<PAGE>
(ICON)
Annual Report
December 31, 1999
Prudential MoneyMart Assets, Inc.
(LOGO)
<PAGE>
A Message from the Fund's President February 3, 2000
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(PHOTO)
Dear Shareholder,
I am pleased to report that Prudential MoneyMart Assets maintained a stable $1
net asset value and provided competitive yields in 1999. On December 31, 1999,
its Class A shares' seven-day current yield was 5.31%, above the 5.15% for the
average money market fund as measured by IBC Financial Data.
Prudential MoneyMart Assets took advantage of good buying opportunities that
emerged as money market yields climbed. This trend toward higher yields
occurred because the Federal Reserve repeatedly hiked its key short-term
interest rate during the year to slow U.S. economic growth. There were also
attractively priced money market securities available as some companies rushed
to complete their year-end borrowing early. This was done to avoid
complications that might occur if computers malfunctioned when changing their
internal dates from 1999 to 2000.
The following report takes a closer look at developments in the money markets
during our fiscal year, and explains how the Fund was positioned accordingly.
One integrated and expanded team
I would like to take this opportunity to also tell you about some changes we've
made to our Fixed Income Group. In 1999, we combined our fixed-income areas
into one integrated group that will manage money for Prudential's investors and
policyholders. This group now manages approximately $127 billion in assets. Our
expanded depth, breadth, and scale also allow us to tap the best talent and
share investment ideas, proprietary research, and analytical tools.
To utilize these resources effectively, we recently organized the group into
teams, each specializing in a different sector of the fixed-income market. The
one team that was already in place is the Money Market Sector team, which has
been headed by Joseph Tully since 1995. This team will continue to be
responsible for the day-to-day management of Prudential MoneyMart Assets.
Thank you for your continued confidence in Prudential mutual funds. I firmly
believe that the group's combined resources and our new team approach will make
us a powerhouse in the world of fixed-income investing across all sectors.
Sincerely,
John R. Strangfeld
President
Prudential MoneyMart Assets, Inc.
<PAGE>
Performance Review
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(PHOTO)
Joseph Tully (Money Market
[Sector] Team Leader)
Investment Goals and Style
Prudential MoneyMart Assets seeks maximum current income consistent with the
stability of capital and the maintenance of liquidity. The Fund is a
diversified portfolio of high-quality, U.S. dollar-denominated money market
securities issued by the U.S. government and its agencies, and major
corporations and commercial banks of the United States and abroad. Maturities
can range from one day to 13 months. We typically purchase only securities
rated in one of the two highest categories by at least two major rating
agencies or, if not rated, deemed to be of equivalent quality by our credit
research staff. There can be no assurance that the Fund will achieve its
investment objective.
Inflation fears fueled rise in money market yields
Participants in the money markets nursed a major concern throughout 1999: a
powerful U.S. economy threatened to overheat and fuel higher inflation.
Mounting inflation is undesirable for nearly everyone, but particularly for
those on fixed incomes whose buying power declines if their incomes are not
adjusted for the rise in prices.
As it turned out, inflation remained relatively tame in 1999, but periodically,
there were valid concerns that price increases would accelerate. The price of
crude oil more than doubled in 1999, albeit from its lowest level in more than
a decade. Moreover, consumers spent so heavily last year that growth in retail
sales in the United States was the strongest it has been in 15 years. (Consumer
spending accounts for two-thirds of the U.S. economy's total output.)
We moved quickly to lock in higher yields
In the first quarter of 1999, the risk of higher inflation led many money
market participants to believe the Federal Reserve would soon increase the
federal funds rate (what banks charge each other for overnight loans) to cool
off the economy. A rate increase can curb economic growth by pushing borrowing
costs higher for consumers and businesses. In anticipation of this change in
monetary policy, investors demanded higher yields on money market securities.
We did not believe a short-term rate hike was imminent, nor did we believe the
Fed would move as aggressively as indicated by the rise in yields. Therefore,
we took advantage of this trend by locking in attractive yields on one-year
securities in the first quarter of 1999.
The Fed tightened monetary policy three times
The U.S. central bank did not act until June 30, 1999, when it increased the
federal funds rate by a quarter of a percentage point to 5.00%. Because we
expected the Fed to continue to tighten monetary policy, we allowed the Fund's
weighted average maturity (WAM) to shorten in July and August 1999 until the
WAM was more in line with that of its competition. (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.)
Having a shorter WAM prior to the next change in monetary policy enabled the
Fund to have ample money to buy higher-yielding securities that became
available after the federal funds rate was raised to 5.25% on
<PAGE>
August 24, 1999. These purchases helped to lengthen the Fund's WAM in
September 1999.
We stuck with this strategy for the third short-term rate hike in the autumn
of 1999. The Fund's WAM shortened in October 1999, and then we extended it by
purchasing one-year securities of banks and corporations after the federal
funds rate was increased to 5.50% on November 16, 1999.
Potential Y2K problems created buying opportunities
Repeated changes in U.S. monetary policy were just one of the concerns that
affected the money markets in the second half of 1999. Corporate treasurers,
among others, wanted to minimize any risk that computers might malfunction at
the end of the year when they tried to switch their internal dates from 1999 to
2000. Accordingly, some banks and corporations rushed to complete their
year-end borrowing early. In the summer of 1999, they began to issue an
unusually large amount of money market securities with interest rates that
adjusted periodically, based on London Interbank Offered Rates (LIBORs).
(LIBORs are widely quoted money market yields.) These securities provided very
attractive yield spreads in order to entice investors.
Performance at a Glance
Fund Facts As of 12/31/99
<TABLE>
<CAPTION>
7-Day Net Asset Weighted Avg. Net Assets
Current Yield* Value (NAV) Maturity (WAM) (Millions)
<S> <C> <C> <C> <C>
Class A 5.37% $1.00 65 Days $6,394
Class Z 5.49% $1.00 65 Days $ 260
IBC Financial Data Money
Fund (General Purpose) Avg.** 5.15% $1.00 53 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 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.
* International Business Communications (IBC) Financial Data reports a
seven-day current yield, NAV, and WAM on Tuesdays. This is the data of all
funds in the IBC Money Fund (General Purpose--Taxable 1st & 2nd Tier) Average
category as of December 28, 1999, the closest date to the end of our reporting
period.
1
<PAGE>
Review Cont'd.
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We took advantage of this buying opportunity, increasing adjustable-rate
securities to 40% of the Fund's total investments as of December 31, 1999--up
from roughly 25% at the beginning of the year.
By autumn, we began to believe that the change of year from 1999 to 2000 might
bring few, if any, difficulties in the financial markets. U.S. corporations and
financial companies had spent heavily to correct any potential computer
problems. More importantly, both the Fed and the U.S. Treasury had taken steps
to ensure that banks, thrifts, and credit unions in the United States would
have access to extra liquidity, if needed, at the end of 1999. Because the
changeover went smoothly, the inexpensively priced adjustable-rate securities
we purchased should help the Fund to be advantageously positioned heading into
2000.
But we missed some attractive bargains
On the other hand, buying adjustable-rate securities in the third quarter of
1999 meant we had less money to invest at the end of the year when money market
yields reached their peak. As a result, the Fund was not able to take full
advantage of the seasonal spike in yields that occurred at the end of 1999.
Looking Ahead
We expect more short-term rate hikes
Continued heavy spending by consumers and a strong domestic labor market have
heightened the risk of rising inflation in the U.S. economy. Therefore, we
expect the Fed to tighten monetary policy on more than one occasion in 2000.
Weighted Average Maturity Compared to the Average Money Fund
(GRAPH)
2
<PAGE>
Portfolio of Investments as
of December 31, 1999 PRUDENTIAL MONEYMART ASSETS, INC.
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<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Bank Notes--9.8%
American Express Centurion Bank(b)
$ 62,000 5.13%, 1/10/00 $ 62,000,000
Comerica Bank N.A.(b)
85,000 6.36125%, 1/13/00 84,975,520
First Union National Bank(b)
86,000 6.44%, 1/10/00 86,000,000
57,000 6.20%, 1/19/00 57,000,000
67,000 5.57%, 1/21/00 67,000,000
First USA Bank
50,000 6.04%, 4/3/00 50,000,000
Key Bank N.A.(b)
7,000 6.24%, 7/17/00 7,002,797
44,000 6.03%, 1/18/00 43,988,283
27,000 6.10%, 3/24/00 26,993,598
South Trust Bank N.A.
34,000 6.03%, 3/6/00 34,000,601
United States Bank N.A.(b)
48,000 6.3725%, 1/19/00 47,984,432
13,000 6.5125%, 1/19/00 12,998,797
75,000 6.41125%, 1/25/00 74,980,313
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654,924,341
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Certificates of Deposit - Domestic--2.4%
Bank One N.A.
100,000 5.47%, 6/2/00 99,987,925
First Tennessee Bank N.A.
59,000 5.85%, 2/29/00 59,000,000
--------------
158,987,925
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Certificates of Deposit - Yankee--10%
Deutsche Bank AG
50,000 5.60%, 6/14/00 49,989,164
200,000 6.075%, 11/24/00 199,871,395
UBS AG
48,000 5.08%, 1/18/00 47,999,354
100,000 5.16%, 2/28/00 99,993,881
$ 47,000 5.29%, 5/18/00 $ 46,989,748
130,000 5.29%, 5/19/00 129,971,437
Westpac Banking Corp.(b)
90,000 6.51375%, 1/4/00 89,948,914
--------------
664,763,893
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Commercial Paper--42.7%
Allianz of America, Inc.
11,000 5.75%, 5/19/00 10,755,785
American General Finance Corp.
15,335 5.93%, 3/10/00 15,160,705
Associates First Capital B.V.
36,000 5.94%, 3/13/00 35,572,320
Banc One Financial Corp.
31,000 5.94%, 3/28/00 30,554,995
76,000 5.95%, 3/28/00 74,907,183
23,000 5.95%, 3/29/00 22,665,478
BankAmerica Corp.
50,000 5.98%, 2/4/00 49,717,611
47,000 5.98%, 2/25/00 46,570,603
Barton Capital Corp.
59,900 6.20%, 1/20/00 59,703,994
94,000 6.05%, 2/25/00 93,131,153
BBL North America Funding Corp.
80,000 5.935%, 3/17/00 78,997,644
Blue Ridge Asset Funding Corp.
45,000 6.75%, 1/20/00 44,839,688
Chase Manhattan Corp.
19,255 4.50%, 1/3/00 19,255,000
55,000 5.76%, 4/28/00 53,961,600
Cregem North America, Inc.
128,000 5.91%, 3/29/00 126,150,826
48,000 5.745%, 4/27/00 47,103,780
CXC, Inc.
110,000 6.98%, 1/13/00 109,744,067
Daimler Chrysler North America(b)
75,000 5.94%, 3/31/00 73,886,250
27,000 6.35675%, 1/6/00 26,982,018
</TABLE>
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See Notes to Financial Statements. 3
<PAGE>
Portfolio of Investments as
of December 31, 1999 PRUDENTIAL MONEYMART ASSETS, INC.
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<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
------------------------------------------------------------
Commercial Paper (cont'd.)
Diageo Capital PLC
$ 124,100 6.24%, 6/4/00 $ 123,984,531
Eaton Corp.
8,000 7.00%, 1/21/00 7,968,889
Finova Capital Corp.
35,000 6.25%, 3/10/00 34,580,729
Forrestal Funding Master Trust
1999-A
22,242 6.07%, 2/8/00 22,099,491
21,000 6.09%, 2/11/00 20,854,348
7,000 6.05%, 3/7/00 6,922,358
Fortis Funding LLC
34,000 5.91%, 3/31/00 33,497,650
FPL Group Capital, Inc.
488 5.40%, 1/13/00 487,122
GE Capital International Funding
60,000 5.28%, 2/14/00 59,612,800
50,000 5.31%, 2/14/00 49,675,500
General Electric Capital Corp.(b)
70,000 5.41%, 2/14/00 69,537,144
59,000 6.01%, 2/14/00 59,000,000
64,000 5.78%, 2/18/00 63,506,773
4,000 5.75%, 4/20/00 3,929,722
General Electric Capital Services,
Inc.
23,000 5.76%, 3/10/00 22,746,080
General Motors Acceptance Corp.
168,000 5.77%, 3/3/00 166,330,547
Internationale Nederlanden US
Funding Corp.
82,000 5.91%, 3/28/00 80,828,835
30,000 5.91%, 3/30/00 29,561,675
Market Street Funding Corp.
23,000 7.00%, 1/14/00 22,941,861
MCI Worldcom, Inc.
60,000 7.10%, 1/31/00 59,645,000
Merrill Lynch & Co., Inc.
134,000 5.80%, 1/20/00 133,589,811
Morgan Stanley Dean Witter & Co.
$ 38,000 5.13%, 1/3/00 $ 38,000,000
50,000 5.43%, 2/4/00 49,743,583
229,000 5.75%, 5/15/00 224,062,188
Nationwide Building Society
29,000 5.94%, 3/7/00 28,684,190
PNC Funding Corp.
18,000 6.20%, 1/31/00 17,907,000
62,000 5.95%, 3/13/00 61,262,200
Salomon Smith Barney Holdings,
Inc.
50,000 5.73%, 2/10/00 49,681,667
33,000 5.79%, 3/10/00 32,633,783
Santander Finance, Inc.
54,000 5.90%, 2/1/00 53,725,650
55,100 5.98%, 2/4/00 54,788,807
Swedbank, Inc.
21,154 5.93%, 3/31/00 20,840,392
67,000 5.94%, 3/31/00 66,005,050
Wachovia Corp.
50,000 5.85%, 4/3/00 49,244,375
--------------
2,837,540,451
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Time Deposit - Eurodollar--1.0%
Bank of Montreal
64,327 5.00%, 1/3/00 64,327,000
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Other Corporate Obligations--29%
Abbey National Treasury Services
PLC(b)
80,000 6.1525%, 1/24/00 79,973,649
50,000 5.29%, 5/22/00 49,988,779
Associates Corp. of North
America(b)
200,000 6.41025%, 1/31/00 199,931,148
Bank One Corp.
47,000 6.15375%, 2/22/00 47,000,000
Centex Home Mortgage LLC(b)
24,000 6.60125%, 1/20/00 24,000,000
</TABLE>
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See Notes to Financial Statements. 4
<PAGE>
Portfolio of Investments as
of December 31, 1999 PRUDENTIAL MONEYMART ASSETS, INC.
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
------------------------------------------------------------
Other Corporate Obligations (cont'd.)
Citicorp
$ 10,000 6.5125%, 1/3/00 $ 10,000,000
Conseco Finance Vehicle Trust
1999(b)
45,000 6.62125%, 1/18/00 45,000,000
Corporate Asset Funding Co.,
Inc.(b)
129,000 6.57125%, 1/20/00 128,994,423
Ford Motor Credit Co.(b)
120,000 6.0375%, 2/18/00 119,938,903
181,000 6.17375%, 3/30/00 180,867,175
Goldman Sachs Group, LP(b)
370,700 5.72625%, 1/18/00 370,700,000
Restructured Asset Security(b)
132,000 6.55875%, 1/6/00 132,000,000
117,000 6.56875%, 1/10/00 117,000,000
Security Life of Denver Corp.(b)
14,000 6.24625%, 1/12/00 14,000,000
Strategic Money Market Trust(b)
179,000 6.2975%, 1/13/00 179,000,000
25,000 6.56125%, 1/18/00 25,000,000
69,000 6.18125%, 3/15/00 69,000,000
Travelers Insurance Co.(b)
25,000 6.16%, 1/5/00 25,000,000
Variable Funding Capital Corp.(b)
115,000 6.58125%, 1/24/00 115,000,000
--------------
1,932,394,077
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U.S. Agencies - Non-discount--3.0%
Federal Home Loan Bank
44,000 4.90%, 2/11/00 43,995,235
56,000 4.95%, 2/17/00 55,996,142
75,000 5.035%, 2/25/00 74,991,184
Federal National Mortgage
Association
$ 25,000 4.99%, 2/22/00 $ 24,999,466
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199,982,027
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Total Investments--97.9%
(amortized cost $6,512,919,714) 6,512,919,714
Other assets in excess of
liabilities--2.1% 140,195,310
--------------
Net Assets--100% $6,653,115,024
--------------
--------------
</TABLE>
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(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 December 31, 1999 was as
follows:
<TABLE>
<S> <C>
Commercial Banks..................................... 44.4%
Security Brokers & Dealers........................... 10.1
Asset Backed Securities.............................. 8.9
Bank Holding Company................................. 8.7
Motor Vehicle........................................ 8.5
Short-Term Business Credit........................... 5.4
Federal Credit....................................... 3.7
Personal Credit Institutions......................... 3.5
U.S. Treasury........................................ 3.0
Phone Communication.................................. .9
Life Insurance....................................... .7
Electric Industry.................................... .1
-----
97.9
Other assets in excess of liabilities................ 2.1
-----
100.0%
-----
-----
</TABLE>
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See Notes to Financial Statements. 5
<PAGE>
Statement of Assets and Liabilities PRUDENTIAL MONEYMART ASSETS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Assets December 31, 1999
-----------------
<S> <C>
Investments, at amortized cost which approximates market value.......................................... $ 6,512,919,714
Cash.................................................................................................... 920,722
Receivable for Fund shares sold......................................................................... 202,138,291
Interest receivable..................................................................................... 47,146,679
Deferred expenses and other assets...................................................................... 165,008
-----------------
Total assets......................................................................................... 6,763,290,414
-----------------
Liabilities
Payable for Fund shares reacquired...................................................................... 101,661,450
Accrued expenses........................................................................................ 5,201,657
Management fee payable.................................................................................. 1,655,765
Dividends payable....................................................................................... 1,315,531
Distribution fee payable................................................................................ 340,987
-----------------
Total liabilities.................................................................................... 110,175,390
-----------------
Net Assets.............................................................................................. $ 6,653,115,024
-----------------
-----------------
Net assets were comprised of:
Common Stock, at par ($.001 par value; 15 billion shares authorized for issuance).................... $ 6,653,115
Paid-in capital in excess of par..................................................................... 6,646,461,909
-----------------
Net assets, December 31, 1999........................................................................... $ 6,653,115,024
-----------------
-----------------
Class A:
Net asset value, offering price and redemption price per share
($6,393,585,657 / 6,393,585,657 shares of common stock issued and outstanding).................... $1.00
-----------------
-----------------
Class Z:
Net asset value, offering price and redemption price per share
($259,529,367 / 259,529,367 shares of common stock issued and outstanding)........................ $1.00
-----------------
-----------------
</TABLE>
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See Notes to Financial Statements. 6
<PAGE>
PRUDENTIAL MONEYMART ASSETS, INC.
Statement of Operations
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- ------------------------------------------------------------
<TABLE>
<CAPTION>
Year Ended
Net Investment Income December 31, 1999
<S> <C>
Income
Interest.............................. $ 343,743,514
-----------------
Expenses
Management fee........................ 19,657,429
Distribution fee--Class A............. 7,865,039
Transfer agent's fees and expenses.... 13,852,000
Reports to shareholders............... 1,500,000
Registration.......................... 455,000
Custodian's fees and expenses......... 200,000
Insurance............................. 105,000
Director's fees and expenses.......... 39,000
Audit fees and expenses............... 35,000
Legal fees and expenses............... 30,000
Miscellaneous......................... 72,765
-----------------
Total expenses..................... 43,811,233
-----------------
Net investment income.................... 299,932,281
-----------------
Net Realized Loss on Investments
Net realized loss on investment
transactions.......................... (75,947)
-----------------
Net Increase in Net Assets
Resulting from Operations................ $ 299,856,334
-----------------
-----------------
</TABLE>
PRUDENTIAL MONEYMART ASSETS, INC.
Statement of Changes in Net Assets
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Increase (Decrease) Year Ended December 31,
in Net Assets 1999 1998
<S> <C> <C>
Operations
Net investment income... $ 299,932,281 $ 346,805,006
Net realized gain (loss)
on investment
transactions......... (75,947) 24,512
---------------- ----------------
Net increase in net
assets resulting from
operations........... 299,856,334 346,829,518
---------------- ----------------
Dividends and distributions
to shareholders (Note 1)
Class A.............. (289,099,677) (336,977,571)
Class Z.............. (10,756,657) (9,851,947)
---------------- ----------------
(299,856,334) (346,829,518)
---------------- ----------------
Fund share transactions
(Note 4)
(At $1.00 per share)
Proceeds from shares
sold................. 32,858,644,444 30,787,213,555
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends and
distributions........ 284,993,693 329,144,169
Cost of shares
reacquired........... (32,854,846,473) (31,773,032,919)
---------------- ----------------
Net increase (decrease)
in net assets from
Fund share
transactions......... 288,791,664 (656,675,195)
---------------- ----------------
Total increase
(decrease).............. 288,791,664 (656,675,195)
Net Assets
Beginning of year.......... 6,364,323,360 7,020,998,555
---------------- ----------------
End of year................ $ 6,653,115,024 $ 6,364,323,360
---------------- ----------------
---------------- ----------------
</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.
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.
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 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.
- --------------------------------------------------------------------------------
8
<PAGE>
Notes to Financial Statements 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 year ended December 31, 1999,
the Fund incurred fees of approximately $13,153,000 for the services of PMFS. As
of December 31, 1999, approximately $1,083,000 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 6,653,115,024 shares of common stock issued
and outstanding at December 31, 1999, PIFM owned 262 shares and 186 shares of
Class A and Z, respectively.
Transactions in shares of common stock (at $1 net asset value per share) were as
follows:
<TABLE>
<CAPTION>
Year ended Year ended
December 31, December 31,
1999 1998
---------------- ----------------
<S> <C> <C>
Class A
- ---------------------------
Shares sold................ 32,041,675,513 30,236,936,348
Shares issued in
reinvestment of dividends
and distributions........ 274,562,853 319,520,177
Shares reacquired.......... (32,074,696,386) (31,268,059,561)
---------------- ----------------
Net increase (decrease) in
shares outstanding....... 241,541,980 (711,603,036)
---------------- ----------------
---------------- ----------------
<CAPTION>
Class Z
- ---------------------------
<S> <C> <C>
Shares sold................ 816,968,930 550,277,207
Shares issued in
reinvestment of dividends
and distributions........ 10,430,840 9,623,992
Shares reacquired.......... (780,150,080) (504,973,358)
---------------- ----------------
Net increase (decrease) in
shares outstanding....... 47,249,690 54,927,841
---------------- ----------------
---------------- ----------------
</TABLE>
- --------------------------------------------------------------------------------
9
<PAGE>
Financial Highlights PRUDENTIAL MONEYMART ASSETS, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A Class Z
---------------------------------------------------------------------- ---------------------
Year Ended
Year Ended December 31, December 31,
---------------------------------------------------------------------- ---------------------
1999 1998 1997 1996 1995 1999 1998
---------- ---------- ---------- ---------- ---------- -------- --------
<S> <C> <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 $ 1.000
Net investment income and net
realized gains............... .046 .050 .050 .048 .054 .047 .051
Dividends and distributions to
shareholders................. (.046) (.050) (.050) (.048) (.054) (.047) (.051)
---------- ---------- ---------- ---------- ---------- -------- --------
Net asset value, end of
period...................... $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
---------- ---------- ---------- ---------- ---------- -------- --------
---------- ---------- ---------- ---------- ---------- -------- --------
TOTAL RETURN(a)................ 4.69% 5.06% 5.09% 4.97% 5.51% 4.82% 5.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)....................... $6,393,586 $6,152,044 $6,863,647 $7,315,223 $7,221,658 $259,529 $212,280
Average net assets (000)....... $6,292,031 $6,810,377 $7,121,692 $7,326,023 $6,914,520 $227,112 $194,669
Ratios to average net assets:
Expenses, including
distribution fee......... .68% .69% .70% .71% .69% .55% .57%
Expenses, excluding
distribution fee......... .55% .57% .58% .59% .56% .55% .57%
Net investment income....... 4.60% 4.95% 4.97% 4.83% 5.38% 4.74% 5.07%
<CAPTION>
March 1,
1996(b)
Through
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, 1999, the results of its operations for the year
then ended, the changes in its net assets for each of the two years in the
period then ended and the financial highlights for each of the three years in
the period then ended, in conformity with accounting principles generally
accepted in the United States. 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 audits. We conducted our
audits of these financial statements in accordance with auditing standards
generally accepted in the United States 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 audits, which included confirmation of securities at December
31, 1999 by correspondence with the custodian, provide a reasonable basis for
the opinion expressed above. The accompanying financial highlights for each of
the two years in the period ended December 31, 1996 were audited by other
independent accountants whose report dated February 6, 1997 was unqualified.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
February 14, 2000
- --------------------------------------------------------------------------------
11
<PAGE
The Prudential Mutual Fund Family
- -------------------------------------------------------------------------------
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
Prudential Emerging Growth Fund, Inc.
Prudential Equity Fund, Inc.
Prudential Equity Income Fund
Prudential Index Series Fund
Prudential Small-Cap Index Fund
Prudential Stock Index Fund
The Prudential Investment Portfolios, Inc.
Prudential Jennison Growth Fund
Prudential Jennison Growth & Income Fund
Prudential Mid-Cap Value Fund
Prudential Real Estate Securities Fund
Prudential Sector Funds, Inc.
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Technology Fund
Prudential Utility Fund
Prudential Small-Cap Quantum Fund, Inc.
Prudential Small Company Value Fund, Inc.
Prudential Tax-Managed Funds
Prudential Tax-Managed Equity Fund
Prudential 20/20 Focus Fund
Nicholas-Applegate Fund, Inc.
Nicholas-Applegate Growth Equity Fund
Target Funds
Large Capitalization Growth Fund
Large Capitalization Value Fund
Small Capitalization Growth Fund
Small Capitalization Value Fund
Asset Allocation/Balanced Funds
Prudential Balanced Fund
Prudential Diversified Funds
Conservative Growth Fund
Moderate Growth Fund
High Growth Fund
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund
GLOBAL FUNDS
Global Stock Funds
Prudential Developing Markets Fund
Prudential Developing Markets Equity Fund
Prudential Latin America Equity Fund
Prudential Europe Growth Fund, Inc.
Prudential Global Genesis Fund, Inc.
Prudential Index Series Fund
Prudential Europe Index Fund
Prudential Pacific Index Fund
Prudential Natural Resources Fund, Inc.
Prudential Pacific Growth Fund, Inc.
Prudential World Fund, Inc.
Prudential Global Growth Fund
Prudential International Value Fund
Prudential Jennison International Growth Fund
Global Utility Fund, Inc.
Target Funds
International Equity Fund
Global Bond Funds
Prudential Global Total Return Fund, Inc.
Prudential International Bond Fund, Inc.
BOND FUNDS
Taxable Bond Funds
Prudential Diversified Bond Fund, Inc.
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 Index Series Fund
Prudential Bond Market Index Fund
Prudential Structured Maturity Fund, Inc.
Income Portfolio
Target Funds
Total Return Bond Fund
Tax-Exempt 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.
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 Special Money Market Fund, Inc.
Money Market Series
Prudential MoneyMart Assets, Inc.
Tax-Free Money Market Funds
Prudential Tax-Free Money Fund, Inc.
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
COMMAND FUNDS
Command Money Fund
Command Government Fund
Command Tax-Free Fund
Institutional Money Market Funds
Prudential Institutional Liquidity Portfolio, Inc.
Institutional Money Market Series
<PAGE>
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
visit our website at www.prudential.com
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
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
Stephen M. Ungerman, Assistant Treasurer
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
Fund Symbols CUSIP
Class A 74435H102
Class Z 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.
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by a current prospectus.
MF108E
(LOGO)
Printed on Recycled Paper
