(ICON)
Prudential
MoneyMart
Assets, Inc.
ANNUAL
REPORT
Dec. 31, 1997
(LOGO)
<PAGE>
Prudential MoneyMart Assets, Inc.
Performance At A Glance.
Yields on money market securities seesawed sharply in 1997
as investors
frequently feared strong U.S. economic growth would force
short-term interest
rates higher. Your Prudential MoneyMart Assets fund took
advantage of these
rapidly changing market conditions by acting quickly to lock
in higher yields
when available. On December 31, 1997, our seven-day current
yield was 5.21%
for Class A shares, compared with 5.07% for the average
money market fund
tracked by IBC Financial Data.
Fund Facts
As of 12/31/97
<TABLE>
<CAPTION>
7-Day Net Asset
Weighted Avg. Total Net
Current Yld. Value (NAV)
Mat. (WAM) Assets (mil.)
<S> <C> <C>
<C> <C>
Class A 5.21% $1
54 Days $6,864
Class Z* 5.34 $1
54 Days $157
IBC Financial Data
Money Fund Avg.
(General Purpose**) 5.07 $1
60 Days N/A
</TABLE>
Note: Yields will fluctuate from time to time and past
performance is not
indicative of future results.
*Class Z shares do not carry distribution fees.
**IBC Financial Data reports a seven-day current yield, WAM
and NAV on
Tuesdays. This is the average seven-day current yield, NAV
and WAM, of all
funds in the International Business Communications Financial
Data's all
taxable money fund category as of December 30, 1997, which
was the closest
date to our reporting period end. An investment in the Fund
is neither insured
nor guaranteed by the U.S. government and there can be no
assurance the Fund
will be able to maintain a stable net asset value of $1 per
share.
Money Fund Yields Trend Higher.
- -- Prudential MoneyMart Assets (Class A shares)
- -- IBC Financial Data Money Fund Avg. (General Purpose)
(GRAPH)
Weekly seven-day current yields of Prudential MoneyMart
Assets and the IBC
Financial Data general purpose money fund average. Past
performance is not
indicative of future results.
How Investments Compared.
(As of 12/31/1997)
(GRAPH)
U.S. General General U.S.
Growth Bond Muni Debt Taxable
Funds Funds Funds Money Funds
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.
U.S. Taxable Money 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
(PHOTO)
Portfolio
Manager's Report
Prudential MoneyMart Assets seeks high current income
consistent with
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 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.
Strategy Session.
Interest Rate Jitters.
The U.S. economy raced into its seventh year of economic
expansion fueled by a
strong job market and increased consumer spending. With the
economy growing
rapidly, investors worried that rising wages could push
inflation higher,
eroding the value of a bond's fixed interest and principal
payments.
By early March, yields on money market securities climbed as
investors thought
the Federal Reserve would soon increase the federal funds
rate (what banks
charge each other for overnight loans) to slow economic
growth and pre-
emptively defuse inflationary pressures. We locked in the
rising yields by
purchasing three-month money market securities, which
lengthened the Fund's
weighted average maturity (WAM) until it was nearly in line
with that of its
competition. As expected, the federal funds rate was raised
a quarter
percentage point to 5.50% at the end of March. We, along
with many others,
thought additional increases would be forthcoming. We
shortened the WAM in
April to be prepared to purchase any higher yielding
securities that could
become available. No further increases came, however.
As autumn began, inflation jitters resurfaced. Fearing that
a federal funds
rate rise was imminent, investors once again pushed up
yields on money market
securities. We took advantage of this trend by purchasing
attractively priced
securities that extended the WAM by late October. Then short-
term yields
suddenly dropped as investors realized an Asian economic
crisis would prevent
the Federal Reserve from increasing the federal funds rate
in November. In the
final month, when the usual year-end supply pressures forced
yields higher, we
went bargain hunting again.
Above the Fray
Concern about a deepening economic crisis in Asia drove
yields higher (and
prices lower) on money market securities of Asian banks.
Your Fund had no
direct credit exposure to Asian banks so it avoided the
losses suffered by
portfolios with such heavy exposure to the region.
<PAGE>
What Went Well.
A Smart Move.
We extended the Fund's WAM to be in line with that of its
competition by late
October. This proved a smart move since yields on money
market securities
dropped a few days later when investors were jolted by news
of severe economic
difficulties in Asia. Financial sector problems that had
been simmering in
Southeast Asia boiled over, engulfing global financial
markets. On October 27,
the Dow Jones Industrial Average plunged a record 554 points
as investors sold
stocks and sought refuge in U.S. Treasury securities. This
demand for
Treasuries drove U.S. short-term interest rates sharply
lower (and prices of
securities higher). Talk that the Federal Reserve would be
reluctant to
increase the federal funds rate to avoid attracting even
more cash to the U.S.
from Asia also pushed down short-term yields.
As the year drew to a close, yields on money market
securities of U.S.
companies generally edged higher. This coupled with the
typical year-end rise
in yields created good buying opportunities. So from mid-
November through
December, we enhanced the Fund's return by purchasing
securities maturing in
one to three months that provided attractive yields.
Weighted Average Maturity Compared To The Average Fund.
- -- MoneyMart Assets
- -- IBC Financial Data
General Purpose Money Fund Avg.
(GRAPH)
And Not So Well.
We Were Cautious.
Because U.S. economic growth remained strong throughout the
year, we expected
more than one federal funds rate increase. Even during
periods when the risk
of a second federal funds rate rise appeared less likely, we
were careful not
to lengthen the Fund's WAM too much.
Looking Ahead.
Yields on money market securities have dropped sharply
recently because some
investors believe the Asian economic crisis will slow U.S.
economic growth
enough to warrant a federal funds rate cut. While the
expansion will lose
steam as consumers in struggling Asian countries purchase
fewer exports from
the U.S. and export more to us, we believe our economy will
remain strong
enough to discourage any decreases in the overnight bank
lending rate in
the months ahead.
- ------------------------------------------------------------
- -------------------
1
<PAGE>
President's Letter
February 2, 1998
(PHOTO)
Investing Smart.
Dear Shareholder:
This is the season when many investors receive income tax
refunds or have a CD
or two maturing. What will you do with these assets?
Investing smart can be a
challenge especially given today's new investment choices.
The Federal Taxpayer Relief Act of 1997 is changing the way
Americans invest
and accumulate wealth, save for college or build a nest egg
for retirement.
While the law offers opportunity, it is also complex. You
may need help to put
things in perspective.
Now may be an excellent time for you and your Prudential
Financial Professional
to update your investment strategy and retirement plan. A
wise investor does so
periodically. You could find the tax law opening doors that
may benefit you now
or over the long term, such as --
- - Revised Capital Gains Tax Rates & Exclusions. Long-term
rates are down. Is
your portfolio positioned to benefit? Also, new rules allow
you to keep more
of the profit from the sale of your home (perhaps up to
$500,000 more).
- - New Roth IRAs. The Roth IRA features tax-free
distributions and does not
require mandatory withdrawals, which should be of particular
interest to
retirees seeking to shelter assets in a tax-free account.
- - New Education IRAs. Similar to a traditional IRA, but
specifically designed
for higher education. The new law also creates credits and
deductions to help
defray college costs.
- - Expanded IRAs. Rules governing traditional IRAs have been
extensively
revised. Deductibility and contribution limits have been
broadened as has the
list for penalty-free early withdrawals, including first-
time home buyers.
As you can see, what you don't know may cost you! That's why
I recommend you
call your Prudential Financial Professional and get a free
investment plan
checkup. Let us give you the information and tools to invest
smart.
Sincerely,
Brian M. Storms
President, Prudential Mutual Funds & Annuities
- ------------------------------------------------------------
- -------------------
2
<PAGE>
Portfolio of Investments
as of December 31 1997 PRUDENTIAL MONEYMART ASSETS, INC.
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Bank Notes--5.8%
American Express Centurion BankD
$30,000 5.94%, 1/5/98 $
30,000,775
9,000 5.95%, 1/13/98
8,999,894
36,000 6.04%, 1/23/98
36,008,647
Comerica Bank of DetroitD
25,000 5.90%, 1/5/98
24,998,494
98,000 5.90%, 1/11/98
97,992,555
Corestates Bank N.A.D
25,000 5.97%, 1/28/98
25,000,000
U.S. Bank N.AD
183,000 5.86%, 1/21/98
182,916,830
----------
- ----
405,917,195
- ------------------------------------------------------------
Certificates Of Deposit - Domestic--0.8%
Chase Manhattan Bank (USA)
45,000 5.75%, 2/10/98
45,000,000
CoreStates Bank N.A.
8,000 5.78%, 1/23/98
8,000,000
----------
- ----
53,000,000
- ------------------------------------------------------------
Certificates Of Deposit - Eurodollar--5.7%
Abbey National Treasury Services
PLC
300,000 5.81%, 3/3/98
300,000,000
Toronto Dominion Bank
50,000 5.62%, 1/30/98
50,000,000
Westdeutsche Landesbank
Girozentrale
49,000 5.82%, 8/3/98
48,977,744
----------
- ----
398,977,744
- ------------------------------------------------------------
Certificates Of Deposit - Yankee--17.5%
Bank of Montreal
35,000 5.64%, 1/15/98
35,000,000
44,000 5.64%, 1/29/98
44,000,000
86,000 5.65%, 1/29/98
86,000,000
Banque Nationale De Paris
100,000 5.65%, 1/27/98
100,000,000
Bayerische Hypotheken und Weschel
Bank
22,000 5.94%, 10/22/98
21,989,838
Canadian Imperial Bank of Commerce
$41,000 5.81%, 3/11/98 $
41,000,340
275,000 5.81%, 3/17/98
275,000,000
35,000 5.80%, 3/23/98
35,000,000
Commerzbank U.S. Finance, Inc.
28,000 6.08%, 5/27/98
27,996,257
Credit Agricole Indosuez
80,000 5.87%, 8/10/98
79,976,842
50,000 5.90%, 10/19/98
49,980,947
20,000 5.95%, 10/21/98
19,992,328
Dresdner Bank AG
73,000 5.76%, 7/31/98
72,941,530
National Westminster Bank PLC
50,000 6.06%, 5/26/98
49,990,523
56,000 6.09%, 5/27/98
55,995,723
5,000 5.92%, 6/23/98
5,000,282
Rabobank Nederland
150,000 5.98%, 3/20/98
149,993,873
Societe Generale North America,
Inc.
50,000 5.82%, 3/4/98
50,000,000
Swiss Bank Corp.
30,000 6.07%, 5/27/98
29,995,417
----------
- ----
1,229,853,900
- ------------------------------------------------------------
Commercial Paper--42.1%
A. H. Robins Co., Inc.
32,702 5.56%, 1/28/98
32,565,633
AC Acquisition Holding Co.
25,000 5.61%, 1/29/98
24,890,917
American General Finance Corp.
37,000 5.57%, 1/23/98
36,874,056
29,000 5.72%, 3/13/98
28,672,848
Aristar, Inc.
16,000 5.84%, 1/29/98
15,927,324
9,000 5.95%, 2/12/98
8,937,525
Associates Corp. of North America
50,000 5.57%, 1/20/98
49,853,014
125,000 5.61%, 1/27/98
124,493,542
23,000 5.73%, 3/12/98
22,743,742
50,000 5.73%, 3/13/98
49,434,958
80,000 5.73%, 3/17/98
79,045,000
Avco Financial Services, Inc.
45,000 5.61%, 1/30/98
44,796,638
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 3
<PAGE>
Portfolio of Investments
as of December 31 1997 PRUDENTIAL MONEYMART ASSETS, INC.
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Commercial Paper (cont'd.)
Barnett Banks, Inc.
$50,000 6.00%, 1/28/98 $
49,775,000
Barton Capital Corp.
45,000 5.95%, 2/9/98
44,709,938
Carnival Corp.
33,000 5.83%, 1/30/98
32,845,019
Caterpillar Financial Services
Corp.
5,500 5.95%, 1/27/98
5,476,365
Centric Capital Corp.
45,000 6.00%, 1/26/98
44,812,500
Chrysler Financial Corp.
85,000 5.79%, 2/9/98
84,466,838
CIT Group Holdings, Inc.
53,000 5.56%, 2/24/98
52,557,980
Coca-Cola Enterprises, Inc.
9,000 5.85%, 2/27/98
8,916,638
Dresdner U.S. Finance, Inc.
45,000 5.56%, 1/28/98
44,812,350
Duke Capital Corp.
22,100 5.90%, 1/21/98
22,027,561
61,000 5.90%, 1/23/98
60,780,061
Enterprise Funding Corp.
12,888 5.82%, 2/19/98
12,785,906
Falcon Asset Securitization Corp.
32,000 5.90%, 1/21/98
31,895,111
First Chicago Financial Corp.
28,000 5.72%, 2/13/98
27,808,698
36,000 5.73%, 2/26/98
35,679,120
First Data Corp.
20,000 5.60%, 1/27/98
19,919,111
Ford Motor Credit Corp.
119,000 5.57%, 1/22/98
118,613,349
General Electric Capital Corp.
50,000 5.74%, 1/8/98
49,944,194
100,000 5.71%, 1/12/98
99,825,528
110,000 5.70%, 1/13/98
109,791,000
General Motors Acceptance Corp.
294,200 5.76%, 2/9/98
292,364,192
Halifax PLC
20,000 5.72%, 3/11/98
19,780,733
Martin Marietta Materials
12,000 5.88%, 2/5/98
11,931,458
Mont Blanc Capital Corp.
$90,000 5.90%, 1/23/98 $
89,675,500
13,000 5.82%, 2/13/98
12,909,628
National Australia Funding,
Delaware
15,000 5.72%, 3/13/98
14,830,783
Old Line Funding Corp.
42,263 5.88%, 1/20/98
42,131,955
28,000 5.90%, 1/21/98
27,908,222
11,710 5.90%, 1/29/98
11,656,264
30,000 5.88%, 1/30/98
29,858,021
Receivables Capital Corp.
116,353 5.89%, 1/30/98
115,800,937
SAFECO Corp.
33,000 5.73%, 2/20/98
32,737,375
22,000 5.83%, 2/26/98
21,800,485
52,000 5.77%, 3/12/98
51,416,589
SAFECO Credit Company, Inc.
28,000 5.76%, 3/17/98
27,664,000
Sears Roebuck Acceptance Corp.
44,000 5.59%, 1/22/98
43,856,523
50,000 5.59%, 1/23/98
49,829,195
Smith Barney Inc.
85,000 5.62%, 1/21/98
84,734,611
74,000 5.62%, 1/27/98
73,699,642
Societe Generale
43,000 5.74%, 3/16/98
42,493,090
Special Purpose Accounts
Receivable Cooperative Corp.
25,000 5.84%, 2/20/98
24,797,222
18,000 5.86%, 2/20/98
17,853,500
14,000 5.80%, 3/26/98
13,810,533
Triple A One Funding Corp.
36,500 5.90%, 1/16/98
36,410,271
Variable Funding Capital Corp.
66,000 5.91%, 1/12/98
65,880,815
25,000 5.89%, 1/27/98
24,893,653
42,000 5.88%, 1/29/98
41,807,920
Windmill Funding Corp.
86,497 5.89%, 1/29/98
86,100,748
Xerox Capital (Europe) PLC
42,400 6.85%, 1/2/98
42,391,932
Xerox Overseas Holdings PLC
32,000 5.79%, 2/10/98
31,794,133
----------
- ----
2,958,497,394
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 4
<PAGE>
Portfolio of Investments
as of December 31 1997 PRUDENTIAL MONEYMART ASSETS, INC.
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Loan Participations--1.2%
Bell Atlantic Network Funding
Corp.
$12,000 6.33%, 1/23/98 $
12,000,000
Countrywide Home Loan, Inc.
26,000 6.25%, 1/30/98
26,000,000
Englehard Corp.
37,770 6.05%, 1/16/98
37,770,000
10,230 6.05%, 1/20/98
10,230,000
----------
- ----
86,000,000
- ------------------------------------------------------------
Other Corporate Obligations--24.4%
General Motors Acceptance Corp.
25,000 5.73%, 2/2/98
24,999,199
Goldman Sachs Group, L.P.D
370,700 6.03%, 4/22/98
370,700,000
Liquid Asset Backed Securities
TrustD
102,000 5.97%, 1/22/98
102,000,000
Merrill Lynch & Co., Inc.D
38,000 5.96%, 1/8/98
37,997,149
5,000 5.68%, 1/12/98
4,999,918
134,000 5.90%, 1/26/98
133,991,856
Morgan Stanley Dean Witter
Discover Group, Inc.D
55,000 5.88%, 1/15/98
55,000,000
96,000 6.07%, 2/13/98
96,000,000
Restructured Asset SecuritiesD
175,000 5.99%, 1/28/98
175,000,000
Short-Term Repackaged Asset TrustD
86,000 6.00%, 1/15/98
86,000,000
Short-Term Card Account TrustD
272,000 6.00%, 1/15/98
272,000,000
SMM Trust Notes 1997-XD
87,000 6.00%, 1/12/98
87,000,000
Strategic Money Market Trust
1997-AD
265,000 5.91%, 3/23/98
265,000,000
----------
- ----
1,710,688,122
Total Investments--97.5%
(amortized cost $6,842,934,355*)
$6,842,934,355
Other assets in excess of
liabilities--2.5%
178,064,200
----------
- ----
Net Assets--100%
$7,020,998,555
----------
- ----
----------
- ----
</TABLE>
- ---------------
* Federal income tax basis for portfolio securities is
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
December 31, 1997 was as
follows:
<TABLE>
<S> <C>
Commercial Banks.....................................
41.5%
Asset Backed Securities.............................. 14.5
Security Brokers & Dealers........................... 12.2
Motor Vehicle........................................ 7.4
Personal Credit Institutions......................... 6.6
Short-Term Business Credit........................... 6.1
Fire & Marine Casualty Insurance..................... 1.9
Department Stores.................................... 1.3
Electrical Services.................................. 1.2
Photographic Equipment............................... 1.1
Bank Holding Companies-Domestic...................... 0.9
Pharmaceuticals...................................... 0.8
Refinery............................................. 0.7
Water Transportation................................. 0.5
Mortgage Banks....................................... 0.4
Telephone & Communications........................... 0.2
Construction Machines & Equipment.................... 0.1
Beverages............................................ 0.1
-----
97.5
Other assets in excess of liabilities................ 2.5
-----
100.0%
-----
-----
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 5
<PAGE>
Statement of Assets and Liabilities PRUDENTIAL
MONEYMART ASSETS, INC.
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
Assets
December 31, 1997
- -----------------
<S> <C>
Investments, at amortized cost which approximates market
value.......................................... $
6,842,934,355
Cash........................................................
............................................
1,167,776
Receivable for Fund shares
sold........................................................
................. 283,378,201
Interest
receivable..................................................
................................... 35,936,679
Deferred expenses and other
assets......................................................
................ 173,639
- -----------------
Total
assets......................................................
................................... 7,163,590,650
- -----------------
Liabilities
Payable for Fund shares
reacquired..................................................
.................... 135,427,516
Accrued
expenses....................................................
.................................... 3,569,320
Management fee
payable.....................................................
............................. 1,807,426
Dividends
payable.....................................................
.................................. 1,416,072
Distribution fee
payable.....................................................
........................... 371,761
- -----------------
Total
liabilities.................................................
................................... 142,592,095
- -----------------
Net
Assets......................................................
........................................ $
7,020,998,555
- -----------------
- -----------------
Net assets were comprised of:
Common Stock, at par ($.001 par value; 15 billion shares
authorized for issuance).................... $
701,205,591
Paid-in capital in excess of
par.........................................................
............ 6,319,792,964
- -----------------
Net assets, December 31,
1997........................................................
................... $ 7,020,998,555
- -----------------
- -----------------
Class A:
Net asset value, offering price and redemption price per
share
($6,863,646,717 / 6,863,646,717 shares of common stock
issued and outstanding)....................
$1.00
- -----------------
- -----------------
Class Z:
Net asset value, offering price and redemption price per
share
($157,351,838 / 157,351,838 shares of common stock
issued and outstanding)........................
$1.00
- -----------------
- -----------------
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 6
<PAGE>
PRUDENTIAL MONEYMART ASSETS, INC.
MONEYMART ASSETS, INC.
Statement of Operations
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
Net Investment Income December 31, 1997
<S> <C>
Income
Interest............................. $412,764,608
-----------------
- -
Expenses
Management fee....................... 21,943,602
Distribution fee--Class A............ 8,902,115
Transfer agent's fees and expenses... 16,979,000
Reports to shareholders.............. 2,011,000
Registration fees.................... 438,000
Custodian's fees and expenses........ 215,000
Insurance expense.................... 127,000
Director's fees and expenses......... 57,000
Legal fees and expenses.............. 45,000
Audit fee............................ 35,000
Miscellaneous........................ 55,640
-----------------
- -
Total expenses.................... 50,808,357
-----------------
- -
Net investment income................... 361,956,251
Net Realized Gain on Investments
Net realized gain on investment
transactions......................... 10,050
-----------------
- -
Net Increase in Net Assets
Resulting from Operations............... $361,966,301
-----------------
- -
-----------------
- -
</TABLE>
PRUDENTIAL MONEYMART ASSETS, INC.
MONEYMART ASSETS, INC.
Statement of Changes in Net Assets
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Increase (Decrease) Year Ended December 31,
in Net Assets 1997 1996
<S> <C> <C>
Operations
Net investment income... $ 361,956,251 $
358,240,587
Net realized gain on
investment
transactions......... 10,050
390,335
---------------- -----------
- -----
Net increase in net
assets resulting from
operations........... 361,966,301
358,630,922
---------------- -----------
- -----
Dividends and distributions
to shareholders (Note 1)
Class A.............. (353,829,321)
(353,704,755)
Class Z.............. (8,136,980)
(4,926,167)
---------------- -----------
- -----
(361,966,301)
(358,630,922)
---------------- -----------
- -----
Fund share transactions
(Note 4)
(At $1.00 per share)
Proceeds from shares
sold................. 32,812,146,168
31,398,251,715
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends and
distributions........ 346,107,446
344,952,119
Cost of shares
reacquired........... (33,601,689,773)
(31,500,427,083)
---------------- -----------
- -----
Net increase (decrease)
in net assets from
Fund share
transactions......... (443,436,159)
242,776,751
---------------- -----------
- -----
Total increase
(decrease).............. (443,436,159)
242,776,751
Net Assets
Beginning of year.......... 7,464,434,714
7,221,657,963
---------------- -----------
- -----
End of year................ $ 7,020,998,555 $
7,464,434,714
---------------- -----------
- -----
---------------- -----------
- -----
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 7
<PAGE>
Notes to Financial Statements 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 any discount or premium.
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. Expenses are recorded on the accrual basis
which may require the
use of certain estimates by management. Net investment
income of the Fund
consists of interest accrued and discount earned less
estimated expenses
applicable to the dividend period. Net investment income
(other than
distribution fees), and realized gains or losses, if any,
are allocated daily to
each class of shares based upon the relative proportion of
net assets of each
class at the beginning of the day.
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
investment income to its
shareholders. Therefore, no federal income tax provision is
required.
The cost of portfolio securities for federal income tax
purposes is
substantially the same as for financial reporting purposes.
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.
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 year ended
December 31, 1997,
the Fund incurred fees of approximately $15,471,100 for the
services of PMFS. As
of December 31, 1997, approximately $1,236,600 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 nonaffiliates.
- ------------------------------------------------------------
- --------------------
8
<PAGE>
Notes to Financial Statements PRUDENTIAL
MONEYMART ASSETS, INC.
- ------------------------------------------------------------
- --------------------
Note 4. Capital
The Fund offers Class A and Class Z shares. Class Z shares
are not subject to
any distribution and/or service fees 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 7,020,998,555 shares of
common stock issued
and outstanding at December 31, 1997, PIFM owned 12,179
Class A shares.
Transactions in shares of common stock for the years ended
December 31, 1996 and
1997 were as follows:
<TABLE>
<CAPTION>
Year ended December 31,
-------------------------------
- -----
Class A 1997 1996
- --------------------------- ---------------- -----------
- -----
<S> <C> <C>
Shares sold................ 32,421,538,819
31,034,483,075
Shares issued in
reinvestment of dividends
and distributions........ 338,151,149
340,215,223
Shares reacquired.......... (33,211,266,138)
(31,281,133,374)
---------------- -----------
- -----
Net increase (decrease) in
shares outstanding....... (451,576,170)
93,564,924
---------------- -----------
- -----
---------------- -----------
- -----
<CAPTION>
March 1,
1996*
Year ended through
December 31, December
31,
1997 1996
---------------- -----------
- -----
Class Z
- ---------------------------
<S> <C> <C>
Shares sold................ 390,607,349
301,984,043
Shares issued**............ --
61,784,597
Shares issued in
reinvestment of dividends
and distributions........ 7,956,297
4,736,896
Shares reacquired.......... (390,423,635)
(219,293,709)
---------------- -----------
- -----
Net increase in shares
outstanding.............. 8,140,011
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.
- ------------------------------------------------------------
- --------------------
9
<PAGE>
Financial Highlights PRUDENTIAL
MONEYMART ASSETS, INC.
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
Class A
-------
- ------------------------------------------------------------
- --
Year Ended December 31,
-------
- ------------------------------------------------------------
- --
1997
1996 1995 1994 1993
-------
- --- ---------- ---------- ---------- --------
- --
<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...
.050 .048 .054 .037
.027
Dividends and distributions to shareholders....
(.050) (.048) (.054) (.037)
(.027)
-------
- --- ---------- ---------- ---------- --------
- --
Net asset value, end of period................. $
1.000 $ 1.000 $ 1.000 $ 1.000 $
1.000
-------
- --- ---------- ---------- ---------- --------
- --
-------
- --- ---------- ---------- ---------- --------
- --
TOTAL RETURN(a)................................
5.09% 4.97% 5.51% 3.72%
2.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)................
$6,863,647 $7,315,223 $7,221,658 $6,544,880
$7,318,633
Average net assets (000).......................
$7,121,692 $7,326,023 $6,914,520 $7,071,381
$7,742,989
Ratios to average net assets:
Expenses, including distribution fee...........
.70% .71% .69% .71%
.71%
Expenses, excluding distribution fee...........
.58% .59% .56% .58%
.58%
Net investment income..........................
4.97% 4.83% 5.38% 3.65%
2.63%
<CAPTION>
Class Z
March 1,
Year
Ended Through
December
31, 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...
.051 .040
Dividends and distributions to shareholders....
(.051) (.040)
---------
- --- ------------
Net asset value, end of period................. $
1.000 $ 1.000
---------
- --- ------------
---------
- --- ------------
TOTAL RETURN(a)................................
5.22% 4.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)................
$157,352 $149,212
Average net assets (000).......................
$159,508 $121,135
Ratios to average net assets:
Expenses, including distribution fee...........
.58% .59%(c)
Expenses, excluding distribution fee...........
.58% .59%(c)
Net investment income..........................
5.10% 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. 10
<PAGE>
Report of Independent Accountants PRUDENTIAL
MONEYMART ASSETS, INC.
- ------------------------------------------------------------
- --------------------
To the Shareholders and Board of Directors of
Prudential MoneyMart Assets, Inc.:
In our opinion, the accompanying statement of assets and
liabilities, including
the portfolio of investments, and the related statements of
operations and of
changes in net assets and the financial highlights present
fairly, in all
material respects, the financial position of Prudential
MoneyMart Assets, Inc.
(the 'Fund') at December 31, 1997, and the results of its
operations, the
changes in its net assets and the financial highlights for
the year then ended,
in conformity with generally accepted accounting principles.
These financial
statements and financial highlights (hereafter referred to
as 'financial
statements') are the responsibility of the Fund's
management; our responsibility
is to express an opinion on these financial statements based
on our audit. We
conducted our audit of these financial statements in
accordance with generally
accepted auditing standards which require that we plan and
perform the audit to
obtain reasonable assurance about whether the financial
statements are free of
material misstatement. An audit includes examining, on a
test basis, evidence
supporting the amounts and disclosures in the financial
statements, assessing
the accounting principles used and significant estimates
made by management, and
evaluating the overall financial statement presentation. We
believe that our
audit, which included confirmation of securities at December
31, 1997 by
correspondence with the custodian, provides a reasonable
basis for the opinion
expressed above. The accompanying statement of changes in
net assets for the
year ended December 31, 1996 and the financial highlights
for the periods other
than the year ended December 31, 1997 were audited by other
independent
accountants, whose opinion dated February 4, 1997 was
unqualified.
PRICE WATERHOUSE LLP
1177 Avenue of the Americas
New York, New York
February 6, 1998
- ------------------------------------------------------------
- --------------------
11
<PAGE>
Change of Auditors PRUDENTIAL
MONEYMART ASSETS, INC.
- ------------------------------------------------------------
- --------------------
Effective March 1, 1997, Deloitte & Touche LLP was
terminated as the Fund's
auditors. For the years ended December 31, 1993 through
December 31, 1996,
Deloitte & Touche LLP expressed an unqualified opinion on
the Fund's financial
statements. There were no disagreements between Fund
management and Deloitte &
Touche LLP prior to their termination. The Board of
Directors approved the
termination of Deloitte & Touche LLP and the appointment of
Price Waterhouse LLP
as the Fund's independent accountants.
- ------------------------------------------------------------
- --------------------
12
<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 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, CFA
Richard A. Redeker
Robin B. Smith
Stephen Stoneburn
Nancy H. Teeters
Officers
Richard A. Redeker, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant Treasurer
S. Jane Rose, Secretary
Robert C. Rosselot, Assistant 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 07102-3777
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.
This report is not authorized for distribution to
prospective investors unless
preceded or accompanied by a current prospectus.
74435H102 MF108E
74435H201 Cat. #430252D
