UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
| | |
| Investment Company Act file number: | | 811-09999 |
| |
| Exact name of registrant as specified in charter: | | Dryden Core Investment Fund |
| |
| Address of principal executive offices: | | Gateway Center 3, |
| | 100 Mulberry Street, |
| | Newark, New Jersey 07102 |
| |
| Name and address of agent for service: | | Deborah A. Docs |
| | Gateway Center 3, |
| | 100 Mulberry Street, |
| | Newark, New Jersey 07102 |
| |
| Registrant’s telephone number, including area code: | | 973-367-7521 |
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| Date of fiscal year end: | | 1/31/2007 |
| |
| Date of reporting period: | | 7/31/2006 |
| | | | |
| Item 1 | | – | | Reports to Stockholders |
Fees and Expenses (Unaudited)
As a shareholder of the Series, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Series expenses. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested at the beginning of the period and held through the six-month period ended July 31, 2006.
Actual Expenses
The first line for each share class in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period. The Fund may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table. These fees apply to Individual Retirement Accounts (IRAs), 403(b) accounts, and 529 plan accounts. As of the close of the six months covered by the table, IRA fees included a setup fee of $5, a maintenance fee of up to $36 annually ($18 for the six-month period), and a termination fee of $10. 403(b) accounts and Section 529 plan accounts are each charged an annual $25 fee ($12.50 for the six month period). Some of the fees vary in amount, or are waived, based on your total account balance or the number of JennisonDryden or Strategic Partners funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value as such additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Hypothetical Example for Comparison Purposes
The second line for each share class in the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The Fund may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table. These fees apply to Individual Retirement Accounts (IRAs), 403(b) accounts, and 529 plan accounts. As of the close of the six months covered by the table,
| | |
| Dryden Core Investment Fund | | 1 |
IRA fees included a setup fee of $5, a maintenance fee of up to $36 annually ($18 for the six-month period), and a termination fee of $10. 403(b) accounts and Section 529 plan accounts are each charged an annual $25 fee ($12.50 for the six-month period). Some of the fees vary in amount, or are waived, based on your total account balance or the number of JennisonDryden or Strategic Partners funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value as such additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges (loads). Therefore the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
| | | | | | | | | | | | |
Dryden Core
Investment Fund/
Taxable Money Market
Series | | Beginning Account Value February 1, 2006 | | Ending Account
Value July 31, 2006 | | Annualized
Expense Ratio
Based on the
Six-Month
Period | | | Expenses Paid
During the Six-
Month Period* |
| | | | | | | | | | | | | |
| Actual | | $ | 1,000.00 | | $ | 1,024.30 | | 0.02 | % | | $ | 0.10 |
| Hypothetical | | $ | 1,000.00 | | $ | 1,024.70 | | 0.02 | % | | $ | 0.10 |
* Series expenses are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended July 31, 2006, and divided by the 365 days in the Series’ fiscal year ending January 31, 2007 (to reflect the six-month period).
| | | | | | | | | | | | | | |
Dryden Core
Investment Fund/
Short-Term Bond
Series | | Beginning Account
Value
February 1, 2006 | | Ending Account
Value
July 31, 2006 | | Annualized
Expense Ratio | | | Expenses Paid
During the Six-
Month Period* |
| | | | | | | | | | | | | | | |
| Class A | | Actual | | $ | 1,000.00 | | $ | 1,026.60 | | 0.06 | % | | $ | 0.30 |
| | | Hypothetical | | $ | 1,000.00 | | $ | 1,024.50 | | 0.06 | % | | $ | 0.30 |
* Series expenses (net of fee waivers or subsidies, if any) are equal to the annualized expense ratio (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended July 31, 2006, and divided by the 365 days in the Series’ fiscal year ended January 31, 2007 (to reflect the six-month period).
| | |
| 2 | | Visit our website at www.jennisondryden.com |
Portfolio of Investments
as of July 31, 2006 (Unaudited)
| | | | | |
Principal Amount (000) | | Description | | Value (Note 1) |
| | | | | | |
Certificates of Deposit 22.7% |
| $225,000 | | Abbey National Treasury Services
5.29%, 8/9/06 | | $ | 225,000,249 |
| 83,000 | | American Express Centurion
5.339%, 7/18/07 | | | 83,000,000 |
| 200,000 | | Bank of New York
4.55%, 10/27/06 | | | 200,000,000 |
| 122,500 | | Bank of Nova Scotia
4.805%, 10/31/06 | | | 122,499,253 |
| 150,000 | | Barclay Bank PLC
5.343%, 12/22/06(d) | | | 149,988,836 |
| 63,000 | | BNP Paribas NY
5.272%, 3/6/07 | | | 62,991,665 |
| 140,000 | | Fortis Bank NV S.A.
4.30%, 9/28/06 | | | 140,000,000 |
| 50,000 | | HBOS Treasury Services PLC
4.50%, 10/16/06 | | | 50,000,000 |
| 95,000 | | 5.315%, 4/27/07 | | | 95,000,000 |
| 150,000 | | National City Bank
5.36%, 10/12/06 | | | 150,013,510 |
| 100,000 | | Royal Bank of Scotland PLC
4.30%, 9/28/06 | | | 100,000,000 |
| 175,000 | | Skandinaviska Enskilda Banken AB
4.905%, 2/1/07 | | | 175,004,261 |
| 210,000 | | Societe Generale
4.50%, 10/13/06 | | | 210,000,000 |
| 150,000 | | 4.81%, 10/30/06 | | | 150,000,000 |
| 75,000 | | State Street Bank and Trust Co.
5.47%, 1/16/07 | | | 74,999,038 |
| 400,000 | | Suntrust Banks, Inc.
5.295%, 2/9/07(b) | | | 399,979,380 |
| 80,000 | | 5.294%, 6/5/07(b) | | | 80,000,000 |
| 100,000 | | 4.86%, 8/14/06(b) | | | 100,000,000 |
| 100,000 | | Toronto Dominion Bank
4.022%, 8/7/06 | | | 100,000,000 |
| 25,000 | | 4.19%, 9/22/06 | | | 25,000,000 |
| 175,000 | | 4.225%, 9/26/06 | | | 175,000,000 |
| 200,000 | | Unicredito Italiano S.P.A.
5.305%, 11/27/06 | | | 200,000,000 |
| 200,000 | | Wells Fargo Bank N.A.
5.28%, 8/4/06 | | | 199,999,834 |
| 22,072 | | 5.30%, 8/7/06 | | | 22,072,000 |
| | | | |
|
|
| | | | | | 3,290,548,026 |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Taxable Money Market Series | | 3 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
| | | | | |
Principal Amount (000) | | Description | | Value (Note 1) |
| | | | | | |
Commercial Paper 35.1% |
| $ 36,625 | | Amsterdam Funding Corp., 144A
5.27%, 8/3/06(d) | | $ | 36,614,277 |
| 30,000 | | 5.28%, 8/4/06(d) | | | 29,986,800 |
| 80,000 | | 5.27%, 8/8/06(d) | | | 79,918,022 |
| 250,000 | | Bank of America Corp.
5.28%, 8/8/06(d) | | | 249,743,333 |
| 200,000 | | 5.39%, 9/18/06(d) | | | 198,562,667 |
| 49,241 | | Barton Capital Corp., 144A
5.27%, 8/4/06(d) | | | 49,219,375 |
| 185,000 | | 5.30%, 8/3/06(d) | | | 184,945,528 |
| 47,125 | | 5.27%, 8/8/06(d) | | | 47,076,710 |
| 195,000 | | BASF AG, 144A
5.28%, 8/9/06(d) | | | 194,771,200 |
| 144,000 | | Bear Stearns & Co., Inc.
5.315%, 8/9/06(d) | | | 143,829,920 |
| 40,000 | | Cafco LLC, 144A
4.83%, 8/28/06(d) | | | 39,855,100 |
| 25,000 | | Caisse Nat Csse Epar Pre, 144A
5.28%, 8/8/06(d) | | | 24,974,333 |
| 100,000 | | Cargill Global Fund PLC, 144A
5.24%, 8/8/06(d) | | | 99,898,111 |
| 190,000 | | Citigroup Funding, Inc.
5.25%, 8/3/06(d) | | | 189,944,583 |
| 126,000 | | 5.25%, 8/4/06(d) | | | 125,944,875 |
| 195,000 | | 5.285%, 8/7/06(d) | | | 194,827,987 |
| 159,000 | | 5.31%, 8/10/06(d) | | | 158,788,928 |
| 100,000 | | Falcon Asset Securitization Corp., 144A
5.35%, 8/22/06(d) | | | 99,687,917 |
| 109,660 | | 5.27%, 8/4/06(d) | | | 109,611,841 |
| 50,000 | | 5.30%, 8/7/06(d) | | | 49,955,833 |
| 25,000 | | General Electric Capital Corp.
5.079%, 2/12/07(d) | | | 24,312,219 |
| 200,000 | | Goldman Sachs Group, Inc., 144A
5.12%, 8/7/06 | | | 200,000,000 |
| 75,000 | | Greenwich Capital Holdings, Inc.
5.36%, 11/30/06 | | | 75,000,000 |
| 75,000 | | HSBC Finance Corp. M.T.N.
5.26%, 8/3/06 | | | 74,978,083 |
| 50,000 | | Kredietbank N.A.
5.29%, 8/11/06 | | | 49,926,528 |
See Notes to Financial Statements.
| | |
| 4 | | Visit our website at www.jennisondryden.com |
| | | | | |
Principal Amount (000) | | Description | | Value (Note 1) |
| | | | | | |
| $178,118 | | Long Lane Master Trust, 144A
5.39%, 8/29/06(d) | | $ | 177,371,290 |
| 100,000 | | Nayla Funding LLC, 144A
5.40%, 10/16/06(d) | | | 98,860,000 |
| 50,000 | | 5.26%, 8/15/06(d) | | | 49,897,722 |
| 52,315 | | Park Granada LLC, 144A
5.28%, 8/7/06(d) | | | 52,268,963 |
| 40,826 | | 5.29%, 8/8/06(d) | | | 40,784,006 |
| 49,449 | | 5.30%, 8/8/06(d) | | | 49,398,040 |
| 200,000 | | 5.29%, 8/7/06(d) | | | 199,823,667 |
| 60,000 | | Preferred Receivable Funding, 144A
5.37%, 8/24/06(d) | | | 59,794,150 |
| 83,000 | | Prudential PLC, 144A
5.39%, 10/12/06(d) | | | 82,105,260 |
| 100,000 | | 5.38%, 10/16/06(d) | | | 98,864,222 |
| 75,000 | | 5.39%, 10/6/06(d) | | | 74,258,875 |
| 20,000 | | Sanofi-Aventis, 144A
5.34%, 9/20/06(d) | | | 19,851,667 |
| 190,000 | | Sheffield Receivables, 144A
5.26%, 8/7/06(d) | | | 189,833,433 |
| 233,000 | | 5.26%, 8/3/06(d) | | | 232,931,865 |
| 100,000 | | 5.30%, 8/2/06(d) | | | 99,985,278 |
| 50,000 | | Skandinaviska Enskilda Banken AB
5.37%, 11/29/06(d) | | | 49,999,184 |
| 125,000 | | 5.37%, 11/27/06(d) | | | 124,997,994 |
| 40,000 | | Swiss Refinancial Products, 144A
4.82%, 11/10/06(d) | | | 39,459,089 |
| 27,078 | | Triple A-1 Funding, 144A
5.28%, 8/8/06(d) | | | 27,050,200 |
| 134,000 | | Tulip Funding Corp., 144A
5.32%, 8/1/06(d) | | | 134,000,000 |
| 87,156 | | 5.39%, 10/23/06(d) | | | 86,072,917 |
| 43,549 | | 5.37%, 8/28/06(d) | | | 43,373,606 |
| 141,000 | | 5.37%, 8/30/06(d) | | | 140,387,858 |
| 100,000 | | 5.40%, 10/16/06(d) | | | 98,860,000 |
| 95,000 | | Windmill Funding Corp.
5.27%, 8/4/06(d) | | | 94,958,279 |
| | | | |
|
|
| | | | | | 5,097,561,735 |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Taxable Money Market Series | | 5 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
| | | | | |
Principal Amount (000) | | Description | | Value (Note 1) |
| | | | | | |
Loan Participations 0.8% |
| $ 60,000 | | Cargill Inc.
5.34%, 8/8/06(c) | | $ | 60,000,000 |
| 60,000 | | Cargill Global Fund PLC
5.40%, 8/25/06(c) | | | 60,000,000 |
| | | | |
|
|
| | | | | | 120,000,000 |
|
Municipal Bonds 0.3% |
| 26,335 | | Massachusetts St. Health & Educational, Harvard University
5.32%, 7/1/29(b) | | | 26,335,000 |
| 13,000 | | New York City N.Y. HDC Related Westport Dev.
5.33%, 6/15/34(b) | | | 13,000,000 |
| | | | |
|
|
| | | | | | 39,335,000 |
|
Other Corporate Obligations 35.2% |
| 129,000 | | American Express Credit Corp. M.T.N.
5.434%, 8/3/07(b) | | | 129,019,953 |
| 34,000 | | Citigroup, Inc.
5.50%, 8/9/06(b) | | | 34,006,705 |
| 25,000 | | General Electric Capital Corp.
5.469%, 8/17/07(b) M.T.N. | | | 25,000,000 |
| 10,000 | | 5.526%, 9/18/06(b) M.T.N. | | | 10,002,007 |
| 19,000 | | 5.372%, 3/9/07(b) M.T.N. | | | 19,014,167 |
| 111,000 | | 5.445%, 7/9/07(b) | | | 111,000,000 |
| 125,000 | | Genworth Life Insurance Co.
5.48%, 8/15/06(b)(c) | | | 125,000,000 |
| 22,000 | | 5.48%, 8/24/07(b)(c) | | | 22,000,000 |
| 30,000 | | Goldman Sachs Group, Inc.
5.386%, 8/1/06(b) M.T.N. | | | 30,000,000 |
| 89,220 | | 5.647%, 1/9/07(b) M.T.N. | | | 89,279,653 |
| 59,360 | | 5.599%, 3/30/07(b) M.T.N. | | | 59,404,995 |
| 80,000 | | 5.262%, 5/11/07(b) M.T.N. | | | 80,073,922 |
| 200,000 | | 5.42%, 3/20/07(b)(c) P.N. | | | 200,000,000 |
| 25,950 | | 5.633%, 7/2/07(b) | | | 25,983,091 |
| 50,000 | | HBOS Treasury Services M.T.N., 144A
5.315%, 8/9/07(b) | | | 49,998,121 |
| 50,000 | | HSBC Finance Corp. M.T.N.
5.54%, 10/27/06(b) | | | 50,008,290 |
| 324,000 | | 5.324%, 8/6/07(b) | | | 324,000,000 |
| 135,000 | | 5.271%, 6/1/07(b) | | | 135,057,122 |
See Notes to Financial Statements.
| | |
| 6 | | Visit our website at www.jennisondryden.com |
| | | | | |
Principal Amount (000) | | Description | | Value (Note 1) |
| | | | | | |
| $100,000 | | HSBC USA, Inc. M.T.N.
5.349%, 8/15/07(b) | | $ | 100,000,000 |
| 218,000 | | Irish Life and Permanent PLC M.T.N., 144A
5.409%, 8/21/07(b) | | | 217,991,065 |
| 340,000 | | J.P. Morgan Chase M.T.N.
5.316%, 8/2/07(b) | | | 340,000,000 |
| 126,625 | | Merrill Lynch & Co., Inc. M.T.N.
5.615%, 1/26/07(b) | | | 126,716,210 |
| 49,725 | | 5.345%, 2/27/07(b) | | | 49,764,923 |
| 170,000 | | 5.394%, 8/3/07(b) | | | 170,000,000 |
| 184,000 | | 5.599%, 7/11/07(b) | | | 184,000,000 |
| 118,200 | | 5.409%, 6/15/07(b) | | | 118,275,994 |
| 40,000 | | 5.632%, 7/9/07(b) | | | 40,054,009 |
| 50,000 | | Metropolitan Life Insurance Co.
5.219%, 2/1/07(b)(c) | | | 50,000,000 |
| 102,000 | | 5.416%, 10/2/06(b)(c) | | | 102,000,000 |
| 84,000 | | Metropolitan Life Insurance Co. of CT
5.405%, 7/8/07(b)(c) | | | 84,000,000 |
| 200,000 | | Morgan Stanley
5.394%, 8/3/07(b) M.T.N. | | | 200,000,000 |
| 177,000 | | 5.468%, 8/27/07(b) M.T.N. | | | 177,000,000 |
| 19,000 | | 5.399%, 8/13/07(b) | | | 19,010,168 |
| 144,000 | | 5.366%, 8/3/07(b) M.T.N. | | | 144,000,000 |
| 40,000 | | National City Bank of Cleveland M.T.N.
5.228%, 9/1/06(b) | | | 40,000,620 |
| 30,000 | | 5.346%, 10/12/06(b) | | | 30,001,707 |
| 54,000 | | 5.34%, 9/29/06(b) | | | 53,997,712 |
| 40,000 | | 5.488%, 4/2/07(b) | | | 40,002,789 |
| 100,000 | | National City Bank of Indiana M.T.N.
5.375%, 1/25/07(b) | | | 100,013,465 |
| 50,000 | | Nationwide Building Society, 144A
5.55%, 7/27/07(b)(d) | | | 50,025,001 |
| 160,000 | | Nordea Bank AB,
5.325%, 8/9/07(b) | | | 160,000,000 |
| 197,000 | | 5.329%, 8/10/07 144A(b) | | | 197,000,000 |
| 90,000 | | Paccar Financial Corp. M.T.N.
5.42%, 1/16/07(b) | | | 89,975,712 |
| 36,000 | | Pacific Life Insurance Co.
5.461%, 7/13/07(b)(c) | | | 36,000,000 |
| 180,000 | | Skandinaviska Enskilda Banken AB, 144A
5.369%, 8/16/07 | | | 180,000,000 |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Taxable Money Market Series | | 7 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
| | | | | |
Principal Amount (000) | | Description | | Value (Note 1) |
| | | | | | |
| $ 50,000 | | Travelers Insurance Co.
5.277%, 2/23/07(b)(c) | | $ | 50,000,000 |
| 340,000 | | Wells Fargo & Co.
5.336%, 8/3/07(b) | | | 340,000,001 |
| 89,000 | | Westpac Banking Corp.
5.34%, 7/11/07(b) M.T.N. | | | 89,000,457 |
| 20,000 | | 5.27%, 5/25/07 144A(b) | | | 20,014,147 |
| | | | |
|
|
| | | | | | 5,117,692,006 |
|
Time Deposits 1.5% |
| 68,268 | | Societe Generale
5.31%, 8/1/06 | | | 68,268,000 |
| 145,948 | | Toronto Dominion Bank
5.312%, 8/1/06 | | | 145,948,000 |
| | | | |
|
|
| | | | | | 214,216,000 |
U.S. Government Agencies 1.8% |
| 24,235 | | Federal Home Loan Bank
2.875%, 8/15/06 | | | 24,224,133 |
| 200,000 | | Federal National Mortgage Association
5.217%, 9/7/06(b) | | | 199,985,118 |
| 36,000 | | 4.10%, 8/22/06 | | | 35,999,807 |
| | | | |
|
|
| | | | | | 260,209,058 |
|
Repurchase Agreements(e) 2.2% |
| 125,000 | | BNP Paribas
5.30% dated 7/31/06 due 8/1/06, in the amount of $125,000,000 repurchase price $125,018,403 The value of collateral including accrued interest is $127,500,000 | | | 125,000,000 |
| 200,000 | | Greenwich Capital
5.29% dated 7/31/06 due 8/1/06, in the amount of $200,000,000 repurchase price $200,029,389 The value of collateral including accrued interest is $204,002,660. | | | 200,000,000 |
| | | | |
|
|
| | | | | | 325,000,000 |
| | | Total Investments 99.6%
(amortized cost $14,464,561,825)(a) | | | 14,464,561,825 |
| | | Other assets in excess of liabilities 0.4% | | | 64,030,374 |
| | | | |
|
|
| | | Net Assets 100.0% | | $ | 14,528,592,199 |
| | | | |
|
|
See Notes to Financial Statements.
| | |
| 8 | | Visit our website at www.jennisondryden.com |
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.
| (a) | The cost basis for federal income tax purposes is substantially the same as that used for financial statement purposes. |
| (b) | Variable rate instrument. 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. |
| (c) | Indicates a security that has been deemed illiquid. |
| (d) | Rate quoted represents yield-to-maturity as of purchase date. |
| (e) | Repurchase agreements are collateralized by U.S Treasury or Federal agency obligations. |
LLC—Limited Liability Company.
M.T.N.—Medium Term Note.
N.A. —National Association (National Bank).
P.N.—Promissory Note.
The Industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of July 31, 2006 was as follows:
| | | |
Other Corporate Obligations | | 35.2 | % |
Commercial Paper | | 35.1 | |
Certificates of Deposit | | 22.7 | |
Repurchase Agreements | | 2.2 | |
U.S. Government Agencies | | 1.8 | |
Time Deposits | | 1.5 | |
Loan Participations | | 0.8 | |
Municipal Bonds | | 0.3 | |
| | |
|
|
| | | 99.6 | |
Other assets in excess of liabilities | | 0.4 | |
| | |
|
|
Total | | 100.0 | % |
| | |
|
|
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Taxable Money Market Series | | 9 |
Statement of Assets and Liabilities
as of July 31, 2006 (Unaudited)
| | | | |
Assets | | | | |
Investments, at amortized cost which approximates market value | | $ | 14,464,561,825 | |
Cash | | | 2,219 | |
Interest receivable | | | 81,237,287 | |
| | |
|
|
|
Total assets | | | 14,545,801,331 | |
| | |
|
|
|
| |
Liabilities | | | | |
Dividend payable | | | 16,911,601 | |
Management fee payable | | | 186,372 | |
Accrued expenses | | | 88,878 | |
Transfer agent fee payable | | | 16,822 | |
Deferred trustees’ fee | | | 5,459 | |
| | |
|
|
|
Total liabilities | | | 17,209,132 | |
| | |
|
|
|
| |
Net Assets | | $ | 14,528,592,199 | |
| | |
|
|
|
| | | | | |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 14,528,603 | |
Paid-in capital in excess of par | | | 14,514,053,550 | |
| | |
|
|
|
| | | | 14,528,582,153 | |
Undistributed net investment income | | | 129,027 | |
Accumulated net realized loss on investments | | | (118,981 | ) |
| | |
|
|
|
Net assets July 31, 2006 | | $ | 14,528,592,199 | |
| | |
|
|
|
Net asset value, offering price and redemption price per share
($14,528,592,199 ÷ 14,528,603,256 shares of $.001 par value common stock issued and outstanding) | | | $1.00 | |
| | |
|
|
|
See Notes to Financial Statements.
| | |
| 10 | | Visit our website at www.jennisondryden.com |
Statement of Operations
Six Months Ended July 31, 2006 (Unaudited)
| | | | |
Net Investment Income | | | | |
Income | | | | |
Interest | | $ | 363,792,313 | |
| | |
|
|
|
| |
Expenses | | | | |
Management fee | | | 1,088,172 | |
Insurance expense | | | 291,000 | |
Transfer agent’s fees and expenses (including affiliated expense of $50,000) | | | 51,000 | |
Custodian’s fees and expenses | | | 40,000 | |
Legal fees and expenses | | | 32,000 | |
Reports to shareholders | | | 13,000 | |
Audit fee | | | 8,000 | |
Trustees’ fees | | | 5,000 | |
Miscellaneous | | | 1,878 | |
| | |
|
|
|
Total expenses | | | 1,530,050 | |
| | |
|
|
|
Net investment income | | | 362,262,263 | |
| | |
|
|
|
| |
Net Realized Loss On Investments: | | | | |
Net realized loss on investment transactions | | | (16,932 | ) |
| | |
|
|
|
Net Increase In Net Assets Resulting From Operations | | $ | 362,245,331 | |
| | |
|
|
|
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Taxable Money Market Series | | 11 |
Statement of Changes in Net Assets
(Unaudited)
| | | | | | | | |
| | | Six Months Ended July 31, 2006 | | | Year Ended January 31, 2006 | |
Increase (Decrease) In Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income | | $ | 362,262,263 | | | $ | 418,183,828 | |
Net realized loss on investment transactions | | | (16,932 | ) | | | (102,049 | ) |
| | |
|
|
| |
|
|
|
Net increase in net assets resulting from operations | | | 362,245,331 | | | | 418,081,779 | |
| | |
|
|
| |
|
|
|
Dividends and distributions from Net Investment Income (Note 1) | | | (362,535,365 | ) | | | (417,781,699 | ) |
| | |
|
|
| |
|
|
|
Net proceeds from shares subscribed | | | 62,271,645,316 | | | | 107,293,543,359 | |
Net asset value of shares issued to shareholders in reinvestment of dividends and distributions | | | 266,544,478 | | | | 409,944,391 | |
Cost of shares reacquired | | | (62,448,950,327 | ) | | | (105,188,887,557 | ) |
| | |
|
|
| |
|
|
|
Net increase in net assets from Series share transactions | | | 89,239,467 | | | | 2,514,600,193 | |
| | |
|
|
| |
|
|
|
Total increase | | | 88,949,433 | | | | 2,514,900,273 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 14,439,642,766 | | | | 11,924,742,493 | |
| | |
|
|
| |
|
|
|
End of period(a) | | $ | 14,528,592,199 | | | $ | 14,439,642,766 | |
| | |
|
|
| |
|
|
|
(a) Includes undistributed net investment income of: | | $ | 129,027 | | | $ | 402,129 | |
| | |
|
|
| |
|
|
|
See Notes to Financial Statements.
| | |
| 12 | | Visit our website at www.jennisondryden.com |
Portfolio of Investments
as of July 31, 2006 (Unaudited)
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
LONG-TERM INVESTMENTS 67.1% | | | | | | | | | | |
| | | | |
ASSET BACKED SECURITIES 38.9% | | | | | | | | | | |
Ace Securities Corp. Home Equity Loan, Ser. 2002-HE1, Class M1(a) | | Aa2 | | 6.04% | | 6/25/32 | | $ | 1,048 | | $ | 1,063,729 |
Ace Securities Corp. Home Equity Loan, Ser. 2005-HE2, Class M2(a) | | Aa2 | | 5.84 | | 4/25/35 | | | 2,000 | | | 2,008,767 |
American Express Credit Account Master Trust, Ser. 2003-2, Class B(a) | | A1 | | 5.74 | | 10/15/10 | | | 10,000 | | | 10,048,737 |
Ameriquest Mortgage Securities, Inc., Ser. 2003-6, Class AF4(a) | | Aaa | | 4.33 | | 8/25/33 | | | 1,931 | | | 1,887,816 |
Amortizing Residential Collateral Trust, Home Equity Loan, Ser. 2002-BC9, Class M1(a) | | Aa2 | | 6.49 | | 12/25/32 | | | 2,997 | | | 3,002,944 |
CDC Mortgage Capital Trust Home Equity Loan, Ser. 2002-HE2, Class M2(a) | | A2 | | 6.89 | | 1/25/33 | | | 881 | | | 881,931 |
Centex Home Equity, Home Equity Loan, Ser. 2003-B, Class M1(a) | | Aa2 | | 6.09 | | 6/25/33 | | | 1,750 | | | 1,754,756 |
Centex Home Equity, Home Equity Loan, Ser. 2005-B, Class M1(a) | | Aa1 | | 5.79 | | 3/25/35 | | | 3,000 | | | 3,011,945 |
Chase Credit Card Master Trust, Ser. 2003-3, Class B(a) | | A2 | | 5.72 | | 10/15/10 | | | 9,800 | | | 9,845,850 |
Chase Credit Card Master Trust, Ser. 2003-6, Class C(a) | | Baa2 | | 6.17 | | 2/15/11 | | | 18,000 | | | 18,223,553 |
Citibank Credit Card Issuance Trust, Ser. 2001-C1, Class C1(a) | | Baa2 | | 6.59 | | 1/15/10 | | | 4,410 | | | 4,464,011 |
Citibank Credit Card Issuance Trust, Ser. 2002-C3, Class C3(a) | | Baa2 | | 6.47 | | 12/15/09 | | | 4,000 | | | 4,044,450 |
Citigroup Mortgage Loan Trust Inc., Home Equity Loan, Ser. 2006-HE1, Class M2(a) | | Aa2 | | 5.73 | | 1/25/36 | | | 2,500 | | | 2,502,991 |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Short-Term Bond Series | | 13 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
Countrywide Asset-Backed Certificates, Home Equity Loan, Ser. 2005-13, Class MV2(a) | | Aa2 | | 5.85% | | 4/25/36 | | $ | 9,900 | | $ | 9,951,777 |
Countrywide Asset-Backed Certificates, Home Equity Loan, Ser. 2006-13, Class 1AF1(a) | | Aaa | | 5.52 | | 1/25/37 | | | 13,246 | | | 13,246,000 |
Countrywide Home Equity Loan Trust, Ser. 2005-A, Class 2A(a) | | Aaa | | 5.61 | | 4/15/35 | | | 3,951 | | | 3,956,361 |
Countrywide Home Equity Loan Trust, Ser. 2005-B, Class 2A(a) | | Aaa | | 5.55 | | 5/15/35 | | | 4,215 | | | 4,217,147 |
Countrywide Home Equity Loan Trust, Ser. 2005-I, Class 2A(a) | | Aaa | | 5.60 | | 2/15/36 | | | 7,999 | | | 7,998,647 |
Countrywide Home Equity Loan Trust, Ser. 2006-B, Class 2A(a) | | Aaa | | 5.54 | | 8/15/31 | | | 10,666 | | | 10,667,221 |
CS First Boston Mortgage Securities Corp., Ser. 2001-HE25, Class M1(a) | | Aaa | | 6.99 | | 3/25/32 | | | 1,985 | | | 2,032,304 |
Discover Card Master Trust I Credit Card, Ser. 2003-4, Class B1(a) | | A2 | | 5.70 | | 5/15/11 | | | 2,515 | | | 2,527,994 |
Discover Card Master Trust I Credit Card, Ser. 2003-4, Class B2(a) | | A2 | | 5.80 | | 5/15/13 | | | 3,000 | | | 3,023,461 |
Discover Card Master Trust I Credit Card, Ser. 2004-1, Class B(a) | | A2 | | 5.55 | | 4/16/10 | | | 6,000 | | | 6,001,919 |
Equifirst Mortgage Loan Trust, Ser. 2003-1, Class M2(a) | | A2 | | 7.29 | | 12/25/32 | | | 1,000 | | | 1,010,159 |
Fieldstone Mortgage Investment Corp., Home Equity Loan, Ser. 2005-2, Class 2A3(a) | | Aaa | | 5.76 | | 12/25/35 | | | 2,608 | | | 2,618,049 |
Fieldstone Mortgage Investment Corp., Home Equity Loan, Ser. 2006-1, Class M2(a) | | Aa2 | | 5.77 | | 5/25/36 | | | 3,289 | | | 3,292,168 |
Fieldstone Mortgage Investment Corp., Home Equity Loan, Ser. 2006-2, Class 2A2(a) | | Aaa | | 5.56 | | 7/25/36 | | | 3,000 | | | 2,999,942 |
See Notes to Financial Statements.
| | |
| 14 | | Visit our website at www.jennisondryden.com |
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
First Franklin Mtg. Loan Asset Backed Cert., Home Equity Loan, Ser. 2005-FF2, Class M3(a) | | Aa3 | | 5.87% | | 3/25/35 | | $ | 6,000 | | $ | 6,037,787 |
First Franklin Mtg. Loan Asset Backed Cert., Home Equity Loan, Ser. 2005-FFH4, Class M4(a) | | Aa3 | | 6.04 | | 12/25/35 | | | 3,500 | | | 3,524,035 |
First Franklin Mtg. Loan Asset Backed Cert., Home Equity Loan, Ser. 2006-FFH1, Class M2, 144A(a) | | Aa2 | | 5.79 | | 1/25/36 | | | 2,000 | | | 2,006,692 |
First USA Credit Card Master Trust, Ser. 1997-8, Class B(a) | | A1 | | 5.73 | | 5/17/10 | | | 1,550 | | | 1,555,135 |
GE Capital Credit Card Master Note Trust, Credit Card, Ser. 2004-1, Class B(a) | | A2 | | 5.67 | | 6/15/10 | | | 1,900 | | | 1,902,201 |
GE Capital Credit Card Master Note Trust, Home Equity Loan, Ser. 2004-2, Class B(a) | | A2 | | 5.63 | | 9/15/10 | | | 7,800 | | | 7,808,930 |
GE Capital Credit Card Master Note Trust, Ser. 2005-3, Class B(a) | | A2 | | 5.67 | | 6/15/13 | | | 4,000 | | | 4,023,458 |
GE Corporate Aircraft Financing, Ser. 2005-1, Class A3(a) | | Aaa | | 5.65 | | 8/26/19 | | | 12,500 | | | 12,500,000 |
GE Dealer Floorplan Master Note Trust, Ser. 2006-1, Class B(a) | | A1 | | 5.58 | | 4/20/11 | | | 8,500 | | | 8,499,873 |
GE Dealer Floorplan Master Note Trust, Ser. 2006-2, Class B(a) | | A1 | | 5.58 | | 4/20/13 | | | 5,000 | | | 4,999,923 |
Gesea, Ser. 2005-1X, Reg S, Class A(a) | | Aaa | | 5.62 | | 11/17/20 | | | 13,067 | | | 13,103,417 |
GMAC Mortgage Corp. Loan Trust, Home Equity Loan, Ser. 2001-HE, Class 1A1(a) | | Aaa | | 5.61 | | 12/25/26 | | | 10,285 | | | 10,293,335 |
GMAC Mortgage Corp. Loan Trust, Home Equity Loan, Ser. 2004-HE4, Class A2(a) | | Aaa | | 5.58 | | 3/25/35 | | | 10,000 | | | 10,020,384 |
GMAC Mortgage Corp. Loan Trust, Home Equity Loan, Ser. 2005-HE, Class A2(a) | | Aaa | | 5.54 | | 2/25/36 | | | 7,775 | | | 7,784,448 |
GSAMP Trust Home Equity Loan, Ser. 2005-AHL, Class A1B(a) | | Aaa | | 5.70 | | 12/25/35 | | | 4,306 | | | 4,308,473 |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Short-Term Bond Series | | 15 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
GSAMP Trust Home Equity Loan, Ser. 2005-HE6, Class A2B(a) | | Aaa | | 5.58% | | 11/25/35 | | $ | 6,500 | | $ | 6,504,059 |
GSAMP Trust Home Equity Loan, Ser. 2005- HE6, Class M2(a) | | Aa2 | | 5.84 | | 11/25/35 | | | 4,500 | | | 4,518,744 |
GSAMP Trust Home Equity Loan, Ser. 2005-WMC, Class A2B(a) | | Aaa | | 5.63 | | 12/25/35 | | | 11,000 | | | 11,018,411 |
Home Equity Asset Trust, Home Equity Loan, Ser. 2002-4, Class M1 | | Aa2 | | 6.39 | | 3/25/33 | | | 2,051 | | | 2,052,702 |
Home Equity Asset Trust, Home Equity Loan, Ser. 2006-6, Class 2A4(a) | | Aaa | | 5.64 | | 11/25/36 | | | 14,500 | | | 14,500,000 |
Irwin Home Equity, Ser. 2006-2, Class 2A1, 144A(a) | | Aaa | | 5.49 | | 2/25/36 | | | 15,000 | | | 15,000,000 |
Ixis Real Estate Capital Trust, Home Equity Loan, Ser. 2006-HE1, Class A4(a) | | Aaa | | 5.69 | | 3/25/36 | | | 3,000 | | | 3,004,766 |
Marlin Leasing Receivables LLC, Equipment, Ser. 2003-1A, Class A, 144A(a)(c) | | A2 | | 2.90 | | 5/15/08 | | | 981 | | | 977,303 |
Marlin Leasing Receivables LLC, Equipment, Ser. 2004-1A, Class A4(a), Private Placement | | Aaa | | 5.67 | | 5/15/11 | | | 10,000 | | | 10,001,245 |
Mellon Bank Home Equity Loan Trust, Home Equity Loan, Ser. 2001-1, Class A(a) | | Aaa | | 5.62 | | 3/20/27 | | | 1,260 | | | 1,263,101 |
Morgan Stanley ABS Capital I, Ser. 2002-NC6, Class M1(a) | | Aa2 | | 6.39 | | 11/25/32 | | | 2,499 | | | 2,508,411 |
Morgan Stanley ABS Capital I, Ser. 2003-NC5, Class M3(a) | | A3 | | 7.69 | | 4/25/33 | | | 642 | | | 645,887 |
Morgan Stanley Dean Witter Capital I, Home Equity Loan, Ser. 2002-AM3, Class M2(a) | | A2 | | 7.39 | | 2/25/33 | | | 3,034 | | | 3,053,066 |
Morgan Stanley Dean Witter Capital I, Home Equity Loan, Ser. 2002-HE1, Class M2(a) | | A2 | | 6.69 | | 7/25/32 | | | 1,138 | | | 1,152,448 |
Morgan Stanley Dean Witter Capital I, Home Equity Loan, Ser. 2002-NC5, Class M1(a) | | Aa2 | | 6.33 | | 10/25/32 | | | 2,487 | | | 2,491,003 |
Morgan Stanley Dean Witter Capital I, Home Equity Loan, Ser. 2002-NC5, Class M2(a) | | A2 | | 6.99 | | 10/25/32 | | | 2,033 | | | 2,038,212 |
See Notes to Financial Statements.
| | |
| 16 | | Visit our website at www.jennisondryden.com |
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
Morgan Stanley Dean Witter Capital I, Home Equity Loan, Ser. 2003-NC3, Class M1(a) | | Aa1 | | 6.29% | | 3/25/33 | | $ | 2,449 | | $ | 2,454,293 |
Morgan Stanley Dean Witter Capital I, Home Equity Loan, Ser. 2003-NC3, Class M3(a) | | A3 | | 7.64 | | 3/25/33 | | | 967 | | | 971,611 |
Morgan Stanley Home Equity Loan, Ser. 2005-2, Class M1(a) | | Aa1 | | 5.80 | | 5/25/35 | | | 4,366 | | | 4,393,010 |
National City Credit Card Master Trust, Credit Card, Ser. 2006-1, Class B(a) | | A2 | | 5.52 | | 3/15/13 | | | 6,000 | | | 6,007,303 |
National City Credit Card Master Trust, Credit Card, Ser. 2006-1, Class C(a) | | Baa2 | | 5.65 | | 3/15/13 | | | 5,000 | | | 5,006,065 |
National Collegiate Student Loan Trust, Ser. 2006-1, Class A2(a) | | Aaa | | 5.53 | | 8/25/23 | | | 5,000 | | | 4,999,900 |
Option One Mortgage Loan Trust, Home Equity Loan, Ser. 2005-5, Class M2(a) | | Aa2 | | 5.81 | | 12/25/35 | | | 8,000 | | | 8,040,729 |
Option One Mortgage Loan Trust, Home Equity Loan, Ser. 2005-5, Class M3(a) | | Aa3 | | 5.83 | | 12/25/35 | | | 2,000 | | | 2,012,764 |
Popular ABS Mortgage Pass-Through Trust, Home Equity Loan, Ser. 2005-B, Class M1(a) | | Aa1 | | 5.87 | | 8/25/35 | | | 4,552 | | | 4,583,545 |
Popular ABS Mortgage Pass-Through Trust, Home Equity Loan, Ser. 2006-B, Class A3(a) | | Aaa | | 5.65 | | 5/25/36 | | | 3,000 | | | 3,004,785 |
Quest Trust, Home Equity Loan, Ser. 2006-X1, Class A2(a) | | Aaa | | 5.58 | | 3/25/36 | | | 10,000 | | | 10,005,395 |
Renaissance Home Equity Loan Trust, Ser. 2003-1, Class A(a) | | Aaa | | 5.82 | | 6/25/33 | | | 1,490 | | | 1,493,713 |
Residential Asset Mortgage Products, Home Equity Loan, Ser. 2005-RZ2, Class AI3(a) | | Aaa | | 5.66 | | 5/25/35 | | | 5,000 | | | 5,009,934 |
Residential Asset Mortgage Products, Home Equity Loan, Ser. 2006-RZ3, Class M2(a) | | Aa2 | | 5.77 | | 8/25/35 | | | 4,500 | | | 4,500,000 |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Short-Term Bond Series | | 17 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
Residential Asset Securities Corp., Home Equity Loan, Ser. 2003-KS7, Class AIIB(a) | | Aaa | | 5.71% | | 9/25/33 | | $ | 1,533 | | $ | 1,535,143 |
Residential Asset Securities Corp., Home Equity Loan, Ser. 2005-EMX5, Class A3(a) | | Aaa | | 5.72 | | 12/25/35 | | | 4,200 | | | 4,205,150 |
Residential Asset Securities Corp., Home Equity Loan, Ser. 2006-KS3, Class M2(a) | | Aa2 | | 5.73 | | 4/25/36 | | | 4,500 | | | 4,506,662 |
Residential Asset Securities Corp., Home Equity Loan, Ser. 2002-KS7, Class A2(a) | | Aaa | | 5.76 | | 11/25/32 | | | 1,434 | | | 1,434,805 |
Residential Funding Mortgage Securities, Home Equity Loan, Ser. 2005-HS2, Class AII(a) | | Aaa | | 5.57 | | 12/25/35 | | | 6,854 | | | 6,857,489 |
Residential Funding Mortgage Securities, Home Equity Loan, Ser. 2006-HSA4, Class A(a) | | Aaa | | 5.54 | | 7/25/36 | | | 15,000 | | | 14,999,999 |
Securitized Asset Backed Receivables LLC Trust, Ser. 2006-FR3, Class A3(a) | | Aaa | | 5.64 | | 5/25/36 | | | 5,000 | | | 5,000,000 |
Sky Financial Medical Loan Securitization, Ser. 2001-A, Class A2, 144A | | Aaa | | 6.95 | | 12/15/11 | | | 4,999 | | | 5,037,925 |
Specialty Underwriting & Residential Finance, Home Equity Loan, Ser. 2005-BC4, Class A2C(a) | | Aaa | | 5.74 | | 9/25/36 | | | 4,000 | | | 4,017,679 |
Structured Asset Securities Corp., Home Equity Loan, Ser. 2005-WF4, Class M2(a) | | Aa2 | | 5.82 | | 11/25/35 | | | 3,500 | | | 3,517,050 |
Structured Asset Securities Corp., Home Equity Loan, Ser. 2006-0W1, Class A3(a) | | AAA(e) | | 5.55 | | 12/25/35 | | | 4,000 | | | 4,000,000 |
Structured Asset Securities Corp., Home Equity Loan, Ser. 2006-0W1, Class A4, 144A(a) | | AAA(e) | | 5.59 | | 12/25/35 | | | 9,000 | | | 9,000,000 |
SVO Timeshare Mortgage Corp., Ser. 2001-AA, Class A, 144A | | Aaa | | 5.47 | | 10/20/13 | | | 1,334 | | | 1,328,149 |
Tal Advantage, LLC Ser. 2006-1, A | | Aaa | | 5.46 | | 4/20/21 | | | 9,750 | | | 9,750,000 |
| | | | | | | | | | | |
|
|
Total asset backed securities (cost $452,642,625) | | | | | | | | | | | | 453,055,176 |
| | | | | | | | | | | |
|
|
See Notes to Financial Statements.
| | |
| 18 | | Visit our website at www.jennisondryden.com |
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
COMMERCIAL MORTGAGE BACKED SECURITIES 3.0% | | | | | | | | |
Bank of America Large Loan, Ser. 2005-MIB1, Class A1 | | Aaa | | 5.52% | | 8/15/07 | | $ | 4,080 | | $ | 4,079,652 |
Bank of America Large Loan, Ser. 2006-LAQ, Class A1, 144A(a) | | Aaa | | 5.51 | | 2/9/21 | | | 11,000 | | | 11,039,061 |
Bear Stearns Commercial Mortgage Securities, Ser. 2006-BBA7, Class A1, 144A(a) | | Aaa | | 5.48 | | 3/15/19 | | | 7,000 | | | 6,999,900 |
Commercial Mortgage Pass Through Cert., Ser 2006-CNL2, Class A2FL | | AAA(e) | | 5.55 | | 2/5/19 | | | 3,000 | | | 3,005,995 |
JP Morgan Chase Commercial Mortgage, Ser. 2006-FL1A, Class A1A(a) | | Aaa | | 5.46 | | 2/15/20 | | | 9,891 | | | 9,892,470 |
| | | | | | | | | | | |
|
|
Total commercial mortgage backed securities
(cost $34,970,471) | | | | | | | | | | | | 35,017,078 |
| | | | | | | | | | | |
|
|
CORPORATE BONDS 24.6% | | | | | | | | | | | | |
| | | | | |
Banking 3.9% | | | | | | | | | | | | |
BBVA US Senior SA Uniper, Gtd., Notes, 144A(a) | | Aa2 | | 5.58 | | 4/17/09 | | | 10,000 | | | 10,001,860 |
Citigroup, Inc., Notes(a) | | Aa1 | | 5.42 | | 6/9/09 | | | 2,070 | | | 2,075,223 |
HBOS Treasury Services PLC, Notes, M.T.N., 144A | | Aa2 | | 5.55 | | 7/17/09 | | | 15,000 | | | 14,997,525 |
HSBC Finance Corp., Notes, M.T.N.(a) | | Aa3 | | 5.41 | | 12/5/08 | | | 3,000 | | | 3,007,236 |
HSBC Finance Corp., Notes | | Aa3 | | 5.45 | | 11/16/09 | | | 10,370 | | | 10,424,816 |
J.P. Morgan Chase & Co., Notes, M.T.N.(a) | | Aa3 | | 5.32 | | 6/2/08 | | | 4,000 | | | 4,004,060 |
| | | | | | | | | | | |
|
|
| | | | | | | | | | | | | 44,510,720 |
| | | | | |
Brokerage 4.5% | | | | | | | | | | | | |
Goldman Sachs Group, Inc., M.T.N.(a) | | Aa3 | | 5.89 | | 3/28/08 | | | 5,000 | | | 5,026,175 |
Lehman Brothers Holdings Inc., Notes, M.T.N.(a) | | A1 | | 5.41 | | 11/10/09 | | | 16,900 | | | 16,969,864 |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Short-Term Bond Series | | 19 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
Merrill Lynch & Co. Inc., Notes, M.T.N.(a) | | Aa3 | | 5.54% | | 9/9/09 | | $ | 10,000 | | $ | 10,042,220 |
Merrill Lynch & Co., Sr. Unsec’d. Notes, M.T.N.(a) | | Aa3 | | 5.58 | | 1/30/09 | | | 6,000 | | | 6,003,426 |
Morgan Stanley, Notes, M.T.N.(a) | | Aa3 | | 5.28 | | 2/9/09 | | | 15,000 | | | 15,022,785 |
| | | | | | | | | | | |
|
|
| | | | | | | | | | | | | 53,064,470 |
| | | |
Building Materials & Construction 1.3% | | | | | | | | |
Centex Corp., M.T.N. | | Baa2 | | 5.40 | | 8/1/07 | | | 15,000 | | | 15,011,445 |
| | | | | |
Cable 0.9% | | | | | | | | | | | | |
Comcast Corp. | | Baa2 | | 5.80 | | 7/14/09 | | | 10,000 | | | 10,012,330 |
| | | | | |
Capital Goods 1.4% | | | | | | | | | | | | |
Caterpillar Financial Services, Notes, M.T.N.(a) | | A2 | | 5.37 | | 3/10/09 | | | 5,000 | | | 5,002,485 |
Erac USA Finance Co., Notes, 144A(a) | | Baal | | 5.74 | | 4/30/09 | | | 7,000 | | | 7,007,063 |
United Technologies Corp., Notes(a) | | A2 | | 5.28 | | 6/1/09 | | | 5,000 | | | 4,999,660 |
| | | | | | | | | | | |
|
|
| | | | | | | | | | | | | 17,009,208 |
| | | | | |
Foods 0.8% | | | | | | | | | | | | |
Sabmiller PLC, Notes, 144A(a) | | Baa1 | | 5.78 | | 7/1/09 | | | 10,000 | | | 9,997,230 |
| | | | | |
Health Care Insurance 1.4% | | | | | | | | | | | | |
United Health Group, Inc., Unsec’d. Notes(a) | | A2 | | 5.32 | | 3/2/09 | | | 16,000 | | | 15,974,464 |
| | | | | |
Insurance 0.8% | | | | | | | | | | | | |
Lincoln National Corp., Sr. Unsec’d. Notes(a) | | A3 | | 5.59 | | 4/6/09 | | | 10,000 | | | 10,002,680 |
| | | | | |
Media & Entertainment 0.5% | | | | | | | | | | | | |
Gannett Co. Inc., Unsec’d, Notes(a) | | A2 | | 5.41 | | 5/26/09 | | | 6,000 | | | 6,003,216 |
| | | | | |
Non-Captive Finance 5.5% | | | | | | | | | | | | |
American Express Credit Corp., M.T.N.(a) | | Aa3 | | 5.43 | | 5/19/09 | | | 8,000 | | | 7,999,064 |
Citigroup Inc., Notes(a) | | A2 | | 5.55 | | 12/19/08 | | | 5,000 | | | 5,008,395 |
Countrywide Financial Corp., M.T.N. | | A3 | | 5.35 | | 12/5/06 | | | 1,700 | | | 1,699,859 |
See Notes to Financial Statements.
| | |
| 20 | | Visit our website at www.jennisondryden.com |
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
General Electric Capital Corp., M.T.N.(a) | | Aaa | | 5.30% | | 2/2/09 | | $ | 8,300 | | $ | 8,322,053 |
International Lease Finance Corp., M.T.N.(a) | | A1 | | 5.91 | | 1/15/10 | | | 17,000 | | | 17,093,483 |
SLM Corp., Notes, M.T N.(a) | | A2 | | 5.69 | | 1/26/09 | | | 4,000 | | | 4,012,964 |
SLM Corp., Notes, M.T.N.(a) | | A2 | | 5.63 | | 7/25/09 | | | 20,000 | | | 20,011,240 |
| | | | | | | | | | | |
|
|
| | | | | | | | | | | | | 64,147,058 |
| | | |
Oil & Gas Equipment & Services 0.9% | | | | | | | | |
Conocophilips Australia Funding Co., Notes(a) | | A1 | | 5.61 | | 4/9/09 | | | 10,000 | | | 10,011,280 |
| | | |
Technology—Software/Services 1.8% | | | | | | | | |
Cisco Systems Inc., Notes(a) | | A1 | | 5.27 | | 2/20/09 | | | 6,000 | | | 6,008,232 |
Hewlett Packard Co., Sr. Unsec’d, Notes(a) | | A3 | | 5.34 | | 5/22/09 | | | 10,000 | | | 10,005,090 |
Oracle Corp., Notes(a) | | A3 | | 5.73 | | 1/13/09 | | | 5,000 | | | 5,004,545 |
| | | | | | | | | | | |
|
|
| | | | | | | | | | | | | 21,017,867 |
| | | | |
Telecommunications—Cellular 0.9% | | | | | | | | | | |
Telefonica Emisiones SAU, Notes | | Baa1 | | 5.71 | | 6/19/09 | | | 10,000 | | | 10,007,810 |
| | | | | | | | | | | |
|
|
Total corporate bonds
(cost $286,692,766) | | | | | | | | | | | | 286,769,778 |
| | | | | | | | | | | |
|
|
| | | |
U.S. GOVERNMENT AGENCY OBLIGATIONS 0.6% | | | | | | | | |
Federal National Mortgage Association, Ser. 2006-5, Class 3A1
(cost $7,042,683) | | AAA | | 5.45 | | 11/25/24 | | | 7,043 | | | 7,022,434 |
| | | | | | | | | | | |
|
|
Total long-term investments
(cost $781,348,545) | | | | | | | | | | | | 781,864,466 |
| | | | | | | | | | | |
|
|
SHORT-TERM INVESTMENTS 36.3% | | | | | | | | | | |
| | | | |
CERTIFICATES OF DEPOSIT 0.4% | | | | | | | | | | |
| | | | | |
Bank 0.4% | | | | | | | | | | | | |
Washington Mutual Bank
(cost $4,998,955) | | A2 | | 5.53 | | 4/18/08 | | | 5,000 | | | 5,000,000 |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Short-Term Bond Series | | 21 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
| | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) |
| | | | | | | | | | | | | |
COMMERCIAL PAPER 17.9%(b) | | | | | | | | | | |
Computer Sciences Corp., 144A | | P-2 | | 5.36% | | 8/7/06 | | $ | 14,918 | | $ | 14,902,453 |
CVS Corp., 144A | | P-2 | | 5.39 | | 8/10/06 | | | 25,000 | | | 24,962,569 |
Fortune Brands, 144A | | P-2 | | 5.44 | | 9/18/06 | | | 20,000 | | | 19,851,911 |
Gannett, 144A | | P-1 | | 5.25 | | 8/8/06 | | | 15,000 | | | 14,982,500 |
ITT Industries, Inc., 144A | | P-2 | | 5.47 | | 9/22/06 | | | 14,100 | | | 13,986,452 |
Rockies Express Pipeline, 144A | | P-2 | | 5.68 | | 9/26/06 | | | 6,500 | | | 6,441,543 |
Time Warner Cable, Inc., 144A | | P-2 | | 5.39 | | 8/10/06 | | | 25,000 | | | 24,962,569 |
Verizon Communications, 144A | | P-2 | | 5.42 | | 8/16/06 | | | 19,000 | | | 18,954,231 |
Vodafone Airtouch PLC, 144A | | P-2 | | 5.50 | | 11/20/06 | | | 20,000 | | | 19,653,000 |
Walt Disney | | P-2 | | 5.36 | | 8/08/06 | | | 200 | | | 199,762 |
Wellpoint, Inc., 144A | | P-2 | | 5.42 | | 8/17/06 | | | 30,000 | | | 29,923,217 |
Wisconsin Energy Corp., 144A | | P-2 | | 5.42 | | 8/18/06 | | | 20,000 | | | 19,945,800 |
| | | | | | | | | | | |
|
|
Total commercial paper
(cost $208,802,343) | | | | | | | | | | | | 208,766,007 |
| | | | | | | | | | | |
|
|
CORPORATE BONDS 4.2% | | | | | | | | | | | | |
| | | | | |
Capital Goods 1.2% | | | | | | | | | | | | |
Erac USA Finance Co., 144A | | Baa1 | | 6.75 | | 5/15/07 | | | 13,545 | | | 13,608,810 |
| | | | | |
Electrical Utilities 0.4% | | | | | | | | | | | | |
Dominion Resources Inc., Sr. Notes | | Baa2 | | 3.66 | | 11/15/06 | | | 5,000 | | | 4,972,650 |
| | | | | |
Foods 1.3% | | | | | | | | | | | | |
General Mills Inc., Notes | | Baa2 | | 5.13 | | 2/15/07 | | | 15,200 | | | 15,164,174 |
| | | | |
Telecommunications—Cellular 0.4% | | | | | | | | | | |
Verizon Wireless, Capital LLC, Notes | | A2 | | 5.38 | | 12/15/06 | | | 5,000 | | | 4,998,910 |
| | | | | |
Wireless 0.9% | | | | | | | | | | | | |
Vodafone Group PLC(a) | | A3 | | 5.56 | | 6/29/07 | | | 10,000 | | | 9,997,920 |
| | | | | | | | | | | |
|
|
Total corporate bonds
(cost $48,773,830) | | | | | | | | | | | | 48,742,464 |
| | | | | | | | | | | |
|
|
LOAN PARTICIPATIONS 13.8% | | | | | | | | | | |
Camden Property Trust(c) | | NR | | 5.45 | | 8/18/06 | | | 10,000 | | | 10,000,000 |
Duke Realty Corporation(c) | | NR | | 5.42 | | 8/9/06 | | | 25,000 | | | 25,000,000 |
ERP Operating Limited Partnership | | NR | | 5.43 | | 8/3/06 | | | 14,000 | | | 14,000,000 |
See Notes to Financial Statements.
| | |
| 22 | | Visit our website at www.jennisondryden.com |
| | | | | | | | | | | | | |
| Description | | Moody’s
Rating* | | Interest
Rate | | Maturity
Date | | Principal
Amount (000) | | Value (Note 1) | |
| | | | | | | | | | | | | | |
ERP Operating Limited Partnership(c) | | NR | | 5.46% | | 8/24/06 | | $ | 13,000 | | $ | 13,000,000 | |
Holland America Cruise Lines(c) | | NR | | 5.41 | | 8/11/06 | | | 12,000 | | | 12,000,000 | |
Mack Cali Realty Corp. | | NR | | 5.41 | | 8/4/06 | | | 6,000 | | | 6,000,000 | |
Murphy Oil Corporation | | NR | | 5.45 | | 8/1/06 | | | 39,180 | | | 39,180,000 | |
New Plan Excel Realty Trust Inc.(c) | | NR | | 5.45 | | 8/16/06 | | | 15,000 | | | 15,000,000 | |
Simon Property Group Inc.(c) | | NR | | 5.45 | | 8/15/06 | | | 15,000 | | | 15,000,000 | |
Thermo Electron Corp.(c) | | NR | | 5.44 | | 8/8/06 | | | 12,050 | | | 12,050,000 | |
| | | | | | | | | | | |
|
|
|
Total loan participations
(cost $161,230,000) | | | | | | | | | | | | 161,230,000 | |
| | | | | | | | | | | |
|
|
|
Total short-term investments
(cost $423,805,128) | | | | | | | | | | | | 423,738,471 | |
| | | | | | | | | | | |
|
|
|
Total Investments 103.4%
(cost $1,205,153,673)(d) | | | | | | | | | | | | 1,205,602,937 | |
Liabilities in excess of other assets (3.4)% | | | | | | | | | | | | (39,541,423 | ) |
| | | | | | | | | | | |
|
|
|
Net Assets 100.0% | | | | | | | | | | | $ | 1,166,061,514 | |
| | | | | | | | | | | |
|
|
|
The following abbreviations are used in the portfolio descriptions:
LLC—Limited Liability Company
M.T.N—Medium Term Note
144A—Security was purchased pursuant to Rule 144A under the Securities Act of 1933 and may not resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.
| * | The Fund’s current prospectus contains a description of Moody’s and Standard & Poor’s ratings. |
| (a) | Floating rate bond. The coupon is indexed to a floating interest rate. The rate shown is the rate at period end. |
| (b) | Rate quoted represents yield-to-maturity as of purchase date. |
| (c) | Indicates a security that has been deemed illiquid. |
| (d) | The cost basis for federal income tax purposes is substantially the same as that used for financial statements purposes. |
| (e) | Standard & Poor’s Rating. |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Short-Term Bond Series | | 23 |
Portfolio of Investments
as of July 31, 2006 (Unaudited) Cont’d.
The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of July 31,2006 was as follows:
| | | |
Asset Backed Securities | | 38.9 | % |
Commercial Paper | | 17.9 | |
Loan Participations | | 13.8 | |
Non-Captive Finance | | 5.5 | |
Brokerage | | 4.5 | |
Banking | | 3.9 | |
Commercial Mortgage Backed Securities | | 3.0 | |
Capital Goods | | 2.6 | |
Foods | | 2.1 | |
Technology-Software/Services | | 1.8 | |
Health Care Insurance | | 1.4 | |
Building Materials & Construction | | 1.3 | |
Telecommunications—Cellular | | 1.3 | |
Cable | | 0.9 | |
Oil & Gas Equipment & Services | | 0.9 | |
Wireless | | 0.9 | |
Insurance | | 0.8 | |
U.S. Government Agency Obligations | | 0.6 | |
Media & Entertainment | | 0.5 | |
Electrical Utilities | | 0.4 | |
Certificates of Deposit | | 0.4 | |
| | |
|
|
| | | 103.4 | |
Liabilities in excess of other assets | | (3.4 | ) |
| | |
|
|
| | | 100.0 | % |
| | |
|
|
See Notes to Financial Statements.
| | |
| 24 | | Visit our website at www.jennisondryden.com |
Statement of Assets and Liabilities
as of July 31, 2006 (Unaudited)
| | | | |
Assets | | | | |
Unaffiliated investments, at value (cost $1,205,153,673) | | $ | 1,205,602,937 | |
Cash | | | 19,324 | |
Interest receivable | | | 3,839,766 | |
| | |
|
|
|
Total assets | | | 1,209,462,027 | |
| | |
|
|
|
| |
Liabilities | | | | |
Payable for investments purchased | | | 41,946,148 | |
Dividend payable | | | 1,336,458 | |
Accrued expenses | | | 82,366 | |
Transfer agent fee payable | | | 25,000 | |
Management fee payable | | | 10,541 | |
| | |
|
|
|
Total liabilities | | | 43,400,513 | |
| | |
|
|
|
| |
Net Assets | | $ | 1,166,061,514 | |
| | |
|
|
|
| | | | | |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 116,507 | |
Paid-in capital in excess of par | | | 1,165,560,440 | |
| | |
|
|
|
| | | | 1,165,676,947 | |
Distribution in excess of income | | | (27,205 | ) |
Accumulated net realized loss on investments | | | (37,492 | ) |
Net unrealized appreciation on investments | | | 449,264 | |
| | |
|
|
|
Net assets, July 31, 2006 | | $ | 1,166,061,514 | |
| | |
|
|
|
Net asset value, offering price and redemption price per share ($1,166,061,514 ÷ 116,506,792 shares of $.001 par value common stock issued and outstanding) | | | $10.01 | |
| | |
|
|
|
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Short-Term Bond Series | | 25 |
Statement of Operations
Six Months Ended July 31, 2006 (Unaudited)
| | | | |
Net Investment Income | | | | |
Income | | | | |
Unaffiliated Interest | | $ | 15,190,188 | |
| | |
|
|
|
| |
Expenses | | | | |
Management fee | | | 143,887 | |
Transfer agent’s fees and expenses (including affiliated expense of $50,000) | | | 50,000 | |
Custodian’s fees and expenses | | | 37,000 | |
Legal fees and expenses | | | 17,000 | |
Audit fee | | | 8,000 | |
Miscellaneous | | | 13,284 | |
| | |
|
|
|
Total expenses | | | 269,171 | |
Less: expense waiver (Note 2) | | | (100,720 | ) |
| | |
|
|
|
Net expenses | | | 168,451 | |
| | |
|
|
|
Net investment income | | | 15,021,737 | |
| | |
|
|
|
| |
Net Realized And Unrealized Gain (Loss) On Investments | | | | |
Net realized loss on investment transactions | | | (51,805 | ) |
Net change in unrealized appreciation on investments | | | 415,503 | |
| | |
|
|
|
Net gain on investments | | | 363,698 | |
| | |
|
|
|
Net Increase In Net Assets Resulting From Operations | | $ | 15,385,435 | |
| | |
|
|
|
See Notes to Financial Statements.
| | |
| 26 | | Visit our website at www.jennisondryden.com |
Statement of Changes in Net Assets
(Unaudited)
| | | | | | | | |
| | | Six Months Ended July 31, 2006 | | | November 7, 2005(a) through January 31, 2006 | |
Increase In Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income | | $ | 15,021,737 | | | $ | 4,371,856 | |
Net realized gain (loss) on investment transactions | | | (51,805 | ) | | | 16,830 | |
Net change in unrealized appreciation on investments | | | 415,503 | | | | 33,761 | |
| | |
|
|
| |
|
|
|
Net increase in net assets resulting from operations | | | 15,385,435 | | | | 4,422,447 | |
| | |
|
|
| |
|
|
|
Dividends from net investment income (Note 1) | | | (15,048,942 | ) | | | (4,374,373 | ) |
| | |
|
|
| |
|
|
|
| | |
Series share transactions | | | | | | | | |
Net proceeds from shares subscribed | | | 1,191,000,000 | | | | 671,003,446 | |
Net asset value of shares issued to shareholders in reinvestment of dividends | | | 14,164,677 | | | | 3,924,728 | |
Cost of shares reacquired | | | (483,400,394 | ) | | | (231,015,510 | ) |
| | |
|
|
| |
|
|
|
Net increase in net assets from Series share transactions | | | 721,764,283 | | | | 443,912,664 | |
| | |
|
|
| |
|
|
|
Total increase | | | 722,100,776 | | | | 443,960,738 | |
| | |
Net Assets | | | | | | | | |
Beginning of period | | | 443,960,738 | | | | — | |
| | |
|
|
| |
|
|
|
End of period | | $ | 1,166,061,514 | | | $ | 443,960,738 | |
| | |
|
|
| |
|
|
|
| (a) | Commencement of investment operations. |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund/Short-Term Bond Series | | 27 |
Notes to Financial Statements
(Unaudited)
Dryden Core Investment Fund (the “Fund”), is registered under the Investment Company Act of 1940 as an open-end, diversified management investment company.
The Fund consists of six series—the Taxable Money Market Series, the Short-Term Bond Series, the Short-Term Municipal Bond Series, the National Municipal Money Market Series, the Government Money Market Series and the Treasury Money Market Series. The Short-Term Municipal Bond Series, the National Municipal Money Market Series, the Government Money Market Series and the Treasury Money Market Series have not yet commenced operations. The Taxable Money Market Series and the Short-Term Bond Series commenced investment operations on April 23, 1999 and November 7, 2005, respectively.
The investment objective of the Money Market Series is current income consistent with the preservation of capital and the maintenance of liquidity. The Money Market Series invests primarily in money market instruments maturing in 13 months or less whose ratings are within the two highest short-term ratings categories by a nationally recognized statistical rating organization or, if not rated, are of comparable quality as determined by the Money Market Series’ investment advisors. The ability of the issuers of the securities held by the Money Market Series to meet their obligations may be affected by economic developments in a specific industry or region.
The investment objective of the Short-Term Bond Series is high current income consistent with the preservation of principal. Under normal circumstances, the Short-Term Bond Series will invest at least 80% of its investable assets in debt obligations with maturities of three years or less. These debt obligations will include money market obligations, bonds and other fixed income debt obligations such as U.S. Government securities (including U.S. Treasury bills, notes and bonds), mortgage-backed securities, asset-backed securities, foreign securities and other short-term debt obligations. The ability of issuers of debt securities held by the Portfolio to meet their obligations may be affected by economic developments in a specific industry or region.
Shares of the Money Market Series and the Short-Term Bond Series are available only to investment companies managed by Prudential Investments LLC (“PI”) and certain investment advisory clients of the subadvisor. At January 31, 2006, 100% of the shares outstanding were owned by such entities.
| | |
| 28 | | Visit our website at www.jennisondryden.com |
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the Series, in the preparation of its financial statements.
Securities Valuation: The Money Market Series values portfolio securities 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. If the amortized cost method is determined not to represent fair value, the value shall be determined by or under the direction of the Board of Directors. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadvisor, to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Prices may be obtained from independent pricing services which use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities for which reliable market quotations are not readily available, or for which the pricing service does not provide a valuation methodology, or does not present fair value, are valued at fair value in accordance with Board of Director’s approved fair valuation procedures. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values. For the Short-Term Bond Series, short-term securities which mature in more than sixty days are valued at current market quotations. Short-term securities which mature in sixty days or less are valued at amortized cost, which approximates market value.
The Money Market Series may hold up to 10% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). The Short-Term Bond Series may hold up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). The restricted securities held by the Series at January 31, 2006 include registration rights under which the Series may demand registration by the issuer. Restricted securities, sometimes referred to as private placements, are valued pursuant to the valuation procedures noted above.
Repurchase Agreements: In connection with transactions in repurchase agreements with U.S. financial institutions, it is the Series’ policy that its custodian or designated subcustodians, as the case may be under triparty repurchase agreements, takes
| | |
| Dryden Core Investment Fund | | 29 |
Notes to Financial Statements
(Unaudited) Cont’d
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 agreement 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: Securities transactions are recorded on the trade date. Realized gains (losses) on sales of securities are calculated on the identified cost basis. Interest income, including amortization of premium and accretion of discount and debt securities as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis.
Federal Income Taxes: For federal income tax purposes, each series in the Fund is treated as a separate taxpaying entity. It is the Money Market Series and the Short-Term Bond Series’ policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.
Dividends and Distributions: The Money Market Series declares all of its net investment income and net realized short-term capital gains or losses, if any, as dividends daily to its shareholders of record at the time of such declaration. The Short-Term Bond Series declares all of its net investment income as dividends daily to its shareholders of record at the time of such declaration. Payment of dividends is made monthly. Income distributions and capital gain distributions are determined in accordance with federal income tax regulations which differ from generally accepted accounting principles
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
| | |
| 30 | | Visit our website at www.jennisondryden.com |
Note 2. Agreements
The Series has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. (“PIM”). The subadvisory agreement provides that PIM will furnish investment advisory services in connection with the management of the Series. In connection therewith, PIM is obligated to keep certain books and records of the Series. PI pays for the services of PIM, the cost of compensation of officers of the Series, occupancy and certain clerical and bookkeeping costs of the Series. The Series bears all other costs and expenses.
For its services, PI will be reimbursed for its direct costs, exclusive of any profit or overhead. The costs are accrued daily payable monthly. For the six months ended July 31, 2006, the costs were at an effective annual rate of .015% of the Money Market Series’ and 0.05% for the Short-Term Bond Series.
PI and PIM are indirect, wholly owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
Note 3. Other Transactions with Affiliates
Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect wholly-owned subsidiary of Prudential, serves as the Series’ transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
Note 4. Portfolio Securities
The Short-Term Bond Series’ purchases and sales of investment securities, other than short-term investments, for the six months ended July 31, 2006, aggregated $586,961,120 and $75,965,492, respectively.
Note 5. Distributions and Tax Information
As of January 31, 2006, for federal income tax purposes, Taxable Money Market Series had a capital loss carryforward of approximately $100,200 which expires in 2014. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such amounts. In addition, the Taxable Money Market Series elected to treat post-October capital losses
| | |
| Dryden Core Investment Fund | | 31 |
Notes to Financial Statements
(Unaudited) Cont’d
of approximately $1,800 incurred in the three month period ended January 31, 2006 as having been incurred in the following fiscal year.
Note 6. Capital
| | | | | | | | | | | | | | |
| | | Taxable Money Market Series
| | | Short-Term Bond Series*
| |
| | | Shares
| | | Amount
| | | Shares
| | | Amount
| |
Six months ended July 31, 2006: | | | | | | | | | | | | | | |
Shares sold | | 62,271,645,316 | | | $ | 62,271,645,316 | | | 119,012,987 | | | $ | 1,191,000,000 | |
Shares issued in reinvestment of distributions | | 266,544,478 | | | | 266,544,478 | | | 1,415,665 | | | | 14,164,677 | |
Shares reacquired | | (62,448,950,327 | ) | | | (62,448,950.327 | ) | | (48,313,126 | ) | | | (483,400,394 | ) |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Net increase (decrease) in shares outstanding | | 89,239,467 | | | $ | 89,239,467 | | | 72,115,526 | | | $ | 721,764,283 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Period or fiscal year ended January 31, 2006: | | | | | | | | | | | | | | |
Shares sold | | 107,293,543,359 | | | $ | 107,293,543,359 | | | 67,100,344 | | | $ | 671,003,446 | |
Shares issued in reinvestment of distributions | | 409,944,391 | | | | 409,944,391 | | | 392,473 | | | | 3,924,728 | |
Shares reacquired | | (105,188,887,557 | ) | | | (105,188,887,557 | ) | | (23,101,551 | ) | | | (231,015,510 | ) |
| | |
|
| |
|
|
| |
|
| |
|
|
|
Net increase (decrease) in shares outstanding | | 2,514,600,193 | | | $ | 2,514,600,193 | | | 44,391,266 | | | $ | 443,912,664 | |
| | |
|
| |
|
|
| |
|
| |
|
|
|
| * | Commenced operations on 11/7/05. |
| | |
| 32 | | Visit our website at www.jennisondryden.com |
Financial Highlights
(Unaudited)
| | |
| JULY 31, 2006 | | SEMIANNUAL REPORT |
Dryden Core Investment Fund
Financial Highlights
(Unaudited)
| | | | |
| | | Taxable Money
Market Series
| |
| | | Six Months Ended
July 31, 2006 | |
Per Share Operating Performance: | | | | |
Net Asset Value, Beginning Of Period | | $ | 1.00 | |
| | |
|
|
|
Net investment income and net realized gains | | | .02 | |
Dividends and distributions to shareholders | | | (.02 | ) |
| | |
|
|
|
Net asset value, end of period | | $ | 1.00 | |
| | |
|
|
|
Total Return(a): | | | 2.43 | % |
Ratios/Supplemental Data: | | | | |
Net assets, end of period (000) | | $ | 14,528,592 | |
Average net assets (000) | | $ | 15,002,291 | |
Ratios to average net assets: | | | | |
Expenses | | | .02 | %(b) |
Net investment income | | | 4.87 | %(b) |
| (a) | Total investment 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 periods of less than a full year are not annualized. |
See Notes to Financial Statements.
| | |
| 34 | | Visit our website at www.jennisondryden.com |
| | | | | | | | | | | | | | | | | | |
Taxable Money Market Series | |
| Year Ended January 31, | |
| 2006 | | | 2005 | | | 2004 | | | 2003 | | | 2002 | |
| | | | | | | | | | | | | | | | | | | |
| $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | .03 | | | | .02 | | | | .01 | | | | .02 | | | | .04 | |
| | (.03 | ) | | | (.02 | ) | | | (.01 | ) | | | (.02 | ) | | | (.04 | ) |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | | | $ | 1.00 | |
|
|
| |
|
|
| |
|
|
| |
|
|
| |
|
|
|
| | 3.46 | % | | | 1.50 | % | | | 1.20 | % | | | 1.85 | % | | | 4.12 | % |
| | | | | | | | | | | | | | | | | | | |
| $ | 14,439,643 | | | $ | 11,924,742 | | | $ | 12,769,580 | | | $ | 7,053,923 | | | $ | 6,724,703 | |
| $ | 11,936,264 | | | $ | 13,091,919 | | | $ | 8,669,076 | | | $ | 7,105,089 | | | $ | 5,289,046 | |
| | | | | | | | | | | | | | | | | | | |
| | .02 | % | | | .02 | % | | | .03 | % | | | .03 | % | | | .03 | % |
| | 3.50 | % | | | 1.50 | % | | | 1.20 | % | | | 1.84 | % | | | 3.66 | % |
See Notes to Financial Statements.
| | |
| Dryden Core Investment Fund | | 35 |
Financial Highlights
(Unaudited) Cont’d
| | | | | | | | |
| | | Short-Term Bond Series
| |
| | | Six Months Ended
July 31, 2006 | | | November 7, 2005(a) through January 31, 2006 | |
Per Share Operating Performance: | | | | | | | | |
Net Asset Value, Beginning of Period | | $ | 10.00 | | | $ | 10.00 | |
| | |
|
|
| |
|
|
|
Income from investment operations: | | | | | | | | |
Net investment income | | | .26 | | | | .10 | |
Net realized and unrealized gain on investment transactions | | | .01 | | | | — | (b) |
| | |
|
|
| |
|
|
|
Total from investment operations | | | .27 | | | | .10 | |
| | |
|
|
| |
|
|
|
Less Dividends | | | | | | | | |
Dividends from net investment income | | | (.26 | ) | | | (.10 | ) |
| | |
|
|
| |
|
|
|
Net asset value, end of period | | $ | 10.01 | | | $ | 10.00 | |
| | |
|
|
| |
|
|
|
Total Return(c): | | | 2.66 | % | | | .95 | % |
Ratios/Supplemental Data: | | | | | | | | |
Net assets, end of period (000) | | $ | 1,166,062 | | | $ | 443,961 | |
Average net assets (000) | | $ | 580,328 | | | $ | 415,749 | |
Ratios to average net assets: | | | | | | | | |
Expenses | | | .06 | %(d)(e) | | | .08 | %(d)(e) |
Net investment income | | | 5.22 | %(d)(e) | | | 4.47 | %(d)(e) |
Portfolio turnover rate | | | 16 | %(f) | | | 7 | %(f) |
| (a) | Commencement of investment operations. |
| (b) | Amount represents less than $.005 per share. |
| (c) | Total return is calculated assuming purchase of a share 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 periods of less than a full year are not annualized. |
| (d) | The Manager of the Fund has agreed to reimburse the Fund in order to limit operating expenses (excluding interest, taxes, and brokerage commissions). The Manager will reimburse the Fund .035% of average daily net assets. If the Manager had not reimbursed the Series, the expenses and the net investment income ratios would have been .09% and 5.18%, respectively, for the six months ended July 31, 2006 and .11% and 4.43%, respectively, for the period November 7, 2005 (commencement of investment operations) through January 31, 2006 |
See Notes to Financial Statements.
| | |
| 36 | | Visit our website at www.jennisondryden.com |
Approval of Advisory Agreements
The Board of Trustees (the “Board”) of Dryden Core Investment Fund (the “Trust”) oversees the management of the Taxable Money Market Series and the Short-Term Bond Series (each a “Fund,” and collectively, the “Funds”), each of which are series of the Trust, and, as required by law, determines annually whether to renew the Trust’s management agreement with Prudential Investments LLC (“PI”) and the Funds’ subadvisory agreements with Prudential Investment Management, Inc. (“PIM”). In considering the renewal of the agreements, the Board, including a majority of the Independent Trustees, met on June 7-8, 2006 and approved the renewal of the agreements through July 31, 2007, after concluding that renewal of the agreements was in the best interests of the Fund and its shareholders.
In advance of the meeting, the Board received materials relating to the agreements, and had the opportunity to ask questions and request further information in connection with their consideration. Among other things, the Board considered comparisons with other mutual funds in relevant Peer Universes and Peer Groups. The mutual funds included in each Peer Universe or Peer Group was objectively determined solely by Lipper Inc., an independent provider of mutual fund data. The comparisons placed the Fund in various quartiles over one-year, three-year and five-year time periods ending December 31, with the first quartile being the best 25% of the mutual funds (for performance, the best performing mutual funds and, for expenses, the lowest cost mutual funds).
In approving the agreements, the Board, including the Independent Trustees advised by independent legal counsel, considered the factors they deemed relevant, including the nature, quality and extent of services provided, the performance of the Fund, the profitability of PI and its affiliates, expenses and fees, and the potential for economies of scale that may be shared with the Fund and its shareholders. In their deliberations, the Trustees did not identify any single factor that was dispositive and each Trustee attributed different weights to the various factors. In connection with their deliberations, the Board considered information provided by PI throughout the year at regular Board meetings, presentations from portfolio managers and other information, as well as information furnished at or in advance of the meetings on June 7-8, 2006.
The Trustees determined that the overall arrangements between the Funds and PI, which serves as the Funds’ investment manager pursuant to a management agreement, and between PI and PIM, which serves as each Fund’s subadvisor pursuant to the terms of a subadvisory agreement with PI, are fair and reasonable in light of the services performed, fees charged and such other matters as the Trustees considered relevant in the exercise of their business judgment.
| | |
| Dryden Core Investment Fund | | |
Approval of Advisory Agreements (continued)
Several of the material factors and conclusions that formed the basis for the Trustees’ reaching their determinations to approve the continuance of the agreements are separately discussed below.
Nature, quality and extent of services
The Board received and considered information regarding the nature and extent of services provided to the Funds by PI and PIM. The Board considered the services provided by PI, including but not limited to the oversight of the subadvisors for the Funds, as well as the provision of fund recordkeeping, compliance, and other services to the Fund. With respect to PI’s oversight of the subadvisor, the Board noted that PI’s Strategic Investment Research Group (“SIRG”), which is a business unit of PI, is responsible for monitoring and reporting to PI’s senior management on the performance and operations of the subadvisor. The Board also considered that PI pays the salaries of all of the officers and non-independent Trustees of the Trust. The Board also considered the investment subadvisory services provided by PIM, which it noted had been selected by PI, as well as adherence to the Funds’ investment restrictions and compliance with applicable Fund policies and procedures.
The Board reviewed the qualifications, backgrounds and responsibilities of PI’s senior management responsible for the oversight of the Fund and PIM, and also reviewed the qualifications, backgrounds and responsibilities of PIM’s portfolio managers who are responsible for the day-to-day management of each Fund’s portfolio. The Board was provided with information pertaining to PI’s and PIM’s organizational structure, senior management, investment operations, and other relevant information pertaining to both PI and PIM. The Board also noted that it received favorable compliance reports from the Trust’s Chief Compliance Officer (CCO) as to both PI and PIM. The Board noted that PIM is affiliated with PI.
The Board concluded that it was satisfied with the nature, extent and quality of the investment management services provided by PI and the subadvisory services provided to the Funds by PIM, and that there was a reasonable basis on which to conclude that each Fund benefits from the services provided by PI and PIM under the management and subadvisory agreements.
| | |
| | | Visit our website at www.jennisondryden.com |
Performance of the Funds
The Board noted that because the Fund is not registered under the Securities Act of 1933, and is not available for investment by individual investors, the performance of the Funds was not a significant factor. However, the Board reviewed the performance of the Funds over one-year, three-year and five-year periods, as applicable, and concluded that each Fund’s performance was satisfactory.
Fees and Expenses
PI does not receive a fee for providing management services to the Funds, therefore this factor was not considered by the Board. The Funds operate at cost.
Costs of Services and Profits Realized by PI
The Funds are operated at cost by PI; therefore this factor was not considered.
Economies of Scale
The Board did not consider economies of scale, because the Funds do not incur management fees.
Other Benefits to PI and PIM
The Board did not consider this factor, because the Funds are operated at cost.
| | |
| Dryden Core Investment Fund | | |
| | | | |
| Item 2 | | – | | Code of Ethics – Not required, as this is not an annual filing. |
| | |
| Item 3 | | – | | Audit Committee Financial Expert – Not required, as this is not an annual filing. |
| | |
| Item 4 | | – | | Principal Accountant Fees and Services – Not required, as this is not an annual filing. |
| | |
| Item 5 | | – | | Audit Committee of Listed Registrants – Not applicable. |
| | |
| Item 6 | | – | | Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form. |
| | |
| Item 7 | | – | | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. |
| | |
| Item 8 | | – | | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. |
| | |
| Item 9 | | – | | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. |
| | |
| Item 10 | | – | | Submission of Matters to a Vote of Security Holders – Not applicable. |
| | |
| Item 11 | | – | | Controls and Procedures |
| | |
| | (a) | | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. |
| | |
| | (b) | | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
| | |
| Item 12 | | – | | Exhibits |
| | |
| | (a) | | (1) Code of Ethics – Not required, as this is not an annual filing. |
| | |
| | | | (2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT. |
| | |
| | | | (3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. |
| | |
| | (b) | | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| | |
| (Registrant) | | Dryden Core Investment Fund |
| |
| By (Signature and Title)* | | /s/ Deborah A. Docs |
| | Deborah A. Docs |
| | Secretary |
|
| Date September 25, 2006 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| | |
| By (Signature and Title)* | | /s/ Judy A. Rice |
| | Judy A. Rice |
| | President and Principal Executive Officer |
|
| Date September 25, 2006 |
| |
| By (Signature and Title)* | | /s/ Grace C. Torres |
| | Grace C. Torres |
| | Treasurer and Principal Financial Officer |
|
| Date September 25, 2006 |
| * | Print the name and title of each signing officer under his or her signature. |
