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: | 811-04930 | |
Exact name of registrant as specified in charter: | Dryden Municipal Bond Fund | |
Address of principal executive offices: | Gateway Center 3, | |
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Name and address of agent for service: | Jonathan D. Shain | |
Gateway Center 3, | ||
100 Mulberry Street, | ||
Newark, New Jersey 07102 | ||
Registrant’s telephone number, including area code: | 973-802-6469 | |
Date of fiscal year end: | 4/30/2005 | |
Date of reporting period: | 10/31/2004 |
Item 1 – Reports to Stockholders – [ INSERT REPORT ]
Dryden Municipal Bond Fund/
High Income Series & Insured Series
OCTOBER 31, 2004 | SEMIANNUAL REPORT |
FUND TYPE
Municipal Bond
OBJECTIVE
High Income Series: Maximum amount of income that is eligible for exclusion from federal income taxes.
Insured Series: Maximum amount of income that is eligible for exclusion from federal income taxes, consistent with the preservation of capital.
This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.
The views expressed in this report and information about the Series’ portfolio holdings are for the period covered by this report and are subject to change thereafter.
JennisonDryden is a registered trademark of The Prudential Insurance Company of America.
Dear Shareholder,
December 15, 2004
We hope that you find the semiannual report for the Dryden Municipal Bond Fund/High Income Series & Insured Series informative and useful. As a JennisonDryden mutual fund shareholder, you may be thinking where you can find additional growth opportunities. You could invest in last year’s top-performing asset class and hope that history repeats itself or you could stay in cash while waiting for the “right moment” to invest.
We believe it is wise to take advantage of developing domestic and global investment opportunities through a diversified portfolio of stock and bond mutual funds. A diversified asset allocation offers two advantages. It helps you manage downside risk by not being overly exposed to any particular asset class, plus it gives you a better opportunity of having at least some of your assets in the right place at the right time. Your financial professional can help you create a diversified investment plan that may include mutual funds that cover all the basic asset classes and is reflective of your personal investor profile and tolerance for risk.
JennisonDryden mutual funds give you a wide range of choices that can help you make progress toward your financial goals. Our funds offer the experience, resources, and professional discipline of three leading asset managers. They are recognized and respected in the institutional market and by discerning investors for excellence in their respective strategies. JennisonDryden equity funds are advised by Jennison Associates LLC and/or Quantitative Management Associates LLC (QMA). Prudential Investment Management, Inc. (PIM) advises the JennisonDryden fixed income and money market funds. Jennison Associates, QMA, and PIM are registered investment advisers and Prudential Financial companies.
Thank you for choosing JennisonDryden mutual funds.
Sincerely,
Judy A. Rice, President
Dryden Municipal Bond Fund/High Income Series & Insured Series
Dryden Municipal Bond Fund | 1 |
Your Series’ Performance
High Income Series
Series objective
The investment objective of the Dryden Municipal Bond Fund/High Income Series (the Series) is to seek the maximum amount of income that is eligible for exclusion from federal income taxes. There can be no assurance that the Series 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 current to the most recent month-end by visiting our website at www.jennisondryden.com or by calling (800) 225-1852. The maximum initial sales charge is 4.00% (Class A shares).
Cumulative Total Returns1 as of 10/31/04 | |||||||||||||
Six Months | One Year | Five Years | Ten Years | Since Inception2 | |||||||||
Class A | 4.83 | % | 6.94 | % | 28.83 | % | 77.36% (76.67) | 143.89% (142.22) | |||||
Class B | 4.70 | 6.75 | 27.34 | 72.06 (71.38) | 198.80 (191.20) | ||||||||
Class C | 4.57 | 6.49 | 25.76 | 67.85 (67.19) | 63.98 (63.34) | ||||||||
Class Z | 4.96 | 7.24 | 30.35 | N/A | 53.04 (52.74) | ||||||||
LB Muni Bond Index3 | 4.79 | 6.03 | 41.49 | 97.71 | *** | ||||||||
LB Non-Investment-Grade Muni Bond Index4, 5 | 5.09 | 9.86 | 36.17 | — | **** | ||||||||
Lipper HY Muni Debt Funds Avg.6 | 4.13 | 6.50 | 29.50 | 72.71 | ***** | ||||||||
Average Annual Total Returns1 as of 9/30/04 | |||||||||||||
One Year | Five Years | Ten Years | Since Inception2 | ||||||||||
Class A | 2.09 | % | 3.92 | % | 5.27% (5.23) | 5.91% (5.86) | |||||||
Class B | 1.06 | 4.35 | 5.37 (5.33) | 6.59 (6.42) | |||||||||
Class C | 4.80 | 4.25 | 5.11 (5.07) | 4.91 (4.87) | |||||||||
Class Z | 6.64 | 5.04 | N/A | 5.34 (5.31) | |||||||||
LB Muni Bond Index3 | 4.60 | 6.77 | 6.77 | *** | |||||||||
LB Non-Investment-Grade Muni Bond Index4, 5 | 10.43 | 5.72 | — | **** | |||||||||
Lipper HY Muni Debt Funds Avg.6 | 5.93 | 4.74 | 5.30 | ***** |
Distribution and Yields1 as of 10/31/04 | ||||||||||||
Total Distributions Paid for Six Months | 30-Day SEC Yield | Taxable Equivalent Yield7 at Tax Rates of | ||||||||||
33% | 35% | |||||||||||
Class A | $ | 0.26 | 4.35 | % | 6.49 | % | 6.69 | % | ||||
Class B | $ | 0.24 | 4.28 | 6.39 | 6.58 | |||||||
Class C | $ | 0.23 | 4.03 | 6.01 | 6.20 | |||||||
Class Z | $ | 0.27 | 4.79 | 7.15 | 7.37 |
2 | Visit our website at www.jennisondryden.com |
The cumulative total returns do not reflect the deduction of applicable sales charges. If reflected, the applicable sales charges would reduce the cumulative total returns performance quoted. Class A shares are subject to a maximum front-end sales charge of 4.00%. Under certain circumstances, Class A shares may be subject to a contingent deferred sales charge (CDSC) of 1%. Class B and Class C shares are subject to a maximum CDSC of 5% and 1% respectively. Class Z shares are not subject to a sales charge.
1Source: Prudential Investments LLC and Lipper Inc. The average annual total returns take into account applicable sales charges. During certain periods shown, fee waivers and/or expense reimbursements were in effect. Without such fee waivers and expense reimbursements, the returns for the classes would have been lower, as indicated in parentheses. Class A, Class B, and Class C shares are subject to an annual distribution and service (12b-1) fee of up to 0.30%, 0.50%, and 1.00% respectively. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class Z shares are not subject to a 12b-1 fee. The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on fund distributions or following the redemption of fund shares.
2Inception dates: Class A, 1/22/90; Class B, 9/17/87; Class C, 8/1/94; and Class Z, 9/16/96.
3The Lehman Brothers (LB) Municipal (Muni) Bond Index is an unmanaged index of over 39,000 long-term investment-grade municipal bonds. It gives a broad look at how long-term investment-grade municipal bonds have performed.
4The Lehman Brothers (LB) Non-Investment-Grade Municipal (Muni) Bond Index is an unmanaged index of non-rated or Ba1 below-rated municipal bonds. It gives a broad look at how non-investment-grade municipal bonds have performed. The bonds in this index must have an outstanding par value of at least $3 million and be issued as part of a transaction of at least $20 million. The bonds must also have a dated date after December 31, 1990, and must be at least one year from their maturity date.
5The inception date of the LB Non-Investment-Grade Muni Bond Index is October 1995.
6The Lipper High Yield (HY) Muni Debt Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper High Yield Muni Debt Funds category for the periods noted. Funds in the Lipper Average invest at least 50% of their assets in lower-rated municipal debt issues.
7Some investors may be subject to the federal alternative minimum tax and/or state and local taxes. Taxable equivalent yields reflect federal taxes only.
Investors cannot invest directly in an index. The returns for the Lehman Brothers Indexes 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.
***LB Muni Bond Index Closest Month-End to Inception cumulative total returns as of 10/31/04 are 175.95% for Class A, 250.17% for Class B, 92.01% for Class C, and 64.72% for Class Z. LB Muni Bond Index Closest Month-End to Inception average annual total returns as of 9/30/04 are 7.10% for Class A, 7.60% for Class B, 6.54% for Class C, and 6.32% for Class Z.
****LB Non-Investment-Grade Muni Bond Index Closest Month-End to Inception cumulative total return as of 10/31/04 is 63.52% for Class Z. LB Non-Investment-Grade Muni Bond Index Closest Month-End to Inception average annual total return as of 9/30/04 is 6.19% for Class Z.
*****Lipper Average Closest Month-End to Inception cumulative total returns as of 10/31/04 are 141.00% for Class A, 201.58% for Class B, 67.98% for Class C, and 46.33% for Class Z. Lipper Average Closest Month-End to Inception average annual total returns as of 9/30/04 are 6.08% for Class A, 6.62% for Class B, 5.08% for Class C, and 4.71% for Class Z.
Dryden Municipal Bond Fund | 3 |
Your Series’ Performance (continued)
Five Largest Issues expressed as a percentage of net assets as of 10/31/04 | |||
Memphis (TN) Ctr. City Rev. Fin. Corp., 6.50%, 09/01/08 | 3.9 | % | |
New Jersey (NJ) St. Econ. Dev. Auth. Rev., 9.25%, 01/01/25 | 1.8 | ||
New York (NY) City Trans. Fin. Auth. Rev., 5.50%, 11/01/20 | 1.5 | ||
City of Cedar Rapids (IA) Rev., 9.00%, 07/01/18 | 1.4 | ||
Foothill/Eastern (CA) Trans. Corr. Agcy., Zero Coupon, 01/15/28 | 1.4 |
Issues are subject to change.
Credit Quality expressed as a percentage of net assets as of 10/31/04 | |||
Aaa | 27.2 | % | |
Aa | 5.4 | ||
A | 8.3 | ||
Baa | 17.1 | ||
Ba | 7.4 | ||
B | 2.8 | ||
Caa | 1.8 | ||
NR | 29.3 | ||
Total investments | 99.3 | ||
Other assets in excess of liabilities | 0.7 | ||
Net Assets | 100.0 | % | |
Source: Moody’s rating, defaulting to S&P when not rated.
Credit quality is subject to change.
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Your Series’ Performance
Insured Series
Series objective
The investment objective of the Dryden Municipal Bond Fund/Insured Series (the Series) is to seek the maximum amount of income that is eligible for exclusion from federal income taxes, consistent with the preservation of capital. There can be no assurance that the Series 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 current to the most recent month-end by visiting our website at www.jennisondryden.com or by calling (800) 225-1852. The maximum initial sales charge is 4.00% (Class A shares).
Cumulative Total Returns1 as of 10/31/04 | |||||||||||||||
Six Months | One Year | Five Years | Ten Years | Since Inception2 | |||||||||||
Class A | 4.56 | % | 4.26 | % | 37.25 | % | 83.87 | % | 149.97 | % | |||||
Class B | 4.52 | 4.07 | 35.64 | 78.33 | 197.99 | ||||||||||
Class C | 4.39 | 3.81 | 33.98 | 73.98 | 68.47 | ||||||||||
Class Z | 4.70 | 4.55 | 38.87 | N/A | 58.15 | ||||||||||
Lehman Muni Bond Index3 | 4.79 | 6.03 | 41.49 | 97.71 | *** | ||||||||||
Lipper Insured Muni Debt Funds Avg.4 | 4.55 | 4.93 | 36.38 | 81.76 | **** | ||||||||||
Average Annual Total Returns1 as of 9/30/04 | |||||||||||||||
One Year | Five Years | Ten Years | Since Inception2 | ||||||||||||
Class A | –1.30 | % | 5.27 | % | 5.60 | % | 6.09 | % | |||||||
Class B | –2.29 | 5.71 | 5.71 | 6.57 | |||||||||||
Class C | 1.32 | 5.61 | 5.45 | 5.19 | |||||||||||
Class Z | 3.09 | 6.41 | N/A | 5.78 | |||||||||||
Lehman Muni Bond Index3 | 4.60 | 6.77 | 6.77 | *** | |||||||||||
Lipper Insured Muni Debt Funds Avg.4 | 3.41 | 5.92 | 5.84 | **** |
Distribution and Yields1 as of 10/31/04 | ||||||||||||
Total Distributions Paid for Six Months | 30-Day SEC Yield | Taxable Equivalent Yield5 at Tax Rates of | ||||||||||
33% | 35% | |||||||||||
Class A | $ | 0.21 | 2.56 | % | 3.82 | % | 3.94 | % | ||||
Class B | $ | 0.19 | 2.42 | 3.61 | 3.72 | |||||||
Class C | $ | 0.18 | 2.17 | 3.24 | 3.34 | |||||||
Class Z | $ | 0.22 | 2.92 | 4.36 | 4.49 |
Dryden Municipal Bond Fund | 5 |
Your Series’ Performance (continued)
The cumulative total returns do not reflect the deduction of applicable sales charges. If reflected, the applicable sales charges would reduce the cumulative total returns performance quoted. Class A shares are subject to a maximum front-end sales charge of 4.00%. Under certain circumstances, Class A shares may be subject to a contingent deferred sales charge (CDSC) of 1%. Class B and Class C shares are subject to a maximum CDSC of 5% and 1% respectively. Class Z shares are not subject to a sales charge.
1Source: Prudential Investments LLC and Lipper Inc. The average annual total returns take into account applicable sales charges. During certain periods shown, fee waivers and/or expense reimbursements were in effect. Without such fee waivers and expense reimbursements, the returns for the classes would have been lower. Class A, Class B, and Class C shares are subject to an annual distribution and service (12b-1) fee of up to 0.30%, 0.50%, and 1.00% respectively. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class Z shares are not subject to a 12b-1 fee. The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on fund distributions or following the redemption of fund shares.
2Inception dates: Class A, 1/22/90; Class B, 9/17/87; Class C, 8/1/94; and Class Z, 9/16/96.
3The Lehman Brothers (Lehman) Municipal (Muni) Bond Index is an unmanaged index of over 39,000 long-term investment-grade municipal bonds. It gives a broad look at how long-term investment-grade municipal bonds have performed.
4The Lipper Insured Muni Debt Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper Insured Muni Debt Funds category for the periods noted. Funds in the Lipper Average invest primarily in municipal debt issues insured as to timely payment.
5Some investors may be subject to the federal alternative minimum tax and/or state and local taxes. Taxable equivalent yields reflect federal taxes only.
Investors cannot invest directly in an index. The returns for the LB Muni Bond 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.
***Lehman Muni Bond Index Closest Month-End to Inception cumulative total returns as of 10/31/04 are 185.15% for Class A, N/A for Class B, 95.90% for Class C, and 67.58% for Class Z. Lehman Muni Bond Index Closest Month-End to Inception average annual total returns as of 9/30/04 are 7.34% for Class A, N/A for Class B, 6.74% for Class C, and 6.54% for Class Z.
****Lipper Average Closest Month-End to Inception cumulative total returns as of 10/31/04 are 148.32% for Class A, 216.86% for Class B, 75.53% for Class C, and 52.05% for Class Z. Lipper Average Closest Month-End to Inception average annual total returns as of 9/30/04 are 6.33% for Class A, 6.95% for Class B, 5.59% for Class C, and 5.26% for Class Z.
Five Largest Issues expressed as a percentage of net assets as of 10/31/04 | |||
Hawaii (HI) Dept. Budget & Fin., 6.20%, 11/01/29 | 2.8 | % | |
Metro. (NY) Trans. Auth. NY Svc. Contract, 5.50%, 07/01/23 | 2.5 | ||
Colorado (CO) Dept. Trans. Rev., 5.00%, 12/15/16 | 2.4 | ||
California (CA) St., 5.25%, 02/01/27 | 2.3 | ||
Los Angeles (CA) Unif. Sch. Dist. Cert. Part., 5.00%, 10/01/31 | 2.1 |
Issues are subject to change.
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Credit Quality expressed as a percentage of net assets as of 10/31/04 | |||
Aaa | 92.5 | % | |
Aa | 3.2 | ||
A | 3.0 | ||
Total investments | 98.7 | ||
Other assets in excess of liabilities | 1.3 | ||
Net Assets | 100.00 | % | |
Source: Moody’s rating, defaulting to S&P when not rated.
Credit quality is subject to change.
Dryden Municipal Bond Fund | 7 |
Fees and Expenses (Unaudited)
As a shareholder of the Series, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Series expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Series 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 May 1, 2004, at the beginning of the period, and held through the six-month period ended October 31, 2004.
Actual Expenses
The first line for each share class in the following table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number in the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period. The Series may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table. These fees apply to Individual Retirement Accounts (IRAs), 403(b) accounts, and Section 529 plan accounts. As of the close of the six months covered by the table, IRA fees included a setup fee of $5, a maintenance fee of up to $36 annually ($18 for the six-month period), and a termination fee of $10. 403(b) accounts and Section 529 plan accounts are each charged an annual $25 fiduciary maintenance fee ($12.50 for the six-month period). Some of the fees vary in amount, or are waived, based on your total account balance or the number of JennisonDryden or Strategic Partners funds, including the Series, that you own. You should consider the additional fees that were charged to your Series 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.
Hypothetical Example for Comparison Purposes
The second line for each share class in the following table provides information about hypothetical account values and hypothetical expenses based on the Series’ actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Series’ actual return. The hypothetical account values and expenses may not
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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 Series and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. The Series may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table. These fees apply to Individual Retirement Accounts (IRAs), 403(b) accounts, and Section 529 plan accounts. As of the close of the six months covered by the table, IRA fees included a setup fee of $5, a maintenance fee of up to $36 annually ($18 for the six-month period), and a termination fee of $10. 403(b) accounts and Section 529 plan accounts are each charged an annual $25 fiduciary maintenance fee ($12.50 for the six-month period). Some of the fees vary in amount, or are waived, based on your total account balance or the number of JennisonDryden or Strategic Partners funds, including the Series, that you own. You should consider the additional fees that were charged to your Series account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as such additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges (loads). Therefore the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.
Dryden Municipal Bond Fund/High Income Series | Beginning Account Value May 1, 2004 | Ending Account October 31, 2004 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Class A | Actual | $ | 1,000 | $ | 1,048 | 0.87 | % | $ | 4.49 | |||||
Hypothetical | $ | 1,000 | $ | 1,021 | 0.87 | % | $ | 4.43 | ||||||
Class B | Actual | $ | 1,000 | $ | 1,047 | 1.12 | % | $ | 5.78 | |||||
Hypothetical | $ | 1,000 | $ | 1,020 | 1.12 | % | $ | 5.70 | ||||||
Class C | Actual | $ | 1,000 | $ | 1,046 | 1.37 | % | $ | 7.07 | |||||
Hypothetical | $ | 1,000 | $ | 1,018 | 1.37 | % | $ | 6.97 | ||||||
Class Z | Actual | $ | 1,000 | $ | 1,050 | 0.62 | % | $ | 3.20 | |||||
Hypothetical | $ | 1,000 | $ | 1,022 | 0.62 | % | $ | 3.16 |
Dryden Municipal Bond Fund | 9 |
Fees and Expenses (continued)
Dryden Municipal Bond Fund/ Insured Series | Beginning Account Value May 1, 2004 | Ending Account October 31, 2004 | Annualized Expense Ratio Based on the Six-Month Period | Expenses Paid During the Six-Month Period* | ||||||||||
Class A | Actual | $ | 1,000 | $ | 1,046 | 0.90 | % | $ | 4.64 | |||||
Hypothetical | $ | 1,000 | $ | 1,021 | 0.90 | % | $ | 4.58 | ||||||
Class B | Actual | $ | 1,000 | $ | 1,045 | 1.15 | % | $ | 5.93 | |||||
Hypothetical | $ | 1,000 | $ | 1,019 | 1.15 | % | $ | 5.85 | ||||||
Class C | Actual | $ | 1,000 | $ | 1,044 | 1.40 | % | $ | 7.21 | |||||
Hypothetical | $ | 1,000 | $ | 1,018 | 1.40 | % | $ | 7.12 | ||||||
Class Z | Actual | $ | 1,000 | $ | 1,047 | 0.65 | % | $ | 3.35 | |||||
Hypothetical | $ | 1,000 | $ | 1,022 | 0.65 | % | $ | 3.31 |
* Series expenses 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 184 days in the six-month period ended October 31, 2004, and divided by the 365 days in the Series’ year ended October 31, 2004 (to reflect the six-month period).
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Portfolio of Investments
as of October 31, 2004 (Unaudited)
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||
LONG-TERM INVESTMENTS 99.2% | ||||||||||||
Alabama 0.3% | ||||||||||||
Camden Ind. Dev. Brd. Facs. Rev., Rfdg. Weyerhaeuser, Ser. A | BBB(b) | 6.125% | 12/01/24 | $ | 1,000 | $ | 1,078,280 | |||||
Ser. B, A.M.T. | BBB(b) | 6.375 | 12/01/24 | 1,000 | 1,081,180 | |||||||
2,159,460 | ||||||||||||
Alaska 0.5% | ||||||||||||
Northern Tobacco Secur. Corp., Asset Bkd. Bonds | Baa3 | 6.50 | 6/01/31 | 3,500 | 3,301,865 | |||||||
Arizona 1.1% | ||||||||||||
Coconino Cnty. Poll. Ctrl. | ||||||||||||
Corp. Rev. Tuscon Elec. Pwr., Navajo, Ser. A, | Ba3 | 7.125 | 10/01/32 | 5,000 | 5,231,150 | |||||||
Ser. B | Ba3 | 7.00 | 10/01/32 | 1,700 | 1,773,627 | |||||||
7,004,777 | ||||||||||||
Arkansas 0.2% | ||||||||||||
University Revs., Constr., UMAS Campus, Ser. B, M.B.I.A. | Aaa | 5.00 | 11/01/28 | 1,500 | 1,551,840 | |||||||
California 12.1% | ||||||||||||
Antelope Valley California Hlthcare. Dis. Rfdg., Ser. A, | Aaa | 5.20 | 1/01/17 | 1,005 | 1,092,877 | |||||||
California St., G.O. | Aaa | 5.25 | 2/01/27 | 4,905 | 5,201,115 | |||||||
California St. Pub. Wks. Brd. | ||||||||||||
Lease Rev., Dept. Mental Hlth., Coalinga, Ser. A | Baa1 | 5.50 | 6/01/19 | 2,000 | 2,235,220 | |||||||
Dept. Mental Hlth., Coalinga, Ser. A | Baa1 | 5.50 | 6/01/20 | 2,000 | 2,221,760 | |||||||
Dept. Mental Hlth., Coalinga, Ser. A | Baa1 | 5.50 | 6/01/22 | 2,000 | 2,196,780 | |||||||
California Statewide Cmntys. Dev. Auth. Rev., Kaiser Permanente, Ser. G | A(b) | 2.30 | 4/01/34 | 3,400 | 3,396,532 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 11 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||
Capistrano Uni. Sch. Dist. | ||||||||||||
Cmnty. Facs., Talega | NR | 6.00% | 9/01/33 | $ | 1,000 | $ | 1,027,500 | |||||
Central California Joint Pwr. Hlth. Fin. Auth., | Baa2 | 6.00 | 2/01/30 | 2,550 | 2,633,487 | |||||||
Foothill/Eastern Trans. | ||||||||||||
Corridor Agcy. Toll Rd. Rev., | Baa3 | Zero | 1/15/28 | 11,700 | 9,202,869 | |||||||
Golden St. Securitization | ||||||||||||
Corp. Tobacco Settlement Rev., Asset Bkd., Ser. B | Baa1 | 5.75 | 6/01/23 | 3,940 | 4,153,390 | |||||||
Asset Bkd., Ser. B | Baa1 | 5.50 | 6/01/43 | 3,500 | 3,688,265 | |||||||
La Quinta Fin. Auth. Local | ||||||||||||
Agcy. Rev., Ser. A, A.M.B.A.C. | Aaa | 5.25 | 9/01/24 | 3,500 | 3,787,630 | |||||||
Lincoln Impvt. Bond Act | ||||||||||||
1915, Pub. Fin. Auth., Twelve Bridges | NR | 6.20 | 9/02/25 | 3,565 | 3,770,700 | |||||||
Los Angeles Cmnty. Redev. | ||||||||||||
Agcy. Cmnty. Redev. Fin. Auth. Rev., Bunker Hill Proj., Ser. A, F.S.A. | Aaa | 5.00 | 12/01/22 | 2,500 | 2,665,125 | |||||||
Los Angeles Wtr. & Pwr. | ||||||||||||
Rev. Pwr. Sys., | ||||||||||||
Ser. B, F.S.A. | Aaa | 5.125 | 7/01/15 | 1,000 | 1,112,680 | |||||||
Ser. B, F.S.A. | Aaa | 5.125 | 7/01/16 | 1,000 | 1,107,190 | |||||||
Ser. B, F.S.A. | Aaa | 5.125 | 7/01/17 | 2,100 | 2,311,974 | |||||||
Ser. B, F.S.A. | Aaa | 5.125 | 7/01/18 | 1,555 | 1,702,321 | |||||||
Murrieta Cmnty. Facs. Dist. | ||||||||||||
Spl. Tax, No. 2, The Oaks Impt. Area, Ser. A | NR | 5.90 | 9/01/27 | 1,000 | 1,023,130 | |||||||
Orange Cnty. Cmnty. Loc. | ||||||||||||
Trans. Auth., Reg. Linked, S.A.V.R.S., R.I.B.S. | Aa2 | 6.20 | 2/14/11 | 7,000 | 8,144,430 | |||||||
Perris California Cmnty. | ||||||||||||
Facs. Dist., Spec. Tax, | NR | 6.25 | 9/01/23 | 3,000 | 3,099,840 | |||||||
Rancho Cordova Cmnty. | ||||||||||||
Spec. Tax No. 2003-1, Sunridge Anatolia | NR | 6.00 | 9/01/33 | 1,000 | 1,019,910 | |||||||
Spec. Tax No. 2003-1, Sunridge Anatolia | NR | 6.10 | 9/01/37 | 2,000 | 2,047,480 |
See Notes to Financial Statements.
12 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Roseville Joint Union H.S. | |||||||||||||
Dist., Ser. B, F.G.I.C. | Aaa | Zero | 8/01/11 | $ | 1,440 | $ | 1,129,694 | ||||||
Saugus Uni. Sch. Dist. Cmnty. Facs. | NR | 6.00% | 9/01/33 | 1,800 | 1,824,462 | ||||||||
Stockton Redev. Agcy. Rev., | |||||||||||||
Stockton Events Ctr., Arena Proj., F.G.I.C. | Aaa | 5.00 | 9/01/36 | 1,250 | 1,277,213 | ||||||||
University Revs., | |||||||||||||
Hosp. UCLA Med. Ctr., Ser. A, A.M.B.A.C. | Aaa | 5.50 | 5/15/23 | 1,330 | 1,469,424 | ||||||||
Res. Facs., Ser. E, A.M.B.A.C. | Aaa | 5.00 | 9/01/18 | 2,115 | 2,291,095 | ||||||||
Vallejo, Touro Univ., C.O.P. | Ba2 | 7.375 | 6/01/29 | 3,500 | 3,642,765 | ||||||||
80,476,858 | |||||||||||||
Colorado 2.8% | |||||||||||||
Black Hawk Bus. Impvt. Dist. | NR | 7.75 | 12/01/19 | 5,285 | (d) | 6,556,254 | |||||||
Colorado Springs Hosp. Rev. | A3 | 6.375 | 12/15/30 | 1,240 | (d) | 1,474,435 | |||||||
Colorado Springs Hosp. Rev., Unrfdg. | A3 | 6.375 | 12/15/30 | 1,260 | 1,357,625 | ||||||||
Denver Urban Ren. Auth. Tax, Inc., Rev. | NR | 7.75 | 9/01/16 | 4,000 | 4,223,480 | ||||||||
Lake Creek Affordable Hsg. | NR | 7.00 | 12/01/23 | 960 | 869,347 | ||||||||
Superior Metro. Dist. No. 1, | NR | 8.50 | 12/01/13 | 4,145 | (d) | 4,246,345 | |||||||
18,727,486 | |||||||||||||
Connecticut 0.9% | |||||||||||||
Connecticut St., 1060 R, G.O., | |||||||||||||
R.I.T.E.S. | AAA(b) | 8.721 | 11/15/09 | 5,000 | 5,769,400 | ||||||||
District of Columbia 0.5% | |||||||||||||
District of Columbia Rev., | |||||||||||||
Univ., George Washington | |||||||||||||
Univ., Ser. A, M.B.I.A. | Aaa | 5.125 | 9/15/31 | 3,000 | 3,083,430 | ||||||||
Florida 4.5% | |||||||||||||
Arbor Greene Cmnty. Dev. Dist., Spec. Assmt. Rev. | NR | 6.50 | 5/01/07 | 105 | 106,825 | ||||||||
Broward Cnty. Res. Recov. Rev., Rfdg. Wheelabrator, Ser. A | A3 | 5.50 | 12/01/08 | 4,000 | 4,405,160 | ||||||||
Escambia Cnty. Hlth. Fac. Rev., Hlthcare. Fac., A.M.B.A.C. | Aaa | 5.95 | 7/01/20 | 500 | 512,340 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 13 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||
Florida Hsg. Fin. Corp. Rev., Westchase Apts., Ser. B, A.M.T. | NR | 6.61% | 7/01/38 | $ | 3,895 | $ | 3,378,601 | |||||
Florida St. Corr. | ||||||||||||
Privatization Cmnty. Cert. Partner, | ||||||||||||
Ser. A, A.M.B.A.C. | Aaa | 5.00 | 8/01/17 | 1,660 | 1,813,932 | |||||||
Ser. B, C.O.P., A.M.B.A.C. | Aaa | 5.00 | 8/01/14 | 2,020 | 2,251,512 | |||||||
Hillsborough Cnty. Ind. Dev. | ||||||||||||
Auth. Rev., Lakeshore Villas Proj., Ser. A | NR | 6.75 | 7/01/29 | 4,000 | 3,608,760 | |||||||
North Springs Impvt. Dist. Wtr. Mgmt., Ser. B | NR | 8.30 | 5/01/24 | 1,550 | 1,584,255 | |||||||
Oakstead Cmnty. Dev. Dist., Cap. Impvt., Ser. B | NR | 6.50 | 5/01/07 | 585 | 589,417 | |||||||
Orlando Util. Cmnty. | Aa1 | 6.75 | 10/01/17 | 2,000 | 2,517,400 | |||||||
Palm Beach Cnty. Pub. Impvt. Rev., Convention Ctr. Proj., F.G.I.C. | Aaa | 5.00 | 11/01/30 | 3,500 | 3,844,190 | |||||||
Reunion West Cmnty. Dev. Dist. Spec. Assmt. | NR | 6.25 | 5/01/36 | 1,500 | 1,522,695 | |||||||
Stoneybrook West Cmnty. Dev. Dist. Spec. Assmt. Rev., Ser. B | NR | 6.45 | 5/01/10 | 785 | 799,585 | |||||||
Volusia Cnty. Sch. Brd. Sales Tax Rev., F.S.A. | Aaa | 5.00 | 10/01/10 | 2,500 | 2,780,150 | |||||||
29,714,822 | ||||||||||||
Georgia 0.6% | ||||||||||||
Atlanta Arpt. Facs. Rev., Rfdg., A.M.T., C.A.B.S., M.B.I.A. | Aaa | Zero | 1/01/10 | 1,650 | 1,265,930 | |||||||
Fulton Cnty. Residential Care Facs., Canterbury Court Proj., Ser. A | NR | 6.125 | 2/15/34 | 1,200 | 1,190,820 | |||||||
Henry Cnty. Wtr. & Swr. Auth. Rev., A.M.B.A.C. | Aaa | 6.15 | 2/01/20 | 1,000 | 1,238,990 | |||||||
3,695,740 | ||||||||||||
Hawaii 0.3% | ||||||||||||
Hawaii St., Ser. DD, G.O., M.B.I.A. | Aaa | 5.25 | 5/01/24 | 2,000 | 2,158,300 |
See Notes to Financial Statements.
14 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Illinois 9.1% | |||||||||||||
Cary Illinois Spec. Tax Spec. Svcs., | |||||||||||||
Area No. 1, Cambridge, Ser. A | NR | 7.625% | 3/01/30 | $ | 3,855 | $ | 4,187,802 | ||||||
Area No. 2, Foxford Hill | NR | 7.50 | 3/01/30 | 4,857 | 5,237,400 | ||||||||
Chicago Illinios Proj. & Rfdg., F.G.I.C. | Aaa | 5.25 | 1/01/28 | 4,375 | 4,572,969 | ||||||||
Gilberts Illinois Spec. Svcs. Area No. 9, Spec. Tax, Big Timber Proj. | NR | 7.75 | 3/01/27 | 5,000 | 5,451,950 | ||||||||
Illinois Edl. Facs. Auth. Student Hsg. Rev., Edl. Advnmt. Fdg. Univ. Ctr. Proj. | Baa2 | 6.25 | 5/01/30 | 2,000 | 2,092,520 | ||||||||
Illinois Fin. Auth. Rev., Northwestern Mem. Hosp., Ser. A | Aa2 | 5.25 | 8/15/34 | 5,000 | 5,131,350 | ||||||||
Illinois Hlth. Facs. Auth. | |||||||||||||
Rev., Lake Forest Hosp., Ser. A | A3 | 6.25 | 7/01/22 | 4,200 | 4,632,012 | ||||||||
Midwest Physician Grp. Ltd., Proj. | BB+(b) | 8.10 | 11/15/14 | 2,550 | (d) | 2,600,872 | |||||||
Proj. | BB+(b) | 8.125 | 11/15/19 | 3,285 | (d) | 3,359,537 | |||||||
Kane & De Kalb Cntys. Sch. | Aaa | Zero | 12/01/11 | 3,360 | 2,609,645 | ||||||||
McLean & Woodford Cntys. Cmnty. Unit Sch. Dist. No. 005, | Aaa | 5.625 | 12/01/17 | 4,535 | 5,156,567 | ||||||||
Metro. Pier & Expo. Auth. | |||||||||||||
Ser. A, C.A.B.S., M.B.I.A. | Aaa | Zero | 12/15/34 | 5,000 | 1,027,950 | ||||||||
Ser. A, M.B.I.A. | Aaa | 5.25 | 6/15/42 | 6,000 | 6,261,780 | ||||||||
Robbins Illinois Res. Recov. | |||||||||||||
Ser. A, A.M.T. | NR | 8.375 | 10/15/16 | 5,031 | (c) | 2,214 | |||||||
Ser. B, A.M.T. | NR | 8.375 | 10/15/16 | 1,969 | (c) | 866 | |||||||
Round Lake Rev. | NR | 6.70 | 3/01/33 | 1,000 | 1,040,740 | ||||||||
Schaumburg, Ser. B, G.O., F.G.I.C. | Aaa | 5.00 | 12/01/38 | 5,000 | 5,094,650 | ||||||||
Winnebago Cnty. Hsg. Auth. | NR | 8.125 | 1/01/11 | 2,439 | 2,445,258 | ||||||||
60,906,082 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 15 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Indiana 0.4% | |||||||||||||
Indiana Hlth. Fac. Fin. Auth. Hosp. Rev., Cmnty. Foundation Northwest Ind., Ser. A | BBB-(b) | 6.00% | 3/01/34 | $ | 3,000 | $ | 2,979,240 | ||||||
Iowa 3.0% | |||||||||||||
City of Cedar Rapids Rev. | |||||||||||||
Cottage Grove Place Proj. | AAA(b) | 9.00 | 7/01/18 | 8,780 | (d) | 9,358,075 | |||||||
Cottage Grove Place Proj. | AAA(b) | 9.00 | 7/01/25 | 4,435 | (d) | 4,733,919 | |||||||
Iowa St. Fin. Auth. | NR | 9.25 | 7/01/25 | 4,840 | 5,869,613 | ||||||||
19,961,607 | |||||||||||||
Louisiana 1.3% | |||||||||||||
Calcasieu Parish Inc., Ind. Dev. Brd. Rev., Rfdg. Olin Corp. Proj. | Baa3 | 6.625 | 2/01/16 | 3,500 | 3,731,035 | ||||||||
West Feliciana Parish Poll. Ctrl. Rev., Gulf St. Util. | Ba1 | 7.70 | 12/01/14 | 5,000 | 5,126,000 | ||||||||
8,857,035 | |||||||||||||
Maine 0.6% | |||||||||||||
Maine Hlth. & Higher Edl. Facs. Auth. Rev. Piper Shores, | |||||||||||||
Ser. A | NR | 7.50 | 1/01/19 | 1,000 | 1,080,700 | ||||||||
Ser. A | NR | 7.55 | 1/01/29 | 3,000 | 3,227,220 | ||||||||
4,307,920 | |||||||||||||
Maryland 2.0% | |||||||||||||
Anne Arundel Cnty. Spec. Oblig., Arundel Mills Proj. | AAA(b) | 7.10 | 7/01/29 | 3,000 | (d) | 3,623,070 | |||||||
Maryland St. Hlth. & Higher Edl. Facs. Auth. Rev. | A3 | 6.75 | 7/01/30 | 5,000 | 5,644,300 | ||||||||
Northeast Wste. Disp. Auth. Rev., | |||||||||||||
Sludge Corp. Facs. | NR | 7.25 | 7/01/07 | 1,527 | 1,622,071 | ||||||||
Sludge Corp. Facs., A.M.T. | NR | 8.50 | 7/01/07 | 2,070 | 2,266,567 | ||||||||
13,156,008 |
See Notes to Financial Statements.
16 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Massachusetts 2.8% | |||||||||||||
Massachusetts St., Cons. Ln., | Aa2 | 5.25% | 11/01/30 | $ | 1,495 | (d) | $ | 1,681,501 | |||||
Massachusetts St. Coll. Bldg., Proj. & Rfdg. Bonds, Ser. A | Aa2 | 7.50 | 5/01/14 | 1,750 | 2,267,108 | ||||||||
Massachusetts St. Dev. Fin. Agcy. Rev., Hlthcare. Fac., Alliance, Ser. A | NR | 7.10 | 7/01/32 | 4,055 | 3,944,542 | ||||||||
Massachusetts St. Hlth. & Edl. Facs. Auth. Rev. Caritas Christi Oblig. Group, Rfdg., | |||||||||||||
Ser. A | Baa3 | 5.75 | 7/01/28 | 2,000 | 2,006,500 | ||||||||
Ser. B | Baa3 | 6.75 | 7/01/16 | 3,595 | 4,014,896 | ||||||||
Massachusetts St. Wtr. Poll. Abatement Trust, Pool Proj., Ser. 9 | Aaa | 5.25 | 8/01/33 | 2,500 | 2,630,575 | ||||||||
Nantucket, | |||||||||||||
G.O., M.B.I.A. | Aaa | 3.375 | 10/01/15 | 1,205 | 1,179,068 | ||||||||
G.O., M.B.I.A. | Aaa | 3.50 | 10/01/16 | 1,200 | 1,175,868 | ||||||||
18,900,058 | |||||||||||||
Michigan 1.1% | |||||||||||||
Kalamazoo Michigan Hosp. Fin. Auth. Hosp. Fac. Rev., E.T.M. | Aaa | 8.508(f) | 6/01/11 | 2,000 | 2,089,080 | ||||||||
Michigan St. Hosp. Fin. Auth. Rev., | |||||||||||||
Pontiac Osteopathic, Ser. A | Baa3 | 6.00 | 2/01/14 | 3,045 | 3,046,858 | ||||||||
Rfdg., Detroit Med. Ctr., Ser. B | Baa3 | 5.50 | 8/15/23 | 2,630 | 2,166,015 | ||||||||
Michigan St. Strategic Fd. Res. Recov. Ltd. Oblig. Rev. Central Wayne Engy. Rec., | |||||||||||||
Ser. A, A.M.T. | NR | 6.90 | 7/01/19 | 1,500 | (c)(h) | 22,500 | |||||||
Ser. A, A.M.T. | NR | 7.00 | 7/01/27 | 6,500 | (c)(h) | 97,500 | |||||||
7,421,953 | |||||||||||||
Minnesota 0.4% | |||||||||||||
St. Paul Hsg. & Redev. Auth. Hosp. Rev., Hltheast Proj., | Ba2 | 6.625 | 11/01/17 | 2,500 | 2,525,850 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 17 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Nevada 2.9% | |||||||||||||
Clark Cnty. Impvt. Dist., | NR | 7.50% | 12/01/19 | $ | 4,785 | $ | 5,239,049 | ||||||
Spec. Impvt. Dist. | NR | 6.10 | 8/01/18 | 2,000 | 2,062,480 | ||||||||
Clark Cnty. Ind. Dev. Rev., | |||||||||||||
Nevada Pwr. Co. Proj., | B-(b) | 5.60 | 10/01/30 | 2,500 | 2,366,050 | ||||||||
Rfdg., Nevada Pwr. Co. Proj., Ser. C | B-(b) | 5.50 | 10/01/30 | 4,500 | 4,319,865 | ||||||||
North Las Vegas Local Impvt., Spec. Impvt. Dist. No. 60 Aliante | NR | 5.60 | 12/01/12 | 1,525 | 1,571,329 | ||||||||
Spec. Impvt. Dist. No. 60 Aliante | NR | 6.40 | 12/01/22 | 1,250 | 1,271,050 | ||||||||
Washoe Cnty. Wtr. Fac. Rev., Sierra Pac. Pwr. Co., A.M.T. | Baa2 | 5.00 | 3/01/36 | 2,500 | 2,545,850 | ||||||||
19,375,673 | |||||||||||||
New Hampshire 0.7% | |||||||||||||
New Hampshire Higher | NR | 7.875 | 12/01/22 | 4,790 | 4,894,566 | ||||||||
New Jersey 9.4% | |||||||||||||
Camden Cnty. Auth. Rev., Hlthcare. Redev. Cooper Proj. | Baa3 | 6.00 | 2/15/27 | 2,250 | 2,311,223 | ||||||||
Casino Reinvestment Dev. Auth. Hotel Room Fee Rev., A.M.B.A.C. | Aaa | 5.25 | 1/01/23 | 2,100 | 2,302,020 | ||||||||
New Jersey Econ. Dev. Auth. Rev., | |||||||||||||
Cigarette Tax | Baa2 | 5.625 | 6/15/19 | 1,250 | 1,318,462 | ||||||||
Cigarette Tax | Baa2 | 5.75 | 6/15/34 | 750 | 769,853 | ||||||||
Continental Airlines, Inc. Proj., A.M.T. | Caa2 | 6.25 | 9/15/29 | 2,500 | 1,810,600 | ||||||||
Kapkowski Rd., Ser. A | Aaa | 6.375 | 4/01/31 | 7,000 | (d) | 8,649,690 | |||||||
Kapkowski Rd., Ser. A, C.A.B.S., E.T.M. | Aaa | Zero | 4/01/12 | 1,115 | 860,590 | ||||||||
Rfdg. First Mtge. Franciscan Oaks Proj. | NR | 5.70 | 10/01/17 | 165 | 159,621 |
See Notes to Financial Statements.
18 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
New Jersey Hlthcare. Facs. Fin. Auth. Rev., | |||||||||||||
Cherry Hill Proj. | NR | 8.00% | 7/01/27 | $ | 5,000 | $ | 5,137,650 | ||||||
Raritan Bay Med. Ctr. | NR | 7.25 | 7/01/27 | 4,000 | 4,190,400 | ||||||||
St. Peters Univ. Hosp., Ser. A | Baa1 | 6.875 | 7/01/30 | 2,250 | 2,482,178 | ||||||||
New Jersey St. Econ. Dev. Auth. Rev., First Mtge. Fellowship Vlge. Proj., Ser. A | Aaa | 9.25 | 1/01/25 | 11,500 | (d) | 11,874,440 | |||||||
New Jersey St. Edl. Facs. Auth. Rev., Felician Coll. of Lodi, Ser. D | NR | 7.375 | 11/01/22 | 3,700 | 3,734,484 | ||||||||
Newark Hsg. Auth., Newark Marine Terminal, M.B.I.A. | Aaa | 5.00 | 1/01/34 | 5,705 | 5,865,253 | ||||||||
Tobacco Settlement Fin. Corp., | |||||||||||||
Asset Bkd. | Baa3 | 6.25 | 6/01/43 | 7,250 | 6,544,865 | ||||||||
Asset Bkd. | Baa3 | 6.125 | 6/01/42 | 5,000 | 4,433,600 | ||||||||
62,444,929 | |||||||||||||
New Mexico 0.4% | |||||||||||||
New Mexico Mtge. Fin. Auth., Sngl. Fam. Mtge., Ser. E, A.M.T., G.N.M.A., F.N.M.A., F.H.L.M.C. | AAA(b) | 3.50 | 7/01/05 | 2,500 | 2,686,725 | ||||||||
New York 8.0% | |||||||||||||
Brookhaven New York Ind. Dev. Agcy. Civic Facs. Rev., Mem. Hosp. Med. Ctr., Inc., Ser. A | NR | 8.25 | 11/15/30 | 4,000 | (e) | 4,198,800 | |||||||
Metro. Trans. Auth. Rev., Ser. A, A.M.B.A.C. | Aaa | 5.50 | 11/15/18 | 4,045 | 4,617,084 | ||||||||
Metro. Trans. Auth. Svc. Contract, Ser. B, M.B.I.A. | Aaa | 5.50 | 7/01/19 | 3,050 | 3,459,280 | ||||||||
New York City Transitional Fin. Auth. Rev., Future Tax Sec’d., | |||||||||||||
Ser. C | Aa2 | 5.50 | 2/15/16 | 2,500 | 2,781,850 | ||||||||
Ser. C | Aa2 | 5.50 | 11/01/20 | 9,000 | 10,021,230 | ||||||||
New York St. Engy. Res. & Dev. Auth. Poll. Ctrl. Rev., Cent. Hudson Gas & Elec., Ser. A, A.M.T. | Aaa | 3.00 | 12/01/28 | 3,300 | 3,305,247 | ||||||||
New York St. Environ. Facs. Rev. Corp., Revolving Funds, Ser. B | Aaa | 5.00 | 6/15/27 | 780 | 803,384 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 19 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Suffolk Cnty. Ind. Dev. Agcy. Civic Facs. Rev., South Hampton Hosp. Assoc., Ser. B | NR | 7.625% | 1/01/30 | $ | 5,000 | $ | 5,069,000 | ||||||
Tobacco Settlement Fin. Corp., Asset Bkd., | |||||||||||||
Ser. A-1 | A2 | 5.50 | 6/01/14 | 8,000 | 8,722,560 | ||||||||
Ser. C-1 | A2 | 5.50 | 6/01/14 | 3,500 | 3,820,635 | ||||||||
Ser. C-1 | A2 | 5.50 | 6/01/15 | 6,000 | 6,594,600 | ||||||||
53,393,670 | |||||||||||||
North Carolina 0.3% | |||||||||||||
North Carolina Mun. Pwr. Agcy. Pwr. Sys. Rev., Rfdg., Ser. D | Baa3 | 5.125 | 1/01/26 | 2,000 | 2,023,160 | ||||||||
North Dakota 0.9% | |||||||||||||
Ward Cnty. Hlthcare. Facs. Rev., Rfdg. Trinity Oblig., | |||||||||||||
Group A | BBB+(b) | 6.25 | 7/01/26 | 4,110 | 4,230,834 | ||||||||
Group B | BBB+(b) | 6.25 | 7/01/21 | 2,000 | 2,070,020 | ||||||||
6,300,854 | |||||||||||||
Ohio 0.7% | |||||||||||||
Cuyahoga Cnty. Hosp. Facs. Rev., Canton, Inc. Proj. | Baa2 | 7.50 | 1/01/30 | 3,000 | 3,321,510 | ||||||||
Ohio St. Solid Wste. Rev., | |||||||||||||
CSC Ltd. Proj., A.M.T. | NR | 8.50 | 8/01/22 | 7,000 | (c) | 0 | |||||||
Rep. Eng. Steels, Inc., A.M.T. | NR | 9.00 | 6/01/21 | 2,250 | (c) | 225 | |||||||
Richland Cnty. Hosp. Facs. Rev., Rfdg. Medcentral Hlth. Sys., Ser. A | A-(b) | 6.125 | 11/15/16 | 1,000 | 1,092,280 | ||||||||
4,414,015 | |||||||||||||
Pennsylvania 3.5% | |||||||||||||
Allegheny Cnty. Hosp. Dev. Auth. Rev. Hlth. Sys., | |||||||||||||
Ser. B | B2 | 9.25 | 11/15/15 | 1,000 | 1,151,910 | ||||||||
Ser. B | B2 | 9.25 | 11/15/22 | 1,825 | 2,102,236 | ||||||||
Allentown Area Hosp. Auth. Rev., Sacred Heart Hosp. of Allentown, Ser. B | Baa3 | 6.75 | 11/15/15 | 2,900 | 2,933,002 |
See Notes to Financial Statements.
20 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Cumberland Cnty. Mun. Auth. Ret. Cmnty. Rev., Wesley Affiliated Svcs., Ser. A | NR | 7.25% | 1/01/35 | $ | 4,000 | $ | 4,168,160 | ||||||
Lancaster Cnty. Hosp. Auth. Rev., Gen. Hosp. Proj. | A-(b) | 5.50 | 3/15/26 | 780 | 801,333 | ||||||||
Langhorne Manor Boro. Higher Ed. & Hlth. Auth. Rev., Hosp. Lower Bucks Hosp. | B2 | 7.35 | 7/01/22 | 5,650 | 5,566,889 | ||||||||
Philadelphia Hosps. & Higher Ed. Facs. Auth. Rev., | |||||||||||||
Grad. Hlth. Sys. | Ca | 7.00 | 7/01/05 | 1,651 | (c) | 16 | |||||||
Grad. Hlth. Sys., Ser. A | Ca | 6.25 | 7/01/13 | 2,015 | (c) | 20 | |||||||
Grad. Hlth. Sys. | Ca | 7.25 | 7/01/18 | 2,269 | (c) | 23 | |||||||
Somerset Cnty. Hosp. Auth. Rev., | |||||||||||||
Hlthcare. First Mtge. | NR | 8.40 | 6/01/09 | 1,235 | (c) | 794,772 | |||||||
Hlthcare. First Mtge. | NR | 8.50 | 6/01/24 | 8,805 | (c) | 5,557,980 | |||||||
23,076,341 | |||||||||||||
Puerto Rico 0.4% | |||||||||||||
Puerto Rico Comnwlth., Pub. Impvt., G.O., Ser. A | Baa1 | 5.00 | 7/01/34 | 2,500 | 2,541,075 | ||||||||
South Carolina 0.8% | |||||||||||||
South Carolina Jobs Econ. | Baa2 | 6.875 | 8/01/27 | 5,000 | 5,534,000 | ||||||||
South Dakota 0.7% | |||||||||||||
South Dakota Econ. Dev. Fin. Auth., Dakota Park, A.M.T. | NR | 10.25 | 1/01/19 | 4,355 | 4,406,955 | ||||||||
Tennessee 6.8% | |||||||||||||
Bradley Cnty. Ind. Dev. Brd., Rfdg. Olin Corp. Proj., Ser. C | Baa3 | 6.625 | 11/01/17 | 2,000 | 2,151,380 | ||||||||
Johnson City Hlth. & Edl. Facs. Brd. Hosp. Rev., Rfdg. First Mtge., Ser. A, M.B.I.A. | Aaa | 6.75 | 7/01/17 | 2,000 | 2,519,620 | ||||||||
Memphis Ctr. City Rev., Fin. Corp., Ser. B | NR | 6.50 | 9/01/28 | 26,000 | 26,167,960 | ||||||||
Rutherford Cnty. Hlth. & Edl. Facs. Brd., First Mtge. Rev. | NR | 9.50 | 12/01/19 | 6,300 | 6,434,505 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 21 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Shelby Cnty. Hlth. Edl. & Hsg. Fac. Brd. Hosp. Rev., | |||||||||||||
Methodist Hlthcare. | Baa1 | 6.50% | 9/01/26 | $ | 2,195 | $ | 2,677,746 | ||||||
Methodist Hlthcare., E.T.M. | Baa1 | 6.50 | 9/01/26 | 1,305 | (d) | 1,579,259 | |||||||
Sullivan Cnty. Hlth. Ed. & Hsg. Facs. Brd. Rev., Wellmont | |||||||||||||
Hlth. Sys. Proj. | BBB+(b) | 6.25 | 9/01/32 | 3,500 | 3,640,000 | ||||||||
45,170,470 | |||||||||||||
Texas 9.1% | |||||||||||||
Alliance Arpt. Auth., Inc. Spec. Facs. Rev., American Airlines, Inc. Proj., A.M.T. | Caa2 | 7.50 | 12/01/29 | 6,000 | 3,839,940 | ||||||||
Austin Hsg. Fin. Corp. Multi-Fam. Hsg. Rev., Stony Creek, Ser. A | Ba2 | 7.75 | 11/01/29 | 9,345 | 9,183,051 | ||||||||
Brazos River Auth. Poll. Ctrl. Rev., TXU Energy Co. LLC Proj., | |||||||||||||
Ser. C, A.M.T. | Baa2 | 6.75 | 10/01/38 | 1,255 | 1,339,035 | ||||||||
Ser. D | Baa2 | 5.40 | 10/01/29 | 1,000 | 1,057,400 | ||||||||
Dallas-Fort Worth Int’l. Arpt. Fac. Impvt. Corp. Rev., | |||||||||||||
American Airlines, Inc. | Caa2 | 6.00 | 11/01/14 | 3,050 | 1,874,865 | ||||||||
American Airlines, Inc. | Caa2 | 6.375 | 5/01/35 | 2,000 | 1,110,360 | ||||||||
American Airlines, Ser. C | Caa2 | 6.15 | 11/01/07 | 3,950 | 3,430,417 | ||||||||
Decatur Hosp. Auth. Rev., Wise Reg. Hlth. Sys., Ser. A | Ba2 | 7.125 | 9/01/34 | 4,000 | 4,069,000 | ||||||||
Harris Cnty., Toll Rd., | Aaa | 5.00 | 8/15/16 | 2,500 | 2,758,375 | ||||||||
Houston Hlth. Facs. Dev. Corp. Ret. Fac. Rev., Buckingham Sr. Living Cmnty., Ser. A | NR | 7.125 | 2/15/34 | 1,250 | 1,293,950 | ||||||||
Houston Util. Sys. Rev., Ref., Comb., First Lien, Ser. A, F.S.A. | Aaa | 5.25 | 5/15/21 | 7,000 | 7,647,780 | ||||||||
Katy Texas Dev. Auth. Rev., Tax Increment Contract, Ser. B | NR | 6.00 | 6/01/18 | 4,000 | 4,207,160 | ||||||||
Lower Colo River Auth., Rfdg., Trans. Svcs. Corp. Proj., Ser. C | Aaa | 5.25 | 5/15/24 | 4,515 | 4,822,246 | ||||||||
Matagorda Cnty. Nav. Dist. | Baa2 | 2.35 | 5/01/30 | 2,500 | 2,483,375 |
See Notes to Financial Statements.
22 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Matagorda Cnty. Nav. Dist. No. 1 Rev., Coll. Centerpoint Engy. Proj. | Baa2 | 5.60% | 3/01/27 | $ | 2,000 | $ | 2,057,880 | ||||||
North Central Texas Hlth. Fac. Dev. Corp. Rev., Ret. Fac. Sr. Hsg., Ser. A | NR | 7.50 | 11/15/29 | 5,000 | 5,204,150 | ||||||||
Sabine River Auth. Poll. Ctl. Rev., TXU Energy Co. LLC Proj., Ser. B | Baa2 | 6.15 | 8/01/22 | 1,000 | 1,083,430 | ||||||||
San Antonio Elec. & Gas Rev., Rfdg., Ser. A | Aa1 | 5.00 | 2/01/18 | 3,000 | 3,219,750 | ||||||||
Texas Mun. Pwr. Agcy. Rev., M.B.I.A., E.T.M. | Aaa | Zero | 9/01/15 | 50 | 32,035 | ||||||||
60,714,199 | |||||||||||||
Utah | |||||||||||||
Tooele Cnty. Poll. Ctrl. Rev., Rfdg. Laidlaw Environ., Ser. A, A.M.T. | NR | 7.55 | 7/01/27 | 4,000 | (c) | 172,000 | |||||||
Virginia 3.5% | |||||||||||||
Chesterfield Cnty. Ind. Dev. Auth. Poll. Ctrl. Rev., Virginia Elec. & Pwr., Ser. A | A3 | 5.875 | 6/01/17 | 2,000 | 2,213,260 | ||||||||
Gloucester Cnty. Ind. Dev. Auth. Solid Wste. Disp. Rev., Wste. Mgmt. Svcs., Ser. A Rmkt. 5/3/04, A.M.T. | BBB(b) | 5.125 | 9/01/38 | 2,700 | 2,857,167 | ||||||||
Norfolk Redev. & Hsg. Auth., Multi-Fam. Rental Hsg. Facs. Rev., A.M.T. | NR | 8.00 | 9/01/26 | 5,775 | 5,848,920 | ||||||||
Pocahontas Pkwy. Assoc. Toll Rd. Rev., C.A.B.S., | |||||||||||||
Ser. B | Ba2 | Zero | 8/15/16 | 7,000 | 3,181,080 | ||||||||
Ser. C | B1 | Zero | 8/15/16 | 3,300 | 971,652 | ||||||||
Ser. C | B1 | Zero | 8/15/32 | 6,200 | 657,200 | ||||||||
Ser. C | B1 | Zero | 8/15/33 | 6,200 | 606,174 | ||||||||
Ser. C | B1 | Zero | 8/15/34 | 6,200 | 559,178 | ||||||||
Ser. C | B1 | Zero | 8/15/35 | 5,800 | 482,502 | ||||||||
Roanoke Cnty. Ind. Dev. Auth. Residential Care Fac. Rev., Ser. A | NR | 4.40 | 7/01/08 | 4,000 | 4,013,240 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 23 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Sussex Cnty. Ind. Dev. Auth. Solid Wste. Disp. Rev., | |||||||||||||
Atlantic Wste., Ser. A, Rmkt. 5/3/04, A.M.T. | BBB(b) | 5.125% | 6/01/28 | $ | 1,600 | $ | 1,693,136 | ||||||
23,083,509 | |||||||||||||
Washington 2.3% | |||||||||||||
Bellevue Conv. Ctr. Auth., King City, Oblig. Rev., M.B.I.A. | Aaa | Zero | 2/01/10 | 870 | 728,242 | ||||||||
Energy Northwest Elec. Rev., Columbia Generating, | Aaa | 6.00 | 7/01/18 | 5,050 | 5,892,744 | ||||||||
Proj. No. 1, Ser. B, M.B.I.A. | Aaa | 6.00 | 7/01/17 | 4,300 | 5,017,584 | ||||||||
Port Seattle Spec. Facs. Rev., Northwest Airlines Proj., A.M.T. | NR | 7.125 | 4/01/20 | 600 | 518,256 | ||||||||
Tobacco Settlement Auth. Tobacco Settlement Rev., Asset Bkd. | Baa3 | 6.50 | 6/01/26 | 2,640 | 2,630,707 | ||||||||
Washington St. Pub. Pwr. Sup. Sys. Rev., Nuclear Proj. No.1, Ser. B, E.T.M. | Aaa | 7.25 | 7/01/09 | 760 | 865,488 | ||||||||
15,653,021 | |||||||||||||
West Virginia 1.3% | |||||||||||||
West Virginia St. Hosp. Fin. Auth. Hosp. Rev., Oak Hill Hosp., Ser. B | A2 | 6.75 | 9/01/30 | 7,000 | 8,464,470 | ||||||||
Wisconsin 2.5% | |||||||||||||
Badger Tobacco Asset Secur. Corp., Asset Bkd. | Baa3 | 6.125 | 6/01/27 | 3,000 | 2,908,890 | ||||||||
Manitowoc Elec. Rev., Power Sys., F.G.I.C. | Aaa | 5.25 | 10/01/34 | 5,000 | 5,256,850 | ||||||||
Oconto Falls Cmnty. Dev. Auth. Dev. Rev., A.M.T. | NR | 8.125 | 12/01/22 | 1,395 | (h) | 1,071,137 | |||||||
Oconto Falls Tissue, Inc. Proj., A.M.T. | NR | 7.75 | 12/01/22 | 8,000 | (h) | 5,953,520 | |||||||
Wisconsin St. Hlth. & Edl. Fac. Auth. Rev., Beaver Dam Cmnty. Hosp. Inc., Ser A | NR | 6.75 | 8/15/34 | 1,250 | 1,259,975 | ||||||||
16,450,372 |
See Notes to Financial Statements.
24 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Trust Territories 0.5% | |||||||||||||
Northern Mariana Islands Comnwlth., Ser. A, G.O. | Ba3 | 6.75% | 10/01/33 | $ | 3,000 | $ | 3,088,410 | ||||||
Total long-term investments (cost $669,108,207) | 660,548,145 | ||||||||||||
SHORT-TERM INVESTMENT 0.1% | |||||||||||||
Delaware | |||||||||||||
Delaware St. Econ. Dev. Auth. Rev., Delmarva Pwr. & Lt. Co. Proj., A.M.T., F.R.D.D. | VMIG2 | 2.10 | 11/01/04 | 500 | (g) | 500,000 | |||||||
Contracts | |||||||||||||
OUTSTANDING OPTIONS PURCHASED(i) | |||||||||||||
United States Treasury Bonds Futures@109 | 11/26/04 | 137 | 12,844 | ||||||||||
Total Investments 99.3% | 661,060,989 | ||||||||||||
Other assets in excess of liabilities 0.7% | 4,466,829 | ||||||||||||
Net Assets 100.0% | $ | 665,527,818 | |||||||||||
(a) | The following abbreviations are used in portfolio descriptions: |
A.M.B.A.C.—American Municipal Bond Assurance Corporation.
A.M.T.—Alternative Minimum Tax.
C.A.B.S.—Capital Appreciation Bonds.
C.O.P.—Certificates of Participation.
E.T.M.—Escrowed to Maturity.
F.G.I.C.—Financial Guaranty Insurance Company.
F.H.L.M.C.—Federal Home Loan Mortgage Corporation.
F.N.M.A.—Federal National Mortgage Association.
F.R.D.D.—Floating Rate Daily Demand Note(g).
F.S.A.—Financial Security Assurance.
G.N.M.A.—Government National Mortgage Association.
G.O.—General Obligation.
LLC—Limited Liability Company.
M.B.I.A.—Municipal Bond Insurance Corporation.
R.I.B.S.—Residential Interest Bonds.
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 25 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
R.I.T.E.S—Residual Interest Tax Exempt Securities Receipts.
S.A.V.R.S.—Select Auction Variable Rate Securities.
(b) | Standard & Poor’s rating. |
(c) | Represents issuer in default of interest payments; non-income producing security. |
(d) | Prerefunded issues are secured by escrowed cash and/or direct U.S. government guaranteed obligations. |
(e) | All or partial principal amount segregated as initial margin on financial futures contracts. |
(f) | Inverse floating rate bond. The coupon is inversely indexed to a floating rate. The rate shown is the rate at period end. |
(g) | The maturity date shown is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. |
(h) | Fair valued security—value is determined by the Board of Trustees. |
(i) | Non-income producing security. |
NR—Not Rated by Moody’s or Standard & Poor’s.
The Fund’s current prospectus contains a description of Moody’s and Standard & Poor’s ratings
See Notes to Financial Statements.
26 | Visit our website at www.jennisondryden.com |
The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of October 31, 2004 were as follows:
Healthcare | 29.2 | % | |
Special Tax/Assessment District | 14.9 | ||
Corporate-Backed IDB & PCR | 10.8 | ||
Other | 8.0 | ||
General Obligation | 7.2 | ||
Tobacco | 6.6 | ||
Transportation | 4.5 | ||
Power | 4.5 | ||
Housing | 3.7 | ||
Water & Sewer | 3.0 | ||
Education | 2.9 | ||
Lease Backed Certificate of Participation | 2.3 | ||
Solid Waste/Resource Recovery | 1.3 | ||
Pooled Financing | 0.4 | ||
99.3 | |||
Other assets in excess of liabilities | 0.7 | ||
100.0 | % | ||
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 27 |
Statement of Assets and Liabilities
as of October 31, 2004 (Unaudited)
Assets | ||||
Investments, at value (cost $669,660,007) | $ | 661,060,989 | ||
Cash | 13,858 | |||
Interest receivable | 12,972,446 | |||
Receivable for investments sold | 2,646,875 | |||
Receivable for Series shares sold | 216,268 | |||
Prepaid expenses | 27,086 | |||
Total assets | 676,937,522 | |||
Liabilities | ||||
Payable for investments purchased | 8,912,926 | |||
Dividends payable | 960,591 | |||
Payable for Series shares reacquired | 803,350 | |||
Management fee payable | 283,127 | |||
Accrued expenses | 235,692 | |||
Distribution fee payable | 184,142 | |||
Deferred trustees’ fees | 17,754 | |||
Due to broker-variation margin | 12,122 | |||
Total liabilities | 11,409,704 | |||
Net Assets | $ | 665,527,818 | ||
Net assets were comprised of: | ||||
Shares of beneficial interest, at par | $ | 651,674 | ||
Paid-in capital in excess of par | 719,511,893 | |||
720,163,567 | ||||
Undistributed net investment income | 1,820,393 | |||
Accumulated net realized loss on investments | (47,966,734 | ) | ||
Net unrealized depreciation on investments and financial future contracts. | (8,489,408 | ) | ||
Net assets, October 31, 2004 | $ | 665,527,818 | ||
See Notes to Financial Statements.
28 | Visit our website at www.jennisondryden.com |
Class A | |||
Net asset value and redemption price per share | |||
($465,595,513 ÷ 45,594,298 shares of beneficial interest issued and outstanding) | $ | 10.21 | |
Maximum sales charge (4% of offering price) | 0.43 | ||
Maximum offering price to public | $ | 10.64 | |
Class B | |||
Net asset value, offering price and redemption price per share | |||
($164,855,462 ÷ 16,138,005 shares of beneficial interest issued and outstanding) | $ | 10.22 | |
Class C | |||
Net asset value, offering price and redemption price per share | |||
($23,257,245 ÷ 2,276,623 shares of beneficial interest issued and outstanding) | $ | 10.22 | |
Class Z | |||
Net asset value, offering price and redemption price per share | |||
($11,819,598 ÷ 1,158,506 shares of beneficial interest issued and outstanding) | $ | 10.20 | |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 29 |
Statement of Operations
Six Months Ended October 31, 2004 (Unaudited)
Net Investment Income | ||||
Income | ||||
Interest | $ | 20,055,012 | ||
Expenses | ||||
Management fee | 1,681,644 | |||
Distribution fee—Class A | 573,924 | |||
Distribution fee—Class B | 446,717 | |||
Distribution fee—Class C | 89,187 | |||
Transfer agent’s fees and expenses | 147,000 | |||
Reports to shareholders | 101,000 | |||
Custodian’s fees and expenses | 85,000 | |||
Registration fees | 24,000 | |||
Legal fees and expenses | 20,000 | |||
Audit fee | 12,000 | |||
Trustees’ fees | 8,000 | |||
Commitment fees | 6,000 | |||
Miscellaneous | 10,454 | |||
Total expenses | 3,204,926 | |||
Net investment income | 16,850,086 | |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain on: | ||||
Investment transactions | 2,640,757 | |||
Financial futures transactions | 784,375 | |||
Interest rate swap | 304,880 | |||
3,730,012 | ||||
Net change in unrealized appreciation (depreciation) on: | ||||
Investment transactions | 9,999,970 | |||
Financial futures contracts | 388,510 | |||
Interest rate swap | (97,411 | ) | ||
10,291,069 | ||||
Net gain on investments | 14,021,081 | |||
Net Increase In Net Assets Resulting From Operations | $ | 30,871,167 | ||
See Notes to Financial Statements.
30 | Visit our website at www.jennisondryden.com |
Statement of Changes in Net Assets
(Unaudited)
Six Months Ended October 31, 2004 | Year Ended April 30, 2004 | |||||||
Increase (Decrease) In Net Assets | ||||||||
Operations | ||||||||
Net investment income | $ | 16,850,086 | $ | 38,287,964 | ||||
Net realized gain on investments transactions | 3,730,012 | 5,342,223 | ||||||
Net change in unrealized appreciation (depreciation) on investments | 10,291,069 | (13,123,851 | ) | |||||
Net increase in net assets resulting from operations | 30,871,167 | 30,506,336 | ||||||
Dividends: | ||||||||
Dividends from net investment income | ||||||||
Class A | (11,599,923 | ) | (25,207,520 | ) | ||||
Class B | (4,295,829 | ) | (10,929,151 | ) | ||||
Class C | (542,105 | ) | (1,276,742 | ) | ||||
Class Z | (293,345 | ) | (863,578 | ) | ||||
(16,731,202 | ) | (38,276,991 | ) | |||||
Series share transactions (net of share conversions) (Note 6) | ||||||||
Net proceeds from shares sold | 22,011,022 | 53,315,667 | ||||||
Net asset value of shares issued in reinvestment of dividends | 7,632,121 | 17,099,105 | ||||||
Cost of shares reacquired | (66,642,383 | ) | (150,460,389 | ) | ||||
Net decrease in net assets from Series share transactions | (36,999,240 | ) | (80,045,617 | ) | ||||
Total decrease | (22,859,275 | ) | (87,816,272 | ) | ||||
Net Assets | ||||||||
Beginning of period | 688,387,093 | 776,203,365 | ||||||
End of period(a) | $ | 665,527,818 | $ | 688,387,093 | ||||
(a) Includes undistributed net investment income of | $ | 1,820,393 | $ | 1,701,509 | ||||
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 31 |
Portfolio of Investments
as of October 31, 2004 (Unaudited)
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
LONG-TERM INVESTMENTS 97.1% | |||||||||||||
California 9.3% | |||||||||||||
California St., G.O. | Aaa | 5.25% | 2/01/27 | $ | 7,000 | $ | 7,422,590 | ||||||
Los Angeles Unif. Sch. Dist. Cert. Part., Admin. Bldg. Proj., Ser. B, C.O.P. | Aaa | 5.00 | 10/01/31 | 6,525 | 6,650,867 | ||||||||
San Diego Cnty. Wtr. Rev., C.O.P., F.G.I.C. | Aa3 | 9.62(c) | 4/26/06 | 5,800 | 6,421,180 | ||||||||
San Joaquin Hills Trans. Corridor Agcy. Toll Rd. Rev., C.A.B.S., Ser. A, M.B.I.A. | Aaa | Zero | 1/15/36 | 10,000 | 1,889,900 | ||||||||
San Jose Redev. Tax Allocation, M.B.I.A. | Aaa | 5.00 | 8/01/32 | 1,400 | 1,424,948 | ||||||||
South Orange Cnty. Pub. Fin., Foothill Area Proj., Ser. C, F.G.I.C. | Aaa | 8.00 | 8/15/08 | 2,000 | 2,403,460 | ||||||||
University Rev., Hosp., UCLA Med. Ctr., Ser. A, A.M.B.A.C. | Aaa | 5.25 | 5/15/30 | 3,000 | 3,158,070 | ||||||||
29,371,015 | |||||||||||||
Colorado 4.1% | |||||||||||||
Colorado Dept. Trans. Rev., Trans. Rev. Antic Nts., Ser. A, F.G.I.C. | Aaa | 5.00 | 12/15/16 | 7,000 | 7,750,050 | ||||||||
Denver City & Cnty. Arpt. Rev., Ser. C, A.M.T, M.B.I.A. | Aaa | 5.60 | 11/15/11 | 5,000 | 5,338,150 | ||||||||
13,088,200 | |||||||||||||
District of Columbia 2.9% | |||||||||||||
Dist. of Columbia Rev., Univ., George Washington Univ., Ser. A | Aaa | 5.125 | 9/15/31 | 2,000 | 2,055,620 | ||||||||
Dist. of Columbia, G.O., | |||||||||||||
Ser. A, E.T.M., M.B.I.A. | Aaa | 6.50 | 6/01/10 | 2,905 | 3,445,853 | ||||||||
Ser. A, M.B.I.A. | Aaa | 6.50 | 6/01/10 | 3,095 | (e) | 3,643,248 | |||||||
9,144,721 |
See Notes to Financial Statements.
32 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||
Florida 7.7% | ||||||||||||
Brevard Cnty. Hlth. Facs. Auth., Holmes Reg. Med. Ctr. Proj., M.B.I.A. | Aaa | 5.60% | 10/01/10 | $ | 6,000 | $ | 6,415,980 | |||||
Florida St. Corr. | ||||||||||||
Privatization Comn. Cert. Partner, A.M.B.A.C., C.O.P., | ||||||||||||
Ser. B | Aaa | 5.00 | 8/01/15 | 2,125 | 2,351,206 | |||||||
Ser. B | Aaa | 5.00 | 8/01/16 | 2,235 | 2,459,461 | |||||||
Indian River Cnty. Wtr. & Swr. Rev., Ser. A, F.G.I.C. | Aaa | 5.25 | 9/01/18 | 2,600 | 2,877,966 | |||||||
Orange Cnty. Tourist Dev. Tax Rev. | Aaa | 5.00 | 10/01/17 | 2,000 | 2,153,840 | |||||||
Palm Beach Cnty. Pub. Impvt. Rev., Convention Ctr. Proj., F.G.I.C. | Aaa | 5.00 | 11/01/30 | 2,000 | 2,196,680 | |||||||
Polk Cnty. Sch. Dist. Sales Tax Rev., | ||||||||||||
F.S.A. | Aaa | 5.25 | 10/01/17 | 1,580 | 1,776,204 | |||||||
F.S.A. | Aaa | 5.25 | 10/01/18 | 1,325 | 1,481,377 | |||||||
Volusia Cnty. Sch. Brd. Sales Tax Rev., F.S.A. | Aaa | 5.00 | 10/01/09 | 2,330 | 2,577,679 | |||||||
24,290,393 | ||||||||||||
Georgia 3.1% | ||||||||||||
Atlanta Arpt. Facs. Rev., Ser. A, A.M.B.A.C., E.T.M. | Aaa | 6.50 | 1/01/10 | 2,000 | 2,353,920 | |||||||
Georgia Mun. Elec. Auth., Pwr. Rev., Ser. B, M.B.I.A. | Aaa | 6.20 | 1/01/10 | 3,495 | 4,039,626 | |||||||
Newnan Hosp. Auth. Rev. | Aaa | 5.50 | 1/01/21 | 3,185 | 3,498,754 | |||||||
9,892,300 | ||||||||||||
Hawaii 2.9% | ||||||||||||
Hawaii Dept. Budget & Fin., | ||||||||||||
Hawaiian Elec. Co. Projs., Ser. C, A.M.B.A.C., A.M.T. | Aaa | 6.20 | 11/01/29 | 8,000 | 9,051,920 | |||||||
Idaho 0.2% | ||||||||||||
Idaho Hsg. & Fin. Assoc., Sngl. Fam. Mtge., Ser. E, A.M.T. | Aaa | 5.55 | 7/01/31 | 775 | 777,976 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 33 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||
Illinois 8.9% | ||||||||||||
Chicago Midway Arpt. Rev., Ser. B, M.B.I.A., A.M.T. | Aaa | 5.75% | 1/01/22 | $ | 5,000 | $ | 5,285,900 | |||||
Chicago O’Hare Int’l. Arpt. Pass. Facs. Chrg., Ser. A, A.M.B.A.C. | Aaa | 5.625 | 1/01/15 | 2,000 | 2,119,460 | |||||||
Chicago Proj. & Rfdg., G.O., F.G.I.C. | Aaa | 5.25 | 1/01/28 | 2,000 | 2,090,500 | |||||||
Illinois St., | ||||||||||||
G.O. | Aaa | 5.625 | 4/01/15 | 3,250 | 3,649,685 | |||||||
G.O., F.S.A. | Aaa | 5.25 | 4/01/22 | 2,500 | 2,708,875 | |||||||
Illinois St. Civic Ctr., Spec. | ||||||||||||
St. Oblig., F.S.A. | Aaa | 5.50 | 12/15/15 | 2,710 | 3,055,823 | |||||||
McLean & Woodford Cntys. Cmnty. Unif. Sch. Dist. No. 005, F.S.A., G.O. | Aaa | 5.625 | 12/01/17 | 4,000 | 4,548,240 | |||||||
Metro. Pier & Exposition Auth. Dedicated St. Tax Rev., C.A.B.S, McCormick, Ser. A | Aaa | Zero | 12/15/34 | 10,000 | 2,055,900 | |||||||
C.A.B.S, McCormick, | Aaa | Zero | 6/15/37 | 7,500 | 1,331,400 | |||||||
Onterie Ctr. Hsg. Fin. Corp., Mtge. Rev., Ser. A, | Aaa | 7.00 | 7/01/12 | 1,350 | 1,366,376 | |||||||
28,212,159 | ||||||||||||
Kansas 0.7% | ||||||||||||
Saline Cnty. Unif. Sch. Dist., G.O., F.S.A. | Aaa | 5.50 | 9/01/17 | 2,000 | 2,250,380 | |||||||
Louisiana 0.4% | ||||||||||||
New Orleans Fin. Auth., Sngl. Fam. Mtge., | Aaa | 6.00 | 12/01/21 | 1,105 | 1,166,228 | |||||||
Maryland 0.0% | ||||||||||||
Prince Georges Cnty. Hsg., Sngl. Fam. Mtge., Ser. A, A.M.T, G.N.M.A./F.N.M.A. | AAA(b) | 6.15 | 8/01/19 | 115 | 122,052 |
See Notes to Financial Statements.
34 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||
Massachusetts 2.1% | ||||||||||||
Boston Convention Ctr. Act of 1997, Spec. Oblig., | Aaa | 5.00% | 5/01/19 | $ | 2,000 | $ | 2,154,420 | |||||
Massachusetts St., Cons. Ln., | Aaa | 5.50 | 11/01/10 | 4,000 | 4,547,240 | |||||||
6,701,660 | ||||||||||||
Michigan 3.3% | ||||||||||||
Detroit Wtr. Sup. Sys., | Aaa | 5.25 | 7/01/32 | 5,500 | 5,799,200 | |||||||
Michigan Mun. Bond Auth. Rev., Clean Wtr., St. Revolving Fd. | Aaa | 5.00 | 10/01/15 | 4,000 | 4,470,720 | |||||||
10,269,920 | ||||||||||||
Minnesota 3.8% | ||||||||||||
Becker Indpt. Sch. Dist. No. 726., F.S.A., | ||||||||||||
Ser. A | Aaa | 6.00 | 2/01/15 | 1,610 | 1,843,144 | |||||||
Ser. A | Aaa | 6.00 | 2/01/16 | 1,750 | 2,003,418 | |||||||
Minneapolis & St. Paul Metro. Arpts., F.G.I.C., | ||||||||||||
Ser. A | Aaa | 5.75 | 1/01/32 | 4,285 | 4,766,248 | |||||||
Ser. C | Aaa | 5.50 | 1/01/19 | 3,000 | 3,337,350 | |||||||
11,950,160 | ||||||||||||
Missouri 1.1% | ||||||||||||
St. Louis Arpt. Rev., Arpt. Dev. Proj., Ser. A, M.B.I.A. | Aaa | 5.625 | 7/01/19 | 3,000 | 3,378,150 | |||||||
Nevada 1.4% | ||||||||||||
Washoe Cnty. Arpt. Auth. Arpt. Sys. Impvt. Rev., F.S.A. | Aaa | 5.00 | 7/01/11 | 4,005 | 4,409,585 | |||||||
New Jersey 4.2% | ||||||||||||
Jersey City Swr. Auth., | ||||||||||||
Rev., A.M.B.A.C. | Aaa | 6.00 | 1/01/10 | 2,585 | 2,969,881 | |||||||
Rev., A.M.B.A.C. | Aaa | 6.25 | 1/01/14 | 4,255 | 5,143,742 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 35 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
New Jersey Hsg. Auth., Port Auth-Newark Marine Terminal, M.B.I.A. | Aaa | 5.00% | 1/01/34 | $ | 5,000 | $ | 5,140,450 | ||||||
13,254,073 | |||||||||||||
New York 12.2% | |||||||||||||
Erie Cnty. Ind. Dev. Agcy. Sch. Facs. Rev., City of Buffalo Proj., F.S.A. | Aaa | 5.75 | 5/01/21 | 2,750 | 3,161,180 | ||||||||
Islip Res. Rec. Facs., Ser. B, A.M.B.A.C., A.M.T. | Aaa | 7.20 | 7/01/10 | 1,750 | 2,102,328 | ||||||||
Metro. Trans. Auth., N.Y. Svc. Contract, Rfdg., M.B.I.A., | |||||||||||||
Ser. B | Aaa | 5.50 | 7/01/19 | 5,000 | 5,670,950 | ||||||||
Ser. B | Aaa | 5.50 | 7/01/23 | 7,285 | 8,129,331 | ||||||||
Nassau Cnty. Interim Fin. Auth., Sales Tax Secured, Ser. A, A.M.B.A.C. | Aaa | 5.00 | 11/15/12 | 2,500 | 2,798,650 | ||||||||
New York N.Y., Prerfdg., | Aaa | 5.75 | 2/01/06 | 145 | (d) | 154,294 | |||||||
Unrfdg., Ser. G, G.O., M.B.I.A. | Aaa | 5.75 | 2/01/14 | 1,310 | 1,388,037 | ||||||||
New York St. Dorm. Auth. Rev., Sch. Dist. Fin. Proj., Ser. A, M.B.I.A. | Aaa | 5.75 | 10/01/17 | 3,000 | 3,470,160 | ||||||||
New York St. Engy. Res. & Dev. Auth. Poll. Ctrl. Rev., Cent. Hudson Gas & Elec., Ser. A, A.M.T. | Aaa | 3.00 | 12/01/08 | 2,000 | 2,003,180 | ||||||||
New York St. Environ. Facs. Poll. Ctrl. Rev., | |||||||||||||
Ser. C | Aaa | 5.70 | 7/15/12 | 25 | 26,546 | ||||||||
Ser. C | Aaa | 5.75 | 7/15/13 | 10 | 10,625 | ||||||||
Ser. C | Aaa | 5.80 | 7/15/14 | 35 | 37,228 | ||||||||
Suffolk Cnty. Judicial Facs., John P. Cohalan Complex, A.M.B.A.C. | Aaa | 5.75 | 10/15/12 | 3,000 | 3,399,780 |
See Notes to Financial Statements.
36 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||
Tobacco Settlement Fin. Corp., Asset-Bkd, Ser. A-1 | A3 | 5.50% | 6/01/14 | $ | 3,000 | $ | 3,270,960 | |||||
Ser. C-1 | A3 | 5.50 | 6/01/14 | 1,500 | 1,637,415 | |||||||
Ser. C-1 | A3 | 5.50 | 6/01/15 | 1,000 | 1,099,100 | |||||||
38,359,764 | ||||||||||||
Ohio 1.7% | ||||||||||||
Bowling Green St. Univ., F.G.I.C. | Aaa | 5.75 | 6/01/16 | 2,815 | 3,204,258 | |||||||
Ohio St. Wtr. Dev. Auth. Rev., Wtr. Dev., Fresh | Aa1 | 5.125 | 12/01/18 | 2,000 | 2,167,200 | |||||||
5,371,458 | ||||||||||||
Oklahoma 3.8% | ||||||||||||
Edmond Pub. Wks. Auth. Util. Rev., A.M.B.A.C. | Aaa | 5.625 | 7/01/24 | 4,440 | 4,915,790 | |||||||
Norman Reg. Hosp. Auth., Rev., Ser. A, M.B.I.A. | Aaa | 5.50 | 9/01/11 | 4,110 | 4,418,168 | |||||||
Oklahoma City Arpt. Trust, Jr. Lien, Ser. 24, A.M.B.A.C., A.M.T. | Aaa | 5.75 | 2/01/18 | 2,620 | 2,752,441 | |||||||
12,086,399 | ||||||||||||
Pennsylvania 1.8% | ||||||||||||
Pennsylvania St. Ind. Dev. Auth. Rev., Econ. Dev. | Aaa | 5.50 | 7/01/17 | 5,000 | 5,691,500 | |||||||
Puerto Rico 2.2% | ||||||||||||
Puerto Rico Comnwlth. Hwy & Transit Auth. Trans. Rev., | ||||||||||||
Ser. I, F.G.I.C. | Aaa | 5.00 | 7/01/25 | 3,000 | 3,179,190 | |||||||
Ser. I, F.G.I.C. | Aaa | 5.00 | 7/01/26 | 3,465 | 3,653,669 | |||||||
6,832,859 | ||||||||||||
South Carolina 2.1% | ||||||||||||
Lexington Wtr. & Swr., Rev., Ser. A, M.B.I.A. | Aaa | 5.75 | 4/01/20 | 4,180 | 4,723,985 | |||||||
Univ. of South Carolina, Rev., Ser. A, F.G.I.C. | Aaa | 5.75 | 6/01/30 | 1,615 | 1,798,820 | |||||||
6,522,805 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 37 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Texas 7.0% | |||||||||||||
Corpus Christi Util. Sys. Rev., F.S.A., | |||||||||||||
Ser. A | Aaa | 6.00% | 7/15/19 | $ | 3,255 | $ | 3,727,105 | ||||||
Ser. A | Aaa | 6.00 | 7/15/20 | 3,450 | 3,950,388 | ||||||||
Houston Arpt. Sys. Rev., E.T.M. | Aaa | 7.20 | 7/01/13 | 3,095 | 3,676,922 | ||||||||
Houston Texas, Rfdg., Pub. Impvt., Ser. A, G.O., M.B.I.A. | Aaa | 5.375 | 3/01/15 | 5,000 | 5,672,900 | ||||||||
Mission Cons. Indpt. Sch. Dist., G.O., P.S.F.G. | Aaa | 5.75 | 2/15/19 | 1,360 | 1,527,593 | ||||||||
Northwest Indpt. Sch. Dist., P.S.F.G., | Aaa | 5.50 | 8/15/17 | 1,080 | 1,208,693 | ||||||||
Sch. Bldg. & Rfdg., G.O., | Aaa | 5.50 | 8/15/18 | 1,000 | 1,115,400 | ||||||||
Van Alstyne Indpt. Sch. Dist. Rfdg., G.O., P.S.F.G. | Aaa | 5.95 | 8/15/29 | 1,105 | 1,199,621 | ||||||||
22,078,622 | |||||||||||||
Vermont 0.8% | |||||||||||||
Vermont Hsg. Fin. Agcy., Sngl. Fam. Mtge., Ser. 13A, A.M.T., F.S.A. | Aaa | 5.45 | 5/01/26 | 2,495 | 2,549,541 | ||||||||
Washington 7.5% | |||||||||||||
Clark Cnty. Sch. Dist. No. 114, G.O., F.S.A. | Aaa | 5.25 | 12/01/18 | 3,800 | 4,136,642 | ||||||||
Cowlitz Cnty. Sch. Dist. No. 122 Longview, F.S.A., G.O. | Aaa | 5.50 | 12/01/19 | 1,725 | 1,941,022 | ||||||||
King Cnty. Sch. Dist. No 411, G.O., F.S.A. | Aaa | 6.25 | 12/01/15 | 1,900 | 2,230,448 | ||||||||
Ocean Shores, G.O., F.G.I.C. | Aaa | 5.50 | 12/01/20 | 1,570 | 1,773,393 | ||||||||
Port Seattle Rev., | Aaa | 5.375 | 6/01/13 | 595 | (d) | 663,151 | |||||||
Unrfdg., Ser. A, F.G.I.C. | Aaa | 5.375 | 6/01/13 | 1,405 | 1,547,285 | ||||||||
Skagit Cnty. Cons. Sch. Dist. No. 320 Mount Vernon, G.O., M.B.I.A. | Aaa | 5.50 | 12/01/18 | 2,000 | 2,250,460 | ||||||||
Snohomish Cnty., Ltd. Tax, G.O., M.B.I.A. | Aaa | 5.375 | 12/01/19 | 2,000 | 2,232,060 |
See Notes to Financial Statements.
38 | Visit our website at www.jennisondryden.com |
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | ||||||||
Washington St. Hsg. Fin. Comn., Sngl. Fam. Pg., Ser. 2A, A.M.T., | Aaa | 5.375% | 12/01/18 | $ | 2,505 | $ | 2,609,559 | ||||||
Washington St. Pub. Pwr. Supply, M.B.I.A. | Aaa | 5.75 | 7/01/10 | 4,000 | 4,312,320 | ||||||||
23,696,340 | |||||||||||||
West Virginia 1.1% | |||||||||||||
Clarksburg Wtr. Rev., F.G.I.C. | Aaa | 5.25 | 9/01/19 | 2,000 | 2,198,360 | ||||||||
West Virginia St. Wtr. Dev. Auth., Ser. B, A.M.B.A.C., A.M.T. | Aaa | 5.875 | 7/01/20 | 1,015 | 1,131,075 | ||||||||
3,329,435 | |||||||||||||
Wisconsin 0.8% | |||||||||||||
Manitowoc Elec. Rev., Pwr. Sys., F.G.I.C. | Aaa | 5.25 | 10/01/34 | 2,500 | 2,628,425 | ||||||||
Total long-term investments (cost $287,771,199) | 306,478,040 | ||||||||||||
SHORT-TERM INVESTMENTS 1.6% | |||||||||||||
California 0.3% | |||||||||||||
California St. Hlth. Facs. Fin. Auth. Rev., Ser. B, F.R.D.D., M.B.I.A. | VMIG1 | 1.70 | 9/01/28 | (f) | 1,100 | 1,100,000 | |||||||
Illinois 0.5% | |||||||||||||
Illinois Mun. Secs. Trust Cert., Ser. 2000-93, | A-1+(b) | 1.77 | 10/04/12 | (f) | 1,600 | 1,600,000 | |||||||
Tennessee 0.3% | |||||||||||||
Sevier Cnty. Pub. Bldg. Auth. Rev., F.S.A., | VMIG1 | 1.74 | 6/01/25 | (f) | 900 | 900,000 |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 39 |
Portfolio of Investments
as of October 31, 2004 (Unaudited) Cont’d.
Description (a) | Moody’s Rating | Interest Rate | Maturity Date | Principal Amount (000) | Value (Note 1) | |||||||
Texas 0.5% | ||||||||||||
Dallas-Fort Worth Reg. Arpt. Rev., Mun. Secs. Trust Rcpts., SGA 49, F.R.D.D., M.B.I.A., A.M.T. | A-1(b)(f) | 1.77% | 11/01/23 | $ | 1,455 | $ | 1,455,000 | |||||
Total short-term investments (cost $5,055,000) | 5,055,000 | |||||||||||
OUTSTANDING OPTIONS PURCHASED(g) | ||||||||||||
Contracts | ||||||||||||
United States Treasury Bonds Futures @109 | 11/26/04 | 65 | 6,094 | |||||||||
Total outstanding options purchased (cost $24,577) | ||||||||||||
Total Investments 98.7% (cost $292,850,776; Note 5) | 311,539,134 | |||||||||||
Other assets in excess of liabilities 1.3% | 3,998,281 | |||||||||||
Net Assets 100.0% | $ | 315,537,415 | ||||||||||
(a) | The following abbreviations are used in portfolio descriptions: |
A.M.B.A.C.—American Municipal Bond Assurance Corporation.
A.M.T.—Alternative Minimum Tax.
C.A.B.S.—Capital Appreciation Bonds.
C.O.P.—Certificates of Participation.
E.T.M.—Escrowed to Maturity.
F.G.I.C.—Financial Guaranty Insurance Company.
F.N.M.A.—Federal National Mortgage Association.
F.R.D.D.—Floating Rate Daily Demand Note(f).
F.S.A.—Financial Security Assurance.
G.N.M.A.—Government National Mortgage Association.
G.O.—General Obligation.
M.B.I.A.—Municipal Bond Insurance Corporation.
P.S.F.G.—Public School Fund Guaranty.
(b) | Standard & Poor’s rating. |
(c) | Inverse floating rate bond. The coupon is inversely indexed to a floating rate. The rate shown is the rate at period end. |
(d) | Prerefunded issues are secured by escrowed cash or direct U.S. government guaranteed obligations. |
(e) | All or partial amount segregated as initial margin on financial futures contracts. |
(f) | The maturity date shown is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted. |
(g) | Non-income producing security. |
The Fund’s current prospectus contains a description of Moody’s and Standard & Poor’s ratings.
See Notes to Financial Statements.
40 | Visit our website at www.jennisondryden.com |
The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of October 31, 2004 were as follows:
General Obligation | 22.7 | % | |
Transportation | 20.4 | ||
Water & Sewer | 16.0 | ||
Lease Backed Certificate of Participation | 8.0 | ||
Special Tax/Assessment District | 6.8 | ||
Healthcare | 5.9 | ||
Power | 3.5 | ||
Corporate Backed IDB & PCR | 3.5 | ||
Housing | 2.7 | ||
Other | 2.3 | ||
Education | 2.2 | ||
Pooled Financing | 2.1 | ||
Tobacco | 1.9 | ||
Solid Waste/Resource Recovery | 0.7 | ||
98.7 | |||
Other assets in excess of liabilities | 1.3 | ||
100.0 | % | ||
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 41 |
Statement of Assets and Liabilities
as of October 31, 2004 (Unaudited)
Assets | |||
Investments, at value (cost $292,850,776) | $ | 311,539,134 | |
Cash | 83,859 | ||
Interest receivable | 4,735,905 | ||
Receivable for Series shares sold | 31,593 | ||
Prepaid expenses | 14,031 | ||
Total assets | 316,404,522 | ||
Liabilities | |||
Dividends payable | 334,315 | ||
Payable for Series shares reacquired | 224,934 | ||
Management fee payable | 133,768 | ||
Distribution fee payable | 79,792 | ||
Accrued expenses | 77,390 | ||
Deferred trustees’ fees | 14,095 | ||
Due to broker—variation margin | 2,813 | ||
Total liabilities | 867,107 | ||
Net Assets | $ | 315,537,415 | |
Net assets were comprised of: | |||
Shares of beneficial interest, at par | $ | 282,084 | |
Paid-in capital in excess of par | 292,720,625 | ||
293,002,709 | |||
Undistributed net investment income | 354,838 | ||
Accumulated net realized gain on investments | 3,474,052 | ||
Net unrealized appreciation on investments | 18,705,816 | ||
Net assets, October 31, 2004 | $ | 315,537,415 | |
See Notes to Financial Statements.
42 | Visit our website at www.jennisondryden.com |
Class A | |||
Net asset value and redemption price per share | |||
($252,428,461 ÷ 22,570,918 shares of beneficial interest issued and outstanding) | $ | 11.18 | |
Maximum sales charge (4% of offering price) | 0.47 | ||
Maximum offering price to public | $ | 11.65 | |
Class B | |||
Net asset value, offering price and redemption price per share | |||
($49,887,345 ÷ 4,455,634 shares of beneficial interest issued and outstanding) | $ | 11.20 | |
Class C | |||
Net asset value, offering price and redemption price per share | |||
($8,095,798 ÷ 723,081 shares of beneficial interest issued and outstanding) | $ | 11.20 | |
Class Z | |||
Net asset value, offering price and redemption price per share | |||
($5,125,811 ÷ 458,767 shares of beneficial interest issued and outstanding) | $ | 11.17 | |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 43 |
Statement of Operations
Six Months Ended October 31, 2004 (Unaudited)
Net Investment Income | ||||
Income | ||||
Interest | $ | 7,274,567 | ||
Expenses | ||||
Management fee | 793,459 | |||
Distribution fee—Class A | 317,154 | |||
Distribution fee—Class B | 125,939 | |||
Distribution fee—Class C | 28,750 | |||
Transfer agent’s fees and expenses | 81,000 | |||
Custodian’s fees and expenses | 71,000 | |||
Registration fees | 21,000 | |||
Reports to shareholders | 20,000 | |||
Legal fees and expenses | 16,000 | |||
Audit fee | 12,000 | |||
Trustees’ fees | 8,000 | |||
Miscellaneous | 8,958 | |||
Total expenses | 1,503,260 | |||
Net investment income | 5,771,307 | |||
Realized And Unrealized Gain (Loss) On Investments | ||||
Net realized gain (loss) on: | ||||
Investment transactions | 1,730,960 | |||
Financial futures transactions | (646,495 | ) | ||
Interest rate swap | 142,080 | |||
1,226,545 | ||||
Net change in unrealized appreciation (depreciation) on: | ||||
Investments transactions | 6,336,593 | |||
Financial futures contracts | 517,806 | |||
Interest rate swap | (45,395 | ) | ||
6,809,004 | ||||
Net gain on investments | 8,035,549 | |||
Net Increase In Net Assets Resulting From Operations | $ | 13,806,856 | ||
See Notes to Financial Statements.
44 | Visit our website at www.jennisondryden.com |
Statement of Changes in Net Assets
Six Months Ended October 31, 2004 (Unaudited) | Year Ended April 30, 2004 | |||||||
Increase (Decrease) In Net Assets | ||||||||
Operations | ||||||||
Net investment income | $ | 5,771,307 | $ | 12,609,352 | ||||
Net realized gain on investments | 1,226,545 | 4,982,368 | ||||||
Net change in unrealized appreciation (depreciation) on investments | 6,809,004 | (16,980,033 | ) | |||||
Net increase in net assets resulting from operations | 13,806,856 | 611,687 | ||||||
Dividends and distributions (Note 1) | ||||||||
Dividends from net investment income | ||||||||
Class A | (4,655,708 | ) | (10,094,835 | ) | ||||
Class B | (861,389 | ) | (1,949,647 | ) | ||||
Class C | (121,514 | ) | (266,136 | ) | ||||
Class Z | (110,268 | ) | (295,156 | ) | ||||
(5,748,879 | ) | (12,605,774 | ) | |||||
Distributions from net realized gains | ||||||||
Class A | — | (7,002,039 | ) | |||||
Class B | — | (1,457,020 | ) | |||||
Class C | — | (211,875 | ) | |||||
Class Z | — | (186,705 | ) | |||||
— | (8,857,639 | ) | ||||||
Series share transactions (Net of share conversions) (Note 6) | ||||||||
Net proceeds from shares sold | 9,071,393 | 39,399,592 | ||||||
Net asset value of shares issued in reinvestment of dividends | 3,452,788 | 13,517,012 | ||||||
Cost of shares reacquired | (28,174,421 | ) | (68,371,805 | ) | ||||
Net decrease in net assets from Series share transactions | (15,650,240 | ) | (15,455,201 | ) | ||||
Total decrease | (7,592,263 | ) | (36,306,927 | ) | ||||
Net Assets | ||||||||
Beginning of period | 323,129,678 | 359,436,605 | ||||||
End of period(a) | $ | 315,537,415 | $ | 323,129,678 | ||||
(a) Includes undistributed net investment income of | $ | 354,838 | $ | 332,410 | ||||
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 45 |
Notes to Financial Statements
(Unaudited)
Dryden Municipal Bond Fund (the “Fund”) is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund was organized as an unincorporated business trust in Massachusetts on November 3, 1986 and consists of two series: the “High Income Series” and the “Insured Series”. Investment operations for Class A, Class B, Class C and Class Z shares of each Series commenced on January 22, 1990, September 17, 1987, August 1, 1994 and September 16, 1996, respectively.
The investment objectives of the Series are as follows: (i) the objective of the High Income Series is to provide the maximum amount of income that is eligible for exclusion from federal income taxes, (ii) the objective of the Insured Series is to provide the maximum amount of income that is eligible for exclusion from federal income taxes consistent with the preservation of capital. The ability of issuers of debt securities held by the Fund to meet their obligations may be affected by economic and political developments in a specific state, region or industry.
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: The Fund values municipal securities (including commitments to purchase such securities on a “when-issued” basis) as of the close of trading on the New York Stock Exchange, on the basis of prices provided by a pricing service which uses information with respect to transactions in comparable securities and various relationships between securities in determining values. Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and asked prices, or at the last bid price on such day in the absence of an asked price. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”) in consultation with the subadvisor, 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
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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. Securities for which reliable market quotations are not readily available or for which the pricing service does not provide a valuation methodology, or does not present fair value, are valued at fair value in accordance with Board of Trustees’ approved fair valuation procedures. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values. Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.
Short-term securities which mature in sixty days or less are valued at amortized cost, which approximates market value. Short-term securities which mature in more than sixty days are valued at current market quotations. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost.
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 contracts.
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.
Options: The Fund may either purchase or write options in order to hedge against adverse market movements or fluctuations in value caused by changes in prevailing interest rates with respect to securities which the Fund currently owns or intends to
Dryden Municipal Bond Fund | 47 |
Notes to Financial Statements
Cont’d
purchase. The Fund’s principal reason for writing options is to realize, through receipt of premiums, a greater current return than would be realized on the underlying security alone. When the Fund purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Fund writes an option, it receives a premium and an amount equal to that premium is recorded as a liability. The asset or liability is adjusted daily to reflect the current market value of the option.
If an option expires unexercised, the Fund realizes a gain or loss to the extent of the premium received or paid. If an option is exercised, the premium received or paid is an adjustment to the proceeds from the sale or the cost of the purchase in determining whether the Fund has realized a gain or loss. The difference between the premium and the amount received or paid on effecting a closing purchase or sale transaction is also treated as a realized gain or loss. Gain or loss on purchased options is included in net realized gain or loss on investment transactions. Gain or loss on written options is presented separately as net realized gain or loss on written options.
The Fund, as writer of an option, has no control over whether the underlying securities may be sold (called) or purchased (put). As a result, the Fund bears the market risk of an unfavorable change in the price of the security underlying the written option. The Fund, as purchaser of an option that is traded in the over-the-counter market, bears the risk of the potential inability of the counterparties to meet the terms of their contracts.
Interest Rate Swap: The Fund may enter into interest rate swaps. In a simple interest rate swap, one investor pays a floating rate of interest on a notional amount and receives a fixed rate of interest on the same notional principal amount for a specified period of time. Alternatively, an investor may pay a fixed rate and receive a floating rate. Interest rate swaps were developed as asset/liability management tools. In more complex swaps, the notional principal may decline (or amortize) over time.
During the term of the swap, changes in the value of the swap are recorded as unrealized gains or losses by “marking-to-market” to reflect market value of the swap. When the swap is terminated, the Fund will record a realized gain or loss equal to the difference between the proceeds from (or cost of) the closing transaction and the fund’s basis in the contract, if any.
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The Fund is exposed to credit loss in the event of non-performance by the other party to the interest rate swap. However, the Fund does not anticipate non-performance by any counterparty.
Written options, future contracts and swap contracts involve elements of both market and credit risk in excess of the amounts reflected in the Statement of Assets and Liabilities.
Inverse Floaters: The Fund invests in variable rate securities commonly called “inverse floaters”. The interest rates on these securities have an inverse relationship to market interest rate of other securities or the value of an index. Changes in interest rates on the other security or index inversely affect the rate paid on the inverse floater, and the inverse floater’s price will be more volatile than that of a fixed-rate bond. Additionally, some of these securities contain a “leverage factor” whereby the interest rate moves inversely by a “factor” to the benchmark rate. Certain interest rate movements and other market factors can substantially affect the liquidity of inverse floating rate notes.
When-Issued/Delayed Delivery Securities: Securities purchased or sold on a when-issued or delayed-delivery basis may be settled a month or more after trade date; interest income is not accrued until settlement date. At the time a Fund enters into such transactions, it instructs the custodian to segregate assets with a current value at least equal to the amount of its when-issued or delayed-delivery purchase commitments.
Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses on sales of investments are calculated on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis as an adjustment 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 declares daily dividends from the net investment income daily 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. Permanent book/tax
Dryden Municipal Bond Fund | 49 |
Notes to Financial Statements
Cont’d
differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid in capital in excess of par, as appropriate.
Federal Income Taxes: For federal income tax purposes, each Series in the Fund is treated as a separate taxpaying entity. It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.
Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.
Note 2. Agreements
The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadviser’s performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management (“PIM”). The Subadvisory Agreement provides that PIM will furnish investment advisory services in connection with the management of the Fund. PI pays for the services of PIM, the cost of compensation of officers for the Fund, occupancy and certain clerical and bookkeeping cost of the Fund. The Fund bears all other costs and expenses.
The management fee paid PI is computed daily and payable monthly at an annual rate of .50 of 1% of the average daily net assets of each series up to $1 billion and .45 of 1% of the average daily net assets of each series in excess of $1 billion.
The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”) which acts as the distributor of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Class A, B and C Plans”), regardless of expenses actually incurred by it. 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.
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Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for distribution-related activities at an annual rate of up to .30 of 1%, .50 of 1% and 1%, of the average daily net assets of the Class A, B and C shares, respectively. PIMS contractually agreed to limit such fees to .25 of 1% and ..75 of 1% average daily net assets of the Class A shares and Class C shares, respectively.
PIMS has advised the High Income Series and Insured Series that it received approximately $89,200 and $34,700 for Class A shares, respectively, in front-end sales charges during the six months ended October 31, 2004. 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 High Income Series and Insured Series that for the six months ended October 31, 2004, it received approximately $141,900 ($136,100-Class B; $5,800-Class C) and $44,800 ($43,600-Class B; $1,200-Class C), respectively, in contingent deferred sales charges imposed upon certain redemptions by Class B and C shareholders, respectively.
PI, PIMS and PIM are indirect wholly owned subsidiaries of Prudential Financial, Inc. (“Prudential”).
The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a syndicated credit agreement (“SCA”) with a group of banks. The SCA provides for a commitment of $500 million. Interest on any borrowings under the SCA would be incurred at market rates. The Funds pay a commitment fee of .08 of 1% of the unused portion of the SCA. The commitment fee is accrued daily and paid quarterly and is allocated to the Funds pro rata, based on net assets. The purpose of the SCA is to serve as an alternative source of funding for capital share redemptions. The expiration date of the SCA was October 29, 2004. Effective October 29, 2004, the Funds entered into a revised credit agreement with two banks. The commitment under the revised credit agreement is $500 million. The Funds pay a commitment fee of .075 of 1% of the unused portion of the revised credit agreement. The expiration date of the revised credit agreement will be October 28, 2005. The Fund did not borrow any amounts pursuant to the SCA during the fiscal period ended October 31, 2004.
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. During the six months ended October 31, 2004, the Fund incurred approximately $161,100 ($104,200-High Income Series; $56,900-Insured Series) for the services of PMFS. As of October 31, 2004, approximately $26,600 ($17,400-High Income Series; $9,200-Insured Series) of such fees
Dryden Municipal Bond Fund | 51 |
Notes to Financial Statements
Cont’d
were due to PMFS. Transfer agent fees and expenses in the Statement of Operations also include certain out of pocket expenses paid to nonaffiliates.
The Fund pays networking fees to affiliated and unaffiliated broker/dealers. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. The Fund incurred approximately $25,200 ($19,800-High Income Series; $5,400-Insured Series) in total networking fees, of which the amount relating to the services of Wachovia Securities LLC (“Wachovia”), and Prudential Securities, Inc. (“PSI”), an affiliate of PI, was approximately $20,600 ($16,300-High Income Series; $4,300-Insured Series) for the six months ended October 31, 2004. As of October 31, 2004, approximately $4,100 ($2,700-High Income Series; $1,400-Insured Series) of such fees were due to Wachovia. These amounts are included in transfer agent’s fees in the Statements of Operations.
For the fiscal period ended October 31, 2004, the Fund did not pay brokerage commissions to Wachovia.
Note 4. Portfolio Securities
Purchases and sales of portfolio securities, other than short-term investments, for the six months ended October 31, 2004, were as follows:
Series | Purchases | Sales | ||
High Income | $111,144,987 | $167,976,408 | ||
Insured | $37,689,331 | $67,990,542 |
During the six months ended October 31, 2004, the High Income Series and Insured Series entered into financial futures contracts. Details of open contracts at October 31, 2004 are as follows:
Series | Number of Contracts | Type | Expiration Date | Value at October 31, 2004 | Value at Trade Date | Unrealized Appreciation/ (Depreciation) | ||||||||||
High Income | 56 | Long Position: U.S. Treasury Bonds | Dec. 04 | $ | 6,375,250 | $ | 6,202,174 | $ | 173,076 | |||||||
135 | Short Position: U.S. Treasury 10 yr. Notes | Dec. 04 | 15,330,937 | 15,267,410 | (63,527 | ) | ||||||||||
$ | 109,549 | |||||||||||||||
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Series | Number of Contracts | Type | Expiration Date | Value at October 31, 2004 | Value at Trade Date | Unrealized Appreciation/ (Depreciation) | ||||||||||
Insured | 15 | Long Positions: U.S. Treasury Bonds | Dec. 04 | $ | 1,707,656 | $ | 1,683,786 | $ | 23,870 | |||||||
35 | Short Positions: U.S. Treasury 10 yr. Notes | Dec. 04 | 3,974,687 | 3,968,275 | (6,412 | ) | ||||||||||
$ | 17,458 | |||||||||||||||
Note 5. Tax Information
The High Income Series has net capital loss carryforward as of April 30, 2004 of approximately $50,885,000, of which $3,225,000 expires in 2005, $554,000 expires in 2006, $3,137,000 expires in 2007, $5,906,000 expires in 2008, $20,095,000 expires in 2009, $13,512,000 expires in 2010 and $4,456,000 expires in 2011. Accordingly, no capital gains distributions are expected to be paid to shareholders until net gains have been realized in excess of such carryforwards. The tax basis differs from the amount on the Statement of Assets and Liabilities primarily due to differences in the treatment of discount and premium amortization for book and tax purposes.
The United States federal income tax basis of the Series’ investments and the net unrealized appreciation (depreciation) as of October 31, 2004 were as follows:
Series | Tax Basis | Appreciation | (Depreciation) | Total Net Unrealized Appreciation (Deprecitaion) | ||||
High Income | $669,316,013 | $34,827,568 | $(43,082,592) | $(8,255,024) | ||||
Insured | $292,568,312 | $19,030,534 | $(59,712) | $18,970,822 |
The difference between book basis and tax basis was attributable to deferred losses on wash sales and the differences in the treatment of discount amortization for book and tax purposes.
Note 6. Capital
The High Income Series and Insured Series offer Class A, Class B, Class C and Class Z shares. Class A shares were sold with a front-end sales charge of up to 4%. All investors who purchase Class A shares in the 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-
Dryden Municipal Bond Fund | 53 |
Notes to Financial Statements
Cont’d
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 B shares automatically convert to Class A shares on a quarterly basis approximately seven six months after purchase. A special exchange privilege is also available for shareholders who qualify to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.
The Fund has authorized an unlimited number of shares of beneficial interest of each class at $.01 par value per share. Transactions in shares of beneficial interest for the six months ended October 31, 2004 and fiscal year ended April 30, 2004 were as follows:
High Income Series Class A | Insured Series Class A | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Six Months Ended October 31, 2004 | ||||||||||||||
Shares sold | 972,570 | $ | 9,788,621 | 220,987 | $ | 2,409,172 | ||||||||
Shares issued in reinvestment of dividends | 543,672 | 5,460,593 | 255,142 | 2,801,691 | ||||||||||
Shares reacquired | (3,481,545 | ) | (34,891,349 | ) | (1,756,343 | ) | (19,157,558 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | (1,965,303 | ) | (19,642,135 | ) | (1,280,214 | ) | (13,946,695 | ) | ||||||
Shares issued upon conversion from Class B | 1,814,901 | 18,214,337 | 198,435 | 2,175,884 | ||||||||||
Net increase (decrease) in shares outstanding | (150,402 | ) | $ | (1,427,798 | ) | (1,081,779 | ) | $ | (11,770,811 | ) | ||||
High Income Series Class A | Insured Series Class A | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Year Ended April 30, 2004 | ||||||||||||||
Shares sold | 2,982,186 | $ | 30,011,088 | 2,366,060 | $ | 26,820,648 | ||||||||
Shares issued in reinvestment of dividends | 1,135,503 | 11,521,606 | 947,575 | 10,712,511 | ||||||||||
Shares reacquired | (9,454,923 | ) | (95,529,854 | ) | (4,417,356 | ) | (50,085,703 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | (5,337,234 | ) | (53,997,160 | ) | (1,103,721 | ) | (12,552,544 | ) | ||||||
Shares issued upon conversion from Class B | 2,484,594 | 25,324,224 | 504,923 | 5,847,494 | ||||||||||
Net increase (decrease) in shares outstanding | (2,852,640 | ) | $ | (28,672,936 | ) | (598,798 | ) | $ | (6,705,050 | ) | ||||
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High Income Series Class B | Insured Series Class B | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Six Months Ended October 31, 2004 | ||||||||||||||
Shares sold | 234,357 | $ | 2,353,507 | 197,164 | $ | 2,162,737 | ||||||||
Shares issued in reinvestment of dividends | 168,684 | 1,693,455 | 47,237 | 519,285 | ||||||||||
Shares reacquired | (1,707,045 | ) | (17,094,002 | ) | (305,028 | ) | (3,323,288 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | (1,304,004 | ) | (13,047,040 | ) | (60,627 | ) | (641,266 | ) | ||||||
Shares issued upon conversion from Class A | (1,813,094 | ) | (18,214,337 | ) | (198,254 | ) | (2,175,884 | ) | ||||||
Net increase (decrease) in shares outstanding | (3,117,098 | ) | $ | (31,261,377 | ) | (258,881 | ) | $ | (2,817,150 | ) | ||||
High Income Series Class B | Insured Series Class B | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Year Ended April 30, 2004 | ||||||||||||||
Shares sold | 890,244 | $ | 9,045,150 | 731,337 | $ | 8,360,381 | ||||||||
Shares issued in reinvestment of dividends | 430,037 | 4,363,278 | 192,647 | 2,181,194 | ||||||||||
Shares reacquired | (3,450,421 | ) | (34,941,711 | ) | (939,519 | ) | (10,655,967 | ) | ||||||
Net increase (decrease) in shares outstanding before conversion | (2,130,140 | ) | (21,533,283 | ) | (15,535 | ) | (114,392 | ) | ||||||
Shares issued upon conversion into Class A | (2,483,978 | ) | (25,324,224 | ) | (504,418 | ) | (5,847,494 | ) | ||||||
Net increase (decrease) in shares outstanding | (4,614,118 | ) | $ | (46,857,507 | ) | (519,953 | ) | $ | (5,961,886 | ) | ||||
High Income Series Class C | Insured Series Class C | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Six Months Ended October 31, 2004 | ||||||||||||||
Shares sold | 55,654 | $ | 560,854 | 120,740 | $ | 1,339,940 | ||||||||
Shares issued in reinvestment of dividends | 29,963 | 300,959 | 6,718 | 73,831 | ||||||||||
Shares reacquired | (269,441 | ) | (2,701,912 | ) | (103,753 | ) | (1,139,780 | ) | ||||||
Net increase (decrease) in shares outstanding | (183,824 | ) | $ | (1,840,099 | ) | 23,705 | $ | 273,991 | ||||||
Dryden Municipal Bond Fund | 55 |
Notes to Financial Statements
Cont’d
High Income Series Class C | Insured Series Class C | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Year Ended April 30, 2004 | ||||||||||||||
Shares sold | 195,467 | $ | 1,984,234 | 114,819 | $ | 1,320,672 | ||||||||
Shares issued in reinvestment of dividends | 67,249 | 682,480 | 29,002 | 328,359 | ||||||||||
Shares reacquired | (602,755 | ) | (6,102,370 | ) | (173,459 | ) | (1,981,231 | ) | ||||||
Net increase (decrease) in shares outstanding | (340,039 | ) | $ | (3,435,656 | ) | (29,638 | ) | $ | (332,200 | ) | ||||
High Income Series Class Z | Insured Series Class Z | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Six Months Ended October 31, 2004 | ||||||||||||||
Shares sold | 924,032 | $ | 9,308,040 | 286,184 | $ | 3,159,544 | ||||||||
Shares issued in reinvestment of dividends | 17,612 | 177,114 | 5,277 | 57,981 | ||||||||||
Shares reacquired | (1,193,974 | ) | (11,955,120 | ) | (414,204 | ) | (4,553,795 | ) | ||||||
Net increase (decrease) in shares outstanding | (252,330 | ) | $ | (2,469,966 | ) | (122,743 | ) | $ | (1,336,270 | ) | ||||
High Income Series Class Z | Insured Series Class Z | |||||||||||||
Shares | Amount | Shares | Amount | |||||||||||
Year Ended April 30, 2004 | ||||||||||||||
Shares sold | 1,212,110 | $ | 12,275,195 | 255,063 | $ | 2,897,891 | ||||||||
Shares issued in reinvestment of dividends | 52,458 | 531,741 | 26,088 | 294,948 | ||||||||||
Shares reacquired | (1,374,892 | ) | (13,886,454 | ) | (492,160 | ) | (5,648,904 | ) | ||||||
Net increase (decrease) in shares outstanding | (110,324 | ) | $ | (1,079,518 | ) | (211,009 | ) | $ | (2,456,065 | ) | ||||
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Financial Highlights
OCTOBER 31, 2004 | SEMIANNUAL REPORT |
Dryden Municipal Bond Fund/High Income Series & Insured Series
Financial Highlights
(Unaudited)
Class A | ||||
Six Months Ended October 31, 2004 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 9.99 | ||
Income from investment operations | ||||
Net investment income | .26 | |||
Net realized and unrealized gain (loss) on investment transactions | .22 | |||
Total from investment operations | .48 | |||
Less Dividends: | ||||
Dividends from net investment income | (.26 | ) | ||
Net asset value, end of period | $ | 10.21 | ||
Total Return(a): | 4.83 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 465,596 | ||
Average net assets (000) | $ | 455,396 | ||
Ratios to average net assets: | ||||
Expenses, including distribution fees(c) | .87 | %(d) | ||
Expenses, excluding distribution fees | .62 | %(d) | ||
Net investment income | 5.09 | %(d) | ||
For Class A, B, C and Z shares: | ||||
Portfolio turnover rate | 17 | %(e) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Effective May 1, 2001, the Prudential Municipal Bond Fund/High Income Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income per share by $.01, decrease net realized and unrealized gain (loss) per share by $.01 and increase the ratio of net investment income from 5.84% to 5.87%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation. |
(c) | The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .25 of 1% on the average daily net assets of the Class A shares. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
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Class A | ||||||||||||||||||
Year Ended April 30, | ||||||||||||||||||
2004 | 2003 | 2002(b) | 2001 | 2000 | ||||||||||||||
$ | 10.11 | $ | 10.06 | $ | 10.11 | $ | 10.22 | $ | 11.21 | |||||||||
.53 | .56 | .61 | .61 | .63 | ||||||||||||||
(.12 | ) | .04 | (.06 | ) | (.12 | ) | (.99 | ) | ||||||||||
.41 | .60 | .55 | .49 | (.36 | ) | |||||||||||||
(.53 | ) | (.55 | ) | (.60 | ) | (.60 | ) | (.63 | ) | |||||||||
$ | 9.99 | $ | 10.11 | $ | 10.06 | $ | 10.11 | $ | 10.22 | |||||||||
4.13 | % | 6.15 | % | 5.53 | % | 4.94 | % | (3.31 | )% | |||||||||
$ | 457,184 | $ | 491,218 | $ | 501,501 | $ | 522,556 | $ | 503,874 | |||||||||
$ | 479,691 | $ | 496,597 | $ | 517,930 | $ | 527,117 | $ | 506,888 | |||||||||
.87 | % | .85 | % | .84 | % | .84 | % | .82 | % | |||||||||
.62 | % | .60 | % | .59 | % | .59 | % | .57 | % | |||||||||
5.25 | % | 5.53 | % | 5.87 | % | 6.05 | % | 5.86 | % | |||||||||
89 | % | 88 | % | 58 | % | 46 | % | 27 | % |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 59 |
Financial Highlights
(Unaudited) Cont’d
Class B | ||||
Six Months Ended October 31, 2004 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 10.00 | ||
Income from investment operations | ||||
Net investment income | .25 | |||
Net realized and unrealized gain (loss) on investment transactions | .21 | |||
Total from investment operations | .46 | |||
Less Dividends: | ||||
Dividends from net investment income | (.24 | ) | ||
Net asset value, end of period | $ | 10.22 | ||
Total Return(a): | 4.70 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 164,855 | ||
Average net assets (000) | $ | 177,230 | ||
Ratios to average net assets: | ||||
Expenses, including distribution fees | 1.12 | %(c) | ||
Expenses, excluding distribution fees | .62 | %(c) | ||
Net investment income | 4.84 | %(c) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Effective May 1, 2001, the Prudential Municipal Bond Fund/High Income Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income and decrease net realized and unrealized gain (loss) per share by less than $.005 and increase the ratio of net investment income from 5.59% to 5.62%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation. |
(c) | Annualized. |
See Notes to Financial Statements.
60 | Visit our website at www.jennisondryden.com |
Class B | ||||||||||||||||||
Year Ended April 30, | ||||||||||||||||||
2004 | 2003 | 2002(b) | 2001 | 2000 | ||||||||||||||
$ | 10.11 | $ | 10.06 | $ | 10.11 | $ | 10.22 | $ | 11.21 | |||||||||
.51 | .54 | .58 | .59 | .60 | ||||||||||||||
(.12 | ) | .04 | (.06 | ) | (.13 | ) | (.99 | ) | ||||||||||
.39 | .58 | .52 | .46 | (.39 | ) | |||||||||||||
(.50 | ) | (.53 | ) | (.57 | ) | (.57 | ) | (.60 | ) | |||||||||
$ | 10.00 | $ | 10.11 | $ | 10.06 | $ | 10.11 | $ | 10.22 | |||||||||
3.95 | % | 5.88 | % | 5.27 | % | 4.68 | % | (3.55 | )% | |||||||||
$ | 192,517 | $ | 241,311 | $ | 285,581 | $ | 324,299 | $ | 457,841 | |||||||||
$ | 219,376 | $ | 264,067 | $ | 307,192 | $ | 375,632 | $ | 559,879 | |||||||||
1.12 | % | 1.10 | % | 1.09 | % | 1.09 | % | 1.07 | % | |||||||||
.62 | % | .60 | % | .59 | % | .59 | % | .57 | % | |||||||||
5.00 | % | 5.31 | % | 5.62 | % | 5.78 | % | 5.59 | % |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 61 |
Financial Highlights
(Unaudited) Cont’d
Class C | ||||
Six Months Ended October 31, 2004 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 10.00 | ||
Income from investment operations | ||||
Net investment income | .23 | |||
Net realized and unrealized gain (loss) on investment transactions | .22 | |||
Total from investment operations | .45 | |||
Less Dividends: | ||||
Dividends from net investment income | (.23 | ) | ||
Net asset value, end of period | $ | 10.22 | ||
Total Return(a): | 4.57 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 23,257 | ||
Average net assets (000) | $ | 23,589 | ||
Ratios to average net assets: | ||||
Expenses, including distribution fees(c) | 1.37 | %(d) | ||
Expenses, excluding distribution fees | .62 | %(d) | ||
Net investment income | 4.59 | %(d) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Effective May 1, 2001, the Prudential Municipal Bond Fund/High Income Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income and decrease net realized and unrealized gain (loss) per share by less than $.005 and increase the ratio of net investment income from 5.35% to 5.38%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation. |
(c) | The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .75 of 1% on the average daily net assets of the Class C shares. |
(d) | Annualized. |
See Notes to Financial Statements.
62 | Visit our website at www.jennisondryden.com |
Class C | ||||||||||||||||||
Year Ended April 30, | ||||||||||||||||||
2004 | 2003 | 2002(b) | 2001 | 2000 | ||||||||||||||
$ | 10.11 | $ | 10.06 | $ | 10.11 | $ | 10.22 | $ | 11.21 | |||||||||
.48 | .51 | .55 | .56 | .57 | ||||||||||||||
(.11 | ) | .04 | (.05 | ) | (.12 | ) | (.99 | ) | ||||||||||
.37 | .55 | .50 | .44 | (.42 | ) | |||||||||||||
(.48 | ) | (.50 | ) | (.55 | ) | (.55 | ) | (.57 | ) | |||||||||
$ | 10.00 | $ | 10.11 | $ | 10.06 | $ | 10.11 | $ | 10.22 | |||||||||
3.69 | % | 5.62 | % | 5.00 | % | 4.42 | % | (3.79 | )% | |||||||||
$ | 24,599 | $ | 28,313 | $ | 26,619 | $ | 27,263 | $ | 30,061 | |||||||||
$ | 26,968 | $ | 27,121 | $ | 27,814 | $ | 28,028 | $ | 32,762 | |||||||||
1.37 | % | 1.35 | % | 1.34 | % | 1.34 | % | 1.32 | % | |||||||||
.62 | % | .60 | % | .59 | % | .59 | % | .57 | % | |||||||||
4.75 | % | 5.04 | % | 5.38 | % | 5.55 | % | 5.36 | % |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 63 |
Financial Highlights
(Unaudited) Cont’d
Class Z | ||||
Six Months Ended October 31, 2004 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 9.98 | ||
Income from investment operations | ||||
Net investment income | .28 | |||
Net realized and unrealized gain (loss) on investment transactions | .21 | |||
Total from investment operations | .49 | |||
Less Dividends: | ||||
Dividends from net investment income | (.27 | ) | ||
Net asset value, end of period | $ | 10.20 | ||
Total Return(a): | 4.96 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 11,820 | ||
Average net assets (000) | $ | 10,958 | ||
Ratios to average net assets: | ||||
Expenses, including distribution fees | .62 | %(c) | ||
Expenses, excluding distribution fees | .62 | %(c) | ||
Net investment income | 5.35 | %(c) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Effective May 1, 2001, the Prudential Municipal Bond Fund/High Income Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income per share by $.01 and decrease net realized and unrealized gain (loss) per share by $.01 and increase the ratio of net investment income from 6.11% to 6.14%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation. |
(c) | Annualized. |
See Notes to Financial Statements.
64 | Visit our website at www.jennisondryden.com |
Class Z | ||||||||||||||||||
Year Ended April 30, | ||||||||||||||||||
2004 | 2003 | 2002(b) | 2001 | 2000 | ||||||||||||||
$ | 10.10 | $ | 10.05 | $ | 10.10 | $ | 10.21 | $ | 11.20 | |||||||||
.56 | .59 | .63 | .64 | .65 | ||||||||||||||
(.12 | ) | .04 | (.06 | ) | (.13 | ) | (.99 | ) | ||||||||||
.44 | .63 | .57 | .51 | (.34 | ) | |||||||||||||
(.56 | ) | (.58 | ) | (.62 | ) | (.62 | ) | (.65 | ) | |||||||||
$ | 9.98 | $ | 10.10 | $ | 10.05 | $ | 10.10 | $ | 10.21 | |||||||||
4.41 | % | 6.41 | % | 5.79 | % | 5.19 | % | (3.07 | )% | |||||||||
$ | 14,087 | $ | 15,361 | $ | 7,000 | $ | 5,966 | $ | 7,802 | |||||||||
$ | 15,572 | $ | 10,813 | $ | 6,368 | $ | 7,182 | $ | 10,493 | |||||||||
.62 | % | .60 | % | .59 | % | .59 | % | .57 | % | |||||||||
.62 | % | .60 | % | .59 | % | .59 | % | .57 | % | |||||||||
5.51 | % | 5.78 | % | 6.14 | % | 6.32 | % | 6.07 | % |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/High Income Series | 65 |
Financial Highlights
(Unaudited) Cont’d
Class A | ||||
Six Months Ended October 31, 2004 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 10.90 | ||
Income from investment operations | ||||
Net investment income | .20 | |||
Net realized and unrealized gain (loss) on investment transactions | .29 | |||
Total from investment operations | .49 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (.21 | ) | ||
Distributions from net realized capital gains | — | |||
Total dividends and distributions | (.21 | ) | ||
Net asset value, end of period | $ | 11.18 | ||
Total Return(a): | 4.56 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 252,428 | ||
Average net assets (000) | $ | 251,655 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees(c) | .90 | %(d) | ||
Expenses, excluding distribution and service (12b-1) fees | .65 | %(d) | ||
Net investment income | 3.68 | %(d) | ||
For Class A, B, C and Z shares: | ||||
Portfolio turnover rate | 12 | %(e) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Effective May 1, 2001, the Prudential Municipal Bond Fund/Insured Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income and to decrease net realized and unrealized gains per share by less than $.005 and increase the ratio of net investment income from 4.62% to 4.64%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation. |
(c) | The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .25 of 1% on the average daily net assets of the Class A shares. |
(d) | Annualized. |
(e) | Not annualized. |
See Notes to Financial Statements.
66 | Visit our website at www.jennisondryden.com |
Class A | ||||||||||||||||||
Year Ended April 30, | ||||||||||||||||||
2004 | 2003 | 2002(b) | 2001 | 2000 | ||||||||||||||
$ | 11.59 | $ | 11.08 | $ | 10.91 | $ | 10.40 | $ | 11.18 | |||||||||
.42 | .49 | .52 | .51 | .51 | ||||||||||||||
(.39 | ) | .51 | .17 | .51 | (.78 | ) | ||||||||||||
.03 | 1.00 | .69 | 1.02 | (0.27 | ) | |||||||||||||
(.42 | ) | (.49 | ) | (.52 | ) | (.51 | ) | (.51 | ) | |||||||||
(.30 | ) | — | — | — | — | |||||||||||||
(.72 | ) | (.49 | ) | (.52 | ) | (.51 | ) | (.51 | ) | |||||||||
$ | 10.90 | $ | 11.59 | $ | 11.08 | $ | 10.91 | $ | 10.40 | |||||||||
.13 | % | 9.17 | % | 6.38 | % | 9.90 | % | (2.38 | )% | |||||||||
$ | 257,738 | $ | 281,077 | $ | 261,227 | $ | 265,718 | $ | 238,690 | |||||||||
$ | 271,328 | $ | 272,608 | $ | 269,146 | $ | 254,718 | $ | 243,756 | |||||||||
.90 | % | .88 | % | .87 | % | .89 | % | .88 | % | |||||||||
.65 | % | .63 | % | .62 | % | .64 | % | .63 | % | |||||||||
3.72 | % | 4.35 | % | 4.64 | % | 4.72 | % | 4.78 | % | |||||||||
71 | % | 59 | % | 22 | % | 38 | % | 26 | % |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 67 |
Financial Highlights
(Unaudited) Cont’d
Class B | ||||
Six Months Ended October 31, 2004 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 10.91 | ||
Income from investment operations | ||||
Net investment income | .19 | |||
Net realized and unrealized gain (loss) on investment transactions | .29 | |||
Total from investment operations | .48 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (.19 | ) | ||
Distributions from net realized capital gains | — | |||
Total dividends and distributions | (.19 | ) | ||
Net asset value, end of period | $ | 11.20 | ||
Total Return(a): | 4.52 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 49,887 | ||
Average net assets (000) | $ | 49,965 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | 1.15 | %(c) | ||
Expenses, excluding distribution and service (12b-1) fees | .65 | %(c) | ||
Net investment income | 3.43 | %(c) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Effective May 1, 2001, the Prudential Municipal Bond Fund/Insured Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income and decrease net realized and unrealized gains per share by less than $.005 and increase the ratio of net investment income from 4.38% to 4.40%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation. |
(c) | Annualized. |
See Notes to Financial Statements.
68 | Visit our website at www.jennisondryden.com |
Class B | ||||||||||||||||||
Year Ended April 30, | ||||||||||||||||||
2004 | 2003 | 2002(b) | 2001 | 2000 | ||||||||||||||
$ | 11.60 | $ | 11.09 | $ | 10.92 | $ | 10.41 | $ | 11.19 | |||||||||
.40 | .47 | .49 | .48 | .48 | ||||||||||||||
(.40 | ) | .50 | .17 | .51 | (.78 | ) | ||||||||||||
— | .97 | .66 | .99 | (0.30 | ) | |||||||||||||
(.39 | ) | (.46 | ) | (.49 | ) | (.48 | ) | (.48 | ) | |||||||||
(.30 | ) | — | — | — | — | |||||||||||||
(.69 | ) | (.46 | ) | (.49 | ) | (.48 | ) | (.48 | ) | |||||||||
$ | 10.91 | $ | 11.60 | $ | 11.09 | $ | 10.92 | $ | 10.41 | |||||||||
(.14 | )% | 8.90 | % | 6.12 | % | 9.63 | % | (2.62 | )% | |||||||||
$ | 51,432 | $ | 60,724 | $ | 55,145 | $ | 55,459 | $ | 91,989 | |||||||||
$ | 56,466 | $ | 58,003 | $ | 54,136 | $ | 70,084 | $ | 131,052 | |||||||||
1.15 | % | 1.13 | % | 1.12 | % | 1.14 | % | 1.13 | % | |||||||||
.65 | % | .63 | % | .62 | % | .64 | % | .63 | % | |||||||||
3.47 | % | 4.10 | % | 4.40 | % | 4.48 | % | 4.51 | % |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 69 |
Financial Highlights
(Unaudited) Cont’d
Class C | ||||
Six Months Ended October 31, 2004 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 10.91 | ||
Income from investment operations | ||||
Net investment income | .17 | |||
Net realized and unrealized gain (loss) on investment transactions | .30 | |||
Total from investment operations | .47 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (.18 | ) | ||
Distributions from net realized capital gains | — | |||
Total dividends and distributions | (.18 | ) | ||
Net asset value, end of period | $ | 11.20 | ||
Total Return(a): | 4.39 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 8,096 | ||
Average net assets (000) | $ | 7,604 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees(c) | 1.40 | %(d) | ||
Expenses, excluding distribution and service (12b-1) fees | .65 | %(d) | ||
Net investment income | 3.18 | %(d) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Effective May 1, 2001, the Prudential Municipal Bond Fund/Insured Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income per share by $.01, decrease net realized and unrealized gains per share by $.01 and increase the ratio of net investment income from 4.14% to 4.17%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation. |
(c) | The distributor of the Fund contractually agreed to limit its distribution and service (12b-1) fees to .75 of 1% on the average daily net assets of the Class C shares. |
(d) | Annualized. |
See Notes to Financial Statements.
70 | Visit our website at www.jennisondryden.com |
Class C | ||||||||||||||||||
Year Ended April 30, | ||||||||||||||||||
2004 | 2003 | 2002(b) | 2001 | 2000 | ||||||||||||||
$ | 11.60 | $ | 11.09 | $ | 10.92 | $ | 10.41 | $ | 11.19 | |||||||||
.37 | .44 | .47 | .45 | .46 | ||||||||||||||
(.40 | ) | .50 | .16 | .51 | (.78 | ) | ||||||||||||
(0.03 | ) | .94 | .63 | .96 | (0.32 | ) | ||||||||||||
(.36 | ) | (.43 | ) | (.46 | ) | (.45 | ) | (.46 | ) | |||||||||
(.30 | ) | — | — | — | — | |||||||||||||
(.66 | ) | (.43 | ) | (.46 | ) | (.45 | ) | (.46 | ) | |||||||||
$ | 10.91 | $ | 11.60 | $ | 11.09 | $ | 10.92 | $ | 10.41 | |||||||||
(.39 | )% | 8.63 | % | 5.86 | % | 9.37 | % | (2.86 | )% | |||||||||
$ | 7,629 | $ | 8,457 | $ | 6,456 | $ | 4,085 | $ | 2,949 | |||||||||
$ | 8,329 | $ | 7,559 | $ | 5,320 | $ | 3,413 | $ | 2,988 | |||||||||
1.40 | % | 1.38 | % | 1.37 | % | 1.39 | % | 1.38 | % | |||||||||
.65 | % | .63 | % | .62 | % | .64 | % | .63 | % | |||||||||
3.21 | % | 3.85 | % | 4.17 | % | 4.23 | % | 4.29 | % |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 71 |
Financial Highlights
(Unaudited) Cont’d
Class Z | ||||
Six Months Ended October 31, 2004 | ||||
Per Share Operating Performance: | ||||
Net Asset Value, Beginning Of Period | $ | 10.89 | ||
Income from investment operations | ||||
Net investment income | .22 | |||
Net realized and unrealized gain (loss) on investment transactions | .28 | |||
Total from investment operations | .50 | |||
Less Dividends and Distributions: | ||||
Dividends from net investment income | (.22 | ) | ||
Distributions from net realized capital gains | — | |||
Total dividends and distributions | (.22 | ) | ||
Net asset value, end of period | $ | 11.17 | ||
Total Return(a): | 4.70 | % | ||
Ratios/Supplemental Data: | ||||
Net assets, end of period (000) | $ | 5,126 | ||
Average net assets (000) | $ | 5,572 | ||
Ratios to average net assets: | ||||
Expenses, including distribution and service (12b-1) fees | .65 | %(c) | ||
Expenses, excluding distribution and service (12b-1) fees | .65 | %(c) | ||
Net investment income | 3.94 | %(c) |
(a) | Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns for periods less than one full year are not annualized. |
(b) | Effective May 1, 2001, the Prudential Municipal Bond Fund/Insured Series has adopted the provisions of the AICPA Audit and Accounting Guide for Investment Companies and began accreting market discount on debt securities. The effect of this change for the year ended April 30, 2002 was to increase net investment income per share by $.01, decrease net realized and unrealized gains per share by $.01 and increase the ratio of net investment income from 4.88% to 4.91%. Per share amounts and ratios for the years ended prior to April 30, 2002 have not been restated to reflect this change in presentation. |
(c) | Annualized. |
See Notes to Financial Statements.
72 | Visit our website at www.jennisondryden.com |
Class Z | ||||||||||||||||||
Year Ended April 30, | ||||||||||||||||||
2004 | 2003 | 2002(b) | 2001 | 2000 | ||||||||||||||
$ | 11.58 | $ | 11.07 | $ | 10.91 | $ | 10.40 | $ | 11.18 | |||||||||
.45 | .52 | .55 | .53 | .54 | ||||||||||||||
(.39 | ) | .50 | .15 | .51 | (.78 | ) | ||||||||||||
.06 | 1.02 | .70 | 1.04 | (0.24 | ) | |||||||||||||
(.45 | ) | (.51 | ) | (.54 | ) | (.53 | ) | (.54 | ) | |||||||||
(.30 | ) | — | — | — | — | |||||||||||||
(.75 | ) | (.51 | ) | (.54 | ) | (.53 | ) | (.54 | ) | |||||||||
$ | 10.89 | $ | 11.58 | $ | 11.07 | $ | 10.91 | $ | 10.40 | |||||||||
.40 | % | 9.45 | % | 6.55 | % | 10.17 | % | (2.13 | )% | |||||||||
$ | 6,330 | $ | 9,179 | $ | 4,238 | $ | 2,182 | $ | 1,429 | |||||||||
$ | 7,365 | $ | 6,605 | $ | 3,152 | $ | 1,993 | $ | 1,960 | |||||||||
.65 | % | .63 | % | .62 | % | .64 | % | .63 | % | |||||||||
.65 | % | .63 | % | .62 | % | .64 | % | .63 | % | |||||||||
3.98 | % | 4.61 | % | 4.91 | % | 4.99 | % | 4.94 | % |
See Notes to Financial Statements.
Dryden Municipal Bond Fund/Insured Series | 73 |
Additional Information
(Unaudited)
The Fund files a complete portfolio of holdings on the Fund’s first and third quarter-end on Form N-Q with the Securities and Exchange Commission (the “Commission”). Form N-Q will be available on the Commission’s website at http://www.sec.gov or by visiting the Commission’s Public Reference Room. For information on the Commission’s Public Reference Room visit the Commission’s website.
74 | 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 Series’ investment adviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Series. 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 (the Commission) website at http://www.sec.gov. Information regarding how the Series voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2004, is available on the Fund’s website at http://www.prudential.com and on the Commission’s website at http://www.sec.gov. |
TRUSTEES |
David E.A. Carson • Robert F. Gunia • Robert E. La Blanc • Douglas H. McCorkindale • Richard A. Redeker • Judy A. Rice • Robin B. Smith • Stephen D. Stoneburn • Clay T. Whitehead |
OFFICERS |
Judy A. Rice, President • Robert F. Gunia, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • William V. Healey, Chief Legal Officer • Jonathan D. Shain, Assistant Secretary • Deborah A. Docs, Secretary • Maryanne Ryan, Anti-Money Laundering Compliance Officer • Lee D. Augsburger, Chief Compliance Officer |
MANAGER | Prudential Investments LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
INVESTMENT ADVISER | Prudential Investment Management, Inc. | Gateway Center Two 100 Mulberry Street Newark, NJ 07102 | ||
DISTRIBUTOR | Prudential Investment Management Services LLC | Gateway Center Three 100 Mulberry Street Newark, NJ 07102 | ||
CUSTODIAN | State Street Bank and Trust Company | One Heritage Drive North Quincy, MA 02171 | ||
TRANSFER AGENT | Prudential Mutual Fund Services LLC | PO Box 8098 Philadelphia, PA 19176 | ||
INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | KPMG LLP | 757 Third Avenue New York, NY 10017 | ||
FUND COUNSEL | Shearman & Sterling LLP | 599 Lexington Avenue New York, NY 10022 |
Dryden Municipal Bond Fund/High Income Series | ||||||||||||
Share Class | A | B | C | Z | ||||||||
NASDAQ | PRHAX | PMHYX | PHICX | PHIZX | ||||||||
CUSIP | 262467103 | 262467202 | 262467301 | 262467400 | ||||||||
Dryden Municipal Bond Fund/Insured Series | ||||||||||||
Share Class | A | B | C | Z | ||||||||
NASDAQ | PMIAX | PMINX | PMICX | PMIZX | ||||||||
CUSIP | 262467509 | 262467608 | 262467707 | 262467806 | ||||||||
An investor should consider the investment objectives, risks, and 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. |
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 October 31, 2004, were not audited, and accordingly, no auditor’s opinion is expressed on them. |
Prudential Fixed Income is a business unit of Prudential Investment Management, Inc. (PIM). Quantitative Management Associates LLC, Jennison Associates LLC, and PIM are registered investment advisers and Prudential Financial companies. |
E-DELIVERY |
To receive your mutual fund documents on-line, go to www.icsdelivery.com/prudential/funds website address. |
SHAREHOLDER COMMUNICATIONS WITH TRUSTEES |
Shareholders of the Fund can communicate directly with the Board of Trustees by writing to the Chair of the Board, Dryden Municipal Bond Fund/High Income Series & Insured Series, PO Box 13964, Philadelphia, PA 19176. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at Dryden Municipal Bond Fund/High Income Series & Insured Series, PO Box 13964, Philadelphia, PA 19176. Such communications to the Board or individual Trustees are not screened before being delivered to the addressee. |
AVAILABILITY OF QUARTERLY PORTFOLIO SCHEDULE |
The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (the “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 http://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 of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund will provide a full list of its portfolio holdings as of the end of each fiscal quarter on its website at www.jennisondryden.com within 60 days after the end of the 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 Municipal Bond Fund/High Income Series | ||||||||||||
Share Class | A | B | C | Z | ||||||||
NASDAQ | PRHAX | PMHYX | PHICX | PHIZX | ||||||||
CUSIP | 262467103 | 262467202 | 262467301 | 262467400 | ||||||||
Dryden Municipal Bond Fund/Insured Series | ||||||||||||
Share Class | A | B | C | Z | ||||||||
NASDAQ | PMIAX | PMINX | PMICX | PMIZX | ||||||||
CUSIP | 262467509 | 262467608 | 262467707 | 262467806 | ||||||||
MF133E2 IFS-A098942 Ed. 12/2004
Item 2 – Code of Ethics – Not required as this is not an annual filing.
Item 3 – Audit Committee Financial Expert – Not applicable with semi-annual filing
Item 4 – Principal Accountant Fees and Services – Not applicable with semi-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 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.
Item 9 – Submission of Matters to a Vote of Security Holders:
On September 1, 2004, the Board of Trustees adopted the following nominations and communications policy:
Nominating and Governance Committee. The Nominating and Governance Committee of the Board of Trustees is responsible for nominating trustees and making recommendations to the Board concerning Board composition, committee structure and governance, director education, and governance practices. The Board has determined that each member of the Nominating and Governance Committee is not an “interested person” as defined in the 1940 Act.
The Nominating and Governance Committee Charter is available on the Fund’s website at www.jennisondryden.com.
Selection of Trustee Nominees. The Nominating and Governance Committee is responsible for considering nominees for trustees at such times as it considers electing new members to the Board. The Nominating and Governance Committee may consider recommendations by business and personal contacts of current Board members, and by executive search firms which the Committee may engage from time to time and will also consider shareholder recommendations. The Nominating and Governance Committee has not established specific, minimum qualifications that it believes must be met by a nominee. In evaluating nominees, the Nominating and Governance Committee considers, among other things, an individual’s background, skills, and experience; whether the individual is an “interested person” as defined in the 1940 Act; and whether the individual would be deemed an “audit committee financial expert” within the meaning of applicable SEC rules. The Nominating and Governance Committee also considers whether the individual’s background, skills, and experience will complement the background, skills, and experience of other nominees and will contribute to the diversity of the Board. There are no differences in the manner in which the Nominating and Governance Committee evaluates nominees for the Board based on whether the nominee is recommended by a shareholder.
A shareholder who wishes to recommend a trustee nominee should submit his or her recommendation in writing to the Chair of the Board (Robin Smith) or the Chair of the Nominating and Governance Committee (Richard Redeker), in either case at Dryden
Municipal Bond Fund, P.O. Box 13964, Philadelphia, PA 19176. At a minimum, the recommendation should include:
• | the name, address, and business, educational, and/or other pertinent background of the person being recommended; |
• | a statement concerning whether the person is an “interested person” as defined in the Investment Company Act of 1940; |
• | any other information that the Fund would be required to include in a proxy statement concerning the person if he or she was nominated; and |
• | the name and address of the person submitting the recommendation, together with the number of Fund shares held by such person and the period for which the shares have been held. |
The recommendation also can include any additional information which the person submitting it believes would assist the Nominating and Governance Committee in evaluating the recommendation.
Shareholders should note that a person who owns securities issued by Prudential Financial, Inc. (the parent company of the Fund’s investment adviser) would be deemed an “interested person” under the 1940 Act. In addition, certain other relationships with Prudential Financial, Inc. or its subsidiaries, with registered broker-dealers, or with the Fund’s outside legal counsel may cause a person to be deemed an “interested person.”
Before the Nominating and Governance Committee decides to nominate an individual to the Board, Committee members and other Board members customarily interview the individual in person. In addition, the individual customarily is asked to complete a detailed questionnaire which is designed to elicit information which must be disclosed under SEC and stock exchange rules and to determine whether the individual is subject to any statutory disqualification from serving on the board of a registered investment company.
Shareholder Communications with Trustees
Shareholders of the Fund can communicate directly with the Board of Trustees by writing to the Chair of the Board, Dryden Municipal Bond Fund, P.O. Box 13964, Philadelphia, PA 19176. Shareholders can communicate directly with an individual Trustee by writing to that director at Dryden Municipal Bond Fund, P.O. Box 13964, Philadelphia, PA 19176. Such communications to the Board or individual trustees are not screened before being delivered to the addressee.
Item 10 – 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 have been no significant changes in the registrant’s internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. |
Item 11 – Exhibits
(a) | Code of Ethics – Not applicable with semi-annual filing. |
(b) | Certifications pursuant to Section 302 and 906 of the Sarbanes-Oxley Act – Attached hereto |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Dryden Municipal Bond Fund | |
By (Signature and Title)* | /s/ JONATHAN D. SHAIN | |
Jonathan D. Shain | ||
Assistant Secretary |
Date December 21, 2004
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 December 21, 2004
By (Signature and Title)* | /s/ GRACE C. TORRES | |
Grace C. Torres | ||
Treasurer and Principal Financial Officer |
Date December 21, 2004
* | Print the name and title of each signing officer under his or her signature. |