distributions in a hypothetical investment for the periods shown. The Fund’s total returns do not reflect the deduction of income taxes on an

Your Fund’s Performance (continued)

individual’s investment. Taxes may reduce your actual investment returns on income or gains paid by the Fund or any gains you may realize if you sell your shares.

Source: Prudential Investments LLC and Lipper Inc.

Inception returns are provided for any share class with less than 10 calendar years of returns.

The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.

*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.

Benchmark Definitions

Customized Blend Index

The Customized Blend Index is made up of the S&P 500 Index (50%), the Barclays US Aggregate Bond Index (40%), the Russell 2000 Index (5%), and the Morgan Stanley Capital International Europe, Australasia and Far East Net Dividend (MSCI EAFE ND) Index (5%). The Net Dividend (ND) version of the MSCI EAFE Index reflects the impact of the maximum withholding taxes on reinvested dividends. Each component of the customized blend is an unmanaged index generally considered to represent the performance of its asset class. The Customized Blend Index is intended to provide a theoretical comparison to the Fund’s performance based on the amounts allocated to each class under the Fund’s investment strategies. Customized Blend Index Closest Month-End to Inception cumulative total return is 84.10% for Class R. Customized Blend Index Closest Month-End to Inception average annual total return is 6.46% for Class R.

Barclays US Aggregate Bond Index

The Barclays US Aggregate Bond Index is an unmanaged index of investment-grade securities issued by the US Government and its agencies and by corporations with between one and 10 years remaining to maturity on

the securities. It gives a broad look at how US investment grade bonds have performed. Barclays US Aggregate Bond Index Closest Month-End to Inception cumulative total return is 55.63% for Class R. Barclays U.S. Aggregate Bond Index Closest Month-End to Inception average annual total return is 4.64% for Class R.

S&P 500 Index

The S&P 500 Index is an unmanaged index of 500 stocks of large US public companies. It gives a broad look at how US stock prices have performed. S&P 500 Index Closest Month-End to Inception cumulative total return is 99.52% for Class R. S&P 500 Index Closest Month-End to Inception average annual total return is 7.34% for Class R.

Lipper Mixed-Asset Target Allocation Growth Funds Average

The Lipper Mixed-Asset Target Allocation Growth Funds Average (Lipper Average) represents returns based on the average return of all funds in the Lipper Mixed-Asset Target Allocation Growth Funds category for the periods noted. Funds in the Lipper Average are funds whose primary objective is to conserve principal by maintaining at all times a balanced portfolio of both stocks and bonds. Typically, the stock:bond ratio ranges around 60%:40%. Lipper Average Closest Month-End to Inception cumulative total return is 74.32% for Class R. Lipper Average Closest Month-End to Inception average annual total return is 5.81% for Class R.

Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes. The Since Inception returns for the Index and the Lipper Average are measured from the closest month-end to inception date, and not from the Fund’s actual inception date.

Holdings reflect only long-term equity investments and are subject to change.

Industry weightings reflect only long-term equity investments and are subject to change.

Strategy and Performance Overview

How did the Fund perform?

The Prudential Asset Allocation Fund’s Class A shares returned 13.36% for the 12-month reporting period that ended September 30, 2014. The Fund’s Class A shares outperformed the 11.72% gain of the Customized Blend Index (described on page 4) and the 10.58% gain of the Lipper Mixed-Asset Target Allocation Growth Funds Average.

How did the US stock market perform?

The equity market in the United States returned 19.70% for the period, according to the S&P 500 Index.

How did international stock markets perform?

International equity markets rose 4.25% overall in US dollar terms, as measured by the Morgan Stanley Capital International Europe Australasia and Far East (MSCI-EAFE) Net Dividend Index, which tracks equity markets of economically developed nations other than the United States and Canada.

Strategy and Performance Overview (continued)

How did the US investment-grade bond market perform?

The US investment-grade bond market, as represented by the Barclays US Aggregate Bond Index, appreciated 3.96% during the reporting period.

How did asset allocation decisions affect the Fund’s performance?

Quantitative Management Associates LLC (QMA) determines the Fund’s asset allocation strategy, which had a positive impact on its performance for the reporting period, as the Fund overweighted equities and underweighted fixed income in a period in which equities outperformed fixed income securities by more than 15%.

What impact did the quantitative stock strategy have on the Fund’s performance?

The equity portion of the Fund, which is managed by QMA, outperformed the Customized Blend Index (the Index) by 3.43% during the reporting period.

What impact did the bond market strategy have on the Fund’s performance?

The portion of the Fund invested in bonds, which is managed by Prudential Fixed Income, outperformed the Barclays US Aggregate Bond Index by 1.28% during the reporting period. The strong performance was due mainly to favorable security selection.

Did the Fund use derivatives and how did they affect performance?

The Fund uses derivatives, such as futures contracts on major market indexes and interest rate swaps, to gain exposure to different types of investments, provide liquidity for cash flows, adjust exposure to interest rate risk, or for other purposes intended to help the Fund meet its objective. During the reporting period, exposure to derivatives did not have a material impact on Fund performance.

Fees and Expenses (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on April 1, 2014, at the beginning of the period, and held through the six-month period ended September 30, 2014. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

Actual Expenses

The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of

Prudential Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transactional costs such as sales charges (loads). Therefore, the second line for each share class in the table is useful in comparing ongoing costs only and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 183 days in the six-month period ended September 30, 2014, and divided by the 365 days in the Fund’s fiscal year ended September 30, 2014 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.

Fees and Expenses (continued)

The Fund’s annual expense ratios for the year ended September 30, 2014 are as follows:

Net operating expenses shown above reflect any fee waivers and/or expense reimbursements. Additional information on Fund expenses and any fee waivers and/or expense reimbursements can be found in the “Financial Highlights” tables in this report and in the Notes to the Financial Statements in this report.

Portfolio of Investments

as of September 30, 2014

See Notes to Financial Statements.

Portfolio of Investments

as of September 30, 2014 continued

See Notes to Financial Statements.

See Notes to Financial Statements.

Portfolio of Investments

as of September 30, 2014 continued

See Notes to Financial Statements.

See Notes to Financial Statements.

Portfolio of Investments

as of September 30, 2014 continued