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: | 811-04864 |
JennisonDryden Portfolios
Exact name of registrant as specified in charter: |
Gateway Center 3, 100 Mulberry Street, Newark, New Jersey 07102 |
Address of principal executive offices: |
Deborah A. Docs
Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Name and address of agent for service: |
Registrant’s telephone number, including area code: 800-225-1852
Date of fiscal year end: 8/31/2008
Date of reporting period: 2/29/2008
Item 1 – Reports to Stockholders
FEBRUARY 29, 2008 | SEMIANNUAL REPORT |
Jennison Value Fund
FUND TYPE
Large-capitalization stock
OBJECTIVE
Capital appreciation
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.
The accompanying financial statements as of February 29, 2008, were not audited and, accordingly, no auditor’s opinion is expressed on them.
JennisonDryden, Jennison, Prudential Financial and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.
April 15, 2008
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 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.
Sincerely,
Judy A. Rice, President
Jennison Value Fund
Jennison Value Fund | 1 |
Your Fund’s Performance
Fund objective
The investment objective of the Jennison Value Fund is capital appreciation. 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, 1.02%; Class B, 1.72%; Class C, 1.72%; Class L, 1.22%; Class M, 1.72%; Class R, 1.47%; Class X, 1.72%; Class Z, 0.72%. Net operating expenses apply to: Class A, 0.97%; Class B, 1.72%; Class C, 1.72%; Class L, 1.22%; Class M, 1.72%; Class R, 1.22%; Class X, 1.72%; Class Z, 0.72%, after contractual reduction through 2/28/2008 for Class A shares and 12/31/2008 for Class R shares.
Cumulative Total Returns as of 2/29/08 | ||||||||||||||
Six Months | One Year | Five Years | Ten Years | Since Inception1 | ||||||||||
Class A | –9.57 | % | –5.63 | % | 100.13 | % | 73.10 | % | — | |||||
Class B | –9.94 | –6.37 | 92.88 | 60.58 | — | |||||||||
Class C | –9.89 | –6.32 | 92.98 | 60.66 | — | |||||||||
Class L | –9.68 | N/A | N/A | N/A | –4.91% (3/16/07) | |||||||||
Class M | –9.89 | N/A | N/A | N/A | –5.36 (3/16/07) | |||||||||
Class R | –9.63 | –5.82 | N/A | N/A | 25.95 (6/3/05) | |||||||||
Class X | –9.94 | N/A | N/A | N/A | –5.41 (3/16/07) | |||||||||
Class Z | –9.45 | –5.39 | 102.72 | 77.59 | — | |||||||||
Russell 1000 Value Index2 | –10.38 | –7.91 | 91.63 | 83.25 | ** | |||||||||
S&P 500 Index3 | –8.79 | –3.60 | 73.32 | 48.98 | *** | |||||||||
Lipper Multi-Cap Value Funds Avg.4 | –10.67 | –8.33 | 85.80 | 83.51 | **** |
2 | Visit our website at www.jennisondryden.com |
Average Annual Total Returns5 as of 3/31/08 | |||||||||||
One Year | Five Years | Ten Years | Since Inception1 | ||||||||
Class A | –15.61 | % | 13.05 | % | 4.00 | % | — | ||||
Class B | –15.09 | 13.34 | 3.80 | — | |||||||
Class C | –12.14 | 13.46 | 3.80 | — | |||||||
Class L | –16.07 | N/A | N/A | –13.37% (3/16/07) | |||||||
Class M | –15.80 | N/A | N/A | –12.41 (3/16/07) | |||||||
Class R | –10.90 | N/A | N/A | 7.00 (6/3/05) | |||||||
Class X | –15.84 | N/A | N/A | –12.46 (3/16/07) | |||||||
Class Z | –10.52 | 14.59 | 4.85 | — | |||||||
Russell 1000 Value Index2 | –9.99 | 13.68 | 5.54 | ** | |||||||
S&P 500 Index3 | –5.08 | 11.32 | 3.50 | *** | |||||||
Lipper Multi-Cap Value Funds Avg.4 | –11.06 | 12.62 | 5.43 | **** |
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 L, Class M, and Class X shares are subject to a maximum CDSC of 5%, 1%, 1%, 6%, and 6%, respectively. Class R and 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 date returns are provided for any share class with less than 10 calendar years.
2The Russell 1000 Value Index is an unmanaged index comprising those securities in the Russell 1000 Index with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios, higher dividend yields, and lower forecasted growth values.
3The S&P 500 Index is an unmanaged index of 500 stocks of large U.S. public companies. It gives an indicating of how U.S. stock prices have performed.
4The Lipper Multi-Cap Value Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper Multi-Cap Value Funds category for the periods noted. Funds in the Lipper Average typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value compared with the S&P SuperComposite 1500 Index.
5The average annual total returns take into account applicable sales charges. Class A, Class B, Class C, Class L, Class M, Class R, and Class X shares are subject to an annual distribution and service (12b-1) fee of up to 0.30%, 1.00%, 1.00%, 0.50%, 1.00%, 0.75%, and 1.00%, respectively. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Approximately eight years after purchase, Class M shares will automatically convert to Class A shares on a quarterly basis. Approximately 10 years after purchase (eight years in the case of shares purchased prior to August 19, 1998),
Jennison Value Fund | 3 |
Your Fund’s Performance (continued)
Class X 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.
**Russell 1000 Value Index Closest Month-End to Inception cumulative total return as of 2/29/08 is –9.31% for Class L, Class M, and Class X; and 19.37% for Class R. Russell 1000 Value Index Closest Month-End to Inception average annual total returns as of 3/31/08 are –9.99% for Class L, Class M, and Class X; and 6.16% for Class R.
***S&P 500 Index Closest Month-End to Inception cumulative total return as of 2/29/08 is –4.67% for Class L, Class M, and Class X; and 17.66% for Class R. S&P 500 Index Closest Month-End to Inception average annual total returns as of 3/31/08 are –5.08% for Class L, Class M, and Class X; and 5.74% for Class R.
****Lipper Average Closest Month-End to Inception cumulative total return as of 2/29/08 is –9.41% for Class L, Class M, and Class X; and 16.12% for Class R. Lipper Average Closest Month-End to Inception average annual total returns as of 3/31/08 are –11.06% for Class L, Class M, and Class X; and 4.67% for Class R.
Investors cannot invest directly in an index. The returns for the Russell 1000 Value Index, the S&P 500 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 expressed as a percentage of net assets as of 2/29/08 | |||
Comcast Corp., Media | 3.0 | % | |
Cadbury Schweppes PLC, Food Products | 2.7 | ||
Kroger Co. (The), Food & Staples Retailing | 2.6 | ||
Waste Management, Inc., Commercial Services & Supplies | 2.5 | ||
H & R Block, Inc., Diversified Consumer Services | 2.5 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a percentage of net assets as of 2/29/08 | |||
Oil, Gas & Consumable Fuels | 17.9 | % | |
Media | 7.0 | ||
Pharmaceuticals | 6.0 | ||
Food & Staples Retailing | 5.7 | ||
Insurance | 5.1 |
Industry weightings reflect only long-term investments and are subject to change.
4 | Visit our website at www.jennisondryden.com |
Fees and Expenses (Unaudited)
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The example is based on an investment of $1,000 invested on September 1, 2007, at the beginning of the period, and held through the six-month period ended February 29, 2008. 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 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 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
Jennison Value Fund | 5 |
Fees and Expenses (continued)
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.
Jennison Value Fund | Beginning Account September 1, 2007 | Ending Account February 29, 2008 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Class A | Actual | $ | 1,000.00 | $ | 904.30 | 0.97 | % | $ | 4.59 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,020.04 | 0.97 | % | $ | 4.87 | ||||||
Class B | Actual | $ | 1,000.00 | $ | 900.60 | 1.72 | % | $ | 8.13 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,016.31 | 1.72 | % | $ | 8.62 | ||||||
Class C | Actual | $ | 1,000.00 | $ | 901.10 | 1.72 | % | $ | 8.13 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,016.31 | 1.72 | % | $ | 8.62 | ||||||
Class L | Actual | $ | 1,000.00 | $ | 903.20 | 1.22 | % | $ | 5.77 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,018.80 | 1.22 | % | $ | 6.12 | ||||||
Class M | Actual | $ | 1,000.00 | $ | 901.10 | 1.72 | % | $ | 8.13 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,016.31 | 1.72 | % | $ | 8.62 | ||||||
Class R | Actual | $ | 1,000.00 | $ | 903.70 | 1.22 | % | $ | 5.77 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,018.80 | 1.22 | % | $ | 6.12 | ||||||
Class X | Actual | $ | 1,000.00 | $ | 900.60 | 1.72 | % | $ | 8.13 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,016.31 | 1.72 | % | $ | 8.62 | ||||||
Class Z | Actual | $ | 1,000.00 | $ | 905.50 | 0.72 | % | $ | 3.41 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,021.28 | 0.72 | % | $ | 3.62 | ||||||
* Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 182 days in the six-month period ended February 29, 2008, and divided by the 366 days in the Fund’s fiscal year ending August 31, 2008 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
6 | Visit our website at www.jennisondryden.com |
Portfolio of Investments
as of February 29, 2008 (Unaudited)
Shares | Description | Value (Note 1) | |||
LONG-TERM INVESTMENTS 98.0% | |||||
COMMON STOCKS 97.3% | |||||
Biotechnology 1.8% | |||||
429,900 | Amgen, Inc.(a) | $ | 19,569,048 | ||
Capital Markets 3.2% | |||||
363,562 | Bank of New York Mellon Corp. (The) | 15,949,465 | |||
196,300 | Merrill Lynch & Co., Inc.(b) | 9,728,628 | |||
530,700 | TD Ameritrade Holding Corp.(a)(b) | 9,711,810 | |||
35,389,903 | |||||
Commercial Banks 1.2% | |||||
1,738,269 | Royal Bank of Scotland Group PLC (United Kingdom) | 13,142,192 | |||
Commercial Services & Supplies 2.5% | |||||
838,760 | Waste Management, Inc. | 27,536,491 | |||
Communications Equipment 1.5% | |||||
381,900 | QUALCOMM, Inc. | 16,181,103 | |||
Computers & Peripherals 3.1% | |||||
424,700 | Lexmark International, Inc.(a)(b) | 14,027,841 | |||
925,700 | Seagate Technology(b) | 19,967,349 | |||
33,995,190 | |||||
Consumer Finance 1.4% | |||||
795,600 | SLM Corp.(b) | 15,601,716 | |||
Diversified Consumer Services 3.8% | |||||
948,700 | Career Education Corp.(a)(b) | 14,088,195 | |||
1,473,100 | H&R Block, Inc. | 27,473,315 | |||
41,561,510 | |||||
Diversified Financial Services 2.2% | |||||
609,200 | Citigroup, Inc. | 14,444,132 | |||
120,000 | KKR Private Equity Investors LLP | 1,800,000 | |||
KKR Private Equity Investors LLP—RDU, Private Placement, 144A | |||||
536,200 | (cost $13,370,899; purchased 5/3/06 - 5/5/06)(f)(g) | 8,043,000 | |||
24,287,132 | |||||
Diversified Telecommunication Services 0.8% | |||||
243,450 | Verizon Communications, Inc. | 8,842,104 |
See Notes to Financial Statements.
Jennison Value Fund | 7 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Electric Utilities 2.3% | |||||
133,200 | Entergy Corp. | $ | 13,684,968 | ||
268,000 | Progress Energy, Inc. | 11,231,880 | |||
24,916,848 | |||||
Food & Staples Retailing 5.7% | |||||
386,200 | CVS Caremark Corp. | 15,594,756 | |||
1,165,900 | Kroger Co. (The) | 28,273,075 | |||
378,100 | Wal-Mart Stores, Inc.(b) | 18,749,979 | |||
62,617,810 | |||||
Food Products 5.0% | |||||
676,300 | Cadbury Schweppes PLC, ADR (United Kingdom) | 30,332,055 | |||
1,100,600 | ConAgra Foods, Inc. | 24,323,260 | |||
54,655,315 | |||||
Healthcare Providers & Services 2.3% | |||||
715,400 | Omnicare, Inc.(b) | 15,009,092 | |||
155,300 | WellPoint, Inc.(a) | 10,883,424 | |||
25,892,516 | |||||
Household Products 1.8% | |||||
307,100 | Kimberly-Clark Corp. | 20,016,778 | |||
Independent Power Producers & Energy Traders 1.9% | |||||
516,600 | NRG Energy, Inc.(a)(b) | 21,320,082 | |||
Industrial Conglomerates 1.8% | |||||
584,900 | General Electric Co. | 19,383,586 | |||
Insurance 5.1% | |||||
471,100 | American International Group, Inc. | 22,075,746 | |||
338,700 | Axis Capital Holdings Ltd. | 12,487,869 | |||
527,400 | Loews Corp. | 22,066,416 | |||
56,630,031 | |||||
Internet & Catalog Retail 1.5% | |||||
853,300 | IAC/InterActiveCorp.(a)(b) | 16,980,670 | |||
Media 7.0% | |||||
1,691,800 | Comcast Corp. (Class A)(a)(b) | 33,057,772 | |||
687,212 | Liberty Global, Inc. (Series C)(a) | 24,100,525 |
See Notes to Financial Statements.
8 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Media (cont’d.) | |||||
42,000 | Time Warner, Inc. | $ | 655,620 | ||
1,619,200 | XM Satellite Radio Holdings, Inc. (Class A)(a)(b) | 19,106,560 | |||
76,920,477 | |||||
Metals & Mining 0.7% | |||||
79,232 | Freeport-McMoRan Copper & Gold, Inc. (Class B)(b) | 7,991,340 | |||
Multi-Utilities 2.0% | |||||
414,400 | Sempra Energy | 22,017,072 | |||
Office Electronics 1.5% | |||||
1,143,800 | Xerox Corp. | 16,813,860 | |||
Oil, Gas & Consumable Fuels 17.9% | |||||
229,700 | Devon Energy Corp. | 23,594,784 | |||
396,500 | Marathon Oil Corp. | 21,077,940 | |||
217,100 | Murphy Oil Corp. | 17,450,498 | |||
607,800 | Nexen, Inc. | 18,951,204 | |||
351,100 | Occidental Petroleum Corp. | 27,164,607 | |||
227,900 | Petroleo Brasileiro SA, ADR (Brazil) | 26,741,786 | |||
168,700 | Suncor Energy, Inc. | 17,409,840 | |||
780,600 | Talisman Energy, Inc. | 13,231,170 | |||
Trident Resources Corp., Private (Canada) | |||||
236,629 | (cost $9,942,621; purchased 3/11/05 - 1/5/06)(a)(f)(g) | 2,404,155 | |||
316,200 | Williams Cos., Inc. (The) | 11,389,524 | |||
288,700 | XTO Energy, Inc. | 17,815,677 | |||
197,231,185 | |||||
Paper & Forest Products 0.9% | |||||
1,611,300 | Domtar Corp.(a) | 10,263,981 | |||
Pharmaceuticals 6.0% | |||||
257,800 | Abbott Laboratories | 13,805,190 | |||
959,100 | Mylan, Inc. | 11,355,744 | |||
845,700 | Schering-Plough Corp. | 18,351,690 | |||
510,800 | Wyeth | 22,281,096 | |||
65,793,720 | |||||
Semiconductors & Semiconductor Equipment 1.6% | |||||
958,900 | Marvell Technology Group Ltd.(a) | 10,845,159 | |||
2,407,700 | Spansion, Inc. (Class A)(a)(b) | 6,621,175 | |||
17,466,334 |
See Notes to Financial Statements.
Jennison Value Fund | 9 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Software 4.2% | |||||
497,700 | CA, Inc. | $ | 11,387,376 | ||
452,200 | Microsoft Corp. | 12,308,884 | |||
1,352,100 | Symantec Corp.(a) | 22,769,364 | |||
46,465,624 | |||||
Thrifts & Mortgage Finance 2.3% | |||||
434,225 | Fannie Mae | 12,006,321 | |||
819,240 | People’s United Financial, Inc.(b) | 13,812,387 | |||
25,818,708 | |||||
Tobacco 1.2% | |||||
185,140 | Altria Group, Inc. | 13,541,140 | |||
Wireless Telecommunication Services 3.1% | |||||
469,000 | NII Holdings, Inc.(a) | 18,633,370 | |||
1,124,725 | Sprint Nextel Corp. | 7,996,795 | |||
1,539,600 | Virgin Mobile USA, Inc.(a)(b) | 7,805,772 | |||
34,435,937 | |||||
TOTAL COMMON STOCKS | 1,073,279,403 | ||||
Principal | |||||
CORPORATE BONDS 0.7% | |||||
Oil, Gas & Consumable Fuels | |||||
Trident Resources Corp., Note, Private, (Canada), (PIK) | |||||
10.64%, 8/12/12(f)(g) | |||||
$ 7,850 | (cost $7,475,688; purchased 8/20/07) | 7,414,541 | |||
Units | |||||
WARRANTS | |||||
Oil, Gas & Consumable Fuels | |||||
Trident Resources Corp., Private, (Canada) expiring 1/01/15(a)(f)(g) | |||||
730,398 | (cost $0; purchased 8/20/07) | 74 | |||
TOTAL LONG-TERM INVESTMENTS | 1,080,694,018 | ||||
See Notes to Financial Statements.
10 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | ||||
SHORT-TERM INVESTMENT 22.0% |
| |||||
Affiliated Money Market Mutual Fund | ||||||
Dryden Core Investment Fund - Taxable Money Market Series | ||||||
243,266,783 | (cost $243,266,783; includes $219,441,143 of cash collateral | $ | 243,266,783 | |||
TOTAL INVESTMENTS(e) 120.0% | 1,323,960,801 | |||||
Liabilities in excess of other assets (20.0%) | (220,645,284 | ) | ||||
NET ASSETS 100.0% | $ | 1,103,315,517 | ||||
The | following abbreviations are used in portfolio descriptions: |
144A—Securities were purchased pursuant to Rule 144A under the Securities Act of 1933 and may not be resold subject to that rule except to qualified institutional buyers. Unless otherwise noted, 144A securities are deemed to be liquid.
ADR—American Depositary Receipt
RDU—Restricted Depositary Unit
# | Principal amount is shown in U.S. dollars unless otherwise stated. |
(a) | Non-income producing security. |
(b) | All or a portion of security is on loan. The aggregate market value of such securities is $202,638,617; cash collateral of $219,441,143 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. |
(c) | Represents security, or portion thereof, purchased with cash collateral received for securities on loan. |
(d) | Prudential Investments LLC, the Manager of the Fund, also serves as Manager of the Dryden Core Investment Fund—Taxable Money Market Series. |
(e) | As of February 29, 2008, five securities valued at $31,003,962 and representing 2.8% of net assets were fair valued in accordance with the policies adopted by the Board of Trustees. |
(f) | Indicates an illiquid security. |
(g) | Indicates a security restricted to resale. The aggregate cost of such a security is $30,789,208. The aggregate value of $17,861,770 is approximately 1.6% of net assets. |
See Notes to Financial Statements.
Jennison Value Fund | 11 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of nets assets as of February 29, 2008 were as follows:
Affiliated Money Market Mutual Fund (including 19.9% of collateral received for securities on loan) | 22.0 | % | |
Oil, Gas & Consumable Fuels | 18.6 | ||
Media | 7.0 | ||
Pharmaceuticals | 6.0 | ||
Food & Staples Retailing | 5.7 | ||
Insurance | 5.1 | ||
Food Products | 5.0 | ||
Software | 4.2 | ||
Diversified Consumer Services | 3.8 | ||
Capital Markets | 3.2 | ||
Computers & Peripherals | 3.1 | ||
Wireless Telecommunication Services | 3.1 | ||
Commercial Services & Supplies | 2.5 | ||
Electric Utilities | 2.3 | ||
Healthcare Providers & Services | 2.3 | ||
Thrifts & Mortgage Finance | 2.3 | ||
Diversified Financial Services | 2.2 | ||
Multi-Utilities | 2.0 | ||
Independent Power Producers & Energy Traders | 1.9 | ||
Biotechnology | 1.8 | ||
Household Products | 1.8 | ||
Industrial Conglomerates | 1.8 | ||
Semiconductors & Semiconductor Equipment | 1.6 | ||
Communications Equipment | 1.5 | ||
Internet & Catalog Retail | 1.5 | ||
Office Electronics | 1.5 | ||
Consumer Finance | 1.4 | ||
Commercial Banks | 1.2 | ||
Tobacco | 1.2 | ||
Paper & Forest Products | 0.9 | ||
Diversified Telecommunication Services | 0.8 | ||
Metals & Mining | 0.7 | ||
120.0 | |||
Liabilities in excess of other assets | (20.0 | ) | |
100.0 | % | ||
See Notes to Financial Statements.
12 | Visit our website at www.jennisondryden.com |
Financial Statements
(Unaudited)
FEBRUARY 29, 2008 | SEMIANNUAL REPORT |
Jennison Value Fund
Statement of Assets and Liabilities
as of February 29, 2008 (Unaudited)
Assets | |||
Investments at value, including securities on loan of $202,638,617: | |||
Unaffiliated investments (cost $1,067,957,259) | $ | 1,080,694,018 | |
Affiliated investments (cost $243,266,783) | 243,266,783 | ||
Foreign currency, at value (cost $12,990) | 13,338 | ||
Receivable for investments sold | 44,856,838 | ||
Dividends and interest receivable | 1,598,373 | ||
Receivable for Fund shares sold | 623,789 | ||
Foreign tax reclaim receivable | 294,729 | ||
Prepaid expenses | 12,737 | ||
Total assets | 1,371,360,605 | ||
Liabilities | |||
Payable to broker for collateral for securities on loan | 219,441,143 | ||
Payable for investments purchased | 41,538,781 | ||
Payable for Fund shares reacquired | 4,949,905 | ||
Payable to custodian | 632,662 | ||
Management fee payable | 485,088 | ||
Accrued expenses | 468,001 | ||
Distribution fee payable | 296,415 | ||
Affiliated transfer agent fee payable | 224,008 | ||
Deferred trustees’ fees | 9,085 | ||
Total liabilities | 268,045,088 | ||
Net Assets | $ | 1,103,315,517 | |
Net assets were comprised of: | |||
Shares of beneficial interest, at par | $ | 664,731 | |
Paid-in capital in excess of par | 1,042,960,891 | ||
1,043,625,622 | |||
Undistributed net investment income | 1,397,254 | ||
Accumulated net realized gain on investment and foreign currency transactions | 45,552,253 | ||
Net unrealized appreciation on investments and foreign currencies | 12,740,388 | ||
Net assets, February 29, 2008 | $ | 1,103,315,517 | |
See Notes to Financial Statements.
14 | Visit our website at www.jennisondryden.com |
Class A | |||
Net asset value and redemption price per share | |||
($852,487,888 ÷ 51,282,811 shares of beneficial interest issued and outstanding) | $ | 16.62 | |
Maximum sales charge (5.50% of offering price) | .97 | ||
Maximum offering price to public | $ | 17.59 | |
Class B | |||
Net asset value, offering price and redemption price per share | |||
($83,504,565 ÷ 5,087,040 shares of beneficial interest issued and outstanding) | $ | 16.42 | |
Class C | |||
Net asset value, offering price and redemption price per share | |||
($51,620,360 ÷ 3,144,396 shares of beneficial interest issued and outstanding) | $ | 16.42 | |
Class L | |||
Net asset value, offering price and redemption price per share | |||
($3,844,055 ÷ 231,982 shares of beneficial interest issued and outstanding) | $ | 16.57 | |
Class M | |||
Net asset value, offering price and redemption price per share | |||
($8,852,877 ÷ 539,025 shares of beneficial interest issued and outstanding) | $ | 16.42 | |
Class R | |||
Net asset value, offering price and redemption price per share | |||
($3,423,526 ÷ 206,532 shares of beneficial interest issued and outstanding) | $ | 16.58 | |
Class X | |||
Net asset value, offering price and redemption price per share | |||
($2,737,099 ÷ 166,761 shares of beneficial interest issued and outstanding) | $ | 16.41 | |
Class Z | |||
Net asset value, offering price and redemption price per share | |||
($96,845,147 ÷ 5,814,552 shares of beneficial interest issued and outstanding) | $ | 16.66 | |
See Notes to Financial Statements.
Jennison Value Fund | 15 |
Statement of Operations
Six Months Ended February 29, 2008 (Unaudited)
Net Investment Income | ||||
Income | ||||
Unaffiliated dividends (net of foreign withholding taxes of $97,603) | $ | 9,748,142 | ||
Affiliated income from securities loaned, net | 566,671 | |||
Unaffiliated interest income | 476,022 | |||
Affiliated dividend income | 375,609 | |||
Total income | 11,166,444 | |||
Expenses | ||||
Management fee | 3,349,394 | |||
Distribution fee—Class A | 1,207,365 | |||
Distribution fee—Class B | 501,429 | |||
Distribution fee—Class C | 306,084 | |||
Distribution fee—Class L | 12,046 | |||
Distribution fee—Class M | 62,821 | |||
Distribution fee—Class R | 6,361 | |||
Distribution fee—Class X | 16,934 | |||
Transfer agent’s fees and expenses (including affiliated expense of $507,000) (Note 3) | 925,000 | |||
Custodian’s fees and expenses | 81,000 | |||
Registration fees | 60,000 | |||
Reports to shareholders | 45,000 | |||
Trustees’ fees | 17,000 | |||
Legal fees and expenses | 16,000 | |||
Insurance | 15,000 | |||
Audit fee | 10,000 | |||
Interest expense | 9,569 | |||
Miscellaneous | 9,361 | |||
Total expenses | 6,650,364 | |||
Net investment income | 4,516,080 | |||
Realized And Unrealized Gain (Loss) On Investment And Foreign Currency Transactions | ||||
Net realized gain on: | ||||
Investment transactions | 63,592,019 | |||
Foreign currency transactions | 13,617 | |||
63,605,636 | ||||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments | (187,774,063 | ) | ||
Foreign currencies | (4,967 | ) | ||
(187,779,030 | ) | |||
Net loss on investment and foreign currency transactions | (124,173,394 | ) | ||
Net Decrease In Net Assets Resulting From Operations | $ | (119,657,314 | ) | |
See Notes to Financial Statements.
16 | Visit our website at www.jennisondryden.com |
Statement of Changes in Net Assets
(Unaudited)
Six Months Ended February 29, 2008 | Ten Months Ended August 31, 2007 | Year Ended October 31, 2006 | ||||||||||
Increase (Decrease) In Net Assets | ||||||||||||
Operations | ||||||||||||
Net investment income | $ | 4,516,080 | $ | 8,928,425 | $ | 10,437,490 | ||||||
Net realized gain on investments and foreign currency transactions | 63,605,636 | 172,850,967 | 118,734,873 | |||||||||
Net change in unrealized appreciation (depreciation) on investments and foreign currencies | (187,779,030 | ) | (72,511,058 | ) | 61,050,342 | |||||||
Net increase (decrease) in net assets resulting from operations | (119,657,314 | ) | 109,268,334 | 190,222,705 | ||||||||
Dividends and distributions (Note 1) |
| |||||||||||
Dividends from net investment income: | ||||||||||||
Class A | (9,073,325 | ) | (8,164,199 | ) | (5,369,140 | ) | ||||||
Class B | (292,113 | ) | (147,136 | ) | — | |||||||
Class C | (178,854 | ) | (45,182 | ) | — | |||||||
Class L | (36,658 | ) | — | — | ||||||||
Class M | (35,867 | ) | — | — | ||||||||
Class R | (18,636 | ) | (393 | ) | (12 | ) | ||||||
Class X | (9,700 | ) | — | — | ||||||||
Class Z | (1,205,555 | ) | (1,038,985 | ) | (420,806 | ) | ||||||
(10,850,708 | ) | (9,395,895 | ) | (5,789,958 | ) | |||||||
Distributions from net realized gains: |
| |||||||||||
Class A | (145,035,070 | ) | (95,071,115 | ) | (35,966,579 | ) | ||||||
Class B | (15,566,446 | ) | (10,773,756 | ) | (5,595,023 | ) | ||||||
Class C | (9,531,318 | ) | (3,308,355 | ) | (971,592 | ) | ||||||
Class L | (732,602 | ) | — | — | ||||||||
Class M | (1,911,149 | ) | — | — | ||||||||
Class R | (372,374 | ) | (7,650 | ) | (128 | ) | ||||||
Class X | (516,833 | ) | — | — | ||||||||
Class Z | (15,416,633 | ) | (9,486,716 | ) | (2,054,591 | ) | ||||||
(189,082,425 | ) | (118,647,592 | ) | (44,587,913 | ) | |||||||
See Notes to Financial Statements.
Jennison Value Fund | 17 |
Statement of Changes in Net Assets
(Unaudited) continued
Six Months Ended February 29, 2008 | Ten Months Ended August 31, 2007 | Year Ended October 31, 2006 | ||||||||||
Fund share transactions (Net of share conversions) (Note 6) | ||||||||||||
Net proceeds from shares sold | $ | 72,032,096 | $ | 129,130,638 | $ | 213,569,167 | ||||||
Net asset value of shares issued in connection with merger (Note 7) | — | 127,217,340 | — | |||||||||
Net asset value of shares issued in reinvestment of dividends and distributions | 188,800,001 | 120,759,467 | 47,372,650 | |||||||||
Cost of shares reacquired | (155,881,547 | ) | (217,035,433 | ) | (177,217,214 | ) | ||||||
Net increase in net assets from Fund share transactions | 104,950,550 | 160,072,012 | 83,724,603 | |||||||||
Total increase (decrease) | (214,639,897 | ) | 141,296,859 | 223,569,437 | ||||||||
Net Assets | ||||||||||||
Beginning of period | 1,317,955,414 | 1,176,658,555 | 953,089,118 | |||||||||
End of period(a) | $ | 1,103,315,517 | $ | 1,317,955,414 | $ | 1,176,658,555 | ||||||
(a) Includes undistributed net investment income of: | $ | 1,397,254 | $ | 7,731,882 | $ | 8,195,035 | ||||||
See Notes to Financial Statements.
18 | Visit our website at www.jennisondryden.com |
Notes to Financial Statements
(Unaudited)
JennisonDryden Portfolios, Inc. (the “Portfolios”) is registered under the Investment Company Act of 1940 as a diversified, open-end, management investment company consisting of two portfolios: Jennison Value Fund (the “Fund”) and Dryden US Equity Active Extension Fund. The financial statements of the other portfolio is not represented herein. The investment objective of the Fund is capital appreciation. It seeks to achieve this objective by investing primarily in common stocks and convertible securities that provide investment income returns above those of the Standard & Poor’s 500 Composite Stock Price Index or the NYSE Composite Index.
The Fund’s fiscal year has changed from an annual reporting period that ends October 31 to one that ends August 31. This change should have no impact on the way the Fund is managed. Shareholders will receive future annual and semi-annual reports on the new fiscal year-end schedule.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the Fund in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange 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 asked 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 official closing price provided by Nasdaq. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadvisor; to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. 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 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 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 Fund’s normal pricing time, are valued at fair value in accordance with the Board of Trustees’ approved fair valuation procedures. When determining the fair
Jennison Value Fund | 19 |
Notes to Financial Statements
(Unaudited) continued
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 February 29, 2008, there was one security whose value was impacted by events occurring after the close of the security’s foreign market.
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 debt 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 debt securities which mature in more than 60 days are valued at current market quotations.
Foreign Currency Translation: The books and records of the Fund are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:
(i) market value of investment securities, other assets and liabilities-at the current rates of exchange;
(ii) purchases and sales of investment securities, income and expenses-at the rates of exchange prevailing on the respective dates of such transactions.
The Fund 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 year. Similarly, the Fund does not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of portfolio securities sold during the fiscal year. Accordingly, realized foreign currency gains or losses are
20 | Visit our website at www.jennisondryden.com |
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 and settlement dates on security transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies.
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.
Restricted Securities: The Fund may hold up to 15% of its net assets in illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities held by the Fund at the end of the fiscal period may include registration rights under which the Fund may demand registration by the issuers, of which the Fund may bear the cost of such registration. Restricted securities are valued pursuant to the valuation procedures noted above.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an 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.
Taxes: For federal income tax purposes, it is the Fund’s policy to continue to meet the requirements under 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.
Jennison Value Fund | 21 |
Notes to Financial Statements
(Unaudited) continued
Dividends and Distributions: The Fund 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 and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date.
Securities Lending: The Fund may lend its portfolio securities to broker-dealers. The loans are secured by collateral at least equal, at all times, to the market value of the securities loaned.
Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities using the collateral in the open market. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any cash received as collateral. The Fund also continues to receive interest and dividends or amounts equivalent thereto, on the securities loaned and recognizes any unrealized gain or loss in the market price of the securities loaned that may occur during the term of the loan.
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 Portfolios have a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisors’ performance of such services. PI has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The subadvisory agreement provides that Jennison furnishes investment advisory services in connection with the management of the Fund. In connection therewith, Jennison assumes the day-to-day management responsibilities of the Fund and is obligated to keep certain books and records of the Fund. PI pays for the services of Jennison, the cost of compensation of officers and employees of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
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The management fee paid to PI is computed daily and payable monthly at an annual rate of .60 of 1% of the Fund’s average daily net assets up to $500 million, .50 of 1% of the next $500 million, .475 of 1% of the next $500 million and .45 of 1% of the average daily net assets in excess of $1.5 billion. The effective management fee rate was .53 of 1% of the Fund’s average daily net assets for the six months ended February 29, 2008.
The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class L, Class M, Class R, Class X and Class Z shares. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B, Class C, Class L, Class M, Class R and Class X shares, pursuant to plans of distribution (the “Class A, B, C, L, M, R and X Plans”), regardless of expenses actually incurred. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund. Pursuant to the Class A, B, C, L, M, R and X Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30 of 1%, 1%, 1%, .50 of 1%, 1%, .75 of 1% and 1% of the average daily net assets of the Class A, B, C, L, M, R and X shares, respectively. For the six months ended February 29, 2008, PIMS contractually agreed to limit such fees to .25 of 1% of the average daily net assets of the Class A shares through February 28, 2008 and .50% of 1% of the average daily net assets of the Class R shares.
PIMS has advised the Fund that it has received approximately $162,400 in front-end sales charges resulting from sales of Class A shares, during the six months ended February 29, 2008. From these fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Fund that for the six months ended February 29, 2008, it received approximately $100, $55,500, $9,000, $12,900 and $2,000 in contingent deferred sales charges imposed upon certain redemptions by Class A, Class B, Class C, Class M and Class X shareholders, respectively.
PI, PIMS and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
The Portfolios, 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 26, 2007, the Funds renewed the SCA with the two banks. The Funds pay a commitment fee of .06 of 1%
Jennison Value Fund | 23 |
Notes to Financial Statements
(Unaudited) continued
of the unused portion of the SCA. The expiration date of SCA is October 24, 2008. For the period October 27, 2006 through October 26, 2007, the Funds paid a commitment fee of .07 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 Fund utilized the line of credit during the six months ended February 29, 2008. The average daily balance for the 6 days the Fund had an outstanding balance was approximately $1,009,500 at a weighted average interest rate of approximately 5.41%. At February 29, 2008, the Fund did not have an outstanding loan amount.
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 fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.
The Fund 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 PI. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. For the six months ended February 29, 2008, the Fund incurred approximately $185,200 in total networking fees, of which approximately $83,900 was paid to First Clearing. These amounts are included in transfer agent’s fees and expenses in the Statement of Operations.
Prudential Investment Management, Inc. (“PIM”), an indirect, wholly-owned subsidiary of Prudential, is the Fund’s security lending agent. For the six months ended February 29, 2008, PIM has been compensated approximately $242,900 for these services.
The Fund invests in the Taxable Money Market Series (the “Series”), a portfolio of Dryden Core Investment Fund, pursuant to an exemptive order received from the Securities and Exchange Commission. The Series is a money market mutual fund registered under the Investment Company Act of 1940, as amended, and managed by PI.
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Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments, for the six months ended February 29, 2008 were $283,927,153 and $394,031,532, respectively.
Note 5. Tax Information
The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of February 29, 2008 were as follows:
Tax Basis | Appreciation | Depreciation | Net Unrealized | |||
$1,321,097,152 | $160,876,777 | $(158,013,128) | $2,863,649 |
The difference between book basis and tax basis is primarily attributable to the difference in the treatment of losses on wash sales and other book to tax differences.
Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years and has concluded that as of February 29, 2008, no provision for income tax would be required in the Funds’ financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Fund offers Class A, Class B, Class C, Class L, Class M, Class R, 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 or Class 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 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 C shares are sold with a contingent deferred sales charge of 1% during the first 12 months. Class M and Class 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 B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class M shares automatically convert to Class A shares approximately eight years after purchase. Class X shares automatically convert to Class A shares on a quarterly basis approximately ten years (eight years in the case of
Jennison Value Fund | 25 |
Notes to Financial Statements
(Unaudited) continued
shares purchased prior to August 19, 1998) after purchase. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class L shares are closed to most new purchases (with the exception of reinvested dividends). Class L and Class M shares are only exchangeable with Class L and Class M shares, respectively, offered by certain other Strategic Partners Funds. Class X shares are closed to new purchases. Class R and Class Z shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.
The Fund has authorized an unlimited number of shares of beneficial interest at $.01 par value divided into eight classes, designated Class A, Class B, Class C, Class L, Class M, Class R, Class X and Class Z.
Transactions in shares of beneficial interest were as follows:
Class A | Shares | Amount | |||||
Six months ended February 29, 2008: | |||||||
Shares sold | 1,869,407 | $ | 36,234,382 | ||||
Shares issued in reinvestment of dividends and distributions | 7,997,024 | 145,465,344 | |||||
Shares reacquired | (5,517,299 | ) | (105,386,243 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 4,349,132 | 76,313,483 | |||||
Shares issued upon conversion from Class B and Class M | 626,900 | 12,215,533 | |||||
Net increase (decrease) in shares outstanding | 4,976,032 | $ | 88,529,016 | ||||
Ten-month period ended August 31, 2007: | |||||||
Shares sold | 3,332,640 | $ | 72,760,145 | ||||
Shares issued in connection with the merger | 2,232,067 | 46,198,226 | |||||
Shares issued in reinvestment of dividends and distributions | 4,759,755 | 97,051,409 | |||||
Shares reacquired | (7,031,586 | ) | (154,093,876 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 3,292,876 | 61,915,904 | |||||
Shares issued upon conversion from Class B, Class M and Class X | 935,606 | 20,149,514 | |||||
Net increase (decrease) in shares outstanding | 4,228,482 | $ | 82,065,418 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 6,622,418 | $ | 139,018,128 | ||||
Shares issued in reinvestment of dividends and distributions | 1,959,077 | 38,613,402 | |||||
Shares reacquired | (6,950,376 | ) | (145,837,152 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 1,631,119 | 31,794,378 | |||||
Shares issued upon conversion from Class B | 1,414,535 | 29,084,598 | |||||
Net increase (decrease) in shares outstanding | 3,045,654 | $ | 60,878,976 | ||||
26 | Visit our website at www.jennisondryden.com |
Class B | Shares | Amount | |||||
Six months ended February 29, 2008: | |||||||
Shares sold | 138,651 | $ | 2,694,564 | ||||
Shares issued in reinvestment of dividends and distributions | 851,426 | 15,317,190 | |||||
Shares reacquired | (610,336 | ) | (11,508,478 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 379,741 | 6,503,276 | |||||
Shares reacquired upon conversion into Class A | (502,307 | ) | (9,692,017 | ) | |||
Net increase (decrease) in shares outstanding | (122,566 | ) | $ | (3,188,741 | ) | ||
Ten-month period ended August 31, 2007: | |||||||
Shares sold | 414,740 | $ | 8,955,241 | ||||
Shares issued in connection with the merger | 1,047,992 | 21,471,958 | |||||
Shares issued in reinvestment of dividends and distributions | 519,027 | 10,499,923 | |||||
Shares reacquired | (682,047 | ) | (14,796,064 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 1,299,712 | 26,131,058 | |||||
Shares reacquired upon conversion into Class A | (860,546 | ) | (18,277,134 | ) | |||
Net increase (decrease) in shares outstanding | 439,166 | $ | 7,853,924 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 597,144 | $ | 12,499,038 | ||||
Shares issued in reinvestment of dividends and distributions | 274,279 | 5,367,640 | |||||
Shares reacquired | (776,972 | ) | (16,100,691 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 94,451 | 1,765,987 | |||||
Shares reacquired upon conversion into Class A | (1,427,998 | ) | (29,084,598 | ) | |||
Net increase (decrease) in shares outstanding | (1,333,547 | ) | $ | (27,318,611 | ) | ||
Class C | |||||||
Six months ended February 29, 2008: | |||||||
Shares sold | 290,018 | $ | 5,792,847 | ||||
Shares issued in reinvestment of dividends and distributions | 470,674 | 8,472,370 | |||||
Shares reacquired | (623,712 | ) | (11,689,452 | ) | |||
Net increase (decrease) in shares outstanding | 136,980 | $ | 2,575,765 | ||||
Ten-month period ended August 31, 2007: | |||||||
Shares sold | 408,595 | $ | 8,780,853 | ||||
Shares issued in connection with the merger | 1,514,551 | 31,036,065 | |||||
Shares issued in reinvestment of dividends and distributions | 146,223 | 2,958,100 | |||||
Shares reacquired | (512,780 | ) | (11,178,671 | ) | |||
Net increase (decrease) in shares outstanding | 1,556,589 | $ | 31,596,347 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 640,946 | $ | 13,451,472 | ||||
Shares issued in reinvestment of dividends and distributions | 47,187 | 923,919 | |||||
Shares reacquired | (289,618 | ) | (6,006,912 | ) | |||
Net increase (decrease) in shares outstanding | 398,515 | $ | 8,368,479 | ||||
Jennison Value Fund | 27 |
Notes to Financial Statements
(Unaudited) continued
Class L | Shares | Amount | |||||
Six months ended February 29, 2008: | |||||||
Shares sold | 1,626 | $ | 30,138 | ||||
Shares issued in reinvestment of dividends and distributions | 41,847 | 759,124 | |||||
Shares reacquired | (55,231 | ) | (1,037,668 | ) | |||
Net increase (decrease) in shares outstanding | (11,758 | ) | $ | (248,406 | ) | ||
March 16, 2007* through August 31, 2007: | |||||||
Shares sold | 4,049 | $ | 86,210 | ||||
Shares issued in connection with the merger | 284,025 | 5,865,932 | |||||
Shares reacquired | (44,334 | ) | (993,357 | ) | |||
Net increase (decrease) in shares outstanding | 243,740 | $ | 4,958,785 | ||||
Class M | |||||||
Six months ended February 29, 2008: | |||||||
Shares sold | 17,181 | $ | 339,626 | ||||
Shares issued in reinvestment of dividends and distributions | 100,755 | 1,813,578 | |||||
Shares reacquired | (155,247 | ) | (2,997,988 | ) | |||
Net increase (decrease) in shares outstanding before conversion | (37,311 | ) | (844,784 | ) | |||
Shares reacquired upon conversion into Class A | (132,319 | ) | (2,523,516 | ) | |||
Net increase (decrease) in shares outstanding | (169,630 | ) | $ | (3,368,300 | ) | ||
March 16, 2007* through August 31, 2007: | |||||||
Shares sold | 32,745 | $ | 709,825 | ||||
Shares issued in connection with the merger | 911,413 | 18,673,645 | |||||
Shares reacquired | (152,598 | ) | (3,395,448 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 791,560 | 15,988,022 | |||||
Shares reacquired upon conversion into Class A | (82,905 | ) | (1,839,714 | ) | |||
Net increase (decrease) in shares outstanding | 708,655 | $ | 14,148,308 | ||||
Class R | |||||||
Six months ended February 29, 2008: | |||||||
Shares sold | 121,527 | $ | 2,310,622 | ||||
Shares issued in reinvestment of dividends and distributions | 21,518 | 390,552 | |||||
Shares reacquired | (21,947 | ) | (407,751 | ) | |||
Net increase (decrease) in shares outstanding | 121,098 | $ | 2,293,423 | ||||
Ten-month period ended August 31, 2007: | |||||||
Shares sold | 90,036 | $ | 1,970,956 | ||||
Shares issued in reinvestment of dividends and distributions | 379 | 7,717 | |||||
Shares reacquired | (7,827 | ) | (172,132 | ) | |||
Net increase (decrease) in shares outstanding | 82,588 | $ | 1,806,541 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 2,949 | $ | 63,162 | ||||
Shares issued in reinvestment of dividends and distributions | — | ** | 3 | ||||
Shares reacquired | (242 | ) | (4,980 | ) | |||
Net increase (decrease) in shares outstanding | 2,707 | $ | 58,185 | ||||
28 | Visit our website at www.jennisondryden.com |
Class X | Shares | Amount | |||||
Six months ended February 29, 2008: | |||||||
Shares sold | 1,954 | $ | 33,685 | ||||
Shares issued in reinvestment of dividends and distributions | 28,949 | 520,780 | |||||
Shares reacquired | (38,386 | ) | (726,340 | ) | |||
Net increase (decrease) in shares outstanding before conversion | (7,483 | ) | (171,875 | ) | |||
Shares reacquired upon conversion into Class A | — | — | |||||
Net increase (decrease) in shares outstanding | (7,483 | ) | $ | (171,875 | ) | ||
March 16, 2007* through August 31, 2007: | |||||||
Shares sold | 13,800 | $ | 301,628 | ||||
Shares issued in connection with the merger | 193,839 | 3,971,514 | |||||
Shares reacquired | (31,949 | ) | (699,454 | ) | |||
Net increase (decrease) in shares outstanding before conversion | 175,690 | 3,573,688 | |||||
Shares reacquired upon conversion into Class A | (1,446 | ) | (32,666 | ) | |||
Net increase (decrease) in shares outstanding | 174,244 | $ | 3,541,022 | ||||
Class Z | |||||||
Six months ended February 29, 2008: | |||||||
Shares sold | 1,291,145 | $ | 24,596,232 | ||||
Shares issued in reinvestment of dividends and distributions | 881,507 | 16,061,063 | |||||
Shares reacquired | (1,147,802 | ) | (22,127,627 | ) | |||
Net increase (decrease) in shares outstanding | 1,024,850 | $ | 18,529,668 | ||||
Ten-month period ended August 31, 2007: | |||||||
Shares sold | 1,634,144 | $ | 35,565,780 | ||||
Shares issued in reinvestment of dividends and distributions | 501,829 | 10,242,318 | |||||
Shares reacquired | (1,436,065 | ) | (31,706,431 | ) | |||
Net increase (decrease) in shares outstanding | 699,908 | $ | 14,101,667 | ||||
Year ended October 31, 2006: | |||||||
Shares sold | 2,294,435 | $ | 48,537,367 | ||||
Shares issued in reinvestment of dividends and distributions | 125,136 | 2,467,686 | |||||
Shares reacquired | (440,315 | ) | (9,267,479 | ) | |||
Net increase (decrease) in shares outstanding | 1,979,256 | $ | 41,737,574 | ||||
* | Inception date. |
** | Less than .5 share. |
Note 7. Reorganization
On March 16, 2007, the Fund acquired all of the net assets of Strategic Partners Core Value Fund and Strategic Partners Large Capitalization Value Fund (the merged funds) pursuant to a plan of reorganization approved by the Strategic Partners Core Value Fund and Strategic Partners Large Capitalization Value Fund shareholders on December 14, 2006. The acquisition was accomplished by a tax-free issue of Class A,
Jennison Value Fund | 29 |
Notes to Financial Statements
(Unaudited) continued
Class B, Class C, Class L, Class M and Class X shares for the corresponding classes of shares of Strategic Partners Core Value Fund and Strategic Partners Large Capitalization Value Fund. The following table shows the number of shares of the merged funds and how many shares they became in the Jennison Value Fund and the total value.
Strategic Partners Core Value Fund | Jennison Value Fund | ||||||||
Class | Shares | Class | Shares | Value | |||||
A | 465,322 | A | 289,328 | $ | 5,988,365 | ||||
B | 106,392 | B | 66,858 | 1,369,838 | |||||
C | 683,831 | C | 429,581 | 8,802,951 | |||||
L | 456,096 | L | 284,025 | 5,865,932 | |||||
M | 1,454,212 | M | 911,413 | 18,673,645 | |||||
X | 308,721 | X | 193,839 | 3,971,514 | |||||
Strategic Partners Large Capitalization | Jennison Value Fund | ||||||||
Class | Shares | Class | Shares | Value | |||||
A | 3,013,804 | A | 1,942,739 | $ | 40,209,861 | ||||
B | 1,543,177 | B | 981,134 | 20,102,120 | |||||
C | 1,706,263 | C | 1,084,970 | 22,233,114 |
The aggregate net assets and net unrealized appreciation/(depreciation) of the merged funds immediately before the acquisition were:
Total Net Assets | Net Unrealized Appreciation | |||||
Strategic Partners Core Value Fund | $ | 44,672,245 | $ | 10,466,895 | ||
Strategic Partners Large Capitalization Value Fund | 82,545,095 | 14,505,336 |
The aggregate net assets of Jennison Value Fund immediately before the acquisition were $1,197,808,121.
Note 8. New Accounting Pronouncements
On September 20, 2006, the Financial Accounting Standards Board (“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
30 | Visit our website at www.jennisondryden.com |
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.
Jennison Value Fund | 31 |
Financial Highlights
(Unaudited)
Class A | ||||||||
Six Months Ended February 29, 2008(a) | Ten-Month Period Ended August 31, 2007(a)(c) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning Of Period | $ | 21.81 | $ | 22.49 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | .08 | .16 | ||||||
Net realized and unrealized gain (loss) on | (1.87 | ) | 1.61 | |||||
Total from investment operations | (1.79 | ) | 1.77 | |||||
Less Dividends and Distributions: | ||||||||
Dividends from net investment income | (.20 | ) | (.19 | ) | ||||
Distributions from net realized gains | (3.20 | ) | (2.26 | ) | ||||
Total dividends and distributions | (3.40 | ) | (2.45 | ) | ||||
Net asset value, end of period | $ | 16.62 | $ | 21.81 | ||||
Total Return(b): | (9.57 | )% | 8.66 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000) | $ | 852,488 | $ | 1,010,160 | ||||
Average net assets (000) | $ | 971,199 | $ | 1,028,798 | ||||
Ratios to average net assets(g): | ||||||||
Expenses, including distribution and service (12b-1) fees(d) | .97 | %(e) | .95 | %(e) | ||||
Expenses, excluding distribution and service (12b-1) fees | .72 | %(e) | .70 | %(e) | ||||
Net investment income | .81 | %(e) | .90 | %(e) | ||||
Portfolio turnover rate | 23 | %(f) | 55 | %(f) |
(a) | Calculated based upon average shares outstanding during the period. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principals. Total returns for periods less than a full year are not annualized. |
(c) | For the ten-month period ended August 31, 2007. The Fund changed its fiscal year end from October 31 to August 31, effective August 31, 2007. |
(d) | The distributor of the Fund 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. |
(e) | Annualized. |
(f) | Not annualized. |
(g) | Does not include expenses of the underlying portfolios in which the Fund invests. |
See Notes to Financial Statements.
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Class A | ||||||||||||||
Year Ended October 31, | ||||||||||||||
2006(a) | 2005(a) | 2004(a) | 2003(a) | |||||||||||
$ | 19.77 | $ | 16.71 | $ | 14.50 | $ | 12.17 | |||||||
.22 | .14 | .11 | .11 | |||||||||||
| 3.56 |
| 3.07 | 2.22 | 2.31 | |||||||||
3.78 | 3.21 | 2.33 | 2.42 | |||||||||||
(.14 | ) | (.15 | ) | (.12 | ) | (.09 | ) | |||||||
(.92 | ) | — | — | — | ||||||||||
(1.06 | ) | (.15 | ) | (.12 | ) | (.09 | ) | |||||||
$ | 22.49 | $ | 19.77 | $ | 16.71 | $ | 14.50 | |||||||
19.85 | % | 19.31 | % | 16.21 | % | 19.97 | % | |||||||
$ | 946,315 | $ | 771,540 | $ | 610,345 | $ | 559,230 | |||||||
$ | 872,078 | $ | 699,013 | $ | 598,375 | $ | 529,960 | |||||||
| .98 | % | 1.04 | % | 1.07 | % | 1.12 | % | ||||||
| .73 | % | .79 | % | .82 | % | .87 | % | ||||||
1.05 | % | .77 | % | .68 | % | .88 | % | |||||||
49 | % | 56 | % | 56 | % | 97 | % |
See Notes to Financial Statements.
Jennison Value Fund | 33 |
Financial Highlights
(Unaudited) continued
Class B | ||||||||
Six Months Ended February 29, 2008(a) | Ten-Month Period Ended August 31, 2007(a)(b) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning Of Period | $ | 21.52 | $ | 22.18 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | .01 | .03 | ||||||
Net realized and unrealized gain (loss) on | (1.85 | ) | 1.60 | |||||
Total from investment operations | (1.84 | ) | 1.63 | |||||
Less Dividends and Distributions: | ||||||||
Dividends from net investment income | (.06 | ) | (.03 | ) | ||||
Distributions from net realized gains | (3.20 | ) | (2.26 | ) | ||||
Total dividends and distributions | (3.26 | ) | (2.29 | ) | ||||
Net asset value, end of period | $ | 16.42 | $ | 21.52 | ||||
Total Return(c): | (9.94 | )% | 8.02 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000) | $ | 83,505 | $ | 112,108 | ||||
Average net assets (000) | $ | 100,837 | $ | 112,785 | ||||
Ratios to average net assets(e): | ||||||||
Expenses, including distribution and service (12b-1) fees | 1.72 | %(d) | 1.70 | %(d) | ||||
Expenses, excluding distribution and service (12b-1) fees | .72 | %(d) | .70 | %(d) | ||||
Net investment income (loss) | .06 | %(d) | .15 | %(d) |
(a) | Calculated based upon average shares outstanding during the period. |
(b) | For the ten-month period ended August 31, 2007. The Fund changed its fiscal year end from October 31 to August 31, effective August 31, 2007. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principals. Total returns for periods less than a full year are not annualized. |
(d) | Annualized. |
(e) | Does not include expenses of the underlying portfolios in which the Fund invests. |
See Notes to Financial Statements.
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Class B | ||||||||||||||
Year Ended October 31, | ||||||||||||||
2006(a) | 2005(a) | 2004(a) | 2003(a) | |||||||||||
$ | 19.52 | $ | 16.49 | $ | 14.31 | $ | 12.02 | |||||||
.07 | .02 | (.01 | ) | .02 | ||||||||||
| 3.51 | | 3.02 | 2.20 | 2.27 | |||||||||
3.58 | 3.04 | 2.19 | 2.29 | |||||||||||
— | (.01 | ) | (0.01 | ) | — | |||||||||
(.92 | ) | — | — | — | ||||||||||
(.92 | ) | (.01 | ) | (0.01 | ) | — | ||||||||
$ | 22.18 | $ | 19.52 | $ | 16.49 | $ | 14.31 | |||||||
18.96 | % | 18.44 | % | 15.34 | % | 19.05 | % | |||||||
$ | 105,824 | $ | 119,151 | $ | 193,230 | $ | 215,039 | |||||||
$ | 112,070 | $ | 161,840 | $ | 212,833 | $ | 221,850 | |||||||
| 1.73 | % | 1.79 | % | 1.82 | % | 1.87 | % | ||||||
| .73 | % | .79 | % | .82 | % | .87 | % | ||||||
.32 | % | .04 | % | (.06 | )% | .13 | % |
See Notes to Financial Statements.
Jennison Value Fund | 35 |
Financial Highlights
(Unaudited) continued
Class C | ||||||||
Six Months Ended February 29, 2008(a) | Ten-Month Period Ended August 31, 2007(a)(b) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning Of Period | $ | 21.52 | $ | 22.19 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income (loss) | .01 | .02 | ||||||
Net realized and unrealized gain (loss) on | (1.85 | ) | 1.60 | |||||
Total from investment operations | (1.84 | ) | 1.62 | |||||
Less Dividends and Distributions: | ||||||||
Dividends from net investment income | (.06 | ) | (.03 | ) | ||||
Distributions from net realized gains | (3.20 | ) | (2.26 | ) | ||||
Total dividends and distributions | (3.26 | ) | (2.29 | ) | ||||
Net asset value, end of period | $ | 16.42 | $ | 21.52 | ||||
Total Return(c): | (9.89 | )% | 7.98 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000) | $ | 51,620 | $ | 64,731 | ||||
Average net assets (000) | $ | 61,553 | $ | 52,776 | ||||
Ratios to average net assets(e): | ||||||||
Expenses, including distribution and service (12b-1) fees | 1.72 | %(d) | 1.70 | %(d) | ||||
Expenses, excluding distribution and service (12b-1) fees | .72 | %(d) | .70 | %(d) | ||||
Net investment income (loss) | .06 | %(d) | .11 | %(d) |
(a) | Calculated based upon average shares outstanding during the period. |
(b) | For the ten-month period ended August 31, 2007. The Fund changed its fiscal year end from October 31 to August 31, effective August 31, 2007. |
(c) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principals. Total returns for periods less than a full year are not annualized. |
(d) | Annualized. |
(e) | Does not include expenses of the underlying portfolios in which the Fund invests. |
See Notes to Financial Statements.
36 | Visit our website at www.jennisondryden.com |
Class C | ||||||||||||||
Year Ended October 31, | ||||||||||||||
2006(a) | 2005(a) | 2004(a) | 2003(a) | |||||||||||
$ | 19.52 | $ | 16.49 | $ | 14.31 | $ | 12.02 | |||||||
.06 | .01 | (.01 | ) | .02 | ||||||||||
| 3.53 | | 3.03 | 2.20 | 2.27 | |||||||||
3.59 | 3.04 | 2.19 | 2.29 | |||||||||||
— | (.01 | ) | (.01 | ) | — | |||||||||
(.92 | ) | — | — | — | ||||||||||
(.92 | ) | (.01 | ) | (.01 | ) | — | ||||||||
$ | 22.19 | $ | 19.52 | $ | 16.49 | $ | 14.31 | |||||||
18.95 | % | 18.44 | % | 15.34 | % | 19.05 | % | |||||||
$ | 32,189 | $ | 20,540 | $ | 20,006 | $ | 21,268 | |||||||
$ | 24,812 | $ | 20,814 | $ | 21,130 | $ | 22,008 | |||||||
| 1.73 | % | 1.79 | % | 1.82 | % | 1.87 | % | ||||||
| .73 | % | .79 | % | .82 | % | .87 | % | ||||||
.29 | % | .05 | % | (.07 | )% | .13 | % |
See Notes to Financial Statements.
Jennison Value Fund | 37 |
Financial Highlights
(Unaudited) continued
Class L | ||||||||
Six Months Ended February 29, 2008(b) | March 16, 2007(a) Through August 31, 2007(b)(c) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning Of Period | $ | 21.74 | $ | 20.65 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | .06 | .05 | ||||||
Net realized and unrealized gain (loss) on | (1.87 | ) | 1.04 | |||||
Total from investment operations | (1.81 | ) | 1.09 | |||||
Less Dividends and Distributions: | ||||||||
Dividends from net investment income | (.16 | ) | — | |||||
Distributions from net realized gains | (3.20 | ) | — | |||||
Total dividends and distributions | (3.36 | ) | — | |||||
Net asset value, end of period | $ | 16.57 | $ | 21.74 | ||||
Total Return(d): | (9.68 | )% | 5.28 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000) | $ | 3,844 | $ | 5,299 | ||||
Average net assets (000) | $ | 4,845 | $ | 3,274 | ||||
Ratios to average net assets(f): | ||||||||
Expenses, including distribution and service (12b-1) fees | 1.22 | %(e) | 1.20 | %(e) | ||||
Expenses, excluding distribution and service (12b-1) fees | .72 | %(e) | .70 | %(e) | ||||
Net investment income | .56 | %(e) | .51 | %(e) |
(a) | Inception date of Class L shares. |
(b) | Calculated based upon average shares outstanding during the period. |
(c) | For the period ended August 31, 2007. The Fund changed its fiscal year end from October 31 to August 31, effective August 31, 2007. |
(d) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principals. Total returns for periods less than a full year are not annualized. |
(e) | Annualized. |
(f) | Does not include expenses of the underlying portfolios in which the Fund invests. |
See Notes to Financial Statements.
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Class M | ||||||||
Six Months Ended February 29, 2008(b) | March 16, 2007(a) Through August 31, 2007(b)(c) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning Of Period | $ | 21.53 | $ | 20.49 | ||||
Income (loss) from investment operations | ||||||||
Net investment income | .01 | — | (e) | |||||
Net realized and unrealized gain (loss) on | (1.86 | ) | 1.04 | |||||
Total from investment operations | (1.85 | ) | 1.04 | |||||
Less Dividends and Distributions: | ||||||||
Dividends from net investment income | (.06 | ) | — | |||||
Distributions from net realized gains | (3.20 | ) | — | |||||
Total dividends and distributions | (3.26 | ) | — | |||||
Net asset value, end of period | $ | 16.42 | $ | 21.53 | ||||
Total Return(d): | (9.89 | )% | 5.08 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000) | $ | 8,853 | $ | 15,256 | ||||
Average net assets (000) | $ | 12,633 | $ | 9,920 | ||||
Ratios to average net assets(g): | ||||||||
Expenses, including distribution and service (12b-1) fees | 1.72 | %(f) | 1.70 | %(f) | ||||
Expenses, excluding distribution and service (12b-1) fees | .72 | %(f) | .70 | %(f) | ||||
Net investment income | .06 | %(f) | .01 | %(f) |
(a) | Inception date of Class M shares. |
(b) | Calculated based upon average shares outstanding during the period. |
(c) | For the period ended August 31, 2007. The Fund changed its fiscal year end from October 31 to August 31, effective August 31, 2007. |
(d) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principals. Total returns for periods less than a full year are not annualized. |
(e) | Less than $.005 per share. |
(f) | Annualized. |
(g) | Does not include expenses of the underlying portfolios in which the Fund invests. |
See Notes to Financial Statements.
Jennison Value Fund | 39 |
Financial Highlights
(Unaudited) continued
Class R | ||||
Six Months Ended February 29, 2008(b) | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 21.75 | ||
Income (loss) from investment operations: | ||||
Net investment income | .05 | |||
Net realized and unrealized gain (loss) on investment transactions | (1.86 | ) | ||
Total from investment operations | (1.81 | ) | ||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (.16 | ) | ||
Distributions from net realized gains | (3.20 | ) | ||
Total dividends and distributions | (3.36 | ) | ||
Net asset value, end of period | $ | 16.58 | ||
Total Return(d): | (9.63 | )% | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 3,424 | ||
Average net assets (000) | $ | 2,559 | ||
Ratios to average net assets(g): | ||||
Expenses, including distribution and service (12b-1) fees(e) | 1.22 | %(f) | ||
Expenses, excluding distribution and service (12b-1) fees | .72 | %(f) | ||
Net investment income | .56 | %(f) |
(a) | Inception date of Class R shares. |
(b) | Calculated based upon average shares outstanding during the period. |
(c) | For the ten-month period ended August 31, 2007. The Fund changed its fiscal year end from October 31 to August 31, effective August 31, 2007. |
(d) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principals. Total returns for periods less than a full year are not annualized. |
(e) | The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .50 of 1% of the average daily net assets of the Class R shares. |
(f) | Annualized. |
(g) | Does not include expenses of the underlying portfolios in which the Fund invests. |
See Notes to Financial Statements.
40 | Visit our website at www.jennisondryden.com |
Class R | ||||||||||
Ten-Month Period Ended August 31, 2007(b)(c) | Year Ended October 31, 2006(b) | June 3, 2005(a) Through October 31, 2005(b) | ||||||||
$ | 22.39 | $ | 19.74 | $ | 18.31 | |||||
.05 | .13 | .01 | ||||||||
1.69 | 3.53 | 1.42 | ||||||||
1.74 | 3.66 | 1.43 | ||||||||
(.12 | ) | (.09 | ) | — | ||||||
(2.26 | ) | (.92 | ) | — | ||||||
(2.38 | ) | (1.01 | ) | — | ||||||
$ | 21.75 | $ | 22.39 | $ | 19.74 | |||||
8.44 | % | 19.21 | % | 7.81 | % | |||||
$ | 1,858 | $ | 64 | $ | 3 | |||||
$ | 685 | $ | 21 | $ | 3 | |||||
1.20 | %(f) | 1.23 | % | 1.29 | %(f) | |||||
.70 | %(f) | .73 | % | .79 | %(f) | |||||
.62 | %(f) | .61 | % | .19 | %(f) |
See Notes to Financial Statements.
Jennison Value Fund | 41 |
Financial Highlights
(Unaudited) continued
Class X | ||||||||
Six Months Ended February 29, 2008(b) | March 16, 2007(a) Through August 31, 2007(b)(c) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning Of Period | $ | 21.52 | $ | 20.49 | ||||
Income (loss) from investment operations | ||||||||
Net investment income | .01 | — | (e) | |||||
Net realized and unrealized gain (loss) on | (1.86 | ) | 1.03 | |||||
Total from investment operations | (1.85 | ) | 1.03 | |||||
Less Dividends and Distributions: | ||||||||
Dividends from net investment income | (.06 | ) | — | |||||
Distributions from net realized gains | (3.20 | ) | — | |||||
Total dividends and distributions | (3.26 | ) | — | |||||
Net asset value, end of period | $ | 16.41 | $ | 21.52 | ||||
Total Return(d): | (9.94 | )% | 5.03 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000) | $ | 2,737 | $ | 3,749 | ||||
Average net assets (000) | $ | 3,405 | $ | 2,334 | ||||
Ratios to average net assets(g): | ||||||||
Expenses, including distribution and service (12b-1) fees | 1.72 | %(f) | 1.70 | %(f) | ||||
Expenses, excluding distribution and service (12b-1) fees | .72 | %(f) | .70 | %(f) | ||||
Net investment income | .06 | %(f) | .02 | %(f) |
(a) | Inception date of Class X shares. |
(b) | Calculated based upon average shares outstanding during the period. |
(c) | For the period ended August 31, 2007. The Fund changed its fiscal year end from October 31 to August 31, effective August 31, 2007. |
(d) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principals. Total returns for periods less than a full year are not annualized. |
(e) | Less than $.005 per share. |
(f) | Annualized. |
(g) | Does not include expenses of the underlying portfolios in which the Fund invests. |
See Notes to Financial Statements.
42 | Visit our website at www.jennisondryden.com |
This Page Intentionally Left Blank
Financial Highlights
(Unaudited) continued
Class Z | ||||||||
Six Months Ended February 29, 2008(a) | Ten-Month Period Ended August 31, 2007(a)(c) | |||||||
Per Share Operating Performance: | ||||||||
Net Asset Value, Beginning Of Period | $ | 21.88 | $ | 22.56 | ||||
Income (loss) from investment operations: | ||||||||
Net investment income | .10 | .23 | ||||||
Net realized and unrealized gain (loss) on investment transactions | (1.87 | ) | 1.60 | |||||
Total from investment operations | (1.77 | ) | 1.83 | |||||
Less Dividends and Distributions: | ||||||||
Dividends from net investment income | (.25 | ) | (.25 | ) | ||||
Distributions from net realized gains | (3.20 | ) | (2.26 | ) | ||||
Total dividends and distributions | (3.45 | ) | (2.51 | ) | ||||
Net asset value, end of period | $ | 16.66 | $ | 21.88 | ||||
Total Return(b): | (9.45 | )% | 8.91 | % | ||||
Ratios/Supplemental Data: | ||||||||
Net assets, end of period (000) | $ | 96,845 | $ | 104,793 | ||||
Average net assets (000) | $ | 103,094 | $ | 105,962 | ||||
Ratios to average net assets(e): | ||||||||
Expenses, including distribution and service (12b-1) fees | .72 | %(d) | .70 | %(d) | ||||
Expenses, excluding distribution and service (12b-1) fees | .72 | %(d) | .70 | %(d) | ||||
Net investment income | 1.06 | %(d) | 1.16 | %(d) |
(a) | Calculated based upon average shares outstanding during the period. |
(b) | Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principals. Total returns for periods less than a full year are not annualized. |
(c) | For the ten-month period ended August 31, 2007. The Fund changed its fiscal year end from October 31 to August 31, effective August 31, 2007. |
(d) | Annualized. |
(e) | Does not include expenses of the underlying portfolios in which the Fund invests. |
See Notes to Financial Statements.
44 | Visit our website at www.jennisondryden.com |
Class Z | ||||||||||||||
Year Ended October 31, | ||||||||||||||
2006(a) | 2005(a) | 2004(a) | 2003(a) | |||||||||||
$ | 19.83 | $ | 16.76 | $ | 14.54 | $ | 12.21 | |||||||
.27 | .19 | .15 | .15 | |||||||||||
| 3.57 | | 3.07 | 2.23 | 2.30 | |||||||||
3.84 | 3.26 | 2.38 | 2.45 | |||||||||||
(.19 | ) | (.19 | ) | (.16 | ) | (.12 | ) | |||||||
(.92 | ) | — | — | — | ||||||||||
(1.11 | ) | (.19 | ) | (.16 | ) | (.12 | ) | |||||||
$ | 22.56 | $ | 19.83 | $ | 16.76 | $ | 14.54 | |||||||
20.15 | % | 19.59 | % | 16.49 | % | 20.26 | % | |||||||
$ | 92,267 | $ | 41,856 | $ | 26,725 | $ | 32,340 | |||||||
$ | 65,638 | $ | 32,824 | $ | 25,857 | $ | 31,275 | |||||||
| .73 | % | .79 | % | .82 | % | .87 | % | ||||||
| .73 | % | .79 | % | .82 | % | .87 | % | ||||||
1.28 | % | 1.00 | % | .93 | % | 1.13 | % |
See Notes to Financial Statements.
Jennison Value Fund | 45 |
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 Trustees 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. |
TRUSTEES |
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 • Timothy J. Knierim, 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 • Peter Parrella, Assistant Treasurer |
MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
| ||||
INVESTMENT SUBADVISER | Jennison Associates LLC | 466 Lexington Avenue New York, NY 10017 | ||
| ||||
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 | PO Box 9658 Providence, RI 02940 | ||
| ||||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
| ||||
FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 |
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 TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Jennison Value Fund, Prudential Investments, Attn: Board of Trustees, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee 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 |
Jennison Value Fund | ||||||||||||||||||||
Share Class | A | B | C | L | M | R | X | Z | ||||||||||||
NASDAQ | PBEAX | PBQIX | PEICX | N/A | N/A | JDVRX | N/A | PEIZX | ||||||||||||
CUSIP | 476297106 | 476297205 | 476297304 | 476297601 | 476297700 | 476297502 | 476297809 | 476297403 | ||||||||||||
MF131E2 IFS-A146676 Ed. 04/2008
FEBRUARY 29, 2008 | SEMIANNUAL REPORT |
Dryden US Equity Active Extension Fund
FUND TYPE
Large-capitalization stock
OBJECTIVE
Long-term capital appreciation
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.
The accompanying financial statements as of February 29, 2008, were not audited and, accordingly, no auditor’s opinion is expressed on them.
JennisonDryden, Dryden, Prudential Financial and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.
April 15, 2008
Dear Shareholder:
On the following pages, you’ll find your Fund’s semiannual report, including a table showing fund performance since the Fund’s inception. 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 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.
Sincerely,
Judy A. Rice, President
Dryden US Equity Active Extension Fund
Dryden US Equity Active Extension Fund | 1 |
Your Fund’s Performance
Fund objective
The investment objective of the Dryden US Equity Active Extension Fund is capital appreciation. 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 shares have a maximum initial sales charge of 5.50%. Gross operating expenses: Class A, 1.79%; Class Z, 1.49%. Net operating expenses apply to: Class A, 1.74%; Class Z, 1.49%, after contractual reduction through 12/31/2008.
Cumulative Total Returns as of 2/29/08 | ||
Since Inception1 | ||
Class A | –9.50% | |
Class Z | –9.40 | |
Russell 1000 Index2 | –8.87 | |
Lipper Long/Short Equity Funds Avg.3 | –7.29 |
Average Annual Total Returns4 as of 3/31/08 | ||
Since Inception1 | ||
Class A | N/A | |
Class Z | N/A | |
Russell 1000 Index2 | N/A | |
Lipper Long/Short Equity Funds Avg.3 | N/A |
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 shares are subject to a maximum front-end sales charge of 5.50%. Under certain circumstances, Class A shares may be subject to a contingent deferred sales charge (CDSC) of 1%. 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 date: 12/27/07.
2 | Visit our website at www.jennisondryden.com |
2The Russell 1000 Index includes the 1,000 largest companies in the Russell 3000 Index. The Russell 1000 Index represents the universe of stocks from which most active money managers typically select. The Russell 1000 Index return reflects adjustments for income dividends and capital gains distributions reinvested as of the ex-dividend dates.
3Lipper Long/Short Equity Funds Average (Lipper Average) are Funds that employ portfolio strategies combining long holdings of equities with short sales of equity, equity options, or equity index options. The funds may be either net long or net short, depending on the portfolio manager’s view of the market.
4The average annual total returns take into account applicable sales charges. Class A shares are subject to an annual distribution and service (12b-1) fee of up to 0.25%. 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 Russell 1000 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 expressed as a percentage of net assets as of 2/29/08 | |||
Exxon Mobil Corp., Oil, Gas & Consumable Fuels | 4.0 | % | |
General Electric Co., Industrial Conglomerates | 3.1 | ||
Microsoft Corp., Software | 2.1 | ||
Procter & Gamble Co., Household Products | 2.1 | ||
Chevron Corp., Oil, Gas & Consumable Fuels | 2.0 |
Holdings reflect only long-term investments and are subject to change.
Five Largest Industries expressed as a percentage of net assets as of 2/29/08 | |||
Oil, Gas & Consumable Fuels | 13.7 | % | |
Pharmaceuticals | 7.2 | ||
Insurance | 5.9 | ||
Computer & Peripherals | 5.3 | ||
Software | 5.0 |
Industry weightings reflect only long-term investments and are subject to change.
Dryden US Equity Active Extension 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 September 1, 2007, at the beginning of the period, and held through the six-month period ended February 29, 2008. 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 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 |
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.
Dryden US Equity Active | Beginning Account September 1, 2007 | Ending Account | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Class A | Actual** | $ | 1,000.00 | $ | 905.00 | 1.74 | % | $ | 2.94 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,016.76 | 1.74 | % | $ | 8.72 | ||||||
Class Z | Actual** | $ | 1,000.00 | $ | 906.00 | 1.49 | % | $ | 2.52 | |||||
Hypothetical | $ | 1,000.00 | $ | 1,018.00 | 1.49 | % | $ | 7.47 | ||||||
* Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 182 days in the six-month period ended February 29, 2008, and divided by the 366 days in the Fund’s fiscal year ending August 31, 2008 (to reflect the six-month period) with the exception of the Class A and Class Z “Actual” information which reflects the 65 day period ended February 29, 2008 due to its inception date of December 27, 2007. Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.
** Class A and Z shares commenced operations on December 27, 2007.
Dryden US Equity Active Extension Fund | 5 |
Portfolio of Investments
as of February 29, 2008 (Unaudited)
Shares | Description | Value (Note 1) | |||
LONG-TERM INVESTMENTS 127.1% | |||||
COMMON STOCKS | |||||
Aerospace/Defense 4.0% | |||||
2,200 | Boeing Co. | $ | 182,138 | ||
1,600 | Lockheed Martin Corp. | 165,120 | |||
2,000 | Northrop Grumman Corp. | 157,220 | |||
200 | Precision Castparts Corp. | 22,078 | |||
2,500 | Raytheon Co. | 162,100 | |||
500 | Rockwell Collins, Inc. | 29,450 | |||
718,106 | |||||
Air Freight & Logistics 0.3% | |||||
900 | United Parcel Service, Inc. (Class B) | 63,216 | |||
Airlines 0.6% | |||||
8,000 | Pinnacle Airlines Corp.(a) | 89,680 | |||
700 | Republic Airways Holdings, Inc.(a) | 13,685 | |||
103,365 | |||||
Automobiles 0.5% | |||||
3,200 | Thor Industries, Inc. | 97,536 | |||
Beverages 3.3% | |||||
3,300 | Anheuser-Busch Cos., Inc. | 155,397 | |||
1,200 | Coca-Cola Co. (The) | 70,152 | |||
2,400 | Molson Coors Brewing Co. (Class B) | 129,504 | |||
3,200 | Pepsi Bottling Group, Inc. | 108,832 | |||
1,900 | PepsiCo, Inc. | 132,164 | |||
596,049 | |||||
Biotechnology 1.6% | |||||
4,000 | Amgen, Inc.(a) | 182,080 | |||
8,300 | Millennium Pharmaceuticals, Inc.(a) | 116,117 | |||
298,197 | |||||
Building Products | |||||
100 | Lennox International, Inc. | 3,764 | |||
Capital Markets 3.7% | |||||
5,700 | Charles Schwab Corp. (The) | 111,777 | |||
1,100 | Goldman Sachs Group, Inc. (The) | 186,593 | |||
1,800 | Investment Technology Group, Inc.(a) | 83,844 |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 7 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Capital Markets (cont’d.) | |||||
3,900 | Janus Capital Group, Inc. | $ | 94,458 | ||
1,700 | Lazard Ltd. (Class A) | 64,923 | |||
1,100 | MCG Capital Corp. | 13,200 | |||
800 | Merrill Lynch & Co., Inc. | 39,648 | |||
4,100 | MF Global Ltd.(a) | 71,955 | |||
666,398 | |||||
Chemicals 3.4% | |||||
4,200 | Dow Chemical Co. (The) | 158,298 | |||
2,600 | E.I. Du Pont de Nemours & Co. | 120,692 | |||
1,800 | Eastman Chemical Co. | 118,458 | |||
2,200 | H.B. Fuller Co. | 50,050 | |||
1,000 | Lubrizol Corp. | 58,300 | |||
6,100 | Olin Corp. | 117,242 | |||
623,040 | |||||
Commercial Banks 3.5% | |||||
2,800 | BB&T Corp. | 87,164 | |||
1,100 | Colonial BancGroup, Inc. (The) | 13,288 | |||
5,300 | Fifth Third Bancorp. | 121,370 | |||
2,200 | Huntington Bancshares, Inc. | 26,884 | |||
5,900 | Regions Financial Corp. | 125,080 | |||
5,800 | Wachovia Corp. | 177,596 | |||
1,900 | Wells Fargo & Co. | 55,537 | |||
700 | Zions Bancorp. | 33,425 | |||
640,344 | |||||
Commercial Services & Supplies 1.8% | |||||
1,400 | Avery Dennison Corp. | 71,848 | |||
2,000 | Corporate Executive Board Co. | 81,220 | |||
200 | Herman Miller, Inc. | 5,966 | |||
800 | Manpower, Inc. | 45,360 | |||
1,900 | PeopleSupport, Inc.(a) | 22,059 | |||
6,900 | Steelcase, Inc. | 97,842 | |||
324,295 | |||||
Communications Equipment 2.5% | |||||
4,000 | Anaren Microwave, Inc.(a) | 50,560 | |||
7,200 | Cisco Systems, Inc.(a) | 175,464 | |||
600 | Corning, Inc. | 13,938 |
See Notes to Financial Statements.
8 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Communications Equipment (cont’d.) | |||||
5,200 | QUALCOMM, Inc. | $ | 220,324 | ||
460,286 | |||||
Computers & Peripherals 5.3% | |||||
300 | Apple, Inc.(a) | 37,506 | |||
11,400 | Brocade Communications Systems, Inc.(a) | 87,666 | |||
2,500 | Hewlett-Packard Co. | 119,425 | |||
2,200 | International Business Machines Corp. | 250,492 | |||
5,200 | Network Appliance, Inc.(a) | 112,424 | |||
1,700 | Novatel Wireless, Inc.(a) | 17,986 | |||
8,500 | QLogic Corp.(a) | 134,725 | |||
5,300 | Seagate Technology | 114,321 | |||
5,300 | Sun Microsystems, Inc.(a) | 86,920 | |||
961,465 | |||||
Consumer Finance 0.8% | |||||
3,000 | Capital One Financial Corp. | 138,090 | |||
Containers & Packaging 0.1% | |||||
1,000 | Packaging Corp of America | 22,790 | |||
Diversified Consumer Services 0.8% | |||||
900 | Apollo Group, Inc. (Class A)(a) | 55,242 | |||
400 | Capella Education Co.(a) | 21,084 | |||
1,400 | ITT Educational Services, Inc.(a) | 77,308 | |||
153,634 | |||||
Diversified Financial Services 2.7% | |||||
3,100 | Bank of America Corp. | 123,194 | |||
10,600 | Citigroup, Inc. | 251,326 | |||
1,800 | JPMorgan Chase & Co. | 73,170 | |||
1,100 | MSCI, Inc.(a) | 32,703 | |||
480,393 | |||||
Diversified Telecommunication Services 3.1% | |||||
7,700 | AT&T, Inc. | 268,191 | |||
3,000 | CenturyTel, Inc. | 108,570 | |||
2,100 | Verizon Communications, Inc. | 76,272 | |||
9,900 | Windstream Corp. | 116,424 | |||
569,457 |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 9 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Electric Utilities 2.4% | |||||
3,100 | American Electric Power Co., Inc. | $ | 126,852 | ||
2,600 | Edison International | 128,440 | |||
900 | FPL Group, Inc. | 54,261 | |||
2,800 | PPL Corp. | 127,064 | |||
436,617 | |||||
Electrical Equipment 1.7% | |||||
500 | First Solar, Inc.(a) | 102,600 | |||
2,300 | Hubbell, Inc. (Class B) | 104,351 | |||
300 | Polypore International, Inc.(a) | 5,391 | |||
1,300 | Rockwell Automation, Inc. | 71,123 | |||
600 | Thomas & Betts Corp.(a) | 24,090 | |||
307,555 | |||||
Electronic Equipment & Instruments 1.4% | |||||
6,700 | Ingram Micro, Inc. (Class A)(a) | 102,309 | |||
5,900 | Jabil Circuit, Inc. | 76,228 | |||
2,300 | Tech Data Corp.(a) | 76,705 | |||
255,242 | |||||
Energy Equipment & Services 2.9% | |||||
2,300 | Halliburton Co. | 88,090 | |||
800 | Helmerich & Payne, Inc. | 35,864 | |||
1,000 | National-Oilwell Varco, Inc.(a) | 62,300 | |||
400 | Schlumberger Ltd. | 34,580 | |||
1,300 | SEACOR Holdings, Inc.(a) | 124,787 | |||
600 | Tidewater, Inc. | 33,690 | |||
2,600 | Unit Corp.(a) | 143,390 | |||
522,701 | |||||
Food & Staples Retailing 3.1% | |||||
3,100 | CVS Caremark Corp. | 125,178 | |||
5,400 | Kroger Co. | 130,950 | |||
1,100 | Safeway, Inc. | 31,614 | |||
5,400 | Wal-Mart Stores, Inc. | 267,786 | |||
555,528 | |||||
Food Products 0.4% | |||||
5,400 | Sara Lee Corp. | 68,202 |
See Notes to Financial Statements.
10 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Healthcare Equipment & Supplies 2.3% | |||||
1,400 | Analogic Corp. | $ | 81,914 | ||
2,900 | Baxter International, Inc. | 171,158 | |||
700 | Edwards Lifesciences Corp.(a) | 30,527 | |||
400 | Intuitive Surgical, Inc.(a) | 112,768 | |||
500 | Merit Medical Systems, Inc.(a) | 7,925 | |||
600 | STERIS Corp. | 14,772 | |||
419,064 | |||||
Healthcare Providers & Services 4.8% | |||||
2,600 | Cardinal Health, Inc. | 153,764 | |||
2,000 | Express Scripts, Inc.(a) | 118,200 | |||
3,500 | Lincare Holdings, Inc.(a) | 113,750 | |||
3,000 | Medco Health Solutions, Inc.(a) | 132,930 | |||
4,200 | UnitedHealth Group, Inc. | 195,216 | |||
2,100 | Well Point, Inc.(a) | 147,168 | |||
861,028 | |||||
Hotels, Restaurants & Leisure 2.0% | |||||
5,400 | Brinker International, Inc. | 99,576 | |||
4,500 | Jack in the Box, Inc.(a) | 118,215 | |||
4,500 | PF Chang’s China Bistro, Inc.(a) | 128,385 | |||
900 | Wyndham Worldwide Corp. | 19,953 | |||
366,129 | |||||
Household Durables 1.1% | |||||
600 | Garmin Ltd. | 35,226 | |||
4,300 | Kimball International (Class B) | 44,935 | |||
2,400 | Stanley Works (The) | 116,496 | |||
196,657 | |||||
Household Products 2.9% | |||||
2,300 | Kimberly-Clark Corp. | 149,914 | |||
5,800 | Procter & Gamble Co. | 383,844 | |||
533,758 | |||||
Independent Power Producers & Energy Traders 0.4% | |||||
400 | AES Corp.(a) | 7,192 | |||
700 | Constellation Energy Group, Inc. | 61,845 | |||
69,037 |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 11 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Industrial Conglomerates 4.1% | |||||
17,100 | General Electric Co. | $ | 566,694 | ||
500 | Textron, Inc. | 27,085 | |||
3,600 | Tyco International Ltd. | 144,216 | |||
737,995 | |||||
Insurance 5.9% | |||||
2,400 | Allied World Assurance Co. Holdings Ltd. | 104,520 | |||
4,200 | American Financial Group, Inc. | 108,654 | |||
1,500 | American International Group, Inc. | 70,290 | |||
1,800 | Arch Capital Group Ltd.(a) | 123,264 | |||
3,100 | Axis Capital Holdings Ltd. | 114,297 | |||
1,300 | Everest Re Group Ltd. | 125,944 | |||
300 | Hartford Financial Services Group, Inc. | 20,970 | |||
2,000 | Montpelier Re Holdings Ltd. | 31,820 | |||
1,600 | PartnerRe Ltd. | 123,024 | |||
2,900 | Travelers Cos., Inc. (The) | 134,589 | |||
2,300 | W.R. Berkley Corp. | 66,217 | |||
1,200 | XL Capital Ltd. (Class A) | 43,272 | |||
1,066,861 | |||||
Internet & Catalog Retail 0.5% | |||||
4,600 | IAC/InterActive Corp.(a) | 91,540 | |||
Internet Software & Services 1.2% | |||||
5,500 | eBay, Inc.(a) | 144,980 | |||
100 | Google, Inc. (Class A)(a) | 47,118 | |||
2,300 | Vignette Corp.(a) | 29,095 | |||
221,193 | |||||
IT Services 1.5% | |||||
1,400 | Accenture Ltd. | 49,350 | |||
3,400 | Automatic Data Processing, Inc. | 135,830 | |||
100 | Integral Systems, Inc. | 2,434 | |||
400 | Mastercard, Inc. (Class A) | 76,000 | |||
263,614 | |||||
Life Sciences, Tools & Services 1.5% | |||||
3,800 | Applera Corp. - Applied Biosystems Group | 128,098 | |||
900 | Covance, Inc.(a) | 75,969 | |||
1,000 | Dionex Corp.(a) | 73,820 | |||
277,887 |
See Notes to Financial Statements.
12 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Machinery 2.0% | |||||
2,200 | Cummins, Inc. | $ | 110,836 | ||
300 | Illinois Tool Works, Inc. | 14,721 | |||
2,900 | Ingersoll-Rand Co. | 121,394 | |||
1,800 | Parker Hannifin Corp. | 116,334 | |||
363,285 | |||||
Media 3.6% | |||||
2,600 | CBS Corp. (Class B) | 59,332 | |||
8,800 | Comcast Corp. (Class A) | 171,952 | |||
6,400 | DIRECTV Group, Inc. (The)(a) | 160,320 | |||
600 | Lamar Advertising Co. | 22,866 | |||
800 | Marvel Entertainment, Inc.(a) | 20,120 | |||
10,800 | Time Warner, Inc. | 168,588 | |||
1,600 | Walt Disney Co. (The) | 51,856 | |||
655,034 | |||||
Metals & Mining 0.7% | |||||
3,500 | Alcoa, Inc. | 129,990 | |||
Multi-line Retail 0.2% | |||||
1,300 | Macy’s, Inc. | 32,084 | |||
Multi-Utilities 0.1% | |||||
1,800 | CMS Energy Corp. | 25,902 | |||
Office Electronics 0.7% | |||||
8,600 | Xerox Corp. | 126,420 | |||
100 | Zebra Technologies Corp.(a) | 3,332 | |||
129,752 | |||||
Oil, Gas & Consumable Fuels 13.7% | |||||
2,600 | Chesapeake Energy Corp. | 117,572 | |||
4,100 | Chevron Corp. | 355,306 | |||
3,500 | ConocoPhillips | 289,485 | |||
1,400 | Devon Energy Corp. | 143,808 | |||
8,300 | Exxon Mobil Corp. | 722,183 | |||
1,500 | Frontier Oil Corp. | 53,565 | |||
2,400 | Holly Corp. | 128,136 | |||
300 | Marathon Oil Corp. | 15,948 | |||
2,000 | Massey Energy Co. | 76,520 |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 13 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Oil, Gas & Consumable Fuels (cont’d.) | |||||
1,400 | Overseas Shipholding Group, Inc. | $ | 87,808 | ||
3,200 | Quicksilver Resources, Inc.(a) | 110,080 | |||
2,600 | Sandridge Energy, Inc.(a) | 97,864 | |||
1,800 | Sunoco, Inc. | 109,944 | |||
4,100 | Williams Cos., Inc. | 147,682 | |||
2,455,901 | |||||
Paper & Forest Products 0.5% | |||||
3,100 | International Paper Co. | 98,270 | |||
Personal Products | |||||
200 | Nu Skin Enterprises, Inc. (Class A) | 3,312 | |||
Pharmaceuticals 7.2% | |||||
6,400 | Bristol-Myers Squibb Co. | 144,704 | |||
3,100 | Eli Lilly & Co. | 155,062 | |||
1,800 | Forest Laboratories, Inc.(a) | 71,586 | |||
2,400 | Johnson & Johnson | 148,704 | |||
4,600 | Merck & Co., Inc. | 203,780 | |||
3,900 | Par Pharmaceutical Cos., Inc.(a) | 68,991 | |||
14,600 | Pfizer, Inc. | 325,288 | |||
4,100 | Sepracor, Inc.(a) | 88,027 | |||
4,700 | Warner Chilcott Ltd. (Class A)(a) | 79,289 | |||
100 | Wyeth | 4,362 | |||
1,289,793 | |||||
Real Estate Investment Trust 3.3% | |||||
2,000 | Arbor Realty Trust, Inc. | 32,160 | |||
6,600 | Brandywine Realty Trust | 110,484 | |||
5,000 | CBL & Associates Properties, Inc. | 116,750 | |||
1,300 | Cedar Shopping Centers, Inc. | 15,106 | |||
1,900 | Hospitality Properties Trust | 69,027 | |||
3,600 | Parkway Properties, Inc. | 128,700 | |||
3,700 | Weingarten Realty Investors | 118,807 | |||
591,034 | |||||
Road & Rail 1.1% | |||||
1,200 | CSX Corp. | 58,224 | |||
700 | Landstar System, Inc. | 32,466 | |||
2,000 | Norfolk Southern Corp. | 105,780 | |||
196,470 |
See Notes to Financial Statements.
14 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | |||
COMMON STOCKS (Continued) | |||||
Semiconductors & Semiconductor Equipment 3.4% | |||||
11,000 | Intel Corp. | $ | 219,450 | ||
900 | LSI Corp.(a) | 4,536 | |||
4,800 | NVIDIA Corp.(a) | 102,672 | |||
4,700 | Texas Instruments, Inc. | 140,812 | |||
6,200 | Xilinx, Inc. | 138,632 | |||
1,000 | Zoran Corp.(a) | 13,730 | |||
619,832 | |||||
Software 5.0% | |||||
3,600 | Adobe Systems, Inc.(a) | 121,140 | |||
13,800 | Compuware Corp.(a) | 109,848 | |||
800 | Factset Research Systems, Inc. | 42,112 | |||
700 | Lawson Software, Inc.(a) | 5,460 | |||
14,200 | Microsoft Corp. | 386,524 | |||
5,500 | Oracle Corp.(a) | 103,400 | |||
8,500 | Symantec Corp.(a) | 143,140 | |||
911,624 | |||||
Specialty Retail 2.5% | |||||
6,000 | American Eagle Outfitters, Inc. | 128,220 | |||
2,700 | Best Buy Co., Inc. | 116,127 | |||
6,200 | Cache, Inc.(a) | 61,752 | |||
1,700 | Petsmart, Inc. | 36,601 | |||
2,100 | Rent-A-Center, Inc.(a) | 36,015 | |||
2,800 | Tween Brands, Inc.(a) | 82,880 | |||
461,595 | |||||
Textiles, Apparel & Luxury Goods 1.2% | |||||
5,900 | Jones Apparel Group, Inc. | 83,249 | |||
3,400 | Warnaco Group, Inc. (The)(a) | 127,704 | |||
210,953 | |||||
Thrifts & Mortgage Finance 0.8% | |||||
8,600 | Hudson City Bancorp, Inc. | 136,482 | |||
Tobacco 1.2% | |||||
1,300 | Altria Group, Inc. | 95,082 | |||
2,000 | Reynolds American, Inc. | 127,440 | |||
222,522 |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 15 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | ||||
COMMON STOCKS (Continued) | ||||||
Trading Companies & Distributors 1.3% | ||||||
4,300 | Aircastle Ltd. | $ | 88,580 | |||
2,200 | Nuco2, Inc.(a) | 60,786 | ||||
1,600 | United Rental, Inc.(a) | 32,160 | ||||
1,400 | WESCO International, Inc.(a) | 56,000 | ||||
237,526 | ||||||
Wireless Telecommunication Services 0.5% | ||||||
12,700 | Sprint Nextel Corp. | 90,297 | ||||
Total long-term investments | 23,032,691 | |||||
SHORT-TERM INVESTMENTS 1.4% | ||||||
Affiliated Mutual Funds 1.3% | ||||||
Dryden Core Investment Fund - Taxable Money Market Series | ||||||
241,027 | (cost $241,027)(Note 3)(b) | 241,027 | ||||
U.S. Government Treasury Security 0.1% | ||||||
Principal Amount | ||||||
United States Treasury Bill, 3.16%, 3/20/2008(c)(d) | ||||||
$25,000 | (cost $24,958) | 24,975 | ||||
Total short-term investments | 266,002 | |||||
Total Investments, Before Securities Sold Short 128.6% | 23,298,693 | |||||
SECURITIES SOLD SHORT (29.1)% | ||||||
COMMON STOCKS | ||||||
Aerospace/Defense (0.1)% | ||||||
500 | BE Aerospace, Inc.(a) | (17,150 | ) | |||
Air Freight & Logistics (0.5)% | ||||||
2,300 | Expeditors International Washington, Inc. | (90,436 | ) | |||
Airlines (1.1)% | ||||||
7,700 | AMR Corp.(a) | (98,637 | ) | |||
7,400 | Delta Airlines, Inc.(a) | (98,790 | ) | |||
(197,427 | ) |
See Notes to Financial Statements.
16 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | ||||
COMMON STOCKS (Continued) | ||||||
Biotechnology (0.7)% | ||||||
3,000 | Amylin Pharmaceuticals, Inc.(a) | $ | (79,410 | ) | ||
200 | Genentech, Inc.(a) | (15,150 | ) | |||
1,400 | Vertex Pharmaceuticals, Inc.(a) | (24,500 | ) | |||
(119,060 | ) | |||||
Chemicals (0.2)% | ||||||
1,100 | Cabot Corp. | (30,140 | ) | |||
Commercial Banks (0.7)% | ||||||
2,700 | Bancorpsouth, Inc. | (60,696 | ) | |||
800 | Commerce Bancshares, Inc. | (33,320 | ) | |||
2,100 | Valley National Bancorp. | (39,228 | ) | |||
(133,244 | ) | |||||
Commercial Services & Supplies (0.4)% | ||||||
600 | Mines Safety Appliances Co. | (24,066 | ) | |||
2,800 | Navigant Consulting, Inc.(a) | (45,668 | ) | |||
(69,734 | ) | |||||
Communications Equipment (0.8)% | ||||||
4,000 | F5 Networks, Inc.(a) | (88,640 | ) | |||
4,700 | Foundry Networks, Inc.(a) | (55,789 | ) | |||
(144,429 | ) | |||||
Computers & Peripherals (0.1)% | ||||||
600 | SanDisk Corp.(a) | (14,130 | ) | |||
Construction & Engineering (0.7)% | ||||||
5,400 | Quanta Services, Inc.(a) | (128,952 | ) | |||
Consumer Finance (0.6)% | ||||||
5,200 | SLM Corp. | (101,972 | ) | |||
Diversified Financial Services | ||||||
200 | Nasdaq OMX Group (The)(a) | (8,302 | ) | |||
Electronic Equipment & Instruments (1.0)% | ||||||
2,300 | Amphenol Corp. (Class A) | (85,031 | ) | |||
3,700 | Trimble Navigation Ltd.(a) | (101,158 | ) | |||
(186,189 | ) |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 17 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | ||||
COMMON STOCKS (Continued) | ||||||
Energy Equipment & Services (1.4)% | ||||||
400 | Exterran Holdings, Inc.(a) | $ | (27,860 | ) | ||
2,000 | Grant Prideco, Inc.(a) | (100,940 | ) | |||
400 | Transocean, Inc. | (56,204 | ) | |||
900 | Weatherford International Ltd.(a) | (62,028 | ) | |||
(247,032 | ) | |||||
Food Products (0.1)% | ||||||
600 | Tootsie Roll Industries, Inc. | (14,538 | ) | |||
Healthcare Equipment & Supplies (0.5)% | ||||||
2,300 | Resmed, Inc.(a) | (93,127 | ) | |||
Healthcare Providers & Services (2.3)% | ||||||
3,100 | Community Health Systems, Inc.(a) | (96,317 | ) | |||
2,000 | Davita, Inc.(a) | (99,260 | ) | |||
1,800 | Henry Schein, Inc.(a) | (107,676 | ) | |||
3,500 | Psychiatric Solutions, Inc.(a) | (99,015 | ) | |||
500 | Wellcare Health Plans, Inc.(a) | (23,870 | ) | |||
(426,138 | ) | |||||
Hotels, Restaurants & Leisure (1.0)% | ||||||
2,000 | Orient Express Hotels Ltd. | (108,340 | ) | |||
3,400 | Scientific Games Corp.(a) | (70,278 | ) | |||
(178,618 | ) | |||||
Household Durables (0.6)% | ||||||
5,500 | Toll Brothers, lnc.(a) | (116,655 | ) | |||
Independent Power Producers & Energy Traders (0.4)% | ||||||
9,900 | Dynegy, Inc.(a) | (73,260 | ) | |||
Insurance (1.8)% | ||||||
1,400 | AON Corp. | (58,254 | ) | |||
6,200 | Fidelity National Title | (109,182 | ) | |||
3,300 | First American Corp. | (114,939 | ) | |||
100 | White Mountains Insurance Group Ltd. | (49,340 | ) | |||
(331,715 | ) | |||||
Internet Software & Services (0.6)% | ||||||
2,900 | VeriSign, Inc.(a) | (100,920 | ) |
See Notes to Financial Statements.
18 | Visit our website at www.jennisondryden.com |
Shares | Description | Value (Note 1) | ||||
COMMON STOCKS (Continued) | ||||||
IT Services (0.4)% | ||||||
1,600 | Fidelity National Information Services, Inc. | $ | (66,384 | ) | ||
Life Sciences, Tools & Services (0.1)% | ||||||
300 | Pharmaceutical Product Development, Inc. | (13,521 | ) | |||
Machinery (0.6)% | ||||||
1,700 | Joy Global, Inc. | (112,829 | ) | |||
Media (1.3)% | ||||||
3,300 | Clear Channel Outdoor Holdings, Inc. (Class A)(a) | (76,758 | ) | |||
4,000 | CTC Media, Inc.(a) | (117,440 | ) | |||
2,700 | News Corp. (Class A) | (49,707 | ) | |||
(243,905 | ) | |||||
Metals & Mining (0.1)% | ||||||
1,000 | Titanium Metals Corp. | (20,620 | ) | |||
Multi-line Retail (0.3)% | ||||||
1,200 | Target Corp. | (63,132 | ) | |||
Oil, Gas & Consumable Fuels (3.1)% | ||||||
2,000 | Bill Barrett Corp.(a) | (92,680 | ) | |||
600 | Cabot Oil And Gas Corp. | (29,850 | ) | |||
2,200 | Foundation Coal Holdings, Inc. | (127,094 | ) | |||
1,300 | Peabody Energy Corp. | (73,606 | ) | |||
2,100 | Range Resources Corp. | (128,478 | ) | |||
1,700 | Southwestern Energy Co.(a) | (110,891 | ) | |||
(562,599 | ) | |||||
Pharmaceuticals (0.9)% | ||||||
1,200 | Allergan, Inc. | (71,076 | ) | |||
7,700 | Mylan, Inc. | (91,168 | ) | |||
(162,244 | ) | |||||
Real Estate Investment Trust (2.1)% | ||||||
400 | Alexandria Real Estate Equities, Inc. | (36,720 | ) | |||
900 | Essex Property Trust, Inc. | (94,536 | ) | |||
700 | Health Care Property Investors, Inc. | (20,426 | ) | |||
2,300 | Plum Creek Timber Co., Inc. | (93,587 | ) | |||
800 | Rayonier, Inc. | (34,040 | ) | |||
2,500 | Ventas, Inc. | (104,550 | ) | |||
(383,859 | ) |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 19 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Shares | Description | Value (Note 1) | ||||
COMMON STOCKS (Continued) | ||||||
Semiconductors & Semiconductor Equipment (2.2)% | ||||||
4,900 | Applied Materials, Inc. | $ | (93,933 | ) | ||
5,500 | Cypress Semiconductor Corp.(a) | (119,570 | ) | |||
15,300 | Micron Technology, Inc.(a) | (115,056 | ) | |||
2,900 | Novellus Systems, Inc.(a) | (64,032 | ) | |||
(392,591 | ) | |||||
Software (0.6)% | ||||||
100 | Advent Software, Inc.(a) | (4,494 | ) | |||
2,100 | Electronic Arts, Inc.(a) | (99,309 | ) | |||
(103,803 | ) | |||||
Specialty Retail (0.5)% | ||||||
3,500 | O’Reilly Automotive, Inc.(a) | (94,360 | ) | |||
Textiles, Apparel & Luxury Goods (0.3)% | ||||||
2,400 | CROCS, Inc.(a) | (58,368 | ) | |||
Wireless Telecommunication Services (1.0)% | ||||||
6,000 | MetroPCS Communications, Inc.(a) | (95,700 | ) | |||
2,300 | Nii Holdings, Inc.(a) | (91,379 | ) | |||
(187,079 | ) | |||||
Total securities sold short | (5,288,462 | ) | ||||
Total Investments, Net of Securities Sold Short 99.4% | 18,010,231 | |||||
Other assets in excess of liabilities(e) 0.6% | 106,914 | |||||
Net Assets 100.0% | $ | 18,117,145 | ||||
(a) | Non-income producing security. |
(b) | Prudential Investments LLC, the Manager of the Fund, also serves as Manager of the Dryden Core Investment Fund—Taxable Money Market Series. |
(c) | Percentage quoted represent yield-to-maturity as of purchase date. |
(d) | Security segregated as collateral for future contracts |
(e) | Other assets in excess of liabilities include net unrealized depreciation on financial futures contracts as follows: |
See Notes to Financial Statements.
20 | Visit our website at www.jennisondryden.com |
Open futures contracts outstanding at February 29, 2008:
Number of Contracts | Type | Expiration Date | Value at February 29, 2008 | Value at Trade Date | Unrealized Depreciation | |||||||||
Long Position: | ||||||||||||||
4 | Russell 1000 Mini Futures | Mar. 08 | $ | 290,720 | $ | 301,759 | $ | (11,039 | ) | |||||
Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.
Level 1 - quoted prices in active markets for identical securities
Level 2 - other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 - significant unobservable inputs (including the Fund’s own assumptions in determining the fair value of investments)
The following is a summary of the inputs used as of February 29, 2008 in valuing the Fund’s assets carried at fair value:
Valuation inputs | Investments in Securities | Other Financial Instruments* | ||||
Level 1 - Quoted Prices | $ | 17,985,256 | $ | 290,720 | ||
Level 2 - Other Significant Observable Inputs | 24,975 | — | ||||
Level 3 - Significant Unobservable Inputs | — | — | ||||
Total | $ | 18,010,231 | $ | 290,720 | ||
* | Other financial instruments are derivative instruments not reflected in the Portfolio of Investments, such as futures, forwards and swap contracts, which are valued at the unrealized appreciation/depreciation on the instrument. |
As of February 29, 2008, the Fund did not use any significant unobservable inputs (Level 3) in determining the valuation of Investments
The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of February 29, 2008 were as follows:
Oil, Gas & Consumable Fuels | 13.7 | % | |
Pharmaceuticals | 7.2 | ||
Insurance | 5.9 | ||
Computers & Peripherals | 5.3 | ||
Software | 5.0 |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 21 |
Portfolio of Investments
as of February 29, 2008 (Unaudited) continued
Industry (cont’d.) | ||
Healthcare Providers & Services | 4.8 | |
Industrial Conglomerates | 4.1 | |
Aerospace/Defense | 4.0 | |
Capital Markets | 3.7 | |
Media | 3.6 | |
Commercial Banks | 3.5 | |
Chemicals | 3.4 | |
Semiconductors & Semiconductor Equipment | 3.4 | |
Beverages | 3.3 | |
Real Estate Investment Trust | 3.3 | |
Diversified Telecommunication Services | 3.1 | |
Food & Staples Retailing | 3.1 | |
Energy Equipment & Services | 2.9 | |
Household Products | 2.9 | |
Diversified Financial Services | 2.7 | |
Communications Equipment | 2.5 | |
Specialty Retail | 2.5 | |
Electric Utilities | 2.4 | |
Healthcare Equipment & Supplies | 2.3 | |
Hotel, Restaurants & Leisure | 2.0 | |
Machinery | 2.0 | |
Commercial Services & Supplies | 1.8 | |
Electrical Equipment | 1.7 | |
Biotechnology | 1.6 | |
IT Services | 1.5 | |
Life Sciences, Tools & Services | 1.5 | |
Electronic Equipment & Instruments | 1.4 | |
Affiliated Money Market Mutual Fund | 1.3 | |
Trading Companies & Distributors | 1.3 | |
Internet Software & Services | 1.2 | |
Textiles, Apparel & Luxury Goods | 1.2 | |
Tobacco | 1.2 | |
Household Durables | 1.1 | |
Road & Rail | 1.1 | |
Consumer Finance | 0.8 | |
Diversified Consumer Services | 0.8 | |
Thrifts & Mortgage Finance | 0.8 | |
Metals & Mining | 0.7 | |
Office Electronics | 0.7 | |
Airlines | 0.6 | |
Automobiles | 0.5 | |
Internet & Catalog Retail | 0.5 | |
Paper & Forest Products | 0.5 | |
Wireless Telecommunication Services | 0.5 | |
Food Products | 0.4 | |
Independent Power Producers & Energy Traders | 0.4 | |
Air Freight & Logistics | 0.3 | |
Multi-line Retail | 0.2 |
See Notes to Financial Statements.
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Industry (cont’d.) | |||
Containers & Packaging | 0.1 | ||
Multi-Utilities | 0.1 | ||
U.S. Government Treasury Security | 0.1 | ||
Aerospace/Defense | (0.1 | ) | |
Computers & Peripherals | (0.1 | ) | |
Food Products | (0.1 | ) | |
Life Sciences, Tools & Services | (0.1 | ) | |
Metals & Mining | (0.1 | ) | |
Chemicals | (0.2 | ) | |
Multi-line Retail | (0.3 | ) | |
Textiles, Apparel & Luxury Goods | (0.3 | ) | |
Commercial Services & Supplies | (0.4 | ) | |
Independent Power Producers & Energy Traders | (0.4 | ) | |
IT Services | (0.4 | ) | |
Air Freight & Logistics | (0.5 | ) | |
Healthcare Equipment & Supplies | (0.5 | ) | |
Specialty Retail | (0.5 | ) | |
Consumer Finance | (0.6 | ) | |
Household Durables | (0.6 | ) | |
Internet Software & Services | (0.6 | ) | |
Machinery | (0.6 | ) | |
Software | (0.6 | ) | |
Biotechnology | (0.7 | ) | |
Commercial Banks | (0.7 | ) | |
Construction & Engineering | (0.7 | ) | |
Communications Equipment | (0.8 | ) | |
Pharmaceuticals | (0.9 | ) | |
Electronic Equipment & Instruments | (1.0 | ) | |
Hotel, Restaurants & Leisure | (1.0 | ) | |
Wireless Telecommunication Services | (1.0 | ) | |
Airlines | (1.1 | ) | |
Media | (1.3 | ) | |
Energy Equipment & Services | (1.4 | ) | |
Insurance | (1.8 | ) | |
Real Estate Investment Trust | (2.1 | ) | |
Semiconductors & Semiconductor Equipment | (2.2 | ) | |
Healthcare Providers & Services | (2.3 | ) | |
Oil, Gas & Consumable Fuels | (3.1 | ) | |
99.4 | |||
Other assets in excess of liabilities | 0.6 | ||
100.0 | % | ||
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 23 |
Statement of Assets and Liabilities
as of February 29, 2008 (Unaudited)
Assets | ||||
Investments at value: | ||||
Unaffiliated investments (cost $25,309,277) | $ | 23,057,666 | ||
Affiliated investments (cost $241,027) | 241,027 | |||
Prepaid expenses | 29,841 | |||
Cash | 24,746 | |||
Dividends and interest receivable | 48,019 | |||
Due from advisor | 12,657 | |||
Total assets | 23,413,956 | |||
Liabilities | ||||
Securities sold short, at value (proceeds $5,760,305) | 5,288,462 | |||
Due to broker—variation margin | 7,480 | |||
Dividends on securities sold short | 852 | |||
Affiliated transfer agent fee payable | 17 | |||
Total liabilities | 5,296,811 | |||
Net Assets | $ | 18,117,145 | ||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 2,000 | ||
Paid-in capital in excess of par | 20,002,502 | |||
20,004,502 | ||||
Undistributed net investment income | 58,330 | |||
Accumulated net realized loss on investment, short sales and futures transactions | (154,880 | ) | ||
Net unrealized depreciation on investments, short sales and futures | (1,790,807 | ) | ||
Net assets, February 29, 2008 | $ | 18,117,145 | ||
Class A | |||
Net asset value and redemption price per share | $ | 9.05 | |
Maximum sales charge (5.50% of offering price) | .53 | ||
Maximum offering price to public | $ | 9.58 | |
Class Z | |||
Net asset value, offering price and redemption price per share | $ | 9.06 | |
See Notes to Financial Statements.
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Statement of Operations
For the period December 27, 2007(a) through February 29, 2008 (Unaudited)
Net Investment Loss | ||||
Income | ||||
Unaffiliated dividends | $ | 88,152 | ||
Affiliated dividend income | 18,274 | |||
Interest | 804 | |||
Total income | 107,230 | |||
Expenses | ||||
Management fee | 32,802 | |||
Distribution fee—Class A | 1 | |||
Legal fees and expenses | 27,000 | |||
Custodian’s fees and expenses | 19,000 | |||
Registration fees | 10,000 | |||
Audit fee | 5,000 | |||
Broker fees and expenses on short sales | 4,348 | |||
Trustees’ fees | 3,000 | |||
Transfer agent’s fees and expenses (including affiliated expenses of $17) (Note 3) | 1,000 | |||
Dividend income on short positions | 3,552 | |||
Reports to shareholders | 1,000 | |||
Miscellaneous | 2,111 | |||
Total expenses | 108,814 | |||
Less: Management fee waiver | (59,914 | ) | ||
Net expenses | 48,900 | |||
Net investment income | 58,330 | |||
Realized And Unrealized Loss On Investments, Short Sales and Futures | ||||
Net realized gain (loss) on: | ||||
Investment transactions | (212,730 | ) | ||
Short sale transactions | 63,661 | |||
Financial futures transactions | (5,811 | ) | ||
(154,880 | ) | |||
Net unrealized depreciation on: | ||||
Investments | (2,251,611 | ) | ||
Short sales | 471,843 | |||
Financial futures contracts | (11,039 | ) | ||
(1,790,807 | ) | |||
Net loss on investments, short sales and futures | (1,945,687 | ) | ||
Net Decrease In Net Assets Resulting From Operations | $ | (1,887,357 | ) | |
(a) | Commencement of investment operations. |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 25 |
Statement of Cash Flows
For the period December 27, 2007(a) through February 29, 2008
Increase (Decrease) in Cash | ||||
Cash flows provided from (used in) operating activities: | ||||
Interest and dividends received (excluding discount accretion of $129) | $ | 56,382 | ||
Operating expenses paid | (87,829 | ) | ||
Decrease in variation margin payable | (9,370 | ) | ||
Purchases of short-term portfolio investments, net | (265,856 | ) | ||
Purchases of long-term portfolio investments | (28,114,201 | ) | ||
Increase in proceeds from securities sold short | 6,752,158 | |||
Decrease in purchases to cover | (928,193 | ) | ||
Proceeds from disposition of long-term portfolio investments | 2,617,153 | |||
Net cash used in operating activities | (19,979,756 | ) | ||
Cash flows provided from (used in) financing activities: | ||||
Increase in shares of beneficial interest sold | 20,004,502 | |||
Net cash provided from financing activities | 20,004,502 | |||
Net increase in cash | 24,746 | |||
Cash at beginning of period | — | |||
Cash at end of period | $ | 24,746 | ||
Reconciliation of Net Increase in Net Assets to Net Cash Provided from (used in) Operating Activities | ||||
Net decrease in net assets resulting from operations | $ | (1,887,357 | ) | |
Increase in investments | (25,244,380 | ) | ||
Net realized loss on investment transactions | 154,880 | |||
Increase in net unrealized depreciation on investments | 1,790,807 | |||
Increase in interest and dividends receivable | (48,019 | ) | ||
Increase in receivable from advisor | (12,657 | ) | ||
Increase in prepaid expenses | (29,824 | ) | ||
Increase in variation margin payable | 7,480 | |||
Increase in securities sold short, at value | 5,288,462 | |||
Increase in dividends payable on securities sold short | 852 | |||
Total adjustments | (18,092,399 | ) | ||
Net cash used in operating activities | $ | (19,979,756 | ) | |
(a) | Commencement of investment operations. |
See Notes to Financial Statements.
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Statement of Changes in Net Assets
(Unaudited)
December 27, 2007* through February 29, 2008 | ||||
Increase In Net Assets | ||||
Operations | ||||
Net investment income | $ | 58,330 | ||
Net realized loss on investment, short sale and futures transactions | (154,880 | ) | ||
Net unrealized depreciation on investments, short sales and futures | (1,790,807 | ) | ||
Net decrease in net assets resulting from operations | (1,887,357 | ) | ||
Fund share transactions (Net of share conversions) (Note 6) | ||||
Net proceeds from shares sold | 20,004,502 | |||
Net asset value of shares issued in reinvestment of dividends | — | |||
Cost of shares reacquired | — | |||
Net increase in net assets from Fund share transactions | 20,004,502 | |||
Total increase | 18,117,145 | |||
Net Assets | ||||
Beginning of period | — | |||
End of period(a) | $ | 18,117,145 | ||
(a) Includes undistributed net investment income of: | $ | 58,330 | ||
* | Commencement of investment operations. |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 27 |
Notes to Financial Statements
(Unaudited)
JennisonDryden Portfolios, Inc. (the “Portfolios”) is registered under the Investment Company Act of 1940 as a diversified, open-end, management investment company and currently consists of two funds: Dryden US Equity Active Extension Fund (the “Fund”) and Jennison Value Fund. These financial statements relate to the Dryden US Equity Active Extension Fund. The financial statements of the other fund are not represented herein. The Fund commenced investment operations on December 27, 2007. The investment objective of the Fund is long-term capital appreciation. The Fund seeks to achieve its objective through the use of a long/short investment strategy.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the Portfolios and the Fund in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange 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 asked prices, or at the last bid price on such day in the absence of an asked price. Securities that are actively traded via Nasdaq are valued at the official closing price provided by Nasdaq. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”) in consultation with the subadvisor, to be over-the-counter are valued at market value using prices provided by an independent pricing agent or principal market maker. Future 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 Fund’s 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
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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.
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 debt 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 debt securities which mature in more than 60 days are valued at current market quotations.
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 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.
Dryden US Equity Active Extension Fund | 29 |
Notes to Financial Statements
(Unaudited) continued
Short Sales: The Fund engages in short sales (selling securities it does not own) as part of its normal investment activities. These short sales are collateralized at all times by cash deposits with the prime broker and securities held in a segregated account at the custodian. The short stock rebate is included in the Statements of Operations represents the net income earned on short sale proceeds held on deposit with the prime broker and margin interest earned or incurred on short sale transactions. Margin interest is the income earned (or expense incurred) as a result of the market value of securities sold short being less than (or greater than) the proceeds received from the short sales. Dividends declared on short positions are recorded on the ex-dividend date as an expense on the Statement of Operations and included in the expense ratio in the Financial Highlights. Liability for securities sold short is reported at market value on the Statement of Assets and Liabilities. The Fund records a loss if the price of the security increases between the date of the short sale and the date on which the Fund replaces the borrowed security. The Fund records a gain if the price of the security declines between those dates. Short selling involves the off-balance sheet risk of potentially unlimited increase in the market value of the security sold short, which could result in potentially unlimited loss for the Fund. The Fund is subject to risk of loss if the broker were to fail to perform its obligation under contractual terms.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses on sales of securities are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of premium and accretion of discount on debt securities as required, is recorded on an accrual basis. Expenses are recorded on an accrual basis. The Fund amortizes premiums and discounts on purchases of debt securities as adjustments to interest income.
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.
Dividends and Distributions: The Fund 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
30 | Visit our website at www.jennisondryden.com |
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, it is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to 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 Portfolios have a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the sub-advisor’s performance of such services. PI has entered into a subadvisory agreement with Quantitative Management Associates (“QMA”). The subadvisory agreement provides that QMA furnishes investment advisory services in connection with the management of the Fund. In connection therewith, QMA is obligated to keep certain books and records of the Fund. PI pays for the services of QMA, the compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid to PI is computed daily and payable monthly at an annual rate of 1.00 of 1% of the average daily net assets of the Fund.
PI has contractually agreed until December 31, 2008 to waive a portion of their management fee and/or reimburse the Fund in order to limit operating expenses (excluding distribution and service (12b-1) fees, dividend expenses related to short sales, taxes, interest, brokerage commissions and certain extraordinary expenses) to each class of shares do not exceed 1.25% of the Fund’s daily average net assets.
The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A shares pursuant to plans of distribution (the “Class A Plan”), regardless of
Dryden US Equity Active Extension Fund | 31 |
Notes to Financial Statements
(Unaudited) continued
expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund.
Pursuant to the Class A Plan, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30 of 1% of the average daily net assets of the Class A shares, respectively. PIMS contractually agreed to limit such fees to .25 of 1% of the average daily net assets of the Class A shares.
PI, QMA and PIMS are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“The Prudential”).
The Portfolios, 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 26, 2007, 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 .06 of 1% of the unused portion of the renewed SCA. The expiration date of the renewed SCA will be October 24, 2008. For the period from October 27, 2006 through October 26, 2007, the Funds paid a commitment fee of .07 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 Fund did not borrow any amounts pursuant to the SCA during the period ended February 29, 2008.
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 Fund 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.
32 | Visit our website at www.jennisondryden.com |
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments, for the period ended February 29, 2008 were $28,114,202 and $2,617,153, respectively. Short sales and purchases to cover were $6,752,159 and $928,193, respectively.
Note 5. Tax Information
The United States federal income tax basis of the Funds’ investments and the net unrealized depreciation as of February 29, 2008 were as follows:
Tax Basis | Appreciation | Depreciation | Net Unrealized Depreciation | |||
$19,791,290 | $915,193 | $(2,696,252) | $(1,781,059) |
The difference between book basis and tax basis is primarily attributable to deferred losses on wash sales.
Management has analyzed the Funds’ tax positions taken on federal income tax returns for all open tax years and has concluded that as of February 29, 2008, no provision for income tax would be required in the Funds’ financial statements. The Fund’s federal and state income and federal excise tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.
Note 6. Capital
The Fund consists of Class A, Class B, Class C and Class Z shares. For the period ended February 29, 2008, only Class A and Class Z were available for investment. Class A shares are sold with a front-end sales charge of up to 5.5%. 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 Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
At February 29, 2008, 99.9% of the shares outstanding were owned by the Manager and its affiliates.
Dryden US Equity Active Extension Fund | 33 |
Notes to Financial Statements
(Unaudited) continued
The Fund has authorized an unlimited number of shares of beneficial interest at $.01 par value divided into four classes, designated Class A, Class B, Class C and Class Z.
Transactions in shares of common stock were as follows:
Class A | Shares | Amount | |||
Period ended February 29, 2008:* | |||||
Shares sold | 368 | $ | 3,502 | ||
Shares issued in reinvestment of dividends | — | — | |||
Shares reacquired | — | — | |||
Net increase (decrease) in shares outstanding | 368 | $ | 3,502 | ||
Class Z | |||||
Period ended February 29, 2008:* | |||||
Shares sold | 2,000,100 | $ | 20,001,000 | ||
Shares issued in reinvestment of dividends | — | — | |||
Shares reacquired | — | — | |||
Net increase (decrease) in shares outstanding | 2,000,100 | $ | 20,001,000 | ||
* | Commenced operations on December 27, 2007. |
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Financial Highlights
Class A | ||||
December 27, 2007(a) Through February 29, 2008 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 10.00 | ||
Income from investment operations: | ||||
Net investment income | .01 | |||
Net realized and unrealized loss on investment transactions | (.96 | ) | ||
Total from investment operations | (.95 | ) | ||
Net asset value, end of period | $ | 9.05 | ||
Total Return(b): | (9.50 | )% | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 3 | ||
Average net assets (000) | $ | 1 | ||
Ratios to average net assets(c)(d): | ||||
Expenses, including distribution and service (12b-1) fees | 1.74 | %(e) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.49 | %(e) | ||
Expenses, excluding distribution and service (12b-1) fees and | 1.25 | %(e) | ||
Net investment income | 1.53 | %(e) | ||
Portfolio turnover rate | 21 | %(f) |
(a) | Inception date of Class A shares. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. Total investment returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Does not include expenses of the underlying portfolios in which the Fund invests. |
(d) | The distributor of the Fund 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. |
(e) | Annualized. |
(f) | Not annualized. |
See Notes to Financial Statements.
Dryden US Equity Active Extension Fund | 35 |
Financial Highlights
(Unaudited) continued
Class Z | ||||
December 27, 2007(a) Through February 29, 2008 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 10.00 | ||
Income (loss) from investment operations: | ||||
Net investment income | .03 | |||
Net realized and unrealized loss on investment transactions | (.97 | ) | ||
Total from investment operations | (.94 | ) | ||
Net asset value, end of period | $ | 9.06 | ||
Total Return(b): | (9.40 | )% | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 18,114 | ||
Average net assets (000) | $ | 18,758 | ||
Ratios to average net assets(c): | ||||
Expenses, including distribution and service (12b-1) fees | 1.49 | %(d) | ||
Expenses, excluding distribution and service (12b-1) fees | 1.49 | %(d) | ||
Expenses, excluding distribution and service (12b-1) fees and | 1.25 | %(d) | ||
Net investment income | 1.78 | %(d) |
(a) | Inception date of Class Z shares. |
(b) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized. Total investment returns may reflect adjustments to conform to generally accepted accounting principles. |
(c) | Does not include expenses of the underlying portfolios in which the Fund invests. |
(d) | Annualized. |
See Notes to Financial Statements.
36 | Visit our website at www.jennisondryden.com |
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 Trustees 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. |
TRUSTEES |
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 • Timothy J. Knierim, 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 • Peter Parrella, Assistant Treasurer |
MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
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INVESTMENT SUBADVISER | Quantitative Management Associates LLC | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
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DISTRIBUTOR | Prudential Investment Management Services LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
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CUSTODIAN | The Bank of New York | One Wall Street New York, NY 10286 | ||
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TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 9658 Providence, RI 02940 | ||
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INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 345 Park Avenue New York, NY 10154 | ||
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FUND COUNSEL | Willkie Farr & Gallagher LLP | 787 Seventh Avenue New York, NY 10019 |
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 TRUSTEES |
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Dryden US Equity Active Extension Fund, Prudential Investments, Attn: Board of Trustees, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Trustee 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 US Equity Active Extension Fund | ||||||||
Share Class | A | Z | ||||||
NASDAQ | DUEAX | DUEZX | ||||||
CUSIP | 476297858 | 476297866 | ||||||
MF200E2 IFS-A146558 Ed. 04/2008
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) JennisonDryden Portfolios
By (Signature and Title)* | /s/ Deborah A. Docs | |||
Deborah A. Docs | ||||
Secretary |
Date April 23, 2008
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 April 23, 2008
By (Signature and Title)* | /s/ Grace C. Torres | |||
Grace C. Torres | ||||
Treasurer and Principal Financial Officer |
Date April 23, 2008
* | Print the name and title of each signing officer under his or her signature. |