(ICON)
Prudential
MoneyMart
Assets, Inc.
SEMI
ANNUAL
REPORT
June 30, 1998
(LOGO)
<PAGE>
Prudential MoneyMart Assets, Inc.
Performance At A Glance.
The first six months of 1998 saw yields on short-term securities fluctuate as
investors attempted to anticipate Federal Reserve Board intentions. This
created several buying opportunities that your Prudential MoneyMart Assets
Fund used to its advantage. Your Fund provided attractive yields and
maintained high credit quality and a stable $1 net asset value. On June 30,
1998, our seven-day current yield was 5.00% for Class A shares, compared to the
4.94% yield of the average money market fund tracked by IBC Financial Data.
Fund Facts As of 6/30/98
<TABLE>
<CAPTION>
7-Day Net Asset Weighted Avg. Net Assets
Current Yld Value (NAV) Mat. (WAM) (Millions)
<S> <C> <C> <C> <C>
Class A 5.00% $1 64 Days $6,997
Class Z* 5.13% $1 64 Days $ 186
IBC Financial Data
Money Fund Avg.
(General Purpose**) 4.94% $1 63 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 are not subject to a distribution fee.
**IBC Financial Data reports a seven-day current yield, NAV, and WAM on
Tuesdays. This is the data of all funds in the International Business
Communication (IBC) Financial Data Money Fund Average (General Purpose-Taxable
1st & 2nd Tier) category as of June 30, 1998.
How Investments Compared.
(As of 6/30/98)
(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 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.
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.
Money Fund Yields Stabilized.
(CHART)
<PAGE>
Joseph M. Tully, Fund Manager
(PHOTO)
Portfolio
Manager's Report
Prudential MoneyMart Assets seeks maximum 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
instruments 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.
A Word About Quality.
As of June 30, 1998, substantially all of the portfolio's investments were
rated in the highest category by at least two major, independent rating
agencies or, if not rated, were deemed to be of equivalent credit quality by
our credit research staff. Investments deemed to be of equivalent credit
quality are reported to the Board of Directors.
Strategy Session.Managing Expectations.
- -------------------------------------------------------------------------------
Our strategy over the past six months was to take advantage of attractive
buying opportunities created by overdone swings in investor sentiment.
Swings in sentiment provide opportunities; the key is to be properly positioned
to take advantage of them -- and we were. Late in the fourth quarter of 1997
we made term purchases that gave us the flexibility to "sit out" the January
market rally and avoid purchases of lower-yielding securities. In January,
investors believed that the deepening Asian economic crisis would slow the U.S.
economy. Such a development might force the central bank to ease monetary
policy to stimulate growth. However, the continued strength of the American
economy, plus some "balanced" comments by Federal Reserve Board Chairman Alan
Greenspan in late February, abruptly dispelled the notion that the Fed would
lower short-term interest rates anytime soon.
As a result, investor sentiment changed and money market rates moved higher.
We were properly positioned in February to take advantage of shifting investor
sentiment by purchasing one-year term securities at attractive prices and
higher yields.
For much of the second quarter, large U.S. Treasury paydowns on debt kept a
lid on short-term rates. However, as the reporting period ended, a number of
technical market factors converged to create an opportunity to buy securities
at what we considered to be "fire sale" prices. We used the occasion to
reposition the Fund's weighted average maturity (WAM) to be more in line with
the competitive average.
<PAGE>
What Went Well.
- -------------------------------------------------
Riding Out The Wave.
Investors drove down short-term interest rates in January. They expected the
crisis in Asia to slow U.S. economic growth enough to prompt a federal funds
rate cut that would revitalize the domestic economy. (The federal funds rate
is the rate that banks charge each other for overnight loans.)
Fortunately for us, we had lengthened the Fund's WAM in December 1997 by
purchasing higher yielding securities that allowed us to "ride out the wave."
In other words, we were able to avoid purchasing lower yielding securities in
January. Instead, we waited until after Federal Reserve Chairman Greenspan's
remarks in late February to buy higher yielding, one-year term securities that
also extended our WAM. This was a strategy we repeated several times during
the reporting period and our performance indicates that we apparently were
fairly successful at anticipating these market swings.
And Not So Well.
- -------------------------------------------------
More of the Same.
It's been more than a year since the Federal Reserve last raised the key
federal funds rate to 5.50% from 5.25% on March 25, 1997. While central
bankers apparently have a bias to raise rates, the economic conditions --
namely inflationary pressures -- have not been there to justify an increase.
Unfortunately, a prolonged period of stable short-term interest rates will
limit attractive investment opportunities for your Fund.
Looking Ahead.
- -------------------------------------------------
Despite the strong domestic economy, the absence of inflationary pressures
combined with the economic slowdown in Asia should keep the Federal Reserve
from moving on interest rates for the next several months, in our opinion.
Still, Federal Reserve Chairman Greenspan recently warned that higher
inflation remains more of a risk than recession in the U.S.
We will manage the Fund to maintain an attractive return while continuing to
look for situations of overdone market sentiment that create buying
opportunities and lock in higher yields for you.
1
<PAGE>
President's Letter August 4, 1998
- -------------------------------------------------------------------------------
(PHOTO)
Managing Expectations.
Dear Shareholder:
For nearly eight years we've enjoyed above-average, double-digit returns from
stocks--a bull market of unprecedented duration. As a result, many of us have
grown accustomed to seeing the Dow Jones Industrial Average, the S&P 500 and
other market indexes set new records. That's why the fluctuations normally
seen in financial markets may take investors by surprise.
Although the media has given ample coverage to the factors that have caused
concern in 1998, we'd like to remind you that there is also good news to
report: the US economy is healthy and continues to grow. Inflation remains
subdued and employment is strong.
Even with a sound economy, it isn't easy to maintain your investment discipline
when the market is fluctuating. Here are some thoughts that may help:
- - Manage Your Expectations. Experienced mutual fund investors understand that
financial markets rise and fall. Over time, however, stocks and bonds have
produced attractive returns that have kept ahead of inflation.
- - Don't Invest Emotionally. If you have long-term (several years or longer)
investment goals, it may be counter-productive to sell an investment in
reaction to short-term market fluctuation. Over the course of several years,
it's not unusual for stocks and bonds to experience several periods of
market uncertainty.
- - Diversification Lessens Risk. Market sectors seldom move in tandem. A
well-diversified portfolio that includes stock, bond, and money market
mutual funds can lessen the effects of market volatility over time.
- - We're On Your Side. Your Prudential professional can help you understand
what's happening in the markets. He or she can assist you in making informed
decisions based upon a thorough knowledge of your financial needs and
long-term goals. Call your Prudential professional 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
June 30, 1998 (Unaudited) PRUDENTIAL MONEYMART ASSETS, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Bank Notes--6.9%
Bank Austria Finance, Inc.(b)
$78,898 5.53%, 8/17/98 $ 78,328,378
Bank of New York(b)
50,000 5.515%, 7/22/98 49,839,146
50,000 5.515%, 8/6/98 49,724,250
Corestates Bank, N.A.(b)
15,000 5.60625%, 7/21/98 15,000,000
First Union National Bank(b)
86,000 5.59%, 2/19/99 86,000,000
Key Bank N.A.(b)
33,000 5.54%, 7/1/98 32,989,818
U.S. Bank N.A.(b)
183,000 5.55234%, 7/15/98 182,961,500
--------------
494,843,092
- ------------------------------------------------------------
Certificates Of Deposit - Domestic--1.9%
Chase Manhattan Bank (USA)
97,000 5.62%, 7/6/98 97,000,000
30,000 5.57%, 8/24/98 30,000,000
First Tennessee Bank N.A.
7,000 5.55%, 7/13/98 6,999,928
--------------
133,999,928
- ------------------------------------------------------------
Certificates Of Deposit - Eurodollar--5.0%
Abbey National Treasury Services
PLC
100,000 5.75%, 3/5/99 100,000,000
50,000 5.72%, 6/11/99 49,963,796
Westdeutsche Landesbank
Girozentrale
160,000 5.55%, 7/8/98 160,000,000
49,000 5.82%, 8/3/98 48,996,568
--------------
358,960,364
- ------------------------------------------------------------
Certificates Of Deposit - Yankee--14.7%
Bank of Montreal
50,000 5.473%, 7/15/98 49,893,581
Barclays Bank PLC
50,000 5.56%, 2/25/99 49,981,157
Bayerische Hypotheken und Weschel
Bank
44,000 5.58%, 8/10/98 44,000,401
$22,000 5.94%, 10/22/98 $ 21,996,094
11,000 5.675%, 3/3/99 10,996,816
Canadian Imperial Bank of Commerce
9,000 5.57%, 8/3/98 9,000,000
94,000 5.55%, 2/10/99 93,972,327
Credit Agricole Indosuez
80,000 5.87%, 8/10/98 79,995,808
50,000 5.90%, 10/19/98 49,992,798
20,000 5.95%, 10/21/98 19,997,067
Credit Communal De Belgique S.A.
14,000 5.58%, 8/13/98 14,000,000
33,000 5.58%, 8/18/98 33,000,000
86,000 5.58%, 8/24/98 86,000,000
20,000 5.575%, 8/28/98 19,999,290
Deutsche Bank
150,000 5.54%, 2/24/99 149,953,076
25,000 5.57%, 2/26/99 24,992,116
100,000 5.62%, 2/26/99 99,955,884
50,000 5.66%, 3/3/99 49,983,917
Dresdner Bank AG
73,000 5.76%, 7/31/98 72,991,687
Rabobank Nederland N.V.
80,000 5.50%, 2/9/99 79,962,478
--------------
1,060,664,497
- ------------------------------------------------------------
Commercial Paper--52.9%
American General Finance Corp.
6,000 5.53%, 8/31/98 5,943,778
44,000 5.53%, 9/4/98 43,560,672
15,000 5.53%, 9/18/98 14,817,971
American Honda Finance Corp.
21,000 5.57%, 9/10/98 20,769,309
Aon Corp.
11,470 5.60%, 7/16/98 11,443,237
22,000 5.55%, 7/23/98 21,925,383
9,279 5.55%, 7/24/98 9,246,098
Aristar, Inc.
23,000 5.57%, 7/31/98 22,893,242
6,850 5.60%, 8/11/98 6,806,312
Associates Corp. of North America
100,000 5.53%, 7/28/98 99,585,250
58,000 5.53%, 7/29/98 57,750,536
100,000 5.53%, 7/30/98 99,554,528
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 3
<PAGE>
<PAGE>
Portfolio of Investments as of
June 30, 1998 (Unaudited) PRUDENTIAL MONEYMART ASSETS, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Commercial Paper (cont'd.)
$36,000 5.52%, 9/9/98 $ 35,613,600
45,000 5.52%, 9/10/98 44,510,100
Atlantic Richfield Co.
41,000 5.55%, 9/14/98 40,525,937
Barton Capital Corp.
29,149 5.75%, 7/8/98 29,116,410
13,000 5.70%, 7/14/98 12,973,242
19,000 5.62%, 8/28/98 18,827,966
BBL North America, Inc.
10,000 5.52%, 8/14/98 9,932,533
123,000 5.52%, 8/21/98 122,038,140
Bell Atlantic Network Funding
Corp.
30,000 5.58%, 7/21/98 29,907,000
16,000 5.56%, 7/30/98 15,928,338
Beneficial Corp.
14,000 5.59%, 7/24/98 13,950,001
Centric Capital Corp.
5,000 5.55%, 7/1/98 5,000,000
18,125 5.55%, 7/20/98 18,071,909
7,000 5.63%, 7/27/98 6,971,537
20,000 5.57%, 8/24/98 19,832,900
CIT Group Holdings, Inc.
29,000 5.56%, 8/5/98 28,843,239
50,000 5.57%, 8/27/98 49,559,042
Coca-Cola Enterprises, Inc.
26,000 5.54%, 9/22/98 25,667,908
Commercial Credit Co.
40,000 5.52%, 8/13/98 39,736,267
11,000 5.53%, 8/19/98 10,917,204
16,000 5.53%, 9/8/98 15,830,413
Commerzbank U.S. Finance, Inc.
29,000 5.53%, 8/26/98 28,750,536
Corporate Receivables Corp.
9,000 5.60%, 7/27/98 8,963,600
Countrywide Home Loan, Inc.
16,000 5.60%, 7/28/98 15,932,800
34,154 5.60%, 7/31/98 33,994,615
11,000 5.60%, 8/4/98 10,941,822
CXC, Inc.
66,000 5.55%, 7/8/98 65,928,775
Du Pont (E. I.) De Nemours & Co.,
Inc.
28,200 5.60%, 8/13/98 28,011,373
Eastman Kodak Co.
$12,000 5.57%, 9/1/98 $ 11,884,887
First Chicago Financial Corp.
26,000 5.53%, 9/11/98 25,712,440
First Data Corp.
$21,000 5.57%, 7/21/98 20,935,017
21,000 5.57%, 7/28/98 20,912,273
Ford Motor Credit Corp.
74,364 5.54%, 7/2/98 74,352,556
226,000 5.53%, 7/10/98 225,687,555
General Electric Capital Corp.
20,000 5.48%, 7/9/98 19,975,644
17,000 5.51%, 9/3/98 16,833,476
30,000 5.53%, 9/3/98 29,705,067
26,000 5.51%, 9/10/98 25,717,459
200,000 5.52%, 11/25/98 195,492,000
General Motors Acceptance Corp.
72,000 5.58%, 7/23/98 71,754,480
103,000 5.52%, 8/18/98 102,241,920
Goldman Sachs Group L.P.
13,000 5.8125%, 7/1/98 13,000,000
2,700 5.8125%, 7/1/98 2,700,000
GTE Corp.
13,000 5.67%, 7/8/98 12,985,668
25,000 5.67%, 7/10/98 24,964,563
Hertz Corp.
19,303 5.57%, 8/11/98 19,180,549
ING America Insurance Hldgs., Inc.
20,000 5.53%, 8/5/98 19,892,472
9,000 5.54%, 8/21/98 8,929,365
Martin Marietta Material
7,000 5.60%, 8/6/98 6,960,800
Mont Blanc Capital Corp.
28,715 5.60%, 8/27/98 28,460,394
21,289 5.57%, 9/9/98 21,058,428
Monte Rosa Capital Corp.
95,000 5.60%, 8/25/98 94,187,222
59,000 5.63%, 8/27/98 58,474,064
Nations Bank Corp.
7,666 5.52%, 9/2/98 7,591,946
Morgan Stanley Dean Witter
Discover Group, Inc.(b)
55,000 5.85156%, 7/15/98 55,000,000
96,000 5.85938%, 8/14/98 96,000,000
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 4
<PAGE>
<PAGE>
Portfolio of Investments as of
June 30, 1998 (Unaudited) PRUDENTIAL MONEYMART ASSETS, INC.
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Commercial Paper (cont'd.)
Nordbanken North America, Inc.
$57,000 5.52%, 8/4/98 $ 56,702,840
45,000 5.52%, 9/18/98 44,454,900
Norwest Financial, Inc.
62,000 5.57%, 7/23/98 61,788,959
19,000 5.52%, 8/17/98 18,863,073
Old Line Funding Corp.
$18,000 5.60%, 7/24/98 17,935,600
40,558 5.60%, 7/28/98 40,387,656
27,000 5.59%, 8/5/98 26,853,263
Quincy Capital Corp.
17,000 5.60%, 7/22/98 16,944,467
SAFECO Corp.
72,000 5.54%, 8/18/98 71,468,160
10,000 5.54%, 8/25/98 9,915,361
61,000 5.54%, 9/14/98 60,295,958
Salomon Smith Barney Hldgs., Inc.
12,000 5.53%, 8/17/98 11,913,363
122,000 5.55%, 8/24/98 120,984,350
16,000 5.53%, 9/17/98 15,808,293
SBC Finance
250,000 5.53%, 8/24/98 247,926,250
Sears Roebuck Acceptance Corp.
25,000 5.55%, 8/20/98 24,807,292
Special Purpose Accounts
Receivable Cooperative Corp.
15,000 5.62%, 8/24/98 14,873,550
Svenska Handelsbanken
74,000 5.53%, 8/10/98 73,545,311
Thunder Bay Funding Inc.
14,444 5.70%, 7/9/98 14,425,704
40,995 5.68%, 7/10/98 40,936,787
44,439 5.75%, 7/8/98 44,389,315
UBS Finance, Inc.
98,000 5.53%, 8/10/98 97,397,844
Windmill Funding Corp.
22,000 5.60%, 7/27/98 21,911,022
$64,005 5.60%, 7/28/98 $ 63,736,179
45,000 5.63%, 7/30/98 44,795,912
23,000 5.62%, 8/28/98 22,791,748
Wood Street Funding Corp
5,000 5.60%, 8/28/98 4,954,889
--------------
3,801,971,814
- ------------------------------------------------------------
Loan Participations--0.4%
Cooper Industries, Inc.
20,205 5.65%, 7/13/98 20,205,000
Halliburton Corp.
9,000 5.80%, 7/21/98 9,000,000
--------------
29,205,000
- ------------------------------------------------------------
Other Corporate Obligations--18.8%
Goldman, Sachs Group, L.P.(b)
355,000 5.8125%, 9/17/98 355,000,000
Liquid Asset Backed Securities
Trust(b)
96,922 5.65625%, 7/22/98 96,921,739
63,970 5.65625%, 7/27/98 63,970,314
Merrill Lynch & Co., Inc.(b)
$38,000 5.61625%, 7/8/98 37,998,992
44,000 5.53%, 8/14/98 43,702,609
100,000 5.52%, 9/29/98 98,620,000
Restructured Asset Securities(b)
175,000 5.64625%, 7/28/98 175,000,000
21,000 5.6875%, 7/31/98 21,000,000
Short Term Repackaged Asset
Trust(b)
86,000 5.67825%, 7/15/98 86,000,000
SMM Trust Notes 1997-X(b)
87,000 5.65625%, 7/13/98 87,000,000
Strategic Money Market Trust
1997-A(b)
19,000 5.65625%, 7/6/98 19,000,000
265,000 5.6875%, 9/23/98 265,000,000
--------------
1,349,213,654
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 5
<PAGE>
<PAGE>
PRUDENTIAL MONEYMART ASSETS, INC.
Portfolio of Investments as of June 30, 1998 (Unaudited)
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Total Investments--100.6%
(amortized cost $7,228,858,349(a)) $7,228,858,349
Liabilities in excess of
other assets--(0.6%) (44,972,604)
--------------
Net Assets--100% $7,183,885,745
--------------
--------------
</TABLE>
- ---------------
(a) Federal income tax basis for portfolio securities is the same as for
financial reporting purposes.
(b) 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, 1998 was as
follows:
<TABLE>
<S> <C>
Commercial Banks..................................... 48.5%
Asset Backed Securities.............................. 11.8
Security Brokers & Dealers........................... 11.8
Personal Credit Institutions......................... 8.2
Motor Vehicle........................................ 7.2
Short-Term Business Credit........................... 5.1
Fire & Marine Casualty Insurance..................... 2.0
Telephone & Communications........................... 1.2
Mortgage Banks....................................... .9
Health............................................... .6
Computer Rental...................................... .6
Bank Holding Companies-Domestic...................... .5
Plastic.............................................. .5
Department Stores.................................... .4
Beverages............................................ .4
Electric Services.................................... .3
Construction Machines & Equipment.................... .2
Mining............................................... .2
Photographic Equipment............................... .2
-----
100.6
Liabilities in excess of other assets................ (0.6)
-----
100.0%
-----
-----
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 6
<PAGE>
<PAGE>
Statement of Assets and Liabilities
(Unaudited) PRUDENTIAL MONEYMART ASSETS, INC.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Assets June 30, 1998
--------------
<S> <C>
Investments, at amortized cost which approximates market value.............................................. $7,228,858,349
Cash........................................................................................................ 11,024,618
Receivable for Fund shares sold............................................................................. 244,480,464
Interest receivable......................................................................................... 41,355,509
Deferred expenses and other assets.......................................................................... 111,635
--------------
Total assets............................................................................................. 7,525,830,575
--------------
Liabilities
Payable for Fund shares reacquired.......................................................................... 328,847,859
Dividends payable........................................................................................... 7,467,826
Accrued expenses............................................................................................ 3,198,195
Management fee payable...................................................................................... 2,079,376
Distribution fee payable.................................................................................... 351,574
--------------
Total liabilities........................................................................................ 341,944,830
--------------
Net Assets.................................................................................................. $7,183,885,745
--------------
--------------
Net assets were comprised of:
Common Stock, at par ($.001 par value; 15 billion shares authorized for issuance)........................ $ 717,494,310
Paid-in capital in excess of par......................................................................... 6,466,391,435
--------------
Net assets, June 30, 1998................................................................................... $7,183,885,745
--------------
--------------
Class A:
Net asset value, offering price and redemption price per share
($6,997,047,128 / 6,997,047,128 shares of common stock issued and outstanding)........................ $1.00
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($186,838,617 / 186,838,617 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
<S> <C>
Net Investment Income June 30, 1998
Income
Interest................................... $211,497,529
-------------
Expenses
Management fee............................. 11,120,518
Distribution fee--Class A.................. 4,503,896
Transfer agent's fees and expenses......... 8,047,000
Reports to shareholders.................... 818,000
Registration fees.......................... 253,000
Custodian's fees and expenses.............. 107,000
Insurance expense.......................... 62,000
Director's fees and expenses............... 28,000
Audit fee and expenses..................... 17,000
Legal fees and expenses.................... 14,000
Miscellaneous.............................. 5,141
-------------
Total expenses.......................... 24,975,555
-------------
Net investment income......................... 186,521,974
Net Realized Gain on Investments
Net realized gain on investment
transactions............................... 28,485
-------------
Net Increase in Net Assets
Resulting from Operations..................... $186,550,459
-------------
-------------
</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 1998 1997
<S> <C> <C>
Operations
Net investment income... $ 186,521,974 $ 361,956,251
Net realized gain on
investment
transactions......... 28,485 10,050
---------------- ----------------
Net increase in net
assets resulting from
operations........... 186,550,459 361,966,301
---------------- ----------------
Dividends and distributions
to shareholders (Note 1)
Class A.............. (182,032,129) (353,829,321)
Class Z.............. (4,518,330) (8,136,980)
---------------- ----------------
(186,550,459) (361,966,301)
---------------- ----------------
Fund share transactions
(Note 4)
(At $1.00 per share)
Proceeds from shares
sold................. 16,140,362,471 32,812,146,168
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends and
distributions........ 172,925,224 346,107,446
Cost of shares
reacquired........... (16,150,400,505) (33,601,689,773)
---------------- ----------------
Net increase (decrease)
in net assets from
Fund share
transactions......... 162,887,190 (443,436,159)
---------------- ----------------
Total increase
(decrease).............. 162,887,190 (443,436,159)
Net Assets
Beginning of period........ 7,020,998,555 7,464,434,714
---------------- ----------------
End of period.............. $ 7,183,885,745 $ 7,020,998,555
---------------- ----------------
---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 8
<PAGE>
<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 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. Effective July 1, 1998,
Prudential Investment Management Services LLC ('PIMS') became the distributor of
the Fund and will serve the Fund under the same terms and conditions as under
the arrangement with PSI.
PSI, PIFM, PIMS and PIC are indirect, wholly owned subsidiaries of The
Prudential Insurance Company of America.
- --------------------------------------------------------------------------------
9
<PAGE>
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL MONEYMART ASSETS, INC.
- -------------------------------------------------------------------------------
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, 1998,
the Fund incurred fees of approximately $7,836,000 for the services of PMFS. As
of June 30, 1998, approximately $1,324,000 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 nonaffiliates.
- ------------------------------------------------------------
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 7,183,885,744 shares of common stock issued
and outstanding at June 30, 1998, PIFM owned Class A shares.
Transactions in shares of common stock for the six months ended June 30, 1998
and year ended December 31, 1997 were as follows:
<TABLE>
<CAPTION>
Six Months
Ended Year ended
June 30, December 31,
Class A 1998 1997
- --------------------------- ---------------- ----------------
<S> <C> <C>
Shares sold................ 15,922,736,750 32,421,538,819
Shares issued in
reinvestment of dividends
and distributions........ 168,644,190 338,151,149
Shares reacquired.......... (15,957,980,531) (33,211,266,138)
---------------- ----------------
Net increase (decrease) in
shares outstanding....... 133,400,409 (451,576,170)
---------------- ----------------
---------------- ----------------
Class Z
- ---------------------------
Shares sold................ 217,625,721 390,607,349
Shares issued in
reinvestment of dividends
and distributions........ 4,281,034 7,956,297
Shares reacquired.......... (192,419,974) (390,423,635)
---------------- ----------------
Net increase in shares
outstanding.............. 29,486,781 8,140,011
---------------- ----------------
---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
10
<PAGE>
<PAGE>
Financial Highlights (Unaudited) PRUDENTIAL MONEYMART ASSETS, INC.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
------------------------------------------------------------------------------------
Six Months
Ended Year Ended December 31,
June 30, ---------------------------------------------------------------------
1998 1997 1996 1995 1994 1993
<CAPTION>
---------- ---------- ---------- ---------- ---------- ----------
<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.................... .025 .050 .048 .054 .037 .027
Dividends and distributions to
shareholders...................... (.025) (.050) (.048) (.054) (.037) (.027)
---------- ---------- ---------- ---------- ---------- ----------
Net asset value, end of period...... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ---------- ----------
---------- ---------- ---------- ---------- ---------- ----------
TOTAL RETURN(a)..................... 2.53% 5.09% 4.97% 5.51% 3.72% 2.70%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)..... $6,997,047 $6,863,647 $7,315,223 $7,221,658 $6,544,880 $7,318,633
Average net assets (000)............ $7,265,954 $7,121,692 $7,326,023 $6,914,520 $7,071,381 $7,742,989
Ratios to average net assets:
Expenses, including distribution
fee........................... .68%(c) .70% .71% .69% .71% .71%
Expenses, excluding distribution
fee........................... .56%(c) .58% .59% .56% .58% .58%
Net investment income............ 5.05%(c) 4.97% 4.83% 5.38% 3.65% 2.63%
<CAPTION>
Class Z
--------------------------------------------
March 1,
Six Months 1996(b)
Ended Year Ended Through
June 30, December 31, December 31,
1998 1997 1996
---------- ------------ ------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period........................... $ 1.000 $ 1.000 $ 1.000
Net investment income and net
realized gains.................... .026 .051 .040
Dividends and distributions to
shareholders...................... (.026) (.051) (.040)
---------- ------------ ------------
Net asset value, end of period...... $ 1.000 $ 1.000 $ 1.000
---------- ------------ ------------
---------- ------------ ------------
TOTAL RETURN(a)..................... 2.59% 5.22% 4.12%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)..... $186,839 $157,352 $149,212
Average net assets (000)............ $175,820 $159,508 $121,135
Ratios to average net assets:
Expenses, including distribution
fee........................... .56%(c) .58% .59%(c)
Expenses, excluding distribution
fee........................... .56%(c) .58% .59%(c)
Net investment income............ 5.18%(c) 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. 11
<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: 1/100th of 1%. For example, one half of one percent 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.
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 Investment Management Services LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
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
PricewaterhouseCoopers 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, 1998 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
U.S. POSTAGE
PAID
Permit 6807
New York, NY
74435H102 MF108E2
Cat#430251F
