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Prudential Investment Portfolios, Inc. 10 – ‘N-CSR’ for 10/31/15

On:  Wednesday, 12/23/15, at 5:42pm ET   ·   As of:  12/24/15   ·   Effective:  12/24/15   ·   For:  10/31/15   ·   Accession #:  1193125-15-413048   ·   File #:  811-08085

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

12/24/15  Prudential Inv Ports, Inc. 10     N-CSR      10/31/15    4:2.8M                                   RR Donnelley/FA
          → Pgim Jennison Global Equity Income Fund ⇒ Class A (SPQAX) — Class B (JEIBX) — Class C (AGOCX) — Class R (PJERX) — Class R6 (PJIQX) — Class Z (JDEZX)
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Document/Exhibit                   Description                      Pages   Size 

 1: N-CSR       Prudential Investment Portfolios, Inc. 10           HTML   1.58M 
 4: EX-99.906CERT  Certifications Pursuant to Section 906           HTML      6K 
 3: EX-99.CERT  Certifications Pursuant to Section 302              HTML     16K 
 2: EX-99.CODE-ETH  Code of Ethics                                  HTML     25K 

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 JENNISON EQUITY INCOME FUND

ANNUAL REPORT ^· OCTOBER 31, 2015

Objective

Income and capital appreciation

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, member SIPC. Jennison Associates is a registered investment adviser. Both are Prudential Financial companies. ^©2015 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

December 15, 2015

Dear Shareholder:

We hope you find the annual report for the Prudential Jennison Equity Income Fund informative and useful. The report covers performance for the 12-month period that ended October 31, 2015.

Since market conditions change over time, 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 Jennison Equity Income Fund

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.

*Returns for the Lipper Equity Income Funds Index reflect the expenses of the mutual funds included in the Index.

Growth of a $10,000 Investment

The graph compares a $10,000 investment in the Prudential Jennison Equity Income Fund (Class A shares) with a similar investment in the Lipper Equity Income Funds Index and the S&P 500 Index by portraying the initial account values at the beginning of the 10-year period for Class A shares (October 31, 2005) and the account values at the end of the current fiscal year (October 31, 2015) 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

Your Fund’s Performance (continued)

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 above, performance for Class B, Class C, Class Q, 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 Fund’s returns would have been lower.

Past performance does not predict future performance. Total returns and the ending account values in the graph 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 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

Lipper Equity Income Funds Index

Funds in the Lipper Equity Income Funds Index seek relatively high current income and growth of income by investing at least 65% of their portfolios in dividend-paying equity securities. These funds’ gross or net yields

must be at least 125% of the average gross or net yield of the US diversified equity fund universe. The cumulative total returns for the Index measured from the month-end closest to the inception date for Class Q and Class R shares through 10/31/2015 are 61.02% and 70.50% for Class Z shares. The average annual total returns for the Index measured from the month-end closest to the inception date for Class Q and Class R shares through 9/30/15 are 9.08% and 6.75% for Class Z shares.

S&P 500 Index

The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of 502 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed. The cumulative total returns for the Index measured from the month-end closest to the inception date for Class Q and Class R shares through 10/31/2015 are 78.75% and 89.37% for Class Z shares. The average annual total returns for the Index measured from the month-end closest to the inception date for Class Q and Class R shares through 9/30/15 are 11.31% and 8.19% for Class Z shares.

Lipper Equity Income Funds Average

The Lipper Equity Income Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Equity Income Funds category for the periods noted. Funds in the Lipper Average seek relatively high current income and growth of income through investing 65% or more of their portfolios in dividend-paying equity securities. The cumulative total returns for the Lipper Average measured from the month-end closest to the inception date for Class Q and Class R shares through 10/31/2015 are 56.74% and 68.96% for Class Z shares. The average annual total returns for the Lipper Average measured from the month-end closest to the inception date for Class Q and Class R shares through 9/30/15 are 8.42% and 6.56% for Class Z shares.

Investors cannot invest directly in an index or average. The returns for the S&P 500 Index would be lower if it included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average and the Lipper Equity Income Funds Index reflect the deduction of mutual fund operating expenses, but not sales charges or taxes. The Since Inception returns for the Indexes and the Lipper Average are measured from the closest month-end to the inception date for the indicated share class.

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

Strategy and Performance Overview

How did the Fund perform?

The Prudential Jennison Equity Income Fund’s Class A shares returned –1.59% for the 12-month reporting period ended October 31, 2015, underperforming the 0.88% return of the Lipper Equity Income Funds Index, the 0.08% return of the Lipper Equity Income Average, and the 5.21% return of the S&P 500 Index.

What was the market environment like for stocks during the period?

Weak energy prices, a strong US dollar, and slowing growth in China were key influences on the global economic landscape in the period. The US remained the strongest of the major global economies. The Federal Reserve ended its quantitative-easing program in December, signaling confidence in the health of US economic activity and labor market conditions.

Europe struggled, unsuccessfully, to avert Greece’s default even as the country’s new government called for less austerity. Eurozone leaders eventually reached an agreement to start negotiations on a third bailout for Greece. Economic activity on the continent remained anemic but showed signs of improving.

Japan showed little progress, although investors hoped a weaker yen would boost exports.

China’s struggle to drive growth through domestic consumer demand, rather than exports and massive public works programs, continued. Authorities implemented a host of measures designed to loosen monetary and fiscal policies and stimulate consumption. A Chinese market correction in late summer and the ensuing devaluation of the yuan heightened skepticism about the reported strength of economic growth in the world’s second-largest economy and raised concerns that other struggling economies might set off a cycle of devaluations to remain competitive in global export markets.

Brazil fell into recession. A number of other key emerging market countries were hurt by a combination of slower growth and fiscal pressures, which produced a fairly inhospitable investment environment.

These challenges, along with uncertainty about the timing and pace of anticipated monetary tightening in the US, contributed to continued volatility in global financial markets.

Which holdings made the largest positive contributions to the Fund’s return?

The Fund’s leading contributors during the period included tobacco company Reynolds American, consumer discretionary company Starbucks Corporation, and

packaged foods & meats firm Kraft Heinz Company. Other noteworthy contributors during the period were Cisco Systems and Home Depot.

See “Comments on largest holdings” below for discussion of for Reynolds American and Kraft Heinz Company.

Which holdings detracted most from the Fund’s return?

The major overall detractors for the period included oil and gas storage and transportation firm Williams Companies, renewable electricity provider Abengoa Yield plc, along with the company’s parent company, industrials firm Abengoa SA. Other noteworthy detractors stemmed from the information technology sector and included Xerox Corporation and Yahoo! Inc.

Strategy and Performance Overview (continued)

Were there significant changes to the portfolio?

During the reporting period, there were some changes to the portfolio. The Fund scaled back its oil and gas storage and transportation exposure in favor of increasing its exposure in the consumer staples sector. During the period, the Fund also increased its overall real estate investment trust (REIT) holdings while decreasing its exposure to the industrials sector.

The Fund added or exited individual positions based on company fundamentals and the stocks’ risk-reward characteristics. Significant positions established included IT services firm Computer Sciences Corporation, consumer discretionary company McDonald’s, tobacco company Reynolds American, and specialized REIT Digital Realty Trust. Positions in Canadian Pacific Railway, oil and gas storage and transportation firm Targa Resources, and German-based industrials company Siemens AG were eliminated during the period. Additionally, the Fund reduced its positions in AbbVie, Inc., Xerox Corporation, and added to its position in GEO Group.

Did the Fund hold derivatives and did they affect performance?

The Fund’s exposure to derivatives was minimal, and included put and call equity options and structured notes. These holdings had a minimal effect on performance during the period.

Comments on Largest Holdings

Cisco Systems designs, manufactures, and sells Internet protocol (IP)-based networking products and services related to the communications and information technology (IT) industry. The company also provides products and services for transporting data, voice, and video traffic across intranets, extranets, and the Internet.

Computer Sciences Corporation is a global provider of information technology (IT) and professional services and solutions. The Company operates through its three primary business segments: Global Business Services, which is a provider of various technology services, including consulting, applications services, and software; Global Infrastructure Services, which provides services, such as managed and virtual desktop tools, and data center management; and the North American Public Sector, which delivers IT, mission- and operations-related services. The company also offers a variety of enterprise cloud management software and other services through its subsidiary ServiceMesh Inc.

McDonald’s Corporation operates and franchises McDonald’s restaurants. McDonald’s global system comprises both company-owned and franchised restaurants that offer a substantially uniform menu, including hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, wraps, french fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft serve cones, pies, soft drinks, coffee, and McCafe beverages.

Reynolds American is a holding company, which, through its subsidiaries, manufactures and sells cigarettes in the US. Reynolds recently completed its acquisition of Lorillard and is in the process of integrating and realizing cost synergies between the two companies. Together, the company’s wholly owned subsidiaries include R. J. Reynolds Tobacco Company, American Snuff Company, LLC (American Snuff Co.), Lorillard, Inc., Santa Fe Natural Tobacco Company, Inc. (SFNTC), R. J. Reynolds Vapor Company (RJR Vapor), Niconovum USA, Inc., and Niconovum AB.

Kraft Heinz Company is a newly formed food and beverages product company resulting from the merger of Kraft Foods Group, Inc. and H.J. Heinz Co. The newly formed company produces a multitude of food and beverage products and collectively its brands include Kraft, Heinz, ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Maxwell House, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones, and Velveeta.

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 May 1, 2015, at the beginning of the period, and held through the six-month period ended October 31, 2015. 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 184 days in the six-month period ended October 31, 2015, and divided by the 365 days in the Fund’s fiscal year ended October 31, 2015 (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 12-month period ended October 31, 2015, 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 October 31, 2015

See Notes to Financial Statements.

Portfolio of Investments

as of October 31, 2015 continued

See Notes to Financial Statements.

See Notes to Financial Statements.

Portfolio of Investments

as of October 31, 2015 continued

See Notes to Financial Statements.

See Notes to Financial Statements.

Portfolio of Investments

as of October 31, 2015 continued

The following abbreviations are used in the annual report:

144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.

ADR—American Depositary Receipt

CVT—Convertible Security

OTC—Over-the-counter

REITs—Real Estate Investment Trusts

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

Level 1—quoted prices generally in active markets for identical securities.

Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.

Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.

The following is a summary of the inputs used as of October 31, 2015 in valuing such portfolio securities: