-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, JFT73HbppUMRnwjRiTpyjCnqcpl8R1v2DfHQc9AZ2s5dPUcc90k4dVliH/CmwgtB Yk+f+XozEWTB1zhIYNJs2A== 0000898733-01-000079.txt : 20010228 0000898733-01-000079.hdr.sgml : 20010228 ACCESSION NUMBER: 0000898733-01-000079 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20001231 FILED AS OF DATE: 20010226 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRUDENTIAL MONEYMART ASSETS INC CENTRAL INDEX KEY: 0000067590 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 132845392 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: SEC FILE NUMBER: 811-02619 FILM NUMBER: 1553775 BUSINESS ADDRESS: STREET 1: 199 WATER ST CITY: NEW YORK STATE: NY ZIP: 10292 BUSINESS PHONE: 2122141250 MAIL ADDRESS: STREET 1: ONE SEAPORT PLZ STREET 2: ONE SEAPORT PLZ CITY: NEW YORK STATE: NY ZIP: 10292 FORMER COMPANY: FORMER CONFORMED NAME: PRUDENTIAL BACHE MONEYMART ASSETS INC DATE OF NAME CHANGE: 19920603 FORMER COMPANY: FORMER CONFORMED NAME: MONEYMART ASSETS INC DATE OF NAME CHANGE: 19850909 FORMER COMPANY: FORMER CONFORMED NAME: MONEY MARKET FUND INC DATE OF NAME CHANGE: 19760614 N-30D 1 0001.txt PRUDENTIAL MONEYMART ASSETS, INC. ANNUAL REPORT DECEMBER 31, 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) 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 the adviser's credit research staff. There can be no assurance that the Fund will achieve its investment objective. Money Fund Yield Comparison (GRAPH) www.prudential.com (800) 225-1852 Performance at a Glance Fund Facts As of 12/31/00 7-Day Net Asset Weighted Avg. Net Assets Current Yld. Value (NAV) Mat. (WAM) (Millions) Class A 6.03% $1.00 48 Days $6,529 Class Z* 6.15% $1.00 48 Days $ 253 iMoneyNet, Inc. Money Fund (General Purpose) Avg.** 5.89% $1.00 55 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. Money Fund (General Purpose) Average category as of December 26, 2000, the closest date to the end of our reporting period. Weighted Average Maturity Compared to the Average Money Fund (GRAPH) 1 (LOGO) February 9, 2001 DEAR SHAREHOLDER, Prudential MoneyMart Assets provided higher-than-average yields throughout 2000. At the end of the year, the seven- day current yield for MoneyMart Assets' Class A shares was 6.03% versus 5.89% for the average comparable money fund tracked by iMoneyNet, Inc. Money market yields climbed sharply as the Federal Reserve (the Fed) repeatedly tightened monetary policy in the first half of the year to keep the U.S. economy from overheating and igniting higher inflation. Later in the year, money market yields declined as a dramatic slowdown in economic growth led investors to believe that the Fed would ease monetary policy. Under these market conditions, skillful interest-rate analysis by Prudential's Money Markets Sector team played a crucial role in the successful management of the MoneyMart Assets portfolio. We discuss developments in the money markets and explain MoneyMart Assets' investments on the following pages. As always, we appreciate your continued confidence in Prudential mutual funds, and look forward to serving your future needs. Sincerely, David R. Odenath, Jr., President Prudential MoneyMart Assets, Inc. 2 Prudential MoneyMart Assets, Inc. Annual Report December 31, 2000 INVESTMENT ADVISER'S REPORT The year that began January 1, 2000 proved to be a favorable period for investors in money market funds. Yields on money market securities climbed to very attractive levels as the Fed increased short-term interest rates three times to rein in the powerful U.S. economic expansion and head off mounting inflationary pressures. MoneyMart Assets benefited by taking advantage of good investment opportunities created by this trend toward higher yields. The Fed raised the federal funds rate (the rate U.S. banks charge each other for overnight loans) on February 2, March 21, and May 16, 2000 by a total of one percentage point to 6.50%. The central bank also hiked the discount rate that member banks pay to borrow from the Federal Reserve System by the same amount, which lifted that rate to 6.00%. Increasing short-term rates also encourages higher borrowing costs for businesses and consumers, which in turn can slow economic growth. PATIENCE WAS A VIRTUE Our portfolio positioning gave us the flexibility to avoid buying longer-term money market securities early in the year and to wait for short-term rates to rise to levels commensurate with our expectations for tighter monetary policy. This level was reached when the Fed hiked rates in mid-May. By this time, money market yields had also risen sharply, and we bought one-year corporate securities. These purchases helped to lengthen MoneyMart Assets' weighted average maturity (WAM) until it was more in line with that of the iMoneyNet, Inc. Money Fund (General Purpose) Average. (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 of each security held by a fund.) Lengthening the WAM enabled us to lock in attractive yields. In retrospect, by early June, term money market yields on these securities had already reached their peak for the year. 3 Prudential MoneyMart Assets, Inc. Annual Report December 31, 2000 In fact, investors began to drive money market yields lower (and prices higher) in late spring on the likelihood that the Fed no longer needed to tighten monetary policy. Reports indicated that the cumulative effect of repeated rate hikes was already beginning to curb economic growth. INVESTING BEFORE YIELDS DECLINED SHARPLY We also came to the conclusion that the central bank had finished raising rates for this business cycle. Therefore we positioned MoneyMart Assets' WAM significantly longer than that of its competitive average for much of the remainder of the year. We did this by purchasing longer-term money market securities during the summer and early autumn of 2000. Our decision to lock in yields during the summer and early fall worked well because money market yields slid sharply at the end of the year amid speculation that the Fed would now actually cut short-term rates to stimulate the sagging economy. Not only were the Fed's previous interest-rate hikes starting to bite, but higher energy prices and weakness in the stock market were also threatening the livelihood of the consumer-driven economy. 4 www.prudential.com (800) 225-1852 LOOKING AHEAD In January 2001, the Fed engineered two half-percentage- point reductions in the federal funds rate in rapid succession that lowered it to 5.50% from 6.50%. The central bank also cut the discount rate to 5.00% from 6.00%. The Fed eased monetary policy in an effort to revitalize the economy. But because the economy continues to "flirt" with recession and inflation remains under control, the Fed is widely expected to continue easing monetary policy aggressively. In anticipation of future rate cuts, money market yields have continued to decline, with longer-term money market yields now lower than shorter-term money market yields. This development is known as an inverted money market yield curve. Accordingly, we remain reluctant to extend MoneyMart Assets' WAM in an aggressive fashion with the money market yield curve inverted so dramatically. Furthermore, the deceleration in economic growth has, on average, had a negative impact on corporate credit quality. In such an environment, we will be more deliberative than usual in our investment selections. Prudential MoneyMart Assets Management Team 5 Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000
Principal Amount (000) Description Value (Note 1) - ---------------------------------------------------------------------------------------- Bank Notes 2.4% Bank America N.A. $ 37,000 6.82%, 2/5/01 $ 37,000,000 Comerica Bank N.A.(b) 29,000 6.719%, 1/8/01 28,996,258 46,000 6.776%, 1/8/01 46,001,323 National City Bank of Cleveland 50,000 6.55%, 1/31/01 49,998,048 ---------------- 161,995,629 - ------------------------------------------------------------------------------------- Certificates of Deposit - Domestic 3.1% First Tennessee Bank N.A. 14,000 6.54%, 2/28/01 13,999,815 South Trust Bank N.A. 65,000 6.70%, 3/5/01 64,999,725 34,000 6.69%, 3/15/01 34,000,839 95,000 6.62%, 5/29/01 95,043,161 ---------------- 208,043,540 - ------------------------------------------------------------------------------------- Certificates of Deposit - Eurodollar 7.1% Banca Commerciale Italiana S.p.A. 4,000 6.69%, 2/28/01 4,000,063 Barclays Bank PLC 115,000 6.85%, 2/5/01 115,003,240 Bayerische Landesbank Girozentrale - London 7,000 6.74%, 2/16/01 6,999,892 Citibank, N.A. 40,000 6.895%, 1/22/01 40,001,282 Commerzbank AG 180,000 6.50%, 5/8/01 180,000,000 100,000 6.53%, 6/4/01 100,019,744 Norddeutsche Landesbank Girozentrale 31,000 6.67%, 1/25/01 30,999,624 Svenska Handelsbank AB. 7,000 6.76%, 2/20/01 7,000,094 ---------------- 484,023,939
6 See Notes to Financial Statements Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000
Principal Amount (000) Description Value (Note 1) - ---------------------------------------------------------------------------------------- Certificates of Deposit - Yankee 7.4% Bank of Scotland $ 50,000 7.13%, 6/29/01 $ 49,988,413 Bayerische Hypo-und Vereinsbank 22,000 6.72%, 2/14/01 21,999,154 Canadian Imperial Bank of Commerce 100,000 7.30%, 5/14/01 100,000,000 Dexia Bank 74,000 6.67%, 1/19/01 74,000,364 National Bank of Canada 75,000 6.57%, 3/5/01 75,000,000 Svenska Handelsbank AB. 50,000 6.825%, 1/31/01 50,000,097 32,288 6.835%, 1/31/01 32,288,323 UBS AG 100,000 7.125%, 7/5/01 99,978,462 ---------------- 503,254,813 - ------------------------------------------------------------------------------------- Commercial Paper 57.5% Abbey National N.A. Corp. 25,000 6.53%, 1/30/01 24,868,493 Alliance & Leicester PLC 45,000 6.34%, 3/22/01 44,366,000 Allianz of America, Inc. 20,000 6.55%, 1/26/01 19,909,028 American General Finance Corp. 70,000 6.53%, 1/19/01 69,771,450 Associates Corp. of North America 86,000 6.53%, 2/7/01 85,422,820 10,000 6.52%, 3/2/01 9,891,333 Associates First Capital B.V. 50,000 6.54%, 2/14/01 49,600,333
See Notes to Financial Statements 7 Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000
Principal Amount (000) Description Value (Note 1) - ---------------------------------------------------------------------------------------- B-One Australia Ltd. $ 16,000 6.54%, 2/2/01 $ 15,906,987 Banc One Financial Corp. 46,000 6.56%, 1/26/01 45,790,444 49,000 6.67%, 2/9/01 48,653,897 Bank of Scotland Treasury Services 29,000 6.55%, 1/17/01 28,915,578 47,000 6.53%, 1/30/01 46,752,767 BankAmerica Corp. 203,000 6.673%, 2/23/01 201,063,380 Banque Et Caisse D'Epargne de L'eta 5,000 6.53%, 2/6/01 4,967,350 Barton Capital Corp. 62,235 6.62%, 1/11/01 62,120,557 10,970 6.62%, 1/12/01 10,947,810 BASF, AG 22,000 6.53%, 1/26/01 21,900,236 52,000 6.46%, 3/15/01 51,318,829 Baus Funding LLC 42,765 6.48%, 2/20/01 42,380,115 BCI Funding Corp. 1,000 6.55%, 1/16/01 997,271 10,553 6.675%, 1/16/01 10,524,199 37,000 6.31%, 4/12/01 36,344,987 BHF Finance, Inc. 6,000 6.48%, 2/27/01 5,938,440 BBL North America Funding Corp. 13,000 6.63%, 1/17/01 12,961,693 30,000 6.54%, 1/26/01 29,863,750 21,000 6.59%, 1/30/01 20,888,519 Black Forest Funding Corp. 8,000 6.75%, 1/16/01 7,977,500 Blue Ridge Asset Funding Corp. 60,000 6.72%, 1/11/01 59,888,000 62,000 6.72%, 1/12/01 61,872,693
8 See Notes to Financial Statements Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000
Principal Amount (000) Description Value (Note 1) - ---------------------------------------------------------------------------------------- Brahms Funding Corp. $ 33,000 6.64%, 1/19/01 $ 32,890,440 86,000 6.62%, 1/22/01 85,667,897 Clipper Receivables Corp. 14,803 6.62%, 1/26/01 14,734,947 CXC, Inc. 39,240 6.50%, 2/13/01 38,935,345 Daimler Chrysler North America 59,000 6.54%, 1/22/01 58,774,915 10,000 6.54%, 1/23/01 9,960,033 70,000 6.50%, 2/20/01 69,368,056 153,000 6.52%, 3/23/01 150,755,490 Den Danske Corp. 10,000 6.54%, 1/31/01 9,945,500 Den Norske Bank 42,000 6.51%, 2/12/01 41,681,010 9,000 6.53%, 2/20/01 8,918,375 16,000 6.49%, 3/12/01 15,798,089 Dexia CLF Finance Co. 10,000 6.54%, 2/6/01 9,934,600 61,000 6.52%, 2/22/01 60,425,516 Dover Corp.(b) 30,000 6.769%, 2/28/01 30,000,000 Eaton Corp. 10,000 6.80%, 1/12/01 9,979,222 Edison Asset Securitization, LLC 86,000 6.58%, 2/2/01 85,496,996 Forrestal Funding Master Trust 13,415 6.69%, 1/18/01 13,373,443 40,838 6.55%, 1/23/01 40,674,535 12,000 6.54%, 1/31/01 11,934,600 300 6.60%, 1/31/01 298,350 20,408 6.50%, 3/23/01 20,109,533 GE Capital International Funding 13,000 6.55%, 1/19/01 12,957,425
See Notes to Financial Statements 9 Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000
Principal Amount (000) Description Value (Note 1) - ---------------------------------------------------------------------------------------- General Electric Capital Corp. $ 10,000 6.58%, 2/13/01 $ 9,921,406 166,800 6.75%, 2/27/01 165,017,325 General Electric Capital Services, Inc. 58,000 6.50%, 2/15/01 57,528,750 General Motors Acceptance Corp. 201,000 6.53%, 1/24/01 200,161,439 150,000 6.59%, 2/13/01 148,819,292 Halliburton Co. 2,590 6.50%, 2/28/01 2,562,877 Homeside Lending, Inc. 16,000 6.55%, 2/26/01 15,836,978 19,000 6.55%, 2/28/01 18,799,497 ING America Insurance Holdings, Inc. 21,000 6.55%, 1/24/01 20,912,121 5,000 6.545%, 1/26/01 4,977,274 25,000 6.52%, 2/8/01 24,827,944 5,620 6.51%, 2/21/01 5,568,170 Intrepid Funding Master Trust 4,526 6.51%, 2/16/01 4,488,351 Lone Star Funding LLC 79,000 6.57%, 1/26/01 78,639,563 41,000 6.55%, 2/13/01 40,679,232 Market Street Funding Corp. 51,000 6.66%, 1/12/01 50,896,215 Merrill Lynch & Co., Inc. 108,000 6.55%, 1/19/01 107,646,300 NATC California LLC 15,000 6.55%, 1/25/01 14,934,500 Nationwide Building Society 22,000 6.52%, 2/22/01 21,792,809
10 See Notes to Financial Statements Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000
Principal Amount (000) Description Value (Note 1) - ---------------------------------------------------------------------------------------- Nordbanken North America, Inc. $ 24,023 6.55%, 1/16/01 $ 23,957,437 14,000 6.55%, 1/17/01 13,959,244 34,000 6.55%, 1/19/01 33,888,650 28,000 6.53%, 1/22/01 27,893,343 Northern Rock PLC 15,000 6.54%, 2/14/01 14,880,100 PNC Funding Corp. 40,631 6.59%, 2/28/01 40,199,612 Robert Bosch Finance Corp. 29,000 6.40%, 3/19/01 28,603,022 SanPaolo IMI U.S. Financial Co. 29,000 6.68%, 2/1/01 28,836,682 Santander Central Hispano Finance 46,000 6.51%, 2/12/01 45,650,630 6,000 6.475%, 2/27/01 5,938,488 Telstra Corp. Ltd. 9,000 6.51%, 2/23/01 8,913,742 9,000 6.57%, 2/23/01 8,912,948 8,000 6.38%, 5/25/01 7,801,280 Thunder Bay Funding, Inc. 30,000 6.70%, 1/16/01 29,916,250 8,341 6.70%, 1/17/01 8,316,162 Triple-A One Funding Corp. 16,919 6.66%, 1/12/01 16,884,570 Unilever Capital Corp.(b) 192,000 6.708%, 3/7/01 192,006,961 Variable Funding Capital Corp. 50,000 6.66%, 1/12/01 49,898,250 43,642 6.53%, 1/26/01 43,444,096 50,000 6.54%, 2/8/01 49,654,833 50,000 6.27%, 3/20/01 49,320,750 Verizon Global Funding Corp. 35,000 6.53%, 1/16/01 34,904,771 Vodafone Airtouch Group PLC 35,000 6.62%, 1/24/01 34,851,969 60,395 6.65%, 1/31/01 60,060,311
See Notes to Financial Statements 11 Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000
Principal Amount (000) Description Value (Note 1) - ---------------------------------------------------------------------------------------- Wells Fargo & Co. $ 70,795 6.52%, 3/12/01 $ 69,897,477 Windmill Funding Corp. 13,000 6.62%, 1/11/01 12,976,094 ---------------- 3,899,996,491 - ------------------------------------------------------------------------------------- Loan Participations 0.6% AXA Financial, Inc. 16,000 6.86%, 1/19/01 16,000,000 National Rural Utilities 25,000 6.58%, 2/8/01 25,000,000 ---------------- 41,000,000 - ------------------------------------------------------------------------------------- Other Corporate Obligations 18.0% Bank Austria AG(b) 72,000 6.609%, 2/16/01 71,992,354 CIT Group, Inc.(b) 49,000 6.714%, 1/16/01 48,963,580 First Chicago Corp.(b) 48,000 6.80%, 2/21/01 48,004,563 General Electric Capital Assurance Co.(b) 45,000 6.736%, 1/22/01 45,000,000 Goldman Sachs Group LP(b) 287,000 6.73%, 3/15/01 287,000,000 J.P. Morgan & Co., Inc.(b) 100,000 6.70%, 1/16/01 100,000,000 Merrill Lynch & Co., Inc.(b) 86,000 6.588%, 3/12/01 86,000,000 Metropolitan Life Insurance Co.(b) 28,000 6.841%, 1/2/01 28,000,000 Morgan Stanley Dean Witter & Co.(b) 143,000 6.735%, 1/16/01 143,000,000
12 See Notes to Financial Statements Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000
Principal Amount (000) Description Value (Note 1) - ---------------------------------------------------------------------------------------- Peoples Gas Light & Coke Co.(b) $ 16,000 6.699%, 3/13/01 $ 16,000,000 Restructured Asset Security(b) ENH RET 0015-MM 89,000 6.734%, 1/15/01 89,000,000 Strategic Money Market Trust(b) 2000A 132,000 6.734%, 1/15/01 132,000,000 Strategic Money Market Trust(b) 2000M 16,000 6.58%, 3/13/01 16,000,000 Short Term Repack Asset Trust 1998-E(b) 54,000 6.716%, 1/18/01 54,000,000 Travelers Insurance Co.(b) 41,000 6.853%, 1/8/01 41,000,000 United of Omaha Life Insurance(b) 14,000 6.836%, 3/5/01 14,000,000 ---------------- 1,219,960,497 - ------------------------------------------------------------------------------------- U.S. Agencies 2.2% Federal Home Loan Banks(b) 150,000 6.209%, 1/19/01 149,978,252 ---------------- Total Investments 98.3% (amortized cost $6,668,253,161(a)) 6,668,253,161 Other assets in excess of liabilities 1.7% 114,202,095 ---------------- Net Assets 100% $ 6,782,455,256 ---------------- ----------------
- ------------------------------ (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. See Notes to Financial Statements 13 Prudential MoneyMart Assets, Inc. Portfolio of Investments as of December 31, 2000 The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of December 31, 2000 was as follows: Commercial Banks....................................................... 41.0% Asset Backed Securities................................................ 12.2 Motor Vehicle Parts.................................................... 9.4 Security Brokers & Dealers............................................. 9.2 Bank Holding Company................................................... 5.8 Short-Term Business Credit............................................. 4.7 Personal Credit Institutions........................................... 3.2 Food & Related Products................................................ 2.8 Life Insurance......................................................... 2.4 Federal Credit......................................................... 2.2 Phone Communication.................................................... 2.2 Chemicals and Allied Products.......................................... 1.1 Fire Insurance......................................................... 0.8 Mortgage Bankers....................................................... 0.5 Construction Machine & Equipment....................................... 0.5 Natural Gas............................................................ 0.3 ----- 98.3 Other assets in excess of liabilities.................................. 1.7 ----- 100.0% ----- ----- 14 See Notes to Financial Statements Prudential MoneyMart Assets, Inc. Statement of Assets and Liabilities
December 31, 2000 - --------------------------------------------------------------------------------------- ASSETS Investments, at amortized cost which approximates market value $ 6,668,253,161 Cash 25,058 Receivable for Fund shares sold 328,140,585 Interest receivable 37,549,745 Deferred expenses and other assets 123,437 ----------------- Total assets 7,034,091,986 ----------------- LIABILITIES Payable for Fund shares reacquired 239,980,030 Accrued expenses 5,844,047 Dividends payable 3,656,608 Management fee payable 1,773,040 Distribution fee payable 383,005 ----------------- Total liabilities 251,636,730 ----------------- NET ASSETS $ 6,782,455,256 ----------------- ----------------- Net assets were comprised of: Common Stock, at par ($.001 par value; 15 billion shares authorized for issuance) $ 6,782,455 Paid-in capital in excess of par 6,775,672,801 ----------------- Net assets, December 31, 2000 $ 6,782,455,256 ----------------- ----------------- Class A: Net asset value, offering price and redemption price per share ($6,529,281,923 / 6,529,281,923 shares of common stock issued and outstanding) $1.00 ----------------- ----------------- Class Z: Net asset value, offering price and redemption price per share ($253,173,333 / 253,173,333 shares of common stock issued and outstanding) $1.00 ----------------- -----------------
See Notes to Financial Statements 15 Prudential MoneyMart Assets, Inc. Statement of Operations
Year Ended December 31, 2000 - --------------------------------------------------------------------------------------- NET INVESTMENT INCOME Income Interest $ 440,793,519 ----------------- Expenses Management fee 20,517,601 Distribution fee--Class A 8,172,821 Transfer agent's fees and expenses 14,000,000 Reports to shareholders 1,262,000 Registration fees 600,000 Custodian's fees and expenses 215,000 Insurance 94,000 Director's fees and expenses 51,000 Audit fees 35,000 Legal fees and expenses 30,000 Miscellaneous 75,677 ----------------- Total expenses 45,053,099 ----------------- Net investment income 395,740,420 ----------------- NET REALIZED GAIN ON INVESTMENTS Net realized gain on investment transactions 9,816 ----------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 395,750,236 ----------------- -----------------
16 See Notes to Financial Statements Prudential MoneyMart Assets, Inc. Statement of Changes in Net Assets
Year Ended December 31, ------------------------------------- 2000 1999 - ---------------------------------------------------------------------------------- INCREASE (DECREASE) IN NET ASSETS Operations Net investment income $ 395,740,420 $ 299,932,281 Net realized gain (loss) on investment transactions 9,816 (75,947) ----------------- ---------------- Net increase in net assets resulting from operations 395,750,236 299,856,334 ----------------- ---------------- Dividends and distributions to shareholders (Note 1) Class A (379,839,832) (289,099,677) Class Z (15,910,404) (10,756,657) ----------------- ---------------- (395,750,236) (299,856,334) ----------------- ---------------- Fund share transactions (Note 4) (at $1.00 per share) Proceeds from shares sold 36,763,213,585 32,858,644,444 Net asset value of shares issued to shareholders in reinvestment of dividends and distributions 372,842,594 284,993,693 Cost of shares reacquired (37,006,715,947) (32,854,846,473) ----------------- ---------------- Net increase in net assets from Fund share transactions 129,340,232 288,791,664 ----------------- ---------------- Total increase 129,340,232 288,791,664 NET ASSETS Beginning of year 6,653,115,024 6,364,323,360 ----------------- ---------------- End of year $ 6,782,455,256 $ 6,653,115,024 ----------------- ---------------- ----------------- ----------------
See Notes to Financial Statements 17 Prudential MoneyMart Assets, Inc. Notes to Financial Statements 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. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to ensure the adequacy of the collateral. 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. 18 Prudential MoneyMart Assets, Inc. Notes to Financial Statements Cont'd. 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'), 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 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'), an affiliate of PIFM and an indirect wholly owned subsidiary of Prudential, serves as the Fund's transfer agent. During the year ended December 31, 2000, the Fund incurred fees of approximately $12,990,000 for the services of PMFS. As of December 31, 2000, approximately $1,085,000 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. 19 Prudential MoneyMart Assets, Inc. Notes to Financial Statements Cont'd. 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 net asset value per share) were as follows:
Year ended Year ended December 31, December 31, 2000 1999 --------------- --------------- Class A - --------------------------------------------------- Shares sold 35,917,039,176 32,041,675,513 Shares issued in reinvestment of dividends and distributions 357,452,795 274,562,853 Shares reacquired (36,138,795,705) (32,074,696,386) --------------- --------------- Net increase (decrease) in shares outstanding 135,696,266 241,541,980 --------------- --------------- --------------- --------------- Class Z - --------------------------------------------------- Shares sold 846,174,409 816,968,930 Shares issued in reinvestment of dividends and distributions 15,389,799 10,430,840 Shares reacquired (867,920,242) (780,150,080) --------------- --------------- Net increase (decrease) in shares outstanding (6,356,034) 47,249,690 --------------- --------------- --------------- ---------------
20 Prudential MoneyMart Assets, Inc. Financial Highlights ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' Prudential MoneyMart Assets, Inc. Financial Highlights
Class A ----------------- Year Ended December 31, 2000 - --------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of year $ 1.000 Net investment income and net realized gains .058 Dividends and distributions to shareholders (.058) ----------------- Net asset value, end of year $ 1.00 ----------------- ----------------- TOTAL RETURN(a) 5.94% RATIOS/SUPPLEMENTAL DATA: Net assets, end of year (000) $ 6,529,282 Average net assets (000) $ 6,538,256 Ratios to average net assets: Expenses, including distribution and service (12b-1) fees .67% Expenses, excluding distribution and service (12b-1) fees .54% Net investment income 5.81%
- ------------------------------ (a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. 22 See Notes to Financial Statements Prudential MoneyMart Assets, Inc. Financial Highlights Cont'd.
Class A - ------------------------------------------------------------------------------------- Year Ended December 31, - ------------------------------------------------------------------------------------- 1999 1998 1997 1996 - ------------------------------------------------------------------------------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 .046 .050 .050 .048 (.046) (.050) (.050) (.048) - ---------------- ---------------- ---------------- ---------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- - ---------------- ---------------- ---------------- ---------------- 4.69% 5.06% 5.09% 4.97% $6,393,586 $6,152,044 $6,863,647 $7,315,223 $6,292,031 $6,810,377 $7,121,692 $7,326,023 .68% .69% .70% .71% .55% .57% .58% .59% 4.60% 4.95% 4.97% 4.83%
See Notes to Financial Statements 23 Prudential MoneyMart Assets, Inc. Financial Highlights Cont'd.
Class Z ----------------- Year Ended December 31, 2000 - --------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.000 Net investment income and net realized gains .059 Dividends and distributions to shareholders (.059) ----------------- Net asset value, end of period $ 1.00 ----------------- ----------------- TOTAL RETURN(a) 6.07% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000) $ 253,173 Average net assets (000) $ 267,611 Ratios to average net assets: Expenses, including distribution and service (12b-1) fees .54% Expenses, excluding distribution and service (12b-1) fees .54% Net investment income 5.95%
- ------------------------------ (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. 24 See Notes to Financial Statements Prudential MoneyMart Assets, Inc. Financial Highlights Cont'd.
Class Z - ----------------------------------------------------------------- Year Ended December 31, March 1, 1996(b) - ---------------------------------------- Through 1999 1998 1997 December 31, 1996 - ----------------------------------------------------------------------- $ 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)
See Notes to Financial Statements 25 Prudential MoneyMart Assets, Inc. Report of Independent Accountants 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, 2000, 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 four years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. 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 of America, 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, 2000 by correspondence with the custodian, provide a reasonable basis for our opinion. The accompanying financial highlights for the year 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, 2001 26 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 financial professional can provide you with the following services: There's No Reward Without Risk; but Is This Risk Worth It? Your financial professional 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 professional 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 professional 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 professional can answer questions when you're confused or worried about your investment, and should remind you that you're investing for the long haul. Prudential MoneyMart Assets, Inc. 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 professional 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 Stock Index Fund Prudential Tax-Managed Funds Prudential Tax-Managed Equity Fund Prudential Value 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 Funds Small 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 Strategic Partners Series Strategic Partners Focused Growth Fund Strategic Partners New Era Growth 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 www.prudential.com (800) 225-1852 BOND FUNDS Taxable Bond Funds Prudential Government Income Fund, Inc. 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 New Jersey Series New York Series Pennsylvania Series Prudential National Municipals Fund, Inc. Global/International Bond Funds Prudential Global Total Return 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 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 For More Information Prudential Mutual Funds Gateway Center Three 100 Mulberry Street Newark, NJ 07102-4077 (800) 225-1852 Visit Prudential's website at: http://www.prudential.com Directors Delayne Dedrick Gold Robert F. Gunia Robert E. LaBlanc David R. Odenath, Jr. Judy A. Rice Robin B. Smith Stephen Stoneburn Nancy H. Teeters Clay T. Whitehead Officers David R. Odenath, Jr., President Robert F. Gunia, Vice President Grace C. Torres, Treasurer Marguerite E.H. Morrison, 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 Three Gateway Center, 14th Floor 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 8098 Philadelphia, PA 19101 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 MF108E (ICON) Printed on Recycled Paper -----END PRIVACY-ENHANCED MESSAGE-----