SEMI ANNUAL REPORT June 30, 1994
Prudential
MoneyMart
Assets
(LOGO)
<PAGE>
LETTER TO SHAREHOLDERS
July 15, 1994
Dear Shareholder:
Moving from last to first in the total return race during the first
half of 1994, money market investors enjoyed steadily rising yields
as the Federal Reserve moved to slow burgeoning U.S.
economic growth. Inflation remains moderate and growth has tapered
off from its high levels of late 1993, but investors sense that price
levels might rise, and they are demanding higher interest rates to
compensate for this risk. In this environment, Prudential MoneyMart
Assets produced positive total returns and healthy yields.
<TABLE>
FUND FACTS
As of June 30, 1994
<CAPTION>
7-Day Net Asset Weighted Total Net
Current Yield Value Avg. Maturity Assets
<S> <C> <C> <C> <C>
MoneyMart Assets 3.70% $1.00 37 days $6.8 billion
IBC Donoghue's Money
Fund Average* 3.64% $1.00 43 days N/A
</TABLE>
Note: Past performance is no guarantee of future results. An investment in
the Fund is neither insured nor guaranteed by the U.S. government and there
can be no assurance that the Fund will be able to maintain a stable net
asset value.
*This is the average 7-day current yield, NAV and WAM of 675 funds
in Donoghue's all taxable money fund category.
Fund Overview
The Prudential MoneyMart Assets Fund seeks high
current income consistent with the preservation of principal and
liquidity. The Fund is a diversified portfolio of high quality,
U.S. dollar-denominated money market securities issued by the U.S.
government and its agencies, major corporations and
commercial banks of the U.S. and foreign countries. Maturities can
range from one day to a maximum of 13 months. We typically purchase
only securities rated in the highest categories by at least two major
rating agencies, or, if unrated, deemed to
be of equivalent quality by our credit research staff.
-1-
<PAGE>
The Fed Acts
The Federal Reserve moved swiftly and surely this year to counteract
inflationary fears by raising its benchmark Federal Funds rate (the
overnight interbank lending rate) to 4.25% at the end of June from
3.0% at the beginning of 1994, thus ending the Fed's longest period
of accommodative monetary policy in recent memory. The central bank
was responding to rising commodities prices and signs of unrestrained
growth in the economy--conditions that usually lead to higher producer
prices and consumer costs.
"In this environment, we expect short-term rates to climb moderately
higher through the rest of the year."
A Word About Yield
While the three-month Treasury bill's yield and the Fed Funds rate rose
125 basis points in the first half of 1994, the Fund's yield was
up about 90 basis points. The Fund will typically lag changes in
short-term interest rates because we generally hold securities to
maturity. However, as old, lower-coupon instruments mature, the
portfolio's yield should continue to rise as we
purchase those with higher coupons. The variable rate securities
we purchased over the past six months helped limit this lag, because
the portfolio's yield drifted upward as these securities adjusted
to higher money market interest rates.
Carefully Managed Maturity
For most of 1994, we maintained the Fund's maturity at a lower level
than the IBC Donoghue money fund average. In a rising rate environment,
this strategy allows the Fund to take advantage of higher interest
rates sooner, as old securities mature and are replaced by new purchases
with higher yields. We departed from this strategy when we believed the
credit market had overreacted to the prospect of higher short-term interest
rates. Currently the Fund is again maintaining a short-maturity posture
in anticipation of additional Fed-engineered rate hikes.
Stronger Growth, Higher Rates
After slowly and deliberately increasing rates month by month, the Fed
has briefly paused, and we believe it will now want to see what effects
its efforts have on the economy. Still, incipient signs of inflation
in commodities prices, as well as low unemployment levels and hints of
upward pressure on
-2-
<PAGE>
wages may continue to concern the central bank--and the
fixed-income markets. Inflationary expectations should remain under
control, however, as long as the ever-vigilant Fed indicates it will
move swiftly if price growth should inch towards 4.0%. In this
environment, we expect short-term rates to climb moderately higher
through the rest of the year.
As always, it is a pleasure to have you as a shareholder of the
Prudential MoneyMart Assets and to take the opportunity to report
our activities to you.
Sincerely,
Lawrence C. McQuade
President
Joseph M. Tully
Portfolio Manager
-3-
<PAGE>
PRUDENTIAL MONEYMART ASSETS Portfolio of Investments
June 30, 1994 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
BANK NOTES--10.6%
Bank of New York
$103,000 4.35%, 8/4/94............. $ 102,997,594
First National Bank of
Chicago
30,000 4.60%, 7/18/94............ 30,000,000
138,000 4.61%, 7/18/94............ 138,000,000
NationsBank of North
Carolina, NA
133,000 4.27%, 7/11/94............ 133,000,000
PNC Bank, Kentucky
45,000 3.75%, 9/1/94............. 44,913,931
PNC Bank, Ohio, NA
36,000 3.50%, 1/31/95............ 35,973,168
Republic National Bank of
New York
193,000 4.30%, 3/8/95............. 192,643,423
Society National Bank of
Cleveland
40,000 3.55%, 1/20/95............ 39,964,183
--------------
Total Bank Notes
(amortized cost
$717,492,299)........... 717,492,299
--------------
CERTIFICATES OF DEPOSIT--
EURODOLLAR--0.1%
Republic National Bank of
New York
4.29%, 7/6/94
(amortized cost
9,000 $9,000,047)............. 9,000,047
--------------
CERTIFICATES OF DEPOSIT--
YANKEE--5.5%
Banque Nationale De Paris
20,000 4.39%, 8/1/94............. 20,000,334
Dai-Ichi Kangyo Bank, Ltd.
26,000 4.29%, 7/8/94............. 25,999,944
Industrial Bank of Japan,
Ltd.
300,000 4.54%, 7/28/94............ 300,000,000
16,000 4.54%, 7/29/94............ 16,000,000
Sumitomo Bank, Ltd.
11,000 4.23%, 8/5/94............. 10,998,170
--------------
Total Certificates of
Deposit--Yankee
(amortized cost
$372,998,448)........... 372,998,448
--------------
COMMERCIAL PAPER--DOMESTIC--49.5%
American Brands, Inc.
$ 20,000 4.31%, 7/13/94............ $ 19,971,267
American Express Credit
Corp.
105,000 4.31%, 7/5/94............. 104,949,717
22,000 4.31%, 7/6/94............. 21,986,831
Aristar, Inc.
7,840 4.48%, 7/11/94............ 7,830,244
7,000 4.40%, 7/13/94............ 6,989,733
5,000 4.45%, 7/22/94............ 4,987,021
5,000 4.40%, 7/25/94............ 4,985,333
Associates Corp. of North
America
20,000 4.25%, 7/5/94............. 19,990,556
50,000 4.37%, 7/18/94............ 49,896,819
31,000 4.36%, 8/5/94............. 30,868,594
AT&T Corp.
91,000 3.85%, 7/12/94............ 90,892,949
Beneficial Corp.
50,000 4.35%, 7/5/94............. 49,975,833
Ciesco, Inc.
12,000 4.55%, 7/12/94............ 11,983,317
30,000 4.25%, 7/14/94............ 29,953,958
21,000 4.44%, 8/18/94............ 20,875,680
CIT Group Holdings, Inc.
40,683 4.27%, 7/5/94............. 40,663,698
30,000 4.38%, 7/19/94............ 29,934,300
35,000 4.30%, 7/25/94............ 34,899,667
30,000 4.45%, 8/22/94............ 29,807,167
Commercial Credit Co.
28,000 4.55%, 7/12/94............ 27,961,072
</TABLE>
-4- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL MONEYMART ASSETS
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
COMMERCIAL PAPER--
DOMESTIC--(cont'd.)
Corporate Asset Funding
Co., Inc.
$ 35,000 4.25%, 7/7/94............. $ 34,975,208
66,000 4.25%, 7/11/94............ 65,922,083
21,500 4.27%, 7/11/94............ 21,474,499
27,000 4.25%, 7/15/94............ 26,955,375
28,415 4.54%, 7/15/94............ 28,364,832
14,885 4.44%, 8/22/94............ 14,789,538
Corporate Receivables
Corp.
25,300 4.07%, 7/11/94............ 25,271,397
Countrywide Funding Corp.
10,000 4.32%, 7/11/94............ 9,988,000
9,000 4.42%, 7/19/94............ 8,980,110
Dean Witter, Discover &
Co.
24,000 4.10%, 7/11/94............ 23,972,667
Falcon Asset
Securitization Corp.
17,775 4.55%, 7/12/94............ 17,750,288
6,950 4.52%, 7/13/94............ 6,939,529
18,800 4.37%, 7/14/94............ 18,770,333
First Union Corp.
100,000 4.27%, 7/20/94............ 99,774,639
Ford Motor Credit Corp.
100,000 4.30%, 7/26/94............ 99,701,389
250,000 4.30%, 7/27/94............ 249,223,611
General Electric Capital
Corp.
11,286 3.20%, 7/7/94............. 11,279,981
50,000 3.23%, 7/13/94............ 49,946,167
56,000 4.30%, 7/26/94............ 55,832,778
19,000 4.45%, 7/28/94............ 18,936,588
50,000 3.43%, 9/29/94............ 49,571,250
100,000 3.43%, 9/30/94............ 99,132,972
General Motors Acceptance
Corp.
360,800 4.67%, 7/11/94............ 360,331,962
Golden Peanut Co.
$ 9,000 4.60%, 8/11/94............ $ 8,952,850
8,000 4.55%, 9/14/94............ 7,924,167
GTE Corp.
29,000 4.39%, 7/15/94............ 28,950,547
Heller Financial Services,
Inc.
23,000 4.32%, 7/14/94............ 22,964,120
22,000 4.45%, 7/28/94............ 21,926,575
Household Finance Corp.
6,000 4.25%, 7/13/94............ 5,991,500
60,000 4.30%, 7/25/94............ 59,828,000
IBM Credit Corp.
7,000 4.45%, 7/21/94............ 6,982,694
ITT Financial Corp.
5,000 4.13%, 7/7/94............. 4,996,558
64,000 4.63%, 7/14/94............ 63,893,111
66,500 4.50%, 7/18/94............ 66,358,688
ITT Hartford Group
10,005 4.27%, 7/12/94............ 9,991,946
John Deere Capital Corp.
18,000 4.35%, 7/15/94............ 17,969,550
Merrill Lynch & Co., Inc.
35,000 4.27%, 7/18/94............ 34,929,426
70,000 4.30%, 7/21/94............ 69,832,778
23,100 4.12%, 7/25/94............ 23,036,552
Morgan (J.P.) & Co., Inc.
250,000 3.85%, 7/11/94............ 249,732,639
Morgan Stanley Group, Inc.
56,000 4.59%, 7/11/94............ 55,928,600
NYNEX Corp.
11,000 3.93%, 7/5/94............. 10,995,197
30,000 4.40%, 7/7/94............. 29,978,000
7,000 4.40%, 8/11/94............ 6,964,922
10,200 4.57%, 8/22/94............ 10,132,669
</TABLE>
-5- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL MONEYMART ASSETS
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
COMMERCIAL PAPER--
DOMESTIC--(cont'd.)
Pennsylvania Power & Light
Co.
$ 17,000 4.30%, 7/7/94............. $ 16,987,817
PepsiCo, Inc.
28,000 4.25%, 7/13/94............ 27,960,333
PHH Corp.
18,000 4.25%, 7/8/94............. 17,985,125
47,000 4.25%, 7/11/94............ 46,944,514
12,000 4.25%, 7/12/94............ 11,984,417
6,000 4.25%, 7/13/94............ 5,991,500
Philip Morris Companies,
Inc.
33,000 4.30%, 7/5/94............. 32,984,233
Preferred Receivables
Funding Corp.
10,875 4.25%, 7/1/94............. 10,875,000
18,925 4.25%, 7/5/94............. 18,916,063
28,025 4.25%, 7/12/94............ 27,988,606
50,000 4.26%, 7/12/94............ 49,934,917
12,000 4.26%, 7/13/94............ 11,982,960
48,725 4.27%, 7/21/94............ 48,609,413
Public Service Electric &
Gas Co.
4,850 4.33%, 7/11/94............ 4,844,167
15,000 4.32%, 7/22/94............ 14,962,200
11,435 4.40%, 8/4/94............. 11,387,481
24,000 4.60%, 8/23/94............ 23,837,467
Smith Barney Shearson,
Inc.
17,000 4.40%, 7/5/94............. 16,991,689
7,039 4.30%, 7/19/94............ 7,023,866
United Technologies Corp.
10,000 4.27%, 7/6/94............. 9,994,069
US West Commerce, Inc.
8,000 4.10%, 7/15/94............ 7,987,244
USL Capital Corp.
$ 18,000 4.57%, 7/5/94............. $ 17,990,860
11,000 4.60%, 7/11/94............ 10,985,944
11,000 4.28%, 7/18/94............ 10,977,768
WCP Funding Inc.
10,000 4.52%, 7/11/94............ 9,987,444
15,000 4.28%, 7/15/94............ 14,975,031
Xerox Credit Corp.
9,000 4.25%, 7/6/94............. 8,994,688
6,000 4.25%, 7/7/94............. 5,995,750
--------------
Total Commercial
Paper--Domestic
(amortized cost
$3,361,630,607)......... 3,361,630,607
--------------
COMMERCIAL PAPER--YANKEE--11.4%
American Honda Finance
Corp.
6,000 4.32%, 7/5/94............. 5,997,120
Bank of Montreal (New
York)
126,000 4.30%, 7/26/94............ 125,623,750
BNP United States Finance
Corp.
78,000 4.41%, 8/1/94............. 77,703,795
Bridgestone/Firestone,
Inc.
25,000 4.30%, 7/7/94............. 24,982,083
Canadian Imperial Holding,
Inc.
118,000 4.25%, 7/11/94............ 117,860,694
34,000 4.30%, 7/25/94............ 33,902,533
Cheltenham & Glouster
Building Society
68,000 4.22%, 7/6/94............. 67,960,144
12,000 4.68%, 8/16/94............ 11,928,240
29,000 4.55%, 8/30/94............ 28,780,083
Halifax Building Society
17,000 4.68%, 8/16/94............ 16,898,340
Hanson Finance (U.K.),
Plc.
41,930 4.12%, 7/21/94............ 41,834,027
15,000 4.35%, 8/2/94............. 14,942,000
8,000 4.40%, 8/2/94............. 7,968,711
</TABLE>
-6- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL MONEYMART ASSETS
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
COMMERCIAL PAPER--YANKEE--(cont'd.)
Maguire/Thomas Partners
$ 23,280 4.32%, 7/20/94............ $ 23,226,922
MCA Funding Corp.
12,500 4.72%, 8/24/94............ 12,411,500
16,000 4.72%, 8/25/94............ 15,884,622
Mitsubishi International
Corp.
13,000 4.65%, 8/15/94............ 12,924,438
National Australia
Funding,
Delaware Inc.
25,900 4.30%, 7/21/94............ 25,838,128
Province of British
Columbia
12,499 4.70%, 8/8/94............. 12,436,991
Province of Quebec
11,371 4.60%, 7/18/94............ 11,346,300
13,100 4.40%, 8/23/94............ 13,015,141
SRD Finance Inc.
8,000 4.31%, 7/7/94............. 7,994,253
11,000 4.35%, 7/14/94............ 10,982,721
23,000 4.30%, 7/21/94............ 22,945,056
Toronto Dominion Holdings
(USA), Inc.
29,000 4.25%, 7/12/94............ 28,962,340
--------------
Total Commercial
Paper--Yankee
(amortized cost
$774,349,932)........... 774,349,932
--------------
CORPORATE OBLIGATION--0.2%
American General Finance
Corp.
10,960 9.25%, 7/1/94
(amortized cost
$10,960,000)............ 10,960,000
--------------
EURODOLLAR TIME DEPOSITS--4.8%
Mitsubishi Bank, Ltd.
$ 22,212 4.4375%, 7/1/94........... $ 22,212,000
105,000 4.50%, 7/1/94............. 105,000,000
Sakura Bank, Ltd.
198,000 4.4375%, 7/1/94........... 198,000,000
--------------
Total EuroDollar Time
Deposits
(amortized cost
$325,212,000)........... 325,212,000
--------------
LOAN PARTICIPATIONS--0.3%
Hewlett Packard Co.
15,000 4.42%, 7/20/94............ 15,000,000
Morgan Stanley Group, Inc.
5,000 4.60%, 7/1/94............. 5,000,000
--------------
Total Loan Participations
(amortized cost
$20,000,000)............ 20,000,000
--------------
MEDIUM--TERM OBLIGATION--0.1%
Beneficial Corp.
9,500 9.50%, 5/25/95
(amortized cost
$9,823,193)............. 9,823,193
--------------
VARIABLE RATE INSTRUMENTS(D)--19.1%
Avco Financial Services
Inc.
61,000 4.44%, 7/27/94............ 61,000,000
Capital Auto Receivables
Asset Trust
7,692 3.30%, 7/15/94, 1993-3.... 7,676,743
Federal Home Loan Mortgage
Corp.
137,000 4.26%, 9/15/94............ 137,000,000
Goldman, Sachs & Co.
367,000 5.125%, 11/16/94.......... 367,000,000
</TABLE>
-7- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL MONEYMART ASSETS
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
VARIABLE RATE INSTRUMENTS(D)--(cont'd.)
Lehman Brothers Hldgs.,
Inc.
$210,000 4.73%, 7/27/94............ $ 210,000,000
Merrill Lynch & Co., Inc.
153,000 4.01%, 7/20/94............ 152,993,739
Money Market Auto Loan
Trust
86,450 4.56%, 7/15/94, 1990-1.... 86,450,000
Money Market Credit Card
Trust
88,000 4.42%, 7/11/94, 1989-1.... 88,000,000
Morgan Stanley Group, Inc.
55,000 4.13%, 7/15/94............ 55,000,000
28,000 4.58%, 7/20/94............ 28,000,000
10,000 4.59%, 7/20/94............ 10,000,000
95,000 4.94%, 8/15/94............ 95,000,000
--------------
Total Variable Rate
Instruments
(amortized cost
$1,298,120,482)......... 1,298,120,482
--------------
Total Investments--101.6%
(amortized cost
$6,899,587,008*)........ 6,899,587,008
Liabilities in excess of
other
assets--(1.6%).......... (107,751,059)
--------------
Net Assets--100%.......... $6,791,835,949
--------------
--------------
</TABLE>
- ---------------
* The cost of securities for federal income tax
purposes is substantially the same as for
financial reporting purposes.
(D) For purposes of amortized cost valuation, the
maturity date of these instruments is
considered to be the next date on which the
security can be redeemed at par or the next
date on which the rate of interest is adjusted.
The industry classification of portfolio holdings and other
assets (net) shown as a percentage of net assets as of
June 30, 1994 was as follows:
<TABLE>
<S> <C>
Commercial Banks.......................... 30.1%
Personal Credit Institutions.............. 17.7
Security Brokers & Dealers................ 17.0
Asset Backed Securities................... 9.9
Short-Term Business Credit................ 9.5
Bank Holding Companies - Domestic......... 5.2
Telephone Communications.................. 2.7
Federal Credit Agencies................... 2.0
Tobacco................................... 1.7
Auto Renting & Leasing.................... 1.2
Electrical Services....................... 1.1
Computer Rental and Leasing............... 0.6
Foreign/Sovereign......................... 0.5
Beverages................................. 0.4
Electrical Recording Equipment............ 0.4
Food & Related Products................... 0.3
Mortgage Bankers.......................... 0.3
Aircraft & Parts.......................... 0.2
Commodity Trading Firms................... 0.2
Life Insurance............................ 0.2
Office Machines........................... 0.2
Financial Services........................ 0.1
Photographic Equipment & Supplies......... 0.1
-----
101.6
Liabilities in excess of other assets..... (1.6)
-----
100.0%
-----
-----
</TABLE>
-8- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL MONEYMART ASSETS
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
Assets June 30, 1994
--------------
<S> <C>
Investments, at amortized cost
which approximates value......... $6,899,587,008
Receivable for Fund shares sold.... 49,668,313
Interest receivable................ 19,540,235
Other assets....................... 274,132
--------------
6,969,069,688
--------------
Liabilities
Bank overdraft..................... 2,502,420
Payable for Fund shares
reacquired....................... 166,501,127
Dividends payable.................. 3,241,268
Accrued expenses................... 2,685,574
Due to Manager..................... 1,742,307
Due to Distributor................. 375,958
Deferred director's fees........... 185,085
--------------
177,233,739
--------------
Net Assets......................... $6,791,835,949
--------------
--------------
Net assets were comprised of:
Common stock, at par ($.10 par
value;
15,000,000,000 shares
authorized
for issuance).................. $ 679,183,595
Paid-in capital in excess of
par.............................. 6,112,652,354
--------------
Net assets at June 30, 1994........ $6,791,835,949
--------------
--------------
Net asset value, offering price and
redemption price per share
($6,791,835,949 / 6,791,835,949
shares of common stock issued and
outstanding.).................... $1.00
--------------
--------------
</TABLE>
PRUDENTIAL MONEYMART ASSETS
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
June 30,
Net Investment Income 1994
------------
<S> <C>
Income
Interest............................ $135,041,029
------------
Expenses
Management fee...................... 11,050,550
Distribution fee.................... 4,544,300
Transfer agent's fees and
expenses............................ 8,718,000
Shareholder reports................. 658,500
Custodian's fees and expenses....... 305,000
Registration fees................... 181,000
Insurance expense................... 88,500
Directors' fees..................... 42,500
Audit fee........................... 18,000
Legal fees.......................... 16,000
Miscellaneous....................... 50,625
------------
Total expenses.................... 25,672,975
------------
Net investment income................. 109,368,054
Realized Gain on Investments
Net realized gain on investment
transactions........................ 126,524
------------
Net Increase in Net Assets
Resulting from Operations............. $109,494,578
------------
------------
</TABLE>
See Notes to Financial Statements. See Notes to Financial Statements.
-9-
<PAGE>
PRUDENTIAL MONEYMART ASSETS
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) June 30, December 31,
in Net Assets 1994 1993
---------------- ---------------
<S> <C> <C>
Operations
Net investment
income.......... $ 109,368,054 $ 203,524,243
Net realized gain
on
investment
transactions.... 126,524 2,572,145
---------------- ---------------
Net increase in
net
assets resulting
from
operations...... 109,494,578 206,096,388
---------------- ---------------
Dividends and
distributions to
shareholders...... (109,494,578) (206,096,388)
---------------- ---------------
Fund share
transactions
(at $1 per share)
Proceeds from
shares
subscribed...... 14,120,000,322 33,414,007,948
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends and
distributions... 102,585,362 196,483,621
Cost of shares
reacquired...... (14,749,382,928) (32,995,139,159)
---------------- ---------------
Net increase
(decrease) in
net
assets from Fund
share
transactions.... (526,797,244) 615,352,410
---------------- ---------------
Total increase
(decrease)...... (526,797,244) 615,352,410
Net Assets
Beginning of
period............ 7,318,633,193 6,703,280,783
---------------- ---------------
End of period....... $ 6,791,835,949 $ 7,318,633,193
---------------- ---------------
---------------- ---------------
</TABLE>
See Notes to Financial Statements.
PRUDENTIAL MONEYMART ASSETS
Notes to Financial Statements
(Unaudited)
Prudential-Bache MoneyMart Assets Inc., doing business as Prudential
MoneyMart Assets (the ``Fund''), is registered under the Investment Company Act
of 1940 as a diversified, open-end management investment company. The Fund
invests primarily in a portfolio of money market instruments maturing in
thirteen months or less whose ratings are within the two highest rating
categories by a nationally recognized statistical rating organization or, if not
rated, are of comparable quality. The ability of the issuers of the securities
held by the Fund to meet their obligations may be affected by economic
developments in a specific industry or region.
Note 1. Accounting The following is a summary of
Policies significant accounting policies
followed by the Fund in the preparation of its
financial statements.
SECURITIES VALUATIONS: Portfolio securities are valued at amortized cost, which
approximates market value. The amortized cost method involves valuing a security
at its cost on the date of purchase and thereafter assuming a constant
amortization to maturity of the difference between the principal amount due at
maturity and cost.
SECURITIES TRANSACTIONS AND INVESTMENT INCOME: Security transactions are
recorded on the trade date. Realized gains and losses on sales of investments
are calculated on the identified cost basis. Interest income is recorded on the
accrual basis. The cost of portfolio securities for federal income tax purposes
is substantially the same as for financial reporting purposes.
FEDERAL INCOME TAXES: It is the Fund's policy to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable net income to its shareholders.
Therefore, no federal income tax provision is required.
DIVIDENDS AND DISTRIBUTIONS: All of the Fund's net investment income and net
realized gains or losses, if any, are declared as dividends daily to the
shareholders of record at the time of such declaration. Net investment income of
the Fund consists of interest accrued and discount earned less estimated
expenses applicable to the dividend period. Payment of dividends is made
monthly.
Note 2. Management The Fund has a management
and Distribution agreement with Prudential
Agreements Mutual Fund Management,
Inc. (``PMF''). Pursuant to this
-10-
<PAGE>
agreement, PMF has responsibility for all investment advisory services and
supervises the subadviser's performance of such services. PMF has entered into a
subadvisory agreement with The Prudential Investment Corporation (``PIC''); PIC
furnishes investment advisory services in connection with the management of the
Fund. PMF pays for the cost of the subadviser's services, the compensation of
officers of the Fund, occupancy and certain clerical and bookkeeping costs of
the Fund. The Fund bears all other costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .50 of 1% of the Fund's average monthly net assets up to $50
million and .30 of 1% of the Fund's average monthly net assets in excess of $50
million.
The Fund has a distribution agreement with Prudential Mutual Fund
Distributors, Inc. (``PMFD''). To reimburse PMFD for its expenses incurred
pursuant to a plan of distribution, the Fund pays PMFD a reimbursement, accrued
daily and payable monthly at an annual rate of .125 of 1% of the Fund's average
daily net assets. PMFD pays various broker-dealers, including Prudential
Securities Incorporated (``PSI'') and Pruco Securities Corporation, affiliated
broker-dealers, for account servicing fees and other expenses incurred by such
broker-dealers.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are indirect,
wholly-owned subsidiaries of The Prudential Insurance Company of America.
Note 3. Other Prudential Mutual Fund
Transactions Services, Inc. (``PMFS''), a
with Affiliates wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent. During
the six months ended June 30, 1994, the Fund incurred fees of approximately
$8,001,400 for the services of PMFS. As of June 30, 1994, approximately
$1,333,500 of such fees were due to PMFS. Transfer agent fees and expenses in
the Statement of Operations include certain out-of-pocket expenses paid to
non-affiliates.
See Notes to Financial Statements.
-11-
<PAGE>
<PAGE>
PRUDENTIAL MONEYMART ASSETS
Financial Highlights
(Unaudited)
Selected data for a share of common stock outstanding throughout each of the
periods indicated:
<TABLE>
<CAPTION>
Six Months
Ended Year Ended December 31,
June 30, ------------------------------------------------------------------
1994 1993 1992 1991 1990 1989
<S> <C> <C> <C> <C> <C> <C>
----------- ---------- ---------- ---------- ---------- ----------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period..... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income and net realized
gains.................................. .015 .027 .035 .058 .077 .086
Dividends and distributions to
shareholders........................... (.015) (.027) (.035) (.058) (.077) (.086)
----------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period........... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- ---------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN#:........................... 1.52% 2.70% 3.59% 5.95% 8.00% 8.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000).......... $ 6,791,836 $7,318,633 $6,703,281 $7,138,159 $7,411,932 $8,168,972
Average net assets (000)................. $ 7,331,136 $7,742,989 $7,116,739 $7,763,251 $8,262,329 $6,947,060
Ratios to average net assets:
Expenses, including distribution fee... .71%* .71% .66% .68% .73% .69%
Expenses, excluding distribution fee... .58%* .58% .54% .56% .60% .57%
Net investment income.................. 3.01%* 2.63% 3.43% 5.72% 7.62% 8.57%
</TABLE>
- ---------------
* Annualized.
# Total return is calculated assuming a purchase of shares on the first day and
a sale on the last day of each year reported and includes reinvestment of
dividends and distributions. Total returns for periods for less than a full
year are not annualized.
See Notes to Financial Statements.
-12-
<PAGE>
<PAGE>
Directors
John C. Davis
William S. Field
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas A. Owens, Jr.
Richard A. Redeker
Sidney M. Spielvogel
Nancy H. Teeters
Robert H. Wellington
Officers
John C. Davis, Chairman
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote, Treasurer
S. Jane Rose, Secretary
Deborah A. Docs, Assistant Secretary
Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, New York 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, New Jersey 07101
Distributor
Prudential Mutual Fund Distributors, Inc.
One Seaport Plaza
New York, New York 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, Massachusetts 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, New Jersey 08906
Auditors
Deloitte & Touche
1633 Broadway
New York, New York 10019
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, Illinois 60610-4795
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555
The accompanying financial statements as of June 30, 1994
were not audited and, accordingly, no
opinion is expressed on them.
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus.
74435H102 MF 108E2
Cat. #430251F
<PAGE>
Prudential Mutual Funds
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555
The accompanying financial statements as of June 30, 1994
were not audited and, accordingly, no
opinion is expressed on them.
Directors
John C. Davis
William S. Field
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Lawrence C. McQuade
Thomas A. Owens, Jr.
Richard A. Redeker
Sidney M. Spielvogel
Nancy H. Teeters
Robert H. Wellington
Officers
John C. Davis, Chairman
Lawrence C. McQuade, President
Robert F. Gunia, Vice President
Susan C. Cote, Treasurer
S. Jane Rose, Secretary
Deborah A. Docs, Assistant Secretary
Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, New York 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, New Jersey 07101
Distributor
Prudential Mutual Fund Distributors, Inc.
One Seaport Plaza
New York, New York 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, Massachusetts 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, New Jersey 08906
Auditors
Deloitte & Touche
1633 Broadway
New York, New York 10019
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, Illinois 60610-4795
