(ICON)
Prudential
MoneyMart
Assets, Inc.
ANNUAL
REPORT
June 30, 1997
(LOGO)
Prudential MoneyMart Assets, Inc.
Performance At A Glance.
Rapidly changing economic
conditions in the United States
caused short-term
interest rates to fluctuate sharply
over the past six months as the
Federal
Reserve pushed the overnight bank
lending rate higher. Your
Prudential
MoneyMart Assets fund adjusted
successfully in this volatile
market, providing
attractive yields while maintaining
our high credit quality and a
stable $1 net
asset value. On June 30, 1997 our
seven-day current yield was 5.01%
for Class A
shares, compared to 4.98% for the
average money market fund tracked
by IBC
Financial Data.
Fund Facts As
of 6/30/97
<TABLE>
<CAPTION>
7-Day
Net Asset Weighted Avg.
Total Net
Current
Yld. Value Mat. (WAM)
Assets (mil.)
<S> <C>
<C> <C> <C>
Class A* 5.01%
$1 52 Days
$7,049
Class Z* 5.14
$1 52 Days
$159
IBC Financial Data
Money Fund Avg.
(General Purpose**) 4.98
$1 58 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 do not carry
distribution fees.
** This is the average 7-day
current yield, NAV and WAM of all
funds in the
International Business
Communications Financial Data's all
taxable money fund
category as of July 1, 1997.
Money Fund Yields Moved Higher.
(CHART)
How Investments Compared.
(As of 6/30/97)
(GRAPH)
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
returns 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
(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 abroad. Maturities can range
from one day
to 13 months. We typically purchase
only securities rated in one of the
two
highest 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 investment objective.
A Word About Quality.
On June 30, 1997, 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; and AA or D-2
by Duff and Phelps Crediting Rating
Company. Investments deemed to be
of equivalent quality but were not
rated
were subject to ratification by the
Board of Directors. Although there
can
never be a guarantee that our share
price will remain at $1, we follow
a
conservative, quality-oriented
investment approach to achieve that
goal.
Strategy Session.
- -----------------------------------
- -----------------------------------
- ----
1997 began with investors wondering
whether the brisk U.S. economic
growth of
the fourth quarter of 1996 would
carry over into the new year. Key
indications
that the economy was far stronger
than expected surfaced in
employment data
that showed more than 500,000 non-
farm jobs were created in the first
two
months of the year. Not
surprisingly, retail sales rose
sharply in both January
and February. Retail sales are
very important because consumer
spending
accounts for about two-thirds of
Gross Domestic Product (GDP), a
measure of
the total amount of goods and
services produced by the country.
Indeed, the
economy barreled ahead at a 4.9%
annualized pace in the first
quarter, its
fastest in recent years. But good
news for the economy can be bad
news for
financial markets since strong
economic growth can rekindle higher
inflation.
In January and early February,
short-term interest rates seesawed
as investors
tried to gauge the strength of the
economy. We kept the Fund's
weighted average
maturity (WAM) much shorter than
that of our competition during this
time
because we thought the Federal
Reserve would have to increase the
Federal Funds
rate (what banks charge each other
for overnight loans) to rein in the
strong
economy. A shorter WAM enabled the
Fund to readily invest in higher
yielding
securities as they became
available.
By early March, investors realized
that a rate increase was imminent
so they
began to push up short-term
interest rates in earnest. Enticed
by these higher
yields, we purchased three-month
money market securities that
considerably
lengthened the Fund's WAM to be
more in line with our competition.
After the
overnight bank lending rate was
increased by a quarter percentage
point to
5.5% on March 25, 1997, we began to
shorten the WAM again in
preparation for
another possible rate rise at the
next central bank meeting in May.
In the
second quarter, the economy lost
considerable momentum and inflation
remained
dormant, which made any near-term
increase in rates highly unlikely.
As a
result, investors began to push
down interest rates rightly
assuming that the
Federal Reserve would leave the
interest rates unchanged in May. We
quickly
had to reverse our strategy and we
increased the WAM to as much as 57
days to
lock in yields before they tumbled
further.
<PAGE>
What Went Well.
- -----------------------------------
- -----------------------------------
- -------
Quick On Our Feet.
When we realized the Federal
Reserve was not going to increase
the Federal
Funds rate again in May, we
quickly adjusted the portfolio. At
the time, the
Fund's WAM was shorter than that of
our competition because we expected
another
rate increase. (Remember, a shorter
WAM allows the Fund to invest in
higher
yielding securities sooner if the
central bank increases interest
rates.) Yet
we quickly changed our outlook as
government reports pointed to
slower growth
and subdued inflation in the second
quarter. For example, the producer
price
index for April, (reported in May)
declined 0.6%. This key gauge of
inflation
at the wholesale level was followed
the next day by news that the
consumer
price index for April, a barometer
of retail inflation, inched up only
0.1%
overall. With inflation apparently
in check, the central bank would
have been
hard pressed to justify another
increase in the overnight bank
lending rate.
Therefore, we lengthened the Fund's
WAM to as much as 58 days in late
May by
purchasing higher yielding
securities maturing in three months
and others
maturing in one year.
And Not So Well.
- -----------------------------------
- -----------------------------------
- ------
Sometimes It Pays To Wait.
Since January, we expected the
Federal Reserve to raise interest
rates. As a
result we positioned the Fund's WAM
shorter than the competition. As
investment
expectations shifted to our point
of view, short-term interest rates
rose in
anticipation of a Federal Reserve
rate hike. At this point, we took
advantage
of rising yields by purchasing
three-month money market
securities. In
hindsight, the Fund's performance
would have improved more if we
bought the
securities after the Federal
Reserve had moved.
Looking Ahead.
- -----------------------------------
- -----------------------------------
- ------
The quarter percentage point rise
in the overnight bank lending rate
may not
be enough to keep the U.S. economy
from pushing up inflation later in
the year.
Although the economy probably
expanded much more slowly in the
second quarter
than in the first, economic growth
could reaccelerate in the third
quarter to
a pace that could fuel higher
inflation. Because we expect at
least one more
Federal Reserve rate increase
before the end of the year, we will
be cautious
about extending the Fund's WAM
while rates remain at current low
levels.
Weighted Average Maturity Compared
To The Average Fund.
(CHART)
1
<PAGE>
President's Letter
August 4, 1997
- -----------------------------------
- --------------------------------
(PICTURE)
Dear Shareholder:
With the midpoint of 1997 behind
us, I'm pleased to report that the
recent news
from the financial markets has been
decidedly upbeat. The Dow Jones
Industrial
Average has gained more than 20%
through the end of June, while
lower long-term
interest rates have made bonds an
attractive investment.
This stands in contrast to April
when the Dow fell 10% from a record
high on
fears of higher interest rates and
surging inflation. Interest rates
have since
fallen as the economy slowed and
the Dow has reached several new
highs.
The market swings we've seen this
year illustrate the importance of
"staying
the course" to your financial
goal. We realize that maintaining
investment
discipline when faced with market
uncertainty isn't easy. Here are
some
thoughts that may help:
- - Keep Your Expectations Realistic.
The best investors know that
financial
markets rise and fall -- and so
too, will the value of their
investments.
Over time, however, stocks have
been shown to produce very
attractive
returns that were well ahead of
inflation. And where income is the
primary
goal, bonds have also provided
attractive returns.
- - Remember Your Time Horizon. If
your investment goals are long term
(several
years or more), so should your
time horizon. During this period,
it's not
unusual for stocks and bonds to
experience several periods of
market
uncertainty.
- - We're On Your Side. Your
Prudential Securities Financial
Advisor or Pruco
Securities Registered
Representative can help you
understand what's happening
in the financial markets. They
can assist you in making informed
decisions
based upon a thorough knowledge
of your financial needs and long-
term goals.
Call him or her today.
Thank you for your continued
confidence in Prudential mutual
funds. We'll do
everything we can to keep you
informed and to earn your trust.
Sincerely,
Brian M. Storms
President, Prudential Mutual Funds
& Annuities
2
<PAGE>
Portfolio of Investments as of
PRUDENTIAL MONEYMART
June 30, 1997 (Unaudited)
ASSETS, INC.
- -----------------------------------
- -------------------------
- -----------------------------------
- -------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description
Value (Note 1)
<C> <S>
<C>
- -----------------------------------
- -------------------------
Bank Notes--4.9%
American Express
Centurion BankD
$14,000 5.66%, 7/9/97
$ 13,999,616
9,000 5.66%, 7/14/97
8,999,440
Bank One Columbus
460 5.55%, 7/1/97
460,000
Comerica Bank of
DetroitD
25,000 5.59%, 7/7/97
24,990,580
98,000 5.58%, 7/11/97
97,959,144
CoreStates Bank N.A.D
25,000 5.66%, 7/28/97
25,000,000
First Bank N.A.,
MinneapolisD
25,000 5.59%, 7/16/97
24,994,546
90,000 5.65%, 7/16/97
90,000,000
Keybank National
AssociationD
44,000 5.61%, 7/21/97
43,998,696
Morgan Guaranty Trust
Co.D
21,000 5.69%, 8/14/97
20,994,296
- --------------
351,396,318
- -----------------------------------
- -------------------------
Certificates Of Deposit - Domestic-
- -0.3%
CoreStates Bank N.A.
13,000 5.61%, 7/18/97
12,997,263
8,000 5.80%, 7/23/97
8,000,000
- --------------
20,997,263
- -----------------------------------
- -------------------------
Certificates Of Deposit -
Eurodollar--9.4%
Abbey National
Treasury Services
PLC
130,000 5.76%, 8/22/97
130,000,000
Berliner Handels-Und
Frankfurter
Bank
20,000 5.72%, 7/21/97
20,000,110
Credit Agricole
Indosuez
130,000 5.63%, 8/11/97
130,003,633
Deutsche Bank
150,000 5.56%, 7/7/97
150,000,000
100,000 5.56%, 7/10/97
100,000,000
Lloyds Bank PLC
100,000 5.74%, 10/22/97
100,005,305
Swiss Bank Corp.
$11,000 5.65%, 7/14/97
$ 11,000,087
Westdeutsche
Landesbank
Girozentrale
37,000 5.61%, 8/18/97
37,000,446
- --------------
678,009,581
- -----------------------------------
- -------------------------
Certificates Of Deposit - Yankee--
14.6%
Banque Nationale De
Paris
127,000 5.74%, 8/20/97
127,000,000
Canadian Imperial Bank
of Commerce
20,000 5.68%, 8/19/97
20,000,000
250,000 5.60%, 8/25/97
250,000,000
Commerzbank U.S.
Finance, Inc.
28,000 6.075%, 5/27/98
27,991,541
Credit Agricole
Indosuez
100,000 5.60%, 8/21/97
100,000,000
46,000 5.60%, 8/26/97
46,000,000
Deutsche Bank
100,000 5.78%, 8/12/97
100,015,258
National Westminster
Bank PLC
50,000 6.06%, 5/26/98
49,978,496
56,000 6.09%, 5/27/98
55,990,332
Rabobank Nederland
150,000 5.98%, 3/20/98
149,979,418
Societe Generale North
America,
Inc.
95,000 5.63%, 8/18/97
95,000,000
Swiss Bank Corp.
30,000 6.07%, 5/27/98
29,989,642
- --------------
1,051,944,687
- -----------------------------------
- -------------------------
Commercial Paper--46.0%
AC Acquisition Holding
Co.
10,000 5.60%, 7/8/97
9,989,111
Aetna Services Inc.
5,000 5.66%, 8/20/97
4,960,694
American Express
Credit Co.
22,857 5.54%, 8/20/97
22,681,128
American General
Finance Corp.
94,000 5.55%, 7/7/97
93,913,050
American Home Products
Corp.
11,000 5.62%, 7/14/97
10,977,676
</TABLE>
- -----------------------------------
- -----------------------------------
- ----------
See Notes to Financial Statements.
3
<PAGE>
Portfolio of Investments as of
PRUDENTIAL MONEYMART
June 30, 1997 (Unaudited)
ASSETS, INC.
- -----------------------------------
- -------------------------
- -----------------------------------
- -------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description
Value (Note 1)
<C> <S>
<C>
- -----------------------------------
- -------------------------
Commercial Paper (cont'd.)
American Honda Finance
Corp.
$49,000 5.65%, 7/28/97
$ 48,792,362
7,900 5.57%, 7/29/97
7,865,775
Aristar, Inc.
15,000 5.67%, 7/14/97
14,969,288
6,275 5.70%, 7/24/97
6,252,149
5,000 5.70%, 7/28/97
4,978,625
Asset Securitization
Coop. Corp.
145,000 5.56%, 8/18/97
143,925,067
Associates Corp. of
North America
110,377 6.19%, 7/1/97
110,377,000
58,834 5.55%, 7/3/97
58,815,860
Bank of Montreal
25,000 5.53%, 7/7/97
24,976,958
107,000 5.53%, 7/9/97
106,868,466
Barton Capital Corp.
100,000 5.56%, 7/18/97
99,737,444
13,000 5.70%, 8/15/97
12,907,375
47,745 5.57%, 8/18/97
47,390,414
22,261 5.60%, 8/18/97
22,094,785
Bear Stearns Co., Inc.
40,000 5.57%, 7/7/97
39,962,867
36,000 5.58%, 7/8/97
35,960,940
18,000 5.55%, 7/23/97
17,938,950
Beneficial Corp.
81,000 5.55%, 8/20/97
80,375,625
Ciesco L.P.
30,000 5.60%, 8/11/97
29,808,667
12,000 5.60%, 8/18/97
11,910,400
Citicorp
70,000 5.70%, 7/10/97
69,900,250
Coca-Cola Enterprises,
Inc.
17,000 5.58%, 7/14/97
16,965,745
22,000 5.59%, 8/4/97
21,883,852
10,000 5.60%, 9/5/97
9,897,333
Commercial Credit Co.
44,000 5.56%, 8/18/97
43,673,813
Commerzbank U.S.
Finance, Inc.
54,000 5.67%, 8/21/97
53,566,245
Corporate Receivables
Corp.
$33,000 5.57%, 7/14/97
$ 32,933,624
42,000 5.66%, 8/22/97
41,656,930
20,000 5.57%, 9/8/97
19,786,483
9,000 5.68%, 11/12/97
8,809,720
Countrywide Home Loan,
Inc.
16,000 5.57%, 7/10/97
15,977,720
CXC, Inc.
35,000 5.60%, 7/17/97
34,912,889
12,717 5.65%, 8/5/97
12,647,145
6,300 5.65%, 8/6/97
6,264,405
18,000 5.65%, 8/8/97
17,892,650
32,000 5.63%, 8/14/97
31,779,804
50,000 5.56%, 8/25/97
49,575,278
Enterprise Funding
Corp.
8,085 5.58%, 8/18/97
8,024,848
Falcon Asset
Securitization Corp.
6,580 5.62%, 7/1/97
6,580,000
50,000 5.56%, 8/7/97
49,714,278
Finova Capital Corp.
18,000 5.60%, 7/7/97
17,983,200
7,000 5.70%, 7/7/97
6,993,350
48,000 5.71%, 7/15/97
47,893,413
First Chicago
Financial Corp.
24,000 5.56%, 8/19/97
23,818,373
31,000 5.56%, 8/25/97
30,736,672
First Data Corp.
39,000 5.67%, 8/19/97
38,699,018
Ford Motor Credit
Corp.
100,000 5.55%, 7/7/97
99,907,500
177,000 5.55%, 7/8/97
176,808,988
General Electric
Capital Corp.
150,000 5.74%, 1/8/98
145,431,917
100,000 5.71%, 1/12/98
96,907,083
110,000 5.70%, 1/13/98
106,586,333
General Motors
Acceptance Corp.
241,000 5.59%, 7/7/97
240,775,468
16,000 5.82%, 11/7/97
15,666,320
GTE Corp.
28,000 5.60%, 9/12/97
27,682,044
Hertz Corp.
39,300 5.55%, 7/8/97
39,257,589
</TABLE>
- -----------------------------------
- -----------------------------------
- ----------
See Notes to Financial Statements.
4
<PAGE>
Portfolio of Investments as of
PRUDENTIAL MONEYMART
June 30, 1997 (Unaudited)
ASSETS, INC.
- -----------------------------------
- -------------------------
- -----------------------------------
- -------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description
Value (Note 1)
<C> <S>
<C>
- -----------------------------------
- -------------------------
Commercial Paper (cont'd.)
IBM Credit Corp.
$50,000 5.54%, 8/19/97
$ 49,622,972
50,000 5.54%, 8/20/97
49,615,278
Internationale
Nederlanden U.S.
Insurance Holdings,
Inc.
9,000 5.57%, 7/17/97
8,977,720
36,000 5.57%, 8/25/97
35,693,650
John Deere Capital
Corp.
19,000 5.54%, 7/9/97
18,976,609
Johnson Controls, Inc.
9,000 5.63%, 7/14/97
8,981,703
Lehman Brothers
Holdings, Inc.
92,000 5.75%, 7/2/97
91,985,306
Merrill Lynch & Co.,
Inc.
12,064 5.57%, 7/15/97
12,037,868
Mitsubishi
International Corp.
12,000 5.60%, 7/16/97
11,972,000
Newell Co.
16,000 5.60%, 8/20/97
15,875,556
PHH Corp.
30,000 5.56%, 8/20/97
29,768,333
Preferred Receivables
Funding
Corp.
18,025 5.55%, 7/2/97
18,022,221
29,525 5.58%, 7/22/97
29,428,896
34,550 5.57%, 7/29/97
34,400,456
10,000 5.63%, 8/19/97
9,923,369
10,650 5.58%, 9/18/97
10,519,591
Rank Xerox Capital
(Europe) PLC
18,000 5.54%, 8/19/97
17,864,270
16,000 5.56%, 8/20/97
15,876,444
Smith Barney Inc.
58,000 5.55%, 7/7/97
57,946,350
Triple A One Funding
Corp.
8,837 5.57%, 7/7/97
8,828,796
6,000 5.57%, 7/11/97
5,990,717
WCP Funding, Inc.
12,461 5.65%, 8/4/97
12,394,507
25,000 5.56%, 8/19/97
24,810,806
- --------------
3,315,534,374
Loan Participations--1.1%
Bell Atlantic
Financial Services,
Inc.
$8,000 5.61%, 7/8/97
$ 8,000,000
Countrywide Home Loan,
Inc.
62,988 5.73%, 7/8/97
62,988,000
Newell Co.
9,200 5.72%, 7/18/97
9,200,000
- --------------
80,188,000
- -----------------------------------
- -------------------------
Other Corporate Obligations--19.9%
Beneficial Corp.D
35,000 5.71%, 7/10/97
35,004,912
Capital Equipment
Receivable Trust
47,028 5.60%, 10/15/97
47,027,803
General Motors
Acceptance Corp.D
25,000 5.80%, 8/4/97
24,994,593
Goldman, Sachs Group,
L.P.D
370,700 5.70%, 8/22/97
370,700,000
Merrill Lynch & Co.,
Inc.D
53,000 5.66%, 7/1/97
52,996,099
5,000 5.75%, 7/14/97
4,998,547
134,000 5.65%, 7/24/97
133,978,596
Morgan Stanley Group,
Inc.D
55,000 5.95%, 7/15/97
55,000,000
96,000 5.95%, 8/15/97
96,000,000
Short Term Repackaged
Asset TrustD
100,000 5.69%, 7/15/97
99,990,207
Short-Term Card
Account TrustD
272,000 5.71%, 7/15/97
272,000,000
SMM Trust Notes 1997-
QD
247,000 5.69%, 7/15/97
247,000,000
- --------------
1,439,690,757
</TABLE>
- -----------------------------------
- -----------------------------------
- ----------
See Notes to Financial Statements.
5
<PAGE>
Portfolio of Investments as of
PRUDENTIAL MONEYMART
June 30, 1997 (Unaudited)
ASSETS, INC.
- -----------------------------------
- -------------------------
- -----------------------------------
- -------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description
Value (Note 1)
<C> <S>
<C>
- -----------------------------------
- -------------------------
Time Deposit - Eurodollar--2.0%
First National Bank of
Chicago
$142,000 6.25%, 7/1/97
$ 142,000,000
- -----------------------------------
- -------------------------
Total Investments--98.2%
(amortized cost
$7,079,760,980*) 7,079,760,980
Other assets in excess
of
liabilities--1.8%
128,366,023
- --------------
Net Assets--100%
$7,208,127,003
- --------------
- --------------
</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 other assets
in excess of
liabilities shown as a percentage
of net assets as of June 30, 1997
was as
follows:
<TABLE>
<S>
<C>
Commercial
Banks..............................
....... 37.7%
Asset Backed
Securities.........................
..... 13.7
Security Brokers &
Dealers...........................
13.4
Short-Term Business
Credit...........................
10.3
Personal Credit
Institutions.......................
.. 7.0
Finance
Lessors............................
.......... 5.3
Fire & Marine Casualty
Insurance.....................
3.8
Bank Holding Companies -
Domestic.................... 1.7
Mortgage
Banks..............................
......... 1.1
Auto Rental &
Lease..............................
.... 1.0
Beverages..........................
.................. 0.7
Computer Rental &
Leasing............................
0.5
Telephone &
Communications.....................
...... 0.5
Photographic
Equipment..........................
..... 0.5
Home
Furnishings........................
............. 0.3
Pharmaceuticals....................
.................. 0.3
Commodity Trading
Firms..............................
0.2
Regulating
Controls...........................
....... 0.1
Accidental & Health
Insurance........................
0.1
- -----
98.2
Other assets in excess of
liabilities................ 1.8
- -----
100.0%
- -----
- -----
</TABLE>
- -----------------------------------
- -----------------------------------
- ----------
See Notes to Financial Statements.
6
<PAGE>
Statement of Assets and Liabilities
PRUDENTIAL MONEYMART
(Unaudited)
ASSETS, INC.
- -----------------------------------
- -----------------------------------
- ----------
<TABLE>
<CAPTION>
Assets
June 30, 1997
- --------------
<S>
<C>
Investments, at amortized cost
which approximates market
value..............................
................
$7,079,760,980
Cash...............................
...................................
...................................
... 174,061
Receivable for Fund shares
sold...............................
...................................
........... 277,122,085
Interest
receivable.........................
...................................
.............................
22,236,035
Deferred expenses and other
assets.............................
...................................
.......... 227,313
- --------------
Total
assets.............................
...................................
.............................
7,379,520,474
- --------------
Liabilities
Payable for Fund shares
reacquired.........................
...................................
.............. 156,142,363
Dividends
payable............................
...................................
............................
7,264,377
Accrued
expenses...........................
...................................
..............................
5,829,601
Management fee
payable............................
...................................
.......................
1,775,411
Distribution fee
payable............................
...................................
.....................
381,719
- --------------
Total
liabilities........................
...................................
.............................
171,393,471
- --------------
Net
Assets.............................
...................................
..................................
$7,208,127,003
- --------------
- --------------
Net assets were comprised of:
Common Stock, at par ($.001 par
value; 15 billion shares authorized
for
issuance)........................
$ 7,208,127
Paid-in capital in excess of
par................................
...................................
...... 7,200,918,876
- --------------
Net assets, June 30,
1997...............................
...................................
.................
$7,208,127,003
- --------------
- --------------
Class A:
Net asset value, offering price
and redemption price per share
($7,049,353,455 /
7,049,353,455 shares of common
stock issued and
outstanding).......................
. $1.00
- --------------
- --------------
Class Z:
Net asset value, offering price
and redemption price per share
($158,773,548 / 158,773,548
shares of common stock issued and
outstanding).......................
..... $1.00
- --------------
- --------------
</TABLE>
- -----------------------------------
- -----------------------------------
- ----------
See Notes to Financial Statements.
7
<PAGE>
PRUDENTIAL MONEYMART ASSETS, INC.
Statement of Operations (Unaudited)
- -----------------------------------
- -------------------------
- -----------------------------------
- -------------------------
<TABLE>
<CAPTION>
Six Months
Ended
Net Investment Income
June 30, 1997
<S>
<C>
Income
Interest...........................
........ $204,028,885
- -------------
Expenses
Management
fee.............................
11,011,331
Distribution fee--Class
A.................. 4,466,639
Transfer agent's fees and
expenses......... 8,349,000
Reports to
shareholders....................
4,140,000
Registration
fees..........................
141,000
Custodian's fees and
expenses..............
95,000
Insurance
expenses.........................
63,000
Legal fees and
expenses....................
30,000
Director's fees and
expenses...............
29,000
Audit
fee................................
.. 18,000
Miscellaneous......................
........ 29,196
- -------------
Total
expenses..........................
28,372,166
- -------------
Net investment
income.........................
175,656,719
- -------------
Net Realized Gain on Investments
Net realized gain on investment
transactions.......................
........ 44,436
- -------------
Net Increase in Net Assets
Resulting from
Operations.....................
$175,701,155
- -------------
- -------------
</TABLE>
PRUDENTIAL MONEYMART ASSETS, INC.
Statement of Changes in Net Assets
(Unaudited)
- -----------------------------------
- -------------------------
- -----------------------------------
- -------------------------
<TABLE>
<CAPTION>
Six
Months
Increase (Decrease)
Ended Year Ended
in Net Assets June
30, 1997 December 31, 1996
<S> <C>
<C>
Operations
Net investment income... $
175,656,719 $ 358,240,587
Net realized gain on
investment
transactions.........
44,436 390,335
------
- ---------- -----------------
Net increase in net
assets resulting from
operations...........
175,701,155 358,630,922
------
- ---------- -----------------
Dividends and distributions
to shareholders (Note 1)
Class A..............
(171,717,149) (353,704,755)
Class Z..............
(3,984,006) (4,926,167)
------
- ---------- -----------------
(175,701,155) (358,630,922)
------
- ---------- -----------------
Fund share transactions
(Note 4)
Proceeds from shares
sold.................
16,921,655,531 31,398,251,715
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends and
distributions........
162,459,202 344,952,119
Cost of shares
reacquired...........
(17,340,422,444)
(31,500,427,083)
------
- ---------- -----------------
Net increase (decrease)
in net assets from
Fund share
transactions.........
(256,307,711) 242,776,751
------
- ---------- -----------------
Total increase
(decrease)..............
(256,307,711) 242,776,751
Net Assets
Beginning of period........
7,464,434,714 7,221,657,963
------
- ---------- -----------------
End of period.............. $
7,208,127,003 $ 7,464,434,714
------
- ---------- -----------------
------
- ---------- -----------------
</TABLE>
- -----------------------------------
- -----------------------------------
- ----------
See Notes to Financial Statements.
8
<PAGE>
Notes to Financial Statements
(Unaudited) PRUDENTIAL
MONEYMART ASSETS, INC.
- -----------------------------------
- -----------------------------------
- ---------
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. Agreements
The Fund has a management agreement
with Prudential Investments Fund
Management
LLC ('PIFM'). Pursuant to this
agreement, PIFM has responsibility
for all
investment advisory services and
supervises the subadviser's
performance of such
services. PIFM 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. PIFM 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 PIFM is
computed daily and payable monthly,
at an annual
rate of .50 of 1% of the Fund's
average daily net assets up to $50
million and
.30 of 1% of the Fund's average
daily 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, PIFM and PIC are indirect,
wholly-owned subsidiaries of The
Prudential
Insurance Company of America.
- -----------------------------------
- -------------------------
Note 3. Other Transactions with
Affiliates
Prudential Mutual Fund Services LLC
('PMFS'), a wholly-owned subsidiary
of PIFM,
serves as the Fund's transfer
agent. During the six months ended
June 30, 1997,
the Fund incurred fees of
approximately $7,902,800 for the
services of PMFS. As
of June 30, 1997, approximately
$1,321,500 of such fees were due to
PMFS.
Transfer agent fees and expenses in
the Statement of Operations include
certain
out-of-pocket expenses paid to non-
affiliates.
- -----------------------------------
- -----------------------------------
- ----------
9
<PAGE>
Notes to Financial Statements
(Unaudited) PRUDENTIAL MONEYMART
ASSETS, INC.
- -----------------------------------
- -----------------------------------
- ---------
Note 4. Capital
The Fund offers Class A and Class Z
shares. Class Z shares are not
subject to
any sales charge and are offered
exclusively for sale to a limited
group of
investors.
The Fund has authorized 15 billion
shares of common stock, $.001 par
value per
share, divided into 13 billion
authorized Class A shares and 2
billion
authorized Class Z shares of the
7,208,127,003 shares of common
stock issued and
outstanding at June 30, 1997, PIFM
owned 11,492 Class A 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, 1997:
Shares
sold...............................
. 16,704,863,457
Shares issued in reinvestment of
dividends
and
distributions......................
.. 158,710,296
Shares
reacquired.........................
. (17,129,443,185)
- ----------------
Net decrease in shares
outstanding.........
(265,869,432)
- ----------------
- ----------------
Year ended December 31, 1996:
Shares
sold...............................
. 31,034,483,075
Shares issued in reinvestment of
dividends
and
distributions......................
.. 340,215,223
Shares
reacquired.........................
. (31,281,133,374)
- ----------------
Net increase in shares
outstanding.........
93,564,924
- ----------------
- ----------------
<CAPTION>
Shares
and
Dollar
Class Z
Amount
- -----------------------------------
- -------- ----------------
<S>
<C>
Six months ended June 30, 1997:
Shares
sold...............................
. 216,792,074
Shares issued in reinvestment of
dividends
and
distributions......................
.. 3,748,905
Shares
reacquired.........................
. (210,979,258)
- ----------------
Net increase in shares
outstanding.........
9,561,721
- ----------------
- ----------------
March 1, 1996* through December 31,
1996:
Shares
sold...............................
. 301,984,043
Shares
issued**...........................
. 61,784,597
Shares issued in reinvestment of
dividends
and
distributions......................
.. 4,736,896
Shares
reacquired.........................
. (219,293,709)
- ----------------
Net increase in shares
outstanding.........
149,211,827
- ----------------
- ----------------
</TABLE>
- ---------------
* Commencement of offering of
Class Z shares.
** Represents amounts issued in
connection with the acquisition of
The
Prudential Institutional Fund--
Money Market Fund.
- -----------------------------------
- -----------------------------------
- ----------
10
<PAGE>
Financial Highlights (Unaudited)
PRUDENTIAL MONEYMART ASSETS, INC.
- -----------------------------------
- -----------------------------------
- ---------
<TABLE>
<CAPTION>
Class A
- -----------------------------------
- -----------------------------------
- -------------
Six Months
Ended
Year Ended December 31,
June 30, ----------------------
- -----------------------------------
- ------------
1997 1996 1995
1994 1993 1992
<S>
<C> <C> <C>
<C> <C> <C>
- ---------- ---------- ------
- ---- ---------- ----------
- ---------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period..... $ 1.000 $
1.000 $ 1.000 $ 1.000
$ 1.000 $ 1.000
Net investment income and net
realized
gains..............................
........ .024
.048 .054 .037
.027 .035
Dividends and distributions to
shareholders.......................
........ (.024 )
(.048) (.054)
(.037) (.027) (.035)
- ---------- ---------- ------
- ---- ---------- ----------
- ---------
Net asset value, end of
period........... $ 1.000
$ 1.000 $ 1.000 $
1.000 $ 1.000 $ 1.000
- ---------- ---------- ------
- ---- ---------- ----------
- ---------
- ---------- ---------- ------
- ---- ---------- ----------
- ---------
TOTAL
RETURN(a)..........................
2.41 % 4.97% 5.51%
3.72% 2.70% 3.59%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000).......... $7,049,353
$7,315,223 $7,221,658
$6,544,880 $7,318,633
$6,703,281
Average net assets
(000).................
$7,205,850 $7,326,023
$6,914,520 $7,071,381
$7,742,989 $7,116,739
Ratios to average net assets:
Expenses, including distribution
fee..... .78 %(c)
.71% .69% .71%
.71% .66%
Expenses, excluding distribution
fee..... .65 %(c)
.59% .56% .58%
.58% .54%
Net investment
income....................
4.84 %(c) 4.83% 5.38%
3.65% 2.63% 3.43%
<CAPTION>
Class Z
March 1,
Six Months 1996(b)
Ended Through
June 30, December 31,
1997 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..............................
........ .024 .040
Dividends and distributions to
shareholders.......................
........ (.024)
(.040)
- ---------- ------------
Net asset value, end of
period........... $ 1.000
$ 1.000
- ---------- ------------
- ---------- ------------
TOTAL
RETURN(a)..........................
2.47% 4.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000).......... $158,774
$149,212
Average net assets
(000)................. $162,541
$121,135
Ratios to average net assets:
Expenses, including distribution
fee..... .65%(c)
.59%(c)
Expenses, excluding distribution
fee..... .65%(c)
.59%(c)
Net investment
income....................
4.94%(c) 4.86%(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>
Special Tax
Notice For
New Jersey
Taxpayers
As a New Jersey taxpayer you may be
eligible for a tax refund on a
percentage
of income earned from the
Prudential MoneyMart Assets, Inc.
A recent New
Jersey Tax Court decision has
overturned a state law which had
required that
at least 80 percent of a mutual
fund's assets be invested in U.S.
Government
obligations before dividend income
paid to shareholders could be
considered
exempt from New Jersey income
taxes.
This means you may be eligible for
a tax refund on the portion of
dividend
income which you have paid state
income taxes for the years 1993
through 1996.
Generally, to claim a refund you
should file an amended tax return
(Form
NJ-1040X) by the later of three
years from the date your original
return was
filed or two years from the date
the tax was paid. If you have not
filed your
1996 return, you may also wish to
take into consideration this new
ruling in
reporting your dividend income.
To determine how much your dividend
income may be exempt from state
taxes,
multiply the percentage listed
below by the "ordinary dividends"
amount
reported in Column 1B of your Form
1099-DIV for that year.
<TABLE>
<CAPTION>
Percentage of Income
Year
From U.S. Govt. Obligations
---- ---
- ------------------------
<S> <C>
1993
1.12%
1994
0.00%
1995
0.00%
1996
3.23%
</TABLE>
We cannot offer tax advice.
However, we do urge you to consult
with your
professional tax adviser about the
effects this court decision may
have upon
your situation.
<PAGE>
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
http://www.prudential.com
Directors
Edward D. Beach
Stephen C. Eyre
Delayne Dedrick Gold
Robert F. Gunia
Don G. Hoff
Robert E. LaBlanc
Mendel A. Melzer
Richard A. Redeker
Robin B. Smith
Stephen Stoneburn
Nancy H. Teeters
Officers
Richard A. Redeker, President
Susan C. Cote, Vice President
Thomas A. Early, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant
Treasurer
S. Jane Rose, Secretary
Manager
Prudential Investments Fund
Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
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 LLC
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004
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, 1997 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.
<PAGE>
(LOGO)
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
BULK RATE
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