UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
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Investment Company Act file number: | | 811-03336 |
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Exact name of registrant as specified in charter: | | Prudential Jennison Blend Fund, Inc. |
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Address of principal executive offices: | | 655 Broad Street, 17th Floor |
| | Newark, New Jersey 07102 |
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Name and address of agent for service: | | Deborah A. Docs |
| | 655 Broad Street, 17th Floor |
| | Newark, New Jersey 07102 |
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Registrant’s telephone number, including area code: | | 800-225-1852 |
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Date of fiscal year end: | | 8/31/2016 |
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Date of reporting period: | | 2/29/2016 |
Item 1 – Reports to Stockholders
PRUDENTIAL INVESTMENTS, A PGIM BUSINESS | MUTUAL FUNDS
Prudential Jennison Blend Fund, Inc.
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SEMIANNUAL REPORT | | FEBRUARY 29, 2016 |
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To enroll in e-delivery, go to prudentialfunds.com/edelivery | |  |
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Objective: Long-term growth of capital |
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.
The accompanying financial statements as of February 29, 2016, were not audited and, accordingly, no auditor’s opinion is expressed on them.
Mutual funds are distributed by Prudential Investment Management Services LLC, member SIPC. Jennison Associates is a registered investment adviser. Both are Prudential Financial companies. © 2016 Prudential Financial, Inc. and its related entities. Jennison Associates, Jennison, the Prudential logo, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
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2 | | Visit our website at prudentialfunds.com |
Letter from the President
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Dear Shareholder:
We hope you find the semiannual report for the Prudential Jennison Blend Fund, Inc. informative and useful. The report covers performance for the six-month period that ended February 29, 2016.
Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.
Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. Keep in mind, however, that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.
Prudential Investments® is dedicated to helping you solve your toughest investment challenges—whether it’s capital growth, reliable income, or protection from market volatility and other risks. We offer the expertise of Prudential Financial’s affiliated asset managers that strive to be leaders in a broad range of funds to help you stay on course to the future you envision. They also manage money for major corporations and pension funds around the world, which means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.
Thank you for choosing the Prudential Investments family of funds.
Sincerely,
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Stuart S. Parker, President
Prudential Jennison Blend Fund, Inc.
April 15, 2016
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Prudential Jennison Blend Fund, Inc. | | | 3 | |
Your Fund’s Performance (unaudited)
Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852.
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Cumulative Total Returns (Without Sales Charges) as of 2/29/16 |
| | Six Months (%) | | One Year (%) | | Five Years (%) | | Ten Years (%) |
Class A | | –9.11 | | –13.04 | | 30.87 | | 59.18 |
Class B | | –9.45 | | –13.66 | | 26.37 | | 48.24 |
Class C | | –9.44 | | –13.65 | | 26.37 | | 48.32 |
Class Z | | –9.00 | | –12.81 | | 32.78 | | 63.85 |
Russell 3000® Index | | –2.68 | | –7.84 | | 58.22 | | 85.27 |
S&P 500 Index | | –0.93 | | –6.19 | | 61.92 | | 86.57 |
Lipper Multi-Cap Core Funds Average* | | –5.11 | | –10.64 | | 45.45 | | 68.28 |
Lipper Multi-Cap Growth Funds Average* | | –7.07 | | –10.67 | | 47.32 | | 79.99 |
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Average Annual Total Returns (With Sales Charges) as of 3/31/16 |
| | | | One Year (%) | | Five Years (%) | | Ten Years (%) |
Class A | | | | –12.21 | | 5.51 | | 4.71 |
Class B | | | | –11.83 | | 5.81 | | 4.55 |
Class C | | | | –8.55 | | 5.97 | | 4.56 |
Class Z | | | | –6.85 | | 7.03 | | 5.61 |
Russell 3000 Index | | | | –0.34 | | 11.01 | | 6.90 |
S&P 500 Index | | | | 1.78 | | 11.56 | | 7.00 |
Lipper Multi-Cap Core Funds Average* | | | | –3.87 | | 9.02 | | 5.80 |
Lipper Multi-Cap Growth Funds Average* | | | | –4.38 | | 9.11 | | 6.40 |
*The Fund is compared to the Lipper Multi-Cap Core Funds Average, although Lipper classifies the Fund in the Lipper Multi-Cap Growth Funds Performance Universe. The Lipper Multi-Cap Core Funds Performance Universe was utilized because the Fund’s manager believes that the funds included in the Universe provide a more appropriate basis for Fund performance comparisons.
Source: Prudential Investments LLC and Lipper Inc.
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4 | | Visit our website at prudentialfunds.com |
The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges which are described for each share class in the table below.
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| | Class A | | Class B* | | Class C | | Class Z |
Maximum initial sales charge | | 5.50% of the public offering price | | None | | None | | None |
Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption) | | 1% on sales of $1 million or more made within 12 months of purchase | | 5% (Yr. 1) 4% (Yr. 2) 3% (Yr. 3) 2% (Yr. 4) 1% (Yr. 5/6) 0% (Yr. 7) | | 1% on sales made within 12 months of purchase | | None |
Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets) | | .30% | | 1% | | 1% | | None |
*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.
Benchmark Definitions
Russell 3000 Index—The Russell 3000 Index is an unmanaged index which measures the performance of the 3,000 largest US companies representing approximately 98% of the investable US equity market. The Index is constructed to provide a comprehensive, unbiased, and stable barometer of the broad market and is reconstituted annually to ensure new and growing equities are included.
S&P 500 Index—The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of 502 stocks of large US public companies. It gives a broad look at how stock prices in the United States have performed.
Lipper Multi-Cap Core Funds Average—The Lipper Multi-Cap Core Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Multi-Cap Core Funds category. Funds in the Lipper Average invest in a variety of market-capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time.
Lipper Multi-Cap Growth Funds Average—The Lipper Multi-Cap Growth Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Multi-Cap Growth Funds category. Funds in the Lipper Average invest in a variety of market-capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time.
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Prudential Jennison Blend Fund, Inc. | | | 5 | |
Your Fund’s Performance (continued)
Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Averages reflect the deduction of operating expenses, but not sales charges or taxes.
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Five Largest Holdings expressed as a percentage of net assets as of 2/29/16 (%) | |
Facebook, Inc. (Class A Stock), Internet Software & Services | | | 2.1 | |
Microsoft Corp., Software | | | 2.1 | |
Amazon.com Inc., Internet & Catalog Retail | | | 1.9 | |
Allergan PLC, Pharmaceuticals | | | 1.7 | |
Apple, Inc., Technology Hardware, Storage & Peripherals | | | 1.5 | |
Holdings reflect only long-term investments and are subject to change.
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Five Largest Industries expressed as a percentage of net assets as of 2/29/16 (%) | |
Banks | | | 8.0 | |
Software | | | 7.6 | |
Internet Software & Services | | | 7.4 | |
Pharmaceuticals | | | 7.0 | |
Hotels, Restaurants, & Leisure | | | 5.6 | |
Industry weightings reflect only long-term investments and are subject to change.
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6 | | Visit our website at prudentialfunds.com |
Fees and Expenses (unaudited)
As a shareholder of the Fund, 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 Fund expenses, as applicable. 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 on September 1, 2015, at the beginning of the period, and held through the six-month period ended February 29, 2016. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
Actual Expenses
The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on 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 ÷ $1,000 = 8.6), then multiply the result by the number on 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.
Hypothetical Example for Comparison Purposes
The second line for each share class in the table on the following page 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’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of Prudential Investments funds, including the Fund, that you own. You should consider the additional fees that were charged to your
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Prudential Jennison Blend Fund, Inc. | | | 7 | |
Fees and Expenses (continued)
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 these 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.
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Prudential Jennison Blend Fund, Inc. | | Beginning Account Value September 1, 2015 | | | Ending Account Value February 29, 2016 | | | Annualized Expense Ratio Based on the Six-Month Period | | | Expenses Paid During the Six-Month Period* | |
Class A | | Actual | | $ | 1,000.00 | | | $ | 908.90 | | | | 0.98 | % | | $ | 4.65 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,019.99 | | | | 0.98 | % | | $ | 4.92 | |
Class B | | Actual | | $ | 1,000.00 | | | $ | 905.50 | | | | 1.68 | % | | $ | 7.96 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,016.51 | | | | 1.68 | % | | $ | 8.42 | |
Class C | | Actual | | $ | 1,000.00 | | | $ | 905.60 | | | | 1.68 | % | | $ | 7.96 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,016.51 | | | | 1.68 | % | | $ | 8.42 | |
Class Z | | Actual | | $ | 1,000.00 | | | $ | 910.00 | | | | 0.68 | % | | $ | 3.23 | |
| | Hypothetical | | $ | 1,000.00 | | | $ | 1,021.48 | | | | 0.68 | % | | $ | 3.42 | |
* Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for
each | share class (provided in the table), multiplied by the average account value over the period, multiplied by the 182 |
days | in the six-month period ended February 29, 2016, and divided by the 366 days in the Fund’s fiscal year ending |
August | 31, 2016 (to reflect the six-month period). Expenses presented in the table include the expenses of any |
underlying | portfolios in which the Fund may invest. |
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8 | | Visit our website at prudentialfunds.com |
The Fund’s annualized expense ratios for the six-month period ended February 29, 2016, are as follows:
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Class | | Gross Operating Expenses (%) | | Net Operating Expenses (%) |
A | | 0.98 | | 0.98 |
B | | 1.68 | | 1.68 |
C | | 1.68 | | 1.68 |
Z | | 0.68 | | 0.68 |
Net operating expenses shown above reflect fee waivers and/or expense reimbursements. Additional information on Fund expenses and any fee waivers and/or expense reimbursements can be found in the “Financial Highlights” tables in this report and in the Notes to the Financial Statements in this report.
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Prudential Jennison Blend Fund, Inc. | | | 9 | |
Portfolio of Investments (unaudited)
as of February 29, 2016
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Description | | Shares | | | Value (Note 1) | |
LONG-TERM INVESTMENTS 97.2% | | | | | | | | |
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COMMON STOCKS | | | | | | | | |
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Aerospace & Defense 1.6% | | | | | | | | |
Boeing Co. (The) | | | 41,360 | | | $ | 4,887,925 | |
Curtiss-Wright Corp. | | | 51,104 | | | | 3,607,431 | |
Moog, Inc. (Class A Stock)* | | | 15,261 | | | | 658,970 | |
United Technologies Corp. | | | 52,783 | | | | 5,099,894 | |
| | | | | | | | |
| | | | | | | 14,254,220 | |
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Airlines 0.2% | | | | | | | | |
Spirit Airlines, Inc.* | | | 43,354 | | | | 2,070,154 | |
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Auto Components 0.7% | | | | | | | | |
Lear Corp. | | | 35,291 | | | | 3,576,743 | |
Metaldyne Performance Group, Inc. | | | 108,809 | | | | 1,553,793 | |
Tenneco, Inc.* | | | 17,660 | | | | 803,883 | |
| | | | | | | | |
| | | | | | | 5,934,419 | |
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Automobiles 0.5% | | | | | | | | |
Tesla Motors, Inc.*(a) | | | 21,012 | | | | 4,032,833 | |
| | |
Banks 8.0% | | | | | | | | |
Ameris Bancorp | | | 28,588 | | | | 771,590 | |
Bank of America Corp. | | | 488,228 | | | | 6,112,614 | |
Bank of the Ozarks, Inc. | | | 95,325 | | | | 3,607,098 | |
BankUnited, Inc. | | | 73,506 | | | | 2,361,013 | |
Citigroup, Inc. | | | 186,922 | | | | 7,261,920 | |
Columbia Banking System, Inc. | | | 31,858 | | | | 918,466 | |
Eagle Bancorp, Inc.* | | | 16,637 | | | | 762,640 | |
East West Bancorp, Inc. | | | 117,448 | | | | 3,519,917 | |
Glacier Bancorp, Inc. | | | 77,640 | | | | 1,849,385 | |
Home BancShares, Inc. | | | 22,206 | | | | 877,581 | |
Investors Bancorp, Inc. | | | 63,422 | | | | 717,937 | |
JPMorgan Chase & Co. | | | 167,986 | | | | 9,457,612 | |
Pinnacle Financial Partners, Inc. | | | 26,853 | | | | 1,245,174 | |
PNC Financial Services Group, Inc. (The) | | | 85,543 | | | | 6,955,501 | |
Prosperity Bancshares, Inc. | | | 67,438 | | | | 2,727,867 | |
Renasant Corp. | | | 63,063 | | | | 1,968,827 | |
Signature Bank* | | | 23,363 | | | | 3,026,677 | |
Webster Financial Corp. | | | 62,445 | | | | 2,098,776 | |
Wells Fargo & Co. | | | 211,347 | | | | 9,916,401 | |
Wintrust Financial Corp. | | | 106,340 | | | | 4,519,450 | |
| | | | | | | | |
| | | | | | | 70,676,446 | |
See Notes to Financial Statements.
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Prudential Jennison Blend Fund, Inc. | | | 11 | |
Portfolio of Investments (unaudited) (continued)
as of February 29, 2016
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Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
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Beverages 0.4% | | | | | | | | |
Monster Beverage Corp.* | | | 25,254 | | | $ | 3,169,377 | |
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Biotechnology 3.8% | | | | | | | | |
AbbVie, Inc. | | | 58,158 | | | | 3,176,008 | |
ACADIA Pharmaceuticals, Inc.*(a) | | | 56,206 | | | | 970,116 | |
Alexion Pharmaceuticals, Inc.* | | | 42,348 | | | | 5,962,598 | |
Amicus Therapeutics, Inc.*(a) | | | 189,280 | | | | 1,165,965 | |
Anacor Pharmaceuticals, Inc.*(a) | | | 28,199 | | | | 1,798,532 | |
Biogen Idec, Inc.* | | | 15,855 | | | | 4,113,104 | |
BioMarin Pharmaceutical, Inc.* | | | 41,202 | | | | 3,373,208 | |
Celgene Corp.* | | | 66,586 | | | | 6,713,866 | |
Flexion Therapeutics, Inc.* | | | 17,381 | | | | 164,337 | |
Otonomy, Inc.* | | | 88,683 | | | | 1,123,614 | |
Radius Health, Inc.* | | | 27,546 | | | | 807,098 | |
Regeneron Pharmaceuticals, Inc.* | | | 11,489 | | | | 4,412,006 | |
| | | | | | | | |
| | | | | | | 33,780,452 | |
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Capital Markets 1.5% | | | | | | | | |
Artisan Partners Asset Management, Inc. (Class A Stock) | | | 27,895 | | | | 791,660 | |
Goldman Sachs Group, Inc. (The) | | | 39,256 | | | | 5,869,950 | |
HFF, Inc. (Class A Stock) | | | 35,192 | | | | 880,856 | |
Moelis & Co., (Class A Stock) | | | 70,631 | | | | 1,745,998 | |
Morgan Stanley | | | 101,831 | | | | 2,515,226 | |
Piper Jaffray Cos.* | | | 24,343 | | | | 1,030,926 | |
| | | | | | | | |
| | | | | | | 12,834,616 | |
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Chemicals 1.2% | | | | | | | | |
Ferro Corp.* | | | 179,009 | | | | 1,777,559 | |
FMC Corp. | | | 94,547 | | | | 3,558,749 | |
Monsanto Co. | | | 27,948 | | | | 2,515,041 | |
PolyOne Corp. | | | 119,044 | | | | 3,203,474 | |
| | | | | | | | |
| | | | | | | 11,054,823 | |
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Commercial Services & Supplies 0.8% | | | | | | | | |
Mobile Mini, Inc. | | | 127,666 | | | | 3,669,121 | |
West Corp. | | | 160,838 | | | | 3,583,470 | |
| | | | | | | | |
| | | | | | | 7,252,591 | |
| | |
Communications Equipment 0.1% | | | | | | | | |
Ciena Corp.* | | | 16,032 | | | | 328,656 | |
Infinera Corp.* | | | 29,016 | | | | 455,261 | |
| | | | | | | | |
| | | | | | | 783,917 | |
See Notes to Financial Statements.
| | | | | | | | |
Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Construction & Engineering 0.1% | | | | | | | | |
Great Lakes Dredge & Dock Corp.* | | | 230,783 | | | $ | 784,662 | |
| | |
Construction Materials 0.4% | | | | | | | | |
Summit Materials, Inc. (Class A Stock)* | | | 183,308 | | | | 3,347,204 | |
| | |
Consumer Finance 1.1% | | | | | | | | |
Capital One Financial Corp. | | | 87,044 | | | | 5,721,402 | |
SLM Corp.* | | | 742,645 | | | | 4,337,047 | |
| | | | | | | | |
| | | | | | | 10,058,449 | |
| | |
Containers & Packaging 0.1% | | | | | | | | |
Multi Packaging Solutions International Ltd.* | | | 72,834 | | | | 1,117,274 | |
| | |
Distributors 0.1% | | | | | | | | |
Fenix Parts, Inc.*(a) | | | 121,939 | | | | 607,256 | |
| | |
Diversified Financial Services 0.4% | | | | | | | | |
Voya Financial, Inc. | | | 126,977 | | | | 3,728,045 | |
| | |
Diversified Telecommunication Services 0.5% | | | | | | | | |
Cogent Communications Holdings, Inc.(a) | | | 36,838 | | | | 1,351,955 | |
ORBCOMM, Inc.*(a) | | | 354,013 | | | | 3,086,993 | |
| | | | | | | | |
| | | | | | | 4,438,948 | |
| | |
Electric Utilities 1.5% | | | | | | | | |
El Paso Electric Co. | | | 16,028 | | | | 654,744 | |
FirstEnergy Corp. | | | 231,688 | | | | 7,754,597 | |
Portland General Electric Co. | | | 130,974 | | | | 4,983,561 | |
| | | | | | | | |
| | | | | | | 13,392,902 | |
| | |
Electrical Equipment 0.8% | | | | | | | | |
Eaton Corp. PLC | | | 124,110 | | | | 7,038,278 | |
| | |
Electronic Equipment, Instruments & Components 0.8% | | | | | | | | |
Anixter International, Inc.* | | | 38,672 | | | | 1,656,322 | |
Flextronics International Ltd.* | | | 341,420 | | | | 3,707,821 | |
Plexus Corp.* | | | 46,880 | | | | 1,705,963 | |
| | | | | | | | |
| | | | | | | 7,070,106 | |
| | |
Energy Equipment & Services 0.5% | | | | | | | | |
Halliburton Co. | | | 138,092 | | | | 4,457,610 | |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 13 | |
Portfolio of Investments (unaudited) (continued)
as of February 29, 2016
| | | | | | | | |
Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Food & Staples Retailing 2.2% | | | | | | | | |
Costco Wholesale Corp. | | | 57,568 | | | $ | 8,636,927 | |
Kroger Co. (The) | | | 187,459 | | | | 7,481,489 | |
Natural Grocers by Vitamin Cottage, Inc.*(a) | | | 19,466 | | | | 391,656 | |
Performance Food Group Co.* | | | 81,420 | | | | 2,013,516 | |
United Natural Foods, Inc.*(a) | | | 34,706 | | | | 1,071,027 | |
| | | | | | | | |
| | | | | | | 19,594,615 | |
| | |
Food Products 2.7% | | | | | | | | |
Adecoagro SA (Luxembourg)* | | | 325,360 | | | | 4,242,694 | |
B&G Foods, Inc.(a) | | | 19,311 | | | | 667,968 | |
ConAgra Foods, Inc. | | | 145,614 | | | | 6,124,525 | |
Darling Ingredients, Inc.* | | | 102,549 | | | | 923,967 | |
Hain Celestial Group, Inc. (The)* | | | 43,552 | | | | 1,610,117 | |
Mondelez International, Inc. (Class A Stock) | | | 197,111 | | | | 7,988,909 | |
Post Holdings, Inc.* | | | 5,531 | | | | 384,183 | |
SunOpta, Inc. (Canada)* | | | 303,055 | | | | 1,851,666 | |
| | | | | | | | |
| | | | | | | 23,794,029 | |
| | |
Health Care Equipment & Supplies 1.7% | | | | | | | | |
Cardiovascular Systems, Inc.*(a) | | | 44,905 | | | | 375,406 | |
GenMark Diagnostics, Inc.* | | | 208,630 | | | | 1,032,718 | |
Nevro Corp.*(a) | | | 28,723 | | | | 1,654,445 | |
Novadaq Technologies, Inc. (Canada)*(a) | | | 229,983 | | | | 2,210,137 | |
NuVasive, Inc.* | | | 39,499 | | | | 1,651,058 | |
NxStage Medical, Inc.* | | | 135,780 | | | | 2,023,122 | |
Tandem Diabetes Care, Inc.* | | | 29,745 | | | | 265,920 | |
Wright Medical Group NV* | | | 14,911 | | | | 254,829 | |
Zimmer Biomet Holdings, Inc. | | | 53,397 | | | | 5,169,364 | |
| | | | | | | | |
| | | | | | | 14,636,999 | |
| | |
Health Care Providers & Services 3.4% | | | | | | | | |
Acadia Healthcare Co., Inc.* | | | 29,110 | | | | 1,612,985 | |
Air Methods Corp.*(a) | | | 105,974 | | | | 3,850,035 | |
Amedisys, Inc.* | | | 9,215 | | | | 338,559 | |
Amsurg Corp.* | | | 67,716 | | | | 4,608,074 | |
Envision Healthcare Holdings, Inc.* | | | 50,314 | | | | 1,106,405 | |
Express Scripts Holding Co.*(a) | | | 28,658 | | | | 2,016,950 | |
HealthEquity, Inc.* | | | 20,842 | | | | 433,930 | |
Laboratory Corp. of America Holdings* | | | 41,836 | | | | 4,595,266 | |
LifePoint Health, Inc.* | | | 38,257 | | | | 2,385,707 | |
Molina Healthcare, Inc.*(a) | | | 55,870 | | | | 3,466,175 | |
Premier, Inc. (Class A Stock)* | | | 58,333 | | | | 1,896,989 | |
See Notes to Financial Statements.
| | | | | | | | |
Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Health Care Providers & Services (cont’d) | | | | | | | | |
Surgery Partners, Inc.*(a) | | | 51,891 | | | $ | 681,329 | |
Surgical Care Affiliates, Inc.* | | | 7,727 | | | | 313,175 | |
Team Health Holdings, Inc.* | | | 55,871 | | | | 2,490,171 | |
| | | | | | | | |
| | | | | | | 29,795,750 | |
| | |
Hotels, Restaurants & Leisure 5.6% | | | | | | | | |
Carnival Corp. | | | 135,697 | | | | 6,508,028 | |
ClubCorp Holdings, Inc. | | | 101,639 | | | | 1,348,750 | |
Marriott International, Inc. (Class A Stock)(a) | | | 101,595 | | | | 6,923,699 | |
McDonald’s Corp. | | | 58,102 | | | | 6,808,973 | |
Pinnacle Entertainment, Inc.* | | | 107,985 | | | | 3,121,846 | |
Starbucks Corp. | | | 172,153 | | | | 10,021,026 | |
Texas Roadhouse, Inc.(a) | | | 109,070 | | | | 4,549,310 | |
Vail Resorts, Inc. | | | 69,177 | | | | 8,813,842 | |
Zoe’s Kitchen, Inc.*(a) | | | 46,724 | | | | 1,632,069 | |
| | | | | | | | |
| | | | | | | 49,727,543 | |
| | |
Household Durables 0.1% | | | | | | | | |
Meritage Homes Corp.* | | | 26,171 | | | | 849,772 | |
| | |
Household Products 0.8% | | | | | | | | |
Procter & Gamble Co. (The) | | | 83,249 | | | | 6,684,062 | |
| | |
Industrial Conglomerates 0.6% | | | | | | | | |
General Electric Co. | | | 195,111 | | | | 5,685,535 | |
| | |
Insurance 2.7% | | | | | | | | |
Chubb Ltd. | | | 60,941 | | | | 7,040,514 | |
MetLife, Inc. | | | 165,107 | | | | 6,531,633 | |
Navigators Group, Inc. (The)* | | | 11,978 | | | | 969,978 | |
RLI Corp. | | | 33,443 | | | | 2,099,217 | |
Validus Holdings Ltd. | | | 44,336 | | | | 1,991,130 | |
White Mountains Insurance Group Ltd. | | | 6,314 | | | | 4,841,954 | |
| | | | | | | | |
| | | | | | | 23,474,426 | |
| | |
Internet & Catalog Retail 3.5% | | | | | | | | |
Amazon.com, Inc.* | | | 30,683 | | | | 16,952,971 | |
Netflix, Inc.* | | | 78,453 | | | | 7,328,295 | |
Priceline Group, Inc. (The)* | | | 3,694 | | | | 4,673,686 | |
Wayfair, Inc. (Class A Stock)*(a) | | | 51,714 | | | | 2,015,294 | |
| | | | | | | | |
| | | | | | | 30,970,246 | |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 15 | |
Portfolio of Investments (unaudited) (continued)
as of February 29, 2016
| | | | | | | | |
Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Internet Software & Services 7.4% | | | | | | | | |
Alibaba Group Holding Ltd. (China), ADR*(a) | | | 66,890 | | | $ | 4,602,701 | |
Alphabet, Inc. (Class A Stock)* | | | 15,500 | | | | 11,116,910 | |
Alphabet, Inc. (Class C Stock)* | | | 16,174 | | | | 11,285,732 | |
Cornerstone OnDemand, Inc.* | | | 93,800 | | | | 2,701,440 | |
Demandware, Inc.*(a) | | | 26,981 | | | | 935,971 | |
eBay, Inc.* | | | 114,503 | | | | 2,725,172 | |
Facebook, Inc. (Class A Stock)* | | | 174,187 | | | | 18,624,074 | |
LinkedIn Corp. (Class A Stock)* | | | 13,283 | | | | 1,556,635 | |
Marketo, Inc.* | | | 56,006 | | | | 944,821 | |
Q2 Holdings, Inc.* | | | 107,038 | | | | 2,169,660 | |
Tencent Holdings Ltd. (China) | | | 433,392 | | | | 7,930,001 | |
WebMD Health Corp.* | | | 5,466 | | | | 303,144 | |
| | | | | | | | |
| | | | | | | 64,896,261 | |
| | |
IT Services 2.9% | | | | | | | | |
Euronet Worldwide, Inc.* | | | 13,369 | | | | 876,204 | |
Global Payments, Inc. | | | 51,973 | | | | 3,167,754 | |
InterXion Holding NV (Netherlands)* | | | 72,004 | | | | 2,247,965 | |
MasterCard, Inc. (Class A Stock) | | | 91,369 | | | | 7,941,794 | |
Visa, Inc. (Class A Stock)(a) | | | 151,168 | | | | 10,943,052 | |
| | | | | | | | |
| | | | | | | 25,176,769 | |
| | |
Life Sciences Tools & Services 0.5% | | | | | | | | |
Fluidigm Corp.*(a) | | | 71,007 | | | | 470,776 | |
Illumina, Inc.* | | | 26,241 | | | | 3,942,448 | |
| | | | | | | | |
| | | | | | | 4,413,224 | |
| | |
Machinery 1.0% | | | | | | | | |
Barnes Group, Inc. | | | 51,362 | | | | 1,762,230 | |
CIRCOR International, Inc. | | | 10,121 | | | | 405,751 | |
NN, Inc. | | | 124,977 | | | | 1,584,708 | |
RBC Bearings, Inc.* | | | 18,793 | | | | 1,197,020 | |
Rexnord Corp.* | | | 150,873 | | | | 2,736,836 | |
Woodward, Inc. | | | 21,707 | | | | 1,019,144 | |
| | | | | | | | |
| | | | | | | 8,705,689 | |
| | |
Media 2.1% | | | | | | | | |
Cinemark Holdings, Inc. | | | 127,618 | | | | 4,224,156 | |
Comcast Corp. (Class A Stock) | | | 96,019 | | | | 5,543,177 | |
IMAX Corp.*(a) | | | 57,920 | | | | 1,709,219 | |
Walt Disney Co. (The) | | | 74,202 | | | | 7,087,775 | |
| | | | | | | | |
| | | | | | | 18,564,327 | |
See Notes to Financial Statements.
| | | | | | | | |
Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Metals & Mining 0.2% | | | | | | | | |
Ferroglobe PLC | | | 52,407 | | | $ | 411,919 | |
Reliance Steel & Aluminum Co. | | | 16,310 | | | | 993,116 | |
| | | | | | | | |
| | | | | | | 1,405,035 | |
| | |
Multi-Utilities 0.8% | | | | | | | | |
PG&E Corp. | | | 120,278 | | | | 6,823,371 | |
| | |
Multiline Retail 1.0% | | | | | | | | |
Big Lots, Inc. | | | 9,017 | | | | 364,738 | |
Target Corp. | | | 105,923 | | | | 8,309,659 | |
| | | | | | | | |
| | | | | | | 8,674,397 | |
| | |
Oil, Gas & Consumable Fuels 3.1% | | | | | | | | |
California Resources Corp. | | | 8,867 | | | | 4,984 | |
Chevron Corp.(a) | | | 79,442 | | | | 6,628,640 | |
Noble Energy, Inc. | | | 149,691 | | | | 4,415,884 | |
Occidental Petroleum Corp. | | | 94,328 | | | | 6,491,653 | |
PDC Energy, Inc.*(a) | | | 63,732 | | | | 3,193,611 | |
SemGroup Corp. (Class A Stock) | | | 47,533 | | | | 903,127 | |
Suncor Energy, Inc. (Canada) | | | 240,998 | | | | 5,892,250 | |
| | | | | | | | |
| | | | | | | 27,530,149 | |
| | |
Pharmaceuticals 7.0% | | | | | | | | |
Allergan PLC* | | | 51,043 | | | | 14,808,085 | |
Bristol-Myers Squibb Co. | | | 128,327 | | | | 7,947,291 | |
Dermira, Inc.* | | | 33,310 | | | | 768,129 | |
Intersect ENT, Inc.*(a) | | | 106,579 | | | | 1,926,948 | |
Merck & Co., Inc. | | | 121,731 | | | | 6,112,113 | |
Novo Nordisk A/S (Denmark), ADR | | | 69,147 | | | | 3,554,156 | |
Pfizer, Inc. | | | 248,367 | | | | 7,369,049 | |
Prestige Brands Holdings, Inc.* | | | 33,423 | | | | 1,634,385 | |
Shire PLC (Ireland), ADR(a) | | | 52,280 | | | | 8,161,431 | |
Teva Pharmaceutical Industries Ltd. (Israel), ADR | | | 165,349 | | | | 9,193,404 | |
| | | | | | | | |
| | | | | | | 61,474,991 | |
| | |
Professional Services 1.0% | | | | | | | | |
CEB, Inc. | | | 37,800 | | | | 2,051,406 | |
Korn/Ferry International | | | 131,707 | | | | 3,743,113 | |
TrueBlue, Inc.* | | | 143,149 | | | | 3,285,270 | |
| | | | | | | | |
| | | | | | | 9,079,789 | |
| | |
Real Estate Investment Trusts (REITs) 2.6% | | | | | | | | |
Acadia Realty Trust | | | 7,923 | | | | 261,855 | |
Capstead Mortgage Corp. | | | 177,591 | | | | 1,724,409 | |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 17 | |
Portfolio of Investments (unaudited) (continued)
as of February 29, 2016
| | | | | | | | |
Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Real Estate Investment Trusts (REITs) (cont’d) | | | | | | | | |
Chatham Lodging Trust | | | 127,959 | | | $ | 2,566,857 | |
Colony Capital, Inc. (Class A Stock) | | | 138,960 | | | | 2,278,944 | |
First Potomac Realty Trust | | | 100,848 | | | | 853,174 | |
Hersha Hospitality Trust | | | 174,570 | | | | 3,514,094 | |
MFA Financial, Inc. | | | 434,396 | | | | 2,958,237 | |
Parkway Properties, Inc. | | | 173,463 | | | | 2,322,670 | |
Pebblebrook Hotel Trust | | | 53,479 | | | | 1,452,490 | |
QTS Realty Trust, Inc. (Class A Stock) | | | 84,676 | | | | 3,769,775 | |
Retail Opportunity Investments Corp. | | | 24,042 | | | | 441,892 | |
Summit Hotel Properties, Inc. | | | 63,698 | | | | 688,575 | |
| | | | | | | | |
| | | | | | | 22,832,972 | |
| | |
Real Estate Management & Development 0.1% | | | | | | | | |
Marcus & Millichap, Inc.* | | | 54,477 | | | | 1,214,292 | |
| | |
Road & Rail 0.4% | | | | | | | | |
Heartland Express, Inc. | | | 90,864 | | | | 1,671,898 | |
Hertz Global Holdings, Inc.* | | | 238,552 | | | | 2,027,692 | |
| | | | | | | | |
| | | | | | | 3,699,590 | |
| | |
Semiconductors & Semiconductor Equipment 1.9% | | | | | | | | |
Cavium, Inc.* | | | 81,912 | | | | 4,872,945 | |
Inphi Corp.* | | | 10,931 | | | | 276,554 | |
M/A-COM Technology Solutions Holdings, Inc.*(a) | | | 73,942 | | | | 2,802,402 | |
Monolithic Power Systems, Inc. | | | 50,409 | | | | 2,977,155 | |
Semtech Corp.* | | | 14,541 | | | | 278,606 | |
Texas Instruments, Inc. | | | 112,514 | | | | 5,965,492 | |
| | | | | | | | |
| | | | | | | 17,173,154 | |
| | |
Software 7.6% | | | | | | | | |
Adobe Systems, Inc.* | | | 90,392 | | | | 7,696,879 | |
Aspen Technology, Inc.* | | | 8,016 | | | | 264,288 | |
BroadSoft, Inc.*(a) | | | 12,241 | | | | 451,570 | |
Fortinet, Inc.* | | | 66,843 | | | | 1,898,341 | |
Imperva, Inc.* | | | 5,835 | | | | 255,981 | |
Infoblox, Inc.* | | | 70,910 | | | | 1,097,687 | |
Manhattan Associates, Inc.* | | | 30,290 | | | | 1,673,825 | |
Microsoft Corp. | | | 367,864 | | | | 18,716,920 | |
Paycom Software, Inc.*(a) | | | 62,275 | | | | 1,985,327 | |
Proofpoint, Inc.*(a) | | | 47,183 | | | | 2,210,052 | |
PTC, Inc.* | | | 135,442 | | | | 4,186,512 | |
QLIK Technologies, Inc.* | | | 174,586 | | | | 4,053,887 | |
See Notes to Financial Statements.
| | | | | | | | |
Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Software (cont’d) | | | | | | | | |
Red Hat, Inc.* | | | 82,880 | | | $ | 5,416,208 | |
salesforce.com, inc.* | | | 144,930 | | | | 9,819,008 | |
Splunk, Inc.*(a) | | | 76,353 | | | | 3,328,991 | |
Workday, Inc. (Class A Stock)*(a) | | | 62,308 | | | | 3,766,519 | |
| | | | | | | | |
| | | | | | | 66,821,995 | |
| | |
Specialty Retail 2.7% | | | | | | | | |
Asbury Automotive Group, Inc.* | | | 23,709 | | | | 1,384,605 | |
DavidsTea, Inc. (Canada)*(a) | | | 32,977 | | | | 344,610 | |
DSW, Inc. (Class A Stock)(a) | | | 140,572 | | | | 3,682,986 | |
Five Below, Inc.*(a) | | | 34,752 | | | | 1,332,739 | |
Francesca’s Holdings Corp.* | | | 16,183 | | | | 292,589 | |
Group 1 Automotive, Inc. | | | 10,494 | | | | 585,145 | |
Inditex SA (Spain), ADR | | | 488,479 | | | | 7,581,194 | |
Mattress Firm Holding Corp.*(a) | | | 82,788 | | | | 3,727,944 | |
O’Reilly Automotive, Inc.* | | | 11,690 | | | | 3,043,141 | |
Party City Holdco, Inc.*(a) | | | 77,020 | | | | 761,728 | |
Restoration Hardware Holdings, Inc.*(a) | | | 20,511 | | | | 779,213 | |
Zumiez, Inc.*(a) | | | 29,988 | | | | 619,552 | |
| | | | | | | | |
| | | | | | | 24,135,446 | |
| | |
Technology Hardware, Storage & Peripherals 1.5% | | | | | | | | |
Apple, Inc. | | | 138,184 | | | | 13,361,011 | |
| | |
Textiles, Apparel & Luxury Goods 3.3% | | | | | | | | |
Coach, Inc. | | | 142,700 | | | | 5,556,738 | |
Deckers Outdoor Corp.*(a) | | | 33,511 | | | | 1,895,382 | |
G-III Apparel Group Ltd.* | | | 90,538 | | | | 4,775,879 | |
NIKE, Inc. (Class B Stock) | | | 185,020 | | | | 11,395,382 | |
Steven Madden Ltd.*(a) | | | 18,939 | | | | 666,653 | |
Under Armour, Inc. (Class A Stock)*(a) | | | 62,177 | | | | 5,203,593 | |
| | | | | | | | |
| | | | | | | 29,493,627 | |
| | |
Thrifts & Mortgage Finance 0.4% | | | | | | | | |
Brookline Bancorp, Inc. | | | 42,556 | | | | 447,263 | |
OceanFirst Financial Corp. | | | 20,495 | | | | 348,210 | |
Provident Financial Services, Inc. | | | 127,598 | | | | 2,372,047 | |
WSFS Financial Corp. | | | 15,942 | | | | 483,043 | |
| | | | | | | | |
| | | | | | | 3,650,563 | |
| | |
Trading Companies & Distributors 0.5% | | | | | | | | |
Beacon Roofing Supply, Inc.* | | | 89,340 | | | | 3,225,174 | |
Univar, Inc.* | | | 54,588 | | | | 858,669 | |
| | | | | | | | |
| | | | | | | 4,083,843 | |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 19 | |
Portfolio of Investments (unaudited) (continued)
as of February 29, 2016
| | | | | | | | |
Description | | Shares | | | Value (Note 1) | |
COMMON STOCKS (Continued) | | | | | | | | |
| | |
Wireless Telecommunication Services 0.8% | | | | | | | | |
Vodafone Group PLC (United Kingdom), ADR | | | 240,268 | | | $ | 7,304,147 | |
| | | | | | | | |
TOTAL LONG-TERM INVESTMENTS (cost $734,353,482) | | | | | | | 857,612,201 | |
| | | | | | | | |
| | |
SHORT-TERM INVESTMENT 13.7% | | | | | | | | |
| | |
AFFILIATED MONEY MARKET MUTUAL FUND | | | | | | | | |
Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $120,530,679; includes $96,287,377 of cash collateral for securities on loan) (Note 3)(b)(c) | | | 120,530,679 | | | | 120,530,679 | |
| | | | | | | | |
| | |
TOTAL INVESTMENTS 110.9% (cost $854,884,161) (Note 5) | | | | | | | 978,142,880 | |
Liabilities in excess of other assets (10.9)% | | | | | | | (96,275,035 | ) |
| | | | | | | | |
NET ASSETS 100.0% | | | | | | $ | 881,867,845 | |
| | | | | | | | |
The following abbreviations are used in the semiannual report:
ADR—American Depositary Receipt
OTC—Over-the-counter
* | Non-income producing security. |
(a) | All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $93,446,488; cash collateral of $96,287,377 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. Securities on loan are subject to contractual netting arrangements. |
(b) | Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund. |
(c) | Represents security, or a portion thereof, purchased with cash collateral received for securities on loan. |
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1—quoted prices generally in active markets for identical securities.
Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.
Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.
See Notes to Financial Statements.
The following is a summary of the inputs used as of February 29, 2016 in valuing such portfolio securities:
| | | | | | | | | | | | |
| | Level 1 | | | Level 2 | | | Level 3 | |
Investments in Securities | | | | | | | | | | | | |
Common Stocks | | | | | | | | | | | | |
Aerospace & Defense | | $ | 14,254,220 | | | $ | — | | | $ | — | |
Airlines | | | 2,070,154 | | | | — | | | | — | |
Auto Components | | | 5,934,419 | | | | — | | | | — | |
Automobiles | | | 4,032,833 | | | | — | | | | — | |
Banks | | | 70,676,446 | | | | — | | | | — | |
Beverages | | | 3,169,377 | | | | — | | | | — | |
Biotechnology | | | 33,780,452 | | | | — | | | | — | |
Capital Markets | | | 12,834,616 | | | | — | | | | — | |
Chemicals | | | 11,054,823 | | | | — | | | | — | |
Commercial Services & Supplies | | | 7,252,591 | | | | — | | | | — | |
Communications Equipment | | | 783,917 | | | | — | | | | — | |
Construction & Engineering | | | 784,662 | | | | — | | | | — | |
Construction Materials | | | 3,347,204 | | | | — | | | | — | |
Consumer Finance | | | 10,058,449 | | | | — | | | | — | |
Containers & Packaging | | | 1,117,274 | | | | — | | | | — | |
Distributors | | | 607,256 | | | | — | | | | — | |
Diversified Financial Services | | | 3,728,045 | | | | — | | | | — | |
Diversified Telecommunication Services | | | 4,438,948 | | | | — | | | | — | |
Electric Utilities | | | 13,392,902 | | | | — | | | | — | |
Electrical Equipment | | | 7,038,278 | | | | — | | | | — | |
Electronic Equipment, Instruments & Components | | | 7,070,106 | | | | — | | | | — | |
Energy Equipment & Services | | | 4,457,610 | | | | — | | | | — | |
Food & Staples Retailing | | | 19,594,615 | | | | — | | | | — | |
Food Products | | | 23,794,029 | | | | — | | | | — | |
Health Care Equipment & Supplies | | | 14,636,999 | | | | — | | | | — | |
Health Care Providers & Services | | | 29,795,750 | | | | — | | | | — | |
Hotels, Restaurants & Leisure | | | 49,727,543 | | | | — | | | | — | |
Household Durables | | | 849,772 | | | | — | | | | — | |
Household Products | | | 6,684,062 | | | | — | | | | — | |
Industrial Conglomerates | | | 5,685,535 | | | | — | | | | — | |
Insurance | | | 23,474,426 | | | | — | | | | — | |
Internet & Catalog Retail | | | 30,970,246 | | | | — | | | | — | |
Internet Software & Services | | | 56,966,260 | | | | 7,930,001 | | | | — | |
IT Services | | | 25,176,769 | | | | — | | | | — | |
Life Sciences Tools & Services | | | 4,413,224 | | | | — | | | | — | |
Machinery | | | 8,705,689 | | | | — | | | | — | |
Media | | | 18,564,327 | | | | — | | | | — | |
Metals & Mining | | | 1,405,035 | | | | — | | | | — | |
Multi-Utilities | | | 6,823,371 | | | | — | | | | — | |
Multiline Retail | | | 8,674,397 | | | | — | | | | — | |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 21 | |
Portfolio of Investments (unaudited) (continued)
as of February 29, 2016
| | | | | | | | | | | | |
| | Level 1 | | | Level 2 | | | Level 3 | |
Oil, Gas & Consumable Fuels | | $ | 27,530,149 | | | $ | — | | | $ | — | |
Pharmaceuticals | | | 61,474,991 | | | | — | | | | — | |
Professional Services | | | 9,079,789 | | | | — | | | | — | |
Real Estate Investment Trusts (REITs) | | | 22,832,972 | | | | — | | | | — | |
Real Estate Management & Development | | | 1,214,292 | | | | — | | | | — | |
Road & Rail | | | 3,699,590 | | | | — | | | | — | |
Semiconductors & Semiconductor Equipment | | | 17,173,154 | | | | — | | | | — | |
Software | | | 66,821,995 | | | | — | | | | — | |
Specialty Retail | | | 24,135,446 | | | | — | | | | — | |
Technology Hardware, Storage & Peripherals | | | 13,361,011 | | | | — | | | | — | |
Textiles, Apparel & Luxury Goods | | | 29,493,627 | | | | — | | | | — | |
Thrifts & Mortgage Finance | | | 3,650,563 | | | | — | | | | — | |
Trading Companies & Distributors | | | 4,083,843 | | | | — | | | | — | |
Wireless Telecommunication Services | | | 7,304,147 | | | | — | | | | — | |
Affiliated Money Market Mutual Fund | | | 120,530,679 | | | | — | | | | — | |
| | | | | | | | | | | | |
Total | | $ | 970,212,879 | | | $ | 7,930,001 | | | $ | — | |
| | | | | | | | | | | | |
The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of February 29, 2016 were as follows (Unaudited):
| | | | |
Affiliated Money Market Mutual Fund (including 10.9% of collateral for securities on loan) | | | 13.7 | % |
Banks | | | 8.0 | |
Software | | | 7.6 | |
Internet Software & Services | | | 7.4 | |
Pharmaceuticals | | | 7.0 | |
Hotels, Restaurants & Leisure | | | 5.6 | |
Biotechnology | | | 3.8 | |
Internet & Catalog Retail | | | 3.5 | |
Health Care Providers & Services | | | 3.4 | |
Textiles, Apparel & Luxury Goods | | | 3.3 | |
Oil, Gas & Consumable Fuels | | | 3.1 | |
IT Services | | | 2.9 | |
Specialty Retail | | | 2.7 | |
Food Products | | | 2.7 | |
Insurance | | | 2.7 | |
Real Estate Investment Trusts (REITs) | | | 2.6 | |
Food & Staples Retailing | | | 2.2 | |
Media | | | 2.1 | |
Semiconductors & Semiconductor Equipment | | | 1.9 | |
Health Care Equipment & Supplies | | | 1.7 | |
Aerospace & Defense | | | 1.6 | |
Electric Utilities | | | 1.5 | |
Technology Hardware, Storage & Peripherals | | | 1.5 | |
Capital Markets | | | 1.5 | |
Chemicals | | | 1.2 | % |
Consumer Finance | | | 1.1 | |
Professional Services | | | 1.0 | |
Machinery | | | 1.0 | |
Multiline Retail | | | 1.0 | |
Wireless Telecommunication Services | | | 0.8 | |
Commercial Services & Supplies | | | 0.8 | |
Electronic Equipment, Instruments & Components | | | 0.8 | |
Electrical Equipment | | | 0.8 | |
Multi-Utilities | | | 0.8 | |
Household Products | | | 0.8 | |
Auto Components | | | 0.7 | |
Industrial Conglomerates | | | 0.6 | |
Energy Equipment & Services | | | 0.5 | |
Diversified Telecommunication Services | | | 0.5 | |
Life Sciences Tools & Services | | | 0.5 | |
Trading Companies & Distributors | | | 0.5 | |
Automobiles | | | 0.5 | |
Diversified Financial Services | | | 0.4 | |
Road & Rail | | | 0.4 | |
Thrifts & Mortgage Finance | | | 0.4 | |
Construction Materials | | | 0.4 | |
Beverages | | | 0.4 | |
Airlines | | | 0.2 | |
Metals & Mining | | | 0.2 | |
See Notes to Financial Statements.
| | | | |
Real Estate Management & Development | | | 0.1 | % |
Containers & Packaging | | | 0.1 | |
Household Durables | | | 0.1 | |
Construction & Engineering | | | 0.1 | |
Communications Equipment | | | 0.1 | % |
Distributors | | | 0.1 | |
| | | | |
| | | 110.9 | |
Liabilities in excess of other assets | | | (10.9 | ) |
| | | | |
| | | 100.0 | % |
| | | | |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 23 | |
Statement of Assets & Liabilities (unaudited)
as of February 29, 2016
| | | | |
Assets | | | | |
Investments at value, including securities on loan of $93,446,488: | | | | |
Unaffiliated Investments (cost $734,353,482) | | $ | 857,612,201 | |
Affiliated Investments (cost $120,530,679) | | | 120,530,679 | |
Dividends and interest receivable | | | 1,249,833 | |
Receivable for investments sold | | | 1,169,853 | |
Tax reclaim receivable | | | 115,575 | |
Receivable for Fund shares sold | | | 106,477 | |
Prepaid expenses | | | 5,520 | |
| | | | |
Total assets | | | 980,790,138 | |
| | | | |
| |
Liabilities | | | | |
Payable to broker for collateral for securities on loan (Note 3) | | | 96,287,377 | |
Payable for investments purchased | | | 1,167,653 | |
Payable for Fund shares reacquired | | | 463,436 | |
Management fee payable | | | 335,736 | |
Accrued expenses and other liabilities | | | 311,273 | |
Distribution fee payable | | | 215,424 | |
Affiliated transfer agent fee payable | | | 141,394 | |
| | | | |
Total liabilities | | | 98,922,293 | |
| | | | |
| |
Net Assets | | $ | 881,867,845 | |
| | | | |
| | | | |
Net assets were comprised of: | | | | |
Common stock, at par | | $ | 522,258 | |
Paid-in capital in excess of par | | | 743,341,069 | |
| | | | |
| | | 743,863,327 | |
Undistributed net investment income | | | 2,566,962 | |
Accumulated net realized gain on investment and foreign currency transactions | | | 12,178,837 | |
Net unrealized appreciation on investments and foreign currencies | | | 123,258,719 | |
| | | | |
Net assets, February 29, 2016 | | $ | 881,867,845 | |
| | | | |
See Notes to Financial Statements.
| | | | |
Class A | | | | |
Net asset value and redemption price per share | | | | |
($818,009,531 ÷ 48,281,975 shares of common stock issued and outstanding) | | $ | 16.94 | |
Maximum sales charge (5.50% of offering price) | | | 0.99 | |
| | | | |
Maximum offering price to public | | $ | 17.93 | |
| | | | |
| |
Class B | | | | |
Net asset value, offering price and redemption price per share | | | | |
($11,884,835 ÷ 766,570 shares of common stock issued and outstanding) | | $ | 15.50 | |
| | | | |
| |
Class C | | | | |
Net asset value, offering price and redemption price per share | | | | |
($20,109,511 ÷ 1,296,796 shares of common stock issued and outstanding) | | $ | 15.51 | |
| | | | |
| |
Class Z | | | | |
Net asset value, offering price and redemption price per share | | | | |
($31,863,968 ÷ 1,880,505 shares of common stock issued and outstanding) | | $ | 16.94 | |
| | | | |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 25 | |
Statement of Operations (unaudited)
Six Months Ended February 29, 2016
| | | | |
Net Investment Income | | | | |
Income | | | | |
Unaffiliated dividend income (net of foreign withholding taxes of $54,954) | | $ | 6,617,761 | |
Affiliated income from securities lending, net | | | 481,681 | |
Affiliated dividend income | | | 40,514 | |
| | | | |
Total income | | | 7,139,956 | |
| | | | |
| |
Expenses | | | | |
Management fee | | | 2,382,742 | |
Distribution fee—Class A | | | 1,351,282 | |
Distribution fee—Class B | | | 67,925 | |
Distribution fee—Class C | | | 110,714 | |
Transfer agent’s fees and expenses (including affiliated expense of $234,600) | | | 706,000 | |
Custodian and accounting fees | | | 85,000 | |
Shareholders’ reports | | | 43,000 | |
Registration fees | | | 37,000 | |
Directors’ fees | | | 15,000 | |
Legal fees and expenses | | | 14,000 | |
Audit fee | | | 11,000 | |
Insurance expenses | | | 6,000 | |
Miscellaneous | | | 10,853 | |
| | | | |
Total expenses | | | 4,840,516 | |
| | | | |
Net investment income | | | 2,299,440 | |
| | | | |
| |
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions | | | | |
Net realized gain (loss) on: | | | | |
Investment transactions | | | 40,839,521 | |
Foreign currency transactions | | | (1,987 | ) |
| | | | |
| | | 40,837,534 | |
| | | | |
Net change in unrealized appreciation (depreciation) on investments | | | (132,419,274 | ) |
| | | | |
Net loss on investment and foreign currency transactions | | | (91,581,740 | ) |
| | | | |
Net Decrease In Net Assets Resulting From Operations | | $ | (89,282,300 | ) |
| | | | |
See Notes to Financial Statements.
Statement of Changes in Net Assets (unaudited)
| | | | | | | | |
| | Six Months Ended February 29, 2016 | | | Year Ended August 31, 2015 | |
Increase (Decrease) in Net Assets | | | | | | | | |
Operations | | | | | | | | |
Net investment income | | $ | 2,299,440 | | | $ | 3,981,775 | |
Net realized gain on investment and foreign currency transactions | | | 40,837,534 | | | | 102,525,079 | |
Net change in unrealized appreciation (depreciation) on investments | | | (132,419,274 | ) | | | (121,928,179 | ) |
| | | | | | | | |
Net decrease in net assets resulting from operations | | | (89,282,300 | ) | | | (15,421,325 | ) |
| | | | | | | | |
| | |
Dividends and Distributions (Note 1) | | | | | | | | |
Dividends from net investment income | | | | | | | | |
Class A | | | (1,926,983 | ) | | | (1,807,475 | ) |
Class Z | | | (229,440 | ) | | | (191,113 | ) |
| | | | | | | | |
| | | (2,156,423 | ) | | | (1,998,588 | ) |
| | | | | | | | |
Distributions from net realized gains | | | | | | | | |
Class A | | | (96,064,305 | ) | | | (110,724,220 | ) |
Class B | | | (1,512,412 | ) | | | (2,231,088 | ) |
Class C | | | (2,530,072 | ) | | | (2,873,213 | ) |
Class Z | | | (4,602,880 | ) | | | (4,414,149 | ) |
| | | | | | | | |
| | | (104,709,669 | ) | | | (120,242,670 | ) |
| | | | | | | | |
| | |
Fund share transactions (Net of share conversions) (Note 6) | | | | | | | | |
Net proceeds from shares sold | | | 8,169,522 | | | | 18,598,158 | |
Net asset value of shares issued in reinvestment of dividends and distributions | | | 104,429,414 | | | | 119,040,398 | |
Cost of shares reacquired | | | (67,694,564 | ) | | | (136,483,441 | ) |
| | | | | | | | |
Net increase in net assets from Fund share transactions | | | 44,904,372 | | | | 1,155,115 | |
| | | | | | | | |
Total decrease | | | (151,244,020 | ) | | | (136,507,468 | ) |
| | |
Net Assets: | | | | | | | | |
Beginning of period | | | 1,033,111,865 | | | | 1,169,619,333 | |
| | | | | | | | |
End of period(a) | | $ | 881,867,845 | | | $ | 1,033,111,865 | |
| | | | | | | | |
(a) Includes undistributed net investment income of: | | $ | 2,566,962 | | | $ | 2,423,945 | |
| | | | | | | | |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 27 | |
Notes to Financial Statements (unaudited)
Prudential Jennison Blend Fund, Inc. (the “Fund”), is a diversified open-end management investment company, registered under the Investment Company Act of 1940, as amended (“1940 Act”). The investment objective of the Fund is long-term capital growth.
Note 1. Accounting Policies
The Fund follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.
Securities Valuation: The Fund holds securities and other assets that are fair valued at the close of each day the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to Prudential Investments LLC (“PI” or “Manager”). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.
Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.
Common and preferred stocks, exchange-traded funds, and derivative instruments such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.
In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy.
Common and preferred stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy. Such securities are valued using model prices to the extent that the valuation meets the established confidence level for each security. If the confidence level is not met or the vendor does not provide a model price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.
Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.
Fixed income securities traded in the over-the-counter market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices after evaluating observable inputs including, but not limited to yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations, and reported trades. Securities valued using such vendor prices are classified as Level 2 in the fair value hierarchy.
Bank loans traded in the OTC market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors utilize broker/dealer quotations and provide prices based on the average of such quotations. Bank loans valued using such vendor prices are generally classified as Level 2 in the fair value hierarchy.
OTC derivative instruments are generally valued using pricing vendor services, which derive the valuation based on inputs such as underlying asset prices, indices, spreads, interest rates, and exchange rates. These instruments are categorized as Level 2 in the fair value hierarchy.
Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are generally valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.
Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.
When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 29 | |
Notes to Financial Statements (continued)
the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. 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.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities—at the current rates of exchange.
(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates and market values at the close of the period, the Fund does not generally isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities held at the end of the period. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the period. Accordingly, holding period realized foreign currency gains (losses) are included in the reported net realized gains (losses) on investment transactions. Notwithstanding the above, the Fund does isolate the effect of fluctuations in foreign currency exchange rates when determining the gain (loss) upon the sale or maturity of foreign currency denominated debt obligations; such amounts are included in net realized gains (losses) on foreign currency transactions.
Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from holdings of foreign currencies, forward currency contracts, disposition of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of interest, dividends and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies.
Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a subadvisor may have negotiated and entered into on behalf of the Fund. A master netting arrangement
between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. In addition to master netting arrangements, the right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there was no intention to settle on a net basis and all amounts are presented on a gross basis on the Statement of Assets and Liabilities.
Securities Lending: The Fund may lend its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in a highly liquid short-term money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The borrower receives all interest and dividends and such payments are passed back to the lender in amounts equivalent thereto. The Fund also continues to recognize any unrealized gain (loss) in the market price of the securities loaned that may occur during the term of the loan.
REITs: The Fund invests in real estate investment trusts (“REITs”), which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. These estimates are adjusted periodically when the actual source of distributions is disclosed by the REITs.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis, which may require the use of certain estimates by management that may differ from actual.
Net investment income or loss (other than distribution fees, which are charged directly to the respective class) and unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of adjusted net assets of each class at the beginning of the day.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 31 | |
Notes to Financial Statements (continued)
Dividends and Distributions: The Fund expects to pay dividends from net investment income and distributions from net realized capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-date. Permanent book/tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid-in capital in excess of par, as appropriate.
Taxes: For federal income tax purposes, the Fund is treated as a separate taxpaying entity. 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 and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends are recorded net of reclaimable amounts, at the time the related income is earned.
Estimates: The preparation of 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.
Note 2. Agreements
The Fund 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 Jennison Associates LLC (“Jennison”). The subadvisory agreement provides that Jennison furnishes investment advisory services in connection with the management of the Fund. In connection therewith, Jennison is obligated to keep certain books and records of the Fund. PI pays for the services of Jennison, the cost of compensation of officers, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to PI is accrued daily and payable monthly, at an annual rate of .50% of the Fund’s average daily net assets up to $500 million, .475% of the next $500 million of the Fund’s average daily net assets and .45% of the Fund’s average daily net assets in excess of $1 billion. The effective management fee rate was .49% of the Fund’s average daily net assets for the six months ended February 29, 2016.
The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”) which acts as the distributor of the Class A, Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Distribution
Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund. Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, 1% and 1% of the average daily net assets of the Class A, B and C shares, respectively.
PIMS has advised the Fund that it has received $108,702 in front-end sales charges resulting from sales of Class A shares, during the six months ended February 29, 2016. From these fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Fund that for the six months ended February 29, 2016, it received $7,382 and $311 in contingent deferred sales charges imposed upon redemptions by certain Class B and Class C shareholders, respectively.
PI, PIMS and Jennison 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 Fund’s 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.
PGIM, Inc., an indirect, wholly-owned subsidiary of Prudential, is the Fund’s security lending agent. Net earnings from securities lending are disclosed on the Statement of Operations as “Affiliated income from securities lending, net”. For the six months ended February 29, 2016, PGIM, Inc. has been compensated approximately $118,468 for these services. Effective February 5, 2016, PGIM, Inc. is being paid no compensation for acting as the securities lending agent. Prior to January 4, 2016, PGIM was known as Prudential Investment Management, Inc. (“PIM”).
The Fund invests in the Prudential Core Taxable Money Market Fund (the “Core Fund”), a portfolio of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PI. Earnings from the Core Fund are disclosed on the Statement of Operations as “Affiliated dividend income”. As of March 30, 2016, the Core Fund was repositioned as the Prudential Core Ultra Short Bond Fund.
Note 4. Portfolio Securities
Purchases and sales of portfolio securities, other than short-term investments, for the six months ended February 29, 2016, were $312,043,306 and $369,454,055, respectively.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 33 | |
Notes to Financial Statements (continued)
Note 5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of February 29, 2016 were as follows:
| | | | |
Tax Basis | | $ | 859,734,004 | |
| | | | |
Appreciation | | | 183,351,589 | |
Depreciation | | | (64,942,713 | ) |
| | | | |
Net Unrealized Appreciation | | $ | 118,408,876 | |
| | | | |
The book basis may differ from tax basis due to certain tax related adjustments.
The Fund elected to treat post-October capital losses of approximately $5,384,000 as having been incurred in the following fiscal year (August 31, 2016).
Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provisions for income tax are required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are sold with a front-end sales charge of up to 5.50%. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, including investors who purchase their shares through broker-dealers affiliated with Prudential. The Class A CDSC is waived for purchases by certain retirement or benefit plans. Class B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class B shares are closed to new purchases. Class C shares are sold with a CDSC of 1% during the first 12 months. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.
Under certain circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock.
There are 1 billion shares of common stock, $.01 par value per share, divided into four classes, designated Class A, Class B, Class C and Class Z common stock, each of which consists of 250 million authorized shares.
Transactions in shares of common stock were as follows:
| | | | | | | | |
Class A | | Shares | | | Amount | |
Six months ended February 29, 2016: | | | | | | | | |
Shares sold | | | 302,361 | | | $ | 5,799,490 | |
Shares issued in reinvestment of dividends and distributions | | | 5,102,265 | | | | 95,973,611 | |
Shares reacquired | | | (2,733,621 | ) | | | (52,884,928 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | 2,671,005 | | | | 48,888,173 | |
Shares issued upon conversion from other share class(es) | | | 69,242 | | | | 1,436,994 | |
Shares reacquired upon conversion into other share class(es) | | | (67,107 | ) | | | (1,283,216 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 2,673,140 | | | $ | 49,041,951 | |
| | | | | | | | |
Year ended August 31, 2015: | | | | | | | | |
Shares sold | | | 620,419 | | | $ | 13,615,148 | |
Shares issued in reinvestment of dividends and distributions | | | 5,200,597 | | | | 109,836,613 | |
Shares reacquired | | | (5,220,612 | ) | | | (115,085,397 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | 600,404 | | | | 8,366,364 | |
Shares issued upon conversion from other share class(es) | | | 202,773 | | | | 4,478,134 | |
Shares reacquired upon conversion into other share class(es) | | | (416,730 | ) | | | (9,154,435 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 386,447 | | | $ | 3,690,063 | |
| | | | | | | | |
Class B | | | | | | |
Six months ended February 29, 2016: | | | | | | | | |
Shares sold | | | 5,366 | | | $ | 102,502 | |
Shares issued in reinvestment of dividends and distributions | | | 86,878 | | | | 1,497,773 | |
Shares reacquired | | | (38,550 | ) | | | (672,584 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | 53,694 | | | | 927,691 | |
Shares reacquired upon conversion into other share class(es) | | | (74,483 | ) | | | (1,428,466 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (20,789 | ) | | $ | (500,775 | ) |
| | | | | | | | |
Year ended August 31, 2015: | | | | | | | | |
Shares sold | | | 11,752 | | | $ | 239,651 | |
Shares issued in reinvestment of dividends and distributions | | | 111,758 | | | | 2,193,805 | |
Shares reacquired | | | (96,993 | ) | | | (2,001,815 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | 26,517 | | | | 431,641 | |
Shares reacquired upon conversion into other share class(es) | | | (216,621 | ) | | | (4,449,460 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (190,104 | ) | | $ | (4,017,819 | ) |
| | | | | | | | |
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 35 | |
Notes to Financial Statements (continued)
| | | | | | | | |
Class C | | Shares | | | Amount | |
Six months ended February 29, 2016: | | | | | | | | |
Shares sold | | | 62,083 | | | $ | 1,099,209 | |
Shares issued in reinvestment of dividends and distributions | | | 132,997 | | | | 2,294,207 | |
Shares reacquired | | | (108,905 | ) | | | (1,933,126 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | 86,175 | | | | 1,460,290 | |
Shares reacquired upon conversion into other share class(es) | | | (7,370 | ) | | | (138,009 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 78,805 | | | $ | 1,322,281 | |
| | | | | | | | |
Year ended August 31, 2015: | | | | | | | | |
Shares sold | | | 72,371 | | | $ | 1,474,650 | |
Shares issued in reinvestment of dividends and distributions | | | 131,142 | | | | 2,575,633 | |
Shares reacquired | | | (162,567 | ) | | | (3,347,485 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | 40,946 | | | | 702,798 | |
Shares reacquired upon conversion into other share class(es) | | | (7,486 | ) | | | (152,454 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 33,460 | | | $ | 550,344 | |
| | | | | | | | |
Class Z | | | | | | |
Six months ended February 29, 2016: | | | | | | | | |
Shares sold | | | 61,344 | | | $ | 1,168,321 | |
Shares issued in reinvestment of dividends and distributions | | | 248,076 | | | | 4,663,823 | |
Shares reacquired | | | (644,499 | ) | | | (12,203,926 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (335,079 | ) | | | (6,371,782 | ) |
Shares issued upon conversion from other share class(es) | | | 73,416 | | | | 1,412,697 | |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | (261,663 | ) | | $ | (4,959,085 | ) |
| | | | | | | | |
Year ended August 31, 2015: | | | | | | | | |
Shares sold | | | 150,373 | | | $ | 3,268,709 | |
Shares issued in reinvestment of dividends and distributions | | | 209,959 | | | | 4,434,347 | |
Shares reacquired | | | (713,416 | ) | | | (16,048,744 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding before conversion | | | (353,084 | ) | | | (8,345,688 | ) |
Shares issued upon conversion from other shares class(es) | | | 422,158 | | | | 9,285,648 | |
Shares reacquired upon conversion into other share class(es) | | | (361 | ) | | | (7,433 | ) |
| | | | | | | | |
Net increase (decrease) in shares outstanding | | | 68,713 | | | $ | 932,527 | |
| | | | | | | | |
Note 7. Borrowings
The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 8, 2015 through October 6, 2016. The Funds pay an annualized commitment fee of .11% of the unused portion of the SCA. Prior to October 8, 2015, the Fund had another SCA that provided a commitment of $900 million and the Funds paid an annualized commitment fee of .075%
of the unused portion of the SCA. Interest on any borrowings under the SCA is paid at contracted market rates. The Fund’s portion of the commitment fee for the unused amount is accrued daily and paid quarterly.
The Fund did not utilize the SCA during the six months ended February 29, 2016.
Note 8. New Accounting Pronouncement
In May 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-07 regarding “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share”. The amendments in this update are effective for the Fund for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU No. 2015-07 will eliminate the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (“NAV”) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. Management has evaluated the implications of ASU No. 2015-07 and has determined that there is no impact on the financial statement disclosures.
In January 2016, the FASB issued ASU No. 2016-01 regarding “Recognition and Measurement of Financial Assets and Financial Liabilities”. The new guidance is intended to enhance the reporting model for financial instruments to provide users of financial statements with more decision-useful information and addresses certain aspects of the recognition, measurement, presentation, and disclosure of financial instruments. The new standard affects all entities that hold financial assets or owe financial liabilities. The new guidance is effective for public companies for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. At this time, management is evaluating the implications of ASU No. 2016-01 and its impact on the financial statements and disclosures has not yet been determined.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 37 | |
Financial Highlights (unaudited)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class A Shares | |
| | Six Months Ended February 29, | | | | | Year Ended August 31, | |
| | 2016 | | | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | | $20.82 | | | | | | $23.71 | | | | $21.64 | | | | $17.75 | | | | $16.68 | | | | $13.95 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .05 | | | | | | .08 | | | | .05 | | | | .15 | | | | .05 | | | | .03 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.73 | ) | | | | | (.41 | ) | | | 4.44 | | | | 3.83 | | | | 1.05 | | | | 2.73 | |
Total from investment operations | | | (1.68 | ) | | | | | (.33 | ) | | | 4.49 | | | | 3.98 | | | | 1.10 | | | | 2.76 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.04 | ) | | | | | (.04 | ) | | | (.12 | ) | | | (.09 | ) | | | (.03 | ) | | | (.03 | ) |
Distributions from net realized gains | | | (2.16 | ) | | | | | (2.52 | ) | | | (2.30 | ) | | | - | | | | - | | | | - | |
Total dividends and distributions | | | (2.20 | ) | | | | | (2.56 | ) | | | (2.42 | ) | | | (.09 | ) | | | (.03 | ) | | | (.03 | ) |
Capital Contributions(e): | | | - | | | | | | - | | | | - | | | | - | | | | - | | | | - | (d) |
Net asset value, end of period | | | $16.94 | | | | | | $20.82 | | | | $23.71 | | | | $21.64 | | | | $17.75 | | | | $16.68 | |
Total Return(b): | | | (9.11)% | | | | | | (1.54)% | | | | 22.00% | | | | 22.50% | | | | 6.59% | | | | 19.82% | |
| |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | |
Net assets, end of period (000,000) | | | $818 | | | | | | $950 | | | | $1,072 | | | | $973 | | | | $887 | | | | $931 | |
Average net assets (000,000) | | | $906 | | | | | | $1,029 | | | | $1,041 | | | | $930 | | | | $910 | | | | $1,017 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | .98% | (f) | | | | | .96% | | | | .95% | | | | .97% | | | | 1.00% | | | | 1.00% | |
Expenses before waivers and/or expense reimbursement | | | .98% | (f) | | | | | .96% | | | | .95% | | | | .97% | | | | 1.00% | | | | 1.00% | |
Net investment income | | | .48% | (f) | | | | | .37% | | | | .22% | | | | .77% | | | | .31% | | | | .18% | |
Portfolio turnover rate | | | 33% | (g) | | | | | 46% | | | | 54% | | | | 73% | | | | 110% | | | | 143% | |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a 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, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Fund invests. |
(d) | Less than $.005 per share. |
(e) | The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended August 31, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement. |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class B Shares | |
| | Six Months Ended February 29, | | | | | Year Ended August 31, | |
| | 2016 | | | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | | $19.26 | | | | | | $22.23 | | | | $20.44 | | | | $16.81 | | | | $15.88 | | | | $13.34 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | (.02 | ) | | | | | (.07 | ) | | | (.10 | ) | | | .01 | | | | (.06 | ) | | | (.08 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.58 | ) | | | | | (.38 | ) | | | 4.19 | | | | 3.62 | | | | .99 | | | | 2.62 | |
Total from investment operations | | | (1.60 | ) | | | | | (.45 | ) | | | 4.09 | | | | 3.63 | | | | .93 | | | | 2.54 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | - | | | | | | - | | | | - | | | | - | (d) | | | - | | | | - | |
Distributions from net realized gains | | | (2.16 | ) | | | | | (2.52 | ) | | | (2.30 | ) | | | - | | | | - | | | | - | |
Total dividends and distributions | | | (2.16 | ) | | | | | (2.52 | ) | | | (2.30 | ) | | | - | (d) | | | - | | | | - | |
Capital Contributions(e): | | | - | | | | | | - | | | | - | | | | - | | | | - | | | | - | (d) |
Net asset value, end of period | | | $15.50 | | | | | | $19.26 | | | | $22.23 | | | | $20.44 | | | | $16.81 | | | | $15.88 | |
Total Return(b): | | | (9.45)% | | | | | | (2.23)% | | | | 21.20% | | | | 21.63% | | | | 5.86% | | | | 19.04% | |
| |
Ratios/Supplemental Data: | |
Net assets, end of period (000,000) | | | $12 | | | | | | $15 | | | | $22 | | | | $23 | | | | $23 | | | | $29 | |
Average net assets (000,000) | | | $14 | | | | | | $18 | | | | $23 | | | | $23 | | | | $26 | | | | $35 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.68% | (f) | | | | | 1.66% | | | | 1.65% | | | | 1.67% | | | | 1.70% | | | | 1.70% | |
Expenses before waivers and/or expense reimbursement | | | 1.68% | (f) | | | | | 1.66% | | | | 1.65% | | | | 1.67% | | | | 1.70% | | | | 1.70% | |
Net investment income (loss) | | | (.22)% | (f) | | | | | (.32)% | | | | (.48)% | | | | .08% | | | | (.40)% | | | | (.52)% | |
Portfolio turnover rate | | | 33% | (g) | | | | | 46% | | | | 54% | | | | 73% | | | | 110% | | | | 143% | |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a 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, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Fund invests. |
(d) | Less than $.005 per share. |
(e) | The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended August 31, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement. |
See Notes to Financial Statements.
| | | | |
Prudential Jennison Blend Fund, Inc. | | | 39 | |
Financial Highlights (unaudited) (continued)
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class C Shares | |
| | Six Months Ended February 29, | | | | | Year Ended August 31, | |
| | 2016 | | | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | | $19.27 | | | | | | $22.23 | | | | $20.45 | | | | $16.82 | | | | $15.88 | | | | $13.35 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income (loss) | | | (.02 | ) | | | | | (.07 | ) | | | (.10 | ) | | | .01 | | | | (.06 | ) | | | (.09 | ) |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.58 | ) | | | | | (.37 | ) | | | 4.18 | | | | 3.62 | | | | 1.00 | | | | 2.62 | |
Total from investment operations | | | (1.60 | ) | | | | | (.44 | ) | | | 4.08 | | | | 3.63 | | | | .94 | | | | 2.53 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | - | | | | | | - | | | | - | | | | - | (d) | | | - | | | | - | |
Distributions from net realized gains | | | (2.16 | ) | | | | | (2.52 | ) | | | (2.30 | ) | | | - | | | | - | | | | - | |
Total dividends and distributions | | | (2.16 | ) | | | | | (2.52 | ) | | | (2.30 | ) | | | - | (d) | | | - | | | | - | |
Capital Contributions(e): | | | - | | | | | | - | | | | - | | | | - | | | | - | | | | - | (d) |
Net asset value, end of period | | | $15.51 | | | | | | $19.27 | | | | $22.23 | | | | $20.45 | | | | $16.82 | | | | $15.88 | |
Total Return(b): | | | (9.44)% | | | | | | (2.19)% | | | | 21.14% | | | | 21.61% | | | | 5.92% | | | | 18.95% | |
| |
Ratios/Supplemental Data: | |
Net assets, end of period (000,000) | | | $20 | | | | | | $23 | | | | $26 | | | | $25 | | | | $23 | | | | $24 | |
Average net assets (000,000) | | | $22 | | | | | | $25 | | | | $26 | | | | $23 | | | | $24 | | | | $26 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | 1.68% | (f) | | | | | 1.66% | | | | 1.65% | | | | 1.67% | | | | 1.70% | | | | 1.70% | |
Expenses before waivers and/or expense reimbursement | | | 1.68% | (f) | | | | | 1.66% | | | | 1.65% | | | | 1.67% | | | | 1.70% | | | | 1.70% | |
Net investment income (loss) | | | (.22)% | (f) | | | | | (.33)% | | | | (.48)% | | | | .07% | | | | (.39)% | | | | (.52)% | |
Portfolio turnover rate | | | 33% | (g) | | | | | 46% | | | | 54% | | | | 73% | | | | 110% | | | | 143% | |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a 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, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Fund invests. |
(d) | Less than $.005 per share. |
(e) | The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended August 31, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement. |
See Notes to Financial Statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
Class Z Shares | |
| | Six Months Ended February 29, | | | | | Year Ended August 31, | |
| | 2016 | | | | | 2015 | | | 2014 | | | 2013 | | | 2012 | | | 2011 | |
Per Share Operating Performance(a): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, Beginning of Period | | | $20.86 | | | | | | $23.76 | | | | $21.67 | | | | $17.78 | | | | $16.71 | | | | $13.97 | |
Income (loss) from investment operations: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income | | | .08 | | | | | | .15 | | | | .12 | | | | .21 | | | | .10 | | | | .08 | |
Net realized and unrealized gain (loss) on investment and foreign currency transactions | | | (1.73 | ) | | | | | (.42 | ) | | | 4.46 | | | | 3.82 | | | | 1.05 | | | | 2.74 | |
Total from investment operations | | | (1.65 | ) | | | | | (.27 | ) | | | 4.58 | | | | 4.03 | | | | 1.15 | | | | 2.82 | |
Less Dividends and Distributions: | | | | | | | | | | | | | | | | | | | | | | | | | | |
Dividends from net investment income | | | (.11 | ) | | | | | (.11 | ) | | | (.19 | ) | | | (.14 | ) | | | (.08 | ) | | | (.08 | ) |
Distributions from net realized gains | | | (2.16 | ) | | | | | (2.52 | ) | | | (2.30 | ) | | | - | | | | - | | | | - | |
Total dividends and distributions | | | (2.27 | ) | | | | | (2.63 | ) | | | (2.49 | ) | | | (.14 | ) | | | (.08 | ) | | | (.08 | ) |
Capital Contributions(e): | | | - | | | | | | - | | | | - | | | | - | | | | - | | | | - | (d) |
Net asset value, end of period | | | $16.94 | | | | | | $20.86 | | | | $23.76 | | | | $21.67 | | | | $17.78 | | | | $16.71 | |
Total Return(b): | | | (9.00)% | | | | | | (1.27)% | | | | 22.43% | | | | 22.82% | | | | 6.94% | | | | 20.22% | |
| |
Ratios/Supplemental Data: | |
Net assets, end of period (000,000) | | | $32 | | | | | | $45 | | | | $49 | | | | $41 | | | | $38 | | | | $57 | |
Average net assets (000,000) | | | $41 | | | | | | $43 | | | | $45 | | | | $39 | | | | $43 | | | | $56 | |
Ratios to average net assets(c): | | | | | | | | | | | | | | | | | | | | | | | | | | |
Expenses after waivers and/or expense reimbursement | | | .68% | (f) | | | | | .66% | | | | .65% | | | | .67% | | | | .70% | | | | .70% | |
Expenses before waivers and/or expense reimbursement | | | .68% | (f) | | | | | .66% | | | | .65% | | | | .67% | | | | .70% | | | | .70% | |
Net investment income | | | .77% | (f) | | | | | .67% | | | | .52% | | | | 1.08% | | | | .60% | | | | .48% | |
Portfolio turnover rate | | | 33% | (g) | | | | | 46% | | | | 54% | | | | 73% | | | | 110% | | | | 143% | |
(a) | Calculated based on average shares outstanding during the period. |
(b) | Total return is calculated assuming a 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, if any. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods less than one full year are not annualized. |
(c) | Does not include expenses of the underlying portfolio in which the Fund invests. |
(d) | Less than $.005 per share. |
(e) | The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal year ended August 31, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement. |
See Notes to Financial Statements.
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Prudential Jennison Blend Fund, Inc. | | | 41 | |
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n MAIL | | n TELEPHONE | | n WEBSITE |
655 Broad Street Newark, NJ 07102 | | (800) 225-1852 | | www.prudentialfunds.com |
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PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website. |
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DIRECTORS |
Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stuart S. Parker • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres |
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OFFICERS |
Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Amanda S. Ryan, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer |
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MANAGER | | Prudential Investments LLC | | 655 Broad Street Newark, NJ 07102 |
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INVESTMENT SUBADVISER | | Jennison Associates LLC | | 466 Lexington Avenue New York, NY 10017 |
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DISTRIBUTOR | | Prudential Investment Management Services LLC | | 655 Broad Street Newark, NJ 07102 |
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CUSTODIAN | | The Bank of New York Mellon | | One Wall Street New York, NY 10286 |
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TRANSFER AGENT | | Prudential Mutual Fund Services LLC | | PO Box 9658 Providence, RI 02940 |
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | | KPMG LLP | | 345 Park Avenue New York, NY 10154 |
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FUND COUNSEL | | Willkie Farr & Gallagher LLP | | 787 Seventh Avenue New York, NY 10019 |
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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing. |
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E-DELIVERY |
To receive your mutual fund documents online, go to www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above. |
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SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Jennison Blend Fund, Inc., Prudential Investments, Attn: Board of Directors, 655 Broad Street, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee. |
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AVAILABILITY OF PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month no sooner than 15 days after the end of the month. |
Mutual Funds:
| | | | |
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY | | MAY LOSE VALUE | | ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE |
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PRUDENTIAL JENNISON BLEND FUND, INC.
| | | | | | | | |
SHARE CLASS | | A | | B | | C | | Z |
NASDAQ | | PBQAX | | PBQFX | | PRECX | | PEQZX |
CUSIP | | 74441T108 | | 74441T207 | | 74441T306 | | 74441T405 |
MF1O1E2 0290833-00001-00
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.
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Registrant: | | Prudential Jennison BlendFund, Inc. |
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By: | | /s/ Deborah A. Docs |
| | Deborah A. Docs |
| | Secretary |
| |
Date: | | April 18, 2016 |
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.
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By: | | /s/ Stuart S. Parker |
| | Stuart S. Parker |
| | President and Principal Executive Officer |
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Date: | | April 18, 2016 |
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By: | | /s/ M. Sadiq Peshimam |
| | M. Sadiq Peshimam |
| | Treasurer and Principal Financial and Accounting Officer |
| |
Date: | | April 18, 2016 |