<PAGE>
SEMIANNUAL REPORT JUNE 30, 2000
Prudential
MoneyMart Assets, Inc.
Fund Type Money Market
Objective Maximum current income consistent with stability of capital and the
maintenance of liquidity
(GRAPHIC)
This report is not authorized for distribution to
prospective investors unless preceded or accompanied by a
current prospectus.
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.
(LOGO)
<PAGE>
Build on the Rock
Investment Goals and Style
Prudential MoneyMart Assets, Inc. seeks maximum current income consistent with
stability of capital and 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, and major corporations and
commercial banks of the United States and foreign countries. Maturities can
range from one day to 13 months. We purchase only securities rated in one of
the two highest rating 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.
Money Fund Yield Comparison
(GRAPH)
<PAGE>
www.prudential.com (800) 225-1852
Performance at a Glance
Fund Facts As of 6/30/00
7-Day Net Asset Weighted Avg. Net Assets
Current Yld. Value (NAV) Mat. (WAM) (Millions)
Class A 6.03% $1.00 62 Days $6,207
Class Z* 6.16% $1.00 62 Days $ 271
iMoneyNet, Inc.
Money Fund
(General Purpose)
Avg.** 5.86% $1.00 57 Days N/A
Note: Yields will fluctuate from time to time, and past performance is not
indicative of future results. An investment in the Fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. Although the Fund seeks to preserve the value of your investment at
$1.00 per share, it is possible to lose money by investing in the Fund.
* Class Z shares are not subject to distribution and service (12b-1) fees.
** iMoneyNet, Inc. reports a seven-day current yield, NAV, and WAM on Tuesdays.
This is the data of all funds in the iMoneyNet, Inc. (General Purpose) Average
category as of June 27, 2000, the closest date to the end of our reporting
period.
Weighted Average Maturity Compared to the Average Money Fund
(GRAPH)
1
<PAGE>
(LOGO) August 14, 2000
Dear Shareholder,
Prudential's Money Markets Sector team identified and took advantage of good
investment opportunities that emerged as money market yields climbed during our
six-month review period ended June 30, 2000. The team used credit research,
interest-rate analysis, and relative value analysis that enabled Prudential
MoneyMart Assets to provide a competitive yield and a stable $1 net asset
value.
The seven-day current yield for the Fund's Class A shares was 6.03% on June 30,
2000, compared with 5.86% for the average comparable money market fund tracked
by iMoneyNet Data. The following report takes a closer look at developments in
the money markets, and explains how the Fund was positioned accordingly.
Lower risk with high-quality investments
Having a conservative, high-quality investment alternative such as a money
market fund makes good sense for investors who are concerned about volatile
conditions in the financial markets.
Indeed, investors may do well to consider allocating some of their assets to a
money market fund as part of their overall investment strategy. For any of
life's unexpected events, it is reassuring to have quick access to your money
and an investment vehicle that may provide relative safety of principal and
liquidity.
Thank you for your continued confidence in Prudential mutual funds.
Yours sincerely,
John R. Strangfeld, President
Prudential MoneyMart Assets, Inc.
2
<PAGE>
Prudential MoneyMart Assets, Inc.
Semiannual Report June 30, 2000
Investment Adviser's Report
As mentioned in our previous letter, adjustable-rate securities accounted for
40% of the Fund's total investments at the end of 1999. We maintained this
position for much of our six-month review period that began on January 1, 2000.
These securities predominantly carry coupon rates that adjust periodically to
reflect changes in London Interbank Offered Rates (LIBORs), which are widely
used benchmark rates for such transactions. The difference between the coupon
rate and LIBOR is called the "yield spread."
Banks and corporations had issued adjustable-rate securities with unusually
high "yield spreads" to attract investors in 1999. Normally, these securities
would have been issued toward the end of the year, but in 1999, they were
issued long before year-end. This was done because banks and corporations
wanted to avoid any complications that might have occurred if computers
malfunctioned when switching their internal dates from 1999 to 2000.
After the change of year proceeded smoothly, "yield spreads" on adjustable-rate
securities began to decline toward historical norms. This trend enhanced the
Fund's relative performance.
Waiting for money market yields to rise
In early 2000, investor attention turned toward February's Federal Reserve
meeting. The Fed was expected to increase short-term interest rates, which
would drive up borrowing costs for consumers and businesses. Higher interest
rates on mortgages, credit cards, and other loans could curb economic activity
and help prevent rising inflation. In anticipation of this change in monetary
policy, investors began to push yields higher on money market securities.
3
<PAGE>
Our portfolio positioning gave us the flexibility to avoid purchasing
longer-term money market securities and to essentially wait for short-term
rates to rise to levels commensurate with our expectations for tighter monetary
policy. Specifically, the Fund's weighted average maturity (WAM), which began
the quarter significantly longer than that of its competitive average,
gradually shortened. (WAM is a measurement tool that determines a fund's
sensitivity to changes in the level of interest rates. It takes into account
the maturity level of each security held by a fund.) Shortening the WAM enabled
the Fund to have greater flexibility to buy money market securities when
sharply higher yields became available later in the spring of 2000.
Fed's bold inflation-fighting tactics
Money market yields moved higher as the Fed increased short-term interest rates
by a quarter of a percentage point in February and March. They continued to
climb in April and May on expectations that the Fed would tighten monetary
policy again when it met on May 16. Indeed on that date, the central bank
raised short-term rates by half of a percentage point-its largest increase in
more than five years. A statement issued by the Fed after this meeting
indicated that it might continue to hike rates.
In light of the Fed's three rate increases, we had bought one-year securities
in mid-May, which helped the Fund's WAM lengthen until it was once again in
line with its competitive average. It is always difficult to predict when rates
will peak, and in hindsight, we should have concentrated our purchases of
one-year securities in the last week of May and early June because money market
yields seemed to have crested during that time.
In fact, money market yields began to edge lower as June progressed, and data
indicated that the U.S. economy seemed to be losing steam. Because of mounting
evidence pointing to moderating economic growth, few market participants were
surprised when the Fed voted to leave short-term rates unchanged on June 28.
4
<PAGE>
www.prudential.com (800) 225-1852
Looking Ahead
From June 1999 through May 2000, the Fed has raised short-term rates six
times-the first five were quarter-point rate hikes and the sixth was half of a
percentage point. We believe the Fed's unusually large half-point rate hike in
mid-May could be a signal that the central bank has nearly completed its
current round of tightening. The implied yield on federal funds futures has
shown shifting market sentiment on whether the Fed is likely to raise
short-term rates another quarter of a percentage point later this year. We
expect U.S. economic activity to continue to moderate in coming months,
decreasing the amount of additional Fed rate hikes, if any, that might be
necessary. Prudential MoneyMart Assets Fund Management Team
5
<PAGE>
Prudential MoneyMart Assets, Inc.
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
-----------------------------------------------------------------------------------------
Bank Notes 1.5%
Comerica Bank N.A.(b)
46,000 6.66%, 7/6/01 $ 46,002,632
National City Bank of Cleveland
50,000 6.55%, 1/31/01 49,986,073
----------------
95,988,705
-------------------------------------------------------------------------------------
Certificates of Deposit - Domestic 1.0%
Bank of Montreal
63,463 6.58%, 7/17/00 63,463,000
----------------
63,463,000
-------------------------------------------------------------------------------------
Certificates of Deposit - Yankee 13.6%
Bank of Scotland
50,000 7.13%, 6/29/01 49,976,502
BNP Paribus
80,000 6.81%, 10/6/00 80,000,000
Canadian Imperial Bank of Commerce
79,000 6.58%, 7/12/00 79,000,000
150,000 6.75%, 9/19/00 150,000,000
100,000 7.30%, 5/14/01 100,000,000
Credit Suisse First Boston
65,000 6.74%, 9/14/00 65,001,331
Deutsche Bank A.G.
200,000 6.075%, 11/24/00 199,942,756
First Union National Bank
57,000 7.09%, 12/22/00 57,000,000
UBS AG
100,000 7.125%, 7/5/01 99,957,041
----------------
880,877,630
</TABLE>
6 See Notes to Financial Statements
<PAGE>
Prudential MoneyMart Assets, Inc.
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C>
Commercial Paper 52.1%
Alliance & Leicester PLC
6,841 6.14%, 7/10/00 $ 6,830,499
27,000 6.61%, 9/15/00 26,623,230
Aon Corp.
42,984 6.61%, 7/12/00 42,897,184
AT&T Corp.,
54,106 6.59%, 9/5/00 53,452,309
B-One Australia Ltd.
8,000 6.69%, 8/22/00 7,922,693
Banc One Financial Corp.
12,100 6.60%, 7/10/00 12,080,035
9,159 6.065%, 8/3/00 9,108,080
Bank of Scotland Treasury Services
29,000 6.62%, 9/11/00 28,616,040
BankAmerica Corp.
150,000 6.05%, 8/14/00 148,890,833
35,000 6.71%, 9/13/00 34,517,253
Barton Capital Corp.
78,000 6.77%, 7/14/00 77,809,312
33,365 6.60%, 7/20/00 33,248,779
23,000 6.60%, 7/21/00 22,915,667
BASF, AG
65,711 6.60%, 8/17/00 65,144,790
30,000 6.60%, 8/28/00 29,681,000
9,000 6.62%, 9/26/00 8,856,015
Black Forest Funding Corp.
20,000 6.62%, 7/5/00 19,985,289
25,000 6.55%, 7/7/00 24,972,708
Blue Ridge Asset Funding Corp.
30,000 6.57%, 7/12/00 29,939,775
10,000 6.60%, 7/25/00 9,956,000
Bradford & Bingley Building Society
34,000 6.58%, 8/7/00 33,770,066
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Prudential MoneyMart Assets, Inc.
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C>
Brahms Funding Corp.
83,000 6.705%, 7/28/00 $ 82,582,614
British Telecommunications, PLC
91,000 6.67%, 8/16/00 90,224,427
Centric Capital Corp.
16,477 6.65%, 8/30/00 16,294,380
CIT Group Holdings, Inc.
71,000 6.62%, 8/22/00 70,321,082
Citicorp
9,933 6.60%, 8/3/00 9,872,905
70,586 6.60%, 8/10/00 70,068,369
Clipper Receivables Corp.
50,000 6.57%, 7/12/00 49,899,625
15,000 6.57%, 7/17/00 14,956,200
Countrywide Home Loans
15,000 6.76%, 7/14/00 14,963,383
49,000 6.70%, 7/31/00 48,726,417
31,000 6.69%, 8/25/00 30,683,154
Den Norske Bank
45,000 6.63%, 9/5/00 44,453,025
Dexia CLF Finance Co.
48,000 6.58%, 7/20/00 47,833,307
Edison Asset Securitization, LLC
200,000 6.65%, 8/10/00 198,522,222
Enterprise Funding Corp.
39,524 6.65%, 8/25/00 39,122,447
Falcon Asset Securitization Corp.
54,000 6.62%, 8/14/00 53,563,080
Forrestal Funding Master Trust
35,000 6.19%, 7/17/00 34,903,711
25,000 6.56%, 7/21/00 24,908,889
39,000 6.63%, 9/15/00 38,454,130
Fortis Funding, LLC
50,000 6.14%, 7/6/00 49,957,361
13,665 6.57%, 8/9/00 13,567,739
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Prudential MoneyMart Assets, Inc.
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C>
General Electric Capital Corp.
65,000 6.55%, 7/5/00 $ 64,952,694
100,000 6.12%, 8/10/00 99,320,000
166,800 6.75%, 2/27/01 159,262,725
General Motors Acceptance Corp.
176,346 6.57%, 7/6/00 176,185,084
GTE Corp.
40,970 6.60%, 7/20/00 40,827,288
19,000 6.60%, 7/24/00 18,919,883
32,000 6.62%, 7/25/00 31,858,773
30,000 6.60%, 7/26/00 29,862,500
8,410 6.62%, 7/26/00 8,371,337
39,538 6.62%, 7/27/00 39,348,964
16,900 6.62%, 7/28/00 16,816,092
10,700 6.62%, 8/1/00 10,639,004
25,000 6.62%, 8/3/00 24,848,292
25,500 6.68%, 8/7/00 25,324,928
5,444 6.63%, 8/9/00 5,404,899
Hartford Financial Services Group, Inc.
22,000 6.65%, 7/14/00 21,947,170
22,000 6.62%, 7/31/00 21,878,633
Homeside Lending, Inc.
36,000 6.60%, 8/2/00 35,788,800
ING America Insurance Holdings, Inc.
18,000 6.56%, 7/5/00 17,986,880
International Nederlander U.S. Funding Corp.
21,100 6.05%, 8/10/00 20,958,161
Merrill Lynch & Co., Inc.
33,000 6.05%, 8/1/00 32,828,079
National Rural Utilities
15,000 6.12%, 7/17/00 14,959,200
Nationwide Building Society
40,000 6.62%, 9/8/00 39,492,467
14,500 6.67%, 12/14/00 14,054,036
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Prudential MoneyMart Assets, Inc.
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C>
New Center Asset Trust
15,000 6.56%, 7/28/00 $ 14,926,200
PNC Funding Corp.
14,000 6.70%, 8/21/00 13,867,117
Preferred Receivables Funding Corp.
27,000 6.60%, 7/19/00 26,910,900
7,000 6.62%, 8/3/00 6,957,522
Salomon Smith Barney Holdings, Inc.
53,000 6.55%, 7/7/00 52,942,142
55,192 6.62%, 9/11/00 54,461,258
70,000 6.62%, 9/20/00 68,957,350
Santander Finance (Delaware), Inc.
22,590 6.60%, 9/5/00 22,316,661
20,000 6.60%, 9/15/00 19,721,333
Southern Company
14,000 6.60%, 7/10/00 13,976,900
13,603 6.65%, 7/26/00 13,540,181
Swedbank, Inc.
5,490 6.06%, 8/17/00 5,446,565
Sweetwater Capital Corp.
44,000 6.58%, 7/17/00 43,871,324
Tribune Company
67,000 6.57%, 8/1/00 66,620,948
Unifunding, Inc.
8,000 6.60%, 7/24/00 7,966,267
Variable Funding Capital Corp.
200,000 6.65%, 7/28/00 199,002,500
----------------
3,374,417,081
-------------------------------------------------------------------------------------
Loan Participations 0.4%
Alcoa, Inc.
10,000 6.62%, 7/18/00 10,000,000
National Rural Utilities
16,000 6.65%, 8/7/00 16,000,000
----------------
26,000,000
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Prudential MoneyMart Assets, Inc.
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C>
Other Corporate Obligations 28.3%
Abbey National Treasury Services PLC(b)
80,000 6.24813%, 7/24/00 $ 79,997,044
American Express Centurion Bank(b)
62,000 7.01%, 7/10/00 62,000,000
Bank One Corp.(b)
47,000 6.85875%, 8/21/00 47,000,000
Centex Home Mortgage, LLC(b)
24,000 6.79125%, 10/20/00 24,000,000
CIT Group, Inc.(b)
49,000 6.67625%, 7/16/01 48,929,389
Citicorp(b)
10,000 6.68375%, 8/2/00 10,000,000
Comerica Bank N.A.(b)
29,000 6.5725%, 6/7/01 28,991,872
Conseco Finance Vehicle Trust 1999(b)
36,799 6.81125%, 1/5/01 36,798,904
Chrysler N.A. Holding Corp.(b)
27,000 6.53425%, 7/6/00 26,999,519
Diageo Capital, PLC
124,100 6.24%, 12/4/00 124,046,707
Dover Corp.(b)
30,000 6.8475%, 2/28/01 30,000,000
First Chicago Corp.(b)
48,000 6.86875%, 5/21/01 48,010,561
First Union National Bank(b)
57,000 6.2825%, 7/21/00 57,000,000
Ford Motor Credit Co.(b)
120,000 6.72875%, 8/18/00 119,987,249
181,000 6.77%, 10/2/00 180,955,082
Goldman Sachs Group LP(b)
287,000 6.92438%, 7/13/01 287,000,000
J.P. Morgan and Co., Inc.(b)
100,000 6.64%, 3/16/01 100,000,000
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Prudential MoneyMart Assets, Inc.
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C>
Key Bank, N.A.(b)
7,000 6.33125%, 7/17/00 $ 7,000,226
Restructured Asset Security(b)
132,000 6.73625%, 9/6/00 132,000,000
Strategic Money Market Trust(b)
179,000 6.40%, 9/13/00 179,000,000
Short Term Repack Asset Trust 1998-E(b)
25,000 6.74875%, 8/18/00 25,000,000
Travelers Insurance Company(b)
25,000 6.32%, 7/6/00 25,000,000
U.S. Bank, N.A.(b)
54,000 6.58125%, 7/21/00 53,998,547
13,000 6.6975%, 9/20/00 12,999,629
Westpac Banking Corp.(b)
90,000 6.6975%, 10/4/00 89,982,479
----------------
1,836,697,208
-------------------------------------------------------------------------------------
U.S. Agencies 2.3%
Federal Home Loan Banks(b)
150,000 6.189%, 4/19/01 149,941,200
----------------
Total Investments 99.2%
(amortized cost $6,427,384,824) 6,427,384,824
Other assets in excess of liabilities 0.8% 49,998,214
----------------
Net Assets 100% $ 6,477,383,038
----------------
----------------
</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.
12 See Notes to Financial Statements
<PAGE>
Prudential MoneyMart Assets, Inc.
Portfolio of Investments as of June 30, 2000 (Unaudited)
<TABLE>
<S> <C>
The industry classification of portfolio holdings and other assets in excess
of liabilities shown as a percentage of net assets as of June 30, 2000 was as
follows:
Commercial Banks....................................................... 36.1%
Asset Backed Securities................................................ 15.2
Motor Vehicle.......................................................... 7.8
Security Brokers & Dealers............................................. 7.7
Short-Term Business Credit............................................. 7.5
Bank Holding Company................................................... 7.0
Phone Communication.................................................... 5.7
Federal Credit......................................................... 2.3
Beverages.............................................................. 2.0
Mortgage Bankers....................................................... 1.8
Chemical and Allied.................................................... 1.6
Fire Insurance......................................................... 1.5
Newspaper Publishing................................................... 1.0
Accidental & Health Insurance.......................................... 0.7
Construction Machine & Equipment....................................... 0.5
Electric Industry...................................................... 0.4
Life Insurance......................................................... 0.4
-----
99.2
Liabilities in excess of other assets.................................. 0.8
-----
100.0%
-----
-----
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Prudential MoneyMart Assets, Inc.
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
June 30, 2000
<S> <C>
--------------------------------------------------------------------------------------
ASSETS
Investments, at amortized cost which approximates market
value $6,427,384,824
Cash 42,006
Receivable for Fund shares sold 174,150,609
Interest receivable 28,251,316
Deferred expenses and other assets 103,530
--------------
Total assets 6,629,932,286
--------------
LIABILITIES
Payable for Fund shares reacquired 139,834,620
Dividends payable 5,617,623
Accrued expenses 5,151,781
Management fee payable 1,607,736
Distribution fee payable 337,488
--------------
Total liabilities 152,549,248
--------------
NET ASSETS $6,477,383,038
--------------
--------------
Net assets were comprised of:
Common Stock, at par ($.001 par value; 15 billion shares
authorized for issuance) $ 6,477,383
Paid-in capital in excess of par 6,470,905,655
--------------
Net assets, June 30, 2000 $6,477,383,038
--------------
--------------
Class A:
Net asset value, offering price and redemption price per
share ($6,206,752,798 / 6,206,752,798 shares of common
stock issued and outstanding) $1.00
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per
share ($270,630,240 / 270,630,240 shares of common
stock issued and outstanding) $1.00
--------------
--------------
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Prudential MoneyMart Assets, Inc.
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
June 30, 2000
<S> <C>
---------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Interest $ 209,185,343
-------------
Expenses
Management fee 10,170,311
Distribution fee--Class A 4,052,780
Transfer agent's fees and expenses 6,979,000
Reports to shareholders 550,000
Registration 274,000
Custodian's fees and expenses 94,000
Insurance 61,000
Director's fees and expenses 19,000
Audit fees and expenses 18,000
Legal fees and expenses 17,000
Miscellaneous 83,453
-------------
Total expenses 22,318,544
-------------
Net investment income 186,866,799
-------------
NET REALIZED GAIN ON INVESTMENTS
Net realized gain on investment transactions 69
-------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 186,866,868
-------------
-------------
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Prudential MoneyMart Assets, Inc.
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
June 30, 2000 December 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income $ 186,866,799 $ 299,932,281
Net realized gain (loss) on investment
transactions 69 (75,947)
--------------- -----------------
Net increase in net assets resulting
from operations 186,866,868 299,856,334
--------------- -----------------
Dividends and distributions to shareholders
(Note 1)
Class A (179,410,162) (289,099,677)
Class Z (7,456,706) (10,756,657)
--------------- -----------------
(186,866,868) (299,856,334)
--------------- -----------------
Fund share transactions (Note 4)
(at $1.00 per share)
Proceeds from shares sold 19,886,680,442 32,858,644,444
Net asset value of shares issued to
shareholders in reinvestment of
dividends and distributions 172,626,371 284,993,693
Cost of shares reacquired (20,235,038,799) (32,854,846,473)
--------------- -----------------
Net increase (decrease) in net assets
from Fund share transactions (175,731,986) 288,791,664
--------------- -----------------
Total increase (decrease) (175,731,986) 288,791,664
NET ASSETS
Beginning of period 6,653,115,024 6,364,323,360
--------------- -----------------
End of period $ 6,477,383,038 $ 6,653,115,024
--------------- -----------------
--------------- -----------------
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Prudential MoneyMart Assets, Inc.
Notes to Financial Statements (Unaudited)
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.
Repurchase Agreements: 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.
17
<PAGE>
Prudential MoneyMart Assets, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
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'), a wholly owned subsidiary of Prudential. The
Subadvisory Agreement provides that the subadviser will furnish investment
advisory services in connection with the management of the Fund. In connection
therewith, the Subadviser is obligated to keep certain books and records of the
Fund. PIFM continues to have responsibility for all investment advisory services
pursuant to the Management Agreement and supervises the Subadviser's performance
of such services. The Subadviser is reimbursed by PIFM for the reasonable costs
and expenses incurred by the Subadviser in furnishing those services. Effective
January 1, 2000, PIC is paid by PIFM at an annual rate of .250 of 1% of the
Fund's average daily net assets up to $50 million and .135 of 1% of the Fund's
average daily net assets in excess of $50 million. PIFM pays for the services of
PIC, the cost of 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 Investment
Management Services LLC ('PIMS'), which acts as the distributor of the Class A
and Z shares of the Fund. The Fund reimburses the distributors 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 PIMS as distributor of the Class Z
shares of the Fund.
PIFM, PIMS 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, 2000,
the
18
<PAGE>
Prudential MoneyMart Assets, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
Fund incurred fees of approximately $6,694,000 for the services of PMFS. As of
June 30, 2000, approximately $1,128,000 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.
Transactions in shares of common stock (at $1 per share) were as follows:
<TABLE>
<CAPTION>
Six months ended Year ended
June 30, December 31,
2000 1999
---------------- ---------------
<S> <C> <C>
Class A
---------------------------------------------------
Shares sold 19,380,819,784 32,041,675,513
Shares issued in reinvestment of dividends and
distributions 165,587,476 274,562,853
Shares reacquired (19,733,240,119) (32,074,696,386)
---------------- ---------------
Net increase (decrease) in shares outstanding (186,832,859) 241,541,980
---------------- ---------------
---------------- ---------------
<CAPTION>
Class Z
---------------------------------------------------
<S> <C> <C>
Shares sold 505,860,658 816,968,930
Shares issued in reinvestment of dividends and
distributions 7,038,895 10,430,840
Shares reacquired (501,798,680) (780,150,080)
---------------- ---------------
Net increase in shares outstanding 11,100,873 47,249,690
---------------- ---------------
---------------- ---------------
</TABLE>
19
<PAGE>
Prudential MoneyMart Assets, Inc.
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Class A
----------------
Six Months Ended
June 30, 2000
----------------------------------------------------------------------------------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.000
Net investment income and net realized gains .027
Dividends and distributions to shareholders (.027)
----------------
Net asset value, end of period $ 1.000
----------------
----------------
TOTAL RETURN(a) 2.72%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 6,206,753
Average net assets (000) $ 6,520,077
Ratios to average net assets:
Expenses, including distribution fee .66%(b)
Expenses, excluding distribution fee .54%(b)
Net investment income 5.54%(b)
</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) Annualized.
20 See Notes to Financial Statements
<PAGE>
Prudential MoneyMart Assets, Inc.
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------------------------------------------------
Year Ended December 31,
---------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
.046 .050 .050 .048 .054
(.046) (.050) (.050) (.048) (.054)
---------------- ---------------- ---------------- ---------------- ----------------
$ 1.00 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------------- ---------------- ---------------- ---------------- ----------------
4.69% 5.06% 5.09% 4.97% 5.51%
$6,393,586 $6,152,044 $6,863,647 $7,315,223 $7,221,658
$6,292,031 $6,810,377 $7,121,692 $7,326,023 $6,914,520
.68% .69% .70% .71% .69%
.55% .57% .58% .59% .56%
4.60% 4.95% 4.97% 4.83% 5.38%
</TABLE>
See Notes to Financial Statements 21
<PAGE>
Prudential MoneyMart Assets, Inc.
Financial Highlights
<TABLE>
<CAPTION>
Class Z
----------------
Six Months Ended
June 30, 2000
----------------------------------------------------------------------------------------
<S> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 1.000
Net investment income and net realized gains .027
Dividends and distributions to shareholders (.027)
----------------
Net asset value, end of period $ 1.000
----------------
TOTAL RETURN(a) 2.78%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 270,630
Average net assets (000) $ 264,051
Ratios to average net assets:
Expenses, including distribution fee .54%(b)
Expenses, excluding distribution fee .54%(b)
Net investment income 5.66%(b)
</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) Annualized.
(c) Commencement of offering of Class Z shares.
22 See Notes to Financial Statements
<PAGE>
Prudential MoneyMart Assets, Inc.
Financial Highlights Cont'd.
<TABLE>
<CAPTION>
Class Z
------------------------------------------------------------------
Year Ended December 31, September 16, 1996(c)
---------------------------------------- Through
1999 1998 1997 December 31, 1996
------------------------------------------------------------------------
<S> <C> <C> <C>
$ 1.000 $ 1.000 $ 1.000 $ 1.000
.047 .051 .051 .040
(.047) (.051) (.051) (.040)
---------- ---------- ---------- ----------
$ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ----------
4.82% 5.19% 5.22% 4.12%
$259,529 $212,280 $157,352 $ 149,212
$227,112 $194,669 $159,508 $ 121,135
.55% .57% .58% .59%(c)
.55% .57% .58% .59%(c)
4.74% 5.07% 5.10% 4.86%(c)
</TABLE>
See Notes to Financial Statements 23
<PAGE>
Prudential MoneyMart Assets, Inc.
www.prudential.com (800) 225-1852
Prudential Mutual Funds
Prudential offers a broad range of mutual funds designed to meet your
individual needs. For information about these funds, contact your financial
adviser or call us at (800) 225-1852. Read the prospectus carefully before you
invest or send money.
STOCK FUNDS
Large Capitalization Stock Funds
Prudential 20/20 Focus Fund
Prudential Equity Fund, Inc.
Prudential Equity Income Fund
Prudential Stock Index Fund
Prudential Tax-Managed Funds
Prudential Tax-Managed Equity Fund
Strategic Partners Focused Growth Fund
Target Funds
Large Capitalization Growth Fund
Large Capitalization Value Fund
The Prudential Investment Portfolios, Inc.
Prudential Jennison Growth Fund
Small- to Mid-Capitalization Stock Funds
Nicholas-Applegate Fund, Inc.
Nicholas-Applegate Growth Equity Fund
Prudential Small Company Fund, Inc.
Prudential Tax-Managed Small-Cap Fund, Inc.
Prudential U.S. Emerging Growth Fund, Inc.
Target FundsSmall Capitalization Growth Fund
Small Capitalization Value Fund
The Prudential Investment Portfolios, Inc.
Prudential Jennison Equity Opportunity Fund
Sector Stock Funds
Prudential Natural Resources Fund, Inc.
Prudential Real Estate Securities Fund
Prudential Sector Funds, Inc.
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Technology Fund
Prudential Utility Fund
Global/International Stock Funds
Global Utility Fund, Inc.
Prudential Europe Growth Fund, Inc.
Prudential Pacific Growth Fund, Inc.
Prudential World Fund, Inc.
Prudential Global Growth Fund
Prudential International Value Fund
Prudential Jennison International Growth Fund
Target Funds
International Equity Fund
BALANCED/ALLOCATION FUNDS
Prudential Diversified Funds
Conservative Growth Fund
Moderate Growth Fund
High Growth Fund
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund
BOND FUNDS
Taxable Bond Funds
Prudential Government Income Fund, Inc.
Prudential Government Securities Trust
Short-Intermediate Term Series
Prudential High Yield Fund, Inc.
Prudential High Yield Total Return Fund, Inc.
Prudential Short-Term Corporate Bond Fund, Inc.
Income Portfolio
Prudential Total Return Bond Fund, Inc.
Target Funds
Total Return Bond Fund
Tax-Free Bond Funds
Prudential California Municipal Fund
California Series
California Income Series
Prudential Municipal Bond Fund
High Income Series
Insured Series
Prudential Municipal Series Fund
Florida Series
Massachusetts Series
New Jersey Series
New York Series
North Carolina Series
Ohio Series
Pennsylvania Series
Prudential National Municipals Fund, Inc.
Global/International Bond Funds
Prudential Global Total Return Fund, Inc.
Prudential International Bond Fund, Inc.
MONEY MARKET FUNDS
Taxable Money Market Funds
Cash Accumulation Trust
Liquid Assets Fund
National Money Market Fund
Prudential Government Securities Trust
Money Market Series
U.S. Treasury Money Market Series
Prudential Institutional Liquidity Portfolio, Inc.
Institutional Money Market Series
Prudential MoneyMart Assets, Inc.
Prudential Special Money Market Fund, Inc.
Money Market Series
Tax-Free Money Market Funds
Prudential California Municipal Fund
California Money Market Series
Prudential Municipal Series Fund
Connecticut Money Market Series
Massachusetts Money Market Series
New Jersey Money Market Series
New York Money Market Series
Prudential Tax-Free Money Fund, Inc.
Other Money Market Funds
COMMAND Government Fund
COMMAND Money Fund
COMMAND Tax-Free Fund
<PAGE>
Prudential MoneyMart Assets, Inc. www.prudential.com (800) 225-1852
Getting the Most From Your Prudential Mutual Fund
How many times have you read these reports-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.
Collateralized Mortgage Obligations (CMOs): Mortgage-backed bonds that separate
mortgage pools into different maturity classes called tranches. 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 other securities. The rate
of return of these financial instruments 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
member banks.
Federal Funds Rate: The interest rate charged by one bank to another on
overnight loans.
Futures Contract: An agreement to purchase or sell a specific amount of a
commodity or financial instrument at a set price at a specified date in the
future.
Leverage: The use of borrowed assets to enhance return. The expectation is that
the interest rate charged on borrowed funds 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 product) 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 purchase or 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; often used to describe the
difference between "bid" and "asked" prices of a security, or between the
yields of two similar maturity bonds.
Yankee Bond: A bond sold by a foreign company or government on the U.S. market
and denominated in U.S. dollars.
<PAGE>
Prudential MoneyMart Assets, Inc.
Getting the Most from Your Prudential Mutual Fund
When you invest through Prudential Mutual Funds, you receive financial advice
from a Prudential Securities Financial Advisor or Pruco Securities registered
representative. Your advisor or representative can provide you with the
following services:
There's No Reward Without Risk; but Is This Risk Worth It?
Your financial advisor or registered representative can help you match the
reward you seek with the risk you can tolerate. Risk can be difficult to
gauge-sometimes even the simplest investments bear surprising risks. The
educated investor knows that markets seldom move in just one direction. There
are times when a market sector or asset class will lose value or provide little
in the way of total return. Managing your own expectations is easier with help
from someone who understands the markets and who knows you!
Keeping Up With the Joneses
A financial advisor or registered representative can help you wade through the
numerous available mutual funds to find the ones that fit your individual
investment profile and risk tolerance. While the newspapers and popular
magazines are full of advice about investing, they are aimed at generic groups
of people or representative individuals-not at you personally. Your financial
advisor or registered representative will review your investment objectives
with you. This means you can make financial decisions based on the assets and
liabilities in your current portfolio and your risk tolerance-not just based on
the current investment fad.
Buy Low, Sell High
Buying at the top of a market cycle and selling at the bottom are among the
most common investor mistakes. But sometimes it's difficult to hold on to an
investment when it's losing value every month. Your financial advisor or
registered representative can answer questions when you're confused or worried
about your investment, and should remind you that you're investing for the
long haul.
For More Information
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Directors
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
David R. Odenath, Jr.
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
David R. Odenath, Jr., Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
William V. Healey, 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
194 Wood Avenue South
Iselin, NJ 08830
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004
Fund Symbols NASDAQ CUSIP
Class A PBMXX 74435H102
Class Z PMZXX 74435H201
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, 2000, were not audited
and, accordingly, no opinion is expressed on them.
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