UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: | 811-03981 | |
Exact name of registrant as specified in charter: | Prudential World Fund, Inc. | |
Address of principal executive offices: | Gateway Center 3, | |
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Deborah A. Docs | |
Gateway Center 3, | ||
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 800-225-1852 | |
Date of fiscal year end: | 10/31/2007 | |
Date of reporting period: | 4/30/2007 |
Item | 1 | – | Reports to Stockholders |
Dryden International Equity Fund
APRIL 30, 2007 | SEMIANNUAL REPORT |
FUND TYPE
Global/International stock
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 April 30, 2007, were not audited, and accordingly, no auditor’s opinion is expressed on them.
JennisonDryden is a registered trademark of The Prudential Insurance Company of America.
June 15, 2007
Dear Shareholder:
On the following pages, you’ll find your Fund’s semiannual report, including a table showing fund performance over the first half of the fiscal year and for longer periods. The report also contains a listing of the Fund’s holdings at period-end. The semiannual report is an interim statement furnished between the Fund’s annual reports, which include an analysis of Fund performance over the fiscal year in addition to the other data.
Mutual fund prices and returns will rise or fall over time, and asset managers tend to have periods when they perform better or worse than their long-term average. The best measures of a mutual fund’s quality are its return compared to that of similar investments and the variability of its return over the long term. We recommend that you review your portfolio regularly with your financial adviser, who has access to frequent reports on the factors affecting the Fund’s return and should be able to answer your questions.
Sincerely,
Judy A. Rice, President
Prudential World Fund, Inc.
Dryden International Equity Fund | 1 |
Your Fund’s Performance
Fund objective
The investment objective of the Dryden International Equity Fund is long-term growth of capital. There can be no assurance that the Fund will achieve its investment objective.
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.jennisondryden.com or by calling (800) 225-1852. Class A and Class L shares have a maximum initial sales charge of 5.50% and 5.75%, respectively. Gross operating expenses: Class A, 1.33%; Class B, 2.03%; Class C, 2.03%; Class F, 1.78%; Class L, 1.53%; Class M, 2.03%; Class X, 2.03%; Class Z, 1.03%. Net Operating Expenses apply to: Class A, 1.28%; Class B, 2.03%; Class C, 2.03%; Class F, 1.78%; Class L, 1.53%; Class M, 2.03%; Class X, 2.03%; Class Z, 1.03%, after contractual reduction through 2/28/2008.
Cumulative Total Returns as of 4/30/07 | |||||||||||
Six Months | One Year | Five Years | Since Inception1 | ||||||||
Class A | 14.34 | % | 17.50 | % | 111.41 | % | –0.85% (3/1/00) | ||||
Class B | 13.92 | 16.61 | 103.71 | –6.09 (3/1/00) | |||||||
Class C | 13.92 | 16.61 | 103.71 | –6.09 (3/1/00) | |||||||
Class F | N/A | N/A | N/A | 8.53 (12/18/06) | |||||||
Class L | N/A | N/A | N/A | 7.85 (3/19/07) | |||||||
Class M | N/A | N/A | N/A | 7.65 (3/19/07) | |||||||
Class X | N/A | N/A | N/A | 7.65 (3/19/07) | |||||||
Class Z | 14.43 | 17.71 | 113.53 | 0.57 (3/1/00) | |||||||
MSCI EAFE® ND Index2 | 15.46 | 19.81 | 115.88 | ** | |||||||
Lipper International Multi-Cap Growth Funds Avg.3 | 14.93 | 16.32 | 103.33 | *** | |||||||
Average Annual Total Returns4 as of 3/31/07 | |||||||||||
One Year | Five Years | Since Inception1 | |||||||||
Class A | 12.17 | % | 13.47 | % | –1.46% (3/1/00) | ||||||
Class B | 12.95 | 13.75 | –1.42 (3/1/00) | ||||||||
Class C | 16.95 | 13.87 | –1.42 (3/1/00) | ||||||||
Class F | N/A | N/A | N/A (12/18/06) | ||||||||
Class L | N/A | N/A | N/A (3/19/07) | ||||||||
Class M | N/A | N/A | N/A (3/19/07) | ||||||||
Class X | N/A | N/A | N/A (3/19/07) | ||||||||
Class Z | 19.04 | 15.00 | –0.47 (3/1/00) | ||||||||
MSCI EAFE® ND Index2 | 20.20 | 15.68 | ** | ||||||||
Lipper International Multi-Cap Growth Funds Avg.3 | 17.96 | 14.62 | *** |
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The cumulative total returns do not reflect the deduction of applicable sales charges. If reflected, the applicable sales charges would reduce the cumulative total returns performance quoted. The average annual total returns assume the payment of the maximum applicable sales charge. Class A and Class L shares are subject to a maximum front-end sales charge of 5.50% and 5.75%, respectively. Under certain circumstances, Class A shares may be subject to a contingent deferred sales charge (CDSC) of 1%. Class B, Class C, Class F, Class L, Class M, and Class X shares are subject to a maximum CDSC of 5%, 1%, 5%, 1%, 6%, and 6%, respectively. Class Z shares are not subject to a sales charge.
Source: Prudential Investments LLC and Lipper Inc. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of such fee waivers and/or expense reimbursements, total returns would be lower.
1Inception dates: Class A, Class B, Class C, and Class Z, 3/1/2000; Class F, 12/18/2006; Class L, Class M, and Class X, 3/19/07. The Since Inception returns for the MSCI EAFE® ND Index and the Lipper International Multi-Cap Growth Funds Average (Lipper Average) are measured from the closest month-end to inception date, and not from the Fund’s actual inception date.
2The Morgan Stanley Capital International Europe, Australasia, and Far East (MSCI EAFE® ND) Index is an unmanaged, weighted index of performance that reflects stock price movements of developed-country markets in Europe, Australasia, and the Far East. The ND version of the MSCI EAFE Index reflects the impact of the maximum withholding taxes on reinvested dividends.
3The Lipper Average represents returns based on an average return of all funds in the Lipper International 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. Multi-cap funds typically have 25% to 75% of their assets invested in companies strictly outside of the United States with market capitalizations (on a three-year weighted basis) greater than the 250th largest company in the S&P/Citigroup World ex-U.S. Broad Market Index (BMI). Multi-cap growth funds typically have an above-average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared with the S&P/Citigroup World ex-U.S. BMI.
4The average annual total returns take into account applicable sales charges. Class A, Class B, Class C, Class F, Class L, Class M, and Class X shares are subject to an annual distribution and service (12b-1) fee of up to 0.30%, 1.00%, 1.00%, 0.75%, 0.50%, 1.00%, and 1.00%, respectively. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class Z shares are not subject to a 12b-1 fee. 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.
**MSCI EAFE® ND Index Closest Month-End to Inception cumulative total returns as of 4/30/2007 are 53.14% for Class A, Class B, Class C, and Class Z. MSCI EAFE® ND Index Closest Month-End to Inception average annual total returns as of 3/31/2007 are 5.55% for Class A, Class B, Class C, and Class Z. Class F, Class L, Class M, and Class X shares are new share classes and no performance information is available for these new share classes.
***Lipper Average Closest Month-End to Inception cumulative total returns as of 4/30/2007 are 20.49% for Class A, Class B, Class C, and Class Z. Lipper Average Closest Month-End to Inception average annual total returns as of 3/31/2007 are 1.58% for Class A, Class B, Class C, and Class Z. Class F, Class L, Class M, and Class X shares are new share classes and no performance information is available for these new share classes.
Dryden International Equity Fund | 3 |
Your Fund’s Performance (continued)
Investors cannot invest directly in an index. The returns for the MSCI EAFE® ND Index and the Lipper Average would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.
Five Largest Holdings in Long-Term Portfolio expressed as a percentage of net assets as of 4/30/07 | |||
Toyota Motor Corp., Automobiles | 1.7 | % | |
Total SA, Oil, Gas & Consumable Fuels | 1.7 | ||
Royal Bank of Scotland Group PLC, Commercial Banks | 1.3 | ||
UBS AG, Commercial Banks | 1.3 | ||
Tesco PLC, Food & Staples Retailing | 1.3 |
Holdings are subject to change.
Five Largest Industries in Long-Term Portfolio expressed as a percentage of net assets as of 4/30/07 | |||
Commercial Banks | 15.6 | % | |
Oil, Gas & Consumable Fuels | 6.8 | ||
Insurance | 5.8 | ||
Metals & Mining | 5.1 | ||
Pharmaceuticals | 5.0 |
Industry weightings are subject to change.
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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 November 1, 2006, at the beginning of the period, and held through the six-month period ended April 30, 2007. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
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 JennisonDryden or Strategic Partners Funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
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
Dryden International Equity Fund | 5 |
Fees and Expenses (continued)
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.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges (loads). Therefore the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Dryden International Equity Fund | Beginning Account Value November 1, 2006 | Ending Account April 30, 2007 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six- Month Period* | ||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,143.40 | 1.28 | % | $ | 6.80 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,018.50 | 1.28 | % | $ | 6.41 | ||||||
Class B | Actual | $ | 1,000.00 | $ | 1,139.20 | 2.03 | % | $ | 10.77 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,014.78 | 2.03 | % | $ | 10.14 | ||||||
Class C | Actual | $ | 1,000.00 | $ | 1,139.20 | 2.03 | % | $ | 10.77 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,014.78 | 2.03 | % | $ | 10.14 | ||||||
Class F | Actual** | $ | 1,000.00 | $ | 1,085.30 | 1.78 | % | $ | 6.81 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,016.02 | 1.78 | % | $ | 8.90 | ||||||
Class L | Actual** | $ | 1,000.00 | $ | 1,078.50 | 1.53 | % | $ | 1.87 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,017.26 | 1.53 | % | $ | 7.65 | ||||||
Class M | Actual** | $ | 1,000.00 | $ | 1,076.50 | 2.03 | % | $ | 2.48 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,014.78 | 2.03 | % | $ | 10.14 | ||||||
Class X | Actual** | $ | 1,000.00 | $ | 1,076.50 | 2.03 | % | $ | 2.48 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,014.78 | 2.03 | % | $ | 10.14 | ||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,144.30 | 1.03 | % | $ | 5.48 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,019.74 | 1.03 | % | $ | 5.16 | ||||||
* 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 181 days in the six-month period ended April 30, 2007, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2007 (to reflect the six-month period), with the exception of
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the Class F “Actual” information, which reflects the 134-day period ended April 30, 2007 due to its inception date of December 18, 2006, and with the exception of the Class L, M, and X “Actual” information, which reflects the 43-day period ended April 30, 2007 due to its inception date of March 19, 2007. Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
** Class F shares commenced operations on December 18, 2006. Class L, M, and X shares commenced operations on March 19, 2007.
Dryden International Equity Fund | 7 |
Portfolio of Investments
as of April 30, 2007 (Unaudited)
Shares | Description | Value (Note 1) | |||
LONG-TERM INVESTMENTS 98.2% | |||||
COMMON STOCKS 97.6% | |||||
Australia 6.3% | |||||
82,554 | APN News & Media, Ltd. | $ | 411,327 | ||
216,390 | Australia and New Zealand Banking Group, Ltd. | 5,467,380 | |||
67,725 | Babcock & Brown, Ltd. | 1,652,611 | |||
60,983 | BHP Billiton Ltd. | 1,488,862 | |||
107,505 | BlueScope Steel, Ltd. | 1,067,413 | |||
210,553 | Challenger Financial Services Group, Ltd. | 920,865 | |||
26,953 | Cochlear, Ltd. | 1,411,675 | |||
123,776 | Commonwealth Bank of Australia | 5,397,389 | |||
94,157 | CSL, Ltd. | 6,782,304 | |||
187,514 | Downer EDI, Ltd. | 1,160,909 | |||
331,246 | Goodman Fielder Ltd. | 657,780 | |||
773,696 | GPT Group | 3,168,839 | |||
60,000 | ING Industrial Fund | 121,177 | |||
17,569 | Leighton Holdings Ltd. | 505,709 | |||
32,052 | Lend Lease Corp., Ltd. | 528,102 | |||
89,655 | Macquarie Bank, Ltd. | 6,424,468 | |||
1,541,922 | Macquarie Infrastructure Group | 4,832,244 | |||
367,474 | Mirvac Group | 1,595,572 | |||
54,996 | National Australian Bank, Ltd. | 1,953,589 | |||
31,513 | Origin Energy, Ltd. | 237,399 | |||
349,046 | Pacific Brands, Ltd. | 933,876 | |||
94,300 | QBE Insurance Group, Ltd. | 2,391,376 | |||
556,628 | Quantas Airways, Ltd. | 2,445,242 | |||
205,261 | Santos, Ltd. | 1,900,939 | |||
94,301 | Stockland | 671,463 | |||
260,361 | Westpac Banking Corp. | 5,812,825 | |||
343,183 | Woolworths, Ltd. | 8,037,805 | |||
127,166 | WorleyParsons, Ltd. | 2,888,093 | |||
70,867,233 | |||||
Austria 0.1% | |||||
9,112 | Voestalpine AG | 612,078 | |||
Belgium 2.0% | |||||
110,017 | Belgacom SA | 4,835,425 | |||
178,309 | Dexia | 5,815,824 | |||
70,744 | Fortis | 3,179,144 | |||
96,970 | InBev NV | 7,559,033 | |||
13,151 | Mobistar SA | 1,137,649 | |||
22,527,075 |
See Notes to Financial Statements.
Dryden International Equity Fund | 9 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d
Shares | Description | Value (Note 1) | |||
Denmark 0.7% | |||||
158,932 | Danske Bank A/S | $ | 7,421,835 | ||
11,400 | Det Ostasiatiske Kompagni A/S (The East Asiatic Company, Ltd.) | 593,703 | |||
5,675 | Jyske Bank A/S(a) | 455,628 | |||
8,471,166 | |||||
Finland 1.4% | |||||
120,250 | Neste Oil Oyj | 4,245,701 | |||
146,244 | Nokia Oyj(a) | 3,689,150 | |||
46,200 | OKO Bank PLC | 876,721 | |||
88,800 | Outokumpu Oyj (Class A) | 2,950,636 | |||
57,214 | Rautaruukki Oyj | 3,085,074 | |||
37,600 | UPM-Kymmene Oyj | 926,664 | |||
15,773,946 | |||||
France 10.3% | |||||
127,138 | Air France-KLM | 6,484,041 | |||
3,863 | Alstom(a) | 574,380 | |||
148,946 | AXA SA | 6,838,650 | |||
88,534 | BNP Paribas | 10,270,872 | |||
34,681 | Business Objects SA(a) | 1,298,053 | |||
12,802 | Capgemini SA | 968,319 | |||
4,623 | Casino Guichard Perrachon SA | 496,636 | |||
3,169 | CNP Assurances | 403,979 | |||
10,423 | Compagnie de Saint-Gobain | 1,112,964 | |||
35,117 | Compagnie Generale des Etablissements Michelin (Class B) | 4,474,224 | |||
49,313 | Credit Agricole SA | 2,076,534 | |||
335,724 | France Telecom SA | 9,817,303 | |||
96,729 | Gaz de France SA | 4,539,118 | |||
7,223 | Groupe Danone | 1,187,603 | |||
47,499 | Lafarge SA | 7,711,325 | |||
14,914 | Peugeot SA | 1,210,071 | |||
141,911 | Sanofi-Aventis | 12,990,082 | |||
24,174 | Schneider Electric SA | 3,409,528 | |||
47,114 | Societe Generale | 9,984,575 | |||
62,762 | Thomson | 1,209,447 | |||
252,280 | Total SA | 18,597,601 | |||
4,710 | Vallourec | 1,282,763 | |||
224,101 | Vivendi | 9,244,004 | |||
116,182,072 |
See Notes to Financial Statements.
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Shares | Description | Value (Note 1) | |||
Germany 7.6% | |||||
60,435 | Allianz SE | $ | 13,756,407 | ||
56,948 | Altana AG | 4,231,130 | |||
86,594 | BASF AG | 10,335,173 | |||
17,336 | Commerzbank AG | 865,073 | |||
4,127 | DaimlerChrysler AG | 333,692 | |||
81,379 | Deutsche Bank AG | 12,493,806 | |||
5,195 | Deutsche Boerse AG | 1,217,888 | |||
13,318 | Deutsche Lufthansa AG | 397,360 | |||
61,236 | E.ON AG | 9,202,057 | |||
5,613 | Fresenius Medical Care AG | 840,913 | |||
4,876 | Hypo Real Estate Holding AG | 325,083 | |||
4,404 | MAN AG | 586,618 | |||
30,050 | Muenchener Rueckversicherungs-Gesellschaft AG | 5,330,167 | |||
36,551 | RWE AG | 3,863,006 | |||
18,218 | Salzgitter AG | 2,994,585 | |||
63,955 | Siemens AG | 7,719,959 | |||
86,459 | Suedzucker AG | 1,772,153 | |||
137,890 | ThyssenKrupp AG | 7,364,558 | |||
9,078 | Volkswagen AG | 1,370,656 | |||
11,310 | Wincor Nixdorf AG | 1,098,155 | |||
86,098,439 | |||||
Greece 0.4% | |||||
12,430 | Coca-Cola Hellenic Bottling Co. SA | 538,912 | |||
16,280 | Cosmote Mobile Telecommunications SA | 511,656 | |||
65,823 | National Bank of Greece SA | 3,687,076 | |||
6,175 | Titan Cement Co. SA | 351,499 | |||
5,089,143 | |||||
Hong Kong 0.9% | |||||
160,900 | Cheung Kong Holdings, Ltd. | 2,084,494 | |||
76,000 | Cheung Kong Infrastructure Holdings Ltd. | 271,736 | |||
59,000 | CLP Holdings, Ltd. | 430,952 | |||
256,200 | Esprit Holdings, Ltd. | 3,105,086 | |||
206,652 | Hong Kong Exchanges and Clearing, Ltd. | 1,968,697 | |||
78,000 | Hopewell Holdings | 343,211 | |||
28,500 | Swire Pacific, Ltd. (Class A) | 325,441 | |||
563,000 | Wharf Holdings, Ltd. | 2,072,374 | |||
10,601,991 |
See Notes to Financial Statements.
Dryden International Equity Fund | 11 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d
Shares | Description | Value (Note 1) | |||
Ireland 0.6% | |||||
47,743 | Allied Irish Banks PLC | $ | 1,445,916 | ||
129,884 | Anglo Irish Bank Corp. PLC | 2,919,366 | |||
87,982 | Bank of Ireland | 1,888,302 | |||
6,378 | CRH PLC | 279,543 | |||
3,409 | Irish Life & Permanent PLC | 90,251 | |||
6,623,378 | |||||
Italy 3.1% | |||||
43,110 | Banche Popolari Unite SCPA | 1,304,464 | |||
68,072 | Banco Popolare di Verona e Novara Scrl | 2,272,673 | |||
224,053 | Enel SpA | 2,546,239 | |||
276,435 | ENI SpA | 9,167,617 | |||
57,515 | Fiat SpA(a) | 1,689,666 | |||
20,903 | Fondiaria-SAI SpA | 1,107,056 | |||
20,175 | Italcementi SpA | 644,545 | |||
14,297 | Luxottica Group SpA | 496,269 | |||
1,552,967 | Telecom Italia SpA | 3,793,843 | |||
1,192,076 | UniCredito Italiano SpA | 12,247,764 | |||
35,270,136 | |||||
Japan 21.0% | |||||
63,300 | Aisin Seiki Co., Ltd. | 2,081,345 | |||
233,000 | Amada Co., Ltd. | 2,601,764 | |||
19,400 | Aoyama Trading Co., Ltd. | 593,190 | |||
154,000 | Asahi Kasei Corp. | 1,088,985 | |||
29,000 | Bridgestone Corp. | 588,124 | |||
96,594 | Canon, Inc. | 5,419,342 | |||
47,000 | Chiyoda Corp. | 1,078,339 | |||
20,400 | Coca-Cola West Japan Co., Ltd. | 444,901 | |||
26,000 | COMSYS Holdings Corp. | 290,339 | |||
39,000 | Daicel Chemical Industries, Ltd. | 262,700 | |||
170,000 | Dainippon Ink & Chemicals, Inc. | 637,349 | |||
145,286 | Denki Kagaku Kogyo K K | 632,679 | |||
188,800 | Denso Corp. | 6,675,339 | |||
12,600 | Elpida Memory, Inc.(a) | 530,868 | |||
24,200 | Fanuc Ltd. | 2,369,844 | |||
65,800 | FUJIFILM Holdings Corp. | 2,710,462 | |||
70,000 | Fukuoka Financial Group, Inc.(a) | 533,121 | |||
71,900 | Hitachi Construction Machinery Co., Ltd. | 2,243,887 | |||
94,753 | Hokkaido Electric Power Co., Inc. | 2,402,713 | |||
269,374 | Honda Motor Co., Ltd. | 9,251,969 |
See Notes to Financial Statements.
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Shares | Description | Value (Note 1) | |||
7,900 | Ibiden Co., Ltd. | $ | 449,047 | ||
504,000 | Itochu Corp. | 4,962,295 | |||
49,600 | JFE Holdings, Inc. | 2,726,409 | |||
94,000 | Joyo Bank, Ltd. (The) | 576,302 | |||
88,500 | JS Group Corp. | 1,998,535 | |||
106,000 | Kamigumi Co., Ltd. | 928,957 | |||
254,000 | Kawasaki Heavy Industries, Ltd. | 1,011,129 | |||
326,000 | Kawasaki Kisen Kaisha, Ltd. | 3,540,624 | |||
8,290 | Keyence Corp. | 1,842,780 | |||
287,000 | Komatsu, Ltd. | 6,791,473 | |||
40,000 | Komori Co. | 923,827 | |||
83,000 | Konica Minolta Holdings, Inc. | 1,135,679 | |||
43,000 | Kubota Corp. | 406,395 | |||
18,100 | Kyocera Corp. | 1,759,127 | |||
57,000 | Kyowa Hakko Kogyo Co., Ltd. | 532,325 | |||
46,000 | Kyushu Electric Power Co., Inc. | 1,295,748 | |||
80,700 | Makita Corp. | 3,070,523 | |||
663,222 | Marubeni Corp. | 3,982,406 | |||
335,843 | Mitsubishi Chemical Holdings Corp. | 2,702,500 | |||
230,000 | Mitsubishi Electric Corp. | 2,229,501 | |||
240,000 | Mitsubishi Gas Chemical Co., Inc. | 2,072,226 | |||
382,000 | Mitsubishi Heavy Industries, Ltd. | 2,351,209 | |||
200 | Mitsubishi UFJ Financial Group, Inc. | 2,080,419 | |||
397,000 | Mitsui & Co., Ltd. | 7,138,710 | |||
202,000 | Mitsui Chemicals, Inc. | 1,676,344 | |||
589,000 | Mitsui O.S.K. Lines, Ltd. | 7,422,855 | |||
554,000 | Mitsui Trust Holdings, Inc. | 5,005,088 | |||
23,000 | NGK SPARK PLUG Co., Ltd. | 405,605 | |||
116,000 | Nikon Corp. | 2,661,310 | |||
14,800 | Nintendo Co., Ltd. | 4,623,119 | |||
137,000 | Nippon Express Co., Ltd. | 848,078 | |||
564,000 | Nippon Oil Corp. | 4,331,054 | |||
73,000 | Nippon Shokubai Co., Ltd. | 744,386 | |||
32,000 | Nippon Steel Corp. | 206,452 | |||
806 | Nippon Telegraph and Telephone Corp. | 4,001,811 | |||
130,000 | Nippon Yusen Kabushiki Kaisha | 1,118,008 | |||
27,849 | Nishimatsuya Chain Co., Ltd. | 500,936 | |||
157,100 | Nissan Motor Co., Ltd. | 1,580,178 | |||
90,000 | Nisshin Steel Co., Ltd. | 363,141 | |||
19,500 | Nomura Holdings, Inc. | 372,668 | |||
183,753 | NSK, Ltd. | 1,778,259 | |||
644 | NTT Data Corp. | 3,158,876 | |||
312,000 | Obayashi Corp. | 1,966,357 |
See Notes to Financial Statements.
Dryden International Equity Fund | 13 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d
Shares | Description | Value (Note 1) | |||
7,000 | Olympus Corp. | $ | 244,845 | ||
27,100 | ORIX Corp. | 7,225,910 | |||
227,000 | Ricoh Co., Ltd. | 4,982,249 | |||
50,000 | Sanwa Shutter Corp. | 308,198 | |||
8 | Sapporo Hokuyo Holdings, Inc. | 77,297 | |||
39,400 | Shin-Etsu Chemical Co., Ltd. | 2,543,000 | |||
185,000 | Shinsei Bank, Ltd. | 797,732 | |||
90,500 | Sony Corp. | 4,812,532 | |||
70,300 | Stanley Electric Co., Ltd. | 1,396,426 | |||
143,800 | Sumco Corp. | 6,248,744 | |||
209,500 | Sumitomo Corp. | 3,588,139 | |||
58,000 | Sumitomo Heavy Industries, Ltd. | 597,033 | |||
974,000 | Sumitomo Metal Industries, Ltd. | 4,945,408 | |||
151,000 | Sumitomo Metal Mining Co., Ltd. | 2,805,158 | |||
37,000 | Sumitomo Realty & Development Co., Ltd. | 1,365,709 | |||
254,000 | Suruga Bank, Ltd. | 3,070,724 | |||
376,000 | Taiheiyo Cement Corp. | 1,610,893 | |||
22,100 | Takeda Chemical Industries, Ltd. | 1,432,687 | |||
100,641 | Tanabe Seiyaku Co., Ltd. | 1,302,185 | |||
60,700 | TDK Corp. | 5,234,822 | |||
14,700 | THK Co., Ltd. | 358,215 | |||
19,100 | Tokai Rika Co., Ltd. | 438,803 | |||
150,900 | Tokyo Electric Power Co., Inc. (The) | 5,015,275 | |||
57,900 | Tokyo Electron, Ltd. | 4,015,399 | |||
333,000 | Tokyo Tatemono Co., Ltd. | 4,654,256 | |||
123,000 | Tosoh Corp. | 562,419 | |||
318,234 | Toyota Motor Corp. | 19,329,211 | |||
3,830 | USS Co., Ltd. | 241,632 | |||
77,100 | Yamaha Corp. | 1,782,854 | |||
83,200 | Yamaha Motor Co., Ltd. | 2,197,865 | |||
160,000 | Yaskawa Electric Corp. | 1,828,484 | |||
236,724,035 | |||||
Luxembourg 0.1% | |||||
55,800 | Acergy SA(a) | 1,193,433 | |||
Netherlands 3.8% | |||||
385,401 | Aegon NV | 7,954,362 | |||
37,276 | Arcelor Mittal | 1,992,440 | |||
39,928 | ASML Holding NV(a) | 1,084,672 | |||
70,336 | European Aeronautic Defence and Space Co. | 2,251,234 | |||
19,684 | Fugro NV | 1,067,036 | |||
262,215 | ING Groep NV | 11,943,579 |
See Notes to Financial Statements.
14 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
44,773 | Koninklijke DSM NV | $ | 2,135,817 | ||
23,399 | Koninklijke Philips Electronics NV | 960,907 | |||
29,157 | Randstad Holdings NV | 2,279,428 | |||
61,114 | Royal Numico NV | 3,367,750 | |||
262,137 | Unilever NV | 7,999,639 | |||
43,036,864 | |||||
New Zealand 0.4% | |||||
1,164,201 | Telecom Corp. of New Zealand, Ltd. | 4,151,427 | |||
Norway 1.3% | |||||
318,609 | DnB NOR ASA | 4,545,602 | |||
30,065 | Norsk Hydro ASA | 1,036,289 | |||
454,130 | Orkla ASA | 7,239,469 | |||
46,430 | TGS Nopec Geophysical Co. ASA(a) | 1,061,880 | |||
28,700 | Yara International ASA | 837,021 | |||
14,720,261 | |||||
Portugal 1.1% | |||||
169,786 | Banco BPI SA | 1,457,002 | |||
530,438 | Banco Comercial Portugues SA | 2,226,243 | |||
84,059 | Banco Espirito Santo SA | 1,686,227 | |||
56,326 | Cimpor Cimentos de Portugal SGPS SA | 514,319 | |||
1,103,821 | Energias de Portugal SA | 6,040,369 | |||
11,924,160 | |||||
Singapore 0.4% | |||||
54,000 | City Developments, Ltd. | 565,440 | |||
72,000 | DBS Group Holdings, Ltd. | 998,955 | |||
1,000 | Haw Par Corp., Ltd. | 5,105 | |||
44,000 | Jardine Cycle & Carriage, Ltd. | 381,719 | |||
60,000 | Singapore Airlines, Ltd. | 714,355 | |||
423,000 | Singapore Telecommunications, Ltd. | 918,514 | |||
47,000 | Venture Corp., Ltd. | 481,298 | |||
4,065,386 | |||||
Spain 4.3% | |||||
12,832 | Acciona SA | 2,862,434 | |||
51,629 | Acerinox SA | 1,218,930 | |||
48,250 | ACS Actividades Cons y Serv | 2,990,809 | |||
212,046 | Banco Bilbao Vizcaya Argentaria SA | 5,070,118 | |||
115,450 | Banco Popular Espanol SA | 2,286,747 | |||
758,602 | Banco Santander Central Hispano SA | 13,654,607 |
See Notes to Financial Statements.
Dryden International Equity Fund | 15 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d
Shares | Description | Value (Note 1) | |||
83,746 | Ebro Puleva SA | $ | 1,938,874 | ||
81,516 | Endesa SA | 4,453,290 | |||
4,051 | Fomento de Construcciones y Contratas SA | 376,682 | |||
34,782 | Gas Natural SDG SA | 1,749,835 | |||
6,117 | Iberdrola SA | 302,965 | |||
204,404 | Iberia Lineas Aereas de Espana | 1,051,080 | |||
66,566 | Industria de Diseno Textil SA (Inditex) | 4,095,069 | |||
102,815 | Repsol YPF SA | 3,387,301 | |||
12,365 | Sacyr Vallehermoso SA | 645,735 | |||
47,028 | Telefonica SA | 1,056,316 | |||
23,089 | Union Fenosa SA | 1,261,608 | |||
48,402,400 | |||||
Sweden 2.4% | |||||
9,100 | Alfa Laval AB | 553,139 | |||
6,450 | Axfood AB | 260,917 | |||
50,200 | Hennes & Mauritz AB (Class B) | 3,318,595 | |||
71,458 | Sandvik AB | 1,362,930 | |||
129,187 | Skandinaviska Enskilda Banken AB (Class A) | 4,731,177 | |||
76,900 | Svenska Cellulosa AB (Class B) | 3,955,031 | |||
144,500 | Svenska Handelsbanken AB (Class A) | 4,405,301 | |||
120,300 | Swedish Match AB | 2,220,719 | |||
1,325,000 | Telefonaktiebolaget LM Ericsson (Class B) | 5,062,970 | |||
63,175 | TeliaSonera AB | 511,295 | |||
32,100 | Volvo AB (Class B) | 630,018 | |||
27,012,092 | |||||
Switzerland 7.6% | |||||
309,630 | ABB, Ltd. | 6,187,249 | |||
7,223 | Ciba Specialty Chemicals AG | 477,219 | |||
123,227 | Credit Suisse Group | 9,671,198 | |||
614 | Geberit AG | 1,090,416 | |||
41,384 | Holcim, Ltd. | 4,433,068 | |||
4,096 | Kuehne & Nagel International AG | 374,094 | |||
18,532 | Nestle SA | 7,336,233 | |||
3,459 | Nobel Biocare Holding AG(a) | 1,245,380 | |||
89,693 | Novartis AG | 5,210,780 | |||
7,464 | Phonak Holding AG | 660,288 | |||
1,786 | Rieter Holding AG | 987,256 | |||
55,843 | Roche Holding AG | 10,515,635 | |||
27,002 | Swatch Group AG | 1,569,938 | |||
80,229 | Swiss Reinsurance Co. | 7,541,523 | |||
16,771 | Swisscom AG | 5,922,444 |
See Notes to Financial Statements.
16 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
229,507 | UBS AG | $ | 14,915,411 | ||
23,862 | Zurich Financial Services AG | 6,924,048 | |||
85,062,180 | |||||
United Kingdom 21.8% | |||||
34,422 | 3i Group PLC | 790,715 | |||
169,300 | Anglo American PLC | 8,915,409 | |||
220,596 | AstraZeneca PLC | 11,997,365 | |||
241,882 | Aviva PLC | 3,794,846 | |||
57,127 | Balfour Beatty PLC | 528,394 | |||
263,907 | Barclays PLC | 3,809,949 | |||
149,760 | Barratt Developments PLC | 3,224,042 | |||
62,455 | Bellway PLC | 1,880,671 | |||
286,991 | BG Group PLC | 4,135,535 | |||
181,114 | BHP Billiton PLC | 4,046,863 | |||
38,712 | Bovis Homes Group PLC | 867,373 | |||
844,273 | BP PLC | 9,471,572 | |||
80,074 | British Airways PLC(a) | 805,534 | |||
52,041 | British Land Co. PLC | 1,520,070 | |||
976,855 | BT Group PLC | 6,144,761 | |||
208,300 | Capita Group PLC | 2,926,325 | |||
92,857 | Carnival PLC | 4,676,509 | |||
62,964 | Carphone Warehouse Group PLC | 377,197 | |||
570,615 | Centrica PLC | 4,396,913 | |||
82,497 | Charter PLC(a) | 1,685,002 | |||
29,049 | Close Brothers Group PLC | 562,681 | |||
52,594 | Daily Mail & General Trust | 876,011 | |||
26,372 | Enterprise Inns PLC | 335,925 | |||
71,958 | Firstgroup PLC | 944,821 | |||
229,247 | George Wimpey PLC | 2,655,734 | |||
293,732 | GlaxoSmithKline PLC | 8,472,188 | |||
11,988 | GUS PLC | 135,442 | |||
72,786 | Hays PLC | 245,911 | |||
479,577 | HBOS PLC | 10,291,538 | |||
1 | Henderson Group PLC | 3 | |||
364,398 | Home Retail Group | 3,307,743 | |||
481,564 | HSBC Holdings PLC | 8,885,360 | |||
64,341 | Imperial Tobacco Group PLC | 2,804,442 | |||
19,363 | Inchcape PLC | 218,078 | |||
67,772 | International Power PLC | 592,574 | |||
80,579 | J Sainsbury PLC | 918,159 | |||
47,484 | Kelda Group PLC | 878,579 | |||
620,802 | Kingfisher PLC | 3,361,501 |
See Notes to Financial Statements.
Dryden International Equity Fund | 17 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d
Shares | Description | Value (Note 1) | |||
36,608 | Land Securities Group PLC | $ | 1,425,156 | ||
816,244 | Legal & General Group PLC | 2,503,196 | |||
280,194 | Lloyds TSB Group PLC | 3,235,492 | |||
125,445 | Man Group PLC | 1,404,599 | |||
40,829 | Marks & Spencer Group PLC | 602,256 | |||
122,879 | Michael Page International PLC | 1,406,583 | |||
171,034 | National Grid PLC | 2,685,454 | |||
34,692 | Next PLC | 1,618,161 | |||
19,232 | Northern Rock PLC | 411,250 | |||
575,273 | Old Mutual PLC | 2,041,638 | |||
30,561 | Persimmon PLC | 817,262 | |||
197,843 | Reckitt Benckiser PLC | 10,823,286 | |||
20,095 | Reed Elsevier PLC | 254,462 | |||
76,463 | Resolution PLC | 984,280 | |||
135,717 | Rio Tinto PLC | 8,246,833 | |||
519,200 | Rolls-Royce Group PLC | 4,945,881 | |||
1,240,418 | Royal & Sun Alliance Insurance Group PLC | 4,090,361 | |||
393,030 | Royal Bank of Scotland Group PLC | 15,048,632 | |||
357,344 | Royal Dutch Shell PLC | 12,412,330 | |||
210,499 | Royal Dutch Shell PLC (Class B) | 7,412,775 | |||
237,677 | SABMiller PLC | 5,618,250 | |||
69,362 | Scottish & Newcastle PLC | 851,167 | |||
84,633 | Stagecoach Group PLC | 312,506 | |||
46,213 | Tate & Lyle PLC | 573,042 | |||
86,432 | Taylor Woodrow PLC | 832,768 | |||
1,536,496 | Tesco PLC | 14,129,201 | |||
4,775 | Trinity Mirror PLC | 50,828 | |||
37,878 | Unilever PLC | 1,185,082 | |||
45,852 | United Utilities PLC | 683,459 | |||
4,394,723 | Vodafone Group PLC | 12,502,798 | |||
10,518 | William Hill PLC | 125,223 | |||
190,981 | WPP Group PLC | 2,827,679 | |||
36,959 | Xstrata PLC | 1,923,231 | |||
245,466,856 | |||||
Total common stocks | 1,099,875,751 | ||||
PREFERRED STOCK 0.6% | |||||
Germany | |||||
Porsche AG | |||||
3,848 | (cost $5,378,663) | 6,445,286 |
See Notes to Financial Statements.
18 | Visit our website at www.jennisondryden.com |
Units | Description | Value (Note 1) | |||
RIGHTS(a) | |||||
Sweden | |||||
Volvo AB (Class B) | |||||
6,420 | (cost $0) | $ | 23,955 | ||
Total long-term investments | 1,106,344,992 | ||||
Principal | |||||
SHORT-TERM INVESTMENTS 0.3% | |||||
U.S. Government Securities 0.3% | |||||
United States | |||||
United States Treasury Bills, 4.91%, 6/14/2007(b)(c) | |||||
$ 2,550 | (cost $2,534,778) | 2,535,345 | |||
Shares | |||||
Affiliated Money Market Mutual Fund | |||||
Dryden Core Investment Fund - Taxable Money Market Series | |||||
365,846 | (cost $365,846) (Note 3)(d) | 365,846 | |||
Total short-term investments | 2,901,191 | ||||
Total Investments(f) 98.5% | 1,109,246,183 | ||||
Other assets in excess of liabilities(e) 1.5% | 17,001,467 | ||||
Net Assets 100.0% | $ | 1,126,247,650 | |||
(a) | Non-income producing security. |
(b) | Rate quoted represents yield-to-maturity as of purchase date. |
(c) | All or portion of security segregated as collateral for financial futures contracts. |
(d) | Prudential Investments LLC, the manager of the Fund, also serves as manager of the Dryden Core Investment Fund—Taxable Money Market Series. |
See Notes to Financial Statements.
Dryden International Equity Fund | 19 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d
(e) | Other assets in excess of liabilities included net unrealized appreciation on financial futures as follows: |
Open future contracts outstanding at April 30, 2007:
Number of Contracts | Type | Expiration Date | Value at April 30, 2007 | Value at Trade Date | Unrealized Appreciation (Depreciation) | |||||||||
Long Positions: | ||||||||||||||
17 | Hang Seng Stock Index | May-07 | $ | 2,183,569 | $ | 2,214,282 | $ | (30,713 | ) | |||||
129 | Nikkei 225 Index | Jun-07 | 11,168,175 | 10,935,677 | 232,498 | |||||||||
30 | DJ Euro Stoxx 50 Index | Jun-07 | 1,777,180 | 1,775,803 | 1,377 | |||||||||
24 | Share Price Index 200 | Jun-07 | 3,076,693 | 2,950,352 | 126,341 | |||||||||
44 | FTSE 100 Index | Jun-07 | 5,690,490 | 5,615,459 | 75,031 | |||||||||
$ | 404,534 | |||||||||||||
(f) | As of April 30, 2007, 346 securities representing $1,041,382,837 and 93.9% of the total market value were fair valued in accordance with the policies adopted by the Board of Directors. |
The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2007 was as follows:
Commercial Banks | 15.6 | % | |
Oil, Gas & Consumable Fuels | 6.8 | ||
Insurance | 5.8 | ||
Metals & Mining | 5.1 | ||
Pharmaceuticals | 5.0 | ||
Capital Markets | 4.1 | ||
Automobiles | 3.9 | ||
Diversified Telecommunication Services | 3.7 | ||
Electric Utilities | 2.9 | ||
Chemicals | 2.4 | ||
Food Products | 2.4 | ||
Machinery | 2.4 | ||
Food & Staples Retailing | 2.1 | ||
Diversified Financial Services | 1.9 | ||
Household Durables | 1.8 | ||
Trading Companies & Distributors | 1.7 | ||
Auto Components | 1.5 | ||
Construction Materials | 1.4 | ||
Specialty Retail | 1.4 | ||
Beverages | 1.3 | ||
Industrial Conglomerates | 1.3 | ||
Wireless Telecommunication Services | 1.3 | ||
Media | 1.2 | ||
Airlines | 1.1 |
See Notes to Financial Statements.
20 | Visit our website at www.jennisondryden.com |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d
Electrical Equipment | 1.1 | % | |
Marine | 1.1 | ||
Multi-Utilities | 1.1 | ||
Semiconductors & Semiconductor Equipment | 1.1 | ||
Construction & Engineering | 1.0 | ||
Electronic Equipment & Instruments | 1.0 | ||
Household Products | 1.0 | ||
Office Electronics | 1.0 | ||
Real Estate Management & Development | 1.0 | ||
Communications Equipment | 0.8 | ||
Real Estate Investment Trusts | 0.8 | ||
Aerospace & Defense | 0.6 | ||
Biotechnology | 0.6 | ||
Commercial Services & Supplies | 0.6 | ||
Consumer Finance | 0.6 | ||
Energy Equipment & Services | 0.6 | ||
Gas Utilities | 0.6 | ||
Leisure Equipment & Products | 0.6 | ||
Hotels Restaurants & Leisure | 0.5 | ||
Software | 0.5 | ||
Transportation Infrastructure | 0.5 | ||
Building Products | 0.4 | ||
IT Services | 0.4 | ||
Paper & Forest Products | 0.4 | ||
Tobacco | 0.4 | ||
Health Care Equipment & Supplies | 0.3 | ||
Internet & Catalog Retail | 0.3 | ||
U.S. Government Security | 0.3 | ||
Multiline Retail | 0.2 | ||
Road & Rail | 0.2 | ||
Textiles, Apparel & Luxury Goods | 0.2 | ||
Computers & Peripherals | 0.1 | ||
Distributors | 0.1 | ||
Health Care Providers & Services | 0.1 | ||
Independent Power Producers & Energy Traders | 0.1 | ||
Thrifts & Mortgage Finance | 0.1 | ||
Water Utilities | 0.1 | ||
98.5 | |||
Other assets in excess of liabilities | 1.5 | ||
100.0 | % | ||
See Notes to Financial Statements.
Dryden International Equity Fund | 21 |
Statement of Assets and Liabilities
as of April 30, 2007 (Unaudited)
Assets | ||||
Investments, at value: | ||||
Unaffiliated investments (cost $903,303,626) | $ | 1,108,880,337 | ||
Affiliated investments (cost $365,846) | 365,846 | |||
Foreign currency, at value (cost $15,235,029) | 15,192,737 | |||
Dividends receivable | 4,469,893 | |||
Foreign tax reclaim receivable | 1,150,466 | |||
Receivable for Series shares sold | 776,984 | |||
Prepaid expenses | 11,268 | |||
Total assets | 1,130,847,531 | |||
Liabilities | ||||
Payable for Series shares reacquired | 1,964,917 | |||
Loan payable | 877,000 | |||
Management fee payable | 712,611 | |||
Distribution fee payable | 324,858 | |||
Transfer agent fee payable | 243,595 | |||
Payable to custodian | 194,895 | |||
Due to broker-variation margin | 141,200 | |||
Accrued expenses | 125,016 | |||
Deferred directors’ fees | 12,650 | |||
Loan interest payable | 3,139 | |||
Total liabilities | 4,599,881 | |||
Net Assets | $ | 1,126,247,650 | ||
Net assets were comprised of: | ||||
Common stock, at par | $ | 1,177,515 | ||
Paid-in capital in excess of par | 932,374,416 | |||
933,551,931 | ||||
Undistributed net investment income | 4,581,961 | |||
Accumulated net realized loss on investments and foreign currency transactions | (17,918,696 | ) | ||
Net unrealized appreciation on investments and foreign currencies | 206,032,454 | |||
Net assets, April 30, 2007 | $ | 1,126,247,650 | ||
See Notes to Financial Statements.
22 | Visit our website at www.jennisondryden.com |
Class A | |||
Net asset value and redemption price per share | $ | 9.62 | |
Maximum sales charge (5.50% of offering price) | .56 | ||
Maximum offering price to public | $ | 10.18 | |
Class B | |||
Net asset value, offering price and redemption price per share | $ | 9.29 | |
Class C | |||
Net asset value, offering price and redemption price per share | $ | 9.29 | |
Class F | |||
Net asset value, offering price and redemption price per share | $ | 9.29 | |
Class L | |||
Net asset value, offering price and redemption price per share | $ | 9.62 | |
Maximum sales charge (5.75% of offering price) | .59 | ||
Maximum offering price to public | $ | 10.21 | |
Class M | |||
Net asset value, offering price and redemption price per share | $ | 9.29 | |
Class X | |||
Net asset value, offering price and redemption price per share | $ | 9.29 | |
Class Z | |||
Net asset value, offering price and redemption price per share | $ | 9.70 | |
See Notes to Financial Statements.
Dryden International Equity Fund | 23 |
Statement of Operations
Six Months Ended April 30, 2007 (Unaudited)
Net Investment Income | ||||
Income | ||||
Unaffiliated dividends (net of foreign withholding taxes of $1,032,589) | $ | 11,249,244 | ||
Affiliated income from securities loaned, net | 45,964 | |||
Interest | 36,817 | |||
Affiliated dividend income | 24,185 | |||
Total income | 11,356,210 | |||
Expenses | ||||
Management fee | 3,037,004 | |||
Distribution fee—Class A | 435,091 | |||
Distribution fee—Class B | 221,360 | |||
Distribution fee—Class C | 174,193 | |||
Distribution fee—Class F | 101,277 | |||
Distribution fee—Class L | 22,747 | |||
Distribution fee—Class M | 106,230 | |||
Distribution fee—Class X | 32,415 | |||
Transfer agent’s fees and expenses (including affiliated expense of $476,000) | 564,000 | |||
Custodian’s fees and expenses | 132,000 | |||
Reports to shareholders | 113,000 | |||
Legal fees and expenses | 47,000 | |||
Loan interest expense (Note 7) | 28,722 | |||
Registration fees | 22,000 | |||
Audit fee | 19,000 | |||
Directors’ fees | 8,000 | |||
Insurance | 5,000 | |||
Miscellaneous | 1,839 | |||
Total expenses | 5,070,878 | |||
Net investment income | 6,285,332 | |||
Realized And Unrealized Gain (Loss) On Investments, Futures And Foreign Currency Transactions |
| |||
Net realized gain on: | ||||
Investment transactions | 131,026,291 | |||
Foreign currency transactions | 202,116 | |||
Financial futures transactions | 1,360,505 | |||
132,588,912 | ||||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (31,323,359 | ) | ||
Foreign currencies | (197,104 | ) | ||
Financial futures contracts | 45,939 | |||
(31,474,524 | ) | |||
Net gain on investments and foreign currency transactions | 101,114,388 | |||
Net Increase In Net Assets Resulting From Operations | $ | 107,399,720 | ||
See Notes to Financial Statements.
24 | Visit our website at www.jennisondryden.com |
Statement of Changes in Net Assets
(Unaudited)
Six Months Ended April 30, 2007 | Year Ended October 31, 2006 | |||||||
Increase (Decrease) In Net Assets | ||||||||
Operations | ||||||||
Net investment income | $ | 6,285,332 | $ | 4,095,439 | ||||
Net realized gain on investments and foreign currency transactions | 132,588,912 | 19,004,077 | ||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (31,474,524 | ) | 48,931,280 | |||||
Net increase in net assets resulting from operations | 107,399,720 | 72,030,796 | ||||||
Dividends from net investment income (Note 1) | ||||||||
Class A | (1,073,236 | ) | (223,315 | ) | ||||
Class B | (374,594 | ) | — | |||||
Class C | (114,787 | ) | — | |||||
Class Z | (4,300,460 | ) | (1,403,752 | ) | ||||
(5,863,077 | ) | (1,627,067 | ) | |||||
Series share transactions (net of share conversions) (Note 6) | ||||||||
Net proceeds from shares sold | 101,100,719 | 103,089,748 | ||||||
Net asset value of shares issued in connection with merger (Note 8) | 638,140,587 | — | ||||||
Net asset value of shares issued in reinvestment of dividends | 5,775,611 | 1,617,011 | ||||||
Cost of shares reacquired | (91,155,454 | ) | (78,038,521 | ) | ||||
Net increase in net assets from Series share transactions | 653,861,463 | 26,668,238 | ||||||
Total increase | 755,398,106 | 97,071,967 | ||||||
Net Assets | ||||||||
Beginning of period | 370,849,544 | 273,777,577 | ||||||
End of period(a) | $ | 1,126,247,650 | $ | 370,849,544 | ||||
(a) Includes undistributed net investment income of: | $ | 4,581,961 | $ | 4,159,706 | ||||
See Notes to Financial Statements.
Dryden International Equity Fund | 25 |
Notes to Financial Statements
(Unaudited)
Prudential World Fund, Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as an open-end, diversified management investment company and currently consists of three series: Dryden International Equity Fund (the “Series”), Strategic Partners International Value Fund and Jennison Global Growth Fund. These financial statements relate to the Dryden International Equity Fund. The financial statements of the other series are not presented herein. The Series commenced investment operations in March 2000. The investment objective of the Series is to achieve long-term growth of capital. The Series seeks to achieve its objective primarily through investment in equity-related securities of foreign issuers.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the Fund and the Series in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and ask prices, or at the last bid price on such day in the absence of an asked price. Securities traded via Nasdaq are valued at the Nasdaq official closing price (NOCP) on the day of valuation, or if there was no NOCP, at the last sale price. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadvisers, to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Options on securities and indices traded on an exchange are valued at the last sale price as of the close of trading on the applicable exchange or, if there was no sale, at the mean between the most recently quoted bid and asked prices on such exchange. Futures contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted bid and asked prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Prices may be obtained from independent pricing services which use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities for which reliable market quotations
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are not readily available, or whose values have been affected by events occurring after the close of the security’s foreign market and before the Funds’ normal pricing time, are valued at fair value in accordance with the Board of Directors approved fair valuation procedures. When determining the fair valuation 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 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. As of April 30, 2007, 346 securities representing $1,041,382,837 and 93.9% of the total market value were fair valued in accordance with the policies adopted by the Board of Directors.
Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.
Short-term securities which mature in 60 days or less are valued at amortized cost, which approximates market value. The amortized cost method includes valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term securities that mature in more than 60 days are valued at current market quotations.
Foreign Currency Translation: The books and records of the Series 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 rate of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Series are presented at the foreign exchange rates and market values at the close of the fiscal period, the Series does not 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 fiscal period. Similarly, the Series does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes
Dryden International Equity Fund | 27 |
Notes to Financial Statements
(Unaudited) Cont’d
in the market prices of long-term portfolio securities sold during the fiscal period. Accordingly, realized foreign currency gains or losses are included in the reported net realized gains or losses on investment transactions.
Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from holdings of foreign currencies, currency gains or losses realized between the trade and settlement dates on security transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Series’ 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.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the possibility of political or economic instability, or the level of governmental supervision and regulation of foreign securities markets.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized and unrealized gains or losses from security and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income is recorded on an accrual basis. Expenses are recorded on the accrual basis.
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 net assets of each class at the beginning of the day.
Financial Futures Contracts: A financial futures contract is an agreement to purchase (long) or sell (short) an agreed amount of securities at a set price for delivery on a future date. Upon entering into a financial futures contract, the Fund is required to pledge to the broker an amount of cash and/or other assets equal to a certain percentage of the contract amount. This amount is known as the “initial margin.” Subsequent payments, known as “variation margin,” are made or received by the Fund each day, depending on the daily fluctuations in the value of the underlying
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security. Such variation margin is recorded for financial statement purposes on a daily basis as unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the Statement of Operations as net realized gain or loss on financial futures transactions.
The Fund invests in financial futures contracts in order to hedge its existing portfolio securities, or securities the Fund intends to purchase, against fluctuations in value caused by changes in prevailing interest rates or market conditions. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss. The use of futures transactions involves the risk of imperfect correlation in movements in the price of futures contracts, interest rates and the underlying hedged assets.
Financial futures contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.
Dividends and Distributions: The Series expects to pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations which may differ from generally accepted accounting principles, are recorded on the ex-dividend date.
Taxes: For federal income tax purposes, each series in the Fund is treated as a separate taxpaying entity. It is each Series’ 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 the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Note 2. Agreements
The Fund has a management agreement for the Series with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. PI entered into a subadvisory agreement with Quantitative Management Associates LLC (QMA). The subadvisory
Dryden International Equity Fund | 29 |
Notes to Financial Statements
(Unaudited) Cont’d
agreement provides that QMA furnishes investment advisory services in connection with the management of the Series. In connection therewith, QMA is obligated to keep certain books and records of the Series. PI pays for the services of QMA, the cost of compensation of officers of the Series, occupancy and certain clerical and bookkeeping costs of the Series. The Series bears all other costs and expenses.
The management fee paid to PI is computed daily and payable monthly, at an annual rate of .85 of 1% of the average daily net assets of the Series up to and including $300 million, .75 of 1% of the average daily net assets in excess of $300 million up to and including $1.5 billion and .70 of 1% of the Series’ average daily net assets over $1.5 billion. PI contractually agreed to subsidize and or cap the annual operating expenses so that annual operation expenses (exclusive of distribution and service (12b-1) fees) do not exceed 1.25% of the Series net assets. The effective management fee was .79% for the six months ended April 30, 2007.
The Series has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”) which acts as the distributor of Class A, Class B, Class C, Class F, Class L, Class M, Class X, and Class Z shares of the Series. The Series compensates PIMS for distributing and servicing the Series’ Class A, Class B, Class C, Class F, Class L, Class M and Class X, shares, pursuant to a plan of distribution, (the “Class A, B, C, F, L, M and X 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 for Class Z shares of the Series.
Pursuant to the Class A, B, C, F, L, M and X Plans, the Series compensates PIMS for distribution related activities at an annual rate of up to .30 of 1%, 1%, 1%, .75 of 1%, .50 of 1%, 1%, and 1% of the average daily net assets of the Class A, B, C, F, L, M, and X shares, respectively. For the six months ended April 30, 2007, PIMS contractually agreed to limit such fees to .25 of 1% of the average daily net assets of the Class A shares.
PIMS has advised the Series that they received approximately $237,800 in front-end sales charges resulting from sales of Class A shares during the six months ended April 30, 2007. From these fees, PIMS paid such sales charges to broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Series that for the six months ended April 30, 2007 it received approximately $16,000 and 1,000 in contingent deferred sales charges imposed upon redemptions by certain Class B and Class C shareholders, respectively.
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PI, QMA and PIMS 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.
The Series pays networking fees to affiliated and unaffiliated broker/dealers, including fees relating to the services of Wachovia Securities, LLC (“Wachovia”) and First Clearing, LLC (“First Clearing”), affiliates of Pl. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. For the six months ended April 30, 2007, the Series incurred approximately $142,800 in total networking fees, of which approximately $83,800 was paid to First Clearing. These amounts are included in transfer agents’s fees and expenses on the Statement of Operations.
The Series invests in the Taxable Money Market Series (the “Portfolio”), a portfolio of Dryden Core Investment Fund, pursuant to an exemptive order received from the Securities and Exchange Commission. The Portfolio is a money market mutual fund registered under the Investment Company Act of 1940, as amended, and managed by PI.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments, for the six months ended April 30, 2007 aggregated $633,233,572 and $619,431,704, respectively.
Note 5. Tax Information
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation as of April 30, 2007 was as follows:
Tax Basis | Appreciation | Depreciation | Total Unrealized | |||
$904,611,715 | $208,156,057 | $3,521,589 | $204,634,468 |
The difference between book and tax basis is primarily attributable to deferred losses on wash sales and market to market of open passive foreign investment companies.
Dryden International Equity Fund | 31 |
Notes to Financial Statements
(Unaudited) Cont’d
For federal income tax purposes, the Series had a capital loss carryforward as of October 31, 2006, of approximately $150,193,000 of which $89,590,000 expires in 2009, $49,177,000 expires in 2010 and $11,426,000 expires in 2011. Accordingly, no capital gains distribution is expected to be paid to shareholders until net gains have been realized in excess of such carryforward. It is uncertain whether the Series will be able to realize the full benefit prior to the expiration date. In addition, the Fund utilized approximately $17,798,000 of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended October 31, 2006.
Note 6. Capital
The Series offers Class A, Class B, Class C, Class F, Class L, Class M, Class X and Class Z shares. Class A and Class L shares are sold with a front-end sales charge of up to 5.50% and 5.75%, respectively. All investors who purchase Class A and L 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. Class B and F shares are sold with a contingent deferred sales charge which declines from 5% to zero depending on the period of time the shares are held. Class B and F shares will automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class C shares are sold with a contingent deferred sales charge of 1% during the first 12 months. Class M and X shares are sold with a contingent deferred sales charge which declines from 6% to zero depending on the period of time the shares are held. Class M and X shares will automatically convert to Class A shares on a quarterly basis approximately eight and ten years after purchase, respectively. A special exchange privilege is also available for shareholders who qualify to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
There are 1 billion authorized shares of $.01 par value common stock divided as follows:
Share Class | Authorized share capital of each share class | |
A and Z | 225,000,000 | |
B and C | 150,000,000 | |
X | 100,000,000 | |
F,L and M | 50,000,000 |
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Class A | Shares | Amount | |||||
Six months ended April 30, 2007: | |||||||
Shares sold | 3,272,874 | $ | 29,722,412 | ||||
Shares issued in connection with the merger | 43,788,390 | 387,365,365 | |||||
Shares issued in reinvestment of dividends | 116,682 | 1,026,803 | |||||
Shares reacquired | (3,608,186 | ) | (32,800,493 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 43,569,760 | 385,314,087 | |||||
Shares issued upon conversion from Class B | 1,643,439 | 14,815,341 | |||||
Net increase (decrease) in shares outstanding | 45,213,199 | $ | 400,129,428 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 3,802,085 | $ | 29,816,540 | ||||
Shares issued in reinvestment of dividends | 30,143 | 213,410 | |||||
Shares reacquired | (1,759,296 | ) | (13,709,402 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 2,072,932 | 16,320,548 | |||||
Shares issued upon conversion from Class B | 181,369 | 1,385,391 | |||||
Net increase (decrease) in shares outstanding | 2,254,301 | $ | 17,705,939 | ||||
Class B | |||||||
Six months ended April 30, 2007: | |||||||
Shares sold | 510,249 | $ | 4,448,176 | ||||
Shares issued in connection with the merger | 479,552 | 4,137,461 | |||||
Shares issued in reinvestment of dividends | 40,426 | 344,432 | |||||
Shares reacquired | (779,224 | ) | (6,733,405 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 251,003 | 2,196,664 | |||||
Shares reacquired upon conversion into Class A | (1,702,122 | ) | (14,815,341 | ) | |||
Net increase (decrease) in shares outstanding | (1,451,119 | ) | $ | (12,618,677 | ) | ||
Year ended October 31, 2006: | |||||||
Shares sold | 770,278 | $ | 5,842,750 | ||||
Shares issued in reinvestment of dividends | — | — | |||||
Shares reacquired | (1,449,171 | ) | (10,830,803 | ) | |||
Net increase (decrease) in shares outstanding before conversion | (678,893 | ) | (4,988,053 | ) | |||
Shares reacquired upon conversion into Class A | (187,762 | ) | (1,385,391 | ) | |||
Net increase (decrease) in shares outstanding | (866,655 | ) | $ | (6,373,444 | ) | ||
Class C | |||||||
Six months ended April 30, 2007: | |||||||
Shares sold | 368,869 | $ | 3,205,026 | ||||
Shares issued in connection with the merger | 6,424,357 | 55,305,505 | |||||
Shares issued in reinvestment of dividends | 12,234 | 104,237 | |||||
Shares reacquired | (562,324 | ) | (4,969,835 | ) | |||
Net increase (decrease) in shares outstanding | 6,243,136 | $ | 53,644,933 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 441,017 | $ | 3,332,860 | ||||
Shares issued in reinvestment of dividends | — | — | |||||
Shares reacquired | (696,970 | ) | (5,231,728 | ) | |||
Net increase (decrease) in shares outstanding | (255,953 | ) | $ | (1,898,868 | ) | ||
Dryden International Equity Fund | 33 |
Notes to Financial Statements
(Unaudited) Cont’d
Class F | Shares | Amount | |||||
December 18, 2006* through April 30, 2007: | |||||||
Shares sold | 1,910 | $ | 42,147 | ||||
Shares issued in connection with the merger | 4,458,745 | 38,141,130 | |||||
Shares reacquired | (755,022 | ) | (6,600,765 | ) | |||
Net increase (decrease) in shares outstanding | 3,705,633 | $ | 31,582,512 | ||||
Class L | |||||||
March 19, 2007* through April 30, 2007: | |||||||
Shares sold | 3,848 | $ | 25,115 | ||||
Shares issued in connection with the merger | 4,065,903 | 36,281,032 | |||||
Shares reacquired | (231,275 | ) | (2,158,869 | ) | |||
Net increase (decrease) in shares outstanding | 3,838,476 | $ | 34,147,278 | ||||
Class M | |||||||
March 19, 2007* through April 30, 2007: | |||||||
Shares sold | 7,039 | $ | 116,388 | ||||
Shares issued in connection with the merger | 9,740,447 | 84,013,342 | |||||
Shares reacquired | (657,983 | ) | (6,026,452 | ) | |||
Net increase (decrease) in shares outstanding | 9,089,503 | $ | 78,103,278 | ||||
Class X | |||||||
March 19, 2007* through April 30, 2007: | |||||||
Shares sold | 2,730 | $ | 33,956 | ||||
Shares issued in connection with the merger | 2,941,125 | 25,373,808 | |||||
Shares reacquired | (116,069 | ) | (1,062,924 | ) | |||
Net increase (decrease) in shares outstanding | 2,827,786 | $ | 24,344,840 | ||||
Class Z | |||||||
Six months ended April 30, 2007: | |||||||
Shares sold | 6,922,873 | $ | 63,507,499 | ||||
Shares issued in connection with the merger | 844,417 | 7,522,944 | |||||
Shares issued in reinvestment of dividends | 484,796 | 4,300,139 | |||||
Shares reacquired | (3,401,449 | ) | (30,802,711 | ) | |||
Net increase (decrease) in shares outstanding | 4,850,637 | $ | 44,527,871 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 8,110,954 | $ | 64,097,598 | ||||
Shares issued in reinvestment of dividends | 196,583 | 1,403,601 | |||||
Shares reacquired | (6,119,945 | ) | (48,266,588 | ) | |||
Net increase (decrease) in shares outstanding | 2,187,592 | $ | 17,234,611 | ||||
* | Inception date. |
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Note 7. Borrowing
The Series, along with other affiliated registered investment companies (the “Funds”), is a party to a syndicated credit agreement (“SCA”) with two banks. The SCA provides for a commitment of $500 million. Interest on any borrowings under the SCA is incurred at contracted market rates and a commitment fee for the unused amount is accrued daily and paid quarterly. Effective October 27, 2006, the Funds renewed SCA with the banks. The commitment under the renewed SCA continues to be $500 million. The Funds pay a commitment fee of .07 of 1% of the unused portion of the renewed SCA. The expiration date of the renewed SCA will be October 26, 2007. For the period from October 29, 2005 through October 26, 2006, the Funds paid a commitment fee of .0725 of 1% of the unused portion of the agreement. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions.
The Series utilized the line of credit during the six months ended April 30, 2007. The average balance is for the number of days the Fund had an outstanding balance.
Average Balance | Number of Days | Weighted Average | Outstanding | |||
$ 2,193,734 | 104 | 5.74 % | $877,000 |
Note 8. Reorganization
On December 15, 2006, Dryden International Equity Fund acquired all of the net assets of the Jennison Global Growth Fund, Inc., pursuant to a plan of reorganization approved by the Jennison Global Growth Fund, Inc. shareholders on December 11, 2006. The acquisition was accomplished by a tax-free issue of Class A, Class C, Class F and Class Z shares for the corresponding classes of Jennison Global Growth Fund, Inc. During the acquisition the Series renamed Class B shares of Jennison Global Growth and issued Class F shares of Dryden International Equity Fund.
On March 16, 2007, Dryden International Equity Fund acquired all of the net assets of the Strategic Partners International Growth Fund pursuant to a plan of reorganization approved by the Strategic Partners International Growth Fund shareholders on December 29, 2006. The acquisition was accomplished by a tax-free issue of Class A, Class B, Class C, Class L, Class M, Class X and Class Z shares for the corresponding classes of Strategic Partners International Growth Fund.
Dryden International Equity Fund | 35 |
Notes to Financial Statements
(Unaudited) Cont’d
Merged Funds | Acquiring Fund | ||||||||
Jennison Global Growth Fund | Dryden International Equity Fund | ||||||||
Class | Shares | Class | Shares | Value | |||||
A | 17,883,946 | A | 39,754,913 | $ | 351,369,984 | ||||
B | 2,162,099 | F | 4,458,745 | 38,141,130 | |||||
C | 713,686 | C | 1,455,002 | 12,450,845 | |||||
Z | 377,958 | Z | 844,417 | 7,522,944 | |||||
SP International Growth Fund | Dryden International Equity Fund | ||||||||
Class | Shares | Class | Shares | Value | |||||
A | 2,035,463 | A | 4,033,477 | $ | 35,995,381 | ||||
B | 243,730 | B | 479,552 | 4,137,461 | |||||
C | 2,517,110 | C | 4,969,355 | 42,854,660 | |||||
L | 2,062,990 | L | 4,065,903 | 36,281,032 | |||||
M | 4,948,802 | M | 9,740,447 | 84,013,342 | |||||
X | 1,493,777 | X | 2,941,125 | 25,373,808 |
The aggregate net assets and unrealized appreciation/(depreciation) of the Merged funds immediately before the acquisition were:
Total Net Assets | Unrealized Appreciation | |||||
Jennison Global Growth Fund | $ | 409,484,903 | $ | 107,261,144 | ||
SP International Growth Fund | 228,655,684 | 56,252,453 |
The Fund acquired capital loss carryforward from the merger with Jennison Global Growth Fund and SP International Growth Fund in the amounts of $50,010,130 and $93,730,145, respectively. The future utilization of the acquired capital loss carryforward may be limited under certain conditions defined in the Internal Revenue Code of 1986, as amended. Due to these limitations, the Fund expects to utilize no greater than approximately $48,000,000 and $56,400,000 of the acquired capital loss carryforward from Jennison Global Growth Fund and SP International Growth Fund, respectively.
Note 9. New Accounting Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured,
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presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. The impact of the tax positions not deemed to meet the more-likely-than-not threshold would be recorded in the year in which they arise. On December 22, 2006 the Securities and Exchange Commission delayed the effective date until the last net asset value calculation in the first requested financial reporting period for its fiscal year beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact, if any, in the financial statements has not yet been determined.
On September 20, 2006, the FASB released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (FAS 157). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 157 and its impact, if any, in the financial statements has not yet been determined.
Dryden International Equity Fund | 37 |
Financial Highlights
(Unaudited)
Class A | ||||
Six Months Ended April 30, 2007 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning of Period | $ | 8.54 | ||
Income (loss) from investment operations: | ||||
Net investment income (loss) | .07 | |||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.14 | |||
Total from investment operations | 1.21 | |||
Less Dividends: | ||||
Dividends from net investment income | (.13 | ) | ||
Net asset value, end of period | $ | 9.62 | ||
Total Return(a): | 14.34 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 510,477 | ||
Average net assets (000) | $ | 350,957 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees(b) | 1.28 | %(c) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.03 | %(c) | ||
Net investment income (loss) | 1.71 | %(c) | ||
For Class A, B, C, F, L, M, X and Z shares: | ||||
Portfolio turnover rate | 82 | %(d) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. |
(b) | The distributor of the Series has contractually agreed to limit its distribution and service (12b-1) fees to .25 of 1% of the average daily net assets of the Class A shares. |
(c) | Annualized. |
(d) | Not annualized. |
(e) | Net of expense subsidy. If the investment manager had not subsidized expenses, the expense ratios (both including and excluding distribution and service (12b-1) fees) and the net investment income ratios would have been 1.68% 1.43% and 1.02%, respectively for the year ended October 31, 2005. |
See Notes to Financial Statements.
38 | Visit our website at www.jennisondryden.com |
Class A | ||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
$ | 6.84 | $ | 5.75 | $ | 4.84 | $ | 3.74 | $ | 4.37 | |||||||||
.08 | .06 | .03 | (.02 | ) | (.02 | ) | ||||||||||||
1.66 | 1.09 | .88 | 1.12 | (.61 | ) | |||||||||||||
1.74 | 1.15 | .91 | 1.10 | (.63 | ) | |||||||||||||
(.04 | ) | (.06 | ) | — | — | — | ||||||||||||
$ | 8.54 | $ | 6.84 | $ | 5.75 | $ | 4.84 | $ | 3.74 | |||||||||
25.55 | % | 20.13 | % | 18.80 | % | 29.41 | % | (14.42 | )% | |||||||||
$ | 67,123 | $ | 38,323 | $ | 22,103 | $ | 20,050 | $ | 19,414 | |||||||||
$ | 52,174 | $ | 30,177 | $ | 20,760 | $ | 18,650 | $ | 25,360 | |||||||||
1.40 | % | 1.57 | %(e) | 2.02 | % | 2.13 | % | 1.88 | % | |||||||||
1.15 | % | 1.32 | %(e) | 1.77 | % | 1.88 | % | 1.63 | % | |||||||||
1.23 | % | 1.13 | %(e) | .64 | % | (.36 | )% | (.56 | )% | |||||||||
60 | % | 41 | % | 100 | % | 157 | % | 108 | % |
See Notes to Financial Statements.
Dryden International Equity Fund | 39 |
Financial Highlights
(Unaudited) Cont’d
Class B | ||||
Six Months Ended April 30, 2007 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning of Period | $ | 8.22 | ||
Income (loss) from investment operations: | ||||
Net investment income (loss) | .02 | |||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.12 | |||
Total from investment operations | 1.14 | |||
Less Dividends: | ||||
Dividends from net investment income | (.07 | ) | ||
Net asset value, end of period | $ | 9.29 | ||
Total Return(a): | 13.92 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 38,889 | ||
Average net assets (000) | $ | 44,639 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 2.03 | %(b) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.03 | %(b) | ||
Net investment income (loss) | .41 | %(b) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. |
(b) | Annualized. |
(c) | Net of expense subsidy. If the investment manager had not subsidized expenses, the expense ratios (both including and excluding distribution and service (12b-1) fees) and the net investment income ratios would have been 2.43% 1.43% and .28%, respectively for the year ended October 31, 2005. |
See Notes to Financial Statements.
40 | Visit our website at www.jennisondryden.com |
Class B | ||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
$ | 6.59 | $ | 5.55 | $ | 4.71 | $ | 3.66 | $ | 4.32 | |||||||||
.04 | .02 | (.01 | ) | (.05 | ) | (.07 | ) | |||||||||||
1.59 | 1.04 | .85 | 1.10 | (.59 | ) | |||||||||||||
1.63 | 1.06 | .84 | 1.05 | (.66 | ) | |||||||||||||
— | (.02 | ) | — | — | — | |||||||||||||
$ | 8.22 | $ | 6.59 | $ | 5.55 | $ | 4.71 | $ | 3.66 | |||||||||
24.73 | % | 19.08 | % | 17.83 | % | 28.34 | % | (15.05 | )% | |||||||||
$ | 46,330 | $ | 42,878 | $ | 42,252 | $ | 40,587 | $ | 37,059 | |||||||||
$ | 45,041 | $ | 44,159 | $ | 42,334 | $ | 35,399 | $ | 49,086 | |||||||||
2.15 | % | 2.32 | %(c) | 2.77 | % | 2.88 | % | 2.63 | % | |||||||||
1.15 | % | 1.32 | %(c) | 1.77 | % | 1.88 | % | 1.63 | % | |||||||||
.46 | % | .37 | %(c) | (.11 | )% | (1.14 | )% | (1.30 | )% |
See Notes to Financial Statements.
Dryden International Equity Fund | 41 |
Financial Highlights
(Unaudited) Cont’d
Class C | ||||
Six Months Ended April 30, 2007 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning of Period | $ | 8.22 | ||
Income (loss) from investment operations: | ||||
Net investment income (loss) | .04 | |||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.10 | |||
Total from investment operations | 1.14 | |||
Less Dividends: | ||||
Dividends from net investment income | (.07 | ) | ||
Net asset value, end of period | $ | 9.29 | ||
Total Return(a): | 13.92 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 73,596 | ||
Average net assets (000) | $ | 35,127 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 2.03 | %(b) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.03 | %(b) | ||
Net investment income (loss) | 1.45 | %(b) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. |
(b) | Annualized. |
(c) | Net of expense subsidy. If the investment manager had not subsidized expenses, the expense ratios (both including and excluding distribution and service (12b-1) fees) and the net investment income ratios would have been 2.43% 1.43% and .28%, respectively for the year ended October 31, 2005. |
See Notes to Financial Statements.
42 | Visit our website at www.jennisondryden.com |
Class C | ||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
$ | 6.59 | $ | 5.55 | $ | 4.71 | $ | 3.66 | $ | 4.32 | |||||||||
.04 | .02 | (.01 | ) | (.05 | ) | (.08 | ) | |||||||||||
1.59 | 1.04 | .85 | 1.10 | (.58 | ) | |||||||||||||
1.63 | 1.06 | .84 | 1.05 | (.66 | ) | |||||||||||||
— | (.02 | ) | — | — | — | |||||||||||||
$ | 8.22 | $ | 6.59 | $ | 5.55 | $ | 4.71 | $ | 3.66 | |||||||||
24.73 | % | 19.08 | % | 17.83 | % | 28.34 | % | (15.05 | )% | |||||||||
$ | 13,825 | $ | 12,779 | $ | 13,669 | $ | 14,006 | $ | 13,906 | |||||||||
$ | 13,478 | $ | 13,700 | $ | 13,956 | $ | 12,640 | $ | 19,770 | |||||||||
2.15 | % | 2.32 | %(c) | 2.77 | % | 2.88 | % | 2.63 | % | |||||||||
1.15 | % | 1.32 | %(c) | 1.77 | % | 1.88 | % | 1.63 | % | |||||||||
.47 | % | .37 | %(c) | (.12 | )% | (1.14 | )% | (1.33 | )% |
See Notes to Financial Statements.
Dryden International Equity Fund | 43 |
Financial Highlights
Cont’d
Class F | ||||
December 18, 2006(a) Through April 30, 2007 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning of Period | $ | 8.56 | ||
Income from investment operations: | ||||
Net investment income | .04 | |||
Net realized and unrealized gain on investment and foreign currency transactions | .69 | |||
Total from investment operations | .73 | |||
Less Dividends: | ||||
Dividends from net investment income | — | |||
Net asset value, end of period | $ | 9.29 | ||
Total Return(b): | 8.53 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 34,437 | ||
Average net assets (000) | $ | 35,977 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 1.78 | %(c) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.03 | %(c) | ||
Net investment income | 1.05 | %(c) |
(a) | Inception date of Class F shares. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. |
(c) | Annualized. |
See Notes to Financial Statements.
44 | Visit our website at www.jennisondryden.com |
Class L | ||||
March 19, 2007(a) Through April 30, 2007 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning of Period | $ | 8.92 | ||
Income from investment operations: | ||||
Net investment income | .04 | |||
Net realized and unrealized gain on investment and foreign currency transactions | .66 | |||
Total from investment operations | .70 | |||
Less Dividends: | ||||
Dividends from net investment income | — | |||
Net asset value, end of period | $ | 9.62 | ||
Total Return(b): | 7.85 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 36,908 | ||
Average net assets (000) | $ | 36,901 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 1.53 | %(c) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.03 | %(c) | ||
Net investment income | 3.52 | %(c) |
(a) | Inception date of Class L shares. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. |
(c) | Annualized. |
See Notes to Financial Statements.
Dryden International Equity Fund | 45 |
Financial Highlights
Cont’d
Class M | ||||
March 19, 2007(a) Through April 30, 2007 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning of Period | $ | 8.63 | ||
Income from investment operations | ||||
Net investment income | .03 | |||
Net realized and unrealized gain on investment and foreign currency transactions | .63 | |||
Total from investment operations | .66 | |||
Less Dividends: | ||||
Dividends from net investment income | — | |||
Net asset value, end of period | $ | 9.29 | ||
Total Return(b): | 7.65 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 84,420 | ||
Average net assets (000) | $ | 86,165 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 2.03 | %(c) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.03 | %(c) | ||
Net investment income | 2.99 | %(c) |
(a) | Inception date of Class M shares. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. |
(c) | Annualized. |
See Notes to Financial Statements.
46 | Visit our website at www.jennisondryden.com |
Class X | ||||
March 19, 2007(a) Through April 30, 2007 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning of Period | $ | 8.63 | ||
Income from investment operations | ||||
Net investment income | .03 | |||
Net realized and unrealized gain on investment and foreign currency transactions | .63 | |||
Total from investment operations | .66 | |||
Less Dividends: | ||||
Dividends from net investment income | — | |||
Net asset value, end of period | $ | 9.29 | ||
Total Return(b): | 7.65 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 26,263 | ||
Average net assets (000) | $ | 26,293 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 2.03 | %(c) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.03 | %(c) | ||
Net investment income | 3.02 | %(c) |
(a) | Inception date of Class X shares. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. |
(c) | Annualized. |
See Notes to Financial Statements.
Dryden International Equity Fund | 47 |
Financial Highlights
(Unaudited) Cont’d
Class Z | ||||
Six Months Ended April 30, 2007 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning of Period | $ | 8.62 | ||
Income (loss) from investment operations: | ||||
Net investment income (loss) | .07 | |||
Net realized and unrealized gain (loss) on investment and foreign currency transactions | 1.16 | |||
Total from investment operations | 1.23 | |||
Less Dividends: | ||||
Dividends from net investment income | (.15 | ) | ||
Net asset value, end of period | $ | 9.70 | ||
Total Return(a): | 14.43 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 321,258 | ||
Average net assets (000) | $ | 281,491 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 1.03 | %(b) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.03 | %(b) | ||
Net investment income (loss) | 1.62 | %(b) |
(a) | Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. |
(b) | Annualized. |
(c) | Net of expense subsidy. If the investment manager had not subsidized expenses, the expense ratios (both including and excluding distribution and service (12b-1) fees) and the net investment income ratios would have been 1.43% 1.43% and .73%, respectively for the year ended October 31, 2005. |
See Notes to Financial Statements.
48 | Visit our website at www.jennisondryden.com |
Class Z | ||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||
2006 | 2005 | 2004 | 2003 | 2002 | ||||||||||||||
$ | 6.90 | $ | 5.80 | $ | 4.88 | $ | 3.76 | $ | 4.39 | |||||||||
.12 | .05 | .03 | (.01 | ) | (.02 | ) | ||||||||||||
1.65 | 1.12 | .89 | 1.13 | (.61 | ) | |||||||||||||
1.77 | 1.17 | .92 | 1.12 | (.63 | ) | |||||||||||||
(.05 | ) | (.07 | ) | — | — | — | ||||||||||||
$ | 8.62 | $ | 6.90 | $ | 5.80 | $ | 4.88 | $ | 3.76 | |||||||||
25.86 | % | 20.40 | % | 18.85 | % | 29.79 | % | (14.35 | )% | |||||||||
$ | 243,572 | $ | 179,798 | $ | 12,881 | $ | 3,699 | $ | 6,049 | |||||||||
$ | 214,969 | $ | 53,026 | $ | 7,103 | $ | 3,533 | $ | 7,665 | |||||||||
1.15 | % | 1.32 | %(c) | 1.77 | % | 1.88 | % | 1.63 | % | |||||||||
1.15 | % | 1.32 | %(c) | 1.77 | % | 1.88 | % | 1.63 | % | |||||||||
1.48 | % | .88 | %(c) | .81 | % | (.31 | )% | (.22 | )% |
See Notes to Financial Statements.
Dryden International Equity Fund | 49 |
n MAIL | n TELEPHONE | n WEBSITE | ||
Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | (800) 225-1852 | www.jennisondryden.com |
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 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. 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 Commission’s website. |
DIRECTORS |
Linda W. Bynoe • David E.A. Carson • Robert F. Gunia • Robert E. La Blanc • Douglas H. McCorkindale • Richard A. Redeker • Judy A. Rice • Robin B. Smith • Stephen G. Stoneburn • Clay T. Whitehead |
OFFICERS |
Judy A. Rice, President • Robert F. Gunia, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Kathryn L. Quirk, Chief Legal Officer • Deborah A. Docs, Secretary • Lee D. Augsburger, Chief Compliance Officer • Valerie M. Simpson, Deputy Chief Compliance Officer • Noreen M. Fierro, Acting Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • John P. Schwartz, Assistant Secretary • Andrew R. French, Assistant Secretary • M. Sadiq Peshimam, Assistant Treasurer |
MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
INVESTMENT SUBADVISER | Quantitative Management Associates LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
CUSTODIAN | The Bank of New York | One Wall Street New York, NY 10286 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | P.O. Box 9658 Providence, RI 02940 | ||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
FUND COUNSEL | Sullivan & Cromwell LLP | 125 Broad Street New York, NY 10004 |
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus for the Fund contains this and other information about the Fund. An investor may obtain a prospectus by visiting our website at www.jennisondryden.com or by calling (800) 225-1852. The prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents on-line, go to www.icsdelivery.com/prudential/funds and enroll. Instead of receiving printed documents by mail, you will receive notification via website address. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Dryden International Equity Fund, Prudential Investments, Attn: Board of Directors, 100 Mulberry Street, Gateway Center Three, 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. |
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 (800) SEC-0330 (732-0330). The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each fiscal quarter. |
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 |
Dryden International Equity Fund | ||||||||||||||||||||
Share Class | A | B | C | F | L | M | X | Z | ||||||||||||
NASDAQ | PJRAX | PJRBX | PJRCX | N/A | N/A | N/A | N/A | PJIZX | ||||||||||||
CUSIP | 743969859 | 743969867 | 743969875 | 743969842 | 743969834 | 743969826 | 743969818 | 743969883 | ||||||||||||
MF190E2 IFS-A134882 Ed. 06/2007
SEMIANNUAL REPORT
APRIL 30, 2007
STRATEGIC PARTNERS
INTERNATIONAL VALUE FUND
FUND TYPE
International stock
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 April 30, 2007, were not audited, and accordingly, no auditor’s opinion is expressed on them.
June 15, 2007
Dear Shareholder:
On the following pages, you’ll find your Fund’s semiannual report, including a table showing fund performance over the first half of the fiscal year and for longer periods. The report also contains a listing of the Fund’s holdings at period-end. The semiannual report is an interim statement furnished between the Fund’s annual reports, which include an analysis of Fund performance over the fiscal year in addition to the other data.
Mutual fund prices and returns will rise or fall over time, and asset managers tend to have periods when they perform better or worse than their long-term average. The best measures of a mutual fund’s quality are its return compared to that of similar investments and the variability of its return over the long term. We recommend that you review your portfolio regularly with your financial adviser, who has access to frequent reports on the factors affecting the Fund’s return and should be able to answer your questions.
Sincerely,
Judy A. Rice, President
Prudential World Fund, Inc.
Strategic Partners International Value Fund | 1 |
Your Fund’s Performance
Fund objective
The investment objective of the Strategic Partners International Value Fund is long-term growth of capital through investment in equity securities of foreign issuers. There can be no assurance that the Fund will achieve its investment objective.
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.jennisondryden.com or by calling (800) 225-1852. The maximum initial sales charge is 5.50% (Class A shares). Gross operating expenses: Class A, 1.75%; Class B, 2.45%; Class C, 2.45%; Class Z, 1.45%. Net Operating Expenses apply to: Class A, 1.70%; Class B, 2.45%; Class C, 2.45%; Class Z, 1.45%, after contractual reduction through 2/28/2008.
Cumulative Total Returns as of 4/30/07 | ||||||||||||
Six Months | One Year | Five Years | Ten Years | |||||||||
Class A | 15.20 | % | 18.89 | % | 89.53 | % | 123.27 | % | ||||
Class B | 14.77 | 17.96 | 82.44 | 106.86 | ||||||||
Class C | 14.79 | 17.93 | 82.47 | 107.11 | ||||||||
Class Z | 15.34 | 19.05 | 91.61 | 128.46 | ||||||||
MSCI EAFE® ND Index1 | 15.46 | 19.81 | 115.88 | 130.77 | ||||||||
Lipper International Large-Cap Core Funds Avg.2 | 13.91 | 16.25 | 90.28 | 115.05 | ||||||||
Average Annual Total Returns3 as of 3/31/07 | ||||||||||||
One Year | Five Years | Ten Years | ||||||||||
Class A | 12.92 | % | 11.68 | % | 7.29 | % | ||||||
Class B | 13.59 | 11.96 | 7.08 | |||||||||
Class C | 17.57 | 12.10 | 7.09 | |||||||||
Class Z | 19.69 | 13.21 | 8.15 | |||||||||
MSCI EAFE® ND Index1 | 20.20 | 15.68 | 8.31 | |||||||||
Lipper International Large-Cap Core Funds Avg.2 | 17.32 | 12.89 | 7.37 |
The cumulative total returns do not reflect the deduction of applicable sales charges. If reflected, the applicable sales charges would reduce the cumulative total returns performance quoted. Class A shares are subject to a maximum front-end sales
2 | Visit our website at www.jennisondryden.com |
charge of 5.50%. Under certain circumstances, Class A shares may be subject to a contingent deferred sales charge (CDSC) of 1%. Class B and Class C shares are subject to a maximum CDSC of 5% and 1%, respectively. Class Z shares are not subject to a sales charge.
Source: Prudential Investments LLC and Lipper Inc. Performance figures may reflect fee waivers and/or expense reimbursements. In the absence of such fee waivers and/or expense reimbursements, total returns would be lower.
1The Morgan Stanley Capital International Europe, Australasia, and Far East Index (MSCI EAFE® ND Index) is an unmanaged, weighted index of performance that reflects stock price movements of developed-country markets in Europe, Australasia, and the Far East. The ND version of the MSCI EAFE Index reflects the impact of the maximum withholding taxes on reinvested dividends.
2The Lipper International Large-Cap Core Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper International Large-Cap Core Funds category. Funds in the Lipper Average invest at least 75% of their equity assets in companies strictly outside of the United States with market capitalizations (on a three-year weighted basis) greater than the 250th largest company in the S&P/Citigroup World ex-U.S. Broad Market Index (BMI). Large-cap core funds typically have an average price-to-cash flow ratio, price-to-book ratio, and three-year sales-per-share growth value compared with the S&P/Citigroup World ex-U.S. BMI.
3The average annual total returns take into account applicable sales charges. Class A, Class B, and Class C shares are subject to an annual distribution and service (12b-1) fee of up to 0.30%, 1.00%, and 1.00%, respectively. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class Z shares are not subject to a 12b-1 fee. 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.
Investors cannot invest directly in an index. The returns for the MSCI EAFE ND Index and the Lipper Average would be lower if they included the effects of sales charges, operating expenses, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses of a mutual fund, but not sales charges or taxes.
Five Largest Holdings expressed as a percentage of net assets as of 4/30/07 | |||
Lloyds TSB Group PLC, Financial—Bank & Trust | 2.0 | % | |
BASF AG, Chemicals | 1.9 | ||
Toyota Motor Corp., Automobile Manufacturers | 1.8 | ||
Teva Pharmaceuticals Industries Ltd., Pharmaceuticals | 1.6 | ||
UBS AG, Financial Services | 1.5 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a percentage of net assets as of 4/30/07 | |||
Financial—Bank & Trust | 13.5 | % | |
Telecommunications | 12.2 | ||
Oil, Gas & Consumable Fuels | 9.0 | ||
Pharmaceuticals | 7.8 | ||
Chemicals | 4.8 |
Industry weightings reflect only long-term investments and are subject to change.
Strategic Partners International Value Fund | 3 |
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 November 1, 2006, at the beginning of the period, and held through the six-month period ended April 30, 2007. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.
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 JennisonDryden or Strategic Partners Funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
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
4 | Visit our website at www.jennisondryden.com |
Fees and Expenses (continued)
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.
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.
Strategic Partners International Value Fund | Beginning Account Value November 1, 2006 | Ending Account Value April 30,2007 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Class A | Actual | $ | 1,000.00 | $ | 1,152.00 | 1.70 | % | $ | 9.07 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,016.36 | 1.70 | % | $ | 8.50 | ||||||
Class B | Actual | $ | 1,000.00 | $ | 1,147.70 | 2.45 | % | $ | 13.05 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,012.65 | 2.45 | % | $ | 12.23 | ||||||
Class C | Actual | $ | 1,000.00 | $ | 1,147.90 | 2.45 | % | $ | 13.05 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,012.65 | 2.45 | % | $ | 12.23 | ||||||
Class Z | Actual | $ | 1,000.00 | $ | 1,153.40 | 1.45 | % | $ | 7.74 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,017.60 | 1.45 | % | $ | 7.25 |
* 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 181 days in the six-month period ended April 30, 2007, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2007 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
Strategic Partners International Value Fund | 5 |
Portfolio of Investments
as of April 30, 2007 (Unaudited)
Shares | Description | Value (Note 1) | |||
LONG-TERM INVESTMENTS 98.1% | |||||
COMMON STOCKS | |||||
Australia 2.6% | |||||
155,688 | Bluescope Steel Ltd. | $ | 1,545,820 | ||
59,100 | Commonwealth Bank of Australia | 2,577,121 | |||
97,400 | CSR Ltd. | 295,426 | |||
400,200 | Qantas Airways Ltd. | 1,758,061 | |||
59,235 | Santos Ltd. | 548,580 | |||
344,703 | Telestra Corp. Ltd. | 1,331,652 | |||
66,800 | Zinifex Ltd. | 912,350 | |||
8,969,010 | |||||
Austria 0.7% | |||||
12,300 | Boehler-Uddeholm AG | 1,199,667 | |||
14,700 | Voestalpine AG | 987,439 | |||
2,187,106 | |||||
Belgium 0.7% | |||||
9,428 | Dexia | 307,509 | |||
45,800 | Fortis | 2,058,193 | |||
2,365,702 | |||||
Brazil 0.8% | |||||
56,277 | Empresa Brasileira de Aeronautica SA, ADR | 2,639,954 | |||
Canada 3.3% | |||||
64,500 | Canadian Natural Resources Ltd. | 3,843,617 | |||
19,300 | Potash Corp. of Saskatchewan, Inc. | 3,464,736 | |||
96,944 | Rogers Communications, Inc. (Class B Stock) | 3,716,521 | |||
11,024,874 | |||||
China 4.2% | |||||
1,439,700 | China Coal Energy Co.* | 1,430,056 | |||
1,618,410 | China Merchants Bank Co. Ltd. (Class H Stock)* | 3,938,560 | |||
260,223 | China Merchants Holdings International Co. Ltd. | 1,150,077 | |||
440,304 | China Mobile Ltd. | 3,965,836 | |||
3,628,812 | China Petroleum and Chemical Corp. (Class H Stock) | 3,164,221 | |||
841,200 | Country Garden Holdings Co. Ltd.* | 758,138 | |||
14,406,888 |
See Notes to Financial Statements.
Strategic Partners International Value Fund | 7 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d.
Shares | Description | Value (Note 1) | |||
Denmark 1.3% | |||||
24,445 | Danske Bank A/S | $ | 1,141,537 | ||
33,941 | Novo Nordisk A/S | 3,322,569 | |||
4,464,106 | |||||
Finland 3.5% | |||||
109,000 | Fortum Oyj | 3,374,764 | |||
205,200 | Nokia Oyj | 5,176,374 | |||
37,300 | Rautaruukki Oyj | 2,011,278 | |||
62,800 | Stora Enso Oyj | 1,145,983 | |||
11,708,399 | |||||
France 9.9% | |||||
12,425 | Air Liquide | 3,080,303 | |||
510 | Arkema* | 30,466 | |||
27,223 | BNP Paribas | 3,158,153 | |||
5,103 | Ciments Francais | 1,156,920 | |||
6,996 | CNP Assurances | 891,838 | |||
21,500 | Compagnie Generale des Establissements Michelin (Class B Stock) | 2,739,295 | |||
23,100 | Credit Agricole SA | 972,724 | |||
117,000 | France Telecom SA | 3,421,335 | |||
62,600 | JC Decaux SA | 1,944,217 | |||
33,833 | LVMH Moet Hennessy Louis Vuitton | 3,943,606 | |||
20,000 | Natixis SA | 545,593 | |||
17,718 | PSA Peugeot Citroen SA | 1,437,578 | |||
8,005 | Renault SA | 1,039,168 | |||
36,000 | Sanofi-Aventis | 3,295,326 | |||
6,400 | Schneider Electric SA | 902,663 | |||
7,366 | Societe Generale | 1,561,030 | |||
14,300 | Thales SA | 868,894 | |||
20,400 | Total SA | 1,503,849 | |||
23,600 | Vivendi | 973,483 | |||
33,466,441 | |||||
Germany 6.7% | |||||
12,300 | Altana AG | 914,538 | |||
54,577 | BASF AG | 6,511,643 | |||
8,700 | Bayer AG | 598,489 | |||
13,800 | DaimlerChrysler AG | 1,117,118 | |||
19,500 | Deutsche Bank AG | 2,991,121 | |||
40,200 | Deutsche Telekom AG | 732,022 | |||
29,100 | E.ON AG | 4,352,793 |
See Notes to Financial Statements.
8 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
8,500 | MAN AG | $ | 1,128,540 | ||
47,719 | ThyssenKrup AG | 2,549,265 | |||
20,619 | TUI AG | 566,118 | |||
8,500 | Volkswagen AG | 1,284,193 | |||
22,745,840 | |||||
Greece 0.8% | |||||
75,836 | OPAP SA | 2,869,521 | |||
Guernsey 0.9% | |||||
80,294 | Amdocs Ltd.* | 2,950,804 | |||
Hong Kong 1.7% | |||||
989,458 | Chaoda Modern Agriculture Holdings Ltd. | 817,307 | |||
331,100 | Citic Pacific Ltd. | 1,241,284 | |||
222,548 | Hong Kong Exchanges and Clearing Ltd. | 2,120,132 | |||
192,347 | Orient Overseas International Ltd. | 1,626,491 | |||
5,805,214 | |||||
Ireland 1.2% | |||||
101,000 | Allied Irish Banks PLC | 3,049,718 | |||
32,900 | Irish Life & Permanent PLC | 874,588 | |||
3,924,306 | |||||
Israel 1.6% | |||||
145,000 | Teva Pharmaceutical Industries Ltd., ADR | 5,554,950 | |||
Italy 2.1% | |||||
38,600 | Banco Popolare di Verona, Scrl. | 1,288,712 | |||
47,100 | Benetton Group SpA | 816,934 | |||
106,101 | Eni SpA | 3,518,705 | |||
175,998 | Intesa Sanpaolo SpA* | 1,474,691 | |||
7,099,042 | |||||
Japan 14.1% | |||||
33,973 | Alpine Electronics, Inc. | 560,091 | |||
54,025 | Alps Electric Co., Inc. | 558,191 | |||
38,953 | Asahi Breweries Ltd. | 634,691 | |||
97,300 | Asahi Kasei Corp. | 688,040 | |||
175,214 | Cosmo Oil Co. Ltd. | 729,345 | |||
50,000 | Daiwa Securities Group, Inc. | 556,899 | |||
175,214 | Denki Kagaku Kogyo Kabushiki Kaisha | 763,007 | |||
34,100 | Fanuc Ltd. | 3,339,326 |
See Notes to Financial Statements.
Strategic Partners International Value Fund | 9 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d.
Shares | Description | Value (Note 1) | |||
139,000 | Fuji Heavy Industries Ltd. | $ | 687,546 | ||
134,756 | Hitachi Ltd. | 1,023,445 | |||
42,347 | Hokkaido Electric Power Co., Inc. | 1,073,820 | |||
4,053 | Hokuetsu Paper Mills Ltd. | 19,756 | |||
68,726 | Honda Motor Co. Ltd. | 2,360,476 | |||
42,555 | Hosiden Corp. | 572,479 | |||
66,677 | Kaken Pharmaceutical Co. Ltd. | 513,325 | |||
59,100 | Kansai Electric Power Co., Inc. (The) | 1,653,998 | |||
203,600 | Kurabo Industries Ltd. | 554,206 | |||
173,200 | Marubeni Corp. | 1,040,003 | |||
152,478 | Mitsubishi Chemical Holdings Corp. | 1,226,978 | |||
8,896 | Nintendo Co. Ltd. | 2,778,869 | |||
190,300 | Nippon Oil Corp. | 1,461,347 | |||
340 | Nippon Telegraph and Telephone Corp. | 1,688,109 | |||
200 | Nippon Unipac Group, Inc. | 676,813 | |||
29,116 | Nipro Corp. | 560,998 | |||
186,500 | Nissan Motor Co. Ltd. | 1,875,895 | |||
69,700 | Nomura Holdings, Inc. | 1,332,051 | |||
67,647 | NSK Ltd. | 654,650 | |||
1,000 | NTT Docomo, Inc. | 1,702,054 | |||
105,200 | Oji Paper Co. Ltd. | 537,492 | |||
30,644 | Okasan Holdings, Inc. | 203,650 | |||
8,600 | Ono Pharmaceutical Co. Ltd. | 476,770 | |||
7 | Osaka Gas Co. Ltd. | 26 | |||
2,500 | Promise Co. Ltd. | 75,200 | |||
99,079 | Rengo Co. Ltd. | 530,696 | |||
34,500 | Ricoh Co. Ltd. | 757,214 | |||
126,100 | Shiseido Co. Ltd. | 2,705,112 | |||
78,000 | SMK Corp. | 473,941 | |||
251 | Sumitomo Osaka Cement Co. Ltd. | 732 | |||
14,319 | Takefuji Corp. | 481,249 | |||
69,259 | Tanabe Seiyaku Co. Ltd. | 896,136 | |||
50,000 | Toppan Printing Co. Ltd. | 507,180 | |||
98,166 | Toyota Motor Corp. | 5,962,503 | |||
20,548 | Yamada Denki Co. Ltd. | 1,898,620 | |||
132,000 | Yokohama Rubber Co. Ltd. (The) | 816,963 | |||
47,609,892 | |||||
Liechtenstein 0.3% | |||||
4,341 | Verwaltungs und Privat Bank AG | 1,125,604 |
See Notes to Financial Statements.
10 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
Mexico 2.7% | |||||
69,713 | America Movil SA de CV Series L, ADR | $ | 3,662,024 | ||
496,500 | Grupo Mexico SAB de CV | 2,674,741 | |||
714,698 | Wal-Mart de Mexico SA de CV Series V | 2,804,785 | |||
9,141,550 | |||||
Netherlands 3.8% | |||||
29,152 | ABN AMRO Holding NV | 1,414,422 | |||
39,600 | Aegon NV | 817,312 | |||
57,300 | ING Groep NV, ADR | 2,609,946 | |||
103,500 | Koninklijke (Royal) KPN NV | 1,757,251 | |||
45,200 | Royal Dutch Shell (Class A Stock) | 1,569,723 | |||
61,430 | Schlumberger Ltd. | 4,535,377 | |||
12,704,031 | |||||
Norway 0.5% | |||||
51,000 | Norsk Hydro ASA | 1,757,883 | |||
Portugal 0.2% | |||||
132,600 | Energias de Portugal SA | 725,619 | |||
Russia 0.6% | |||||
485 | Sberbank* | 1,923,025 | |||
Singapore 0.8% | |||||
419,960 | Mobileone Ltd. | 618,033 | |||
307,141 | Neptune Orient Lines Ltd. | 721,900 | |||
114,000 | Singapore Airlines Ltd. | 1,357,275 | |||
2,697,208 | |||||
South Korea 1.0% | |||||
58,662 | Shinhan Financial Group Co. Ltd. | 3,302,436 | |||
Spain 1.4% | |||||
140,800 | Banco Santander Central Hispano SA | 2,534,358 | |||
56,547 | Repsol YPF SA | 1,862,974 | |||
21,400 | Telefonica SA | 480,674 | |||
4,878,006 | |||||
Sweden 1.4% | |||||
44,700 | Electrolux AB (Class B Stock) | 1,162,027 | |||
36,700 | Husqvarna AB (Class B Stock) | 671,128 | |||
167,086 | Nordea Bank AB | 2,889,208 | |||
4,722,363 |
See Notes to Financial Statements.
Strategic Partners International Value Fund | 11 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d.
Shares | Description | Value (Note 1) | |||
Switzerland 9.3% | |||||
9,400 | Baloise Holding | $ | 1,024,293 | ||
2,017 | Ciba Specialty Chemicals AG | 133,262 | |||
37,300 | Credit Suisse Group* | 2,927,408 | |||
1,709 | Georg Fischer AG* | 1,315,816 | |||
2,379 | Givaudan SA | 2,228,211 | |||
9,700 | Nestle SA | 3,839,924 | |||
60,943 | Novartis AG | 3,540,527 | |||
2,263 | Rieter Holdings AG* | 1,250,929 | |||
25,325 | Roche Holding AG | 4,768,878 | |||
13,400 | Swiss Re | 1,259,600 | |||
5,000 | Swisscom AG | 1,765,680 | |||
5,400 | Syngenta AG* | 1,072,715 | |||
79,840 | UBS AG | 5,188,715 | |||
4,600 | Zurich Financial Services AG | 1,334,784 | |||
31,650,742 | |||||
United Kingdom 20.1% | |||||
58,000 | Alliance & Leicester PLC | 1,319,435 | |||
42,900 | AstraZeneca PLC | 2,333,165 | |||
63,200 | Aviva PLC | 991,534 | |||
193,571 | Barclays PLC | 2,794,529 | |||
148,239 | Boots Group PLC | 3,307,507 | |||
296,400 | BP PLC | 3,325,197 | |||
166,655 | Bradford & Bingley PLC | 1,470,235 | |||
120,000 | Brit Insurance Holdings PLC | 842,726 | |||
482,864 | BT Group PLC | 3,037,384 | |||
133,872 | Cadbury Schweppes PLC | 1,769,894 | |||
52,600 | Carnival PLC | 2,649,067 | |||
62,100 | Dairy Crest Group PLC | 830,003 | |||
276,764 | DSG International PLC | 885,966 | |||
145,600 | GKN PLC | 1,113,132 | |||
37,300 | GlaxoSmithKline PLC | 1,075,853 | |||
6,500 | Hanson PLC | 110,636 | |||
119,800 | HBOS PLC | 2,570,862 | |||
564,963 | Kingfisher | 3,059,146 | |||
272,238 | Legal & General Group PLC | 834,879 | |||
592,189 | Lloyds TSB Group PLC | 6,838,201 | |||
70,501 | Next PLC | 3,288,423 | |||
200,998 | Northern Foods PLC | 512,933 | |||
283,100 | Old Mutual PLC | 1,004,719 | |||
63,800 | Reckitt Benckiser PLC | 3,490,271 | |||
35,800 | Rio Tinto PLC | 2,175,384 |
See Notes to Financial Statements.
12 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
354,400 | Royal & Sun Alliance Insurance Group PLC | $ | 1,168,658 | ||
59,800 | Royal Bank of Scotland Group PLC | 2,289,668 | |||
78,400 | Royal Dutch Shell PLC (Class B Stock) | 2,760,876 | |||
142,918 | SABMiller PLC | 3,378,321 | |||
47,000 | Tate & Lyle PLC | 582,800 | |||
128,588 | TT Electronics PLC | 602,400 | |||
95,525 | Vodafone Group PLC, ADR | 2,744,433 | |||
983,000 | Vodafone Group PLC | 2,796,593 | |||
67,954,830 | |||||
Total long-term investments | 332,375,346 | ||||
SHORT-TERM INVESTMENT 1.4% | |||||
Affiliated Money Market Mutual Fund | |||||
Dryden Core Investment Fund - Taxable Money Market Series | |||||
4,823,832 | (cost $4,823,832)(a) | 4,823,832 | |||
Total Investments(b) 99.6% | 337,199,178 | ||||
Other assets in excess of liabilities(c) 0.4% | 1,523,419 | ||||
Net Assets 100% | $ | 338,722,597 | |||
The following abbreviations are used in portfolio descriptions:
ADR—American Depositary Receipt
* | Non-income producing security. |
(a) | Prudential Investments LLC, the manager of the Portfolio also serves as manager of the Dryden Core Investment Fund-Taxable Money Market Series. |
(b) | As of April 30, 2007, 165 securities representing $276,719,462 and 82.06% of the total market value were fair valued in accordance with the policies adopted by the Board of Directors. |
(c) | Other assets in excess of liabilities includes net unrealized depreciation on forward foreign currency contracts as follows: |
Forward foreign currency exchange contracts outstanding at April 30, 2007:
Sale Contracts | Notional Amount (000) | Value at Settlement Date Receivable | Current Value | Unrealized Depreciation | ||||||||||
Mexican Peso Expiring 06/06/07 | 72,500 | $ | 6,533,445 | $ | 6,605,747 | $ | (72,302 | ) | ||||||
See Notes to Financial Statements.
Strategic Partners International Value Fund | 13 |
Portfolio of Investments
as of April 30, 2007 (Unaudited) Cont’d.
The industry classification of investments and other assets in excess of liabilities shown as a percentage of net assets as of April 30, 2007 were as follows:
Financial—Bank & Trust | 13.5 | % | |
Telecommunications | 12.2 | ||
Oil, Gas & Consumable Fuels | 9.0 | ||
Pharmaceuticals | 7.8 | ||
Chemicals | 4.8 | ||
Automobile Manufacturers | 4.6 | ||
Diversified Financials | 4.6 | ||
Utilities | 3.8 | ||
Retail & Merchandising | 3.7 | ||
Metals & Mining | 3.5 | ||
Banks | 3.5 | ||
Food & Beverage | 2.9 | ||
Insurance | 2.9 | ||
Real Estate | 1.9 | ||
Electronic Components & Equipment | 1.8 | ||
Entertainment & Leisure | 1.8 | ||
Automotive Parts | 1.7 | ||
Affiliated Money Market Mutual Fund | 1.4 | ||
Building Materials | 1.3 | ||
Household Products/Wares | 1.2 | ||
Diversified Operations | 1.2 | ||
Aerospace | 1.0 | ||
Semiconductors | 1.0 | ||
Airlines | 0.9 | ||
Gaming | 0.8 | ||
Cosmetics & Toiletries | 0.8 | ||
Conglomerates | 0.8 | ||
Paper & Forest Products | 0.8 | ||
Machinery & Equipment | 0.7 | ||
Advertising | 0.6 | ||
Diversified Telecommunication Services | 0.5 | ||
Clothing & Apparel | 0.5 | ||
Manufacturing | 0.3 | ||
Business Services | 0.3 | ||
Steel Producers/Products | 0.3 | ||
Multimedia | 0.3 | ||
Office Equipment | 0.2 | ||
Transportation | 0.2 | ||
Paper & Related Products | 0.2 | ||
Medical Supplies & Equipment | 0.2 | ||
Printing | 0.1 | ||
99.6 | |||
Other assets in excess of liabilities | 0.4 | ||
100.0 | % | ||
See Notes to Financial Statements.
14 | Visit our website at www.jennisondryden.com |
Financial Statements
(Unaudited)
APRIL 30, 2007 | SEMIANNUAL REPORT |
Dryden International Value Fund
Statement of Assets and Liabilities
as of April 30, 2007 (Unaudited)
Assets | |||
Investments at value: | |||
Unaffiliated investments (cost $243,896,150) | $ | 332,375,346 | |
Affiliated investments (cost $4,823,832) | 4,823,832 | ||
Foreign currency, at value (cost $1,912,136) | 1,917,032 | ||
Cash | 232,663 | ||
Dividends receivable | 1,555,617 | ||
Foreign tax reclaim receivable | 378,068 | ||
Receivable for Series shares sold | 151,816 | ||
Receivable for investments sold | 38,499 | ||
Total assets | 341,472,873 | ||
Liabilities | |||
Payable for Series shares reacquired | 1,030,625 | ||
Payable for investments purchased | 569,998 | ||
Accrued expenses | 519,475 | ||
Management fee payable | 387,524 | ||
Payable to transfer agent | 118,590 | ||
Unrealized depreciation on forward currency contracts | 72,302 | ||
Distribution fee payable | 47,278 | ||
Deferred directors’ fee payable | 2,516 | ||
Withholding tax payable | 1,968 | ||
Total liabilities | 2,750,276 | ||
Net Assets | $ | 338,722,597 | |
Net assets were comprised of: | |||
Common stock, at par | $ | 113,899 | |
Paid-in capital in excess of par | 235,220,422 | ||
235,334,321 | |||
Undistributed net investment income | 970,862 | ||
Accumulated net realized gain on investments and foreign currency transactions | 13,960,339 | ||
Net unrealized appreciation on investments and foreign currency transactions | 88,457,075 | ||
Net assets, April 30, 2007 | $ | 338,722,597 | |
See Notes to Financial Statements.
16 | Visit our website at www.jennisondryden.com |
Class A: | |||
Net asset value and redemption price per share | |||
($86,780,764 ÷ 2,916,024 shares of common stock issued and outstanding) | $ | 29.76 | |
Maximum sales charge (5.50% of offering price) | 1.73 | ||
Offering price per share | $ | 31.49 | |
Class B: | |||
Net asset value, offering and redemption price per share | |||
($16,266,279 ÷ 567,274 shares of common stock issued and outstanding) | $ | 28.67 | |
Class C: | |||
Net asset value, offering and redemption price per share | |||
($16,440,298 ÷ 572,708 shares of common stock issued and outstanding) | $ | 28.71 | |
Class Z: | |||
Net asset value, offering and redemption price per share | |||
($219,235,256 ÷ 7,333,920 shares of common stock issued and outstanding) | $ | 29.89 | |
See Notes to Financial Statements.
Strategic Partners International Value Fund | 17 |
Statement of Operations
Six Months Ended April 30, 2007 (Unaudited)
Net Investment Income | ||||
Income | ||||
Unaffiliated dividend income (net of witholding taxes of $304,849) | $ | 3,984,149 | ||
Affiliated dividend income | 122,703 | |||
Interest | 17,120 | |||
Affiliated income from securities lending | 150 | |||
Total income | 4,124,122 | |||
Expenses | ||||
Management fees | 1,527,810 | |||
Distribution fees—Class A | 98,582 | |||
Distribution fees—Class B | 86,498 | |||
Distribution fees—Class C | 78,422 | |||
Reorganization expenses (Note 9) | 249,000 | |||
Transfer agent’s fees and expenses (including affiliated expenses of $101,100) | 220,000 | |||
Custodian’s fees and expenses | 104,000 | |||
Report to shareholders | 37,000 | |||
Registration fees | 20,000 | |||
Legal fees | 16,000 | |||
Audit fees | 11,000 | |||
Insurance fees | 11,000 | |||
Directors’ fees | 8,000 | |||
Interest expense (Note 7) | 651 | |||
Miscellaneous | 10,662 | |||
Total expenses | 2,478,625 | |||
Net investment income | 1,645,497 | |||
Realized And Unrealized Gain (Loss) On Investments And Foreign Currency Transactions | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 18,194,962 | |||
Foreign currency transactions | (1,076,634 | ) | ||
17,118,328 | ||||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | 24,898,567 | |||
Foreign currencies | 416,260 | |||
25,314,827 | ||||
Net gain on investments and foreign currencies | 42,433,155 | |||
Net Increase In Net Assets Resulting From Operations | $ | 44,078,652 | ||
See Notes to Financial Statements.
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Dryden International Value Fund
Statement of Changes in Net Assets (Unaudited)
Six Months Ended April 30, 2007 | Year Ended October 31, 2006 | |||||||
Increase (Decrease) In Net Assets | ||||||||
Operations | ||||||||
Net investment income | $ | 1,645,497 | $ | 3,457,990 | ||||
Net realized gain on investments and foreign currencies | 17,118,328 | 31,970,612 | ||||||
Net change in unrealized appreciation on investments and foreign currencies | 25,314,827 | 32,016,938 | ||||||
Net increase in net assets resulting from operations | 44,078,652 | 67,445,540 | ||||||
Dividends and distributions (Note 1) | ||||||||
Dividends from net investment income | ||||||||
Class A | (84,431 | ) | (1,338,851 | ) | ||||
Class B | — | (279,268 | ) | |||||
Class C | — | (186,171 | ) | |||||
Class Z | (666,603 | ) | (3,990,294 | ) | ||||
(751,034 | ) | (5,794,584 | ) | |||||
Distributions from net realized gains | ||||||||
Class A | (3,618,122 | ) | (866,912 | ) | ||||
Class B | (825,876 | ) | (289,255 | ) | ||||
Class C | (746,207 | ) | (192,828 | ) | ||||
Class Z | (8,646,063 | ) | (2,323,971 | ) | ||||
(13,836,268 | ) | (3,672,966 | ) | |||||
Series share transactions (Net of share conversions) (Note 6) | ||||||||
Net proceeds from shares sold | 53,364,196 | 92,737,158 | ||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 14,156,159 | 9,238,126 | ||||||
Cost of shares reacquired | (43,688,888 | ) | (124,275,889 | ) | ||||
Net increase (decrease) in net assets from Series share transactions | 23,831,467 | (22,300,605 | ) | |||||
Net increase | 53,322,817 | 35,677,385 | ||||||
Net Assets | ||||||||
Beginning of period | 285,399,780 | 249,722,395 | ||||||
End of period(a) | $ | 338,722,597 | $ | 285,399,780 | ||||
(a) Includes undistributed net investment income of: | $ | 970,862 | $ | 76,399 | ||||
See Notes to Financial Statements.
Strategic Partners International Value Fund | 19 |
Notes to Financial Statements
(Unaudited)
Prudential World Fund, Inc. (the “Fund”), is registered under the Investment Company Act of 1940 as an open-end diversified management investment company and currently consists of two series: Strategic Partners International Value Fund (the “Series”) and the Dryden International Equity Fund. These financial statements relate to Strategic Partners International Value Fund. The financial statements of the other Series are not presented herein. The investment objective of the Series is to achieve long-term growth of capital. Income is a secondary objective. The Series seeks to achieve its objective primarily through investment in common stock and preferred stock of foreign companies of all sizes.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the Fund and the Series in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and ask prices, or at the last bid price on such day in the absence of an asked price. Securities traded via Nasdaq are valued at the Nasdaq official closing price (NOCP) on the day of valuation, or if there was no NOCP, at the last sale price. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadvisor(s), to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Options on securities and indices traded on an exchange are valued at the last sale price as of the close of trading on the applicable exchange or, if there was no sale, at the mean between the most recently quoted bid and asked prices on such exchange. Futures contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted bid and asked prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Securities for which reliable market quotations are not readily available, or whose values have been affected by events occurring after the close of the security’s foreign market and before the Funds’ normal pricing time, are valued at fair value in accordance with the Board
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of Directors’ approved fair valuation procedures. When determining the fair valuation 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 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 advisor 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.
Short-term securities which mature in 60 days or less are valued at amortized cost, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term securities which mature in more than 60 days are valued at current market quotations.
Foreign Currency Translation: The books and records of the Series 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 Series are presented at the foreign exchange rates and market values at the close of the fiscal period, the Series does not 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 securities held at the end of the fiscal period. Similarly, the Series 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 fiscal period. Accordingly, realized foreign currency gains or losses are included in the reported net realized gains or losses on investment transactions.
Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from the holding of foreign currencies, currency gains or losses realized between the trade date and settlement date on securities transactions,
Strategic Partners International Value Fund | 21 |
Notes to Financial Statements
(Unaudited) Cont’d
and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Series’ 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 investments and foreign currencies.
Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the possibility of political and economic instability or the level of governmental supervision and regulation of foreign securities markets.
Forward Currency Contracts: A forward currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Series enters into forward currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or specific receivables and payables denominated in a foreign currency. The contracts are valued daily at current exchange rates and any unrealized gain or loss is included in net unrealized appreciation or depreciation on foreign currencies. Gain or loss is realized on the settlement date of the contract equal to the difference between the settlement value of the original and renegotiated forward contracts. This gain or loss, if any, is included in net realized gain (loss) on foreign currency transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. Forward currency contracts involve elements of both market and credit risk in excess of the amounts reflected on the Statement of Assets and Liabilities.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized and unrealized gains or losses on sales of securities are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on an accrual basis. Expenses are recorded on the accrual basis. 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 net assets of each class at the beginning of the day.
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Dividends and Distributions: The Series expects to pay dividends of net investment income and distributions of net realized capital gains, if any, 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-dividend 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, each series in the Fund is treated as a separate taxpaying entity. It is the Series’ 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 income and capital gains, if any, to 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 the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Note 2. Agreements
The Fund has a management agreement for the Series with Prudential Investments LLC (“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 subadvisory agreements with LSV Asset Management (“LSV”) and Thornburg Investment Management (“Thornburg”) for the Series.
The subadvisory agreements provide that LSV and Thornburg furnish investment advisory services in connection with the management of the Series. In connection therewith, LSV and Thornburg are obligated to keep certain books and records of the Series. PI pays for the services of the subadvisors, the cost of compensation of officers of the Series, occupancy and certain clerical and bookkeeping costs of the Series. The Fund bears all other costs and expenses.
The management fee paid to PI is computed daily and payable monthly at an annual rate of 1% of the average daily net assets up to $300 million, .95 of 1% of the next $700 million of average daily net assets and .90 of 1% of average daily net assets in excess of $1 billion of the Series. The effective management fee rate as of April 30, 2007 was 1.00%.
Strategic Partners International Value Fund | 23 |
Notes to Financial Statements
(Unaudited) Cont’d
Effective August 1, 2005, PI has voluntarily agreed to reimburse the Series through February 28, 2008 in order to limit operating expenses (excluding interest, tax, brokerage commissions and extraordinary expenses) to 1.61%, 2.36%, 2.36% and 1.36% of the average daily net assets of the Class A, B, C and Z shares, respectively.
The Series 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 Series. The Series compensates PIMS for distributing and servicing the Series’ Class A, Class B and Class C shares pursuant to plans of distribution (the “Class A, B and C 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 Series.
Pursuant to the Class A, B and C Plans, the Series compensates PIMS for distribution-related activities at an annual rate of up to .30 of 1%, 1% and 1% of the average daily net assets of the Class A, B and C shares, respectively. For the period ended April 30, 2007, PIMS contractually agreed to limit such fee to .25 of 1% of the average daily net assets of the Class A shares.
PIMS has advised the Series that it received approximately $36,900 in front-end sales charges resulting from sales of Class A shares, during the period ended April 30, 2007. From these fees, PIMS paid such sales charges to broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.
PIMS advised the Series that for the period ended April 30, 2007, it received approximately $8,000 and $2,400 in contingent deferred sales charges imposed upon certain redemptions by Class B and Class C shareholders, respectively.
PI and PIMS 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. The transfer agent fees and expenses in the Statement of Operations also include certain out-of-pocket expenses paid to non-affiliates, where applicable.
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The Series pays networking fees to affiliated and unaffiliated broker/dealers. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. For the period ended April 30, 2007, the Series incurred approximately $31,600 in total networking fees. These amounts are including in transfer agent’s fees and expenses in the Statement of Operations.
Prudential Investment Management, Inc. (“PIM”) is the Series’ security lending agent. For the six months ended April 30, 2007, PIM has been compensated $64 for these services.
The Fund invests in the Taxable Money Market Series, a portfolio of Dryden Core Investment Fund, formerly Prudential Core Investment Fund, pursuant to an exemptive order received from the Securities and Exchange Commission. The Taxable Money Market Series is a money market mutual fund registered under the Investment Company Act of 1940, as amended, and managed by PI.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments, for the period ended April 30, 2007 were $81,544,975 and $71,259,170, respectively.
Note 5. Distributions and Tax Information
For the fiscal year ended October 31, 2006, the tax character of total dividends paid by the Series was $9,467,550 from ordinary income.
As of October 31, 2006, the Series’ accumulated undistributed earnings on a tax basis was $14,209,179 of long-term capital gains.
The Series had a capital loss carryforward as of October 31, 2006 of approximately $3,119,000, of which $2,785,000 expires in 2010 and $334,000 expires in 2011.
The federal income tax basis of the Series’ investments and the net unrealized appreciation as of April 30, 2007 was as follows:
Tax Basis | Appreciation | Depreciation | Net Unrealized Appreciation | |||
$249,122,369 | $90,502,096 | ($2,425,287) | $88,076,809 |
The difference between book basis and tax basis was primarily attributable to deferred losses on wash sales and investments in passive foreign investment companies.
Strategic Partners International Value Fund | 25 |
Notes to Financial Statements
(Unaudited) Cont’d
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. Class B shares are sold with a CDSC which declines from 5% to zero depending upon the period of time the shares are held. Class C shares are sold with a CDSC of 1% during the first 12 months from the date of purchase. Class B shares will automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. A special exchange privilege is also available for shareholders who qualify to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
There are 500 million authorized shares of $.01 par value common stock, divided equally into four classes, designated Class A, Class B, Class C and Class Z common stock.
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | |||||
Six months ended April 30, 2007: | |||||||
Shares sold | 251,994 | $ | 7,065,833 | ||||
Shares issued in reinvestment of dividends and distributions | 126,413 | 3,403,026 | |||||
Shares reacquired | (307,224 | ) | (8,581,627 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 71,183 | 1,887,232 | |||||
Shares issued upon conversion from Class B | 142,378 | 3,962,132 | |||||
Net increase (decrease) in shares outstanding | 213,561 | $ | 5,849,364 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 634,776 | $ | 15,680,256 | ||||
Shares issued in reinvestment of dividends and distributions | 92,600 | 2,039,054 | |||||
Shares reacquired | (970,058 | ) | (23,458,112 | ) | |||
Net increase (decrease) in shares outstanding before conversion | (242,682 | ) | (5,738,802 | ) | |||
Shares issued upon conversion from Class B | 141,546 | 3,378,301 | |||||
Net increase (decrease) in shares outstanding | (101,136 | ) | $ | (2,360,501 | ) | ||
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Class B | Shares | Amount | |||||
Six months ended April 30, 2007: | |||||||
Shares sold | 68,169 | $ | 1,830,013 | ||||
Shares issued in reinvestment of dividends and distributions | 29,510 | 767,845 | |||||
Shares reacquired | (112,328 | ) | (3,017,488 | ) | |||
Net increase (decrease) in shares outstanding before conversion | (14,649 | ) | (419,630 | ) | |||
Shares reacquired upon conversion into Class A | (147,440 | ) | (3,962,132 | ) | |||
Net increase (decrease) in shares outstanding | (162,089 | ) | $ | (4,381,762 | ) | ||
Year ended October 31, 2006: | |||||||
Shares sold | 156,140 | $ | 3,771,471 | ||||
Shares issued in reinvestment of dividends and distributions | 25,034 | 537,475 | |||||
Shares reacquired | (201,729 | ) | (4,810,645 | ) | |||
Net increase (decrease) in shares outstanding before conversion | (20,555 | ) | (501,699 | ) | |||
Shares reacquired upon conversion into Class A | (145,644 | ) | (3,378,301 | ) | |||
Net increase (decrease) in shares outstanding | (166,199 | ) | $ | (3,880,000 | ) | ||
Class C | |||||||
Six months ended April 30, 2007: | |||||||
Shares sold | 44,186 | $ | 1,194,970 | ||||
Shares issued in reinvestment of dividends and distributions | 26,770 | 697,087 | |||||
Shares reacquired | (105,886 | ) | (2,855,360 | ) | |||
Net increase (decrease) in shares outstanding | (34,930 | ) | $ | (963,303 | ) | ||
Year ended October 31, 2006: | |||||||
Shares sold | 176,616 | $ | 4,305,549 | ||||
Shares issued in reinvestment of dividends and distributions | 16,596 | 356,650 | |||||
Shares reacquired | (185,223 | ) | (4,441,582 | ) | |||
Net increase (decrease) in shares outstanding | 7,989 | $ | 220,617 | ||||
Class Z | |||||||
Six months ended April 30, 2007: | |||||||
Shares sold | 1,545,930 | $ | 43,273,380 | ||||
Shares issued in reinvestment of dividends and distributions | 343,753 | 9,288,201 | |||||
Shares reacquired | (1,048,396 | ) | (29,234,413 | ) | |||
Net increase (decrease) in shares outstanding | 841,287 | $ | 23,327,168 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 2,762,586 | $ | 68,979,882 | ||||
Shares issued in reinvestment of dividends and distributions | 285,034 | 6,304,947 | |||||
Shares reacquired | (3,671,082 | ) | (91,565,550 | ) | |||
Net increase (decrease) in shares outstanding | (623,462 | ) | $ | (16,280,721 | ) | ||
Note 7. Borrowings
The Series, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with two banks. The SCA provides
Strategic Partners International Value Fund | 27 |
Notes to Financial Statements
(Unaudited) Cont’d
for a commitment of $500 million. Interest on any borrowings under the SCA is incurred at contracted market rates and a commitment fee for the unused amount is accrued daily and paid quarterly. The Funds pay a commitment fee of .07 of 1% of the unused portion of the renewed SCA. The expiration date of the renewed SCA will be October 26, 2007. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions.
The Series utilized the line of credit during for the period ended April 30, 2007. The average daily balance for the 7 days the Series had debt outstanding during the year was approximately $585,700 at a weighted average interest rate of approximately 5.715%.
Note 8. New Accounting Pronouncements
On July 13, 2006, the Financial Accounting Standards Board (FASB) released FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (FIN 48). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the Series’ tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax benefits or expenses resulting from tax positions not deemed to meet the more-likely-than-not threshold would be recorded in the year in which they arise. On December 22, 2006, the Securities and Exchange Commission delayed the effective date until the last net asset value calculation in the first required financial reporting period for its fiscal year beginning after December 15, 2006. At this time, management is evaluating the implications of FIN 48 and its impact, if any, in the financial statements has not yet been determined.
On September 20, 2006, the FASB released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (FAS 157). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements. The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. At this time, management is evaluating the implications of FAS 157 and its impact, if any, in the financial statements has not yet been determined.
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Note 9. Other
On July 19, 2006, the Board of Directors of the Fund approved an Agreement and Plan of Reorganization (the “Plan”), which provided for the transfer of all the assets of the Class A, B, C and Z shares of the Series for like shares of Dryden International Equity Fund, a series of Prudential World Fund, Inc. and the assumption of the liabilities of the Series. The Plan was not approved by the shareholders of the Series.
The expenses resulting from the Plan, including proxy solicitation costs, was paid by PI and/or affiliates and the respective funds. The reorganization costs attributable to the Series are currently reflected in the Statement of Operations.
Strategic Partners International Value Fund | 29 |
Financial Highlights
(Unaudited)
Class A | ||||
Six Months Ended April 30, 2007(b) | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 27.12 | ||
Income (loss) from investment operations: | ||||
Net investment income | .14 | |||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 3.84 | |||
Total from investment operations | 3.98 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (.03 | ) | ||
Distributions from net realized gains | (1.31 | ) | ||
Total dividends and distributions | (1.34 | ) | ||
Net asset value, end of period | $ | 29.76 | ||
Total Investment Return(a): | 15.20 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 86,781 | ||
Average net assets (000) | $ | 79,520 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees(c) | 1.70 | %(e) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.45 | %(e) | ||
Net investment income | .99 | %(e) | ||
For Class A, B, C and Z shares: | ||||
Portfolio turnover rate | 23 | %(f) |
(a) | These total returns do not consider the effect of sales load. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Calculations are based on the average daily number of shares outstanding. |
(c) | The distributor of the Series has contractually agreed to limit its distribution and service (12b-1) fees to .25 of 1% of the average daily assets of the Class A shares. |
(d) | Effective August 1, 2005 through February 28, 2008, the Manager of the Series has voluntarily agreed to reimburse the Series in order to limit operating expenses (excluding interest, tax, brokerage commissions and extraordinary expenses) to 1.61% of the average daily net assets of the Class A shares. If the Manager had not reimbursed the Series, the annual expenses (both including and excluding distribution and service (12b-1) fees) and net investment income ratios would be 1.62%, 1.37% and 1.15%, respectively, for the year ended October 31, 2005. |
(e) | Annualized |
(f) | Not Annualized. |
See Notes to Financial Statements.
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Class A | ||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||
2006(b) | 2005(b) | 2004(b) | 2003(b) | 2002(b) | ||||||||||||||
$ | 21.88 | $ | 18.29 | $ | 16.07 | $ | 14.08 | $ | 17.29 | |||||||||
.45 | .24 | .16 | .14 | .07 | ||||||||||||||
5.61 | 3.53 | 2.20 | 1.89 | (2.53 | ) | |||||||||||||
6.06 | 3.77 | 2.36 | 2.03 | (2.46 | ) | |||||||||||||
(.50 | ) | (.18 | ) | (.14 | ) | (.04 | ) | — | ||||||||||
(.32 | ) | — | — | — | (.75 | ) | ||||||||||||
(.82 | ) | (.18 | ) | (.14 | ) | (.04 | ) | (.75 | ) | |||||||||
$ | 27.12 | $ | 21.88 | $ | 18.29 | $ | 16.07 | $ | 14.08 | |||||||||
28.59 | % | 20.71 | % | 14.77 | % | 14.44 | % | (15.07 | )% | |||||||||
$ | 73,289 | $ | 61,347 | $ | 55,530 | $ | 41,889 | $ | 41,011 | |||||||||
$ | 67,590 | $ | 59,739 | $ | 49,953 | $ | 40,463 | $ | 49,279 | |||||||||
1.65 | % | 1.62 | %(d) | 1.61 | % | 1.72 | % | 1.64 | % | |||||||||
1.40 | % | 1.37 | %(d) | 1.36 | % | 1.47 | % | 1.39 | % | |||||||||
1.83 | % | 1.15 | %(d) | .90 | % | .97 | % | .42 | % | |||||||||
48 | % | 121 | % | 24 | % | 23 | % | 35 | % |
See Notes to Financial Statements.
Strategic Partners International Value Fund | 31 |
Financial Highlights
(Unaudited) Cont’d
Class B | ||||
Six Months Ended April 30, 2007(b) | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 26.24 | ||
Income (loss) from investment operations: | ||||
Net investment income (loss) | .01 | |||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 3.73 | |||
Total from investment operations | 3.74 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | — | |||
Distributions from net realized gains | (1.31 | ) | ||
Total dividends and distributions | (1.31 | ) | ||
Net asset value, end of period | $ | 28.67 | ||
Total Investment Return(a): | 14.77 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 16,266 | ||
Average net assets (000) | $ | 17,443 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 2.45 | %(d) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.45 | %(d) | ||
Net investment income (loss) | .07 | %(d) |
(a) | These total returns do not consider the effect of sales load. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Calculations are based on the average daily number of shares outstanding. |
(c) | Effective August 1, 2005 through February 28, 2008, the Manager of the Series has voluntarily agreed to reimburse the Series in order to limit operating expenses (excluding interest, tax, brokerage commissions and extraordinary expenses) to 2.36% of the average daily net assets of the Class B shares. If the Manager had not reimbursed the Series, the annual expenses (both including and excluding distribution and service (12b-1) fees) and net investment income ratios would be 2.37%, 1.37% and 0.38%, respectively, for the year ended October 31, 2005. |
(d) | Annualized. |
See Notes to Financial Statements.
32 | Visit our website at www.jennisondryden.com |
Class B | ||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||
2006(b) | 2005(b) | 2004(b) | 2003(b) | 2002(b) | ||||||||||||||
$ | 21.19 | $ | 17.73 | $ | 15.58 | $ | 13.71 | $ | 16.99 | |||||||||
.19 | .08 | .03 | .03 | (.05 | ) | |||||||||||||
5.49 | 3.42 | 2.15 | 1.84 | (2.48 | ) | |||||||||||||
5.68 | 3.50 | 2.18 | 1.87 | (2.53 | ) | |||||||||||||
(.31 | ) | (.04 | ) | (.03 | ) | — | — | |||||||||||
(.32 | ) | — | — | — | (.75 | ) | ||||||||||||
(.63 | ) | (.04 | ) | (.03 | ) | — | (.75 | ) | ||||||||||
$ | 26.24 | $ | 21.19 | $ | 17.73 | $ | 15.58 | $ | 13.71 | |||||||||
27.51 | % | 19.77 | % | 13.98 | % | 13.64 | % | (15.77 | )% | |||||||||
$ | 19,141 | $ | 18,978 | $ | 25,917 | $ | 33,651 | $ | 37,636 | |||||||||
$ | 19,346 | $ | 23,092 | $ | 33,863 | $ | 33,581 | $ | 49,420 | |||||||||
2.40 | % | 2.37 | %(c) | 2.36 | % | 2.47 | % | 2.39 | % | |||||||||
1.40 | % | 1.37 | %(c) | 1.36 | % | 1.47 | % | 1.39 | % | |||||||||
.78 | % | .38 | %(c) | .15 | % | .20 | % | (.33 | )% |
See Notes to Financial Statements.
Strategic Partners International Value Fund | 33 |
Financial Highlights
(Unaudited) Cont’d
Class C | ||||
Six Months Ended April 30, 2007(b) | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 26.27 | ||
Income (loss) from investment operations: | ||||
Net investment income (loss) | .02 | |||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 3.73 | |||
Total from investment operations | 3.75 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | — | |||
Distributions from net realized gains | (1.31 | ) | ||
Total dividends and distributions | (1.31 | ) | ||
Net asset value, end of period | $ | 28.71 | ||
Total Investment Return(a): | 14.79 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 16,440 | ||
Average net assets (000) | $ | 15,814 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 2.45 | %(d) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.45 | %(d) | ||
Net investment income (loss) | .18 | %(d) |
(a) | These total returns do not consider the effect of sales load. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Calculations are based on the average daily number of shares outstanding. |
(c) | Effective August 1, 2005 through February 28, 2008, the Manager of the Series has voluntarily agreed to reimburse the Series in order to limit operating expenses (excluding interest, tax, brokerage commissions and extraordinary expenses) to 2.36% of the average daily net assets of the Class C shares. If the Manager had not reimbursed the Series, the annual expenses (both including and excluding distribution and service (12b-1) fees) and net investment income ratios would be 2.37%, 1.37% and 0.40%, respectively, for the year ended October 31, 2005. |
(d) | Annualized. |
See Notes to Financial Statements.
34 | Visit our website at www.jennisondryden.com |
Class C | ||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||
2006(b) | 2005(b) | 2004(b) | 2003(b) | 2002(b) | ||||||||||||||
$ | 21.21 | $ | 17.74 | $ | 15.60 | $ | 13.73 | $ | 17.00 | |||||||||
.23 | .08 | .06 | .03 | (.05 | ) | |||||||||||||
5.46 | 3.43 | 2.11 | 1.84 | (2.47 | ) | |||||||||||||
5.69 | 3.51 | 2.17 | 1.87 | (2.52 | ) | |||||||||||||
(.31 | ) | (.04 | ) | (.03 | ) | — | — | |||||||||||
(.32 | ) | — | — | — | (.75 | ) | ||||||||||||
(.63 | ) | (.04 | ) | (.03 | ) | — | (.75 | ) | ||||||||||
$ | 26.27 | $ | 21.21 | $ | 17.74 | $ | 15.60 | $ | 13.73 | |||||||||
27.53 | % | 19.81 | % | 13.90 | % | 13.62 | % | (15.70 | )% | |||||||||
$ | 15,962 | $ | 12,720 | $ | 13,040 | $ | 7,438 | $ | 7,850 | |||||||||
$ | 14,909 | $ | 13,293 | $ | 11,763 | $ | 6,988 | $ | 9,978 | |||||||||
2.40 | % | 2.37 | %(c) | 2.36 | % | 2.47 | % | 2.39 | % | |||||||||
1.40 | % | 1.37 | %(c) | 1.36 | % | 1.47 | % | 1.39 | % | |||||||||
.98 | % | .40 | %(c) | .33 | % | .18 | % | (.34 | )% |
See Notes to Financial Statements.
Strategic Partners International Value Fund | 35 |
Financial Highlights
(Unaudited) Cont’d
Class Z | ||||
Six Months Ended April 30, 2007(b) | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 27.26 | ||
Income (loss) from investment operations: | ||||
Net investment income | .18 | |||
Net realized and unrealized gain (loss) on investments and foreign currency transactions | 3.86 | |||
Total from investment operations | 4.04 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (.10 | ) | ||
Distributions from net realized gains | (1.31 | ) | ||
Total dividends and distributions | (1.41 | ) | ||
Net asset value, end of period | $ | 29.89 | ||
Total Investment Return(a): | 15.34 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 219,235 | ||
Average net assets (000) | $ | 195,866 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 1.45 | %(d) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.45 | %(d) | ||
Net investment income | 1.27 | %(d) |
(a) | These total returns do not consider the effect of sales load. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Calculations are based on the average daily number of shares outstanding. |
(c) | Effective August 1, 2005 through February 28, 2006, the Manager of the Series has voluntarily agreed to reimburse the Series in order to limit operating expenses (excluding interest, tax, brokerage commissions and extraordinary expenses) to 1.36% of the average daily net assets of the Class Z shares. If the Manager had not reimbursed the Series, the annual expenses (both including and excluding distribution and service (12b-1) fees) and net investment income ratios would be 1.37%, 1.37% and 1.43%, respectively, for the year ended October 31, 2005. |
(d) | Annualized. |
See Notes to Financial Statements.
36 | Visit our website at www.jennisondryden.com |
Class Z | ||||||||||||||||||
Year Ended October 31, | ||||||||||||||||||
2006(b) | 2005(b) | 2004(b) | 2003(b) | 2002(b) | ||||||||||||||
$ | 22.02 | $ | 18.41 | $ | 16.17 | $ | 14.17 | $ | 17.39 | |||||||||
.28 | .29 | .20 | .18 | .11 | ||||||||||||||
5.84 | 3.54 | 2.22 | 1.90 | (2.55 | ) | |||||||||||||
6.12 | 3.83 | 2.42 | 2.08 | (2.44 | ) | |||||||||||||
(.56 | ) | (.22 | ) | (.18 | ) | (.08 | ) | (.03 | ) | |||||||||
(.32 | ) | — | — | — | (.75 | ) | ||||||||||||
(.88 | ) | (.22 | ) | (.18 | ) | (.08 | ) | (.78 | ) | |||||||||
$ | 27.26 | $ | 22.02 | $ | 18.41 | $ | 16.17 | $ | 14.17 | |||||||||
28.78 | % | 20.97 | % | 15.09 | % | 14.76 | % | (14.91 | )% | |||||||||
$ | 177,008 | $ | 156,678 | $ | 295,418 | $ | 310,521 | $ | 269,625 | |||||||||
$ | 170,067 | $ | 264,624 | $ | 334,003 | $ | 276,808 | $ | 308,825 | |||||||||
1.40 | % | 1.37 | %(c) | 1.36 | % | 1.47 | % | 1.39 | % | |||||||||
1.40 | % | 1.37 | %(c) | 1.36 | % | 1.47 | % | 1.39 | % | |||||||||
1.13 | % | 1.43 | %(c) | 1.10 | % | 1.22 | % | .68 | % |
See Notes to Financial Statements.
Strategic Partners International Value Fund | 37 |
n MAIL | n TELEPHONE | n WEBSITE | ||
Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | (800) 225-1852 | www.jennisondryden.com |
PROXY VOTING |
The Board of Directors of the Fund has delegated to the Fund’s investment subadvisers 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 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. 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 Commission’s website. |
DIRECTORS |
Linda W. Bynoe • David E.A. Carson • Robert F. Gunia • Robert E. La Blanc • Douglas H. McCorkindale • Richard A. Redeker • Judy A. Rice • Robin B. Smith • Stephen G. Stoneburn • Clay T. Whitehead |
OFFICERS |
Judy A. Rice, President • Robert F. Gunia, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Kathryn L. Quirk, Chief Legal Officer • Deborah A. Docs, Secretary • Lee D. Augsburger, Chief Compliance Officer • Valerie M. Simpson, Deputy Chief Compliance Officer • Noreen M. Fierro, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • John P. Schwartz, Assistant Secretary • Andrew R. French, Assistant Secretary • M. Sadiq Peshimam, Assistant Treasurer |
MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
INVESTMENT SUBADVISERS | LSV Asset Management Thornburg Investment Management, Inc. | One North Wacker Drive Suite 4000 Chicago, IL 60606 119 East Marcy Street Santa Fe, NM 87501 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
CUSTODIAN | PFPC Trust Company | 400 Bellevue Parkway Wilmington, DE 19809 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | P.O. Box 9658 Providence, RI 02940 | ||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
FUND COUNSEL | Sullivan & Cromwell LLP | 125 Broad Street New York, NY 10004 |
An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus for the Fund contains this and other information about the Fund. An investor may obtain a prospectus by visiting our website at www.jennisondryden.com or by calling (800) 225-1852. The prospectus should be read carefully before investing. |
E-DELIVERY |
To receive your mutual fund documents on-line, go to www.icsdelivery.com/prudential/funds and enroll. Instead of receiving printed documents by mail, you will receive notification via e-mail when new materials are available. You can cancel your enrollment or change your e-mail address at any time by clicking on the change/cancel enrollment option at the icsdelivery website address. |
SHAREHOLDER COMMUNICATIONS WITH DIRECTORS |
Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Strategic Partners International Value Fund, Prudential Investments, Attn: Board of Directors, 100 Mulberry Street, Gateway Center Three, 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. |
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 (800) SEC-0330 (732-0330). The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each fiscal quarter. |
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 |
Strategic Partners International Value Fund | ||||||||||||
Share Class | A | B | C | Z | ||||||||
NASDAQ | PISAX | PISBX | PCISX | PISZX | ||||||||
CUSIP | 743969503 | 743969602 | 743969701 | 743969800 | ||||||||
MFSP115E2 IFS-A134880 Ed. 06/2007
Item | 2 | – | Code of Ethics – Not required, as this is not an annual filing. | |||
Item | 3 | – | Audit Committee Financial Expert – Not required, as this is not an annual filing. | |||
Item | 4 | – | Principal Accountant Fees and Services – Not required, as this is not an annual filing. | |||
Item | 5 | – | Audit Committee of Listed Registrants – Not applicable. | |||
Item | 6 | – | Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form. | |||
Item | 7 | – | Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable. | |||
Item | 8 | – | Portfolio Managers of Closed-End Management Investment Companies – Not applicable. | |||
Item | 9 | – | Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable. | |||
Item | 10 | – | Submission of Matters to a Vote of Security Holders – Not applicable. | |||
Item | 11 | – | Controls and Procedures |
(a) | It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. | |||
(b) | There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting. |
Item | 12 | – | Exhibits |
(a) | (1) | Code of Ethics – Not required, as this is not an annual filing. | ||
(2) | Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT. | |||
(3) | Any written solicitation to purchase securities under Rule 23c-1. – Not applicable. | |||
(b) | Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Prudential World Fund, Inc. |
By (Signature and Title)* | /s/ Deborah A. Docs | |
Deborah A. Docs | ||
Secretary |
Date | June 28, 2007 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By (Signature and Title)* | /s/ Judy A. Rice | |
Judy A. Rice | ||
President and Principal Executive Officer |
Date | June 28, 2007 |
By (Signature and Title)* | /s/ Grace C. Torres | |
Grace C. Torres | ||
Treasurer and Principal Financial Officer |
Date | June 28, 2007 |
* | Print the name and title of each signing officer under his or her signature. |