ANNUAL REPORT December 31, 1994
Prudential
MoneyMart
Assets
(ICON)
(LOGO)
<PAGE>
Letter to Shareholders
January 20, 1995
Dear Shareholder:
For money market investors, 1994 was a very good year. The 7-day current
yield of your MoneyMart Assets Fund rose more than two full percentage points
to 5.32% from 2.83% as of this date a year ago. During this period of steadily
rising short-term interest rates, your Fund performed in line with the IBC
Donoghue money fund average.
FUND FACTS
As of December 31, 1994
<TABLE>
<CAPTION>
7-Day Net Asset Weighted Total Net
Current Yld. Value Avg. Mat. Assets (mil.)
<S> <C> <C> <C> <C>
MoneyMart Assets 5.32% $1.00 31 days $6,545
IBC Donoghue's Money Fund 5.12 1.00 36 days N/A
Average (All Taxable)*
</TABLE>
Note: Yields will fluctuate from time to time and 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 696 funds in IBC
Donoghue's all taxable money market fund category as of December 31, 1994.
Fund Overview
Prudential MoneyMart Assets 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 Federal Reserve Tightens.
In 1994, the U.S. economy grew at a robust annual rate approximating 4%, a
pace stronger than many had anticipated as the year began. As a result, the
Federal Reserve raised short-term interest rates six times during the year by
increasing the federal funds interest rate (the interbank overnight lending
rate) by 2.5 percentage points to 5.5%.
The Federal Reserve moved because it believed that the economy was growing so
fast it could re-ignite inflation. The bond market was also worried that
prices would rise, so long-term interest rates rose as well. In reality,
inflation was actually quite well behaved in 1994. The Consumer Price Index
grew by less than 3%. But inflation is a lagging barometer of economic activity
and there are telltale signs that inflation might increase to 3.5% or 4% in
1995. For example, commodity prices have been rising. Furthermore, employment
growth has been extraordinary -- approximately three million people found jobs
in 1994 and the unemployment rate sunk to a four-year low. Consumer confidence
was at a four-year high.
The economy grew so rapidly in 1994, that not even six interest rate
increases by the Federal Reserve could slow it down. Gross Domestic Product,
the measure of goods produced and services delivered, increased by a strong
4.0% in the third quarter, far faster than the 2.5 to 3% the Federal Reserve
would have liked to have seen. Fourth quarter growth at this writing was
projected to hit 4% or 5%, supporting our outlook and prompting predictions
that the central bank has not finished raising interest rates for this economic
cycle.
We Shortened.
The returns for money market funds are greatly affected by changes in
monetary policy. So as the Federal Reserve tightened, we shortened our
maturities to take advantage of rising interest rates. For example, our
weighted average maturity (WAM) was as low as 27 days on August 16, just before
the Federal Reserve raised rates by a half of a percentage point. This enabled
us to take advantage of new investments offering higher interest rates as they
came to market. Similarly, when it became apparent that the Federal Reserve
would increase interest rates once more at its November 15 meeting, we at first
shortened our WAM to as little as 34 days before the meeting and then extended
it afterward to as much as 46 days, anticipating a pause in additional credit
tightenings.
Early in the year, we increased our holdings in floating and variable rate
instruments to allow us to capture these higher rates. Since the coupons on
these securities adjust periodically to reflect current interest rates, they
help enhance yield when rates rise. For example, floating rate notes we
purchase may be based on a money market index such as LIBOR (London Interbank
Offered Rate), the 3-month U.S. Treasury bill, or the federal funds rate. These
securities pay the quoted index rate plus a specific amount, and the rate
resets in a specified time period, such as daily, weekly or monthly.
-2-
<PAGE>
As of this writing, attractive sectors of the money market include U. S.
government agency obligations that have become priced more competitively than
Treasury obligations because of increased supply.
A Word About Quality.
At the end of the year, all the portfolio's investments were rated of the
highest quality by two or more nationally recognized statistical rating
agencies, or they were deemed to be of equivalent quality if they were unrated.
Although there is never a guarantee that the share price of MoneyMart Assets
will remain at $1.00, we at Prudential emphasize a conservative, quality
oriented investment approach.
The Outlook.
The economy has not yet slowed sufficiently to prevent the threat of rising
inflation. We expect short-term interest rates will continue to rise until the
Federal Reserve is satisfied that this risk has subsided. We anticipate that
there will be further credit tightening in 1995.
As always, it is a pleasure to work for you. We are pleased to be able to
report this good news to you and thank you for the confidence you have shown
in us by choosing Prudential MoneyMart Assets.
To Our Shareholders:
It is with deep regret that I inform you of the passing of John C. Davis and
Robert J. Schultz. Each gentleman served with distinction on the MoneyMart
Assets Board of Directors and their contributions will be missed. We express
our heartfelt condolences to their families.
- --Richard A. Redeker
President,
Prudential Mutual Funds
Sincerely,
Lawrence C. McQuade
President
Joseph M. Tully
Portfolio Manager
-3-
<PAGE>
PORTFOLIO Q&A
(PHOTO)
Joseph M. Tully
Media Mentions: Portfolio Manager Joseph M. Tully appeared twice last summer
on CNBC to discuss rapid interest rate changes in the money markets.
A Word About Derivatives and Money Markets
Derivatives have been in the news in recent months. Not all derivatives are
created equal, however. Money market mutual funds have invested for a long
time in securities which are, in the most broadly defined terms, derivatives.
The following talk with Portfolio Manager Joseph M. Tully should help you
understand more about how we use derivatives in Prudential taxable money market
funds.
Q. What is a derivative?
A. A derivative is a financial instrument whose value is derived from the
value of an underlying asset, like a stock, bond, commodity, currency or
from an index. That covers just about all financial instruments except
plain stocks or bonds.
Q. What derivatives are used by Prudential MoneyMart Assets?
A. We use adjustable rate securities and occasionally liquidity puts, which
are considered derivatives. Liquidity puts simply allow us to resell a
security for cash to the issuer or a third party on a specified date. The
adjustable rate securities we purchase for the Fund have interest rates
which are pegged to a money market index, such as LIBOR, the three-month
U.S. Treasury Bill or the federal funds rate. We do not invest in those
derivative-related securities that the SEC has suggested are inappropriate
for money market funds, such as inverse floaters, dual or cost of funds
index floaters.
Q. Is there a danger of Prudential money market funds breaking the $1.00 per
share net asset value?
A. While there is never a guarantee any Fund will maintain its $1.00 share
value, Prudential taxable money market funds emphasize a conservative,
quality oriented investment approach. We continue to believe that
preservation of capital and liquidity can not be sacrificed for additional
yield.
-4-
<PAGE>
PRUDENTIAL MONEYMART ASSETS Portfolio of Investments
December 31, 1994
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
BANK NOTES--9.9%
First National Bank of
Chicago
$131,500 5.69%, 2/22/95............. $ 131,500,000
17,000 5.18%, 2/27/95............. 16,984,902
NationsBank of Dallas,
Texas, NA
55,000 6.03%, 1/31/95............. 55,000,000
PNC Bank, Ohio, NA
36,000 3.50%, 1/31/95............. 35,996,238
PNC Bank, Pittsburgh
Pennsylvania, NA
100,000 5.52%, 1/6/95.............. 99,998,893
119,000 5.15%, 2/22/95............. 119,000,320
Republic National Bank of
New York
193,000 4.30%, 3/8/95.............. 192,905,864
--------------
Total Bank Notes
(amortized cost
$651,386,217)............ 651,386,217
--------------
CERTIFICATES OF DEPOSIT--
EURODOLLAR--0.9%
Bayerische Vereinsbank AG
59,000 5.83%, 1/23/95
(amortized cost
$59,000,714)............. 59,000,714
--------------
CERTIFICATES OF DEPOSIT--
YANKEE--18.4%
Bank of Tokyo
100,000 6.46%, 3/30/95............. 100,000,000
Bank of Montreal
345,000 5.80%, 1/30/95............. 345,000,000
Caisse Nationale De Credit
Agricole
9,000 5.56%, 1/30/95............. 8,998,139
Fuji Bank, Ltd.
75,000 5.83%, 1/17/95............. 75,000,000
100,000 5.91%, 1/23/95............. 100,000,000
National Westminster Bank,
Plc.
35,000 5.54%, 1/31/95............. 34,991,966
Sanwa Bank Ltd.
$ 45,000 5.85%, 1/23/95............. $ 45,000,000
50,000 6.04%, 2/2/95.............. 50,000,000
Societe Generale
North America, Inc.
67,000 5.65%, 2/6/95.............. 67,000,000
263,000 5.65%, 2/7/95.............. 263,000,000
Sumitomo Bank, Ltd.
13,000 5.89%, 1/25/95............. 13,000,000
50,000 5.96%, 1/30/95............. 50,000,000
53,000 6.06%, 2/1/95.............. 53,000,000
--------------
Total Certificates of
Deposit--Yankee
(amortized cost
$1,204,990,105).......... 1,204,990,105
--------------
COMMERCIAL PAPER--51.8%
American General Finance
Corp.
15,000 5.46%, 1/17/95............. 14,963,600
American Home Products
Corp.
145,763 5.90%, 1/31/95............. 145,046,332
American Honda Finance
Corp.
23,600 5.98%, 1/31/95............. 23,482,393
12,100 6.00%, 1/31/95............. 12,039,500
Aristar, Inc.
6,000 5.85%, 1/17/95............. 5,984,400
11,000 5.54%, 1/23/95............. 10,962,759
Associates Corp. of North
America
10,000 5.77%, 1/25/95............. 9,961,533
163,000 5.77%, 1/30/95............. 162,242,367
50,000 6.05%, 1/30/95............. 49,756,319
14,000 5.77%, 1/31/95............. 13,932,683
27,000 6.25%, 3/14/95............. 26,662,500
Bankers Trust New York
Corp.
200,000 5.44%, 1/23/95............. 199,335,111
</TABLE>
-5- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL MONEYMART ASSETS
<TABLE>
<CAPTION>
Amount Value
(000) Description (Note 1)
<C> <S> <C>
COMMERCIAL PAPER--(cont'd.)
Beneficial Corp.
$ 40,000 6.25%, 3/15/95............. $ 39,493,056
Chrysler Financial Corp.
45,000 5.75%, 1/18/95............. 44,877,813
83,000 5.75%, 1/19/95............. 82,761,375
Ciesco, Inc.
12,000 5.50%, 1/11/95............. 11,981,667
CIT Group Holdings, Inc.
10,000 5.50%, 1/17/95............. 9,975,556
100,000 5.77%, 1/31/95............. 99,519,167
44,000 5.97%, 2/1/95.............. 43,773,803
39,000 6.27%, 3/13/95............. 38,517,733
Commercial Credit Co.
24,000 5.75%, 1/31/95............. 23,885,000
Dean Witter, Discover & Co.
22,000 5.78%, 1/23/95............. 21,922,291
8,859 5.97%, 2/1/95.............. 8,813,457
Deere & Co.
46,000 6.05%, 2/1/95.............. 45,760,353
Duracell Inc.
11,000 6.30%, 2/10/95............. 10,923,000
Ford Motor Credit Corp.
342,900 5.78%, 2/1/95.............. 341,193,311
General Electric Capital
Corp.
37,000 5.43%, 1/12/95............. 36,938,611
36,000 5.50%, 1/12/95............. 35,939,500
100,000 5.50%, 1/13/95............. 99,816,667
99,000 5.78%, 2/2/95.............. 98,491,360
69,000 6.45%, 4/18/95............. 67,677,213
General Motors Acceptance
Corp.
339,500 5.74%, 1/17/95............. 338,633,898
Greyhound Financial Corp.
7,150 6.20%, 1/13/95............. 7,135,223
5,000 6.32%, 2/7/95.............. 4,967,522
Greyhound Financial Corp.
$ 6,000 6.33%, 2/7/95.............. $ 5,960,965
25,000 6.29%, 2/8/95.............. 24,834,014
Hanson Finance (U.K.), Plc.
31,150 6.28%, 3/1/95.............. 30,829,397
22,100 6.26%, 3/3/95.............. 21,865,580
42,000 6.27%, 3/7/95.............. 41,524,525
66,000 6.27%, 3/9/95.............. 65,229,835
Heller Financial Services,
Inc.
35,000 6.05%, 1/18/95............. 34,900,007
26,000 6.30%, 3/13/95............. 25,676,950
26,000 6.30%, 3/14/95............. 25,672,400
Household Finance Corp.
37,000 5.50%, 1/11/95............. 36,943,472
27,000 5.50%, 1/12/95............. 26,954,625
37,000 5.79%, 1/30/95............. 36,827,426
IBM Credit Corp.
115,000 5.76%, 1/23/95............. 114,595,200
International Lease Finance
Corp.
13,000 5.75%, 1/18/95............. 12,964,701
ITT Financial Corp.
41,000 5.82%, 1/17/95............. 40,893,947
Maguire/Thomas Partners
10,000 6.125%, 1/13/95............ 9,979,583
6,000 6.22%, 2/9/95.............. 5,959,570
Merrill Lynch & Co., Inc.
41,000 5.75%, 1/17/95............. 40,895,222
23,000 5.77%, 1/19/95............. 22,933,645
Morgan Stanley Group, Inc.
100,000 6.27%, 3/1/95.............. 98,972,415
NationsBank Corp.
25,000 5.40%, 1/23/95............. 24,917,500
Preferred Receivables
Funding Corp.
13,000 5.65%, 1/11/95............. 12,979,597
10,050 5.47%, 1/17/95............. 10,025,567
</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--(cont'd.)
Sears Roebuck Acceptance
Corp.
$ 56,000 5.87%, 1/27/95............. $ 55,762,591
45,000 5.83%, 2/3/95.............. 44,759,513
17,000 6.05%, 2/6/95.............. 16,897,150
62,500 5.88%, 2/21/95............. 61,979,375
Smith Barney Shearson, Inc.
30,000 5.76%, 1/18/95............. 29,918,400
17,000 5.80%, 1/25/95............. 16,934,267
71,000 5.78%, 1/26/95............. 70,715,014
WCP Funding Inc.
5,000 6.125%, 2/6/95............. 4,969,375
Westpac Capital Corp.,
Delaware
26,000 5.50%, 1/17/95............. 25,936,444
36,000 6.28%, 3/14/95............. 35,547,840
Whirlpool Corp.
13,000 5.66%, 2/2/95.............. 12,934,596
Whirlpool Financial Corp.
6,000 5.60%, 2/6/95.............. 5,966,400
11,000 5.60%, 2/9/95.............. 10,933,267
30,000 5.61%, 2/10/95............. 29,813,000
WMX Technologies Inc.
13,000 5.20%, 5/12/95............. 12,754,011
--------------
Total Commercial Paper
(amortized cost
$3,395,524,459).......... 3,395,524,459
--------------
MEDIUM--TERM OBLIGATIONS--0.8%
Beneficial Corp.
9,500 9.50%, 5/25/95............. 9,641,889
Society National Bank of
Cleveland
40,000 3.55%, 1/20/95............. 39,996,648
--------------
Total Medium--Term
Obligations
(amortized cost
$49,638,537)............. $ 49,638,537
--------------
TIME DEPOSITS--EURODOLLAR--0.9%
Chemical Bank of New York
$ 2,875 4.50%, 1/3/95.............. 2,875,000
Mitsubishi Bank, Ltd.
53,562 7.00%, 1/3/95.............. 53,562,000
--------------
Total Time
Deposits--Eurodollar
(amortized cost
$56,437,000)............. 56,437,000
--------------
VARIABLE RATE INSTRUMENTS(D)--17.6%
American Express Centurion
Bank
29,000 6.06%, 1/5/95.............. 28,998,287
51,000 6.125%, 1/19/95............ 50,996,655
13,000 5.94%, 1/30/95............. 12,999,038
Beneficial Corp.
73,000 6.14%, 1/19/95............. 72,972,737
Goldman, Sachs & Co.
345,000 5.375%, 1/27/95............ 345,000,000
Lehman Brothers Hldgs.,
Inc.
185,000 6.36%, 1/26/95............. 185,000,000
Merrill Lynch & Co., Inc.
83,000 6.07%, 1/3/95.............. 82,987,844
65,000 6.07%, 1/23/95............. 64,990,831
Money Market Auto Loan
Trust
91,450 6.34%, 1/17/95............. 91,450,000
Money Market Credit Card
Trust
55,362 6.22%, 1/10/95............. 55,360,568
</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.)
Morgan Stanley Group, Inc.
$ 50,000 5.75%, 1/17/95............. $ 50,000,000
10,000 6.41%, 1/18/95............. 10,000,000
95,000 5.94%, 2/15/95............. 95,000,000
5,000 5.75%, 1/11/95............. 5,000,000
--------------
Total Variable Rate
Instruments
(amortized cost
$1,150,755,960).......... 1,150,755,960
--------------
Total Investments--100.3%
(amortized cost
$6,567,732,992*)......... 6,567,732,992
Liabilities in excess of
other
assets--(0.3%)........... (22,852,949)
--------------
Net Assets--100%........... $6,544,880,043
--------------
--------------
</TABLE>
- ---------------
* The cost of securities for federal income tax
purposes is 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 later of 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 shown as a
percentage of net assets as of December 31, 1994 was as follows:
<TABLE>
<S> <C>
Commercial Banks.......................... 33.3%
Personal Credit Institutions.............. 21.1
Security Brokers & Dealers................ 17.6
Short-Term Business Credit................ 12.8
Bank Holding Companies--Domestic.......... 3.4
Asset Backed Securities................... 2.9
Tobacco................................... 2.4
Pharmaceutical............................ 2.2
Finance Lessors........................... 1.8
Household Appliance....................... 0.9
Farm Machinery............................ 0.7
Financial Services........................ 0.6
Equipment Rental & Leasing................ 0.2
Refuse Systems/Sanitary................... 0.2
Miscellaneous Electrical Equipment........ 0.2
------
100.3
Liabilities in excess of other assets..... (0.3)
------
100.0%
------
------
</TABLE>
-8- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL MONEYMART ASSETS
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
December 31,
Assets 1994
--------------
<S> <C>
Investments, at amortized cost which approximates value..... $6,567,732,992
Receivable for Fund shares sold............................. 102,081,759
Interest receivable......................................... 35,815,018
Other assets................................................ 159,811
--------------
6,705,789,580
--------------
Liabilities
Bank overdraft.............................................. 62,702
Payable for Fund shares reacquired.......................... 151,790,175
Accrued expenses............................................ 4,321,839
Dividends payable........................................... 2,451,391
Due to Manager.............................................. 1,698,429
Due to Distributor.......................................... 389,293
Deferred director's fees.................................... 195,708
--------------
160,909,537
--------------
Net Assets.................................................. $6,544,880,043
--------------
--------------
Net assets were comprised of:
Common stock, at par ($.10 par value;
15,000,000,000 shares authorized for issuance).......... $ 654,488,004
Paid-in capital in excess of par.......................... 5,890,392,039
--------------
Net assets at December 31, 1994............................. $6,544,880,043
--------------
--------------
Net asset value, offering price and redemption price per share
($6,544,880,043 / 6,544,880,043 shares of common stock issued and outstanding)........ $1.00
--------------
--------------
</TABLE>
See Notes to Financial Statements.
-9-
<PAGE>
PRUDENTIAL MONEYMART ASSETS
Statement of Operations
<TABLE>
<CAPTION>
Year Ended
December 31,
Net Investment Income 1994
------------
<S> <C>
Income
Interest............................ $308,274,967
------------
Expenses
Management fee...................... 21,320,747
Distribution fee.................... 8,839,226
Transfer agent's fees and
expenses............................ 16,946,000
Shareholder reports................. 1,300,000
Registration fees................... 695,000
Custodian's fees and expenses....... 510,000
Insurance expense................... 175,600
Directors' fees..................... 88,000
Audit fee........................... 36,000
Legal fees.......................... 23,000
Miscellaneous....................... 64,271
------------
Total expenses.................... 49,997,844
------------
Net investment income................. 258,277,123
Realized Gain on Investments
Net realized gain on investment
transactions........................ 147,440
------------
Net Increase in Net Assets
Resulting from Operations............. $258,424,563
------------
------------
</TABLE>
See Notes to Financial Statements.
PRUDENTIAL MONEYMART ASSETS
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Year Ended December 31,
Increase (Decrease) ----------------------------------
in Net Assets 1994 1993
---------------- ---------------
<S> <C> <C>
Operations
Net investment
income.......... $ 258,277,123 $ 203,524,243
Net realized gain
on investment
transactions.... 147,440 2,572,145
---------------- ---------------
Net increase in
net assets
resulting from
operations...... 258,424,563 206,096,388
---------------- ---------------
Dividends and
distributions to
shareholders...... (258,424,563) (206,096,388)
---------------- ---------------
Fund share
transactions
(at $1 per share)
Proceeds from
shares
subscribed...... 26,869,523,481 33,414,007,948
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends and
distributions... 245,955,917 196,483,621
Cost of shares
reacquired...... (27,889,232,548) (32,995,139,159)
---------------- ---------------
Net increase
(decrease) in
net assets from
Fund share
transactions.... (773,753,150) 615,352,410
---------------- ---------------
Total increase
(decrease)...... (773,753,150) 615,352,410
Net Assets
Beginning of year... 7,318,633,193 6,703,280,783
---------------- ---------------
End of year......... $ 6,544,880,043 $ 7,318,633,193
---------------- ---------------
---------------- ---------------
</TABLE>
See Notes to Financial Statements.
-10-
<PAGE>
PRUDENTIAL MONEYMART ASSETS
Notes to Financial Statements
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
Policies of 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.
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
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 year ended December 31, 1994, the Fund incurred
fees of approximately $15,538,800 for the services of PMFS. As of
December 31, 1994, approximately $2,661,400 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.
-11-
<PAGE>
<PAGE>
PRUDENTIAL MONEYMART ASSETS
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------------------
1994 1993 1992 1991 1990
<S> <C> <C> <C> <C> <C>
----------- ---------- ---------- ---------- ----------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year.................. $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Net investment income and net realized gains........ .037 .027 .035 .058 .077
Dividends and distributions to shareholders......... (.037) (.027) (.035) (.058) (.077)
----------- ---------- ---------- ---------- ----------
Net asset value, end of year........................ $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
----------- ---------- ---------- ---------- ----------
----------- ---------- ---------- ---------- ----------
TOTAL RETURN#:...................................... 3.72% 2.70% 3.59% 5.95% 8.00%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)....................... $6,544,880 $7,318,633 $6,703,281 $7,138,159 $7,411,932
Average net assets (000)............................ $7,071,381 $7,742,989 $7,116,739 $7,763,251 $8,262,329
Ratios to average net assets:
Expenses, including distribution fee.............. .71% .71% .66% .68% .73%
Expenses, excluding distribution fee.............. .58% .58% .54% .56% .60%
Net investment income............................. 3.65% 2.63% 3.43% 5.72% 7.62%
</TABLE>
- ---------------
# 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.
See Notes to Financial Statements.
-12-
<PAGE>
<PAGE>
INDEPENDENT AUDITORS' REPORT
The Shareholders and Board of Directors
Prudential MoneyMart Assets
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Prudential MoneyMart Assets, as of December 31,
1994, the related statements of operations for the year then ended and of
changes in net assets for each of the two years in the period then ended, and
the financial highlights for each of the five years in the period then ended.
These financial statements and financial highlights are the responsibility of
the Fund's management. Our responsibility is to express an opinion on these
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of the securities owned as of
December 31, 1994 by correspondence with the custodian. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Prudential MoneyMart
Assets as of December 31, 1994, the results of its operations, the changes in
its net assets and its financial highlights for the respective stated periods in
conformity with generally accepted accounting principles.
Deloitte & Touche LLP
New York, New York
February 1, 1995
-13-
<PAGE>
<PAGE>
Directors
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
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, NY 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101
Distributor
Prudential Mutual Fund Distributors, Inc.
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, Illinois 60610-4795
Prudential Mutual Funds
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852, Collect (908) 417-7555
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by a current prospectus.
74435H102 Prudential Mutual Fund Management (LOGO) MF 108E
