+(ICON)
Prudential
MoneyMart
Assets, Inc.
SEMIANNUAL
REPORT
June 30, 1996
(LOGO)
<PAGE>
Prudential MoneyMart Assets, Inc.
Performance At A Glance.
During the past six months, opinions swung wildly on where interest
rates were
headed. Your Fund went from being defensive early in the year to
being invested
in new, higher yielding securities as June ended. Throughout this
time period
your Fund offered competitive yields, maintained a high credit
quality and a
stable $1 net asset value. On June 30, 1996, the Prudential
MoneyMart Assets
7-day current yield (Class A shares) stood at 4.79% compared to
4.71% for the
average money market fund tracked by IBC Financial Data.
<TABLE>
<CAPTION>
Fund Facts <C> <C> <C>
As of 6/30/96
7-Day Net Asset Weighted
Avg. Total Net
Current Yld. Value Mat. (WAM)
Assets (mil.)
Class A* 4.79% $1 70 Days
$7,062
Class Z* 4.92 $1 70 Days
$98
IBC Financial Data
Money Fund Avg.
(General Purpose**) 4.71 $1 56 Days
N/A
</TABLE>
Note: Yields will fluctuate from time to time and past performance
is not
indicative 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.
* Class Z shares for this Fund became effective on March 1, 1996.
Existing
shares of the portfolio were designated Class A on March 1,
1996.
** This is the average 7-day current yield, NAV and WAM of 272
funds in the
International Business Communications Financial Data's (formerly
IBC/Donoghue) general purpose money fund category as of June 30,
1996.
Money Fund Yields Fell And Then Stabilized.
Prudential MoneyMart Assets (Class A shares)
IBC Financial Data Money Fund Avg. (General Purpose)
(CHART)
Weekly 7-day current yields of Prudential MoneyMart Assets and
the IBC Financial Data general purpose money fund average.
How Investments Compared.
(As of 6/30/96)
(CHART)
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
included historical
20-year average annual returns. These returns assume the
reinvestment of
dividends.
U.S. Growth Funds will fluctuate a great deal. Investors have
received higher
historical total returns from stocks than from most other
investments. Smaller
capitalization stocks offer greater potential for long-term growth
but may
be more volatile than larger capitalization stocks.
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 significantly) 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.
<PAGE>
Joseph M. Tully, Fund Manager
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 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. There
can be no assurance that the Fund will achieve its financial
objective.
A Word About Quality.
As of June 30, 1996, substantially 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. 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.
Strategy Session.
When we last wrote to you six months ago, short-term interest rates
(the
Federal Funds rate) stood at 5.25%. Many investors believed that
the Federal
Reserve would continue to lower rates in an aggressive fashion.
However, we
felt that yields had fallen too far, too fast. We believed the
Federal Reserve
would most likely follow a "go-slow" policy of gently lowering
rates to help
stimulate a sluggish U.S. economy. So, early this year, we acted on
our beliefs
and shortened the Fund's average maturity. Our instincts were
right. And as
yields rose, we adjusted the Fund's WAM to be closer to that of the
average
fund.
In March, financial opinion swung dramatically in the opposite
direction after
the federal government released its February jobs report, which
revealed that
businesses were creating far more new jobs than anyone anticipated.
This implied
the economy was growing faster than forecast and suggested that
higher levels of
inflation might be around the corner. Instead of lower interest
rates, money
fund managers now faced the prospect that the Federal Reserve would
raise
interest rates. As a result, short-term yields were bid up in
anticipation of
the central bank aggressively raising short-term interest rates to
slow
economic growth and to keep inflation in check.
A Voice of Moderation.
Anticipating moves by the central bank is one key to preserving
competitive
yields for a money fund.We believe that there's a distinct
possibility that
the Federal Reserve may raise interest rates sometime this year.
Unlike others,
however, we believe that the central bank will gradually raise
rates, if
necessary, just as they did when lowering them in 1995.
Therefore, we adjusted our strategy and invested in shorter term
securities in
the one-month range and longer term securities of one year to 13
months. We
liked the higher yields available in the one-year range and
believed that they
adequately compensated investors should the Federal Reserve raise
rates down the
road. The shorter term securities, meanwhile, allowed us to stay
flexible just
in case market conditions changed.
<PAGE>
What Went Well.
We Did Not Follow
The Crowd.
In January and February most people thought that the Federal
Reserve would
aggressively lower short-term rates. We did not follow the crowd.
We shortened
our weighted average maturity and waited as rates eventually rose.
It was
a good move.
And Not So Well.
Caught Off-Guard.
We were caught off-guard in March when the U.S. government released
its February
jobs report which showed that businesses nationwide had created far
more new
positions than anticipated. While this was good news to many
(especially those
who found work), signs of economic strength can raise fears of
inflation which
always makes bond investors skittish. Looking back, we could have
been more
prepared for this occurrence by maintaining our defensive posture
for a couple
of more weeks until the report's release. We then would have been
in a better
position to take advantage of the rising yields that accompanied
this strong
economic news.
Weighted Average Maturity Is Now Longer Than The Average Fund.
<CHART>
Yields Are Rising.
<CHART>
Looking Ahead.
The Federal Reserve wants to promote steady, non-inflationary
growth -- but
there are many signs pointing to an economy that may be growing too
fast right
now. In theory, the faster a full capacity economy grows, the more
likely that
inflation levels will rise. If this happens, we would not be
surprised to see
the Federal Reserve raise short-term interest rates (the Federal
Funds rate) by
25 basis points to 5.50% later this year (basis point is 1/100th of
a percentage
point). However, we question whether the current economic "boomlet"
has much
staying power. Given the central bank's history of taking measured
steps, we
think any moves will be modest.
1
<PAGE>
President's Letter
August 1, 1996
<PICTURE>
Dear Shareholder:
Last year, U.S. stocks and bonds generally posted extraordinary
returns.
Investors celebrated this performance by putting record amounts of
new money
into mutual funds in the first few months of 1996. According to
figures released
by the Investment Company Institute, a mutual fund industry trade
group, new
investments in mutual funds reached an all-time monthly high of $33
billion in
January of 1996. An additional $66 billion was invested in the
following three
months, although this rapid inflow subsided somewhat in late
spring.
While we are pleased that mutual funds are attracting new
investors, we're
concerned that some of them may be "buying last year's returns."
Few expect
1995's virtual non-stop returns from the stock and bond markets. In
fact, 1996's
markets have been volatile so far (stock and bond prices go down
just as they go
up). There's no better time than now to be talking with your
Financial Advisor
or Registered Representative. She or he can help you determine
reasonable
expectations about both the potential performance and risks
associated with
your investments.
Board of Directors Election.
In addition to this report, we are including a notice about a
special
shareholder meeting to elect new Prudential mutual fund boards of
directors.
Your Board of Directors has approved a proposal to place a common
board of
experienced directors across many of Prudential's mutual funds to
improve
business efficiency. The enclosed material contains more complete
information
about this proposal.
Changes at Prudential.
Finally, there have been some important changes recently at
Prudential that were
made with you in mind. Prudential Mutual Funds has moved under the
umbrella of
Prudential's newly created "Money Management Group." This group
manages and
administers nearly $190 billion in client assets and provides
mutual funds,
annuities, defined benefit and defined contribution plans to our
individual
and institutional investors. We plan to improve the range and
quality of
investment products and services that we can provide you by better
leveraging
Prudential's strengths. There will, however, be no change in the
service you
receive from your Financial Advisor, Registered Representative or
our Customer
Service unit.
We're excited about our future and hope that you are, too. Thank
you for your
continued support and confidence in Prudential Mutual Funds.
Sincerely,
Richard A. Redeker
President
2
<PAGE>
Portfolio of Investments as of PRUDENTIAL MONEYMART
June 30, 1996 (Unaudited) ASSETS, INC.
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
------------------------------------------------------------
Asset Backed SecuritiesD--4.4%
SMM Trust,
$ 63,300 5.496%, 7/15/96, Notes 1995-O $ 63,297,195
252,000 5.496%, 7/15/96, Notes 1995-Q 251,987,658
--------------
315,284,853
- ------------------------------------------------------------
Bank Notes--6.3%
American Express Centurion BankD
28,000 5.450%, 7/15/96 27,994,926
26,000 5.466%, 7/15/96 25,995,897
10,000 5.484%, 7/15/96 10,000,230
20,000 5.435%, 7/19/96 19,997,223
Bank of New York
12,000 4.95%, 8/16/96 11,992,479
FCC National Bank
6,000 5.03%, 7/2/96 5,999,978
46,000 5.77%, 4/15/97 45,979,130
First National Bank of Chicago
30,000 5.32%, 7/22/96 29,998,966
NationsBank of Texas, N.A.
8,000 5.50%, 7/10/96 8,000,051
NBD Bank N.A., Michigan
26,000 5.32%, 7/29/96 25,998,885
Seattle First National Bank
195,000 5.80%, 5/9/97 194,904,287
United States National Bank of
Oregon
43,000 5.32%, 7/30/96 42,998,200
--------------
449,860,252
- ------------------------------------------------------------
Certificates Of Deposit - Domestic--0.2%
Barnett Bank of South Florida
12,050 5.39%, 7/8/96 12,049,829
- ------------------------------------------------------------
Certificates Of Deposit - Eurodollar--1.6%
Banque Nationale De Paris
8,000 5.42%, 7/11/96 8,000,109
Bayerische Hypotheken-und
Wechsel-Bank
6,000 5.34%, 9/18/96 5,999,190
Bayerische Landesbank Girozentrale
$ 14,000 5.43%, 10/18/96 $ 14,000,412
Bayerische Vereinsbank Bank
27,000 5.41%, 10/2/96 27,000,624
Dresdner Bank
5,000 5.35%, 7/1/96 5,000,000
Rabobank Nederland
10,000 5.12%, 9/3/96 9,994,509
Toronto Dominion Bank
16,000 5.34%, 7/31/96 15,999,136
30,000 5.34%, 8/28/96 29,996,637
--------------
115,990,617
- ------------------------------------------------------------
Certificates Of Deposit - Yankee--6.4%
Banque Nationale De Paris
25,000 5.35%, 7/5/96 24,999,943
17,000 5.40%, 7/11/96 17,000,138
Commerzbank
57,000 5.31%, 7/1/96 57,000,000
12,000 5.31%, 9/23/96 11,994,984
50,000 5.33%, 9/25/96 49,981,213
Deutsche Bank
80,000 5.53%, 4/2/97 79,815,788
100,000 5.80%, 5/13/97 100,000,000
Dresdner Bank
8,000 5.13%, 11/22/96 7,985,963
Landesbank Hessen-Thuringen
Girozentrale
110,000 5.70%, 4/29/97 109,874,734
--------------
458,652,763
- ------------------------------------------------------------
Commercial Paper--58.9%
A. H. Robins Co., Inc.
36,140 5.35%, 7/10/96 36,091,663
8,000 5.32%, 7/23/96 7,973,991
ABN-Amro N.A. Finance, Inc.
14,000 5.30%, 8/26/96 13,884,578
American Express Credit Corp.
66,000 5.28%, 7/15/96 65,864,480
- -----------------------------------------------------------------
- ---------------
See Notes to Financial Statements.
3 -----
<PAGE>
<PAGE>
Portfolio of Investments as of PRUDENTIAL MONEYMART
June 30, 1996 (Unaudited) ASSETS, INC.
- ------------------------------------------------------------
- ------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
------------------------------------------------------------
Commercial Paper (cont'd)
American Honda Finance Corp.
$ 52,250 5.35%, 7/8/96 $ 52,195,645
5,000 5.35%, 7/9/96 4,994,056
20,000 5.40%, 7/11/96 19,970,000
6,858 5.34%, 7/23/96 6,835,620
15,000 5.37%, 8/29/96 14,867,987
Aristar, Inc.
17,500 5.36%, 7/2/96 17,497,394
4,000 5.40%, 7/9/96 3,995,200
9,000 5.42%, 7/9/96 8,989,160
Associates Corp. of North America
10,000 5.30%, 7/9/96 9,988,222
50,000 5.30%, 7/10/96 49,933,750
50,000 5.30%, 7/11/96 49,926,389
75,000 5.38%, 8/20/96 74,439,583
Avco Financial Services, Inc.
70,000 5.35%, 7/10/96 69,906,375
BankAmerica Corp.
150,000 5.31%, 8/20/96 148,893,750
Barnett Bank, Inc.
15,000 5.42%, 7/9/96 14,981,933
Beneficial Corp.
77,000 5.29%, 7/26/96 76,717,132
100,000 5.38%, 8/19/96 99,267,722
4,000 5.38%, 8/21/96 3,969,513
BHF Finance, Inc.
7,000 5.25%, 7/26/96 6,974,479
Bradford & Bingley Building
Society
26,000 5.35%, 7/12/96 25,957,497
Caterpillar Financial Services
Corp.
10,000 5.32%, 8/15/96 9,933,500
11,000 5.25%, 9/19/96 10,871,667
8,100 5.35%, 10/10/96 7,978,421
Ciesco, L.P.
33,000 5.30%, 7/12/96 32,946,558
30,000 5.38%, 8/8/96 29,829,633
CIT Group Holdings, Inc.
84,000 5.28%, 7/15/96 83,827,520
61,000 5.33%, 8/13/96 60,611,650
50,000 5.38%, 8/19/96 49,633,861
50,000 5.38%, 8/20/96 49,626,389
CIT Group Holdings, Inc. (cont'd)
$ 28,000 5.38%, 8/22/96 $ 27,782,409
25,000 5.38%, 8/23/96 24,801,986
Coca-Cola Enterprises, Inc.
21,000 5.35%, 7/1/96 21,000,000
Corporate Asset Funding Co., Inc.
26,000 5.30%, 7/18/96 25,934,928
Corporate Receivables Corp.
34,500 5.30%, 8/8/96 34,306,992
Countrywide Home Loan, Inc.
38,000 5.40%, 7/15/96 37,920,200
12,000 5.42%, 7/22/96 11,962,060
35,000 5.42%, 7/25/96 34,873,533
33,000 5.43%, 8/20/96 32,751,125
15,120 5.43%, 8/22/96 15,001,409
CXC, Inc.
10,000 5.35%, 7/18/96 9,974,736
21,000 5.34%, 7/19/96 20,943,930
Duracell, Inc.
13,000 5.40%, 7/22/96 12,959,050
Eiger Capital Corp.
5,000 5.35%, 7/10/96 4,993,313
Enterprise Funding Corp.
5,002 5.33%, 7/15/96 4,991,632
37,655 5.38%, 7/29/96 37,497,435
5,829 5.40%, 7/31/96 5,802,769
27,869 5.41%, 8/12/96 27,693,100
Falcon Asset Securitization Corp.
52,200 5.38%, 7/22/96 52,036,179
Finova Capital Corp.
14,600 5.45%, 7/16/96 14,566,846
3,000 5.43%, 7/22/96 2,990,498
14,900 5.47%, 7/22/96 14,852,457
8,500 5.45%, 7/23/96 8,471,690
36,000 5.37%, 7/30/96 35,844,270
9,000 5.47%, 8/8/96 8,948,035
3,000 5.46%, 8/12/96 2,980,890
50,000 5.47%, 8/19/96 49,627,736
Ford Motor Credit Co.
129,000 5.30%, 7/9/96 128,848,067
19,000 5.29%, 8/2/96 18,910,658
85,000 5.38%, 8/19/96 84,377,564
129,000 5.38%, 8/22/96 127,997,527
</TABLE>
- -----------------------------------------------------------------
- ---------------
4 See Notes to
Financial Statements.
<PAGE>
<PAGE>
Portfolio of Investments as of PRUDENTIAL MONEYMART
June 30, 1996 (Unaudited) ASSETS, INC.
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
------------------------------------------------------------
Commercial Paper (cont'd)
General Electric Capital Corp.
$ 64,000 5.33%, 8/12/96 $ 63,602,027
124,000 5.33%, 8/16/96 123,155,491
63,000 5.39%, 8/27/96 62,462,347
General Motors Acceptance Corp.
135,000 5.34%, 9/13/96 133,518,150
122,000 5.34%, 9/16/96 120,606,557
GTE Corp.
22,500 5.39%, 7/15/96 22,452,838
23,900 5.42%, 7/26/96 23,810,043
25,773 5.43%, 7/30/96 25,660,265
Heller Financial Services, Inc.
14,000 5.46%, 7/8/96 13,985,137
3,000 5.48%, 7/16/96 2,993,150
60,000 5.44%, 7/22/96 59,809,600
13,000 5.49%, 7/29/96 12,944,490
Household Finance Corp.
52,000 5.38%, 8/20/96 51,611,444
ITT Industries, Inc.
12,000 5.35%, 7/8/96 11,987,517
9,000 5.37%, 7/9/96 8,989,260
25,000 5.35%, 7/15/96 24,947,986
Lehman Brothers Holdings, Inc.
190,000 5.55%, 7/8/96 189,794,958
Merrill Lynch & Co., Inc.
110,000 5.40%, 7/15/96 109,769,000
Morgan Stanley Group, Inc.
62,418 5.29%, 7/9/96 62,344,624
8,000 5.33%, 7/10/96 7,989,340
Newell Co.
29,000 5.42%, 7/22/96 28,908,312
Norwest Financial, Inc.
16,000 5.35%, 7/10/96 15,978,600
16,000 5.34%, 7/11/96 15,976,267
NYNEX Corp.
9,000 5.42%, 7/22/96 8,971,545
27,250 5.44%, 7/22/96 27,163,527
45,000 5.42%, 8/16/96 44,688,350
Philip-Morris Cos., Inc.
47,000 5.30%, 7/19/96 46,875,450
34,000 5.39%, 7/25/96 33,877,827
59,000 5.38%, 8/20/96 58,559,139
PNC Funding Corp.
$ 39,000 5.40%, 7/11/96 $ 38,941,500
Preferred Receivables Funding
Corp.
15,000 5.32%, 7/1/96 15,000,000
6,000 5.35%, 7/12/96 5,990,192
83,500 5.37%, 7/15/96 83,325,624
74,000 5.37%, 7/17/96 73,823,387
8,000 5.37%, 7/24/96 7,972,553
9,000 5.37%, 7/25/96 8,967,780
6,525 5.30%, 7/29/96 6,498,102
Riverwoods Funding Corp.
22,000 5.30%, 7/12/96 21,964,372
Sears Roebuck Acceptance Corp.
22,000 5.40%, 7/25/96 21,920,800
Smith Barney, Inc.
20,000 5.36%, 7/2/96 19,997,022
36,000 5.37%, 7/9/96 35,957,040
60,000 5.38%, 7/15/96 59,874,467
Transamerica Corp.
14,605 5.28%, 7/11/96 14,583,579
4,145 5.31%, 9/9/96 4,102,203
Transamerica Financial Corp.
31,129 5.31%, 10/15/96 30,642,298
Travelers/Aetna Property Casualty
Corp.
30,000 5.35%, 7/10/96 29,959,875
UBS Finance Delaware, Inc.
6,246 5.58%, 7/1/96 6,246,000
WCP Funding, Inc.
25,000 5.29%, 7/11/96 24,963,264
39,900 5.40%, 7/25/96 39,756,360
Westpac Capital Corp.
46,000 5.35%, 7/1/96 46,000,000
Whirlpool Financial Corp.
44,990 5.40%, 7/17/96 44,882,024
--------------
4,215,820,025
- ------------------------------------------------------------
Corporate Bonds--0.2%
General Motors Acceptance Corp.
6,000 8.625%, 7/15/96 6,005,708
9,630 8.25%, 8/1/96 9,647,258
--------------
15,652,966
</TABLE>
- -----------------------------------------------------------------
- ---------------
See Notes to Financial Statements.
5 -----
<PAGE>
<PAGE>
Portfolio of Investments as of June 30, 1996 (Unaudited)
PRUDENTIAL MONEYMART
ASSETS, INC.
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Principal
Amount
Amount
(000) Description Value (Note 1)
(000) Description Value (Note 1)
<C> <S> <C>
<C> <C> <C>
------------------------------------------------------------
------------------------------------------------------------
Loan Participations--0.4%
Morgan Stanley Group, Inc.
$ 33,000 5.42%, 7/15/96 $ 33,000,000
- ------------------------------------------------------------
Medium - Term Obligations--12.7%
Beneficial Corp.D
77,000 5.459%, 9/10/96 76,974,186
Federal National Mortgage
AssociationD
133,000 5.495%, 9/27/96 133,000,000
109,000 5.495%, 10/4/96 108,964,635
Ford Motor Credit Co.
4,000 9.00%, 7/26/96 4,008,088
General Motors Acceptance Corp.
4,275 8.80%, 7/8/96 4,277,226
55,500 5.44%, 7/22/96D 55,491,511
29,000 5.504%, 8/2/96D 28,997,815
15,000 5.516%, 8/21/96D 14,999,377
Goldman, Sachs Group, L.P.D
13,000 5.625%, 8/23/96 13,000,000
355,000 5.707%, 11/22/96 355,000,000
Merrill Lynch & Co., Inc.D
112,000 5.453%, 7/10/96 111,991,019
--------------
906,703,857
- ------------------------------------------------------------
Repurchase Agreement--1.4%
99,657 Morgan Stanley Group, Inc., 5.41%,
dated 6/24/96, due 7/1/96 in
the amount of $99,761,834 (cost
$99,657,000; the value of the
collateral including accrued
interest is $102,315,765) 99,657,000
- ------------------------------------------------------------
U.S. Government Coupon Issue--5.6%
Federal National Mortgage
Association
97,000 5.48%, 4/24/97 96,755,732
United States Treasury Notes
200,000 6.875%, 2/28/97 202,215,894
100,000 6.875%, 3/31/97 101,230,675
--------------
400,202,301
Variable Rate Renewable NotesD--2.1%
Morgan Stanley Group, Inc.
$ 55,000 5.660%, 7/15/96 $ 55,000,000
95,000 5.625%, 8/15/96 95,000,000
--------------
150,000,000
- ------------------------------------------------------------
Total Investments--100.2%
(amortized cost $7,172,874,463*) 7,172,874,463
Liabilities in excess of other
assets--(0.2%) (13,070,210)
--------------
Net Assets--100% $7,159,804,253
--------------
--------------
</TABLE>
- ---------------
* The cost of securities for federal income tax purposes is
substantially the same as for financial reporting
purposes.
D 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.
The industry classification of portfolio holdings and liabilities
in excess of
other assets shown as a percentage of net assets as of June 30,
1996 was as
follows:
<TABLE>
<S> <C>
Personal Credit Institutions......................... 20.4%
Security Brokers & Dealers........................... 17.5
Commercial Banks..................................... 16.4
Short-Term Business Credit........................... 12.9
Asset Backed Securities.............................. 12.4
Federal Credit Agencies.............................. 4.7
U.S. Government & Agency Obligations................. 4.2
Bank Holding Companies - Domestic.................... 2.3
Telephone & Communications........................... 2.1
Tobacco.............................................. 2.0
Mortgage Banks....................................... 1.9
Household Appliances................................. 0.6
Motor Vehicle Parts.................................. 0.6
Pharmaceuticals...................................... 0.6
Fire & Marine Casualty Insurance..................... 0.4
Containers........................................... 0.4
Beverages............................................ 0.3
Financial Services................................... 0.3
Miscellaneous Electric Equipment & Supplies.......... 0.2
-----
100.2
Liabilities in excess of other assets................ (0.2)
-----
100.0%
-----
-----
</TABLE>
- -----------------------------------------------------------------
- ---------------
6 See Notes to
Financial Statements.
<PAGE>
<PAGE>
Statement of Assets and Liabilities PRUDENTIAL MONEYMART
ASSETS, INC.
(Unaudited)
- -----------------------------------------------------------------
- ---------------
<TABLE>
<CAPTION>
<S> <C>
Assets
June 30, 1996
--------------
Investments, at amortized cost which approximates
value.....................................................
$7,172,874,463
Cash.............................................................
........................................... 7,052
Receivable for Fund shares
sold.............................................................
................ 83,966,195
Interest
receivable.......................................................
.................................. 33,621,582
Deferred expenses and other
assets...........................................................
............... 258,157
--------------
Total
assets...........................................................
.................................. 7,290,727,449
--------------
Liabilities
Payable for Fund shares
reacquired.......................................................
................... 119,204,521
Dividends
payable..........................................................
................................. 7,112,905
Accrued
expenses.........................................................
................................... 2,374,042
Management fee
payable..........................................................
............................ 1,838,688
Distribution fee
payable..........................................................
.......................... 393,040
--------------
Total
liabilities......................................................
.................................. 130,923,196
--------------
Net
Assets...........................................................
....................................... $7,159,804,253
--------------
--------------
Net assets were comprised of:
Common stock, at
par..............................................................
....................... $ 715,980,425
Paid-in capital in excess of
par..............................................................
........... 6,443,823,828
--------------
Net assets at June 30,
1996.............................................................
.................... $7,159,804,253
--------------
--------------
Class A:
Net asset value, offering price and redemption price per share
($7,062,230,772 / 7,062,230,772 shares of common stock issued
and outstanding)........................ $1.00
Class Z:
Net asset value, offering price and redemption price per share
($97,573,481 / 97,573,481 shares of common stock issued and
outstanding).............................. $1.00
</TABLE>
- -----------------------------------------------------------------
- ---------------
See Notes to Financial Statements.
7 -----
<PAGE>
<PAGE>
PRUDENTIAL MONEYMART ASSETS, INC.
Statement of Operations (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
Net Investment Income June 30, 1996
<S> <C>
Income
Interest................................... $206,391,510
-------------
Expenses
Management fee............................. 11,254,568
Distribution fee--Class A.................. 4,605,428
Transfer agent's fees and expenses......... 8,100,000
Reports to shareholders.................... 473,000
Custodian's fees and expenses.............. 117,000
Registration fees.......................... 74,000
Insurance expense.......................... 51,000
Directors' fees and expenses............... 39,000
Audit fees and expenses.................... 19,000
Legal fees and expenses.................... 12,000
Miscellaneous.............................. 30,906
-------------
Total expenses.......................... 24,775,902
-------------
Net investment income......................... 181,615,608
Net Realized Gain on Investments
Net realized gain on investment
transactions............................... 367,933
-------------
Net Increase in Net Assets
Resulting from Operations..................... $181,983,541
-------------
-------------
</TABLE>
PRUDENTIAL MONEYMART ASSETS, INC.
Statement of Changes in Net Assets (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) June 30, December 31,
in Net Assets 1996 1995
<S> <C> <C>
Operations
Net investment income... $ 181,615,608 $ 371,855,796
Net realized gain on
investment
transactions......... 367,933 516,705
---------------- ----------------
Net increase in net
assets
resulting from
operations........... 181,983,541 372,372,501
---------------- ----------------
Dividends and distributions
to shareholders (Note 1)
Class A................. (180,457,577) (372,372,501)
Class Z................. (1,525,964) --
---------------- ----------------
(181,983,541) (372,372,501)
---------------- ----------------
Fund share transactions
(net of share
conversions) (Note 4)
Proceeds from shares
subscribed........... 15,709,939,712 29,233,009,828
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends and
distributions........ 170,510,904 354,506,489
Cost of shares
reacquired........... (15,942,304,326) (28,910,738,397)
---------------- ----------------
Net increase (decrease)
in net assets from
Fund share
transactions......... (61,853,710) 676,777,920
---------------- ----------------
Total increase
(decrease).............. (61,853,710) 676,777,920
Net Assets
Beginning of period........ 7,221,657,963 6,544,880,043
---------------- ----------------
End of period.............. $ 7,159,804,253 $ 7,221,657,963
---------------- ----------------
---------------- ----------------
</TABLE>
- -----------------------------------------------------------------
- ---------------
8 See Notes to
Financial Statements.
<PAGE>
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL MONEYMART
ASSETS, INC.
- -----------------------------------------------------------------
- ---------------
Prudential-Bache MoneyMart Assets Inc., doing business as
Prudential MoneyMart
Assets, Inc. (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 has a distribution agreement with Prudential Securities
Incorporated
(``PSI''), which acts as the distributor of the Class A and Class
Z shares of
the Fund. The Fund reimburses PSI for distributing and servicing
the Fund's
Class A shares pursuant to the plan of distribution at an annual
rate of .125 of
1% of the average daily net assets of the Class A shares. The Class
A
distribution fee is accrued daily and payable monthly. No
distribution or
service fees are paid to PSI as distributor of the Class Z shares
of the Fund.
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 six months
ended June 30,
1996, the Fund incurred fees of approximately $7,835,600 for the
services of
PMFS. As of June 30, 1996, approximately $1,317,000 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.
- -----------------------------------------------------------------
- ---------------
9 -----
<PAGE>
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL MONEYMART
ASSETS, INC.
- -----------------------------------------------------------------
- ---------------
Note 4. Capital
The Fund currently offers Class A and Class Z shares. Effective
March 1, 1996,
the Fund commenced offering Class Z shares. Class Z shares are not
subject to
any sales charge and are offered exclusively for sale to the
participants of the
PSI 401(k) Plan, a defined contribution plan sponsored by PSI.
The Fund has authorized 15 billion shares of common stock, $.10 par
value per
share, divided into 13 billion authorized Class A shares and 2
billion
authorized Class Z shares.
Transactions in shares of common stock (at $1 per share) were as
follows:
<TABLE>
<CAPTION>
Shares
and
Dollar
Class A Amount
- -------------------------------------------- ---------------
<S> <C>
Six months ended June 30, 1996:
Shares sold................................. 15,642,927,820
Shares issued in reinvestment of dividends
and
distributions............................. 169,117,628
Shares reacquired........................... (15,885,631,032)
---------------
Net decrease in shares outstanding before
conversion................................ (73,585,584)
Shares reacquired upon conversion into Class
Z......................................... (85,841,607)
---------------
Net decrease in shares outstanding.......... (159,427,191)
---------------
---------------
<CAPTION>
Shares
and
Dollar
Class A Amount
- -------------------------------------------- ---------------
<S> <C>
Year ended December 31, 1995:
Shares sold 29,233,009,828
Shares issued in reinvestment of dividends
and
distributions............................. 354,506,489
Shares reacquired........................... (28,910,738,397)
---------------
Net increase in shares outstanding.......... 676,777,920
---------------
---------------
<CAPTION>
Class Z
- --------------------------------------------
<S> <C>
March 1, 1996* through June 30, 1996:
Shares sold................................. 67,011,892
Shares issued in reinvestment of dividends
and
distributions............................. 1,393,276
Shares reacquired........................... (56,673,294)
---------------
Net increase in shares outstanding before
conversion................................ 11,731,874
Shares issued upon conversion from Class
A......................................... 85,841,607
---------------
Net increase in shares outstanding.......... 97,573,481
---------------
---------------
</TABLE>
- ---------------
* Commencement of offering of Class Z shares.
- -----------------------------------------------------------------
- ---------------
10
<PAGE>
<PAGE>
Financial Highlights (Unaudited) PRUDENTIAL MONEYMART
ASSETS, INC.
- -----------------------------------------------------------------
- ---------------
<TABLE>
<CAPTION>
Class A
- -----------------------------------------------------------------
- ------
Six Months
Ended
Year Ended December 31,
June 30,
- -------------------------------------------------------
1996
1995 1994 1993 1992
<S> <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
Net investment income and net realized
gains...................................... .024
.054 .037 .027 .035
Dividends and distributions to shareholders... (.024 )
(.054) (.037) (.027) (.035)
----------
- ---------- ---------- ---------- ----------
Net asset value, end of period................ $ 1.000 $
1.000 $ 1.000 $ 1.000 $ 1.000
----------
- ---------- ---------- ---------- ----------
----------
- ---------- ---------- ---------- ----------
TOTAL RETURN(a)............................... 2.41 %
5.51% 3.72% 2.70% 3.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $7,062,231
$7,221,658 $6,544,880 $7,318,633 $6,703,281
Average net assets (000)...................... $7,409,171
$6,914,520 $7,071,381 $7,742,989 $7,116,739
Ratios to average net assets:
Expenses, including distribution fee....... .67 %(c)
.69% .71% .71% .66%
Expenses, excluding distribution fee....... .54 %(c)
.56% .58% .58% .54%
Net investment income...................... 4.89 %(c)
5.38% 3.65% 2.63% 3.43%
<CAPTION>
Class Z
March 1,
1996(b)
Through
June
30,
1991
1996
<S> <C> <C>
----------
- --------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.......... $ 1.000 $
1.000
Net investment income and net realized
gains...................................... .058
.016
Dividends and distributions to shareholders... (.058)
(.016 )
----------
- --------
Net asset value, end of period................ $ 1.000 $
1.000
----------
- --------
----------
- --------
TOTAL RETURN(a)............................... 5.95%
1.52 %
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $7,138,159
$97,573
Average net assets (000)...................... $7,763,251
$94,292
Ratios to average net assets:
Expenses, including distribution fee....... .68%
.54 c)
Expenses, excluding distribution fee....... .56%
.54 c)
Net investment income...................... 5.72%
4.85 c)
</TABLE>
- ---------------
(a) Total return is calculated assuming a purchase of shares on the
first day
and a sale on the last day of each period reported and includes
reinvestment
of dividends and distributions. Total returns for less than a
full year are
not annualized.
(b) Commencement of offering of Class Z shares.
(c) Annualized.
- -----------------------------------------------------------------
- ---------------
See Notes to Financial Statements.
11 -----
<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 capital
gain is up to 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 rises and falls -- 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 instrument 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.
Price/Earnings Ratio: The price of a share of stock divided by the
earnings per
share for a 12-month period.
Option: An agreement to sell something, such as shares of stock, by
a certain
time for a specified price. An option need not be exercised.
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 FundsOne Seaport Plaza
New York, NY 10292
(800) 225-1852
http:\\www.prudential.com
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
The views expressed in this report and information about the Fund's
portfolio
holdings are for the period covered by this report and are subject
to change
thereafter.
The accompanying financial statements as of June 30, 1996 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.
Prudential Mutual Funds
<PAGE>
(LOGO)
BULK RATE
U.S. POSTAGE
One Seaport Plaza
PAID
New York, NY 10292
Permit 6807
(800) 225-1852
New York, NY
74435H102 MF108E2
74435H201 Cat. # 430251F
