(LOGO)
Prudential
MoneyMart
Assets
ANNUAL
REPORT
Dec. 31, 1995
(LOGO)
<PAGE>
Prudential MoneyMart Assets
Performance At A Glance.
For the Prudential MoneyMart Assets investor, 1995 was another year of sound
performance. We took advantage of rising interest rates early on and correctly
anticipated falling rates later. Throughout the year we offered competitive
yields, maintained a high credit quality and a stable $1 net asset value. On
December 31, 1995, the Prudential MoneyMart Assets 7-day current yield stood at
5.23% compared to 5.15% for the average money market fund tracked by
IBC/Donoghue.
<TABLE>
<CAPTION>
Fund Facts As of 12/31/95
7-Day Net Asset Weighted Total
Current Yld. Value Avg. Mat. Assets (mil.)
<S> <C> <C> <C> <C>
MoneyMart Assets 5.23% $1.00 48 Days $7,222
IBC/Donoghue
Money Fund Avg.
(All Taxable*) 5.15% $1.00 54 Days N/A
</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 771 funds in the
International Business Communications/Donoghue all taxable money fund category
as of January 2, 1996.
Falling Rates / U.S. Treasury Yield Curve
(GRAPH)
MATURITY IN YEARS
How Investments Compared.
(As of 12/31/95)
Source: Lipper Analytical Services. Financial markets change, so a mutual
fund's past performance should never be used to predict future results. The
risks to each of the investments listed above are different -- we provide
12-month total return averages for several Lipper mutual fund categories to
show you that reaching for higher yields means tolerating more risk. The
greater the risk, the larger the potential reward or loss. In addition, we've
added historical 20-year average annual returns. These returns assume the
reinvestment of dividends.
U.S. Growth Funds will fluctuate a great deal. Smaller capitalization stocks
offer greater potential for long-term growth but may be more volatile than
larger capitalization stocks. Investors have received higher historical total
returns from stocks than from most other investments.
General Bond Funds provide more income than stock funds, which can help smooth
out their total returns year by year. But their prices still fluctuate
(sometimes a good deal) and their returns have been historically lower than
those of stock funds. Unlike bond funds, bonds, if held to maturity, generally
offer a fixed rate of return and fixed principal value.
General Municipal Debt Funds invest in bonds issued by state governments, state
agencies and/or municipalities. This investment provides income that is usually
exempt from federal and state income taxes.
Money Market Funds attempt to preserve a constant share value; they don't
fluctuate much in price but, historically, their returns have been generally
among the lowest of the major investment categories.
*19 years for General Muni Debt Funds.
<PAGE>
Joseph M. Tully, Fund Manager (PICTURE)
Portfolio
Manager's Report
Prudential MoneyMart Assets seeks high current income consistent with the
stability of capital and the maintenance of 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 one of the two highest ratings categories by at least two major rating
agencies or, if not rated, deemed to be of equivalent quality by our credit
research staff.
Strategy Session.
Our investment strategy is, by necessity, dependent upon
Federal Reserve policy. Correctly anticipating moves by the central bank is the
key to preserving competitive yields for a money fund. This is true whether
short-term interest rates rise or fall.
The Federal Reserve seeks to indirectly influence the economy by managing the
federal funds rate (the rate banks charge each other for overnight loans). The
goal is to promote sustainable economic growth without triggering higher levels
of inflation.
When 1995 began, short-term interest rates were still rising. By the end of
February, the federal funds rate had risen 300 basis points to 6% from 3% only
a year earlier (a basis point is 1/100 of a percentage point). It would be the
last time short-term rates would be that high for the remainder of the year.
During this period of rising rates our strategy was straightforward: shorten
the portfolio's maturity in anticipation of each Federal Reserve announcement
and then lengthen maturity immediately afterwards to lock in the new, higher
yields.
Eighteen months of higher rates were specifically engineered to quell inflation
-- and that's exactly what they did. By the second quarter of 1995, the
annualized inflation rate was still about 3%, but the underlying inflationary
pressures were easing. Clearly, inflation had nowhere to go but down.
Unfortunately, the same could be said for the economy.
As the second quarter ended, Gross Domestic Product (GDP), the total value of
goods produced by the country, had fallen sharply to 1.3%. There was serious
concern that the economy was slipping toward recession.
At its July 6 meeting, the Federal Reserve reversed course and began lowering
the federal funds rate by 25 basis points to 5.75%. The economy accelerated and
GDP increased to about 3.5% by the end of the third quarter.
Despite the stimulus, economic growth began to decelerate again in the fourth
quarter. This outlook, plus favorable inflation news, led the Federal Reserve
to lower short-term rates again in mid-December to 5.50% or 25 basis points
lower than last summer.
A Word About Quality.
As of December 31, 1995, all of the portfolio's investments were rated at least
"Aa" or "Prime 2" by Moody's Investors Service; "AA" or "A-2" by Standard &
Poor's Ratings Group; "AA" or "Duff 2" by Duff & Phelps Credit Rating Co., or
deemed to be of comparable quality by our research staff. Investments deemed to
be of equivalent quality that were not rated were subject to Board
ratification. Although there is never a guarantee that the share price of
Prudential MoneyMart Assets will remain at $1, we emphasize a conservative,
quality-oriented investment approach.
<PAGE>
What Went Well.
Preserving Yield.
As rates began to decline in the second half of the year, our goal was to
preserve a competitive yield for you. We did so by correctly anticipating the
central bank's first move to lower rates in July and extending maturity before
rates were cut. Over the past six months, your Fund's maturity was generally
positioned longer than the average money fund tracked by IBC/Donoghue.
Increasing our exposure to longer term, fixed-rate securities also allowed us
to hold on to higher yields longer.
Looking For Attractive Investments.
High quality, variable rate securities, which currently reset off of daily,
one-month or other periodic interest rates, are different from other money
market investments because their coupons (or yield) change frequently. These
securities are linked to various independent, short-term interest rate indices
such as the federal funds rate, interbank lending rate (LIBOR) or Treasury
bills. Given the right conditions, variable rate securities can play an
important role in preserving or enhancing yield.
Conditions were not right last summer. Prior to -- and then after -- the
July interest rate cut, market indices moved steadily lower. At that time it
made sense to pare our variable rate holdings and we did.
Conditions were better later in the year. As we've stated, variable rate
securities set to various market indices. These indices generally move in
tandem, but in varying degrees. As the year drew to a close, LIBOR-based
variable instruments generally had higher yields than variable rate securities
tied to the other market indices, such as the federal funds rate or Treasury
bills. Your Fund benefited from this development since the majority of our
variable-rate holdings were concentrated in LIBOR-based instruments (14% as of
December 31, 1995).
And Not So Well.
Bond markets tend to anticipate Federal Reserve policy rather than react to it.
As a result, longer term money market rates have already priced in expectations
for lower interest rates. This has caused an "inverted yield curve" in the
short-term bond markets, which meant that three-month rates were higher than
one-year rates.
Although we correctly anticipated the lowering of short-term interest rates by
the Federal Reserve, we did not expect the yield curve to invert to the extent
that it did. Looking back, we could have, but did not, maintain a large enough
position in longer term, fixed-rate securities which may have produced a higher
return as the yield curve inverted.
Looking Ahead.
Variable Rate Securities: Opportunity Knocks.
As December drew to a close, we liked the yield opportunities offered by some
variable rate securities and we will likely be purchasing them in 1996. Why?
- - As long as the yield curve remains inverted, money market investors will not
have to extend maturity to get higher yields.
- - As 1995 ended, the economy appeared locked in low gear. We believed that at
5.5%, the federal funds rate was still too high to encourage an expanding
economy and the specter of a near recession could not be ignored. In fact, on
January 31, 1996, the Federal Reserve once again lowered the federal funds rate
25 basis points to 5.25%. We believe that the Federal Reserve will take a "go
slow" approach in lowering short-term rates further. A gradual reduction in
short-term rates rewards patience and should allow us to extend the average
maturity of the Fund only when longer term securities represent better relative
value.
1
<PAGE>
President's Letter February 5, 1996
(PICTURE)
Dear Shareholder:
For many investors, 1995 was a profitable year -- most stock and bond funds
enjoyed healthy returns from the U.S. markets. While climbing returns can tempt
even the most skittish investors to start buying again, it is important to
remember that the stock and bond markets go down just as they go up. At times
like these, remember the importance of working with your Financial Advisor or
Registered Representative to help you find investments that are consistent with
your risk tolerance and time horizon. Your Financial Advisor or Registered
Representative can help you maintain realistic expectations about both the
potential performance and risks associated with your investments.
Shareholder Legislative Action Program.
From time to time we've been informing you about significant legislation before
Congress, such as the American Dream Savings Account, that may potentially
impact mutual fund investors. We want to make it easier for you to share your
views with your Congressional member. So, beginning in 1996, whenever Congress
is considering legislation that would affect you, we'll send you postage-paid
message cards that you simply drop in the mail if you want to let your senator
or representative know how you want him or her to vote.
Fund Profiles.
Over the past year, we've worked to make your shareholder reports more
interesting, informative and easy to read. This year, we'll be considering
"fund profiles." Some mutual fund companies now offer one to shareholders along
with a full prospectus. The purpose of a fund profile is to provide a very
brief, reader-friendly summary of a fund's objective, investments, risks and
expenses. Would you like to see fund profiles from us? Please call your
Financial Advisor or Registered Representative to share your views.
As always, thank you for your confidence in Prudential Mutual Funds.
Sincerely,
Richard A. Redeker
President
2
<PAGE>
Portfolio of Investments as of December 31, 1995 PRUDENTIAL MONEYMART ASSETS
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
------------------------------------------------------------
<C> <S> <C>
Bank Notes--3.0%
Bank of America Illinois
$19,000 5.79%, 1/16/96 $ 18,999,922
Bank One Indianapolis, NA
35,000 7.18%, 2/5/96 35,013,135
First Union National Bank of North
Carolina
100,000 5.80%, 1/31/96 100,000,000
50,000 5.78%, 2/9/96 50,000,000
NationsBank of Texas, NA
10,000 7.30%, 1/26/96 10,002,845
--------------
Total Bank Notes
(amortized cost $214,015,902) 214,015,902
--------------
- ------------------------------------------------------------
Certificates of Deposit - Eurodollar--4.0%
Abbey National Treasury Services
Plc.
52,000 5.80%, 1/22/96 52,000,299
Bayerische Hypotheken-und
Wechsel-Bank
24,000 5.78%, 1/16/96 23,999,554
179,000 5.83%, 1/16/96 179,001,470
25,000 5.81%, 1/29/96 25,000,156
Landesbank Hessen-Thuringen
Girozentrale
6,000 5.79%, 2/15/96 5,999,832
Lloyds Bank Plc.
5,000 5.75%, 1/22/96 4,999,757
--------------
Total Certificates of Deposit -
Eurodollar
(amortized cost $291,001,068) 291,001,068
--------------
- ------------------------------------------------------------
Certificates of Deposit - Yankee--16.9%
Bank Of Montreal
20,000 5.80%, 1/22/96 20,000,000
100,000 5.80%, 1/23/96 100,000,000
Bank of Nova Scotia
15,000 5.77%, 2/1/96 14,999,604
Banque Nationale De Paris
15,000 5.78%, 1/22/96 14,999,778
114,000 5.80%, 2/2/96 114,000,000
45,000 7.07%, 2/20/96 45,024,146
21,000 6.95%, 2/21/96 21,008,292
Commerzbank
8,000 7.32%, 1/24/96 8,003,322
30,000 7.04%, 2/16/96 30,014,780
National Westminster Bank Plc.
$190,000 5.81%, 1/12/96 $ 190,000,000
99,000 5.80%, 1/31/96 99,000,000
Societe Generale
350,000 5.80%, 2/1/96 350,000,000
Swiss Bank Corp.
211,000 5.75%, 3/20/96 211,000,000
--------------
Total Certificates of Deposit -
Yankee
(amortized cost $1,218,049,922) 1,218,049,922
--------------
- ------------------------------------------------------------
Commercial Paper--51.9%
A. H. Robins Co., Inc.
7,465 5.75%, 1/25/96 7,436,384
9,500 5.80%, 1/26/96 9,461,736
18,100 5.67%, 2/14/96 17,974,567
American Express Credit Corp.
5,000 5.82%, 2/2/96 4,974,133
12,000 5.67%, 2/13/96 11,918,730
20,000 5.59%, 3/15/96 19,770,189
American Home Products Corp.
54,000 5.80%, 1/18/96 53,852,100
73,500 5.80%, 1/19/96 73,286,850
17,000 5.68%, 3/7/96 16,822,973
American Honda Finance Corp.
25,000 5.85%, 1/12/96 24,955,312
17,500 5.85%, 1/22/96 17,440,281
4,026 5.85%, 1/24/96 4,010,953
11,850 5.83%, 1/26/96 11,802,024
9,500 5.80%, 1/30/96 9,455,614
5,000 5.845%, 1/30/96 4,976,458
7,000 5.75%, 2/13/96 6,951,924
Aristar, Inc.
5,000 5.80%, 1/19/96 4,985,500
7,434 5.90%, 1/24/96 7,405,978
10,000 5.80%, 2/1/96 9,950,056
5,000 5.77%, 2/5/96 4,971,951
8,000 5.80%, 2/16/96 7,940,711
Associates Corp. of North America
75,000 5.71%, 2/1/96 74,631,229
85,000 5.71%, 2/2/96 84,568,578
50,000 5.68%, 2/12/96 49,668,666
10,000 5.68%, 2/13/96 9,932,155
Bank Of Montreal
168,000 5.72%, 1/29/96 167,252,587
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 3 -----
<PAGE>
<PAGE>
Portfolio of Investments as of December 31, 1995 PRUDENTIAL MONEYMART ASSETS
- ------------------------------------------------------------
- ------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
------------------------------------------------------------
<C> <S> <C>
Commercial Paper (cont'd.)
Bradford & Bingley Building
Society
$17,000 5.74%, 1/17/96 $ 16,956,631
24,000 5.73%, 1/23/96 23,915,960
Caterpillar Financial Services
Corp.
19,000 5.66%, 2/21/96 18,847,652
24,000 5.67%, 2/27/96 23,784,540
Chase Manhattan Corp.
59,000 5.67%, 2/12/96 58,609,715
CIT Group Holdings, Inc.
54,705 5.67%, 2/5/96 54,403,439
50,000 5.68%, 2/6/96 49,716,000
86,000 5.68%, 2/7/96 85,497,951
Corporate Receivables Corp.
27,000 5.75%, 1/16/96 26,935,312
23,000 5.67%, 2/27/96 22,793,517
11,000 5.625%, 2/28/96 10,900,313
Countrywide Funding Corp.
39,000 5.83%, 1/16/96 38,905,263
13,760 6.00%, 1/18/96 13,721,013
18,955 5.87%, 1/22/96 18,890,095
8,818 6.00%, 1/22/96 8,787,137
37,155 5.87%, 1/23/96 37,021,717
Dean Witter, Discover & Co.
42,000 5.70%, 2/8/96 41,747,300
36,000 5.70%, 2/14/96 35,749,200
Enterprise Funding Corp.
11,000 5.75%, 1/19/96 10,968,375
Falcon Asset Securitization Corp.
13,000 5.75%, 1/19/96 12,962,625
Finova Capital Corp.
24,000 5.95%, 1/2/96 23,996,033
60,600 5.97%, 1/5/96 60,559,802
49,300 5.97%, 1/8/96 49,242,771
37,605 6.00%, 1/12/96 37,536,057
First Union Corp.
68,000 5.71%, 2/9/96 67,579,363
Fleet Mortgage Group
10,000 5.80%, 1/16/96 9,975,833
39,000 5.80%, 1/24/96 38,855,484
Ford Motor Credit Corp.
193,000 5.75%, 1/22/96 192,352,646
57,000 5.71%, 2/1/96 56,719,734
65,000 5.67%, 2/13/96 64,559,787
General Electric Capital Corp.
$66,000 5.66%, 2/8/96 $ 65,605,687
62,000 5.58%, 4/8/96 61,058,220
123,000 5.58%, 4/9/96 121,112,565
General Motors Acceptance Corp.
12,000 5.73%, 2/6/96 11,931,240
264,000 5.75%, 2/20/96 261,891,667
GTE Corp.
17,000 5.87%, 1/19/96 16,950,105
15,635 5.95%, 1/23/96 15,578,150
15,000 5.95%, 1/29/96 14,930,583
42,000 5.95%, 1/31/96 41,791,750
Hanson Finance (U.K.) Plc.
40,000 5.70%, 1/25/96 39,848,000
15,000 5.715%, 1/26/96 14,940,469
35,000 5.70%, 1/31/96 34,833,750
49,435 5.65%, 2/28/96 48,985,004
Heller Financial Services, Inc.
39,000 5.90%, 1/11/96 38,936,083
Hertz Corp.
20,000 5.71%, 2/5/96 19,888,972
Honeywell, Inc.
14,500 5.77%, 1/9/96 14,481,408
Merrill Lynch & Co., Inc.
36,000 5.72%, 1/31/96 35,828,400
11,000 5.76%, 1/31/96 10,947,200
140,000 5.64%, 2/29/96 138,705,933
28,000 5.60%, 3/29/96 27,616,711
Morgan Stanley Group, Inc.
89,500 5.72%, 1/12/96 89,343,574
NYNEX Corp.
29,000 5.82%, 1/10/96 28,957,805
18,000 5.82%, 1/16/96 17,956,350
15,000 5.80%, 1/19/96 14,956,500
21,500 5.75%, 2/1/96 21,393,545
PHH Corp.
19,052 5.83%, 1/23/96 18,984,122
10,000 5.85%, 1/25/96 9,961,000
PNC Funding Corp.
26,000 5.73%, 2/8/96 25,842,743
26,000 5.71%, 3/1/96 25,752,567
</TABLE>
- --------------------------------------------------------------------------------
- ----- 4 See Notes to Financial Statements.
<PAGE>
<PAGE>
Portfolio of Investments as of December 31, 1995 PRUDENTIAL MONEYMART ASSETS
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
------------------------------------------------------------
<C> <S> <C>
Commercial Paper (cont'd.)
Preferred Receivables Funding
Corp.
$58,000 5.85%, 1/16/96 $ 57,858,625
45,000 5.85%, 1/17/96 44,883,000
33,375 5.65%, 2/6/96 33,186,431
35,000 5.68%, 2/8/96 34,790,156
Riverwoods Funding Corp.
14,000 5.70%, 2/6/96 13,920,200
5,000 5.71%, 2/7/96 4,970,657
25,000 5.72%, 2/8/96 24,849,056
10,000 5.70%, 2/14/96 9,930,333
Sears Roebuck Acceptance Corp.
28,000 5.70%, 2/6/96 27,840,400
25,000 5.72%, 2/12/96 24,833,166
38,000 5.72%, 2/23/96 37,679,998
Sherwood Medical Co.
19,500 5.80%, 1/26/96 19,421,458
Smith Barney, Inc.
4,000 5.74%, 1/30/96 3,981,505
50,000 5.74%, 1/31/96 49,760,833
Special Purpose Accounts
Receivable Co.
20,000 5.77%, 1/19/96 19,942,300
27,000 5.78%, 1/24/96 26,900,295
USL Capital Corp.
6,125 5.75%, 1/19/96 6,107,391
17,700 5.73%, 1/25/96 17,632,386
WCP Funding, Inc.
11,000 5.75%, 1/24/96 10,959,590
11,190 5.75%, 1/25/96 11,147,105
13,000 5.70%, 2/16/96 12,905,317
7,000 5.65%, 2/28/96 6,936,281
Whirlpool Financial Corp.
5,000 5.80%, 1/23/96 4,982,278
7,000 5.80%, 1/29/96 6,968,422
15,000 5.80%, 1/30/96 14,929,917
--------------
Total Commercial Paper
(amortized cost $3,745,216,108) 3,745,216,108
--------------
- ------------------------------------------------------------
Medium - Term Obligations--1.8%
Associates Corp. of North America
7,000 8.80%, 3/1/96 7,025,730
AT & T Capital Corp.
$5,000 6.27%, 7/5/96 $ 5,005,984
Bayerische Hypotheken-und
Weschel-Bank
29,000 6.376%, 4/24/96 28,993,496
CIT Group Holdings, Inc.
5,000 4.75%, 3/15/96 4,988,617
Ford Motor Credit Corp.
5,000 5.15%, 3/18/96 4,986,442
6,000 5.00%, 3/25/96 5,980,385
4,000 9.00%, 7/26/96 4,066,971
General Motors Acceptance Corp.
11,000 5.975%, 2/21/96 11,000,490
4,640 6.75%, 5/17/96 4,648,945
4,275 8.80%, 7/8/96 4,335,108
6,000 8.625%, 7/15/96 6,079,911
9,630 8.25%, 8/1/96 9,748,578
Westdeusche Landesbank
Girozentrale
33,300 6.85%, 3/1/96 33,308,482
--------------
Total Medium - Term Obligations
(amortized cost $130,169,139) 130,169,139
--------------
- ------------------------------------------------------------
Repurchase Agreement
144 Joint Repurchase Agreement
Account,
5.85%, 1/2/96, (Note 4)
(amortized cost $144,000) 144,000
--------------
- ------------------------------------------------------------
U.S. Government & Agency Obligations--3.7%
Federal Home Loan Bank
48,000 6.05%, 6/13/96 48,012,629
Federal Home Loan Mortgage Corp.
63,000 5.645%, 8/15/96 62,900,753
Federal National Mortgage
Association
49,000 5.71%, 6/10/96 48,937,841
109,000 5.8125%, 10/4/96 108,896,882
--------------
Total U.S. Government & Agency
Obligations
(amortized cost $268,748,105) 268,748,105
--------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 5 -----
<PAGE>
<PAGE>
Portfolio of Investments as of December 31, 1995 PRUDENTIAL MONEYMART ASSETS
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
------------------------------------------------------------
<C> <S> <C>
Variable Rate Instruments+--17.3%
American Express Centurion Bank
$5,000 5.9375%, 2/16/96 $ 4,999,874
Federal National Mortgage
Association
133,000 5.755%, 9/27/96 133,000,000
Goldman, Sachs Group, L.P.
350,000 5.8125%, 5/24/96 350,000,000
General Motors Acceptance Corp.
55,500 5.70%, 1/22/96 55,477,717
Lehman Brothers Holdings, Inc.
80,500 6.1422%, 1/2/96 80,500,000
Merrill Lynch & Co., Inc.
112,000 5.9375%, 1/10/96 111,974,837
Money Market Auto Loan Trust
49,080 6.085%, 4/15/96 49,080,221
Morgan Stanley Group, Inc.
55,000 6.0625%, 1/16/96 55,000,000
10,000 6.19737%, 1/17/96 10,000,000
95,000 6.0703%, 2/15/96 95,000,000
SMM Trust,
Notes 1995-O
50,000 5.9375%, 1/16/96 49,995,461
Notes 1995-Q
252,000 5.9375%, 1/16/96 251,975,898
--------------
Total Variable Rate Instruments
(amortized cost $1,247,004,008) 1,247,004,008
--------------
Total Investments--98.5%
(amortized cost $7,114,348,252*) $7,114,348,252
Other assets in excess of
liabilities--1.5% 107,309,711
--------------
Net Assets--100% $7,221,657,963
--------------
--------------
</TABLE>
- ---------------
<TABLE>
<C> <S>
* The cost of securities for federal income tax purposes is
substantially the same as for financial reporting
purposes.
+ The maturity date presented for these instruments is 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.
</TABLE>
The industry classification of portfolio holdings and other assets in excess of
liabilities shown as a percentage of net assets as of December 31, 1995 was as
follows:
<TABLE>
<S> <C>
Commercial Banks.................................... 28.4%
Security Brokers & Dealers.......................... 15.7
Short-Term Business Credit.......................... 15.2
Personal Credit Institutions........................ 10.5
Asset Backed Securities............................. 10.4
U.S. Government & Agency Obligations................ 5.6
Pharmaceuticals..................................... 2.7
Telephone & Communications.......................... 2.5
Mortgage Banks...................................... 2.3
Tobacco............................................. 1.9
Bank Holding Companies - Domestic................... 1.7
Automotive Rental & Leasing......................... 0.7
Household Appliances................................ 0.4
Computer Rental and Leasing......................... 0.3
Regulating Controls................................. 0.2
------
98.5
Other assets in excess of liabilities............... 1.5
------
100.0%
------
------
</TABLE>
- --------------------------------------------------------------------------------
- ----- 6 See Notes to Financial Statements.
<PAGE>
<PAGE>
Statement of Assets and Liabilities PRUDENTIAL MONEYMART ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Assets
December 31, 1995
-----------------
Investments, at amortized cost which approximates
value................................................. $ 7,114,348,252
Cash.........................................................................
........................... 8,727
Receivable for Fund shares
sold.........................................................................
208,986,615
Interest
receivable...................................................................
.................. 37,719,030
Deferred expenses and other
assets......................................................................
208,464
-----------------
Total
assets.......................................................................
.................. 7,361,271,088
-----------------
Liabilities
Payable for Fund shares
reacquired......................................................................
131,662,607
Dividends
payable......................................................................
................. 3,558,462
Accrued
expenses.....................................................................
................... 2,110,544
Management fee
payable......................................................................
............ 1,855,219
Distribution fee
payable......................................................................
.......... 426,293
-----------------
Total
liabilities..................................................................
.................. 139,613,125
-----------------
Net
Assets.......................................................................
....................... $ 7,221,657,963
-----------------
-----------------
Net assets were comprised of:
Common stock, at par ($.10 par value; 15 billion shares authorized for
issuance)..................... $ 722,165,796
Paid-in capital in excess of
par.....................................................................
6,499,492,167
-----------------
Net assets at December 31,
1995.........................................................................
$ 7,221,657,963
-----------------
-----------------
Net asset value, offering price and redemption price per share
($7,221,657,963 3 7,221,657,963 shares of common stock issued and
outstanding)....................... $1.00
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 7 -----
<PAGE>
<PAGE>
PRUDENTIAL MONEYMART ASSETS
Statement of Operations
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
Net Investment Income December 31, 1995
-----------------
<S> <C>
Income
Interest................................. $ 419,430,742
-----------------
Expenses
Management fee........................... 20,840,442
Distribution fee......................... 8,643,150
Transfer agent's fees and expenses....... 15,942,000
Reports to shareholders.................. 966,000
Registration fees........................ 545,000
Custodian's fees and expenses............ 276,000
Insurance expense........................ 158,000
Directors' fees and expenses............. 80,000
Audit fees and expenses.................. 37,000
Legal fees and expenses.................. 33,000
Miscellaneous............................ 54,354
-----------------
Total expenses........................ 47,574,946
-----------------
Net investment income....................... 371,855,796
Net Realized Gain on Investments
Net realized gain on investment
transactions............................. 516,705
-----------------
Net Increase in Net Assets
Resulting from Operations................... $ 372,372,501
-----------------
-----------------
</TABLE>
PRUDENTIAL MONEYMART ASSETS
Changes in Net Assets
<TABLE>
<CAPTION>
Increase (Decrease) Year Ended December 31, 1995
in Net Assets 1995 1994
---------------- ----------------
<S> <C> <C>
Operations
Net investment income... $ 371,855,796 $ 258,277,123
Net realized gain on
investment
transactions......... 516,705 147,440
---------------- ----------------
Net increase in net
assets
resulting from
operations........... 372,372,501 258,424,563
---------------- ----------------
Dividends and distributions
to shareholders......... (372,372,501) (258,424,563)
---------------- ----------------
Fund share transactions
(at $1 per share)
Proceeds from shares
subscribed........... 29,233,009,828 26,869,523,481
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends and
distributions........ 354,506,489 245,955,917
Cost of shares
reacquired........... (28,910,738,397) (27,889,232,548)
---------------- ----------------
Net increase (decrease)
in net assets from
Fund share
transactions......... 676,777,920 (773,753,150)
---------------- ----------------
Total increase
(decrease).............. 676,777,920 (773,753,150)
Net Assets
Beginning of year.......... 6,544,880,043 7,318,633,193
---------------- ----------------
End of year................ $ 7,221,657,963 $ 6,544,880,043
---------------- ----------------
---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
- ----- 8 See Notes to Financial Statements.
<PAGE>
<PAGE>
Notes to Financial Statements PRUDENTIAL MONEYMART ASSETS
- --------------------------------------------------------------------------------
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 Policies
The following is a summary of significant generally accepted 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.
In connection with transactions in repurchase agreements with U.S. financial
institutions, it is the Fund's policy that its custodian or designated
subcustodians, as the case may be under triparty repurchase agreements, take
possession of the underlying collateral securities, the value of which exceeds
the principal amount of the repurchase transaction including accrued interest.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
Securities Transactions and Net 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. Expenses are
recorded on the accrual basis which may require the use of certain estimates by
management.
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 and Distribution Agreements
The Fund has a management agreement with Prudential 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 had a distribution agreement with Prudential Mutual Fund Distributors,
Inc. (``PMFD''), which acted as the distributor of the Fund through January 1,
1996. Effective January 2, 1996, Prudential Securities Incorporated (``PSI'')
became the distributor of the Fund and is serving the Fund under the same terms
and conditions as under the arrangement with PMFD. The Fund reimbursed PMFD for
distributing and servicing the Fund's shares pursuant to the plan of
distribution at an annual rate of .125 of 1% of the Fund's average daily net
assets. The distribution fee is accrued daily and payable monthly.
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 Transactions with Affiliates
Prudential Mutual Fund Services, Inc. (``PMFS''), a wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent. During the year ended December 31,
1995, the Fund incurred fees of approximately $15,231,600 for the services of
PMFS. As of December 31, 1995, approximately
- --------------------------------------------------------------------------------
9 -----
<PAGE>
<PAGE>
Notes to Financial Statements PRUDENTIAL MONEYMART ASSETS
- --------------------------------------------------------------------------------
$1,269,000 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.
- ------------------------------------------------------------
Note 4. Joint Repurchase Agreement Account
The Fund, along with other affiliated registered investment companies, transfers
uninvested cash balances into a single joint account, the daily aggregate
balance of which is invested in one or more repurchase agreements collateralized
by U.S. Treasury or Federal agency obligations. As of December 31, 1995, the
Fund has a 0.01% undivided interest in the joint account. The undivided interest
for the Fund represents $144,000 in the principal amount. As of such date, each
repurchase agreement in the joint account and the collateral therefore were as
follows:
Bear, Stearns & Co. Inc., 5.80%, in the principal amount of $262,000,000,
repurchase price $262,168,844, due 1/2/96. The value of the collateral including
accrued interest is $267,947,172.
BT Securities Corp., 5.75%, in the principal amount of $61,765,000, repurchase
price $61,804,461, due 1/2/96. The value of the collateral including accrued
interest is $63,059,883.
Goldman, Sachs & Co., 5.90%, in the principal amount of $365,000,000, repurchase
price $365,239,278, due 1/2/96. The value of the collateral including accrued
interest is $372,300,053.
Morgan Stanley & Co., Inc., 5.89%, in the principal amount of $103,000,000,
repurchase price $103,067,408, due 1/2/96. The value of the collateral including
accrued interest is $105,192,608.
Smith Barney, Inc., 5.83%, in the principal amount of $365,000,000, repurchase
price $365,236,439, due 1/2/96. The value of the collateral including accrued
interest is $372,300,416.
- --------------------------------------------------------------------------------
- ----- 10
<PAGE>
<PAGE>
Financial Highlights PRUDENTIAL MONEYMART ASSETS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended December 31,
- ----------------------------------------------------------------------
1995
1994 1993 1992 1991
----------
- ---------- ---------- ---------- ----------
<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............ .054
.037 .027 .035 .058
Dividends and distributions to shareholders............. (.054)
(.037) (.027) (.035) (.058)
----------
- ---------- ---------- ---------- ----------
Net asset value, end of year............................ $ 1.000 $
1.000 $ 1.000 $ 1.000 $ 1.000
----------
- ---------- ---------- ---------- ----------
----------
- ---------- ---------- ---------- ----------
TOTAL RETURN(a)......................................... 5.51%
3.72% 2.70% 3.59% 5.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)........................... $7,221,658
$6,544,880 $7,318,633 $6,703,281 $7,138,159
Average net assets (000)................................ $6,914,520
$7,071,381 $7,742,989 $7,116,739 $7,763,251
Ratios to average net assets:
Expenses, including distribution fee.................. .69%
.71% .71% .66% .68%
Expenses, excluding distribution fee.................. .56%
.58% .58% .54% .56%
Net investment income................................. 5.38%
3.65% 2.63% 3.43% 5.72%
</TABLE>
<TABLE>
<C> <S>
- ---------------
(a) 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.
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 11 -----
<PAGE>
<PAGE>
Independent Auditors' Report PRUDENTIAL MONEYMART ASSETS
- --------------------------------------------------------------------------------
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,
1995, 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, 1995 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, 1995, 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 6, 1996
- --------------------------------------------------------------------------------
- ----- 12
<PAGE>
<PAGE>
Getting The Most From Your Prudential Mutual Fund
How many times have you read these letters -- or other financial materials --
and stumbled across a word that you don't understand?
Many shareholders have run into the same problem. We'd like to help. So we'll
use this space from time to time to explain some of the words you might have
read, but not understood. And if you have a favorite word that no one can
explain to your satisfaction, please write to us.
Basis Point: One 1/100th of 1%. For example, one half of one percentage point
is 50 basis points.
Call Option: A contract giving the holder a right to buy stocks or bonds at a
predetermined price (called the strike price) before a predetermined expiration
date. A buyer of a call option generally expects to benefit from a rise in the
price of the stock or bond.
Capital Gain/Capital Loss: The difference between the cost of a capital asset
(for example, a stock, bond or mutual fund share) and its selling price. Under
current law the federal income tax rate for individuals on a long-term gain is
28%.
Collateralized Mortgage Obligations (CMOs): Pools of mortgage-backed securities
sliced in maturity ranges that bear differing interest rates. These instruments
are sensitive to changes in interest rates and homeowner refinancing activity.
They are subject to prepayment and maturity extension risk.
Derivatives: Securities that derive their value from another security. The rate
of return of these financial products rise and fall -- sometimes very
suddenly -- in response to changes in some specific interest rate, currency,
stock or other variable.
Discount Rate: The interest rate charged by the Federal Reserve on loans to
banks and other depository institutions.
Federal Funds Rate: The interest rate charged by one bank to another on
overnight loans.
Futures Contract: An agreement to deliver a specific amount of a commodity or
financial instruments at a set price at a stipulated time in the future.
Leverage: The use of borrowed assets to enhance return on equity. The
expectation is that the interest rate charged will be lower than the return on
the investment. While leverage can increase profits, it can also magnify
losses.
Liquidity: The ease with which a financial instrument (or mutual fund) can be
bought or sold (converted into cash) in the financial markets.
Option: An agreement to buy something, such as shares of stock, by a certain
time for a specified price. An option need not be exercised. In fact, most
expire unexercised.
Price/Earnings Ratio: The price of a share of stock divided by the earnings per
share for a 12-month period.
Spread: The difference between two values; most often used to describe the
difference between prices bid and asked for a security.
Yankee Bond: A bond denominated in U.S. dollars but sold by a foreign company
or government in the U.S. market.
<PAGE>
Prudential Mutual Funds
One Seaport Plaza
New York, NY 10292
Toll Free (800) 225-1852
Internet Address:
http:\\www.prudential.com
(LOGO)
Directors
Delayne Dedrick Gold
Harry A. Jacobs, Jr.
Thomas A. Owens, Jr.
Richard A. Redeker
Sidney M. Spielvogel
Nancy H. Teeters
Robert H. Wellington
Officers
Richard A. Redeker, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant 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 Securities Incorporated
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 Auditors
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by a current prospectus.
74435H102 MF108E
Cat. #430252D
