Target Portfolio Trust NCSR Certified annual shareholder report (management investment company)

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:		811-07064

Exact name of registrant as specified in charter:		The Target Portfolio Trust

Address of principal executive offices:		Gateway Center 3, 100 Mulberry Street, Newark, New Jersey 07102

Name and address of agent for service:		Deborah A. Docs Gateway Center 3, 100 Mulberry Street, Newark, New Jersey 07102

Registrant’s telephone number, including area code:		973-367-7521

Date of fiscal year end:		12/31/2004

Date of reporting period:		12/31/2004

Item 1 – Reports to Stockholders – [ INSERT REPORT ]

LOGO

The TARGETPortfolio Trust^®

Annual Report

December 31, 2004

TARGET

A STRUCTURED AND PERSONALIZED INVESTMENT PROGRAM

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 Trust’s portfolios’ securities are for the period covered by this report and are subject to change thereafter.

LOGO


Dear TARGET Shareholder:		February 14, 2005

We hope that you find the Annual report for The TARGET Portfolio Trust informative and useful. Today many investors may be asking where they can find new growth opportunities. As a TARGET shareholder, we believe that you are uniquely positioned for domestic and global growth opportunities because you already have a strategic investment plan in place.

The TARGET program’s structured and professional approach to investing helps you “tune out” the noise of current market developments and allows you to concentrate on what’s really important—your long-term goals. It started with a personal plan that you and your financial professional constructed based on your reasons for investing, the time you have to reach your goals, and the level of risk you were willing to assume. Your financial professional worked closely with you to develop an appropriate asset allocation, and then the rest was relatively simple because there is a corresponding TARGET portfolio for each asset class. The managers for each portfolio are carefully chosen and are monitored by our team of experienced investment management analysts. These firms are among the leading institutional money managers available whose typical clients include pension funds, Fortune 500 companies, and very wealthy individuals.

Your TARGET program also evolves with your changing needs. Your financial professional should help you track your plan’s progress, stay informed of important developments, and assist you in determining whether you need to modify your portfolio. In these ways and more, the TARGET program seeks to make your investment goals a reality.

Thank you for your continued confidence.

Sincerely,

LOGO

Judy A. Rice, President

The TARGET Portfolio Trust


THE TARGET PORTFOLIO TRUST		1

Equity Portfolios Performance

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.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retail investors is 1.50%.


Equity Portfolios for years ended 12/31/04
	Total Returns¹ (Without TARGET Program Fee)		Average Annual Total Returns¹ (With TARGET Program Fee)
	One Year		One Year		Five Years		Ten Years
Large Capitalization Growth Portfolio	3.78	%	2.23	%	–9.19	%	8.97%
S&P 500 Index²	10.87		10.87		–2.30		12.07
Russell 1000 Growth Index²	6.30		6.30		–9.29		9.59
Lipper Large-Cap Core Funds Avg.³	7.79		7.79		–3.45		9.98

Large Capitalization Value Portfolio	18.87	%	17.10	%	7.32	%	11.02%
S&P 500 Index²	10.87		10.87		–2.30		12.07
Russell 1000 Value Index²	16.49		16.49		5.27		13.83
Lipper Multi-Cap Value Funds Avg.³	14.39		14.39		5.36		11.86

Small Capitalization Growth Portfolio	15.03	%	13.32	%	–4.88	%	5.53%
Russell 2000 Index²	18.33		18.33		6.61		11.54
Russell 2000 Growth Index²	14.31		14.31		–3.57		7.12
Lipper Small-Cap Growth Funds Avg.³	10.65		10.65		–1.82		9.44

Small Capitalization Value Portfolio	24.02	%	22.17	%	17.60	%	14.07%
Russell 2000 Index²	18.33		18.33		6.61		11.54
Russell 2000 Value Index²	22.25		22.25		17.23		15.17
Lipper Small-Cap Core Funds Avg.³	18.38		18.38		10.33		12.96

International Equity Portfolio	15.23	%	13.51	%	–3.31	%	5.08%
MSCI EAFE Index²	20.25		20.25		–1.13		5.62
Lipper International Funds Avg.³	20.14		20.14		–0.44		6.10


2		THE TARGET PORTFOLIO TRUST

maximum TARGET annual advisory fee of 1.50% for equity portfolios for retail investors. The maximum advisory fee for retirement accounts is 1.25% of equity portfolio assets. Returns in the table do not reflect the deduction of taxes that a shareholder would pay on portfolio distributions or following the redemption of portfolio shares.

²Investors cannot invest directly in an index. The returns for the benchmark indexes would be lower if they reflected deductions for TARGET program fees, portfolio operating expenses, sales charges, or taxes. The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of 500 stocks of large U.S. companies. It gives a broad look at how stock prices have performed. The Russell 1000 Growth Index contains those securities in the Russell 1000 Index with an above-average growth orientation. Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios, lower dividend yields, and higher forecasted growth rates. The Russell 1000 Value Index contains those securities in the Russell 1000 Index with a below-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios, higher dividend yields, and lower forecasted growth values. The Russell 2000 Index is an unmanaged index of the stocks of the 2,000 smallest U.S. companies included in the Russell 3000 Index. It gives a broad look at how the stock prices of smaller companies have performed. The Russell 2000 Growth Index contains those securities in the Russell 2000 Index with an above-average growth orientation. Companies in this index generally have higher price-to-book and price-to-earnings ratios. The Russell 2000 Value Index contains those securities in the Russell 2000 Index with a below-average growth orientation. Companies in this index generally have low price-to-earnings ratios, higher dividend yields, and lower forecasted growth values. The Morgan Stanley Capital International Europe, Australasia, and Far East Index (MSCI EAFE Index) is an unmanaged, weighted index that reflects stock price movements in Europe, Australasia, and the Far East. It gives a broad look at how foreign stocks have performed.

³The Lipper averages represent returns based on an average of all funds in the respective Lipper categories for the periods noted. The returns for the Lipper averages would be lower if they reflected deductions for TARGET program fees, portfolio operating expenses, sales charges, or taxes. Large-Cap Core funds invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) greater than 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Large-cap core funds have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value compared with the S&P 500 Index. Multi-Cap Value funds invest in a variety of market capitalization ranges without concentrating 75% of their equity assets in any one market capitalization range over an extended period of time. Multi-cap funds typically have between 25% and 75% of their assets invested in companies with market capitalizations (on a three-year weighted basis) above 300% of the dollar-weighted median market capitalization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Multi-cap value funds typically have a below-average price-to-earnings ratio and three-year sales-per-share growth value compared with the S&P 500 Index. Small-Cap Growth funds invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Small-cap growth funds typically have an above-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value compared with the S&P SmallCap 600 Index. Small-Cap Core funds invest at least 75% of their equity assets in companies with market capitalizations (on a three-year weighted basis) less than 250% of the dollar-weighted median of the smallest 500 of the middle 1,000 securities of the S&P SuperComposite 1500 Index. Small-cap core funds have more latitude in the companies in which they invest. These funds typically have an average price-to-earnings ratio and three-year sales-per-share growth value compared with the S&P SmallCap 600 Index. International funds invest their assets in securities with primary trading markets outside of the United States.


THE TARGET PORTFOLIO TRUST		3

Fixed Income Portfolios Performance


Fixed Income Portfolios for years ended 12/31/04
	Total Returns¹ (Without TARGET Program Fee)		Average Annual Total Returns¹ (with TARGET Program Fee)
	One Year		One Year		Five Years		Ten Years
International Bond Portfolio	3.71	%	2.67	%	3.03	%	2.45% (2.43)²
Citigroup Non-U.S. WGBI-Hedged³	5.17		5.17		5.90		8.39
Lipper International Income Funds Avg.⁴	10.47		10.47		8.62		7.50

Total Return Bond Portfolio	4.73	%	3.69	%	6.87	%	6.95%
Lehman Brothers U.S. Aggregate Bond Index³	4.34		4.34		7.71		7.72
Lipper Corporate Debt BBB-Rated Funds Avg.⁴	5.11		5.11		7.53		7.75

Intermediate-Term Bond Portfolio	3.19	%	2.16	%	5.83	%	6.22%
Lehman Brothers Int. Govt./Credit Bond Index³	3.04		3.04		7.21		7.16
Lipper Int. Inv.-Grade Debt Funds Avg.⁴	3.85		3.85		6.85		6.89

Mortgage Backed Securities Portfolio	3.68	%	2.64	%	5.33	%	5.92% (5.91)²
Lehman Brothers Mortgage-Backed Securities Index³	4.70		4.70		7.14		7.56
Citigroup Mortgage-Backed Securities Index³	4.83		4.83		7.21		7.57
Lipper U.S. Mortgage Funds Avg.⁴	3.68		3.68		6.33		6.57

¹Source: Prudential Investments LLC and Lipper Inc. Total returns assume the reinvestment of all dividends and distributions, and take into account all charges and expenses applicable to an investment in each portfolio. The one-year total returns do not reflect a deduction for the annual TARGET program fee. Returns would be lower if the fee were deducted. The average annual total returns for the TARGET portfolios assume the imposition of the maximum TARGET annual advisory fee of 1.00% for bond portfolios for retail investors. The maximum advisory fee for retirement accounts is 1.35% of bond portfolio assets. Returns in the table do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares.

²Without waiver of fees and/or expense subsidization, the portfolios’ returns would have been lower, as indicated in parentheses.

³Investors cannot invest directly in an index. The returns for the benchmark indexes would be lower if they reflected deductions for TARGET program fees, portfolio operating expenses, sales charges, or taxes. The Citigroup


4		THE TARGET PORTFOLIO TRUST

Non-U.S. World Government Bond Index Hedged (WGBI-Hedged) is an unmanaged index of approximately 600 high-quality bonds with foreign currency exposure translated to the U.S. dollar. It gives a broad look at how foreign bonds have performed. The Lehman Brothers U.S. Aggregate Bond Index (LABI) is an unmanaged index of investment-grade securities issued by the U.S. government and its agencies and by corporations with between 1 and 10 years remaining to maturity. It gives a broad look at how bond prices of short- and intermediate-term bonds have performed. The Lehman Brothers Intermediate Government/Credit Bond Index is an unmanaged index of publicly traded U.S. government bonds and investment-grade corporate bonds with maturities of up to 10 years. It gives a broad look at how intermediate-term bonds have performed. The Lehman Brothers Mortgage-Backed Securities Index is a market capitalization-weighted index of 15- and 30-year fixed-rate securities backed by GNMA, FNMA, and FHLMC mortgage pools, and balloon mortgages with fixed-rate coupons. The Citigroup Mortgage-Backed Securities Index is an unmanaged index of 15- and 30-year mortgage-related securities issued by U.S. government agencies. Each of them gives a broad look at how mortgage-backed securities have performed.

⁴The Lipper averages represent returns based on an average of all funds in the respective Lipper categories for the periods noted. The returns for the Lipper averages would be lower if they reflected deductions for TARGET program fees, portfolio operating expenses, sales charges, or taxes. International Income funds invest primarily in U.S. dollar and non-U.S. dollar debt securities of issuers located in at least three countries, excluding the United States, except in periods of market weakness. Corporate Debt BBB-Rated funds invest primarily in corporate and government debt issues rated in the top four grades. Intermediate Investment-Grade Debt funds invest primarily in investment-grade debt issues (rated in the top four grades) with dollar-weighted average maturities of 5 to 10 years. U.S. Mortgage funds invest primarily in mortgages/securities issued or guaranteed as to principal and interest by the U.S. government and certain federal agencies.


THE TARGET PORTFOLIO TRUST		5

Money Market Portfolio Performance

Yields will fluctuate from time to time, and past performance does not guarantee future results. Current performance may be lower or higher than the past performance data quoted. The investment return and principal value will fluctuate, and shares, when sold, may be worth more or less than the original cost. For the most recent month-end performance update, call (800) 225-1852.


Money Market Portfolio as of 12/31/04
	Total Returns¹ (Without TARGET Program Fee) One Year		Net Asset Value (NAV)		7-Day Current Yield
U.S. Government Money Market Portfolio	0.76	%	$	1.00	0.49	%
Lipper U.S. Government Money Market Funds Avg.²	0.63			N/A	N/A
iMoneyNet, Inc. All Taxable Money Market Funds Avg.³	N/A			N/A	1.60	%

²The Lipper average represents returns based on an average of all funds in the respective Lipper categories for the periods noted. The returns for the Lipper average would be lower if it reflected deductions for TARGET program fees, portfolio operating expenses, sales charges, or taxes. U.S. Government Money Market funds invest principally in financial instruments issued or guaranteed by the U.S. government, its agencies, or instrumentalities with dollar-weighted average maturities of less than 90 days. These funds intend to keep a constant net asset value.

³iMoneyNet, Inc. regularly reports a 7-day current yield on Tuesdays for taxable money market funds. This is the data of all funds in the iMoneyNet, Inc. All Taxable Money Market Funds Average category as of December 28, 2004, the closest date to the end of our reporting period.

An investment in the U.S. Government Money Market Portfolio (the Portfolio) is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Portfolio seeks to preserve the value of your investment at $1 per share, it is possible to lose money by investing in the Portfolio.


6		THE TARGET PORTFOLIO TRUST

Investment Advisers’ Report

Large Capitalization Growth Portfolio

The total return of the Large Capitalization Growth Portfolio, subadvised by Oak Associates, Ltd. and Columbus Circle Investors, was 3.78% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the S&P 500 Index returned 10.87%, the Russell 1000 Growth Index returned 6.30%, and the Lipper Large-Cap Core Funds Average returned 7.79%.

Oak Associates, Ltd.

The Oak segment of the Portfolio substantially underperformed the Russell 1000 Growth Index primarily due to its exposure to the technology sector. Within technology, the greatest detractors from performance were Cisco Systems, Veritas Software, and Applied Materials. Despite posting strong earnings results throughout 2004, Cisco Systems was weak due to concerns about slowing growth in its end-markets. Storage software vendor Veritas Software hampered performance after it reported weak second-quarter sales. Oak sold its Veritas Software position in the fourth quarter to fund new ideas. Shares of semiconductor equipment maker Applied Materials were also weak as the semiconductor industry suffered from inventory concerns.

Although Oak’s exposure to the healthcare sector positively contributed to performance, stock selection within the sector detracted from performance. Drug distributor Cardinal Health hurt performance as it struggled to meet earnings forecasts and transitioned to a fee-for-service business model. Oak sold its Cardinal position in the fourth quarter to fund a new idea. Pfizer shares suffered with those of other large-cap pharmaceutical companies after concerns about increased cardiovascular risk of a popular class of drugs.

Relative performance was also hurt by Oak’s lack of exposure to the industrials, energy, and telecom service sectors, which performed quite well in 2004. These sectors benefited from the sharp rise in commodity prices that typically occurs in the early stages of an economic recovery.

On a positive note, on-line auctioneer eBay helped offset the segment’s weaknesses in technology and healthcare by propelling its consumer discretionary sector performance significantly higher than the benchmark Russell 1000 Growth Index.

Columbus Circle Investors LLC

The Columbus Circle segment of the Portfolio substantially outperformed the Russell 1000 Growth Index as the latter half of 2004 proved to be favorable to its positive


THE TARGET PORTFOLIO TRUST		7

momentum and positive surprise investment discipline. Columbus Circle focuses on companies that are increasing earnings at a much faster rate than the overall market. These companies stood out when economic expansion and profit momentum moderated in 2004 to sustainable levels. As the year progressed, Columbus Circle responded to evidence that consumer spending was weakening by selectively trimming the segment’s technology holdings and reducing its weight in consumer discretionary stocks. It increased exposure to energy, utilities, telecommunications, and basic materials as commodity prices remained high and long-term interest rates remained unusually low.

Energy stocks and consumer discretionary stocks led the segment’s outperformance. Potash Corp, McDonalds, and TXU were the largest contributors. As emerging markets such as China increased their demand for fertilizer, Potash’s sales and profits soared and the stock rose swiftly. McDonalds rose as same-store sales continued to rise faster than had been expected when the company rolled out a leaner, healthier menu. TXU continued to beat earnings expectations, benefiting from its efforts to reduce its debt and its costs. The segment remains focused on energy and exploration stocks to benefit from increased capital spending by oil companies. Its healthcare stocks detracted slightly from its return as litigation issues hurt pharmaceutical holdings. The Medicare Modernization Act, repatriation of foreign profits at a lower tax rate, a weak dollar, and consolidations within the big pharmaceutical group may present better opportunities in 2005.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


8		THE TARGET PORTFOLIO TRUST

Large Capitalization Value Portfolio

The total return of the Large Capitalization Value Portfolio, subadvised by Hotchkis and Wiley Capital Management, LLC and J.P. Morgan Investment Management Inc., was 18.87% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the S&P 500 Index returned 10.87%, the Russell 1000 Value Index returned 16.49%, and the Lipper Multi-Cap Value Funds Average returned 14.39%.

Hotchkis and Wiley Capital Management, LLC

Hotchkis and Wiley’s segment of the Portfolio strongly outperformed the Russell 1000 Value Index, primarily because of security selection. Positive contributions were broad-based, with gains recorded in 8 of the 10 economic sectors. The largest contributor to return was the segment’s large weight in the well-performing consumer discretionary sector. Within this sector, positions in J.C. Penney and Mandalay Resort Group were the strongest performers, posting double-digit gains. J.C. Penney gained on news that the sale of the company’s troubled Eckerd division was finalized. Mandalay Resort Group benefited from a buyout offer from one of its rivals as well as from an overall increase in travel. Stock selection within the financials sector also helped performance as Metlife, UnumProvident, and Principal Financial Group made solid gains. The segment’s return was weakened by stock selection in the information technology sector. Electronic Data Systems led the decline as delays in the company’s turnaround efforts dragged its stock price downward throughout 2004. Other detractors from return included Tenet Healthcare, Alcoa, and Delphi. Alcoa was the largest detractor as analysts reduced their forecasts of the company’s earnings. At the same time, investors appeared concerned about the impact of slower Chinese demand for commodities in general.

J.P. Morgan Investment Management Inc.

The J.P. Morgan segment of the Portfolio performed essentially in line with the Russell 1000 Value Index. Robust stock selection within the pharmaceutical/medical technology, finance, and telecommunications sectors helped its performance. A position in Sepracor rocketed as a result of optimism about its new insomnia medication Lunesta. The stock received an incremental boost as a result of favorable FDA labeling for Lunesta. The insomnia market is estimated to be a $2 billion opportunity with strong growth potential. Performance also benefited from an underweight in Merck when it pulled its pain reliever Vioxx from the market. However, stock selection within the consumer stable, media, and network technology industries weakened relative performance. An underweight in Apple Computer hurt


THE TARGET PORTFOLIO TRUST		9

because Apple had significant gains due to robust iPod sales. J.P. Morgan does not believe Apple’s 8% operating margin is sustainable if iPods continue to be an increasingly large percentage of Apple’s business. In addition, an overweight in Forest Labs affected performance negatively on news that orders were down and that its once-promising drug Neramexane did not pass its first trials. However, the segment remains overweight in the company because Forest Labs generates substantial cash flow, is inexpensive relative to forecasts for earnings growth, may buy back a substantial amount of shares, and should be able to find new in-licensing candidates.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


10		THE TARGET PORTFOLIO TRUST

Small Capitalization Growth Portfolio

The total return of the Small Capitalization Growth Portfolio was 15.03% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the Russell 2000 Index returned 18.33%, the Russell 2000 Growth Index returned 14.31%, and the Lipper Small-Cap Growth Funds Average returned 10.65%. The Portfolio is subadvised by RS Investment Management, L.P. and Westcap Investors, LLC.

RS Investment Management, L.P.

RS Investments’ segment of the Portfolio outperformed the Russell 2000 Growth Index. Small-cap growth stocks typically perform best coming out of recession, but also perform well during periods of strong economic growth and high productivity as long as interest rates remain stable. The year 2004 presented such a backdrop with a third year of higher gross domestic product, stable interest rates, and productivity that translated into good profit growth. Moreover, many small firms went through downsizing and restructuring during the recession, which helped position them for significant operating leverage with any slight improvement in the economy. As a result of this improvement, a number of the segment’s holdings experienced rapid earnings and revenue growth.

The segment’s top four industries were oil well equipment and services, consumer electronics (which includes many Internet holdings), semiconductors, and medical systems. RS Investment sold some semiconductor positions early in the year to lock in gains. A number of long-term holdings, such as Aaron Rents, Scientific Games, Guitar Center, Superior Energy Services, and Unit, were among the top contributors. The top Internet contributors to return were InfoSpace, ValueClick, Jupitermedia, and CNET Networks. However, an underweight in the materials and processing sector hurt relative performance, as did poor stock selection in producer durables and technology. Computer services, software, & systems was the worst-performing industry group with disappointing results from Tumbleweed Communications and ClickSoftware Technologies.

Westcap Investors, LLC

Westcap’s segment of the Portfolio trailed the Russell 2000 Growth Index slightly. It emphasized growth cyclicals, such as retailers and technology, and de-emphasized pure cyclicals, such as steel and machinery. This contributed to underperformance during the first three quarters of the year, but to outperformance in the fourth quarter. Looking forward to 2005, Westcap intends to continue focusing on companies that exhibit growth despite a maturation of the economic cycle.


THE TARGET PORTFOLIO TRUST		11

The segment’s strongest sectors were healthcare, financial services, and technology. The largest contributions in healthcare came from American Medical Systems and Connetics. Strong performance in financial services came from Affiliated Managers Group and Factset Research Systems. In technology, Catapult Communications, Hyperion Solutions, and Avocent Corporation contributed to relative performance. Underperforming sectors of the segment included consumer discretionary, materials & processing, and consumer staples. The weakest consumer discretionary positions were 99 Cents Only Stores, Valuevision Media, and Emmis Communications. In materials & processing, Cabot Microelectronics hindered relative performance. Underperformance by Performance Food Group contributed to relative weakness in the consumer staples sector.

Westcap looks for attractively priced, high-quality companies in all parts of the economy that possess strong fundamentals and that it expects to provide superior returns over a full economic cycle. Its segment is focused on growth sectors such as technology, financial services, consumer discretionary, and healthcare.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


12		THE TARGET PORTFOLIO TRUST

Small Capitalization Value Portfolio

The total return of the Small Capitalization Value Portfolio was 24.02% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the Russell 2000 Index returned 18.33%, the Russell 2000 Value Index returned 22.25%, and the Lipper Small-Cap Core Funds Average returned 18.38%. The Portfolio is subadvised by EARNEST Partners, LLC and NFJ Investment Group L.P.

EARNEST Partners, LLC

EARNEST Partners’ segment of the Portfolio outperformed the Russell 2000 Value Index primarily because of its stock selection in many sectors. Financial holdings, such as AmeriCredit, Philadelphia Consolidated, and Commerce Group, saw improved business due to low interest rates and good underwriting growth. Information technology holdings such as Flir Systems and Global Payments also added to performance. Consumer discretionary holdings benefited from a significant position in Harman International and a smaller position in Meritage. Stock selection also had a positive impact in the telecommunications services sector with strong performance from American Tower. The segment’s selection in the materials sector was positive, but its underweight in the sector relative to the Russell 2000 Value Index hurt relative performance.

NFJ Investment Group L.P.

NFJ Investment Group’s segment of the Portfolio outperformed the Russell 2000 Value Index primarily because of its overweighting in energy and underweighting in technology. Even though the energy sector’s strength relative to the rest of the market abated in the fourth quarter of the year, it was the strongest sector for the year overall, up 62% in the Russell 2000 Value Index. The segment’s energy stock selection added to its return, rising an average of 65.8% for the year. One position, Frontline, more than doubled in value. Conversely, even though the technology sector rocketed in the fourth quarter, it was the only sector to register a decline for the full year. The segment held only five technology stocks—an average 5% weighting. The segment normally underweights the financial sector because NFJ believes that matching that sector’s 34% weight in the Russell 2000 Value Index would not be prudent diversification. As interest rates generally declined over the past 10 years, this strategy has hurt performance. However, in 2004 the sector’s return was close to the Index average, making the impact on relative performance small.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


THE TARGET PORTFOLIO TRUST		13

International Equity Portfolio

Lazard Asset Management LLC

The total return of the International Equity Portfolio, subadvised by Lazard Asset Management LLC, was 15.23% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the MSCI EAFE Index rose 20.25% and the Lipper International Funds Average returned 20.14%.

International stocks spent most of 2004 in a narrow trading range as strong earnings growth was offset by concerns about rising interest rates, rising oil prices, and the sustainability of the global economic rebound. However, they moved higher in the fourth quarter as oil prices crested, easing concerns that higher energy costs would restrain earnings and economic growth. Energy stocks were strong during the year since oil prices rose sharply, and utilities also performed well as investors sought out yield in a low-interest-rate environment. In contrast, technology stocks lagged as corporate spending on information technology products has yet to rebound significantly. Healthcare stocks were hurt by concerns over drug safety following Merck’s high-profile recall of Vioxx. On a regional basis, European markets generally outperformed, helped by the rising euro, while the Japanese market lagged the broad index on concerns about the sustainability of its economic rebound.

Stock selection in the financials sector negatively impacted performance when reinsurers Swiss Re and Munich Re were hurt by the hurricanes hitting Florida. Although the hurricanes caused near-term costs as payments were made to their reinsurance clients, Lazard believes that the longer-term outlook for reinsurance companies’ earnings is positive because the costs remove insuring capacity from the industry and improve pricing discipline. Stock selection in the consumer discretionary sector also detracted from returns as Nissan declined due to concerns regarding the steel shortage caused by increased demand from China. However, Nissan stated that the shortage should have a relatively small impact on sales in the United States, its biggest market. In contrast, stock selection in healthcare helped the Portfolio. It did not hold AstraZeneca, which declined, but did hold Schering, which appreciated significantly due to internal restructuring and the recent approval of its birth control pill. The Portfolio also held Aventis, which gained on expectations of revenue and cost synergism from its proposed acquisition by Sanofi-Synthelabo.


14		THE TARGET PORTFOLIO TRUST

The Portfolio also was hurt by overweighting larger stocks while small and midcap stocks continued to outperform. However, Lazard believes that the performance of large stocks may improve, since the relative valuation of large caps versus small caps is very attractive compared to historical norms. In addition, smaller-cap stocks have been outperforming larger-cap stocks for nearly five years. The duration and magnitude of this period of outperformance has been similar to historical peaks in the large-cap/small-cap cycle.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


THE TARGET PORTFOLIO TRUST		15

International Bond Portfolio

The total return of the International Bond Portfolio was 3.71% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same 12-month period, the Citigroup non-U.S. World Government Bond Index (Hedged) returned 5.17%, and the Lipper International Income Funds Average returned 10.47%. From January 1, 2004, through October 20, 2004, the Portfolio was subadvised by Fischer Francis Trees & Watts, Inc., which was replaced by Pacific Investment Management Company LLC (PIMCO) as of October 21, 2004.

Fischer Francis Trees & Watts, Inc.

From January 1, 2004, through October 20, 2004, interest-rate positioning made a meaningful contribution to the Portfolio’s return. Early in the year, positions focused on an underperformance of Japanese bonds, both on an outright basis and relative to European bonds. As Japanese yields rose consistently through much of 2004, these positions benefited the Portfolio. The third quarter, however, was difficult for bond investors. United States employment statistics reversed course, raising concerns about a summer “soft patch” leading to the resumption of a recession, and oil prices continued to climb. Though neutral overall in Europe, the Portfolio was overweight in the United Kingdom versus the euro area.

While 2004 began with a continuation of the two-year weakening trend in the U.S. dollar, comments from European Central Bank policymakers regarding the strength of the euro raised the possibility of further cuts in European short-term interest rates. This helped push the U.S. dollar more than 2% higher versus the euro during the first quarter of 2004. The Portfolio began the year focused on a stronger Japanese yen and weaker euro, but quickly changed its focus to U.S. dollar weakness versus the other major currencies. However, currency positioning had a negative impact on the Portfolio’s performance for most of the year, but the Portfolio’s small position in corporate bonds had a slightly positive impact on its performance.

Pacific Investment Management Company LLC

From October 21, 2004, through the remainder of the year, global bonds performed well as investors welcomed a reversal in crude oil prices while navigating an unexpectedly sharp fall in the U.S. dollar. Muted growth prospects and benign inflation underpinned returns. Bonds of the Euroland, the United Kingdom, and Canada strongly outperformed U.S. Treasury securities and Japanese government bonds during the fourth quarter. The Portfolio’s U.S. duration and curve strategies detracted from its performance, and while U.S. yields rose, PIMCO’s curve-steepening posture, designed to capture roll-down, was negatively affected by a flatter


16		THE TARGET PORTFOLIO TRUST

yield curve as near maturity yields rose the most. However, the Portfolio’s overweight exposure to Euroland duration relative to its benchmark was a strong positive as yields fell in response to continued growth concerns and a surging euro. An underweight to Japanese government bonds relative to its benchmark benefited the Portfolio’s performance as Japanese government bond yields barely shifted during the quarter, lagging other bond markets. Exposure to emerging-market bonds was another positive for the Portfolio as was a tactical allocation to Treasury inflation protected securities (TIPS).

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


THE TARGET PORTFOLIO TRUST		17

Total Return Bond Portfolio

Pacific Investment Management Company LLC

The total return of the Total Return Bond Portfolio, subadvised by Pacific Investment Management Company LLC (PIMCO), was 4.73% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the Lehman Brothers U.S. Aggregate Bond Index (the Index) returned 4.34% and the Lipper Corporate Debt BBB-Rated Funds Average returned 5.11%.

During the early part of the year, concern about the durability of the U.S. economic recovery pushed interest rates lower, and demand for relatively safe assets rose amid renewed fears of terrorist attacks after the Madrid bombing. However, from April through June, employment reports showed strength, which convinced markets that the Federal Reserve (the Fed) would soon begin a long-anticipated tightening campaign. On June 30, 2004, the Fed met market expectations with a 25-basis-point increase in the federal funds rate, which is the rate banks charge each other on overnight loans. It raised the key short-term rate a total of five times in 2004, lifting the federal funds rate from 1.00% to 2.25%.

Signs of rising inflation fueled anxiety that central banks may need to move aggressively to combat it. Inflation concerns were driven by higher oil prices as well as slower productivity growth. The Fed helped calm markets by commenting that it would raise rates gradually. Economic data suggested moderate economic growth as job numbers, inflation, and consumer confidence all fell short of analysts’ expectations.

The Portfolio outperformed its benchmark, the Index, during 2004. Diversifying beyond core sectors in the Index helped protect the Portfolio during difficult market periods and also added to returns in sectors where interest rates actually fell. Overall, a below-Index U.S. duration was positive for the Portfolio’s return as short- and intermediate-term rates rose in the United States. Additionally, Euroland duration contributed to the Portfolio’s return as intermediate- and long-term rates fell. Active management across a variety of strategies, including “rolling down” a steep yield curve, active security selection of mortgage-backed securities and corporate bonds, exposure to Treasury inflation protected securities (TIPS), Euroland exposure, and emerging-market exposure, all contributed to the Portfolio’s performance during the year.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


18		THE TARGET PORTFOLIO TRUST

Intermediate-Term Bond Portfolio

Pacific Investment Management Company LLC

The total return of the Intermediate-Term Bond Portfolio, subadvised by Pacific Investment Management Company LLC (PIMCO), was 3.19% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the Lehman Brothers Intermediate Government/Credit Bond Index (the Index) returned 3.04% and the Lipper Intermediate Investment-Grade Debt Funds Average returned 3.85%.

The Portfolio outperformed its benchmark, the Index, in 2004. Diversifying beyond core sectors in the Index helped protect the Portfolio during difficult market periods and also added to returns in sectors where interest rates actually fell. Overall, a below-Index U.S. duration was positive for the Portfolio’s return as short- and intermediate-term rates rose in the United States. Additionally, Euroland duration contributed to the Portfolio’s return as intermediate- and long-term rates fell. Active management across a variety of strategies, including “rolling down” a steep yield curve, active security selection of mortgage-backed securities and corporate bonds, exposure to Treasury inflation protected securities (TIPS), Euroland exposure, and emerging-market exposure, all contributed to the Portfolio’s performance during the year.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


THE TARGET PORTFOLIO TRUST		19

Mortgage Backed Securities Portfolio

Wellington Management Company, LLP

The total return of the Mortgage Backed Securities Portfolio, subadvised by Wellington Management Company, LLP, was 3.68% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the Citigroup Mortgage-Backed Securities Index returned 4.83%, the Lehman Brothers Mortgage-Backed Securities Index returned 4.70%, and the Lipper U.S. Mortgage Funds Average returned 3.68%.

In the first half of 2004, gross domestic product and employment in the United States were strong, raising fears in financial markets that higher inflationary pressures were around the corner. These concerns caused rates to move higher as market participants expected the Federal Reserve (the Fed) to aggressively tighten monetary policy. Mortgage-backed securities underperformed as yields rose.

As we came into the third quarter of 2004, the economy began to show signs of weakness and interest rates began to fall. Over the remainder of 2004, interest rates retraced their steps. The yield on the benchmark 10-year U.S. Treasury note ended the year close to 4.20%, which was almost identical to where it began the year. Mortgage-backed securities outperformed during the third and fourth quarters of 2004. The end of the refinancing wave decreased the supply of mortgages and strong foreign demand led prices of mortgage-backed securities higher.

The Portfolio’s return was driven by the decline in yield spread between mortgage-backed securities and U.S. Treasurys as well as by coupon payments on mortgage-backed securities. The Portfolio’s underperformance reflected its lower risk exposure to mortgage-backed securities in the face of a strong economy and a Fed that increased short-term interest rates five times in 2004.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


20		THE TARGET PORTFOLIO TRUST

U.S. Government Money Market Portfolio

Wellington Management Company, LLP

The total return of the U.S. Government Money Market Portfolio, subadvised by Wellington Management Company, LLP, was 0.76% without taking into account the TARGET program fee for the year ended December 31, 2004. During the same period, the Lipper U.S. Government Money Market Portfolio Funds Average returned 0.63%.

The U.S. economy gained momentum over the course of 2004 and showed significant acceleration during the latter half of the year. Gross domestic product data released during the fourth quarter showed that the economy expanded at a rate of 4% during the third quarter, faster than previously estimated. This suggested a strong finish to 2004. In light of the improving economic data, policymakers at the Federal Reserve (the Fed) continued a tightening campaign that began in June. At their most recent meeting on December 14, the Fed raised short-term rates another 25 basis points for a fifth time in 2004. The combined moves lifted the federal funds rate—the rate banks charge each other on overnight loans—from 1.00% to the current target rate of 2.25%. Fed policymakers reiterated their plan to continue raising rates at a “measured” pace.

As it became apparent that the Fed would systematically bring the federal funds rate to a neutral level, the Portfolio’s weighted average maturity shortened in order to position the Portfolio to take advantage of future rate increases. Often when the Fed tightens monetary policy, the slope of the money market yield curve will steepen as the market prices in additional rate increases in the future.

The Portfolio of Investments following this report shows the size of the Portfolio’s positions at period-end.


THE TARGET PORTFOLIO TRUST		21

Fees and Expenses (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, Target program fees and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds. This example does not reflect Target program fees. If Target program fees were included, the costs would be higher.

The example is based on an investment of $1,000 invested on July 1, 2004, at the beginning of the period, and held through the six-month period ended December 31, 2004.

The Fund may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table. These fees apply to Individual Retirement Accounts (IRAs), 403(b) accounts, and 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 Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

Actual Expenses

The first line for each share class in the 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.

Hypothetical Example for Comparison Purposes

The second line for each share class in the following table provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not


22		THE TARGET PORTFOLIO TRUST

be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only, and do not reflect any transactional costs such as sales charges (loads). Therefore the second line for each share class in the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.


Large Capitalization Growth Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,036	0.79	%	$	4.04
	Hypothetical	$	1,000	$	1,021	0.79	%	$	4.01


Large Capitalization Value Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,130	0.75	%	$	4.02
	Hypothetical	$	1,000	$	1,021	0.75	%	$	3.81


Small Capitalization Growth Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,098	0.90	%	$	4.75
	Hypothetical	$	1,000	$	1,021	0.90	%	$	4.57


Small Capitalization Value Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,142	0.81	%	$	4.36
	Hypothetical	$	1,000	$	1,021	0.81	%	$	4.11


International Equity Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,144	0.98	%	$	5.28
	Hypothetical	$	1,000	$	1,020	0.98	%	$	4.98


THE TARGET PORTFOLIO TRUST		23


International Bond Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,037	1.59	%	$	8.14
	Hypothetical	$	1,000	$	1,017	1.59	%	$	8.06


Total Return Bond Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,043	0.76	%	$	3.90
	Hypothetical	$	1,000	$	1,021	0.76	%	$	3.86


Intermediate-Term Bond Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,032	0.64	%	$	3.27
	Hypothetical	$	1,000	$	1,022	0.64	%	$	3.25


Mortgage Backed Securities Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,034	0.91	%	$	4.65
	Hypothetical	$	1,000	$	1,021	0.91	%	$	4.62


U.S. Government Money Market Portfolio		Beginning Account Value July 1, 2004		Ending Account Value December 31, 2004		Annualized Expense Ratio Based on the Six-Month Period		Expenses Paid During the Six- Month Period*

	Actual	$	1,000	$	1,005	0.64	%	$	3.23
	Hypothetical	$	1,000	$	1,022	0.64	%	$	3.25

* Fund 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 December 31, 2004, and divided by the 366 days in the Fund’s fiscal year ended December 31, 2004 (to reflect the six-month period).


24		THE TARGET PORTFOLIO TRUST


Portfolio of Investments As of December 31, 2004		*Large Capitalization Growth Portfolio*


SHARES	DESCRIPTION	VALUE (NOTE 1)

	LONG-TERM INVESTMENTS—98.8%

	Common Stocks

	Air Freight & Couriers—2.8%
28,000	FedEx Corp.	$	2,757,720
80,000	United Parcel Service, Inc., (Class B shares)		6,836,800

			9,594,520


	Apparel—1.1%
42,500	Nike, Inc. (Class B shares)		3,854,325


	Beverages—0.8%
56,000	Constellation Brands, Inc. (Class A shares)(a)		2,604,560


	Biotechnology—3.2%
90,000	Affymetrix, Inc.(a)		3,289,500
43,500	Biogen Idec, Inc.(a)		2,897,535
90,500	Genentech, Inc.(a)		4,926,820

			11,113,855


	Capital Markets—1.0%
300,000	Charles Schwab Corp. (The)		3,588,000


	Chemicals—1.9%
47,500	Potash Corp. of Saskatchewan (Canada)		3,945,350
55,000	Praxair, Inc.		2,428,250

			6,373,600


	Communications Equipment—4.1%
162,500	Comverse Technology, Inc.(a)		3,973,125
234,500	QUALCOMM, Inc.		9,942,800

			13,915,925


	Computer Software & Services—5.0%
425,000	EMC Corp.(a)		6,319,750
406,500	Microsoft Corp.		10,857,615

			17,177,365


	Computers & Business Equipment—4.3%
759,500	Cisco Systems, Inc.(a)		14,658,350


	Computers & Peripherals—4.0%
62,000	Apple Computer, Inc.(a)		3,992,800
45,000	Avid Technology, Inc.(a)		2,778,750
165,000	Dell, Inc.(a)		6,953,100

			13,724,650


	Cosmetics & Toiletries—1.0%
77,000	Estee Lauder Cos., Inc. (Class A shares)		3,524,290

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		25

Large Capitalization Growth Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Diversified Telecommunication Services—1.3%
175,500	Sprint Corp.	$	4,361,175


	Drugs & Healthcare—6.8%
80,000	Amgen, Inc.(a)		5,132,000
108,000	Caremark Rx, Inc.(a)		4,258,440
177,700	Medtronic, Inc.		8,826,359
190,000	Pfizer, Inc.		5,109,100

			23,325,899


	Electric Utilities—1.1%
55,500	TXU Corp.		3,583,080


	Electrical Equipment—1.1%
75,000	Rockwell Automation, Inc.		3,716,250


	Electronic Components—3.2%
410,000	Applied Materials, Inc.(a)		7,011,000
61,000	Fisher Scientific International, Inc.(a)		3,805,180

			10,816,180


	Electronic Equipment & Instruments—1.0%
200,000	Symbol Technologies, Inc.		3,460,000


	Financial Services—9.3%
65,500	Capital One Financial Corp.		5,515,755
6,700	Chicago Mercantile Exchange Holdings, Inc.		1,532,290
84,500	CIT Group, Inc.		3,871,790
168,000	Citigroup, Inc.		8,094,240
53,000	Goldman Sachs Group, Inc. (The)		5,514,120
263,000	MBNA Corp.		7,413,970

			31,942,165


	Food & Staples Retailing—1.0%
73,500	CVS Corp.		3,312,645


	Health Care Equipment & Supplies—1.1%
59,500	C. R. Bard, Inc.		3,806,810


	Health Care Providers & Services—1.1%
46,000	CIGNA Corp.		3,752,220


	Hotels, Restaurants & Leisure—4.4%
56,500	Carnival Corp.		3,256,095
211,500	McDonald’s Corp.		6,780,690
43,000	Starwood Hotels & Resorts Worldwide, Inc.		2,511,200
49,500	Station Casinos, Inc.		2,706,660

			15,254,645

See Notes to Financial Statements


26		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Household Durables—1.0%
28,000	Harman International Industries, Inc.	$	3,556,000


	Household Products—1.5%
59,000	Clorox Co. (The)		3,476,870
36,000	Colgate-Palmolive Co.		1,841,760

			5,318,630


	Industrial Conglomerates—0.5%
25,000	Textron, Inc.		1,845,000


	Internet—3.4%
18,000	Google Inc. (Class A shares)(a)		3,475,800
299,800	Juniper Networks, Inc.(a)		8,151,562

			11,627,362


	Internet & Catalog Retail—3.6%
107,000	eBay, Inc.(a)		12,441,960


	IT Services—2.2%
180,000	Cognizant Technology Solutions Corp. (Class A shares)(a)		7,619,400


	Machinery—1.9%
37,100	Deere & Co.		2,760,240
47,500	Ingersoll-Rand Co. (Bermuda)		3,814,250

			6,574,490


	Media—3.0%
63,500	EchoStar Communications Corp. (Class A shares)(a)		2,110,740
226,000	Time Warner Cos., Inc.(a)		4,393,440
99,000	XM Satellite Radio Holdings, Inc. (Class A shares)(a)		3,724,380

			10,228,560


	Oil & Gas—1.0%
40,000	ConocoPhillips		3,473,200


	Oil Field/Equipment & Services—1.9%
67,500	Apache Corp.		3,413,475
82,000	Devon Energy Corp.		3,191,440

			6,604,915


	Retail Trade—4.3%
124,500	Home Depot, Inc. (The)		5,321,130
84,000	Nordstrom, Inc.		3,925,320
162,000	Staples, Inc.		5,461,020

			14,707,470


	Semiconductors & Semiconductor Equipment—6.7%
1	Freescale Semiconductor, Inc.(a)		10
228,000	Linear Technology Corp.		8,837,280
80,000	Marvell Technology Group Ltd. (Bermuda)(a)		2,837,600
205,000	Maxim Integrated Products, Inc.		8,689,950
109,500	Texas Instruments, Inc.		2,695,890

			23,060,730

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		27

Large Capitalization Growth Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Software—5.1%
47,000	Adobe Systems, Inc.	$	2,948,780
130,000	Electronic Arts, Inc.(a)		8,018,400
260,000	Symantec Corp.(a)		6,697,600

			17,664,780


	Telecommunications—2.1%
213,500	Motorola, Inc.		3,672,200
233,500	Nokia Oyj Corp. ADR (Finland)		3,658,945

			7,331,145

	Total long-term investments (cost $264,234,599)		339,514,151


	SHORT-TERM INVESTMENTS

	Money Market Mutual Fund
2	Dryden Core Investment Fund—Taxable Money Market Series (cost $2; Note 3)		2

	Total Investments—98.8% (cost $264,234,601; Note 5)		339,514,153
	Other assets in excess of liabilities—1.2%		4,245,464

	Net Assets—100%	$	343,759,617

(a)	Non-income producing security.

ADR—American Depositary Receipt

See Notes to Financial Statements


28		THE TARGET PORTFOLIO TRUST

The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of December 31, 2004 were as follows:


Financial Services	9.3	%
Drugs & Healthcare	6.8
Semiconductors & Semiconductor Equipment	6.7
Software	5.1
Computer Software & Services	5.0
Hotels, Restaurants & Leisure	4.4
Computers & Business Equipment	4.3
Retail Trade	4.3
Communications Equipment	4.1
Computers & Peripherals	4.0
Internet & Catalog Retail	3.6
Internet	3.4
Biotechnology	3.2
Electronic Components	3.2
Media	3.0
Air Freight & Couriers	2.8
IT Services	2.2
Telecommunications	2.1
Chemicals	1.9
Machinery	1.9
Oil Field/Equipment & Services	1.9
Household Products	1.5
Diversified Telecommunications Services	1.3
Apparel	1.1
Electric Utilities	1.1
Electrical Equipment	1.1
Health Care Equipment & Supplies	1.1
Health Care Providers & Services	1.1
Capital Markets	1.0
Cosmetics & Toiletries	1.0
Electronic Equipment & Instruments	1.0
Food & Staples Retailing	1.0
Household Durables	1.0
Oil & Gas	1.0
Beverages	0.8
Industrial Conglomerates	0.5

	98.8
Other assets in excess of liabilities	1.2

	100.0	%

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		29


*Large Capitalization Value Portfolio*		Portfolio of Investments As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	LONG-TERM INVESTMENTS—99.6%

	Common Stock

	Aerospace/Defense—3.6%
109,300	Lockheed Martin Corp.	$	6,071,615
31,800	Northrop Grumman Corp.		1,728,648
117,700	Raytheon Co.		4,570,291
13,700	United Technologies Corp.		1,415,895

			13,786,449


	Automobiles—0.6%
80,600	Ford Motor Co.		1,179,984
27,100	General Motors Corp.		1,085,626

			2,265,610


	Automotive Components—1.2%
2,900	Dana Corp.		50,257
232,262	Delphi Corp.		2,095,003
42,800	Lear Corp.		2,611,228

			4,756,488


	Beverages—0.6%
600	Anheuser-Busch Cos., Inc.		30,438
46,700	Coca-Cola Co.		1,944,121
8,400	PepsiCo, Inc.		438,480

			2,413,039


	Capital Markets—0.2%
23,000	Bank of New York Co., Inc. (The)		768,660
2,900	E*Trade Financial Corp.(a)		43,355

			812,015


	Chemicals—1.6%
25,400	Air Products & Chemicals, Inc.		1,472,438
20,000	Dow Chemical Co.		990,200
100	Eastman Chemical Co.		5,773
35,400	Nalco Holdings Co.(a)		691,008
7,600	PPG Industries, Inc.		518,016
35,300	Praxair, Inc.		1,558,495
18,900	Rohm & Haas Co.		835,947

			6,071,877


	Commercial Banks—6.2%
127,600	Bank of America Corp.		5,995,924
8,100	BB&T Corp.		340,605
14,300	First Horizon National Corp.		616,473
7,100	FirstMerit Corp.		202,279

See Notes to Financial Statements


30		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Commercial Banks (cont’d.)
90,600	KeyCorp	$	3,071,340
10,400	Marshall & Ilsley Corp.		459,680
10,800	Mellon Financial Corp.		335,988
69,700	North Fork Bancorporation, Inc.		2,010,845
3,000	PNC Financial Services Group		172,320
26,500	State Street Corp.		1,301,680
49,500	U.S. Bancorp		1,550,340
40,700	UnionBanCal Corp.		2,624,336
26,600	Wachovia Corp.		1,399,160
53,500	Wells Fargo & Co.		3,325,025
8,200	Zions Bancorp		557,846

			23,963,841


	Commercial Services & Supplies—2.4%
194,500	Cendant Corp.		4,547,410
155,200	Waste Management, Inc.		4,646,688

			9,194,098


	Communications Equipment—0.1%
4,600	QUALCOMM, Inc.		195,040


	Computers & Peripherals—1.1%
22,500	Dell, Inc.(a)		948,150
19,100	EMC Corp.(a)		284,017
64,000	Hewlett-Packard Co.		1,342,080
13,100	International Business Machines Corp.		1,291,398
1,500	Lexmark International, Inc.(a)		127,500
1,800	NCR Corp.(a)		124,614

			4,117,759


	Consumer Products—0.3%
20,000	Procter & Gamble Co.		1,101,600


	Cosmetics & Toiletries
3,700	Gillette Co.		165,686


	Diversified Financial Services—7.5%
71,700	Charles Schwab Corp. (The)		857,532
126,900	CIT Group, Inc.		5,814,558
172,800	Citigroup, Inc.		8,325,504
17,300	Countrywide Credit Industries, Inc.		640,273
17,100	Goldman Sachs Group, Inc.		1,779,084
2,000	Legg Mason, Inc.		146,520
7,500	MBIA, Inc.		474,600
39,800	MBNA Corp.		1,121,962
57,800	Morgan Stanley		3,209,056
161,700	Principal Financial Group, Inc. (The)		6,619,998

			28,989,087


	Diversified Telecommunication Services—0.1%
19,000	Sprint Corp.		472,150

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		31

Large Capitalization Value Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Electric Utilities—6.8%
76,700	Alliant Energy Corp.	$	2,193,620
24,200	Consolidated Edison, Inc.		1,058,750
9,700	Constellation Energy Group, Inc.		423,987
19,600	Edison International		627,788
47,200	Entergy Corp.		3,190,248
149,996	FirstEnergy Corp.		5,926,342
119,100	FPL Group, Inc.		8,902,725
25,100	NiSource, Inc.		571,778
14,200	PG&E Corp.(a)		472,576
16,900	Pinnacle West Capital Corp.		750,529
19,600	PPL Corp.		1,044,288
10,500	Wisconsin Energy Corp.		353,955
38,300	Xcel Energy, Inc.		697,060

			26,213,646


	Electrical Equipment
100	Cooper Industries, Ltd. (Class A shares)		6,789


	Exchange Traded Funds—0.2%
12,950	iShares Russell 1000 Value Index Fund		859,492


	Food & Staples Retailing—1.5%
232,800	Albertson’s, Inc.		5,559,264
4,300	Costco Wholesale Corp.		208,163

			5,767,427


	Food Products—1.9%
800	H.J. Heinz Co.		31,192
59,900	Kraft Foods, Inc. (Class A shares)		2,133,039
88,400	Sara Lee Corp.		2,133,976
4,800	Sysco Corp.		183,216
69,900	Unilever Plc—ADR		2,762,448

			7,243,871


	Gas & Pipeline Utilities—0.2%
17,900	Northeast Utilities		337,415
9,400	Valero Energy Corp.		426,760

			764,175


	Healthcare Equipment & Supplies—0.5%
3,600	Eli Lilly & Co.		204,300
9,100	Gilead Sciences, Inc.(a)		318,409
5,800	Guidant Corp.		418,180
5,500	Sepracor, Inc.(a)		326,535
14,200	Watson Pharmaceuticals, Inc.(a)		465,902
6,300	Wyeth		268,317

			2,001,643

See Notes to Financial Statements


32		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Healthcare Providers & Services—3.8%
48,400	Aetna, Inc.	$	6,037,900
66,600	HCA, Inc.		2,661,336
411,600	Tenet Healthcare Corp.(a)		4,519,368
11,000	WellPoint, Inc.(a)		1,265,000

			14,483,604


	Homebuilding—0.2%
8,300	D.R. Horton, Inc.		334,573
4,200	Pulte Homes, Inc.		267,960

			602,533


	Hotels, Restaurants & Leisure—3.5%
227,000	Caesars Entertainment, Inc.(a)		4,571,780
700	Carnival Corp.		40,341
22,700	Hilton Hotels Corp.		516,198
19,100	International Game Technology		656,658
7,000	Mandalay Resort Group		493,010
3,000	Marriott International, Inc.		188,940
63,200	McDonald’s Corp.		2,026,192
8,500	Starwood Hotels & Resorts Worldwide, Inc.		496,400
2,500	Wendy’s International, Inc.		98,150
95,900	Yum! Brands, Inc.		4,524,562

			13,612,231


	Household Durables—2.5%
1,500	Centex Corp.		89,370
160,600	Lennar Corp. (Class A shares)		9,102,808
9,180	Lennar Corp. (Class B shares)		479,288

			9,671,466


	Industrial Conglomerates—4.3%
2,000	3M Co.		164,140
266,100	General Electric Co.		9,712,650
3,900	ITT Industries, Inc.		329,355
173,800	Tyco International Ltd. (Bermuda)		6,211,612

			16,417,757


	Industrial Machinery—0.5%
1,000	Caterpillar, Inc.		97,510
12,000	Deere & Co.		892,800
14,600	Eaton Corp.		1,056,456

			2,046,766


	Insurance—10.7%
29,000	AFLAC, Inc.		1,155,360
82,900	Allmerica Financial Corp.(a)		2,721,607
107,800	Allstate Corp. (The)		5,575,416
13,100	Ambac Financial Group, Inc.		1,075,903
800	Chubb Corp. (The)		61,520

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		33

Large Capitalization Value Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Insurance (cont’d.)
34,100	Genworth Financial, Inc.	$	920,700
20,500	Hartford Financial Services Group, Inc. (The)		1,420,855
275,070	MetLife, Inc.		11,143,085
4,600	Progressive Corp. (The)		390,264
7,400	Protective Life Corp.		315,906
218,200	St. Paul Travelers Cos., Inc. (The)		8,088,674
12,000	Torchmark Corp.		685,680
422,100	UnumProvident Corp.		7,572,474
3,000	W.R. Berkley Corp.		141,510

			41,268,954


	IT Services—3.0%
3,700	Automatic Data Processing, Inc.		164,095
5,000	Computer Sciences Corp.(a)		281,850
466,400	Electronic Data Systems Corp.		10,773,840
24,000	Sun Microsystems, Inc.(a)		129,120
600	SunGard Data Systems, Inc.(a)		16,998

			11,365,903


	Leisure Equipment & Products—1.1%
115,400	Eastman Kodak Co.		3,721,650
35,100	Mattel, Inc.		684,099

			4,405,749


	Machinery—0.6%
58,000	SPX Corp.		2,323,480


	Media—2.3%
2,200	Comcast Corp. (Class A shares)(a)		72,248
8,800	E.W. Scripps Co. (Class A shares)		424,864
11,200	EchoStar Communications Corp. (Class A shares)(a)		372,288
32,100	Fox Entertainment Group, Inc. (Class A shares)(a)		1,003,446
22,900	Gannett Co., Inc.		1,870,930
1,300	Knight-Ridder, Inc.		87,022
33,000	Liberty Media Corp. (Class A shares)(a)		362,340
4,800	News Corp. (Class A shares)		89,568
92,400	Time Warner Cos., Inc.(a)		1,796,256
75,700	Viacom, Inc. (Class B shares)		2,754,723
2,300	Walt Disney Co.		63,940

			8,897,625


	Metals & Mining—1.2%
131,976	Alcoa, Inc.		4,146,686
9,800	United States Steel Corp.		502,250

			4,648,936

See Notes to Financial Statements


34		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Multi-Utilities & Unregulated Power—0.7%
31,300	Dominion Resources, Inc.	$	2,120,262
13,100	SCANA Corp.		516,140

			2,636,402


	Multiline Retail—3.5%
6,700	Abercrombie & Fitch Co. (Class A shares)		314,565
14,300	Federated Department Stores, Inc.		826,397
11,600	Home Depot, Inc. (The)		495,784
8,600	Kohl’s Corp.(a)		422,862
9,000	May Department Stores Co. (The)		264,600
215,300	Sears, Roebuck & Co.		10,986,759

			13,310,967


	Networking Equipment—0.1%
9,500	Juniper Networks, Inc.(a)		258,305


	Oil & Gas—5.3%
6,000	Anadarko Petroleum Corp.		388,860
11,900	Baker Hughes, Inc.		507,773
12,100	Chesapeake Energy Corp.		199,650
56,100	ChevronTexaco Corp.		2,945,811
191,700	Exxon Mobil Corp.		9,826,542
5,000	Occidental Petroleum Corp.		291,800
52,028	Sunoco, Inc.		4,251,208
18,600	Teekay Shipping Corp.		783,246
24,900	Unocal Corp.		1,076,676
3,400	Williams Cos., Inc. (The)		55,386

			20,326,952


	Oil Field/Equipment & Services—1.0%
33,600	ConocoPhillips		2,917,488
21,100	Devon Energy Corp.		821,212
7,500	Dynegy, Inc.(a)		34,650

			3,773,350


	Paper & Forest Products—0.9%
4,100	Bowater, Inc.		180,277
10,000	Georgia-Pacific Group		374,800
15,000	International Paper Co.		630,000
3,200	Smurfit-Stone Container Corp.(a)		59,776
1,200	Temple-Inland, Inc.		82,080
33,520	Weyerhaeuser Co.		2,253,214

			3,580,147


	Pharmaceuticals—0.4%
20,800	Forest Laboratories, Inc.(a)		933,088
1,800	Medicis Pharmaceutical Corp. (Class A shares)		63,198
7,800	OSI Pharmaceuticals, Inc.(a)		583,830

			1,580,116

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		35

Large Capitalization Value Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Railroads & Equipment—0.4%
3,600	CSX Corp.	$	144,288
2,100	FedEx Corp.		206,829
32,900	Norfolk Southern Corp.		1,190,651

			1,541,768


	Real Estate Investment Trust—3.0%
73,500	Apartment Investment & Management Co.		2,832,690
4,200	Camden Property Trust		214,200
5,700	CarrAmerica Realty Corp.		188,100
2,200	CenterPoint Properties Trust		105,358
10,400	Duke Realty Corp.		355,056
50,100	Equity Office Properties Trust		1,458,912
1,800	Equity Residential		65,124
5,060	General Growth Properties, Inc.		182,970
7,100	Kimco Realty Corp.		411,729
3,800	Liberty Property Trust		164,160
5,800	Mack-Cali Realty Corp.		266,974
41,100	New Century Financial Corp.		2,626,701
54,285	Plum Creek Timber Co., Inc.		2,086,715
17,000	ProLogis Trust		736,610

			11,695,299


	Road & Rail—0.6%
34,000	Union Pacific Corp.		2,286,500


	Semiconductors & Semiconductor Equipment—0.1%
4,000	Analog Devices, Inc.		147,680
9,600	Intersil Corp. (Class A shares)		160,704

			308,384


	Software—3.0%
277,600	Computer Associates International, Inc.		8,622,256
66,600	Microsoft Corp.		1,778,886
76,000	Oracle Corp.(a)		1,042,720
2,700	Take-Two Interactive Software, Inc.(a)		93,933

			11,537,795


	Specialty Retail—0.2%
10,300	Lowe’s Cos., Inc.		593,177
1,900	Ross Stores, Inc.		54,853
5,200	Staples, Inc.		175,292

			823,322


	Supplier & Networking Equipment—0.1%
93,200	Lucent Technologies, Inc.(a)		350,432

See Notes to Financial Statements


36		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Telecommunications Services—2.0%
31,200	BellSouth Corp.	$	867,048
37,900	Corning, Inc.(a)		446,083
92,000	SBC Communications, Inc.		2,370,840
103,900	Verizon Communications, Inc.		4,208,989

			7,892,960


	Textiles, Apparel & Luxury Goods—0.9%
71,600	Jones Apparel Group, Inc.		2,618,412
11,000	Nike, Inc. (Class B shares)		997,590

			3,616,002


	Thrifts & Mortgage Finance—3.1%
5,200	Astoria Financial Corp.		207,844
5,400	Doral Financial Corp.		265,950
76,800	Freddie Mac		5,660,160
138,300	Washington Mutual, Inc.		5,847,324

			11,981,278


	Tobacco—3.6%
230,200	Altria Group, Inc.		14,065,220


	Toys & Amusement—0.1%
21,200	Hasbro, Inc.		410,856


	Trading Companies & Distributors
1,100	W.W. Grainger, Inc.		73,282


	Wireless Telecommunication Services—0.3%
35,800	Nextel Communications, Inc. (Class A shares)(a)		1,074,000

	Total long-term investments (cost $292,453,934)		384,030,123


	SHORT-TERM INVESTMENT—0.4%

	Money Market Mutual Fund
1,471,639	Dryden Core Investment Fund—Taxable Money Market Series (cost $1,471,639; Note 3)		1,471,639

	Total Investments—100.0% (cost $293,925,573; Note 5)		385,501,762
	Liabilities in excess of other assets		(88,261	)

	Net Assets—100%	$	385,413,501

(a)	Non-income producing security.

ADR—American Depositary Receipt.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		37

Large Capitalization Value Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004

The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of December 31, 2004 were as follows:


Insurance	10.7	%
Diversified Financial Services	7.5
Electric Utilities	6.8
Commercial Banks	6.2
Oil & Gas	5.3
Industrial Conglomerates	4.3
Healthcare Providers & Services	3.8
Aerospace	3.6
Tobacco	3.6
Hotels, Restaurants & Leisure	3.5
Multiline Retail	3.5
Thrifts & Mortgage Finance	3.1
IT Services	3.0
Real Estate Investment Trust	3.0
Software	3.0
Household Durables	2.5
Commercial Services & Supplies	2.4
Media	2.3
Telecommunications Services	2.0
Food Products	1.9
Chemicals	1.6
Food & Staples Retailing	1.5
Automotive Component	1.2
Metals & Mining	1.2
Computers & Peripherals	1.1
Leisure Equipment & Products	1.1
Oil Fueld/Equipment & Services	1.0
Paper & Forest Products	0.9
Textiles, Apparel & Luxury Goods	0.9
Multi-Utilities & Unregulated Power	0.7
Automobiles	0.6
Beverages	0.6
Machinery	0.6
Road & Rail	0.6
Healthcare Equipment & Supplies	0.5
Industrial Machinery	0.5
Pharmaceuticals	0.4
Railroads & Equipment	0.4
Money Market Mutual Fund	0.4
Consumer Products	0.3
Wireless Telecommunication Services	0.3
Capital Markets	0.2
Exchange Traded Funds	0.2
Gas & Pipeline Utilities	0.2
Homebuilding	0.2
Specialty Retail	0.2
Communications Equipment	0.1
Diversified Telecommunications Services	0.1
Networking Equipment	0.1
Semiconductors & Semiconductors Equipment	0.1
Supplier & Networking Equipment	0.1
Toys & Amusement	0.1

	100.0	%

See Notes to Financial Statements


38		THE TARGET PORTFOLIO TRUST


Portfolio of Investments As of December 31, 2004		*Small Capitalization Growth Portfolio*


SHARES	DESCRIPTION	VALUE (NOTE 1)

	LONG-TERM INVESTMENTS—96.4%

	Common Stocks

	Aerospace & Defense—1.5%
2,000	Argon ST, Inc.(a)	$	70,900
17,830	DRS Technologies, Inc.(a)		761,519
13,460	Engineered Support Systems, Inc.		797,102
24,580	Mercury Computer Systems, Inc.(a)		729,534

			2,359,055


	Air Freight & Logistics—1.3%
28,028	Forward Air Corp.(a)		1,252,851
51,447	Vitran Corp.(a)		879,744

			2,132,595


	Auto Components—0.3%
11,510	Gentex Corp.		426,100


	Automobiles—1.1%
5,000	IMPCO Technologies, Inc.(a)		37,750
28,765	Monaco Coach Corp.		591,696
29,362	Winnebago Industries, Inc.		1,146,880

			1,776,326
	��

	Banking & Finance—0.7%
15,530	PrivateBancorp, Inc.		500,532
20,400	Signature Bank, Inc.(a)		660,144

			1,160,676


	Biotechnology—2.5%
65,357	Connetics Corp.(a)		1,587,522
15,048	IDEXX Laboratories, Inc.(a)		821,470
102,640	Nabi Biopharmaceuticals(a)		1,503,676

			3,912,668


	Business Services—1.4%
92,951	Digital Insight Corp.(a)		1,710,298
30,880	Marlin Business Services, Inc.(a)		586,720

			2,297,018


	Capital Markets—1.2%
24,797	Jefferies Group, Inc.		998,823
17,477	Piper Jaffray Companies, Inc.(a)		838,022

			1,836,845


	Commercial Banks—1.7%
35,800	Nara Bancorp, Inc.		761,466
61,520	Southwest Bancorporation of Texas, Inc.		1,432,801
10,151	Wintrust Financial Corp.		578,201

			2,772,468

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		39

Small Capitalization Growth Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Commercial Services & Supplies—4.3%
38,516	Education Management Corp.(a)	$	1,271,413
86,883	FTI Consulting, Inc.(a)		1,830,626
83,290	Kforce, Inc.(a)		924,519
18,080	Laureate Education, Inc.(a)		797,147
30,140	Navigant Consulting, Inc.(a)		801,724
26,633	Stericycle, Inc.(a)		1,223,786

			6,849,215


	Communications Equipment—3.5%
50,396	Andrew Corp.(a)		686,897
19,380	Applied Signal Technology, Inc.		683,145
72,072	Avocent Corp.(a)		2,920,358
76,770	Harmonic, Inc.(a)		640,262
63,640	Symmetricom, Inc.(a)		617,944

			5,548,606


	Computers & Peripherals—0.8%
33,840	M-Systems Flash Disk Pioneers, Ltd. (Israel)(a)		667,325
108,550	Synplicity, Inc.(a)		642,616

			1,309,941


	Construction & Engineering—1.4%
47,181	Jacobs Engineering Group, Inc.(a)		2,254,780


	Diversified Financial Services—2.5%
28,167	Affiliated Managers Group, Inc.(a)		1,908,032
29,420	Financial Federal Corp.		1,153,264
18,607	Gabelli Asset Management, Inc. (Class A shares)		902,812

			3,964,108


	Diversified Telecommunication Services—1.0%
26,130	Novatel Wireless, Inc.(a)		506,399
30,580	SafeNet, Inc.(a)		1,123,510

			1,629,909


	Drugs & Healthcare—0.3%
32,675	Enzon Pharmaceuticals, Inc.(a)		448,301


	Electrical Equipment—0.5%
75,200	Artesyn Technologies, Inc.(a)		849,760


	Electronic Equipment & Instruments—5.2%
22,270	BEI Technologies, Inc.		687,698
53,674	Benchmark Electronics, Inc.(a)		1,830,282
7,350	Ceradyne, Inc.(a)		420,494
15,700	Faro Technologies, Inc.(a)		489,526

See Notes to Financial Statements


40		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Electronic Equipment & Instruments (cont’d.)
23,178	Global Imaging Systems, Inc.(a)	$	915,531
36,150	Littelfuse, Inc.(a)		1,234,884
60,859	Photon Dynamics, Inc.(a)		1,477,657
27,508	Rogers Corp.(a)		1,185,595

			8,241,667


	Energy Equipment & Services—3.6%
40,174	Cal Dive International, Inc.(a)		1,637,091
17,525	Cooper Cameron Corp.(a)		943,020
138,220	Grey Wolf, Inc.(a)		728,419
17,048	Hydril Co.(a)		775,854
20,080	Maverick Tube Corp.(a)		608,424
51,210	Patterson-UTI Energy, Inc.		996,035

			5,688,843


	Food & Staples Retailing—1.4%
44,419	Performance Food Group Co.(a)		1,195,315
153,287	SunOpta, Inc. (Canada)(a)		1,100,601

			2,295,916


	Healthcare Equipment & Supplies—7.6%
47,950	Abaxis, Inc.(a)		694,796
42,478	Advanced Neuromodulation Systems, Inc.(a)		1,676,181
17,327	American Medical Systems Holdings, Inc.(a)		724,442
40,550	Closure Medical Corp.(a)		790,725
28,423	Edwards Lifesciences Corp.(a)		1,172,733
118,050	Encore Medical Corp.(a)		801,560
20,745	Inamed Corp.(a)		1,312,120
9,160	Intuitive Surgical, Inc.(a)		366,583
15,320	Laserscope (a)		550,141
144,950	Orthovita, Inc.(a)		607,341
22,570	PolyMedica Corp.		841,635
56,520	PSS World Medical, Inc.(a)		707,348
134,800	Spectranetics Corp. (The)(a)		757,711
20,761	Varian, Inc.(a)		851,409

			11,854,725


	Healthcare Providers & Services—3.7%
32,685	America Service Group, Inc.(a)		874,977
29,036	AmSurg Corp. (Class A shares)(a)		857,723
16,510	Chemed Corp.		1,107,987
24,600	Kindred Healthcare, Inc.(a)		736,770
32,600	Lifeline Systems, Inc.(a)		839,776
18,527	LifePoint Hospitals, Inc.(a)		645,110
36,560	Providence Service Corp. (The)(a)		766,663

			5,829,006


	Hotels, Restaurants & Leisure—2.2%
82,800	Cosi, Inc.(a)		500,940
6,300	Mikohn Gaming Corp.(a)		64,386

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		41

Small Capitalization Growth Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Hotels, Restaurants & Leisure (cont’d.)
66,072	RARE Hospitality International, Inc.(a)	$	2,105,054
32,748	Ruby Tuesday, Inc.		854,068

			3,524,448


	Household Durables—0.5%
11,795	Toll Brothers, lnc.(a)		809,255


	Insurance—2.4%
44,950	Affirmative Insurance Holdings, Inc.		756,958
28,716	Infinity Property & Casualty Corp.		1,010,803
33,200	LabOne, Inc.		1,063,728
82,850	Tower Group, Inc.		994,200

			3,825,689


	Internet Software & Services—4.4%
30,490	Ask Jeeves, Inc.(a)		815,608
17,030	Equinix, Inc.(a)		727,862
17,540	InfoSpace, Inc.(a)		834,027
27,940	J2 Global Communications, Inc.(a)		963,930
17,630	Jupitermedia Corp.(a)		419,241
79,880	Keynote Systems, Inc.(a)		1,111,930
155,937	ValueVision Media, Inc. (Class A shares)(a)		2,169,083

			7,041,681


	IT Services—2.3%
111,751	Ciber, Inc.(a)		1,077,280
37,057	Keane, Inc.(a)		544,738
44,630	Radvision, Ltd.(a)		602,505
22,370	Radware, Ltd.(a)		584,528
34,421	UNOVA, Inc.(a)		870,507

			3,679,558


	Leisure Equipment & Products—0.8%
54,510	Image Entertainment, Inc.(a)		323,789
59,110	K2, Inc.		938,667

			1,262,456


	Media—4.6%
60,550	CNET Networks, Inc.(a)		679,977
45,889	Cox Radio, Inc.(a)		756,251
112,250	Digitas, Inc.(a)		1,071,988
45,811	Emmis Communications Corp.(Class A shares)(a)		879,113
81,000	Entravision Communications Corp.(a)		676,350
12,484	Getty Images, Inc.(a)		859,523
175,463	Valueclick, Inc.(a)		2,338,921

			7,262,123

See Notes to Financial Statements


42		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Multiline Retail—1.1%
34,401	99 Cents Only Stores, Inc.(a)	$	555,920
65,673	Fred’s, Inc.		1,142,710

			1,698,630


	Office Equipment & Supplies—1.0%
64,080	Scientific Games Corp.(a)		1,527,667


	Oil & Gas—2.5%
12,892	Forest Oil Corp.(a)		408,934
51,950	Key Energy Services, Inc.(a)		613,010
36,830	Oil States International, Inc.(a)		710,451
47,650	Superior Energy Services, Inc.(a)		734,287
17,850	Unit Corp.(a)		682,049
29,881	Western Gas Resoures, Inc.		874,018

			4,022,749


	Patent Owners & Lessors—0.4%
113,840	SRS Labs, Inc.(a)		711,614


	Pharmaceuticals—3.7%
31,480	Alexion Pharmaceuticals, Inc.(a)		793,296
19,450	Atherogenics, Inc.(a)		458,242
46,560	Cypress Bioscience, Inc.(a)		654,634
52,828	HealthExtras, Inc.(a)		861,096
38,760	Inspire Pharmaceuticals, Inc.(a)		650,005
52,790	QLT, Inc. (Canada)(a)		848,863
23,550	Rigel Pharmaceuticals, Inc.(a)		575,091
39,600	Salix Pharmaceuticals, Ltd.(a)		696,564
23,250	Vaxgen, Inc.(a)		394,669

			5,932,460


	Road & Rail—0.5%
21,650	Old Dominion Freight Line, Inc.(a)		753,420


	Semiconductors & Semiconductor Equipment—3.5%
55,738	Intersil Corp. (Class A shares)		933,054
26,500	Microsemi Corp.(a)		460,040
86,980	O2Micro International, Ltd.(a)		995,052
35,377	Semtech Corp.(a)		773,695
11,420	Sigmatel, Inc.(a)		405,753
19,459	Silicon Laboratories, Inc.(a)		687,097
53,170	SiRF Technology Holdings, Inc.(a)		676,322
35,780	Ultratech, Inc.(a)		674,453

			5,605,466


	Software—11.3%
46,878	Altiris, Inc.(a)		1,660,888
27,942	Catapult Communications Corp.(a)		675,079
79,542	Embarcadero Technologies, Inc.(a)		748,490
53,790	Epicor Software Corp.(a)		757,901
10,408	Factset Research Systems, Inc.		608,244
54,383	Fair Isaac Corp.		1,994,768
53,253	Filenet Corp.(a)		1,371,797

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		43

Small Capitalization Growth Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Software (cont’d.)
32,994	Hyperion Solutions Corp.(a)	$	1,538,180
39,640	Infocrossing, Inc.(a)		671,105
129,039	Informatica Corp.(a)		1,047,797
32,259	Jack Henry & Associates, Inc.		642,277
18,262	Kronos, Inc.(a)		933,736
18,853	Macrovision Corp.(a)		484,899
28,040	Merge Technologies, Inc.(a)		623,890
19,940	Open Solutions, Inc.(a)		517,642
64,220	Serena Software, Inc.(a)		1,389,721
56,230	Smith Micro Software, Inc.(a)		503,259
36,700	Sonic Solutions, Inc.(a)		823,548
33,900	THQ, Inc.(a)		777,666

			17,770,887


	Specialty Retail—5.9%
22,415	Aaron Rents, Inc. (Class B shares)		560,375
37,800	Beacon Roofing Supply, Inc.(a)		750,708
60,050	Charlotte Russe Holding, Inc.(a)		606,505
21,500	Cost Plus, Inc.(a)		690,795
45,030	Ezcorp, Inc.		693,912
19,130	Guitar Center, Inc.(a)		1,007,960
36,495	Jos. A. Bank Clothiers, Inc.(a)		1,032,809
28,100	Knoll, Inc.(a)		491,750
36,650	Linens ‘n Things, Inc.(a)		908,920
30,538	PETCO Animal Supplies, Inc.(a)		1,205,640
34,315	Tractor Supply Co.(a)		1,276,861

			9,226,235


	Textiles, Apparel & Luxury Goods—1.2%
87,665	Ashworth, Inc.(a)		954,672
23,980	Oxford Industries, Inc.		990,374

			1,945,046


	Thrifts & Mortgage Finance—0.6%
42,350	Saxon Capital, Inc.		1,015,977

	Total long-term investments (cost $128,021,757)		153,053,889


	SHORT-TERM INVESTMENT—3.8%

	Money Market Mutual Fund
6,051,025	Dryden Core Investment Fund—Taxable Money Market Series (cost $6,051,025; Note 3)		6,051,025

	Total Investments—100.2% (cost $134,072,782; Note 5)		159,104,914
	Liabilities in excess of other assets—(0.2%)		(347,659	)

	Net Assets—100%	$	158,757,255

(a)	Non-income producing security.

See Notes to Financial Statements


44		THE TARGET PORTFOLIO TRUST

The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of December 31, 2004 were as follows:


Software	11.3	%
Healthcare Equipment & Supplies	7.6
Specialty Retail	5.9
Electronic Equipment & Instruments	5.2
Media	4.6
Internet Software & Services	4.4
Commercal Services & Supplies	4.3
Money Market Mutual Fund	3.8
Healthcare Providers & Services	3.7
Pharmaceuticals	3.7
Energy Equipment & Services	3.6
Communications Equipment	3.5
Semiconductors & Semiconductor Equipment	3.5
Biotechnology	2.5
Diversified Financial Services	2.5
Oil & Gas	2.5
Insurance	2.4
IT Services	2.3
Hotels, Restaurants & Leisure	2.2
Commercial Banks	1.7
Aerospace & Defense	1.5
Business Services	1.4
Construction & Engineering	1.4
Food & Staples Retailing	1.4
Air Freight & Logistics	1.3
Capital Markets	1.2
Textiles, Appareal & Luxury Goods	1.2
Automobiles	1.1
Multiline Retail	1.1
Diversified Telecommunications Services	1.0
Office Equipment & Supplies	1.0
Computers & Peripherals	0.8
Leisure Equipment & Products	0.8
Banking & Finance	0.7
Thrifts & Mortgage Finance	0.6
Electrical Equipment	0.5
Household Durables	0.5
Road & Rail	0.5
Patent Owners & Lessors	0.4
Auto Components	0.3
Drugs & Healthcare	0.3

	100.2
Liabilities in excess of other assets	(0.2	)

	100.0	%

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		45


*Small Capitalization Value Portfolio*		Portfolio of Investments As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	LONG-TERM INVESTMENTS—97.4%

	Common Stocks

	Aerospace/Defense—1.9%
21,400	Curtiss-Wright Corp.	$	1,228,574
45,050	Moog, Inc. (Class A shares)(a)		2,043,018
20,400	Precision Castparts Corp.		1,339,872

			4,611,464


	Airlines—0.5%
65,000	SkyWest, Inc.		1,303,900


	Auto Related—2.6%
48,500	ArvinMeritor, Inc.		1,084,945
90,800	CSK Auto Corp.(a)		1,519,992
33,100	Snap-On, Inc.		1,137,316
37,800	United Auto Group, Inc.		1,118,502
36,600	Winnebago Industries, Inc.		1,429,596

			6,290,351


	Banks—4.4%
31,100	BancorpSouth, Inc.		757,907
96,800	BankUnited Financial Corp. (Class A shares)(a)		3,092,760
34,500	Commercial Federal Corp.		1,024,995
50,000	Fremont General Corp.		1,259,000
21,200	Hibernia Corp. (Class A shares)		625,612
25,900	Hudson United Bancorp		1,019,942
40,530	Old National Bancorp / IN		1,048,106
37,400	Susquehanna Bancshares, Inc.		933,130
40,400	Washington Federal, Inc.		1,072,216

			10,833,668


	Beverages—0.9%
14,200	Coors Adolph Co. (Class B shares)		1,074,514
52,200	PepsiAmericas, Inc.		1,108,728

			2,183,242


	Building Products—0.4%
49,900	Lennox International, Inc.		1,015,465


	Business Services—3.0%
80,600	Administaff, Inc.(a)		1,016,366
142,000	Allied Waste Industries, Inc.(a)		1,317,760
26,000	Banta Corp.		1,163,760
31,000	John H. Harland Co.		1,119,100
44,600	Kelly Services, Inc. (Class A shares)		1,346,028
43,000	Republic Services, Inc.		1,442,220

			7,405,234

See Notes to Financial Statements


46		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Chemicals—3.2%
29,000	Lubrizol Corp. (The)	$	1,068,940
69,000	Methanex Corp.		1,259,940
61,000	RPM International, Inc.		1,199,260
30,700	Scotts Co. (The) (Class A shares)(a)		2,257,064
50,000	Sensient Technologies Corp.		1,199,500
19,200	Valspar Corp. (The)		960,192

			7,944,896


	Commercial Services & Supplies—0.5%
30,700	School Specialty, Inc.(a)		1,183,792


	Construction & Engineering—1.0%
60,000	Chicago Bridge & Iron Co. (Netherlands)		2,400,000


	Containers & Packaging—0.4%
65,000	Rock-Tenn Co. (Class A shares)		985,400


	Cosmetics & Toiletries—1.0%
72,700	Chattem, Inc.(a)		2,406,370


	Diversified Financial Services—0.4%
35,400	GATX Corp.		1,046,424


	Drugs & Healthcare—6.1%
32,800	Arrow International, Inc.		1,016,472
35,325	Barr Pharmaceuticals, Inc.(a)		1,608,701
59,700	Cooper Cos., Inc.		4,214,222
70,400	Covance, Inc.(a)		2,728,000
85,800	Pharmaceutical Product Development, Inc.(a)		3,542,682
84,700	Serologicals Corp.(a)		1,873,564

			14,983,641


	Electric Utilities—1.8%
52,000	Cleco Corp.		1,053,520
32,800	Duquesne Light Holdings, Inc.		618,280
68,850	PNM Resources, Inc.		1,741,217
41,400	Westar Energy, Inc.		946,818

			4,359,835


	Electrical Equipment—0.5%
36,900	Acuity Brands, Inc.		1,173,420


	Electronic Equipment & Instruments—0.9%
126,700	Checkpoint Systems, Inc.(a)		2,286,935


	Electronics—2.6%
77,600	FLIR Systems, Inc.(a)		4,950,104
177,600	Sanmina-SCI Corp.(a)		1,504,272

			6,454,376


	Financial Services—5.8%
154,700	AmeriCredit Corp.(a)		3,782,414
36,200	Eaton Vance Corp.		1,887,830

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		47

Small Capitalization Value Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Financial Services (cont’d.)
39,800	Global Payments, Inc.	$	2,329,892
74,600	Jefferies, Group, Inc.		3,004,888
61,050	Raymond James Financial, Inc.		1,891,329
7,600	Student Loan Corp. (The)		1,398,400

			14,294,753


	Food & Staples Retailing—0.8%
52,700	Casey’s General Stores, Inc.		956,505
48,700	Ruddick Corp.		1,056,303

			2,012,808


	Food Products—1.2%
23,100	Corn Products International, Inc.		1,237,236
32,400	Fresh Del Monte Produce, Inc.		959,364
19,100	Lancaster Colony Corp.		818,817

			3,015,417


	Gas & Pipeline Utilities—3.8%
38,400	Atmos Energy Corp.		1,050,240
57,400	Cascade Natural Gas Corp.		1,216,880
32,500	Northwest Natural Gas Co.		1,096,550
62,300	ONEOK, Inc.		1,770,566
25,000	Peoples Energy Corp.		1,098,750
25,100	UGI Corp.		1,026,841
39,400	Vectren Corp.		1,055,920
34,000	WGL Holdings, Inc.		1,048,560

			9,364,307


	Health Care Equipment & Supplies—0.4%
19,800	Invacare Corp.		915,948


	Health Care Providers & Services—2.2%
71,000	Accredo Health, Inc.(a)		1,968,120
67,500	American Healthways, Inc.(a)		2,230,200
70,000	Select Medical Corp.		1,232,000

			5,430,320


	Home Builder—3.6%
101,200	Hovnanian Enterprises, Inc. (Class A shares)(a)		5,011,424
13,750	M.D.C. Holdings, Inc.		1,188,550
25,100	Meritage Homes Corp.(a)		2,828,770

			9,028,744


	Hotels, Restaurants & Leisure—2.6%
35,000	Bob Evans Farms, Inc.		914,900
42,500	Brinker International, Inc.(a)		1,490,475
53,200	Intrawest Corp. (Canada)		1,223,068

See Notes to Financial Statements


48		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Hotels, Restaurants & Leisure (cont’d.)
35,500	Landry’s Restaurants, Inc.	$	1,031,630
52,950	Sonic Corp.(a)		1,614,975

			6,275,048


	Household Durables—1.0%
25,000	M/I Homes Inc.		1,377,750
47,500	Maytag Corp.		1,002,250

			2,380,000


	Industrial Conglomerates—0.5%
21,500	Teleflex, Inc.		1,116,710


	Insurance—5.6%
33,900	American Financial Group, Inc.		1,061,409
22,000	AmerUs Group Co.		996,600
39,500	Commerce Group, Inc. (The)		2,411,080
60,150	Delphi Financial Group, Inc. (Class A shares)		2,775,923
20,000	Hilb, Rogal & Hobbs Co.		724,800
25,000	LandAmerica Financial Group, Inc.		1,348,250
50,500	Philadelphia Consolidated Holding Corp.(a)		3,340,070
23,000	Protective Life Corp.		981,870

			13,640,002


	Leisure Related—1.7%
41,700	CEC Entertainment, Inc.(a)		1,666,749
74,900	WMS Industries, Inc.(a)		2,512,146

			4,178,895


	Machinery—4.3%
29,800	Albany International Corp. (Class A shares)		1,047,768
36,000	Barnes Group, Inc.		954,360
34,500	Crane Co.		994,980
19,900	Harsco Corp.		1,109,226
33,000	Lincoln Electric Holdings, Inc.		1,139,820
30,700	Mueller Industries, Inc.		988,540
37,000	Regal-Beloit Corp.		1,058,200
22,000	Tecumseh Products Co. (Class A shares)		1,051,600
49,000	Valmont Industries, Inc.		1,230,390
26,000	York International Corp.		898,040

			10,472,924


	Medical & Dental Supplies—0.5%
41,500	Owens & Minor, Inc.		1,169,055


	Metals & Mining—2.3%
70,300	Agnico-Eagle Mines Ltd. (Canada)		966,625
30,600	Arch Coal, Inc.		1,087,524
88,500	Goldcorp, Inc. (Canada)		1,331,040
45,000	Massey Energy Co.		1,572,750
11,400	Quanex Corp.		781,698

			5,739,637

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		49

Small Capitalization Value Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Multi-Utilities & Unregulated Power—0.5%
40,200	National Fuel Gas Co.	$	1,139,268


	Multimedia—4.0%
44,900	Handleman Co.		964,452
50,200	Harman International Industries, Inc.		6,375,400
41,700	Scholastic Corp.(a)		1,541,232
108,600	Sinclair Broadcast Group, Inc. (Class A shares)		1,000,206

			9,881,290


	Oil & Gas—1.3%
22,500	Frontier Oil Corp.		599,850
2,200	Holly Corp.		61,314
76,400	Range Resources Corp.		1,563,144
31,000	Western Gas Resources, Inc.		906,750

			3,131,058


	Oil & Gas Exploration/Production—6.7%
107,500	Cabot Oil & Gas Corp.		4,756,874
132,800	Chesapeake Energy Corp.		2,191,200
20,000	Energen Corp.		1,179,000
20,000	Frontline Ltd.		887,200
1	Ship Finance International Ltd.		14
30,000	St. Mary Land & Exploration Co.		1,252,200
83,400	Swift Energy Co.(a)		2,413,596
25,000	Teekay Shipping Corp.		1,052,750
40,000	Tidewater, Inc.		1,424,400
60,000	Vintage Petroleum, Inc.		1,361,400

			16,518,634


	Paper & Forest Products—0.5%
24,000	Potlatch Corp.		1,213,920


	Pharmaceuticals—1.4%
91,050	KV Pharmaceutical Co. (Class A shares)(a)		2,007,652
103,564	Nabi Biopharmaceuticals(a)		1,517,213

			3,524,865


	Real Estate Investment Trust—4.7%
52,500	Annaly Mortgage Management, Inc.		1,030,050
41,000	Entertainment Properties Trust		1,826,550
29,200	Equity One, Inc.		692,916
23,900	First Industrial Realty Trust, Inc.		973,447
23,400	Healthcare Realty Trust, Inc.		952,380
82,500	HRPT Properties Trust		1,058,475
46,800	Nationwide Health Properties, Inc.		1,111,500
41,000	New Plan Excel Realty Trust		1,110,280
21,400	Shurgard Storage Centers, Inc.		941,814
30,500	SL Green Realty Corp.		1,846,775

			11,544,187

See Notes to Financial Statements


50		THE TARGET PORTFOLIO TRUST


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Retail Apparel—0.8%
36,000	Brown Shoe Co., Inc.	$	1,073,880
39,000	Burlington Coat Factory Warehouse Corp.		885,300

			1,959,180


	Road & Rail—0.9%
28,000	Arkansas Best Corp.		1,256,920
22,900	USF Corp.		869,055

			2,125,975


	Specialty Retail—0.6%
42,400	Borders Group, Inc.		1,076,960
30,700	Stein Mart Inc.(a)		523,742

			1,600,702


	Telecommunications—2.4%
315,500	American Tower Corp. (Class A shares)(a)		5,805,200


	Textiles & Apparel—1.8%
22,100	Kellwood Co.		762,450
97,600	Phillips-Van Heusen Corp.		2,635,200
53,000	Russell Corp.		1,032,440

			4,430,090


	Thrifts & Mortgage Finance—1.5%
51,300	Accredited Home Lenders Holding Co.(a)		2,548,584
30,000	Astoria Financial Corp.		1,199,100

			3,747,684


	Tobacco—0.9%
41,000	Loews Corp.—Carolina Group		1,186,950
20,000	Universal Corp.		956,800

			2,143,750


	Trading Companies & Distributors—1.0%
69,000	Watsco, Inc.		2,430,180

	Total long-term investments (cost $163,179,518)		239,098,964


	SHORT-TERM INVESTMENT—2.7%

	Money Market Mutual Fund
6,685,092	Dryden Core Investment Fund—Taxable Money Market Series (cost $6,685,092, Note 3)		6,685,092

	Total Investments—100.1% (cost $169,864,610; Note 5)		245,784,056
	Liabilities in excess of other assets—(0.1%)		(207,806	)

	Net Assets—100%	$	245,576,250

(a)	Non-income producing security.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		51

Small Capitalization Value Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004

The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of December 31, 2004 were as follows:


Oil & Gas Exploration/Production	6.7	%
Drugs & Healthcare	6.1
Financial Services	5.8
Insurance	5.6
Real Estate Investment Trust	4.7
Banks	4.4
Machinery	4.3
Multimedia	4.0
Gas & Pipeline Utilities	3.8
Home Builders	3.6
Chemicals	3.2
Business Services	3.0
Money Market Mutual Fund	2.7
Auto Related	2.6
Electronics	2.6
Hotels, Restaurants & Leisure	2.6
Telecommunications	2.4
Metals & Mining	2.3
Health Care Providers	2.2
Aerospace & Defense	1.9
Electric Utilities	1.8
Textiles & Apparel	1.8
Leisure Related	1.7
Thrifts & Mortgage Finance	1.5
Pharmaceuticals	1.4
Oil & Gas	1.3
Food Products	1.2
Construction & Engineering	1.0
Cosmetics & Toiletries	1.0
Household Durables	1.0
Trading Companies & Distributors	1.0
Beverages	0.9
Electronic Equipment & Instruments	0.9
Road & Rail	0.9
Tobacco	0.9
Food & Staples Retailing	0.8
Retail Apparel	0.8
Specialty Retail	0.6
Airlines	0.5
Commercal Services & Supplies	0.5
Electrical Equipment	0.5
Industrial Conglomerates	0.5
Medical & Dental Supplies	0.5
Multi-Utilities & Unregulated Power	0.5
Paper & Forest Products	0.5
Building Products	0.4
Containers & Packaging	0.4
Diversified Financial Services	0.4
Health Care Equipment & Supplies	0.4

	100.1
Liabilities in excess of other assets	(0.1	)

	100.0	%

See Notes to Financial Statements


52		THE TARGET PORTFOLIO TRUST


Portfolio of Investments As of December 31, 2004		*International Equity Portfolio*


SHARES	DESCRIPTION	VALUE (NOTE 1)

	LONG-TERM INVESTMENTS—98.4%

	Common Stocks—97.9%

	Finland—4.6%
484,500	Nokia OYJ	$	7,652,426
196,000	Stora Enso Oyj (Class R shares)		3,002,474

			10,654,900


	France—11.7%
73,600	Carrefour SA		3,505,429
140,827	Credit Agricole SA		4,249,503
30,800	Lagardere SCA		2,223,026
68,775	Sanofi-Aventis		5,496,765
16,500	Schneider Electric SA		1,148,294
30,285	Total SA		6,615,196
117,600	Vivendi Universal SA		3,754,824

			26,993,037


	Germany—11.0%
283,400	Deutsche Telekom AG(a)		6,409,917
58,000	E.ON AG		5,296,234
69,300	Schering AG		5,178,896
47,300	Siemens AG		4,009,281
99,800	Volkswagen AG		4,524,031

			25,418,359


	Ireland—2.9%
252,700	Bank of Ireland		4,195,948
92,551	CRH PLC		2,478,242

			6,674,190


	Italy—4.2%
260,100	Enel SpA		2,556,100
231,200	ENI-Entre Nazionale Idrocarburi SpA		5,788,642
483,300	Terna SpA		1,386,113

			9,730,855


	Japan—19.1%
28,530	Acom Co., Ltd.		2,135,504
10,700	Aiful Corp.		1,176,822
386	East Japan Railway Co.		2,147,165
53,800	Fanuc, Ltd.		3,517,713
461,000	Fujitsu Ltd.		3,000,751
286,000	Mitsubishi Estate Co., Ltd.		3,349,273
68,500	Murata Manufacturing Co. Ltd.		3,830,439
32,000	NEC Electronics Corp.		1,561,433

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		53

International Equity Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


SHARES	DESCRIPTION	VALUE (NOTE 1)

	Japan (cont’d.)
406,100	Nissan Motor Co., Ltd.	$	4,414,906
316,000	Nomura Holdings, Inc.		4,607,242
1,552	NTT DoCoMo, Inc.		2,862,574
88,200	Shin-Etsu Chemical Co., Ltd.		3,615,107
312,000	Sumitomo Trust & Banking Co., Ltd.		2,256,192
40,500	Takeda Chemical Industries, Ltd.		2,039,426
853,000	Tokyo Gas Co., Ltd.		3,496,243

			44,010,790


	Netherlands—6.4%
65,036	Heineken NV		2,168,456
147,719	Philips Electronics NV		3,917,354
148,800	Royal Dutch Petroleum Co.		8,565,556

			14,651,366


	Norway—1.8%
146,900	DBN NOR ASA		1,449,196
172,900	Statoil ASA		2,711,978

			4,161,174


	Singapore—1.2%
331,850	Oversea-Chinese Banking Corp., Ltd.		2,744,410


	Switzerland—6.9%
71,700	Compagnie Financiere Richemont AG		2,386,637
141,900	Credit Suisse Group		5,965,016
12,900	Nestle SA		3,375,033
58,800	Swiss Reinsurance(a)		4,193,721

			15,920,407


	United Kingdom—28.1%
481,400	Barclays PLC		5,416,050
338,800	BP PLC		3,304,351
256,612	Cadbury Schweppes PLC		2,389,449
344,499	Diageo PLC		4,914,233
93,700	Emap PLC		1,467,042
301,900	GlaxoSmithKline PLC		7,082,936
403,648	HSBC Holdings PLC(a)		6,811,939
112,860	Imperial Tobacco Group PLC		3,092,025
196,640	Kesa Electricals PLC		1,066,521
314,100	Marks & Spencer Group PLC		2,068,431
436,450	Prudential PLC		3,795,873
830,900	Rentokil Initial PLC		2,356,976
71,300	Rio Tinto PLC		2,098,508
201,200	Royal Bank of Scotland Group PLC		6,767,700
500,400	Unilever PLC		4,914,076

See Notes to Financial Statements


54		THE TARGET PORTFOLIO TRUST


SHARES		DESCRIPTION	VALUE (NOTE 1)

		United Kingdom (cont’d.)
	2,588,800	Vodafone Group PLC	$	7,020,467

				64,566,577

		Total common stocks (cost $180,033,988)		225,526,065


		Preferred Stock—0.5%
	1,780	Porsche AG (cost $839,859)		1,129,164

		Total long-term investments (cost $180,873,847)	$	226,655,229

Principal Amount (000)		SHORT-TERM INVESTMENT—0.4%

		U.S. Government Obligations
		U.S. Treasury Bills
$	946	Various, 2/10/05(b) (cost $943,919)		943,886

		Total Investments—98.8% (cost $181,817,766; Note 5)		227,599,115
		Other assets in excess of liabilities—1.2%		2,700,719

		Net Assets—100%	$	230,299,834

(a)	Non-income producing security.

(b)	Yields range from 1.95% to 2.11% and represent yield-to-maturity as of respective purchase date.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		55

International Equity Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004

The industry classification of portfolio holdings and other assets in excess of liabilities shown as a percentage of net assets as of December 31, 2004 were as follows:


Banks	17.2	%
Energy-Integrated	8.8
Telecommunications	7.7
Drugs	7.7
Diversified Manufacturing	6.3
Food & Beverage	5.6
Automotive	4.4
Utilities-Electric	4.0
Alcohol & Tobacco	3.5
Insurance	3.5
Financial Services	3.4
Technology Hardware	3.3
Retail & Apparel	2.9
Oil & Gas	2.9
Chemicals	2.5
Electronics	1.7
Media	1.6
Utilities-Gas	1.5
Real estate	1.5
Computers & Peripherals	1.3
Housing	1.1
Consumer Discretionary	1.0
Commercial Services	1.0
Leisure & Entertainment	1.0
Railroads	0.9
Metals	0.9
Semiconductor Components	0.7
Electrical Equipment	0.5
U.S. Government Obligations	0.4

	98.8
Other assets in excess of liabilities	1.2

	100.0	%

See Notes to Financial Statements


56		THE TARGET PORTFOLIO TRUST


Portfolio of Investments As of December 31, 2004		*International Bond Portfolio*


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

		LONG-TERM INVESTMENTS—96.6%

		Denmark—0.5%
		Danish Gov’t. Bonds,
DKK	1,100	6.00%, 11/15/11	$	232,520


		Eurobonds—63.3%
		Arena BV, Series 2003-I, Class A2,
EUR	500	4.30%, 5/19/55(c)		709,551
		Argo Mortgage Ser. L, Series 1, CLass A,
	306	2.41%, 10/28/36(c)		416,649
		Atlantes Mortgage PLC, Series 1, Class A,
	251	2.42%, 1/17/36(c)		341,740
		Austrian Gov’t. Bonds,
	511	7.25%, 5/3/07		764,987
	560	4.00%, 7/15/09		792,805
		Bayerische Hypo-und Vereinsbank AG,
	400	4.75%, 9/19/07		571,021
		Belgian Gov’t. Bonds,
	1,100	4.25%, 9/28/14		1,563,087
		Chase CCMT, Series 1998-4, Class A,
	300	5.00%, 8/15/08		434,607
		Chester Asset Receivables,
	500	6.125%, 10/15/10		772,937
		Citibank Credit Card Issuance Trust, Series 2001-A4,
	650	5.375%, 4/11/11		973,016
		Credit Suisse Group Capital Guernsey V Ltd.,
	80	6.905%, 11/29/49(b)		126,932
		DePfa Deutsche Pfandbriefbank AG,
	200	5.00%, 2/3/05		272,517
		Deutsche Bundesrepublik, Series 03
	100	4.50%, 1/4/13		145,254
		Deutsche Bundesrepublik, Series 98
	560	5.63%, 1/4/28		915,369
		Deutsche Bundesrepublik, Series 99
	300	4.00%, 7/4/09		424,775
		Deutsche Genossenschaft Hypothekebank,
	300	5.75%, 1/22/07		432,955
		Deutsche Telekom International Finance BV,
	70	7.50%, 1/24/33		127,878
		Dutch MBS BV, Series-X, Class A,
	500	2.43%, 10/2/79(c)		682,955
		Finnish Gov’t. Bonds,
	1,590	2.75%, 7/4/06		2,173,675
	1,450	5.375%, 7/4/13		2,237,868
	2,010	4.25%, 7/4/15		2,859,034

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		57

International Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

		Eurobonds (cont’d.)
		French Gov’t. Bonds,
USD	580	5.75%, 10/25/32	$	974,814
		Goldman Sachs Group, Inc. (The),
	80	5.125%, 4/24/13		117,338
		Hilton Group Finance PLC,
	60	6.50%, 7/17/09		91,782
		Inter-American Development Bank,
	900	5.50%, 3/30/10		1,360,959
		Linde Finance BV,
	60	6.00%, 7/29/49(b)		89,817
		MBNA Credit Card Master Trust, Series 2002-A2, Class A,
	550	5.60%, 7/17/14		838,494
		Mizuho Finance Group Cayman Ltd.,
	100	4.75%, 4/15/14(b)		142,282
		Netherlands Gov’t. Bonds,
	600	3.75%, 7/15/09		841,979
	400	7.50%, 1/15/23		777,687
		Permanent Financing PLC,
	500	5.10%, 6/11/07		715,645
		Portuguese Obrigacoes do Tesouro OT,
	1,320	3.00%, 7/17/06		1,809,509
		RBS Capital Trust II, Class A,
	50	6.467%, 12/29/49(b)		78,639
		Royal Bank of Scotland PLC (The),
	40	6.125%, 2/5/13		62,691
		SLM Student Loan Trust (The),
	250	3.80%, 6/17/10		347,019
		Spanish Gov’t. Bonds,
	1,600	4.40%, 1/31/15		2,300,085
		Zurich Finance (USA), Inc.,
	100	5.75%, 10/2/23		148,067

				28,436,419


		Japan—15.2%
		Japanese Gov’t. Bonds,
JPY	246,000	0.60%, 9/20/08		2,419,555
	187,000	0.60%, 3/20/09		1,834,261
	9,000	1.50%, 12/20/11		91,065
	14,000	1.50%, 3/20/12		141,283
	94,000	1.20%, 9/20/12		924,638
	145,000	1.40%, 12/20/13		1,426,967

				6,837,769

See Notes to Financial Statements


58		THE TARGET PORTFOLIO TRUST


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

		United Kingdom—10.0%
		European Investment Bank,
GBP	5	7.625%, 12/7/06	$	10,106
		United Kingdom Treasury Stocks,
	2,200	5.75%, 12/7/09		4,455,247

				4,465,353


		United States—7.6%
		Chase Funding Loan Acquisition Trust,
USD	80	2.75%, 1/25/33(c)		79,808
		CIT Group Home Equity Loan Trust,
	17	2.71%, 3/25/33(c)		17,116
		Federal National Mortgage Association,
	71	3.50%, 3/25/09		70,854
		Federal Republic of Brazil,
	100	8.30%, 6/29/09(c)		117,750
	1,000	10.50%, 7/14/14		1,185,000
		France Telecom S.A.,
	70	9.25%, 3/1/31		94,891
		Long Beach Mortgage Loan Trust,
	37	2.74%, 7/25/33(c)		36,760
		Morgan Stanley Capital, Series 2004-HE9, Class A-3A
	99	2.61%, 11/25/34(c)		98,510
		Republic of Peru,
	100	9.125%, 2/21/12		117,000
		Russian Gov’t. Bonds,
	600	5.00%, 3/31/30		620,640
		South Africa Gov’t. Bonds,
	200	7.375%, 4/25/12		229,000
		United Mexican States,
	100	6.75%, 9/27/34		98,750
		United States Treasury Notes, TIPS,
	549	3.50%, 1/15/11		623,950

				3,390,029

		Total long-term investments (cost U.S.$37,941,078)		43,362,090


		SHORT-TERM INVESTMENTS—14.1%

		Commercial Paper—7.8%
		BP Capital Markets PLC,
	1,100	2.10%, 1/3/05(a)		1,099,872
		Danske Corp.,
	1,200	2.44%, 3/23/05(a)		1,193,664
		UBS Finance LLC,
	1,200	2.51%, 4/27/05(a)		1,190,568

				3,484,104


		Foreign Government Securities—0.5%
		Canada Treasury Bills,
CAD	300	2.34%, 2/10/05(a)		249,701

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		59

International Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

		U.S. Government and Agency Securities—5.8%
		Federal National Mortgage Association,
USD	200	2.35%, 3/9/05 (a)(d)	$	199,250
	300	2.38%, 3/15/05(a)(d)		298,500
	200	2.42%, 3/16/05(a)(d)		199,000
	800	2.44%, 3/23/05(a(d)		795,892
	1,000	2.47%, 3/30/05(a)(d)		994,410
		United States Treasury Bills,
	130	2.16%, 3/17/05(a)(d)		129,448

				2,616,500

		Total short-term investments (cost U.S.$6,329,758)		6,350,305


		Total Investments, Before Outstanding Options Written—110.7% (cost US$44,270,836; Note 5)		49,712,395


		OUTSTANDING OPTIONS WRITTEN(e)
Contracts
		Call Options
	32	United States Treasury Notes, expiring 2/18/05 @ $115		(3,500	)


		Put Options
	14	United States Treasury Notes, expiring 2/18/05 @ $109		(2,406	)

		Total outstanding options written (premiums received $29,965)		(5,906	)

		Total Investments; Net of Outstanding Options Written—110.7%		49,706,489
		Liabilities in excess of other assets—(10.7%)		(4,801,488	)

		Net Assets—100%	$	44,905,001

Portfolio securities are classified according to the securities currency denomination.

CAD—Canadian Dollar.

DKK—Danish Krone.

EUR—Euro.

GBP—British Pound.

JPY—Japanese Yen.

USD—United States Dollar.

(a)	Rate quoted represents yield-to-maturity as of purchase date.

(b)	Variable Rate instruments without fixed maturity date. Maturity date shown is the next callable date for the instrument.

(c)	Variable Rate instruments. The maturity date presented for these instruments is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted.

(d)	Segregated as collateral for financial futures contracts.

(e)	Non-income producing security.

See Notes to Financial Statements


60		THE TARGET PORTFOLIO TRUST

The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of December 31, 2004 were as follows:


Foreign Government Securities	72.7	%
Commercial Paper	7.8
Banking	6.8
U.S. Government and Agency Securities	5.7
Collateralized Mortgage Loan Securities	4.9
Collateralized Credit Cards	4.0
Asset Backed Securities	3.2
Diversified Financial Services	1.9
U.S. Government Obligations	1.7
Collateralized Student Loan Obligations	0.8
Telecommunications	0.5
Insurance	0.3
Lodging	0.2
Engineering & Construction	0.2

	110.7
Liabilities in excess of other assets	(10.7	)

	100.0	%

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		61


*Total Return Bond Portfolio*		Portfolio of Investments As of December 31, 2004


MOODY’S RATING (UNAUDITED)	PRINCIPAL AMOUNT (000)#		DESCRIPTION	VALUE (NOTE 1)

			LONG-TERM INVESTMENTS—75.7%

			Corporate Bonds—8.6%

			Airlines—0.3%
			Embarcadero Aircraft Securitization Trust, Class A-1,
B3	$	100	2.88%, 8/15/25(b)	$	52,033
			United Airlines, Inc., Equipment Trust,
NR		1,000	10.85%, 2/19/15(a)(d)		390,000

					442,033


			Automotive—1.0%
			DaimlerChrysler NA Holding Corp., Gtd.,
A3		1,700	7.40%, 1/20/05		1,704,157


			Financial Services—3.8%
			Ford Motor Credit Co., Notes,
A3		1,700	7.50%, 3/15/05		1,714,519
			General Motors Acceptance Corp., Notes,
Baa1		900	4.30%, 5/19/05, MTN(b)		904,224
Baa1		100	5.25%, 5/16/05, MTN		100,929
Baa1		1,500	6.875%, 9/15/11		1,537,189
Baa1		100	7.50%, 7/15/05		102,060
			HSBC Bank, Sr. Notes,
Aa2		800	2.59%, 9/21/07(b)		800,339
			PEMEX Project Funding Master Trust, Gtd. Notes,
Baa1		500	8.00%, 11/15/11		575,500
Baa1		250	9.125%, 10/13/10		299,750
			PP&L Capital Funding, Inc., Gtd. Notes,
Ba1		200	7.29%, 5/18/06		208,644
			Sr. Notes,
Baa3		600	7.75%, 4/15/05, MTN		607,180

					6,850,334


			Insurance—0.9%
			AIG Sunamerica, Sec’d., MTN, (Cayman Islands),
Aaa	JPY	170,000	1.20%, 1/26/05		1,660,173


			Telecommunications—1.3%
			AT&T Corp., Sr. Notes,
Ba1		300	9.05%, 11/15/11		345,375
			Qwest Corp., Debs.,
Ba3		250	7.50%, 6/15/23		248,750
			SBC Communications, Inc., Notes,
A2		1,700	4.21%, 6/5/21		1,709,775

					2,303,900

See Notes to Financial Statements


62		THE TARGET PORTFOLIO TRUST


MOODY’S RATING (UNAUDITED)	PRINCIPAL AMOUNT (000)#		DESCRIPTION	VALUE (NOTE 1)

			Utilities—Gas and Electric—1.3%
			CenterPoint Energy Resources Corp., Notes,
Ba1	$	400	8.125%, 7/15/05	$	410,536
			El Paso Corp., Sr. Notes, MTN,
Caa1		750	7.75%, 1/15/32		718,124
Caa1		500	7.80%, 8/1/31		480,000
			Pacific Gas & Electric Co., First Mtge.,
Baa2		560	2.72%, 4/3/06(b)		560,460
			TXU Energy Co. LLC,
Baa2		201	2.84%, 1/17/06(b)		201,551

					2,370,671

			Total corporate bonds (cost $15,901,329)		15,331,268


			U.S. Government Agency Mortgage-Backed Securities—7.9%
			Federal Home Loan Mortgage Corp.,
		11	2.66%, 9/15/26(b)		11,094
		101	3.79%, 1/1/24(b)		103,017
		70	5.50%, 4/1/29 - 6/1/29		71,518
		166	6.00%, 9/1/22		172,697
		134	7.50%, 9/1/16 - 7/1/17		143,828
		1,368	8.00%, 9/15/29		1,492,714
		1	9.25%, 1/1/10		1,385
			Federal National Mortgage Association,
		288	3.66%, 1/1/20(b)		293,597
		183	3.97%, 5/1/36(b)		185,374
		622	4.50%, 8/1/33		602,586
		9,500	4.50%, 1/15/35, TBA		9,179,375
		79	5.00%, 1/1/19		80,134
		203	6.00%, 11/1/16 - 1/1/23		211,019
		422	6.50%, 4/1/21 - 9/1/21		444,883
			Government National Mortgage Association,
		304	3.375%, 2/20/17 - 2/20/26(b)		301,609
		174	3.75%, 7/20/22 - 7/20/27(b)		176,083
		133	4.00%, 11/20/29(b)		134,232
		213	4.625%, 10/20/26 - 10/20/27(b)		217,851
		190	8.50%, 6/15/30 - 8/20/30		207,314

			Total U.S. Government agency mortgage-backed securities (cost $13,852,566)		14,030,310


			Collateralized Mortgage Obligations—3.0%
			American Housing Trust 1, Series 1-5, Class A,
Aaa		4	8.625%, 8/25/18		4,021
			Bear Stearns ARM Trust, Series 2001-9,
Aaa		206	5.64%, 2/25/33(b)		206,234
			CS First Boston Mortgage Securities, Series 2002-HE16 A2,
Aaa		801	2.75%, 10/25/32(b)		801,372
			Honda Auto Receivables Owner Trust, Series 2004-3 A1,
A1+(c)		670	2.09%, 11/18/05		670,004

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		63

Total Return Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


MOODY’S RATING (UNAUDITED)	PRINCIPAL AMOUNT (000)#		DESCRIPTION	VALUE (NOTE 1)

			Collateralized Mortgage Obligations (cont’d.)
			Indymac ARM Trust, Series 2001, Class A,
Aaa	$	26	3.87%, 1/25/32(b)	$	25,940
			Residential Funding Mortgage Securities I, Inc., Series 2003-S9, Class A1,
Aaa		192	6.50%, 3/25/32		197,219
			Washington Mutual Mortgage Loan, Trust 2003, Class R1 A1,
Aaa		3,351	2.69%, 12/25/27(b)		3,347,140
			Trust 2001, Class A,
Aaa		43	3.56%, 1/25/41(b)		42,787

			Total collateralized mortgage obligations (cost $5,300,383)		5,294,717


			Municipals—4.9%
			Du Page County Illinois, Limited Tax,
Aaa		500	5.00%, 1/1/31		510,625
			Georgia State Road & Thruway Authority Rev., Governors Transportation Choices,
Aaa		500	5.00%, 3/1/21		530,180
			Golden State Tob. Securitization Corp., California State Tob. Settlement, Rev., Series 2003, Class A-1,
Baa3		500	6.25%, 6/1/33		500,635
Baa3		400	6.75%, 6/1/39		401,244
			Massachusetts State Water Resources Authority, Series J,
Aaa		750	5.00%, 8/1/32		768,975
			Minnesota State Rev.,
Aa1		600	5.00%, 8/1/13		671,328
			New York City Trust Cultural Resources, Museum of Modern Art, Series 2001, Class D,
Aaa		1,500	5.125%, 7/1/31		1,561,875
			South Carolina State Highway, Series B,
Aaa		1,100	5.00%, 4/1/17		1,183,248
			South Central Connecticut, Regional Water Authority,
Aaa		1,300	5.00%, 8/1/26		1,362,426
			Tobacco Settlement Financing Corp., New Jersey State,
Baa2		800	6.00%, 6/1/37		730,128
Baa2		500	6.375%, 6/1/32		483,325

			Total municipals (cost $8,278,056)		8,703,989


			U.S. Government Securities—41.1%
			United States Treasury Bonds, TIPS,
		2,713	0.875%, 4/15/10		2,686,999
		3,709	2.00%, 1/15/14		3,839,121
		808	2.375%, 1/15/25		864,023
		1,382	3.375%, 1/15/07(g)		1,463,570
		3,182	3.625%, 1/15/08		3,465,817

See Notes to Financial Statements


64		THE TARGET PORTFOLIO TRUST


MOODY’S RATING (UNAUDITED)	PRINCIPAL AMOUNT (000)#		DESCRIPTION	VALUE (NOTE 1)

			U.S. Government Securities (cont’d.)
			United States Treasury Bonds,
	$	600	6.00%, 2/15/26	$	687,305
		60	8.125%, 8/15/19		81,895
		3,550	8.875%, 8/15/17(f)		5,030,737
			United States Treasury Notes,
		6,800	1.625%, 4/30/05(f)		6,783,265
		2,000	2.50%, 10/31/06		1,981,328
		2,100	3.375%, 10/15/09		2,079,328
		1,000	3.875%, 5/15/09		1,014,727
		2,500	4.00%, 2/15/14		2,465,528
		15,600	4.88%, 2/15/12		16,488,467
		3,000	5.00%, 2/15/11		3,191,367
		17,700	5.00%, 8/15/11		18,842,889
			United States Treasury Strips, P/O,
		500	Zero Coupon, 11/15/16		287,772
		2,400	Zero Coupon, 5/15/20		1,121,966
		2,500	Zero Coupon, 2/15/22		1,055,785

			Total U.S. Government securities (cost $73,007,961)		73,431,889


			Foreign Government Securities—10.2%
			Federal Republic of Brazil,
B2		72	3.06%, 4/15/06(b)		72,086
B1		44	3.125%, 4/15/12(b)		42,022
B1		2,395	8.00%, 4/15/14		2,450,718
			Federal Republic of Germany,
Aaa	EUR	1,000	3.75%, 1/4/09		1,403,212
Aaa	EUR	900	5.25%, 7/4/10		1,352,071
Aaa	EUR	1,400	5.625%, 1/4/28		2,288,422
Aaa	EUR	1,100	6.50%, 10/14/05 - 7/4/27		1,584,047
			Italy Government Bond,
Aa2	JPY	58,000	3.75%, 6/8/05		574,865
			Republic of Panama,
Ba1		300	8.875%, 9/30/27		330,000
Ba1		450	9.375%, 7/23/12		530,708
			Republic of Peru,
Ba3		500	9.125%, 1/15/08		568,750
			Russian Gov’t. Bond,
Baa3		2,950	5.00%, 3/31/30		3,051,481
			United Kingdom Treasury,
Aaa	GBP	1,700	5.00%, 9/7/14		3,381,005
			United Mexican States, MTN,
Baa1		700	5.875%, 1/15/14		717,150

			Total foreign government securities (cost $16,967,187)		18,346,537

			Total long-term investments (cost $133,307,482)		135,138,710

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		65

Total Return Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


MOODY’S RATING (UNAUDITED)	PRINCIPAL AMOUNT (000)#		DESCRIPTION	VALUE (NOTE 1)

			SHORT-TERM INVESTMENTS—32.3%

			Commercial Paper—30.7%
			ANZ Inc., (Delaware)
P-1	$	300	2.02%, 2/2/05(e)	$	299,409
			ASB Bank, Ltd.,
P-1		800	2.43%, 3/14/05(e)		796,288
			Barclays U.S. Funding,
P-1		3,100	2.43%, 3/15/05(e)		3,085,399
			BP Capital Markets, PLC,
P-1		1,400	2.10%, 1/3/05(a)		1,399,837
			CBA (DE) Finance,
P-1		4,500	2.43%, 3/15/05(e)		4,478,805
			CDC Corp.,
P-1		2,100	2.04%, 2/16/05(e)		2,093,900
P-1		900	2.04%, 2/22/05(e)		897,099
			Danske Corp.,
P-1		1,700	2.38%, 4/1/05(e)		1,689,902
P-1		3,700	2.44%, 3/23/05(e)		3,680,464
			Dexia Delaware LLC,
P-1		200	2.06%, 1/26/05(e)		199,714
P-1		3,100	2.41%, 3/14/05(e)		3,085,616
			Fortis Funding LLC,
P-1		4,800	2.00%, 1/21/05(e)		4,793,902
			General Electric Capital Corp.,
P-1		100	2.28%, 2/23/05(e)		99,666
P-1		700	2.32%, 2/24/05(e)		697,576
			General Motors Acceptance Corp.,
P-2		300	2.36%, 3/21/05(e)		298,445
P-2		600	2.50%, 4/5/05(e)		596,091
			HBOS Treasury Services,
P-1		4,900	2.41%, 3/14/05(e)		4,877,265
P-1		500	2.42%, 3/15/05(e)		497,645
			ING US Funding LLC,
P-1		3,500	2.40%, 3/14/05(e)		3,483,760
			Nestle Capital Corp.,
P-1		1,600	2.22%, 2/15/05(e)		1,595,282
			Nordea North America, Inc.,
P-1		800	2.45%, 4/4/05(e)		795,016
			Pfizer, Inc.,
P-1		2,800	2.24%, 3/18/05(e)		2,786,196
P-1		2,600	2.33%, 3/3/05(e)		2,589,938
			Royal Bank of Scotland PLC,
P-1		700	2.03%, 1/21/05(e)		699,111
			Shell Finance UK PLC,
P-1		3,500	2.10%, 1/7/05(e)		3,498,775

See Notes to Financial Statements


66		THE TARGET PORTFOLIO TRUST


MOODY’S RATING (UNAUDITED)	PRINCIPAL AMOUNT (000)#		DESCRIPTION	VALUE (NOTE 1)

			Commercial Paper (cont’d.)
			Spintab AB,
P-1	$	1,200	2.07%, 1/7/05(e)	$	1,199,519
			UBS Finance (DE) LLC,
P-1		4,600	2.37%, 3/10/05(e)		4,579,944

			Total commercial paper (cost $54,791,814)		54,794,564


			U.S. Government Securities—1.4%
			United States Treasury Bills,
		1,500	2.13%, 5/5/05(e)		1,487,877
		500	2.20%, 3/3/05(e)		498,304
		500	2.21%, 3/17/05(e)(g)		497,878

			(cost $2,484,842)		2,484,059

	Contracts		OUTSTANDING OPTIONS PURCHASED(a)—0.2%
		60	Euro Futures, expiring 9/19/05 @$93.25		750

	Notional Amount (000)
			Call Options
	$	2,100	Interest Rate Swaps, 3 month LIBOR over 5.75%, expiring 4/27/09		183,274

			Put Options
		2,100	Interest Rate Swaps, 3 month LIBOR over 6.25%, expiring 4/27/09		110,086

					293,360

			Total options purchased (cost $259,320)		294,110

			Total short-term investments (cost $57,535,976)		57,572,733


			Total Investments, Before Outstanding Options Written and Securities Sold Short—108.0% (cost $190,843,458; Note 5)		192,711,443

	Contracts		OUTSTANDING OPTIONS WRITTEN(a)—(0.1%)
			Call Options
		29	United States Treasury Notes, expiring 2/18/05 @$113		(14,500	)
		77	United States Treasury Notes, expiring 2/18/05 @$114		(18,047	)

					(32,547	)

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		67

Total Return Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


CONTRACTS			DESCRIPTION	VALUE (NOTE 1)


			Put Options
	6		90 Day GBP LIBOR expiring, 12/21/2005 @$94.25	$	(432	)
	106		United States Treasury Notes, expiring 2/18/05 @$108		(9,937	)

					(10,369	)

Notional Amount (000)
			Call Options
			Interest Rate Swaps,
$	(15,100	)	3 month LIBOR over 4.0%, expiring 9/23/05		(106,546	)
	(15,100	)	3 month LIBOR over 7.0%, expiring 9/23/05		(4,983	)

			Put Options
			Interest Rate Swaps,
	(1,000	)	3 month LIBOR over 4.0%, expiring 10/31/05		(7,625	)
	(1,000	)	3 month LIBOR over 7.0%, expiring 10/31/05		(551	)

					(119,705	)

			Total outstanding options written (premiums received $545,289)		(162,621	)

Principal Amount (000)#			INVESTMENTS SOLD SHORT—(19.6%)
			Federal National Mortgage Association,
	(500	)	5.00%, 1/1/35, TBA		(495,937	)
	(800	)	6.00%, 1/1/35, TBA		(827,000	)
			United States Treasury Notes,
	(10,600	)	3.625%, 5/15/13		(10,271,644	)
	(11,200	)	3.875%, 2/15/13		(11,050,379	)
	(4,500	)	4.00%, 11/15/12		(4,492,440	)
	(750	)	4.375%, 5/15/07		(770,830	)
	(4,850	)	4.375%, 8/15/12		(4,965,755	)
	(1,900	)	4.875%, 2/15/12		(2,008,211	)

			Total investments sold short (proceeds received $34,755,801)		(34,882,196	)


			Total Investments, Net of Outstanding Options Written and Investments Sold Short—88.3% (cost $155,542,368)	$	157,666,626
			Other assets in excess of other liabilities—11.7%		20,821,547

			Net Assets—100%	$	178,488,173

See Notes to Financial Statements


68		THE TARGET PORTFOLIO TRUST

The following abbreviations are used in the portfolio descriptions:

ARM—Adjustable Rate Mortgage.

EUR—Euro.

GBP—British Pound.

JPY—Japanese Yen.

MTN—Medium Term Note

P/O—Principal Only.

TBA—To be announced. Such securities are purchased on a forward commitment basis.

TIPS—Treasury Inflation Protection Security.

#	Principal amount is denoted in U.S. dollars unless otherwise indicated.

(a)	Non-income producing security.

(b)	Variable rate instrument.

(c)	Standard and Poor’s rating.

(d)	Issuer in bankruptcy.

(e)	Rate quoted represents yield-to-maturity as of purchase date.

(f) Security pledged as collateral for TBA’s.

(g) All or portion of security pledged as initial margin for financial futures.

The Fund’s current prospectus contains a description of Moody’s and Standard & Poor’s ratings.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		69

Total Return Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004

The major asset group classification of portfolio holdings and other assets in excess of other liabilities shown as a percentage of net assets as of December 31, 2004 were as follows:


U.S. Government Securities	42.5	%
Commercial Paper	30.7
Foreign Government Securities	10.2
Corporate Bonds	8.6
U.S. Government Agency Mortgage-Backed Securities	7.9
Municipals	4.9
Collateralized Mortgage Obligations	3.0
Options Purchased	0.2

	108.0
Outstanding Options Written	(0.1	)
Securities Sold Short	(19.6	)
Other assets in excess of other liabilities	11.7

	100.0	%

See Notes to Financial Statements


70		THE TARGET PORTFOLIO TRUST


Portfolio of Investments As of December 31, 2004		*Intermediate Term-Bond Portfolio*


MOODY’S RATINGS (UNAUDITED)	PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

			LONG-TERM INVESTMENTS—59.9%
			Asset Backed Securities—0.9%
			Countrywide Asset-Backed Certificates,
			Ser. 2004-12,
Aaa	$	1,448	2.38%, 1/25/24(a)	$	1,449,370
			Credit-Based Asset Servicing and Securitization,
			Ser. 2002-CB1, Class A2,
AAA(d)		271	2.69%, 8/25/29(a)		271,393
			First Franklin Mortgage Loan,
			Ser. 2003-FF5, Class A2,
Aaa		386	2.82%, 3/25/34(a)		384,167
			Metropolitan Asset Funding, Inc.,
			Ser. 1999-D, Class A1,
AAA(d)		47	2.88%, 4/25/29(a)(h) (cost $47,248; purchased 6/28/01)		47,194
			Residential Asset Mortgage Products, Inc.,
			Ser. 2003-RS11, Class AIIB,
Aaa		512	2.75%, 12/25/33(a)		512,413
			Residential Asset Securities Corp.,
			Ser. 2001-KS3, Class AII,
Aaa		120	2.65%, 9/25/31(a)		119,691

			Total asset backed securities (cost $2,784,147)		2,784,228


			Corporate Bonds—19.5%

			Airlines—0.8%
			American Airlines, Inc.,
Baa2		1,500	7.86%, 10/1/11		1,550,282
			United Airlines, Inc.,
NR		1,700	6.83%, 9/1/08(f)		78,328
NR		1,500	10.85%, 2/19/15(c)(f)		585,000

					2,213,610


			Automobile Manufacturers—1.4%
			DaimlerChrysler NA Holding Corp.,
A3		1,500	2.34%, 9/10/07(a)		1,504,914
A3		2,191	7.40%, 1/20/05		2,195,355
			Lear Corp.,
Baa3		500	7.96%, 5/15/05		507,985

					4,208,254


			Banking—2.0%
			Bank of America NA,
Aa1		3,000	2.05%, 2/16/05(a)		3,000,063
			Export-Import Bank of Korea (The),
A3		300	6.50%, 11/15/06		315,376
			Korea Development Bank (The),
A3		2,670	4.75%, 7/20/09		2,720,476

					6,035,915

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		71

Intermediate Term-Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


MOODY’S RATINGS (UNAUDITED)	PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

			Electric Power—3.0%
			AEP Texas Central Co.,
Baa2	$	3,000	2.96%, 2/15/05(a)	$	3,000,068
			Dayton Power & Light Co.,
Baa3		500	5.13%, 10/1/13(h)		510,841
			(cost $511,741; purchased 3/19/04)
			Dominion Resources, Inc.,
Baa1		1,200	7.63%, 7/15/05		1,228,490
			Duke Energy Corp.,
Baa1		300	2.89%, 12/8/05(a)		300,569
			GPU, Inc.,
Baa3		900	7.70%, 12/1/05		932,345
			Nisource Finance Corp.,
Baa3		1,500	2.92%, 11/23/09(a)		1,497,917
			Pacific Gas & Electric Co.,
Baa2		1,524	2.72%, 4/3/06(a)		1,525,253

					8,995,483


			Financial Services—4.4%
			Duke Capital LLC,
Baa3		600	6.25%, 7/15/05		609,941
			Ford Motor Credit Co.,		��
A3		2,795	6.75%, 5/15/05		2,831,096
A3		900	7.60%, 8/1/05		921,004
			General Motors Acceptance Corp.,
A3		2,160	3.18%, 5/18/06(a)		2,150,007
A3		1,240	6.88%, 8/28/12		1,266,015
A3		700	8.00%, 11/1/31		719,520
			Golden West Financial Corp.,
A1		1,500	5.50%, 8/8/06		1,553,451
			Heller Financial, Inc.,
Aaa		500	6.38%, 3/15/06		517,494
			Household Finance Co.,
A1		730	6.70%, 11/13/05		750,785
			Unilever Capital Corp.,
A1		1,750	6.88%, 11/1/05		1,804,119

					13,123,432


			Food & Staples Retailing—0.1%
			Delhaize America, Inc.,
Ba1		300	7.38%, 4/15/06		314,993


			Gaming—0.8%
			Caesars Entertainment, Inc.,
Ba2		1,200	7.88%, 12/15/05		1,245,000
Ba1		1,070	8.50%, 11/15/06		1,158,275

					2,403,275

See Notes to Financial Statements


72		THE TARGET PORTFOLIO TRUST


MOODY’S RATINGS (UNAUDITED)	PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

			Healthcare Services—0.2%
			HCA, Inc.,
Ba1	$	700	6.91%, 6/15/05	$	710,258


			Industrial Conglomerates—0.6%
			Tyco International Group SA,
Baa3		1,640	6.38%, 6/15/05		1,663,928


			Media—1.8%
			Comcast MO of Delaware LLC,
Baa3		2,300	8.88%, 9/15/05		2,389,838
			Time Warner, Inc.
Baa1		1,000	5.63%, 5/1/05		1,009,209
Baa1		2,000	7.75%, 6/15/05		2,037,658

					5,436,705


			Oil & Gas Exploration Services—0.3%
			Parker & Parsley Petroleum Co.,
Baa3		800	8.88%, 4/15/05		812,301


			Paper & Packaging—0.4%
			Georgia-Pacific Co.,
Ba3		980	7.50%, 5/15/06		1,026,550


			Telecommunications—3.3%
			Deutsche Telekom International Finance BV,
Baa2		2,300	8.25%, 6/15/05		2,353,599
			France Telecom SA,
Baa2		2,000	9.25%, 3/1/31		2,711,183
			MCI, Inc.,
B2		61	6.91%, 5/1/07		62,449
B2		61	7.69%, 5/1/09		63,135
B2		52	8.74%, 5/1/14		55,900
			U.S. West Communications,
Ba3		300	6.63%, 9/15/05		306,000
			SBC Communications, Inc.,
A1		2,550	4.21%, 6/5/21(h)
			(cost $2,581,119; purchased 6/15/04 - 10/14/04)		2,564,663
			Sprint Capital Corp.,
Baa3		350	7.90%, 3/15/05		353,787
			Verizon Wireless Capital LLC,
A3		1,500	2.42%, 5/23/05(a)(h)
			(cost $1,498,855; purchased 11/20/03)		1,499,600

					9,970,316


			Tobacco—0.4%
			Altria Group, Inc.,
Baa2		1,050	7.00%, 7/15/05		1,066,262

			Total corporate bonds (cost $60,792,379)		57,981,282

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		73

Intermediate Term-Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


MOODY’S RATINGS (UNAUDITED)	PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)


			Collateralized Mortgage Obligations—6.8%
			Bank of America Mortgage Securities, Inc.,
			Ser. 2002-K, Class A1,
AAA(d)	$	663	5.60%, 10/20/32(a)	$	672,222
			Bear Stearns Adjustable Rate Mortgage Trust,
			Ser. 2003-7, Class A2,
AAA		2,598	3.75%, 11/25/34(a)		2,587,429
			Bear Stearns Alternative Loans Trust,
			Ser. 2004-8, Class A2,
Aaa		432	2.46%, 2/25/34(a)		431,923
			Countrywide Alternative Loans Trust,
			Ser. 2003-J3, Class A1,
AAA(d)		559	6.25%, 12/25/33		572,792
			Countrywide Home Loans,
			Ser. 2004-25, Class A1,
Aaa		4,393	2.75%, 2/25/35(a)		4,396,435
			Ser. 2002-HYB2, Class A1,
Aaa		272	4.95%, 9/19/32(a)		273,004
			Ser. 2002-1, Class A1,
Aaa		290	5.70%, 3/19/32(a)		294,336
			Ser. 2003-R4, Class 2A,
Aaa		463	6.50%, 1/25/34(h)
			(cost $485,698; purchased 12/1/03)		480,547
			CS First Boston Mortgage Securities Corp.,
			Ser. 2003-8, Class A1,
Aaa		258	6.50%, 4/25/33		262,937
			Federal Home Loan Mortgage Corp.,
		893	7.00%, 10/25/43		944,981
			Federal National Mortgage Association.,
		690	3.50%, 4/25/17		688,853
		241	5.00%, 8/25/22		241,139
			Government National Mortgage Association,
		391	2.91%, 2/16/30(a)		393,956
		275	3.00%, 2/16/30(a)		277,735
		1,020	7.50%, 2/20/30		1,072,112
		211	8.50%, 3/20/25		221,750
			GS Mortgage Securities Corp. II,
			Ser. 2001-1285, Class A1,
Aaa		745	6.04%, 8/15/18(h)
			(cost $803,816; purchased 10/9/02)		794,917
			Sequoia Mortgage Trust,
			Ser. 10, Class 2A,
Aaa		4,318	2.52%, 10/20/27(a)		4,328,793

See Notes to Financial Statements


74		THE TARGET PORTFOLIO TRUST


MOODY’S RATINGS (UNAUDITED)	PRINCIPAL AMOUNT (000)	DESCRIPTION	VALUE (NOTE 1)


		Collateralized Mortgage Obligations (cont’d)
		Structured Asset Securities Corp.,
		Ser. 2001-21A, Class A1,
Aaa	$ 618	6.25%, 1/25/32	$	641,010
		Superannuation Members Home Loans Global Fund,
		Ser. 1A, Class A2,
AAA(d)	196	2.14%, 6/15/26(a)(h)
		(cost $195,922; purchased 5/30/01 - 1/22/04)		195,800
		Washington Mutual,
		Ser. 2002-AR6, Class A,
Aaa	548	2.86%, 6/25/42 - 8/25/42(a)		552,520

		Total collateralized mortgage obligations (cost $20,357,488)		20,325,191


		Municipal Bond—0.3%
		Honolulu, Hawaii, City & County,
Aaa	1,000	4.75%, 7/1/28
		(cost $839,820)		1,007,500


		Foreign Government Bonds—5.0%
		Federal Republic of Brazil,
B2	1,203	8.00%, 4/15/14 (Brady Bond)		1,231,058
B2	2,000	11.50%, 3/12/08		2,347,000
		Republic of Panama,
Ba1	1,500	9.375%, 4/1/29		1,746,300
		Republic of Peru,
Ba3	3,750	9.125%, 1/15/08 - 2/21/12		4,348,125
		Republic of South Africa,
Baa2	750	9.125%, 5/19/09		888,750
		Swedish Government,
Aaa	SEK 16,000	8.00%, 8/15/07		2,721,883
		United Mexican States,
Baa2	$ 1,500	6.375%, 1/16/13		1,597,500

		Total foreign government bonds (cost $12,999,089)		14,880,616

		U.S. Government Agency Mortgage Pass-Through Obligations—9.4%
		Federal Farm Credit Bank,
	2,301	5.45%, 1/19/05		2,303,663
		Federal Home Loan Mortgage Corp.,
	7	9.25%, 1/1/10		6,994
		Federal National Mortgage Association
	232	3.52%, 7/1/25(a)		230,076
	218	4.75%, 8/1/24(a)		222,878
	7,525	5.00%, 10/1/17 - 9/1/18		7,652,927
	9,000	5.00%, 1/1/20 TBA		9,140,626
	19	5.23%, 12/1/30(a)		18,967
	13	6.50%, 9/1/05		12,993
	2,826	6.00%, 11/1/12 - 9/1/17		2,964,427

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		75

Intermediate Term-Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


MOODY’S RATINGS (UNAUDITED)	PRINCIPAL AMOUNT (000)	DESCRIPTION	VALUE (NOTE 1)

		U.S. Government Agency Mortgage Pass-Through Obligations (cont’d)
		Government National Mortgage Association,
	$ 1,247	3.32%, 3/20/30(a)	$	1,239,519
	1,039	3.38%, 5/20/23 - 6/20/27(a)		1,033,729
	653	3.50%, 7/20/30(a)		649,845
	92	4.63%, 10/20/24(a)		94,123
	72	4.64%, 12/20/26(a)		73,689
	287	4.75%, 8/20/26(a)		290,360
	1,354	6.00%, 1/15/29 - 7/15/29		1,407,791
	441	6.50%, 10/15/25 - 6/15/29		465,054
	214	8.00%, 9/20/30 - 7/20/31		231,216

		Total U.S. Government agency mortgage pass-through obligations (cost $28,030,642)		28,038,877

		U.S. Government Securities—17.0%
		United States Treasury Notes,
	33,300	3.50%, 12/15/09		33,138,695
	5,565	3.375%, 1/15/07 - 1/15/12(g), TIPS, RRB		6,105,570
	3,771	3.625%, 1/15/08, TIPS, RRB		4,107,635
	6,501	3.875%, 1/15/09, TIPS, RRB		7,286,370

		Total U.S. Government securities (cost $49,002,006)		50,638,270

	Shares

		Preferred Stock—0.9%
	46,100	Fannie Mae, 7.00%(a) (cost $2,305,000)		2,613,294

		Warrants—0.1%
	2,500,000	Mexico Value, Ser. C, expiring 6/30/05(b)		33,750
	2,500,000	Mexico Value, Ser. D, expiring 6/30/06(b)		63,750
	2,500,000	Mexico Value, Ser. E, expiring 6/30/07(b)		56,250

		Total warrants (cost $719)		153,750

		Total long-term investments (cost $177,111,290)		178,423,008

See Notes to Financial Statements


76		THE TARGET PORTFOLIO TRUST


MOODY’S RATINGS (UNAUDITED)	PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)
			SHORT-TERM INVESTMENTS—52.9%

			Certificates of Deposit—3.8%
			Citibank,
P-1	$	6,000	2.38%, 3/7/05	6,000,000
			HSBC Bank,
P-1		5,300	2.41%, 4/1/05	5,298,186

			Total certificates of deposit (cost $11,300,000)	11,298,186


			Commercial Paper—20.5%(e)
			Anz (Delaware) Inc.,
P-1		4,000	2.04%, 1/27/05	3,994,107
			Bank of Ireland,
P-1		6,000	2.18%, 2/11/05	5,983,806
			Barclays US Funding Corp.,
P-1		8,300	2.48%, 4/18/05	8,240,406
			CDC Corp.,
P-1		600	2.07%, 2/23/05	597,998
			Dexia (Delaware) LLC,
P-1		9,100	2.42%, 3/14/05	9,057,776
			General Electric Capital Corp.,
P-1		5,500	2.28%, 2/23/05	5,481,644
P-1		300	2.32%, 2/24/05	298,961
			General Motors Acceptance Corp.,
P-1		3,120	2.50%, 4/5/05	3,099,674
			HBOS Treasury Services PLC,
P-1		500	2.42%, 3/14/05	497,680
P-1		300	2.44%, 3/22/05	298,437
P-1		8,298	2.47%, 4/12/05	8,244,058
			Rabobank USA Finance Corp.,
P-1		1,800	2.17%, 1/3/05	1,799,783
			Royal Bank of Scotland (The),
P-1		4,400	2.41%, 3/15/05	4,379,276
			UBS Finance (DE) LLC,
P-1		8,300	2.30%, 2/28/05	8,268,049
P-1		800	2.41%, 3/15/05	796,232

			Total commercial paper (cost $61,033,863)	61,037,887


			U.S. Government and Agency Securities—28.6%(e)
			Federal Home Loan Bank,
		3,100	1.94%, 1/4/05	3,099,238
		11,500	1.96%, 1/14/05 - 1/19/05	11,489,553
		2,200	2.00%, 1/21/05	2,197,566
		900	2.06%, 2/1/05	898,253
		3,000	2.10%, 1/12/05	2,998,008
		3,000	2.26%, 3/2/05	2,988,750

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		77

Intermediate Term-Bond Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)


		U.S. Government and Agency Securities (cont’d)
$	3,000	2.30%, 3/4/05	$	2,988,300
	6,100	2.35%, 3/11/05		6,077,125
		Federal Home Loan Mortgage Corp.,
	11,400	1.96%, 1/11/05		11,393,784
	8,400	1.98%, 1/18/05 - 1/25/05		8,388,956
	1,400	2.19%, 2/15/05		1,396,041
		Federal National Mortgage Association,
	3,100	1.99%, 1/19/05		3,096,916
	10,000	2.06%, 1/26/05		9,984,963
	2,300	2.08%, 2/2/05		2,295,529
	2,900	2.18%, 2/9/05		2,892,869
	800	2.23%, 2/4/05		798,294
	2,000	2.26%, 2/23/05		1,993,354
	5,900	2.30%, 3/2/05		5,877,875
	500	2.34%, 3/9/05		498,125
	3,000	2.39%, 4/15/05		2,977,500
		United States Treasury Bill,
	1,035	2.20%, 3/17/05(g)		1,030,607

		Total U.S. Government and agency securities (cost $85,360,232)		85,361,606

CONTRACTS/ NOTIONAL AMOUNT (000)

	Outstanding Options Purchased(b)
		Put Options
	135	Eurodollar Futures, expiring 3/14/05 @ $94.00 (cost $1,350)		1,688

		Total short-term investments (cost $157,695,445)		157,699,367


		Total Investments, Before Outstanding Options Written—112.8% (cost $334,806,735; Note 5)		336,122,375


	Outstanding Options Written(b)
		Call Options
	200	United States Treasury Notes Futures, expiring 2/18/05 @ $114		(46,875	)
$	16,900	Interest Rate Swaps, 3 month LIBOR over 4.00%, expiring 1/7/05		(253	)

				(47,128	)

See Notes to Financial Statements


78		THE TARGET PORTFOLIO TRUST


CONTRACTS/ NOTIONAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

		Put Options
$	16,900	Interest Rate Swaps, 3 month LIBOR over 7.00%, expiring 1/7/05	$	(1	)

		Total outstanding options written (premiums received $346,443)		(47,129	)


		Total Investments, Net of Outstanding Options Written—112.8%		336,075,246
		Other liabilities in excess of other assets—(12.8%)		(38,092,940	)

		Net Assets—100%	$	297,982,306

The following abbreviations are used in the portfolio descriptions:

NR—Not rated by Moody’s or Standard & Poor’s.

RRB—Real Return Bond.

SEK—Swedish Krona

TBA—Securities purchased on a forward commitment basis.

TIPS—Treasury Inflation Protection Security.

The Fund’s current prospectus contains a description of Moody’s and Standard & Poor’s Ratings.

(a)	Rate shown reflects current rate on variable rate instruments.

(b)	Non-Income producing security.

(c)	Represents issues in default on interest payments; non-income producing security.

(d)	Standard & Poor’s rating.

(e)	Rate shown reflects yield to maturity on date of purchase.

(f)	Issuer in bankruptcy.

(g)	All or portion of security pledged as initial margin for financial futures contracts.

(h)	Private placement, restricted as to resale and does not have a readily available market. The aggregate cost of such securities is $6,124,399. The aggregate value of $6,093,562 is approximately 2.05% of net assets.

The major asset category classification of portfolio holdings and other liabilities in excess of other assets shown as a percentage of net assets as of December 31, 2004 were as follows:


U.S. Government and Agency Securities	45.6	%
Commercial Paper	20.5
Corporate Bonds	19.5
U.S. Government Agency Mortgage Pass-Through Obligations	9.4
Collateralized Mortgage Obligations	6.8
Foreign Government Bonds	5.0
Certificates of Deposit	3.8
Preferred Stock	0.9
Asset Backed Securities	0.9
Municipal Bond	0.3
Warrants	0.1

	112.8
Other liabilities in excess of other assets	(12.8	)

	100.0	%

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		79


*Mortgage Backed Securities Portfolio*		Portfolio of Investments As of December 31, 2004


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)
		LONG-TERM INVESTMENTS—113.1%

		Collateralized Mortgage Obligations—10.7%
		Bear Stearns Commercial Mortgage Securities Corp.,
$	750	7.32%, 10/15/32	$	855,875
		Chase Commercial Mortgage Securities Corp.,
	264	6.56%, 5/18/30		283,720
		CS First Boston Mortgage Securities Corp.,
	92	Zero Coupon, 4/25/17, P/O		80,427
	95	8.985%, 4/25/17, I/O		22,689
		Federal Home Loan Mortgage Corp.,
	22	5.50%, 8/15/21, PAC		21,638
	1,088	6.00%, 10/15/20 - 5/15/23, PAC		1,114,983
	133	7.00%, 3/15/23, PAC		134,985
	24	8.00%, 4/15/21		23,975
	348	8.00%, 12/15/06 - 7/15/21, PAC		349,193
	12	9.00%, 10/15/20		12,293
		Federal National Mortgage Assn.,
	610	4.50%, 5/25/33, PAC		608,162
	31	6.00%, 4/1/19, I/O		32,725
	230	6.00%, 10/25/22, PAC		239,682
	45	6.50%, 4/25/22		47,158
	397	6.50%, 12/25/23, PAC		416,440
	234	6.527%, 5/25/30(a)		245,270
	521	7.00%, 9/25/20 - 3/25/23, PAC		105,183
	160	7.50%, 5/25/07 - 7/25/22		168,000
	349	8.00%, 12/25/21 - 5/25/24, PAC		378,603
	44	8.50%, 7/25/18 - 2/25/20, PAC		47,150
	45	8.50%, 6/25/21		46,901
		Morgan Stanley Dean Witter Commercial Mortgage,
	1,000	6.39%, 7/15/33		1,106,495
	807	6.66%, 2/15/33		896,395
	750	7.20%, 10/15/33		851,228
		Nomura Asset Commercial Mortgage,
	1,000	6.69%, 3/15/30		1,133,211
		Salomon Brothers Mortgage Securities,
	51	6.00%, 12/25/11		50,711
		Wells Fargo Mortgage Backed Securities
	1,000	4.586%, 1/25/35		1,004,062

		Total collateralized mortgage obligations (cost $9,648,898)		10,277,154


		U.S. Government Agency Mortgage Pass-Through Obligations—99.8%
		Federal Home Loan Mortgage Corp.,
	527	5.00%, 10/1/33		524,260
	1,000	5.50%, 8/1/19 - 9/1/19		1,033,417

See Notes to Financial Statements


80		THE TARGET PORTFOLIO TRUST


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)
		U.S. Government Agency Mortgage Pass-Through Obligations (cont’d.)
$	1,454	6.00%, 5/1/11 - 10/1/31	$	1,503,211
	411	6.50%, 12/1/14 - 6/1/22		433,919
	106	7.50%, 3/1/08 - 6/1/28		113,416
	7	8.25%, 12/1/05 - 5/1/08		6,435
	35	8.50%, 12/1/07 - 7/1/21		37,919
	15	8.75%, 12/1/08		15,923
	80	9.00%, 10/1/05 - 3/1/11		83,904
	30	11.50%, 3/1/16		32,767
	13	13.25%, 5/1/13		14,112
	3	14.00%, 6/1/11		3,589
		Federal National Mortgage Assn.,
	22,928	5.00%, 9/1/17 - 3/1/34		23,182,269
	5,000	5.00%, 1/1/35, TBA		4,959,375
	9,545	5.50%, 7/1/33 - 11/1/34		9,695,653
	677	5.78%, 11/1/11(a)		725,310
	2,700	6.00%, 2/13/33		2,785,217
	8,079	6.00%, 8/1/34 - 1/1/34		8,367,319
	1,094	6.009%, 11/1/11		1,194,455
	75	6.048%, 3/1/12		81,328
	83	6.18%, 7/1/08		87,671
	65	6.34%, 1/1/08		69,006
	73	6.43%, 1/1/08		77,449
	462	6.447%, 1/1/08		489,213
	3,533	6.50%, 11/1/08 - 9/1/34		3,734,363
	620	6.55%, 9/1/07		654,882
	38	6.858%, 10/1/07		40,480
	207	7.00%, 9/1/11 - 7/1/12		219,362
	571	7.04%, 3/1/07		601,317
	1	7.75%, 10/1/19		831
	104	8.00%, 3/1/07 - 12/1/22		114,450
	45	8.50%, 1/1/07		45,155
	30	9.75%, 8/1/10 - 11/1/16		33,487
		Government National Mortgage Assn.,
	10,925	5.00%, 3/15/33 - 12/15/34		10,942,634
	3,447	6.00%, 10/15/08 - 7/15/34		3,598,300
	5,000	6.00%, 1/1/35, TBA		5,179,690
	4,403	6.50%, 5/15/23 - 10/15/34		4,643,681
	3,976	7.00%, 7/15/16 - 1/15/30		4,239,152
	3,927	7.50%, 3/15/07 - 10/15/29		4,231,678
	1,139	8.00%, 1/15/08 - 11/15/30		1,239,068
	77	8.25%, 6/20/17 - 7/20/17		83,465
	62	8.50%, 3/15/05 - 4/20/17		68,810
	175	9.00%, 5/20/05 - 1/15/20		194,932
	143	9.50%, 4/15/06 - 1/15/21		157,014
	12	13.50%, 5/15/11		13,332
	25	14.00%, 6/15/11		29,151
	17	16.00%, 5/15/12		20,192

		Total U.S. Government agency mortgage pass-through obligations (cost $94,816,579)		95,602,563

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		81

Mortgage Backed Securities Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)

		United States Treasury Securities—2.6%
		United States Treasury Bond,
$	1,750	8.875%, 2/15/19 (cost $2,517,939)	$	2,517,608

		Total Investments, Before Securities Sold Short—113.1% (cost $106,983,416; Note 5)		108,397,325


		SECURITIES SOLD SHORT—(13.9)%
		Federal National Mortgage Assn., TBA
	5,000	5.00%, 1/1/20		(5,078,125	)
	3,000	5.50%, 2/20/19		(3,092,814	)
	5,000	6.00%, 1/1/35		(5,168,750	)

		Total securities sold short (proceeds received $13,310,156)		(13,339,689	)

		Total Investments, Net of Securities Sold Short—99.2% (cost $93,673,260)		95,057,636
		Other assets in excess of other liabilities—0.8%		737,996

		Net Assets—100%	$	95,795,632

The following abbreviations are used in the portfolio descriptions.

I/O—Interest Only Security.

PAC—Planned Amortization Class.

P/O—Principal Only Security.

TBA—To be announced. Such securities are purchased on a forward commitment basis.

(a)	Variable Rate instrument. The maturity date presented for these instruments is the later of the next date on which the security can be redeemed at par or the next date on which the rate of interest is adjusted.

The major asset category classification of portfolio holdings and other assets in excess of other liabilities shown as a percentage of net assets as of December 31, 2004 were as follows:


U.S. Government Agency Mortgage Pass-Through Obligations	99.8	%
Collateralized Mortgage Obligations	10.7
United States Treasury Securities	2.6

	113.1
Securities Sold Short	(13.9	)
Other assets in excess of other liabilities	0.8

	100.0	%

See Notes to Financial Statements


82		THE TARGET PORTFOLIO TRUST


Portfolio of Investments As of December 31, 2004		*U.S. Government Money Market Portfolio*


PRINCIPAL AMOUNT (000)		DESCRIPTION	VALUE (NOTE 1)


		Federal Home Loan Bank—8.4%
$	1,200	2.22%, 2/4/05(a)	$	1,197,484
	1,420	2.23%, 2/18/05(a)		1,415,778
	1,000	1.50%, 3/1/05		1,000,000
	1,198	2.36%, 3/21/05(a)		1,191,796
	1,000	1.625%, 4/15/05		1,003,108
	400	1.66%, 5/16/05		400,000

				6,208,166


		Federal Home Loan Mortgage Corp.—31.0%
	4,000	1.97%, 1/11/05(a)		3,997,811
	5,000	2.03%, 1/18/05(a)		4,995,207
	4,022	2.05%, 1/24/05(a)		4,016,732
	1,100	2.15%, 1/25/05(a)		1,098,424
	5,939	2.14% - 2.28%, 2/1/05(a)		5,927,513
	3,000	1.16%, 3/8/05(a)		2,993,620

				23,029,307


		Federal National Mortgage Association—25.2%
	11,250	2.24%, 2/2/05(a)		11,227,600
	3,000	1.14%, 2/4/05(a)		2,996,770
	1,000	2.23%, 2/10/05(a)		997,522
	2,000	1.375%, 2/11/05		1,997,992
	750	1.375%, 2/14/05		749,978
	200	1.61%, 5/13/05		200,000
	500	1.75%, 5/23/05		500,000

				18,669,862


		Repurchase Agreements—36.0%
	8,800	Deutsche Bank Securities, 2.17%, dated 12/31/04, due 1/03/05 in the amount of $8,801,591 (cost $8,800,000; collateralized by $8,938,722 Government National Mortgage Association, 5.00%, 12/15/34, value of the collateral including accrued interest was $8,976,001)		8,800,000
	17,900	Goldman, Sachs & Co., 2.29%, dated 12/31/04, due 1/03/05 in the amount of $17,903,416 (cost $17,900,000; collateralized by $18,188,304 Federal Home Loan Mortgage Corp., 4.50%, 5/01/24, value of the collateral including accrued interest was $18,258,001)		17,900,000

				26,700,000

		Total Investments—100.6% (amortized cost $74,607,335)(b)		74,607,335
		Liabilities in excess of other assets—(0.6%)		(417,521	)

		Net Assets—100%	$	74,189,814

(a)	Rate quoted represents yield-to-maturity as of purchase date.

(b)	Federal income tax basis of portfolio securities is the same as for financial reporting purposes.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		83

U.S. Government Money Market Portfolio

(cont’d)

Portfolio of Investments
As of December 31, 2004

The major asset category classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of December 31, 2004 were as follows:


Repurchase Agreements	36.0	%
Federal Home Loan Mortgage Corp.	31.0
Federal National Mortgage Association	25.2
Federal Home Loan Bank	8.4

	100.6
Liabilities in excess of other assets	(0.6	)

	100.0	%

See Notes to Financial Statements


84		THE TARGET PORTFOLIO TRUST

Statements of Assets and Liabilities December 31, 2004


	LARGE CAPITALIZATION GROWTH PORTFOLIO			LARGE CAPITALIZATION VALUE PORTFOLIO		SMALL CAPITALIZATION GROWTH PORTFOLIO			SMALL CAPITALIZATION VALUE PORTFOLIO

ASSETS
Investments, at value*	$	339,514,153		$	385,501,762	$	159,104,914		$	245,784,056
Repurchase Agreement*		—			—		—			—
Cash		—			—		—			22,268
Foreign currency, at value**		—			—		—			—
Receivable for Fund shares sold		212,614			209,993		70,584			521,756
Dividends and interest receivable		171,062			593,757		44,855			285,945
Prepaid expenses and other assets		13,339			12,180		6,094			13,767
Receivable for investments sold		6,008,684			1,025,081		468,301			505,505
Receivable for foreign tax reclaim		—			—		—			—
Due from broker for variation margin		—			—		—			—
Premium for swaps purchased		—			—		—			—
Unrealized appreciation on swaps		—			—		—			—
Unrealized appreciation on forward currency contracts		—			—		—			—
Total assets		345,919,852			387,342,773		159,694,748			247,133,297

LIABILITIES
Payable for Fund shares reacquired		828,079			688,412		323,454			1,030,487
Payable for investments purchased		—			899,158		31,299			165,444
Accrued expenses and other liabilities		198,543			132,568		169,664			224,502
Management fee payable		175,660			195,396		79,578			123,805
Deferred Trustees’ fees		11,976			13,738		12,075			12,809
Payable to custodian		945,977			—		321,423			—
Dividends payable		—			—		—			—
Due to broker for variation margin		—			—		—			—
Outstanding options written***		—			—		—			—
Premium for swaps written		—			—		—			—
Unrealized depreciation on swaps		—			—		—			—
Unrealized depreciation on forward currency contracts		—			—		—			—
Investments sold short, at value****		—			—		—			—
Total liabilities		2,160,235			1,929,272		937,493			1,557,047

NET ASSETS	$	343,759,617		$	385,413,501	$	158,757,255		$	245,576,250
Net assets were comprised of: Shares of beneficial interest, at par	$	21,614		$	23,230	$	14,714		$	11,242
Paid-in capital, in excess of par		283,580,507			282,294,924		180,012,142			167,159,077
		283,602,121			282,318,154		180,026,856			167,170,319
Undistributed net investment income (loss)		19,269			390,569		(12,075	)		35,568
Accumulated net realized gains (losses)		(15,141,325	)		11,128,589		(46,289,658	)		2,450,917
Net unrealized appreciation (depreciation)		75,279,552			91,576,189		25,032,132			75,919,446
Net assets, December 31, 2004	$	343,759,617		$	385,413,501	$	158,757,255		$	245,576,250
Shares of beneficial interest issued and outstanding		21,613,694			23,230,228		14,714,348			11,241,974
Net asset value, offering price and redemption price per share	$	15.90		$	16.59	$	10.79		$	21.84
* Identified cost of total investments	$	264,234,601		$	293,925,573	$	134,072,782		$	169,864,610
** Identified cost of currency	$	—		$	—	$	—		$	—
*** Premiums received from options written	$	—		$	—	$	—		$	—
**** Proceeds received from short sales	$	—		$	—	$	—		$	—

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		85

Statements of Assets and Liabilities December 31, 2004 (cont’d)


	INTERNATIONAL EQUITY PORTFOLIO			INTERNATIONAL BOND PORTFOLIO			TOTAL RETURN BOND PORTFOLIO			INTERMEDIATE- TERM BOND PORTFOLIO

ASSETS
Investments, at value*	$	227,599,115		$	49,712,395		$	192,711,443		$	336,122,375
Repurchase Agreement*		—			—			—			—
Cash		957			126,842			2,082,433			4,789,468
Foreign currency, at value**		—			534,397			983,067			728,853
Receivable for Fund shares sold		158,943			49,153			324,051			361,305
Dividends and interest receivable		344,626			752,380			1,395,547			1,675,847
Prepaid expenses and other assets		4,921			1,283			4,900			10,096
Receivable for investments sold		2,494,536			—			54,965,320			198
Receivable for foreign tax reclaim		514,998			—			—			—
Due from broker for variation margin		—			3,984			136,559			201,191
Premium for swaps purchased		—			15,804			246,430			118,899
Unrealized appreciation on swaps		—			32,204			371,718			355,085
Unrealized appreciation on forward currency contracts		—			44,527			20,275			—
Total assets		231,118,096			51,272,969			253,241,743			344,363,317

LIABILITIES
Payable for Fund shares reacquired		512,743			105,996			630,813			536,547
Payable for investments purchased		—			5,506,618			36,259,138			45,035,747
Accrued expenses and other liabilities		144,616			105,660			99,264			158,894
Management fee payable		135,537			19,139			67,292			114,657
Deferred Trustees’ fees		12,668			8,953			11,523			12,729
Payable to custodian		—			—			—			—
Dividends payable		—			—			17,015			21,574
Due to broker for variation margin		—			—			—			—
Outstanding options written***		—			5,906			162,621			47,129
Premium for swaps written		—			149,268			1,266,774			129,570
Unrealized depreciation on swaps		—			15,176			1,289,790			324,164
Unrealized depreciation on forward currency contracts		12,698			451,252			67,144			—
Investments sold short, at value****		—			—			34,882,196			—
Total liabilities		818,262			6,367,968			74,753,570			46,381,011

NET ASSETS	$	230,299,834		$	44,905,001		$	178,488,173		$	297,982,306
Net assets were comprised of: Shares of beneficial interest, at par	$	17,543		$	5,482		$	16,783		$	28,762
Paid-in capital, in excess of par		214,914,759			46,245,651			176,920,161			297,450,866
		214,932,302			46,251,133			176,936,944			297,479,628
Undistributed net investment income (loss)		436,240			(6,485,912	)		(290,951	)		176,503
Accumulated net realized gains (losses)		(30,939,110	)		2,972			910,526			(1,313,670	)
Net unrealized appreciation (depreciation)		45,870,402			5,136,808			931,654			1,639,845
Net assets, December 31, 2004	$	230,299,834		$	44,905,001		$	178,488,173		$	297,982,306
Shares of beneficial interest issued and outstanding		17,542,780			5,481,607			16,782,672			28,762,079
Net asset value, offering price and redemption price per share	$	13.13		$	8.19		$	10.64		$	10.36
* Identified cost of total investments	$	181,817,766		$	44,270,836		$	190,843,458		$	334,806,735
** Identified cost of currency	$	—		$	531,532		$	972,493		$	711,187
*** Premiums received from options written	$	—		$	29,965		$	545,289		$	346,443
**** Proceeds received from short sales	$	—		$	—		$	34,755,801		$	—

See Notes to Financial Statements


86		THE TARGET PORTFOLIO TRUST

Statements of Assets and Liabilities December 31, 2004 (cont’d)


	MORTGAGE BACKED SECURITIES PORTFOLIO			U.S. GOVERNMENT MONEY MARKET PORTFOLIO

ASSETS
Investments, at value*	$	108,397,325		$	47,907,335
Repurchase Agreement*		—			26,700,000
Cash		84,423			9,280
Foreign currency, at value**		—			—
Receivable for Fund shares sold		69,274			263,596
Dividends and interest receivable		495,225			31,627
Prepaid expenses and other assets		5,143			3,405
Receivable for investments sold		13,312,386			—
Receivable for foreign tax reclaim		—			—
Due from broker for variation margin		—			—
Premium for swaps purchased		—			—
Unrealized appreciation on swaps		1,339			—
Unrealized appreciation on forward currency contracts		—			—
Total assets		122,365,115			74,915,243

LIABILITIES
Payable for Fund shares reacquired		143,523			600,565
Payable for investments purchased		12,884,844			—
Accrued expenses and other liabilities		136,589			100,854
Management fee payable		37,092			7,754
Deferred Trustees’ fees		11,547			13,490
Payable to custodian		—			—
Dividends payable		11,840			2,766
Due to broker for variation margin		4,359			—
Outstanding options written***		—			—
Premium for swaps written		—			—
Unrealized depreciation on swaps		—			—
Unrealized depreciation on forward currency contracts		—			—
Investments sold short, at value****		13,339,689			—
Total liabilities		26,569,483			725,429

NET ASSETS	$	95,795,632		$	74,189,814
Net assets were comprised of: Shares of beneficial interest, at par	$	9,216		$	74,190
Paid-in capital, in excess of par		96,128,896			74,116,030
		96,138,112			74,190,220
Undistributed net investment income (loss)		(15,711	)		—
Accumulated net realized gains (losses)		(1,718,822	)		(406	)
Net unrealized appreciation (depreciation)		1,392,053			—
Net assets, December 31, 2004	$	95,795,632		$	74,189,814
Shares of beneficial interest issued and outstanding		9,215,956			74,190,220
Net asset value, offering price and redemption price per share	$	10.39		$	1.00
* Identified cost of total investments	$	106,983,416		$	74,607,335
** Identified cost of currency	$	—		$	—
*** Premiums received from options written	$	—		$	—
**** Proceeds received from short sales	$	13,310,156		$	—

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		87

Statements of Operations

For The Year Ended December 31, 2004


	LARGE CAPITALIZATION GROWTH PORTFOLIO			LARGE CAPITALIZATION VALUE PORTFOLIO			SMALL CAPITALIZATION GROWTH PORTFOLIO			SMALL CAPITALIZATION VALUE PORTFOLIO

NET INVESTMENT INCOME (LOSS)
Income
Interest	$	—		$	—		$	—		$	—
Dividends		4,209,913			7,542,849			456,227			3,671,808
Less: Foreign withholding taxes		(1,148	)		(97	)		—			(6,667	)
Total income		4,208,765			7,542,752			456,227			3,665,141
Expenses
Management fee		2,072,476			2,077,916			880,299			1,310,922
Transfer agent’s fees and expenses		339,000			260,000			243,000			286,000
Custodian’s fees and expenses		105,000			110,000			96,000			98,000
Reports to shareholders		45,000			33,000			13,000			10,000
Registration fees		31,000			39,000			21,000			15,000
Legal fees and expenses		30,000			21,000			26,000			29,000
Trustees’ fees		10,000			8,000			10,000			11,000
Audit fees		18,000			18,000			17,000			18,000
Miscellaneous		14,013			9,516			8,300			12,986
Total expenses		2,664,489			2,576,432			1,314,599			1,790,908
Net investment income (loss)		1,544,276			4,966,320			(858,372	)		1,874,233

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
Investment transactions		44,858,283			33,363,731			8,627,807			14,363,197
Financial futures contracts		—			—			—			—
Foreign currency transactions		—			—			—			—
Options written		—			—			—			—
Swaps		—			—			—			—
Short sales		—			—			—			—
Total net realized gain		44,858,283			33,363,731			8,627,807			14,363,197
Net change in unrealized appreciation (depreciation) on: Investments		(34,500,918	)		23,851,981			13,062,442			32,107,615
Financial futures contracts		—			—			—			—
Foreign currencies		—			—			—			—
Options written		—			—			—			—
Swaps		—			—			—			—
Short sales		—			—			—			—
Net change in unrealized appreciation (depreciation)		(34,500,918	)		23,851,981			13,062,442			32,107,615
Net gain		10,357,365			57,215,712			21,690,249			46,470,812

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	11,901,641		$	62,182,032		$	20,831,877		$	48,345,045

See Notes to Financial Statements


88		THE TARGET PORTFOLIO TRUST

Statements of Operations

For The Year Ended December 31, 2004 (cont’d)


	INTERNATIONAL EQUITY PORTFOLIO			INTERNATIONAL BOND PORTFOLIO			TOTAL RETURN BOND PORTFOLIO			INTERMEDIATE- TERM BOND PORTFOLIO

NET INVESTMENT INCOME
Income
Interest	$	50,617		$	1,556,574		$	4,370,114		$	7,975,066
Dividends		5,405,984			34,310			—			—
Less: Foreign withholding taxes		(706,817	)		(19,418	)		(4,349	)		(16	)
Total income		4,749,784			1,571,466			4,365,765			7,975,050
Expenses
Management fee		1,465,645			215,993			765,329			1,434,021
Transfer agent’s fees and expenses		221,000			95,000			212,000			286,000
Custodian’s fees and expenses		289,000			240,000			194,000			176,000
Reports to shareholders		25,000			9,000			17,000			40,000
Registration fees		25,000			18,000			32,000			42,000
Legal fees and expenses		19,000			23,000			15,000			23,000
Trustees’ fees		10,000			9,000			9,000			13,000
Audit fees		22,000			27,000			22,000			23,000
Miscellaneous		22,698			4,544			12,192			14,376
Total expenses		2,099,343			641,537			1,278,521			2,051,397
Net investment income		2,650,441			929,929			3,087,244			5,923,653

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:										��
Investment transactions		21,298,529			2,848,501			3,046,481			2,198,476
Financial futures contracts		—			16,735			3,358,662			2,994,118
Foreign currency transactions		(900,424	)		(5,431,230	)		(205,106	)		(304,587	)
Options written		—			(93,049	)		345,653			289,078
Swaps		—			15,686			925,097			562,426
Short sales		—			—			(940,732	)		—
Total net realized gain (loss)		20,398,105			(2,643,357	)		6,530,055			5,739,511
Net change in unrealized appreciation (depreciation) on: Investments		7,819,187			1,505,704			206,050			(1,087,322	)
Financial futures contracts		—			40,709			(1,175,454	)		(996,613	)
Foreign currencies		24,351			1,737,801			(89,603	)		(124,286	)
Options written		—			24,059			250,351			267,068
Swaps		—			17,028			(942,362	)		72,413
Short sales		—			—			49,848			—
Net change in unrealized appreciation (depreciation)		7,843,538			3,325,301			(1,701,170	)		(1,868,740	)
Net gain		28,241,643			681,944			4,828,885			3,870,771

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	30,892,084		$	1,611,873		$	7,916,129		$	9,794,424

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		89

Statements of Operations

For The Year Ended December 31, 2004 (cont’d)


	MORTGAGE BACKED SECURITIES PORTFOLIO			U.S. GOVERNMENT MONEY MARKET PORTFOLIO

NET INVESTMENT INCOME
Income
Interest	$	4,510,312		$	1,294,903
Dividends		—			—
Less: Foreign withholding taxes		—			—
Total income		4,510,312			1,294,903
Expenses
Management fee		463,747			237,137
Transfer agent’s fees and expenses		154,000			109,000
Custodian’s fees and expenses		150,000			97,000
Reports to shareholders		35,000			41,000
Registration fees		40,000			31,000
Legal fees and expenses		37,000			35,000
Trustees’ fees		11,000			10,000
Audit fees		23,000			17,000
Miscellaneous		9,462			8,646
Total expenses		923,209			585,783
Net investment income		3,587,103			709,120

REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions		827,139			(406	)
Financial futures contracts		(119,321	)		—
Foreign currency transactions		—			—
Options written		—			—
Swaps		13,426			—
Short sales		(84,258	)		—
Total net realized loss		636,986			(406	)
Net change in unrealized appreciation (depreciation) on: Investments		(568,304	)		—
Financial futures contracts		6,338			—
Foreign currencies		—			—
Options written		—			—
Swaps		1,339			—
Short sales		(16,877	)		—
Net change in unrealized appreciation (depreciation)		(577,504	)		—
Net loss		59,482			(406	)

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS	$	3,646,585		$	708,714

See Notes to Financial Statements


90		THE TARGET PORTFOLIO TRUST

Statements of Changes in Net Assets


	LARGE CAPITALIZATION GROWTH PORTFOLIO						LARGE CAPITALIZATION VALUE PORTFOLIO
	Year Ended December 31, 2004			Year Ended December 31, 2003			Year Ended December 31, 2004			Year Ended December 31, 2003

INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss)	$	1,544,276		$	(266,415	)	$	4,966,320		$	3,804,770
Net realized gain on investment and foreign currency transactions		44,858,283			147,403			33,363,731			3,331,117
Net change in unrealized appreciation (depreciation) of investments		(34,500,918	)		96,800,137			23,851,981			74,996,919
Net increase in net assets resulting from operations		11,901,641			96,681,125			62,182,032			82,132,806
Distributions (Note 1)
Dividends from net investment income		(1,525,007	)		—			(4,679,699	)		(3,731,879	)
Distributions from net realized gains		—			—			—			—
Tax return of capital distributions		—			—			—			—
Total distributions		(1,525,007	)		—			(4,679,699	)		(3,731,879	)
Fund share transactions (Note 6)
Net proceeds from shares sold		75,709,022			90,568,160			79,263,751			68,404,898
Net asset value of shares issued in reinvestment of dividends and distributions		1,524,328			—			4,674,589			3,647,047
Cost of shares reacquired		(92,235,417	)		(82,611,933	)		(72,157,795	)		(63,948,228	)
Net increase (decrease) in net assets from Fund share transactions		(15,002,067	)		7,956,227			11,780,545			8,103,717
Total increase (decrease)		(4,625,433	)		104,637,352			69,282,878			86,504,644

NET ASSETS
Beginning of year		348,385,050			243,747,698			316,130,623			229,625,979
End of year(a)	$	343,759,617		$	348,385,050		$	385,413,501		$	316,130,623
(a) Includes undistributed net investment income of	$	19,269		$	—		$	390,569		$	103,948

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		91

Statements of Changes in Net Assets (cont’d)


	SMALL CAPITALIZATION GROWTH PORTFOLIO						SMALL CAPITALIZATION VALUE PORTFOLIO
	Year Ended December 31, 2004			Year Ended December 31, 2003			Year Ended December 31, 2004			Year Ended December 31, 2003

INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income (loss)	$	(858,372	)	$	(928,998	)	$	1,874,233		$	249,093
Net realized gain on investment and foreign currency transactions		8,627,807			2,695,947			14,363,197			12,342,371
Net change in unrealized appreciation (depreciation) of investments		13,062,442			32,138,123			32,107,615			51,963,048
Net increase in net assets resulting from operations		20,831,877			33,905,072			48,345,045			64,554,512
Distributions (Note 1)
Dividends from net investment income		—			—			(1,838,665	)		(297,792	)
Distributions from net realized gains		—			—			(13,095,907	)		(6,670,354	)
Tax return of capital distributions		—			—			—			—
Total distributions		—			—			(14,934,572	)		(6,968,146	)
Fund share transactions (Note 6)
Net proceeds from shares sold		32,372,700			36,726,416			55,190,474			43,122,655
Net asset value of shares issued in reinvestment of dividends and distributions		—			—			14,826,689			6,775,452
Cost of shares reacquired		(34,698,634	)		(31,248,031	)		(63,840,640	)		(49,425,658	)
Net increase (decrease) in net assets from Fund share transactions		(2,325,934	)		5,478,385			6,176,523			472,449
Total increase		18,505,943			39,383,457			39,586,996			58,058,815

NET ASSETS
Beginning of year		140,251,312			100,867,855			205,989,254			147,930,439
End of year(a)	$	158,757,255		$	140,251,312		$	245,576,250		$	205,989,254
(a) Includes undistributed net investment income of	$	—		$	—		$	35,568		$	—

See Notes to Financial Statements


92		THE TARGET PORTFOLIO TRUST

Statements of Changes in Net Assets (cont’d)


	INTERNATIONAL EQUITY PORTFOLIO						INTERNATIONAL BOND PORTFOLIO
	Year Ended December 31, 2004			Year Ended December 31, 2003			Year Ended December 31, 2004			Year Ended December 31, 2003

INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income	$	2,650,441		$	2,599,038		$	929,929		$	620,772
Net realized gain (loss) on investment and foreign currency transactions		20,398,105			(105,074	)		(2,643,357	)		1,307,743
Net change in unrealized appreciation (depreciation) of investments		7,843,538			39,052,199			3,325,301			(325,141	)
Net increase in net assets resulting from operations		30,892,084			41,546,163			1,611,873			1,603,374
Distributions (Note 1)
Dividends from net investment income		(2,494,485	)		(2,118,075	)		(2,484,946	)		(3,416,812	)
Distributions from net realized gains		—			—			(456,277	)		(24,731	)
Tax return of capital distributions		—			—			—			—
Total distributions		(2,494,485	)		(2,118,075	)		(2,941,223	)		(3,441,543	)
Fund share transactions (Note 6)
Net proceeds from shares sold		56,273,516			90,795,763			20,311,661			34,299,415
Net asset value of shares issued in reinvestment of dividends and distributions		2,472,659			2,078,838			2,925,531			3,241,777
Cost of shares reacquired		(48,752,641	)		(80,785,501	)		(15,555,918	)		(24,797,728	)
Net increase in net assets from Fund share transactions		9,993,534			12,089,100			7,681,274			12,743,464
Total increase		38,391,133			51,517,188			6,351,924			10,905,295

NET ASSETS
Beginning of year		191,908,701			140,391,513			38,553,077			27,647,782
End of year(a)	$	230,299,834		$	191,908,701		$	44,905,001		$	38,553,077
(a) Includes undistributed net investment income of	$	436,240		$	911,418		$	—		$	—

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		93

Statements of Changes in Net Assets (cont’d)


	TOTAL RETURN BOND PORTFOLIO						INTERMEDIATE-TERM BOND PORTFOLIO
	Year Ended December 31, 2004			Year Ended December 31, 2003			Year Ended December 31, 2004			Year Ended December 31, 2003

INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income	$	3,087,244		$	4,538,514		$	5,923,653		$	9,080,352
Net realized gain on investment and foreign currency transactions		6,530,055			5,088,946			5,739,511			6,433,616
Net change in unrealized appreciation (depreciation) of investments		(1,701,170	)		(445,026	)		(1,868,740	)		(294,056	)
Net increase in net assets resulting from operations		7,916,129			9,182,434			9,794,424			15,219,912
Distributions (Note 1)
Dividends from net investment income		(7,979,590	)		(4,978,895	)		(7,098,116	)		(11,106,479	)
Distributions from net realized gains		(556,213	)		(5,176,715	)		(5,620,690	)		(5,519,023	)
Tax return of capital distributions		—			—			—			—
Total distributions		(8,535,803	)		(10,155,610	)		(12,718,806	)		(16,625,502	)
Fund share transactions (Note 6)
Net proceeds from shares sold		68,049,223			75,598,373			77,193,471			144,146,258
Net asset value of shares issued in reinvestment of dividends and distributions		8,280,441			9,845,648			12,177,841			15,775,559
Cost of shares reacquired		(55,370,002	)		(65,811,034	)		(123,270,731	)		(156,779,293	)
Net increase (decrease) in net assets from Fund share transactions		20,959,662			19,632,987			(33,899,419	)		3,142,524
Total increase (decrease)		20,339,988			18,659,811			(36,823,801	)		1,736,934

NET ASSETS
Beginning of year		158,148,185			139,488,374			334,806,107			333,069,173
End of year(a)	$	178,488,173		$	158,148,185		$	297,982,306		$	334,806,107
(a) Includes undistributed net investment income of	$	—		$	—		$	176,503		$	—

See Notes to Financial Statements


94		THE TARGET PORTFOLIO TRUST

Statements of Changes in Net Assets (cont’d)


	MORTGAGE BACKED SECURITIES PORTFOLIO						U.S. GOVERNMENT MONEY MARKET PORTFOLIO
	Year Ended December 31, 2004			Year Ended December 31, 2003			Year Ended December 31, 2004			Year Ended December 31, 2003

INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income	$	3,587,103		$	5,072,570		$	709,120		$	816,956
Net realized gain (loss) on investment and foreign currency transactions		636,986			(1,180,435	)		(406	)		3,401
Net change in unrealized appreciation (depreciation) of investments		(577,504	)		(1,529,703	)		—			—
Net increase in net assets resulting from operations		3,646,585			2,362,432			708,714			820,357
Distributions (Note 1)
Dividends from net investment income		(4,319,318	)		(5,247,606	)		(709,120	)		(820,357	)
Distributions from net realized gains		—			—			—			—
Tax return of capital distributions		—			—			—			—
Total distributions		(4,319,318	)		(5,247,606	)		(709,120	)		(820,357	)
Fund share transactions (Note6)(a)
Net proceeds from shares sold		23,936,870			50,238,355			131,542,846			236,126,066
Net asset value of shares issued in reinvestment of dividends and distributions		3,838,750			4,676,518			661,498			771,336
Cost of shares reacquired		(38,379,255	)		(60,503,405	)		(156,477,713	)		(265,575,191	)
Net decrease in net assets from Fund share transactions		(10,603,635	)		(5,588,532	)		(24,273,369	)		(28,677,789	)
Total decrease		(11,276,368	)		(8,473,706	)		(24,273,775	)		(28,677,789	)

NET ASSETS
Beginning of year		107,072,000			115,545,706			98,463,589			127,141,378
End of year(b)	$	95,795,632		$	107,072,000		$	74,189,814		$	98,463,589
(a) Fund share transactions are at $1 per share for the U.S. Government Money Market Portfolio.
(b) Includes undistributed net investment income of	$	—		$	—		$	—		$	—

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		95

Financial Highlights


	LARGE CAPITALIZATION GROWTH PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$15.39			$11.03			$16.15			$23.20			$25.68
Income (loss) from investment operations
Net investment income (loss)		.07			(.01	)		(.01	)		.02			(.06	)
Net realized and unrealized gain (loss) on investment transactions		.51			4.37			(5.11	)		(7.05	)		(.68	)
Total from investment operations		.58			4.36			(5.12	)		(7.03	)		(.74	)
Less distributions
Dividends from net investment income		(.07	)		—			—			(.02	)		—
Distributions from net realized gains		—			—			—			—			(1.74	)
Total distributions		(.07	)		—			—			(.02	)		(1.74	)
Net asset value, end of year		$15.90			$15.39			$11.03			$16.15			$23.20

TOTAL RETURN(a)		3.78	%		39.53	%		(31.70	)%		(30.32	)%		(3.37	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	343,760		$	348,385		$	243,748		$	358,429		$	512,778
Average net assets (000)	$	345,413		$	290,985		$	297,189		$	397,492		$	581,198
Ratios to average net assets
Expenses		.77	%		.84	%		.81	%		.75	%		.69	%
Net investment income (loss)		.45	%		(.09	)%		(.11	)%		.08	%		(.25	)%
Portfolio turnover rate		76	%		49	%		66	%		68	%		48	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


96		THE TARGET PORTFOLIO TRUST

Financial Highlights (cont’d)


	LARGE CAPITALIZATION VALUE PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$14.13			$10.49			$12.45			$12.64			$13.01
Income (loss) from investment operations
Net investment income		.21			.17			.18			.19			.25
Net realized and unrealized gain (loss) on investment transactions		2.45			3.64			(1.85	)		(.03	)		.72
Total from investment operations		2.66			3.81			(1.67	)		.16			.97
Less distributions
Dividends from net investment income		(.20	)		(.17	)		(.17	)		(.19	)		(.25	)
Distributions from net realized gains		—			—			(.12	)		(.16	)		(1.09	)
Total distributions		(.20	)		(.17	)		(.29	)		(.35	)		(1.34	)
Net asset value, end of year		$16.59			$14.13			$10.49			$12.45			$12.64

TOTAL RETURN(a)		18.87	%		36.38	%		(13.57	)%		1.21	%		8.22	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	385,414		$	316,131		$	229,626		$	275,208		$	268,802
Average net assets (000)	$	346,319		$	253,653		$	253,096		$	275,773		$	243,008
Ratios to average net assets
Expenses		.74	%		.80	%		.80	%		.76	%		.80	%
Net investment income		1.43	%		1.50	%		1.49	%		1.51	%		2.01	%
Portfolio turnover rate		47	%		56	%		56	%		50	%		80	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		97

Financial Highlights (cont’d)


	SMALL CAPITALIZATION GROWTH PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$9.38			$7.05			$10.56			$13.09			$17.47
Income (loss) from investment operations
Net investment loss		(.06	)		(.06	)		(.06	)		(.07	)		(.07	)
Net realized and unrealized gain (loss) on investment transactions		1.47			2.39			(3.45	)		(2.46	)		.36
Total from investment operations		1.41			2.33			(3.51	)		(2.53	)		.29
Less distributions
Distributions from net realized gains		—			—			—			—			(4.67	)
Net asset value, end of year		$10.79			$9.38			$7.05			$10.56			$13.09

TOTAL RETURN(a)		15.03	%		33.05	%		(33.24	)%		(19.33	)%		1.83	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	158,757		$	140,251		$	100,868		$	145,554		$	182,515
Average net assets (000)	$	146,717		$	116,632		$	122,299		$	156,654		$	197,168
Ratios to average net assets
Expenses		.90	%		1.03	%		.99	%		.88	%		.79	%
Net investment loss		(.58	)%		(.80	)%		(.74	)%		(.59	)%		(.49	)%
Portfolio turnover rate		107	%		235	%		153	%		167	%		165	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


98		THE TARGET PORTFOLIO TRUST

Financial Highlights (cont’d)


	SMALL CAPITALIZATION VALUE PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$18.78			$13.23			$17.54			$16.88			$14.97
Income (loss) from investment operations
Net investment income		.17			.03			.04			.09			.11
Net realized and unrealized gain (loss) on investment transactions		4.27			6.18			(1.41	)		2.67			3.34
Total from investment operations		4.44			6.21			(1.37	)		2.76			3.45
Less distributions
Dividends from net investment income		(.17	)		(.03	)		(.04	)		(.19	)		(.02	)
Distributions from net realized gains		(1.21	)		(.63	)		(2.90	)		(1.91	)		(1.52	)
Total distributions		(1.38	)		(.66	)		(2.94	)		(2.10	)		(1.54	)
Net asset value, end of year		$21.84			$18.78			$13.23			$17.54			$16.88

TOTAL RETURN(a)		24.02	%		47.10	%		(8.48	)%		17.23	%		23.91	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	245,576		$	205,989		$	147,930		$	177,088		$	152,672
Average net assets (000)	$	218,487		$	161,025		$	167,945		$	161,663		$	130,303
Ratios to average net assets
Expenses		.82	%		.93	%		.88	%		.87	%		.85	%
Net investment income		.86	%		.15	%		.23	%		.59	%		.75	%
Portfolio turnover rate		22	%		89	%		95	%		114	%		55	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		99

Financial Highlights (cont’d)


	INTERNATIONAL EQUITY PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$11.53			$9.07			$10.10			$13.52			$17.37
Income (loss) from investment operations
Net investment income		.15			.16			.11			.09			.17
Net realized and unrealized gain (loss) on investment transactions		1.59			2.43			(1.14	)		(3.39	)		(1.87	)
Total from investment operations		1.74			2.59			(1.03	)		(3.30	)		(1.70	)
Less distributions
Dividends from net investment income		(.14	)		(.13	)		—	(b)		—			(.17	)
Distributions in excess of net investment income		—			—			—			—			(.17	)
Distributions from net realized gains		—			—			—			(.12	)		(1.81	)
Total distributions		(.14	)		(.13	)		—			(.12	)		(2.15	)
Net asset value, end of year		$13.13			$11.53			$9.07			$10.10			$13.52

TOTAL RETURN(a)		15.23	%		28.76	%		(10.17	)%		(24.56	)%		(9.42	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	230,300		$	191,909		$	140,392		$	158,307		$	227,028
Average net assets (000)	$	209,378		$	153,435		$	150,249		$	190,106		$	246,420
Ratios to average net assets
Expenses		1.00	%		1.07	%		1.09	%		1.01	%		.93	%
Net investment income		1.27	%		1.69	%		1.17	%		.82	%		.85	%
Portfolio turnover rate		59	%		47	%		55	%		65	%		44	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

(b)	Less than $.005 per share.

See Notes to Financial Statements


100		THE TARGET PORTFOLIO TRUST

Financial Highlights (cont’d)


	INTERNATIONAL BOND PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$8.45			$8.83			$7.46			$8.08			$8.48
Income (loss) from investment operations
Net investment income		.26			.21			.15			.18			.32
Net realized and unrealized gain (loss) on investment transactions		.05			.26			1.33			(.64	)		(.45	)
Total from investment operations		.31			.47			1.48			(.46	)		(.13	)
Less distributions
Dividends from net investment income		(.48	)		(.84	)		(.11	)		—			—
Distributions from net realized gains		(.09	)		(.01	)		—			—			—
Tax return of capital distributions		—			—			—			(.16	)		(.27	)
Total distributions		(.57	)		(.85	)		(.11	)		(.16	)		(.27	)
Net asset value, end of year		$8.19			$8.45			$8.83			$7.46			$8.08

TOTAL RETURN(a)		3.71	%		5.31	%		20.14	%		(5.73	)%		(1.34	)%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	44,905		$	38,553		$	27,648		$	18,637		$	19,548
Average net assets (000)	$	43,199		$	32,992		$	22,022		$	19,235		$	20,809
Ratios to average net assets
Expenses		1.49	%		1.51	%		1.69	%		1.83	%		1.47	%
Net investment income		2.15	%		1.88	%		1.88	%		2.31	%		4.16	%
Portfolio turnover rate		169	%		235	%		238	%		251	%		52	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		101

Financial Highlights (cont’d)


	TOTAL RETURN BOND PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$10.66			$10.73			$10.42			$10.27			$9.86
Income from investment operations
Net investment income		.20			.33			.41			.52			.66
Net realized and unrealized gain on investment transactions		.31			.33			.57			.28			.42
Total from investment Operations		.51			.66			.98			.80			1.08
Less distributions
Dividends from net investment income		(.44	)		(.36	)		(.45	)		(.54	)		(.67	)
Distributions from net realized gains		(.09	)		(.37	)		(.22	)		(.11	)		—
Total distributions		(.53	)		(.73	)		(.67	)		(.65	)		(.67	)
Net asset value, end of year		$10.64			$10.66			$10.73			$10.42			$10.27

TOTAL RETURN(a)		4.73	%		6.22	%		9.65	%		7.97	%		11.30	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	178,488		$	158,148		$	139,488		$	106,086		$	74,003
Average net assets (000)	$	170,073		$	151,999		$	122,888		$	90,698		$	67,151
Ratios to average net assets
Expenses		.75	%		.76	%		.75	%		.78	%		.79	%
Net investment income		1.82	%		2.99	%		3.89	%		4.83	%		6.23	%
Portfolio turnover rate		587	%		445	%		429	%		472	%		483	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


102		THE TARGET PORTFOLIO TRUST

Financial Highlights (cont’d)


	INTERMEDIATE-TERM BOND PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$10.46			$10.50			$10.23			$10.23			$9.92
Income from investment operations
Net investment income		.19			.28			.38			.52			.63
Net realized and unrealized gain on investment transactions		.14			.19			.47			.29			.34
Total from investment operations		.33			.47			.85			.81			.97
Less distributions
Dividends from net investment income		(.24	)		(.34	)		(.39	)		(.54	)		(.63	)
Distributions in excess of net investment income		—			—			—			—			(.03	)
Distributions from net realized gains		(.19	)		(.17	)		(.19	)		(.27	)		—
Total distributions		(.43	)		(.51	)		(.58	)		(.81	)		(.66	)
Net asset value, end of year		$10.36			$10.46			$10.50			$10.23			$10.23

TOTAL RETURN(a)		3.19	%		4.58	%		8.56	%		8.19	%		10.10	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	297,982		$	334,806		$	333,069		$	195,233		$	130,715
Average net assets (000)	$	318,671		$	343,466		$	258,072		$	167,039		$	116,330
Ratios to average net assets
Expenses		.64	%		.68	%		.66	%		.66	%		.71	%
Net investment income		1.86	%		2.64	%		3.58	%		4.91	%		6.35	%
Portfolio turnover rate		133	%		422	%		377	%		560	%		423	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		103

Financial Highlights (cont’d)


	MORTGAGE BACKED SECURITIES PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$10.45			$10.70			$10.44			$10.31			$9.97
Income (loss) from investment operations
Net investment income		.36			.47			.56			.61			.65
Net realized and unrealized gain (loss) on investment transactions		.02			(.24	)		.27			.17			.33
Total from investment operations		.38			.23			.83			.78			.98
Less distributions
Dividends from net investment income		(.44	)		(.48	)		(.57	)		(.65	)		(.64	)
Net asset value, end of year		$10.39			$10.45			$10.70			$10.44			$10.31

TOTAL RETURN(a)		3.68	%		2.20	%		8.13	%		7.79	%		10.35	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	95,796		$	107,072		$	115,546		$	75,502		$	63,234
Average net assets (000)	$	103,055		$	114,526		$	94,893		$	69,767		$	61,771
Ratios to average net assets
Expenses		.90	%		.84	%		.80	%		.84	%		.83	%
Net investment income		3.48	%		4.43	%		4.43	%		5.74	%		6.60	%
Portfolio turnover rate		279	%		282	%		184	%		72	%		74	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


104		THE TARGET PORTFOLIO TRUST

Financial Highlights (cont’d)


	U.S. GOVERNMENT MONEY MARKET PORTFOLIO
	Year Ended December 31,
	2004			2003			2002			2001			2000

PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year		$1.00			$1.00			$1.00			$1.00			$1.00
Net investment income and net realized gain on investment transactions		.008			.007			.013			.037			.058
Dividends and distributions		(.008	)		(.007	)		(.013	)		(.037	)		(.058	)
Net asset value, end of year		$1.00			$1.00			$1.00			$1.00			$1.00

TOTAL RETURN(a)		0.76	%		0.70	%		1.31	%		3.77	%		5.87	%

RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)	$	74,190		$	98,464		$	127,141		$	154,982		$	122,226
Average net assets (000)	$	94,854		$	114,831		$	128,550		$	132,704		$	93,985
Ratios to average net assets
Expenses		.59	%		.52	%		.45	%		.51	%		.56	%
Net investment income		.72	%		.71	%		1.31	%		3.52	%		5.76	%

(a)	Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions.

See Notes to Financial Statements


THE TARGET PORTFOLIO TRUST		105

Notes to Financial Statements

The TARGET Portfolio Trust (the ‘Fund’) is an open-end management investment company. The Fund was established as a Delaware business trust on July 29, 1992 and consists of ten separate portfolios (the “Portfolio” or “Portfolios”). All the Portfolios are diversified, as defined under the Investment Company Act of 1940, except for the International Bond Portfolio. Investment operations commenced on January 5, 1993, with the exception of the International Bond Portfolio, which commenced on May 17, 1994.

The Portfolios and their investment objectives are as follows:

•

Large Capitalization Growth Portfolio—long-term capital appreciation through investment primarily in stocks of large corporations that, in the investment adviser’s opinion, should have earnings growth faster than that of the S&P 500;

•

Large Capitalization Value Portfolio—total return consisting of capital appreciation and dividend income through investment primarily in stocks of large corporations that, in the adviser’s opinion, are undervalued;

•

Small Capitalization Growth Portfolio—maximum capital appreciation through investment primarily in small company common stocks that, in the investment adviser’s opinion, should have earnings growth faster than that of the U.S. economy in general;

•

Small Capitalization Value Portfolio—above average capital appreciation through investment in small company common stocks that, in the adviser’s opinion, are undervalued or overlooked in the marketplace;

•

International Equity Portfolio—capital appreciation through investment primarily in stocks of companies domiciled outside the United States;

•

International Bond Portfolio—high total return through investment primarily in high-quality, foreign debt securities;

•

Total Return Bond Portfolio—total return of current income and capital appreciation through investment primarily in fixed-income securities of varying maturities with a dollar-weighted average portfolio maturity of more than four years but not more than fifteen years;

•

Intermediate-Term Bond Portfolio—current income and reasonable stability of principal through investment primarily in high quality fixed-income securities of varying maturities with a dollar-weighted average portfolio maturity of more than three years but not more than ten years;

•

Mortgage Backed Securities Portfolio—high current income primarily and capital appreciation secondarily, each consistent with the protection of capital through investment primarily in mortgage related securities;

•

U.S. Government Money Market Portfolio—maximum current income consistent with maintenance of liquidity and preservation of capital through investment exclusively in short-term securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities.

The ability of issuers of debt securities (other than those issued or guaranteed by the U.S. Government) held by the Portfolios to meet their obligations may be affected by economic or political developments in a specific industry, region or country.


106		THE TARGET PORTFOLIO TRUST

Note 1. Accounting Policies

The following is a summary of significant accounting policies followed by the Fund and the Portfolios in the preparation of its financial statements.

Securities Valuations: Securities listed on a securities exchange (other than options on securities and indices) are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and ask prices, or at the last bid price on such day in the absence of an asked price. Securities traded via Nasdaq are valued at the NASDAQ official closing price (NOCP) on the day of valuation, or if there was no NOCP, at the last sale price. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadviser(s); to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Options on securities and indices traded on an exchange are valued at the last sale price as of the close of trading on the applicable exchange or, if there was no sale, at the mean between the most recently quoted bid and asked prices on such exchange or at the last bid price in the absence of an asked price. Futures contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted bid and asked prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Securities for which reliable market quotations are not readily available, or whose values have been affected by events occurring after the close of the security’s foreign market and before the Portfolio’s pricing time, are valued at fair value in accordance with the Board of Trustees’ approved fair valuation procedures. As of December 31, 2004 there were no foreign securities whose value required adjustment in accordance with procedures approved by the Board of Trustees. 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.

Certain Portfolios held illiquid securities, including those which are restricted as to disposition under securities law (“restricted securities”). Restricted securities, sometimes referred to as private placements, are valued pursuant to the valuation procedures noted above. Each Portfolio may hold up to 15% of its net assets in illiquid securities, except for the U.S. Government Money Market Portfolio, which may hold up to 10% of its net assets in illiquid securities.

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 the valuation.

U.S. Government securities for which market quotations are available are valued at a price provided by an independent pricing agent or primary dealer (a dealer that trades in U.S. Government securities with the Federal Reserve System).

Securities held by the U.S. Government Money Market Portfolio are valued at amortized cost in accordance with Rule 2a-7 of the Investment Company Act, which approximates market value. The amortized cost method involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and the cost.

Short-term securities held by the other Portfolios which mature in 60 days or less are valued at amortized cost, which approximates market value. Short-term securities held by the other Portfolios which mature in more than 60 days are valued at current market quotations.


THE TARGET PORTFOLIO TRUST		107

Repurchase Agreements: In connection with transactions in repurchase agreements with United States financial institutions, it is the Fund’s policy that its custodian or designated subcustodians under triparty repurchase agreements, as the case may be, take possession of the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase transaction exceeds one business day, the value of the collateral is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the seller defaults, and the value of the collateral declines or, if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited.

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 Portfolio 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 Portfolio 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 an unrealized gain or loss. When the contract expires or is closed, the gain or loss is realized and is presented in the Statements of Operations as a net realized gain or loss on financial futures contracts.

The Portfolio invests in financial futures contracts in order to hedge its existing portfolio securities, or securities the Portfolio intends to purchase, against fluctuations in value caused by changes in prevailing interest rates or market conditions. Should interest rates move unexpectedly, the Portfolio 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. The Portfolio maintains a segregated account of Securities or other liquid assets, the dollar value of which is at least equal to its obligation with respect to financial futures contracts. The International Equity Portfolio, International Bond Portfolio, Intermediate-Term Bond Portfolio, Mortgage-Backed Securities Portfolio and Total Return Bond Portfolio are the only portfolios that may invest in financial futures contracts.

Foreign Currency Translation: The books and records of the Portfolios are maintained in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on the following basis:

(i) market value of investment securities, other assets and liabilities—at the current daily rates of exchange;

(ii) purchases and sales of investment securities, income and expenses—at the rates of exchange prevailing on the respective dates of such transactions.

Although the net assets of the Portfolios are presented at the foreign exchange rates and market values at the close of the year, the Portfolios do not isolate that portion of the results of operations arising as a result of changes in the foreign exchange rates from the fluctuations arising from changes in the market prices of long-term securities held at year end. Similarly, the Portfolios do not isolate the effect of changes in foreign exchange rates from the fluctuations arising from changes in the market prices of long-term portfolio securities sold during the year. Accordingly, realized foreign currency gains or losses are included in the reported net realized gains or losses on investment transactions.

Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from the holding of foreign currencies, currency gains or losses realized between the trade date and settlement date on securities transactions, and the difference between the amounts of dividends, interest and


108		THE TARGET PORTFOLIO TRUST

foreign withholding taxes recorded on the Portfolios’ books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities (other than investments) at year end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on investments and foreign currencies.

Foreign security and currency transactions may involve certain considerations and risks not typically associated with those of domestic origin as a result of, among other factors, the possibility of political and economic instability or the level of governmental supervision and regulation of foreign securities markets.

Forward Foreign Currency Contracts: A forward foreign currency contract is a commitment to purchase or sell a foreign currency at a future date at a negotiated forward rate. The Portfolio enters into forward foreign currency contracts in order to hedge its exposure to changes in foreign currency exchange rates on its foreign portfolio holdings or on specific receivables and payables denominated in a foreign currency. The contracts are valued daily at current forward exchange rates and any unrealized gain or loss is included in net unrealized appreciation or depreciation on foreign currency transactions. Gains or losses are realized on the settlement date of the contract equal to the difference between the settlement value of the original and negotiated forward contracts. This gain or loss, if any, is included in net realized gain or loss on foreign currency transactions. Risks may arise upon entering into these contracts from the potential inability of the counterparties to meet the terms of their contracts. The International Equity Portfolio, International Bond Portfolio, Intermediate-Term Bond Portfolio and Total Return Bond Portfolio may enter into forward foreign currency contracts in order to hedge their exposure to changes in foreign currency exchange rates on their foreign portfolio holdings.

Options: The Portfolio 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 or foreign currency exchange rates with respect to securities or currencies which the Portfolio currently owns or intends to purchase. The Portfolio’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 Portfolio purchases an option, it pays a premium and an amount equal to that premium is recorded as an asset. When the Portfolio 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 Portfolio 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 recorded as an adjustment to the proceeds from the sale or the cost basis of the purchase in determining whether the Portfolio 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. Gains or losses on purchased options are included in net realized gains or losses on investment transactions. Gains or losses on written options are presented separately as net realized gains or losses on options written.

The Portfolio, as writer of an option, may have no control over whether the contract may be exercised. As a result, the Portfolio bears the market risk of an unfavorable change in the price of the security or currencies underlying the written option. The Portfolio, as purchaser of an option, bears the risk of the potential inability of the counterparties to meet the terms of their contracts. The Portfolio maintains a segregated account of securities or other liquid assets, the dollar value of which is at least equal to its obligation with respect to options. The International Equity Portfolio, the International Bond Portfolio, the Intermediate-Term Bond Portfolio, the Total Return Bond Portfolio and the Mortgage-Backed Securities Portfolio may either purchase or write options.


THE TARGET PORTFOLIO TRUST		109

Short Sales: Certain portfolios of the Fund may make short sales of securities as a method of hedging potential price declines in similar securities owned. The Portfolio may sell a security, it does not own in anticipation of a decline in the market value of that security (short sale). When the Portfolio makes a short sale, it will borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Portfolio may have to pay a fee to borrow the particular security and may be obligated to return any interest or dividends received on such borrowed securities. A gain, limited to the price at which the Portfolio sold the security short, or a loss, unlimited as to dollar amount, will be recognized upon the termination of a short sale if the market price at termination is less than or greater than the proceeds originally received, respectively, and is presented in the Statement of Operations as net realized gain or loss on short sales. The Portfolio maintains a segregated account of securities or other liquid assets, the dollar value of which is at least equal to its obligation with respect to short sales. The Total Return Bond Portfolio, Intermediate-Term Bond Portfolio and Mortgage-Backed Securities Portfolio may enter into short sales.

Swaps: A swap is an agreement to exchange the return generated by one instrument for the return generated by another instrument. The Portfolio may enter into interest rate, forward swap spread lock and credit default swap agreements to manage its exposure to interest rates and credit risk. Interest rate swap agreements involve the exchange by the Portfolio with another party of their respective commitments to pay or receive interest. Forward spread lock swap agreements involve commitments to pay or receive a settlement amount calculated as the difference between the swap spread and a fixed spread, multiplied by the notional amount times the duration of the swap. The swap spread is the difference between the benchmark swap rate (market rate) and the specific Treasury rate. In a credit default swap, one party makes a stream of payments to another party in exchange for the right to receive a specified return in the event of a default by a third party, typically corporate issues or sovereign issues of an emerging country, on its obligation. Dividends and interest on the securities in the swap are included in the value of the exchange. The swaps are valued daily at current market value and any unrealized gain or loss is included in the Statement of Assets and Liabilities. Gain or loss is realized on the termination date of the swap and is equal to the difference between the Portfolio’s basis in the swap and the proceeds of the closing transaction, including any fees. During the period that the swap agreement is open, the Portfolio may be subject to risk from the potential inability of the counterparty to meet the terms of the agreement. The Total Return Bond Portfolio, International Bond Portfolio, Mortgage Backed Securities Portfolio and the Intermediate-Term Bond Portfolio may enter into swaps.

The use of derivative transactions may involve elements of both market and credit risk in excess of the amounts reported in the Statements of Assets and Liabilities.

When-Issued/Delayed Delivery Securities: Certain Portfolios may purchase or sell securities on a when-issued or delayed delivery basis. These transactions involve a commitment by the Portfolio to purchase or sell securities for a predetermined price or yield, with payment and delivery taking place beyond the customary settlement period. When delayed delivery purchases are outstanding, the Portfolio will set aside and maintain until the settlement date in a segregated account, liquid assets in an amount sufficient to meet the purchase price. When purchasing a security on a delayed delivery basis, the Portfolio assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. The Portfolio may dispose of or renegotiate a delayed delivery transaction after it is entered into, and may sell when-issued securities before they are delivered, which may result in a capital gain or loss. When the Portfolio has sold a security on a delayed delivery basis, the Portfolio does not participate in future gains and losses with respect to the security.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized and unrealized gains and losses from security and currency transactions are calculated


110		THE TARGET PORTFOLIO TRUST

on the identified cost basis. Dividend income is recorded on the ex-dividend date and interest income, including amortization of premium and accretion of discount of debt securities, as required, is recorded on the accrual basis. Expenses are recorded on the accrual basis. The Fund’s expenses are allocated to the respective Portfolios on the basis of relative net assets except for expenses that are charged directly at the Portfolio or class level.

Dividends and Distributions: The Total Return Bond Portfolio, Intermediate-Term Bond Portfolio and Mortgage Backed Securities Portfolio declare dividends of their net investment income daily and pay such dividends monthly. The U.S. Government Money Market Portfolio declares net investment income and any net capital gain (loss) daily and pays such dividends monthly. Each other Portfolio declares and pays a dividend of its net investment income, if any, at least annually. Each Portfolio except for the U.S. Government Money Market Portfolio declares and pays its net realized capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on exdividend date. Permanent book/ tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid-in capital, in excess of par, as appropriate.

Taxes: For federal income tax purposes, each Portfolio in the Fund is treated as a separate tax-paying entity. It is each Portfolio’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required.

Withholding taxes on foreign interest and dividends are recorded net of reclaimable amounts, at the time the related income is earned.

Estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts and disclosures in the financial statements. Actual results could differ from those estimates.

Note 2. Agreements

The Fund’s manager is Prudential Investments LLC (“PI”). PI manages the investment operations of the Fund, administers the Fund’s affairs and is responsible for the selection, subject to review and approval of the Trustees, of the advisers. PI supervises the advisers’ performance of advisory services and makes recommendations to the Trustees as to whether the advisers’ contracts should be renewed, modified or terminated. PI pays for the costs pursuant to the advisory agreements, the cost of compensation of officers of the Fund, occupancy and certain clerical and accounting costs of the Fund. The Fund bears all other costs and expenses.

The advisers noted below each furnished investment advisory services in connection with the management of the Portfolios. Each of the two advisers of the domestic equity Portfolios—the Large Capitalization Growth Portfolio, Large Capitalization Value Portfolio, Small Capitalization Growth Portfolio and Small Capitalization Value Portfolio—manages approximately 50% of the assets of the respective Portfolio. In general, in order to maintain an approximately equal division of assets between the two advisers, all daily cash inflows (i.e., subscriptions and reinvested distributions) and outflows (i.e., redemptions and expenses items) are divided between the two advisers as PI deems appropriate. In order to maintain an approximately equal allocation between the two subadvisers, a periodic rebalancing of each subadviser’s share of Portfolio assets may occur to account for market fluctuations.


THE TARGET PORTFOLIO TRUST		111


Portfolio		Adviser
Large Capitalization Growth		Oak Associates, Ltd. and Columbus Circle Investors
Large Capitalization Value		J.P. Morgan Investment Management, Inc. and Hotchkis & Wiley Capital Management, LLC
Small Capitalization Growth		Westcap Investors, LLC and RS Investment Management, L.P.
Small Capitalization Value		NFJ Investment Group L.P. and EARNEST Partners, LLC
International Equity		Lazard Asset Management
International Bond*, Total Return Bond and Intermediate-Term Bond		Pacific Investment Management Company LLC
Mortgage Backed Securities and U.S. Government Money Market		Wellington Management Company, LLP

*	Effective at the close of business on October 20, 2004, Pacific Investment Management Company LLC replaced Fischer, Francis, Trees & Watts, Inc.

The management fee payable to PI is computed daily and paid monthly, at an annual rate of the average daily net assets of the Portfolios specified below and PI, in turn, pays each adviser a fee for its services.


Portfolio	Contracted & Effective Management Fee
Large Capitalization Growth	0.60	%
Large Capitalization Value	0.60	%
Small Capitalization Growth	0.60	%
Small Capitalization Value	0.60	%
International Equity	0.70	%
International Bond	0.50	%
Total Return Bond	0.45	%
Intermediate-Term Bond	0.45	%
Mortgage Backed Securities	0.45	%
U.S. Government Money Market	0.25	%

The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”). PIMS serves the Fund without compensation.

PI and PIMS 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. For the period from January 1, 2004 through April 30, 2004 the SCA provided for a commitment of $800 million and allowed the Funds to increase the commitment to $1 billion if necessary. Effective May 1, 2004, the SCA provided for a commitment of $500 million. Interest on any borrowings under the SCA would be incurred at market rates. The Funds paid 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 continues to be $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 is October 28, 2005. The Fund did not borrow any amounts pursuant to the SCA during the year ended December 31, 2004.


112		THE TARGET PORTFOLIO TRUST

Note 3. Other Transactions with Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. The following approximate amounts represent the fees PMFS charged for the year ended December 31, 2004, as well as the fees due to PMFS as of December 31, 2004. Transfer agent fees and expenses in the Statement of Operations also include certain out-of-pocket expenses paid to non-affiliates where applicable.


Portfolio	Amount incurred for the year ended December 31, 2004		Amounts due as of December 31, 2004
Large Capitalization Growth	$	263,500	$	20,100
Large Capitalization Value		203,200		16,800
Small Capitalization Growth		190,800		15,400
Small Capitalization Value		228,600		19,300
International Equity		173,100		14,000
International Bond		73,900		6,100
Total Return Bond		166,300		14,100
Intermediate-Term Bond		225,300		17,100
Mortgage Backed Securities		108,000		8,400
U.S. Government Money Market		85,900		6,600

The Portfolios pay networking fees to affiliated and unaffiliated broker/dealers, including fees relating to the services of Wachovia Securities, LLC (“Wachovia”), an affiliate of PI. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. These amounts are included in transfer agent’s fees and expenses in the Statement of Operations. For the year ended December 31, 2004, the Portfolios paid networking fees as follows:


Portfolio	Total Networking Fees Incurred		Wachovia Fees Incurred		Due to Wachovia as of December 31, 2004
Large Capitalization Growth	$	54,700	$	54,400	$	2,200
Large Capitalization Value		39,600		39,400		600
Small Capitalization Growth		37,800		37,500		500
Small Capitalization Value		40,700		40,400		1,200
International Equity		33,800		33,800		400
International Bond		15,000		15,000		1,100
Total Return Bond		33,000		32,800		4,100
Intermediate-Term Bond		48,900		48,600		3,800
Mortgage Backed Securities		21,400		21,400		300
U.S. Government Money Market		18,500		18,400		1,900


THE TARGET PORTFOLIO TRUST		113

For the year ended December 31, 2004, the amount of brokerage commissions earned by Wachovia and Prudential Equity Group, LLC, (“PEG”), an indirect, wholly-owned subsidiary of Prudential, from portfolio transactions executed on behalf of the Portfolios were as follows:


Portfolio	Wachovia		PEG
Large Capitalization Growth	$	1,385		—
Large Capitalization Value		72	$	2,345
Small Capitalization Growth		80		—

Certain Portfolios invest in the Taxable Money Market Series (the “Series”), a portfolio of Dryden Core Investment Fund, pursuant to an exemptive order received from the Securities and Exchange Commission. The Series is a money market mutual fund registered under the Investment Company Act of 1940, as amended, and managed by PI. During the year ended December 31, 2004, the following Portfolios earned income from the Series by investing their excess cash:


Portfolio	Excess Cash Investment
Large Capitalization Growth	$	129,718
Large Capitalization Value		81,912
Small Capitalization Growth		106,839
Small Capitalization Value		101,886
International Bond		34,310

Note 4. Portfolio Securities

Purchases and sales of portfolio securities, excluding short-term investments and U.S. Government securities, for the year ended December 31, 2004, were as follows:


Portfolio	Purchases		Sales
Large Capitalization Growth	$	253,179,954	$	260,577,677
Large Capitalization Value		178,674,610		161,587,111
Small Capitalization Growth		149,119,380		149,303,161
Small Capitalization Value		46,231,075		51,754,680
International Equity		133,060,791		120,110,220
International Bond		67,157,123		66,364,902
Total Return Bond		445,808,215		439,278,472
Intermediate-Term Bond		119,865,164		130,027,141
Mortgage Backed Securities		289,213,353		292,606,065


114		THE TARGET PORTFOLIO TRUST

At December 31, 2004, the International Bond, Total Return Bond, Intermediate-Term Bond and the Mortgage Backed Securities Portfolios had open financial futures contracts. The unrealized appreciation (depreciation) on such contracts as of December 31, 2004 were as follows:

International Bond:


Number of Contracts	Type	Expiration Date	Value at December 31, 2004		Value at Trade Date		Unrealized Appreciation (Depreciation)
	Long Positions:
15	10yr T-Note	Mar. 2005	$	1,679,063	$	1,686,328	$	(7,265	)
8	Euro-BUND	Mar. 2005		1,289,547		1,291,180		(1,633	)
3	Japanese 10yr Bond	Mar. 2005		4,050,747		4,037,121		13,626
2	Euro-BOBL	Mar. 2005		306,919		307,436		(517	)

							$	4,211


Total Return Bond:
Number of Contracts	Type	Expiration Date	Value at December 31, 2004		Value at Trade Date		Unrealized Appreciation (Depreciation)
	Long Positions:
408	10yr T-Note	Mar. 2005	$	45,670,500	$	45,752,578	$	(82,078	)
131	Euro-BOBL	Mar. 2005		20,103,167		20,143,930		(40,763	)
67	90 Day Euro	Jun. 2005		16,218,188		16,283,188		(65,000	)
62	90 Day Euro	Dec. 2005		14,948,200		14,864,350		83,850
49	5yr T-Note	Mar. 2005		5,367,031		5,387,406		(20,375	)
31	90 Day Euro	Sep. 2005		7,487,275		7,517,500		(30,225	)
27	90 Day Euro	Mar. 2005		6,553,913		6,556,275		(2,362	)
17	15yr T-Bond	Mar. 2005		1,912,500		1,918,875		(6,375	)
13	90 Day Euribor	Dec. 2005		2,971,648		2,957,513		14,135
12	90 Day Euribor	Mar. 2005		2,739,892		2,768,349		(28,457	)
2	Japanese 10yr Bond	Mar. 2005		2,700,498		2,694,004		6,494

							$	(171,156	)


Intermediate-Term Bond:
Number of Contracts	Type	Expiration Date	Value at December 31, 2004		Value at Trade Date		Unrealized Appreciation (Depreciation)
	Long Positions:
507	90 Day Euro	Sep. 2005	$	122,453,175	$	122,956,612	$	(503,437	)
405	5yr T-Note	Mar. 2005		44,360,156		44,278,945		81,211
376	10yr T-Note	Mar. 2005		42,088,500		41,541,594		546,906
24	Euro-BOBL	Mar. 2005		3,683,023		3,690,491		(7,468	)

							$	117,212


THE TARGET PORTFOLIO TRUST		115



Mortgage Backed Securities:
Number of Contracts	Type	Expiration Date	Value at December 31, 2004		Value at Trade Date		Unrealized Appreciation
	Short Positions:
26	2yr T-Note	Mar. 2005	$	5,449,437	$	5,453,803	$	4,366
5	5yr T-Note	Mar. 2005		547,656		549,628		1,972

							$	6,338

At December 31, 2004, the International Bond Portfolio had outstanding forward currency contracts to purchase and sell foreign currencies, as follows:


Foreign Currency Purchase Contracts	Value at Settlement Date Payable		Current Value		Unrealized Appreciation (Depreciation)
Euros, expiring 01/10/05	$	3,061,983	$	3,100,662	$	38,679
Japanese Yen, expiring 1/12/05		122,186		124,593		2,407
expiring 1/27/05		71,002		73,062		2,060
New Zealand Dollars, expiring 2/11/05		1,411		1,438		27
Pound Sterlings, expiring 1/13/05		4,451,443		4,411,617		(39,826	)
Swedish Kronas, expiring 3/09/05		62,359		63,703		1,344

	$	7,770,384	$	7,775,075	$	4,691


Foreign Currency Sale Contracts	Value at Settlement Date Receivable		Current Value		Unrealized Appreciation (Depreciation)
Canadian Dollars, expiring 1/13/05	$	208,123	$	212,810	$	(4,687	)
Danish Krones, expiring 1/03/05		12,048		12,060		(12	)
expiring 3/09/05		249,600		252,319		(2,719	)
Euros, expiring 1/10/05		30,789,320		31,176,538		(387,218	)
expiring 1/10/05		237,895		237,885		10
expiring 1/12/05		122,379		125,061		(2,682	)
Japanese Yen, expiring 1/27/05		6,144,695		6,154,380		(9,685	)
Pound Sterlings, expiring 1/13/05		4,597,396		4,601,509		(4,113	)
Swedish Kronas, expiring 1/12/05		60,491		60,801		(310	)

	$	42,421,947	$	42,833,363	$	(411,416	)


116		THE TARGET PORTFOLIO TRUST



At December 31, 2004, the Total Return Bond Portfolio had outstanding forward currency contracts to purchase and sell foreign currencies, as follows:
Foreign Currency Purchase Contracts	Value at Settlement Date Payable		Current Value		Unrealized Appreciation (Depreciation)
Euros, expiring 1/10/05	$	780,062	$	796,600	$	16,538
Pound Sterling, expiring 1/13/05		284,442		283,878		(564	)
Japanese Yen, expiring 1/27/05		181,978		185,420		3,442

	$	1,246,482	$	1,265,898	$	19,416


Foreign Currency Sale Contracts	Value at Settlement Date Receivable		Current Value		Unrealized Depreciation
Euros, expiring 1/10/05	$	3,247,749	$	3,297,540	$	(49,791	)
Pound Sterling, expiring 1/13/05		272,276		272,626		(350	)
Japanese Yen, expiring 1/27/05		373,853		389,997		(16,144	)

	$	3,893,878	$	3,960,163	$	(66,285	)

Transactions in options written during the year ended December 31, 2004, were as follows:



International Bond	Number of Contracts		Premiums Received
Options outstanding at December 31, 2003	—			—
Options written	553		$	122,843
Options closed	(413	)		(78,319	)
Options expired	(94	)		(14,559	)

Options outstanding at December 31, 2004	46		$	29,965


Total Return Bond	Number of Contracts/ Notional Amount (000)		Premiums Received
Options outstanding at December 31, 2003	39,000		$	584,954
Options written	3,609			306,725
Options closed	(9	)		(6,935	)
Options expired	(10,182	)		(339,455	)

Options outstanding at December 31, 2004	32,418		$	545,289


Intermediate-Term Bond	Number of Contracts/ Notional Amount (000)		Premiums Received
Options outstanding at December 31, 2003	33,800		$	309,693
Options written	555			329,677
Options closed	(47	)		(34,105	)
Options expired	(308	)		(258,822	)

Options outstanding at December 31, 2004	34,000		$	346,443


THE TARGET PORTFOLIO TRUST		117

The Total Return Bond Portfolio entered into interest rate swap agreements during the year ended December 31, 2004. Details of the swap agreements outstanding as of December 31, 2004 were as follows:


Counterparty	Termination Date	Notional Amount		Fixed Rate		Floating Rate	Unrealized Appreciation (Depreciation)
UBS AG(a)	6/17/10	EUR	200,000	4.00	%	6 month LIBOR	$	6,859
UBS AG(b)	12/15/14	EUR	9,200,000	5.00		6 month LIBOR		(1,044,292	)
UBS AG(a)	6/15/12	JPY	130,000,000	2.00		6 month LIBOR		(55,936	)
UBS AG(a)	9/15/05	$	7,500,000	3.25		3 month LIBOR		86
UBS AG(b)	12/16/14	$	5,100,000	5.00		3 month LIBOR		2,954
UBS AG(a)	12/16/19	$	6,400,000	6.00		3 month LIBOR		9,577
Lehman Brothers(a)	6/15/10	$	3,000,000	4.00		3 month LIBOR		16,977
Lehman Brothers(b)	6/15/05	$	9,300,000	5.00		3 month LIBOR		46,100
Lehman Brothers(b)	6/15/25	$	5,200,000	6.00		3 month LIBOR		21,502
Goldman Sachs Capital Markets, L.P.(a)	6/15/10	$	4,500,000	4.00		3 month LIBOR		2,021
JPMorgan Chase Bank(a)	3/17/05	GBP	2,000,000	4.00		6 month LIBOR		(9,628	)
JPMorgan Chase Bank(a)	6/17/10	EUR	1,000,000	4.00		6 month LIBOR		34,294
JPMorgan Chase Bank(a)	3/15/32	EUR	1,600,000	6.00		6 month LIBOR		79,794
JPMorgan Chase Bank(a)	6/18/34	EUR	1,500,000	6.00		6 month LIBOR		130,060
RBS Greenwich Capital(a)	6/15/10	$	2,700,000	4.00		3 month LIBOR		14,983
Barclays Bank PLC(b)	3/15/32	GBP	1,300,000	5.00		6 month LIBOR		(35,839	)
Barclays Bank PLC(b)	6/18/34	GBP	900,000	5.00		6 month LIBOR		(42,312	)
Barclays Bank PLC(a)	6/15/07	$	1,700,000	4.00		3 month LIBOR		2,869
Morgan Stanley Capital Services(b)	6/15/12	JPY	130,000,000	2.00		6 month LIBOR		(45,885	)
Morgan Stanley Capital Services(a)	3/16/05	GBP	1,200,000	4.25		6 month LIBOR		(7,225	)

							$	(873,041	)

(a)	Portfolio pays the floating rate and receives the fixed rate.

(b)	Portfolio pays the fixed rate and receives the floating rate.

The Total Return Bond Portfolio entered into credit default swap agreements during the year ended December 31, 2004. Details of the swap agreements outstanding as of December 31, 2004 were as follows:


Counterparty	Termination Date	Notional Amount		Fixed Rate		Underlying Bond	Unrealized Appreciation (Depreciation)
Morgan Stanley Capital Services(a)	12/20/2008	$	500,000	0.26	%	Allstate Corp., 6.125%, due 2/15/12	$	(1,919	)
Merrill Lynch Capital Services(a)	12/20/2008		200,000	0.27		Anadarko Petroleum Corp., 5.00%, due 10/1/12		(548	)
UBS AG(a)	12/20/2008		600,000	0.35		AutoZone, Inc., 5.875%, due 10/15/12		6,478
Bear Stearns International Ltd.(a)	12/20/2008		100,000	1.09		Capital One Bank, 4.875%, due 5/15/08		(2,153	)
UBS AG(a)	12/20/2008		200,000	0.44		Carnival Corp., 6.15%, due 4/15/08		(1,981	)


118		THE TARGET PORTFOLIO TRUST


Counterparty	Termination Date	Notional Amount		Fixed Rate		Underlying Bond	Unrealized Appreciation (Depreciation)
Bear Stearns International Ltd.(a)	12/20/2008	$	200,000	0.19	%	Caterpillar, Inc., 7.25%, due 9/15/09	$	(241	)
Lehman Brothers(a)	12/20/2008		100,000	0.24		Costco Wholesale Corp., 5.50%, due 3/15/07		(420	)
Morgan Stanley(a)	12/20/2008		200,000	0.42		Countrywide Home Loans, Inc., 5.625%, due 7/15/09		(335	)
Bear Stearns International Ltd.(a)	12/20/2008		200,000	0.24		Deere & Co., 7.85%, due 5/15/10		(617	)
Merrill Lynch Capital Services(a)	12/20/2008		300,000	0.35		Devon Energy Corp., 6.875%, due 9/30/11		(1,161	)
Bank of America Securities LLC(a)	12/20/2008		300,000	0.13		E.I. DuPont, 6.875%, due 10/15/09		(576	)
Citigroup(a)	12/20/2008		400,000	0.28		Eaton Corp., 5.75%, due 7/15/12		(2,139	)
Barclays Bank PLC(a)	12/20/2008		500,000	0.16		Eli Lilly & Co., Inc., 6.00%, due 3/15/12		(595	)
Morgan Stanley Capital Services(a)	12/20/2008		300,000	0.21		Emerson Electric Co,. 6.48%, due 10/15/12		(590	)
Morgan Stanley Capital Services(a)	12/20/2008		200,000	0.22		Emerson Electric Co,. 7.125%, due 8/15/10		(468	)
Citigroup(a)	12/20/2008		300,000	0.29		FedEx Corp., 7.25%, due 2/15/11		(1,266	)
Merrill Lynch Capital Services(a)	12/20/2008		100,000	0.22		Gannett Co., Inc., 6.375%, due 8/10/09		(123	)
Bear Stearns International Ltd.(a)	6/20/2005		4,800,000	0.55		General Motors, 6.875%, due 8/28/12		2,200
Bear Stearns International Ltd.(b)	6/20/2005		4,800,000	0.69		General Motors, 7.125%, due 7/15/13		2,108
Leham Brothers(a)	12/20/2008		200,000	0.97		Goodrich Corp., 7.625%, due 12/15/12		(5,000	)
Bear Stearns International Ltd.(a)	12/20/2008		400,000	0.32		Hewlett Packard Co., 6.50%, due 7/1/12		(2,740	)
Lehman Brothers(a)	12/20/2008		400,000	0.12		Home Depot, Inc., 5.375%, due 4/1/06		(471	)
Merrill Lynch Capital Services(a)	12/20/2008		300,000	0.32		Ingersoll-Rand Co., 6.48%, due 6/1/25		(1,500	)
Bear Stearns International Ltd.(a)	12/20/2008		200,000	0.60		International Paper Co., 6.75%, due 9/1/11		(2,220	)
Lehman Brothers(a)	12/20/2008		400,000	0.11		Johnson & Johnson, 3.80%, due 5/15/13		(317	)
Lehman Brothers(a)	12/20/2008		200,000	0.53		Lockheed Martin Corp., 8.20%, due 12/1/09		(2,437	)
Lehman Brothers(a)	12/20/2008		300,000	0.35		Masco Corp., 5.875%, due 7/15/12		(944	)
Morgan Stanley Capital Services(b)	5/20/2005		1,000,000	0.63		Mexico Gov't, 11.50%, due 11/15/26		2,570
Merrill Lynch Capital Services(a)	12/20/2008		200,000	0.85		Motorola, Inc., 7.625%, due 11/15/10		(4,019	)


THE TARGET PORTFOLIO TRUST		119


Counterparty	Termination Date	Notional Amount		Fixed Rate		Underlying Bond	Unrealized Appreciation (Depreciation)
Lehman Brothers(a)	12/20/2008	$	200,000	0.48	%	Northrop Grmman Corp., 7.125%, due 2/15/11	$	(1,904	)
Merrill Lynch Capital Services(a)	12/20/2008		200,000	0.28		Occidental Petroleum Corp., 6.75%, due 1/15/12		(404	)
Lehman Brothers(a)	12/20/2008		300,000	0.35		Radioshack Corp., 7.375%, due 5/15/11		(1,500	)
UBS AG(a)	12/20/2008		200,000	0.37		Radioshack Corp., 7.375%, due 5/15/11		(1,150	)
Lehman Brothers(a)	6/20/2009		1,200,000	0.40		Republic of China, 6.80%, due 05/23/11		(8,361	)
Morgan Stanley Capital Services	12/20/2008		200,000	0.44		Simon Property Group, L.P., 5.45%, due 3/15/13		(1,161	)
UBS AG(a)	12/20/2008		200,000	0.53		The Kroger Co., 4.75%, due 4/15/12		(1,753	)
Barclays Bank PLC(a)	12/20/2008		200,000	0.67		The Walt Disney Co., 6.375%, due 3/1/12		(3,632	)
Citigroup(a)	12/20/2008		800,000	0.14		Wal-Mart Stores, Inc., 6.875%, due 8/10/09		(2,427	)
Bear Stearns International Ltd.(a)	12/20/2008		200,000	0.15		Wal-Mart Stores, Inc., 6.875%, due 8/10/09		(682	)
Lehman Brothers(a)	12/20/2008		200,000	0.29		Whirlpool Corp., 8.60%, due 5/1/10		(633	)

							$	(45,031	)

(a)	Portfolio pays the fixed rate and receives from the counterparty, par in the event that the underlying bond defaults.

(b)	Portfolio pays the counterparty, par in the event that the underlying bond defaults and receives the fixed rate.

The Intermediate-Term Bond Portfolio entered into interest rate swap agreements during the year ended December 31, 2004. Details of the swap agreements outstanding as of December 31, 2004 were as follows:


Counterparty	Termination Date	Notional Amount		Fixed Rate		Floating Rate	Unrealized Appreciation (Depreciation)
Merrill Lynch Capital Services(a)	6/17/2008	SEK	56,000,000	4.50	%	SEK - STIBOR - SIDE	$	316,759
Morgan Stanley Capital Services(a)	3/17/2005	GBP	26,800,000	4.25		6 month GBP LIBOR		(324,164	)
RBS Greenwich Capital (a)	6/15/2010	$	6,000,000	4.00		3 month LIBOR		33,295

							$	25,890

(a)	Portfolio pays the floating rate and receives the fixed rate.


120		THE TARGET PORTFOLIO TRUST

The Intermediate-Term Bond Portfolio entered into credit default swap agreements during the year ended December 31, 2004. Details of the swap agreements outstanding as of December 31, 2004 were as follows:


Counterparty	Termination Date	Notional Amount		Fixed Rate		Underlying Bond	Unrealized Appreciation
JP Morgan Chase Bank(a)	3/11/2005	$	1,200,000	1.00	%	Russian Federation, 5.00% 3/31/30	$	4,333
Bear Stearns International Ltd.(a)	3/17/2005		200,000	1.00		Russian Federation, 5.00% 3/31/30		698

							$	5,031

(a)	Portfolio pays the counterparty, par in the event that the underlying bond defaults and receives the fixed rate.

The International Bond Portfolio entered into interest rate swap agreements during the year ended December 31, 2004. Details of the swap agreements outstanding as of December 31, 2004 were as follows:


Counterparty	Termination Date	Notional Amount		Fixed Rate		Floating Rate	Unrealized Appreciation (Depreciation)
Bank of America, N.A.(a)	6/15/2015	$	5,000,000	5.00	%	3 month LIBOR	$	22,836
Goldman Sachs Capital Markets, L.P.(a)	6/15/2015	$	2,200,000	5.00		3 month LIBOR		(12,643	)
UBS AG(a)	6/18/2034	GBP	200,000	5.00		6 month LIBOR		(2,533	)
UBS AG(a)	12/18/2034	EUR	200,000	6.00		6 month EURIBOR		9,368

							$	17,028

(a)	Portfolio pays the fixed rate and receives the floating rate.

The Mortgage Backed Securities Portfolio entered into a total return swap agreement during the year ended December 31, 2004. Details of the swap agreement outstanding as of December 31, 2004 were as follows:

Counterparty

Termination
Date

Notional
Amount
(000)

Return
Received

Return
Paid

Unrealized
Appreciation

Goldman Sachs Capital Markets, L.P.

5/1/05

3,000

Lehman Bros.
CMBS Index

spread change*
((notional
amount/10,000)*
Mod Adj Durat)

1,339


THE TARGET PORTFOLIO TRUST		121

Note 5. Tax and Distribution Information

In order to present undistributed net investment income or loss and accumulated net realized gains or losses on the Statement of Assets and Liabilities that more closely represent their tax character, certain adjustments have been made to paid-in-capital in excess of par, undistributed net investment income or loss and accumulated net realized gain or loss on investment. For the year ended December 31, 2004, the adjustments were as follows:


Portfolio	Paid-In Capital In Excess of Par			Undistributed Net investment Income			Accumulated Net Realized Gain or Loss
Large Capitalization Value Portfolio(e)	$	12,550,399			—		$	(12,550,399	)
Small Capitalization Growth Portfolio(b)		(846,297	)	$	846,297			—
International Equity Portfolio(a)(c)		—			(631,134	)		631,134
International Bond Portfolio(a)(d)(h)		—			(3,088,316	)		3,088,316
Total Return Bond Portfolio(a)(d)(g)		—			4,833,472			(4,833,472	)
Intermediate-Term Bond Portfolio(a)(d)(f)(h)		—			1,399,965			(1,399,965	)
Mortgage Backed Securities Portfolio(d)(h)		—			726,490			(726,490	)

(a)	Reclassification of net foreign currency gain (loss).

(b)	Reclassification of tax operating loss.

(c)	Reclassification of book to tax differences due to the sale of passive foreign investment companies.

(d)	Reclassification of swap income.

(e)	Reclassification for redemptions utilized as distributions for federal income tax purposes.

(f)	Reclassification of income from defaulted securities.

(g)	Reclassification of overdistribution of ordinary income.

(h)	Reclassification of paydowns.

Net investment income, net realized gains and net assets were not affected by these reclassifications.

For federal income tax purposes the following Portfolios had post-October losses incurred in the period November 1, 2004 through December 31, 2004 that they have elected to be incurred in the following fiscal year and capital loss carryforwards as of December 31, 2004. Accordingly, no capital gain distributions are expected to be paid to shareholders until future net gains have been realized in excess of such carryforwards. The approximate amounts were as follows:


	Post-October Losses				Capital Loss Carryforward
Portfolio	Currency		Capital		Capital Loss Carryforward
Large Capitalization Growth Portfolio		—		—	$	13,646,000	(a)
Large Capitalization Value Portfolio		—		—		—	(b)
Small Capitalization Growth Portfolio		—		—		45,743,000	(c)
International Equity Portfolio	$	102,000		—		30,095,000	(d)
International Bond Portfolio		3,614,000		—		—
Total Return Bond Portfolio		—	$	251,000		—
Intermediate-Term Bond Portfolio		—		1,314,000		—
Mortgage Backed Securities Portfolio		—		—		1,609,000	(e)
U.S. Government Money Market Portfolio		—		400		—

(a)	Approximately $6,916,000 expiring in 2010 and $6,730,000 expiring in 2011. Approximately $44,633,000 was used to offset net taxable gains realized in the fiscal year ended December 31, 2004.

(b)	Approximately $6,675,000 was used to offset net taxable gains realized in the fiscal year ended December 31, 2004.


122		THE TARGET PORTFOLIO TRUST

(c)	Approximately $10,360,000 expiring in 2009, $28,653,000 expiring in 2010 and $6,730,000 expiring in 2011. Approximately $8,697,000 was used to offset net taxable gains realized in the fiscal year ended December 31, 2004.

(d)	Approximately $3,060,000 expiring in 2009, $24,235,000 expiring in 2010 and $2,800,000 expiring in 2011. Approximately $20,091,000 was used to offset net taxable gains realized in the fiscal year ended December 31, 2004.

(e)	Approximately $384,000 expiring in 2008, $970,000 expiring in 2011 and $255,000 expiring in 2012.

For the year ended December 31, 2004, the tax character of distributions paid, as reflected in the Statement of Changes in Net Assets were:


Portfolio	Ordinary Income		Long-Term Capital Gain		Total Distributions
Large Capitalization Growth Portfolio	$	1,525,007		—	$	1,525,007
Large Capitalization Value Portfolio		4,679,699		—		4,679,699
Small Capitalization Value Portfolio		5,807,652	$	9,126,920		14,934,572
International Equity Portfolio		2,494,485		—		2,494,485
International Bond Portfolio		2,800,864		140,359		2,941,223
Total Return Bond Portfolio		7,451,540		1,084,263		8,535,803
Intermediate-Term Bond Portfolio		9,177,935		3,540,871		12,718,806
Mortgage Backed Securities Portfolio		4,319,318		—		4,319,318
U.S. Government Money Market Portfolio		709,120		—		709,120

For the year ended December 31, 2003, the tax character of the distributions paid, as reflected in the Statements of Changes in Net Assets were:


Portfolio	Ordinary Income		Long-Term Capital Gain		Total Distributions
Large Capitalization Value Portfolio	$	3,731,879		—	$	3,731,879
Small Capitalization Value Portfolio		3,591,404	$	3,376,742		6,968,146
International Equity Portfolio		2,118,075		—		2,118,075
International Bond Portfolio		3,416,812		24,731		3,441,543
Total Return Bond Portfolio		8,556,130		1,599,480		10,155,610
Intermediate-Term Bond Portfolio		15,975,002		650,500		16,625,502
Mortgage Backed Securities Portfolio		5,247,606		—		5,247,606
U.S. Government Money Market Portfolio		820,357		—		820,357

The tax character of distributable earnings at December 31, 2004 was:


Portfolio	Ordinary Income		Long-Term Capital Gain
Large Capitalization Growth Portfolio	$	31,245		—
Large Capitalization Value Portfolio		1,012,777	$	12,968,246
Small Capitalization Growth Portfolio		—		—
Small Capitalization Value Portfolio		235,301		2,384,848
International Equity Portfolio		1,735,093		—
International Bond Portfolio		832,554		22,759
Total Return Bond Portfolio		—		1,295,871
Intermediate-Term Bond Portfolio		334,382		100,626
Mortgage Backed Securities Portfolio		1,561		—
U.S. Government Money Market Portfolio		13,490		—


THE TARGET PORTFOLIO TRUST		123

The United States federal income tax basis and unrealized appreciation (depreciation) of the Portfolios' investments and the total net unrealized appreciation (depreciation) as of December 31, 2004, were as follows:


Portfolio	Tax Basis		Appreciation		Depreciation			Net Unrealized Appreciation of Investments		Other Cost Basis Adjustments			Total net Unrealized
Large Capitalization Growth Portfolio	$	265,729,856	$	87,550,761	$	(13,766,464	)	$	73,784,297		—		$	73,784,297
Large Capitalization Value Portfolio		296,373,700		94,056,225		(4,928,163	)		89,128,062		—			89,128,062
Small Capitalization Growth Portfolio		134,619,761		28,492,055		(4,006,902	)		24,485,153		—			24,485,153
Small Capitalization Value Portfolio		169,985,466		77,333,244		(1,534,654	)		75,798,590		—			75,798,590
International Equity Portfolio		183,858,811		45,088,978		(1,348,674	)		43,740,304	$	101,225			43,841,529
International Bond Portfolio		48,377,950		1,373,728		(39,283	)		1,334,445		86,615			1,421,060
Total Return Bond Portfolio		191,423,949		2,883,631		(1,596,137	)		1,287,494		(798,507	)		488,987
Intermediate-Term Bond Portfolio		335,006,954		5,098,716		(3,983,295	)		1,115,421		209,311			1,324,732
Mortgage Backed Securities Portfolio		107,087,088		1,612,939		(302,702	)		1,310,237		(28,194	)		1,282,043

The difference between book basis and tax basis are primarily attributable to deferred losses on wash sales, mark to market on purchased options and mark to market on passive foreign investment companies. The other cost basis adjustments are primarily attributable to appreciation (depreciation) on written options, futures, swaps, short sales, forward currency contracts and mark to market of receivable and payables.


124		THE TARGET PORTFOLIO TRUST

Note 6. Capital

The Fund has authorized an unlimited number of shares of beneficial interest at $.001 par value per share. Transactions in shares of beneficial interest during the year ended December 31, 2004 were as follows:


Portfolio	Shares Sold	Shares Issued in Reinvestment of Dividends and Distributions	Shares Reacquired		Increase/ (Decrease) in Shares Outstanding
Large Capitalization Growth Portfolio	4,993,871	99,111	(6,119,766	)	(1,026,784	)
Large Capitalization Value Portfolio	5,414,647	290,776	(4,845,605	)	859,818
Small Capitalization Growth Portfolio	3,359,377	—	(3,601,982	)	(242,605	)
Small Capitalization Value Portfolio	2,777,541	706,764	(3,212,334	)	271,971
International Equity Portfolio	4,804,787	210,635	(4,124,087	)	891,335
International Bond Portfolio	2,404,390	358,888	(1,843,995	)	919,283
Total Return Bond Portfolio	6,346,880	778,446	(5,175,584	)	1,949,742
Intermediate-Term Bond Portfolio	7,378,419	1,172,608	(11,802,265	)	(3,251,238	)
Mortgage Backed Securities Portfolio	2,296,659	369,469	(3,699,112	)	(1,032,984	)

Transactions in shares of beneficial interest during the year ended December 31, 2003 were as follows:


Portfolio	Shares Sold	Shares Issued in Reinvestment of Dividends and Distributions	Shares Reacquired		Increase/ (Decrease) in Shares Outstanding
Large Capitalization Growth Portfolio	6,953,016	—	(6,417,696	)	535,320
Large Capitalization Value Portfolio	5,785,901	268,646	(5,571,034	)	483,513
Small Capitalization Growth Portfolio	4,591,873	—	(3,951,697	)	640,176
Small Capitalization Value Portfolio	2,731,257	371,473	(3,313,238	)	(210,508	)
International Equity Portfolio	9,427,039	200,739	(8,456,409	)	1,171,369
International Bond Portfolio	3,767,332	385,003	(2,719,639	)	1,432,696
Total Return Bond Portfolio	6,974,878	915,221	(6,059,658	)	1,830,441
Intermediate-Term Bond Portfolio	13,623,787	1,495,398	(14,835,948	)	283,237
Mortgage Backed Securities Portfolio	4,746,277	443,657	(5,735,443	)	(545,509	)


THE TARGET PORTFOLIO TRUST		125

Report of Independent Registered Public Accounting Firm

The Board of Trustees and Shareholders of

The Target Portfolio Trust

We have audited the accompanying statements of assets and liabilities of The Target Portfolio Trust (comprised of Large Capitalization Growth Portfolio, Large Capitalization Value Portfolio, Small Capitalization Growth Portfolio, Small Capitalization Value Portfolio, International Equity Portfolio, International Bond Portfolio, Total Return Bond Portfolio, Intermediate-Term Bond Portfolio, Mortgage Backed Securities Portfolio, and U.S. Government Money Market Portfolio) hereafter referred to as the “Trust”, including the portfolios of investments, as of December 31, 2004, and the related statements of operations, the statements of changes in net assets, and the financial highlights for the year then ended. These financial statements and financial highlights are the responsibility of the Trust’s management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audit. The statements of changes in net assets for the year ended December 31, 2003 and the financial highlights for the periods presented through December 31, 2003, were audited by another independent registered public accounting firm, whose report dated, February 24, 2004, expressed an unqualified opinion thereon.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. Our procedures included confirmation of securities owned as of December 31, 2004, by correspondence with the custodian and brokers or by other appropriate auditing procedures where replies from brokers were not received. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of the Trust as of December 31, 2004, and the results of its operations, the changes in its net assets, and the financial highlights for the year then ended, in conformity with U.S. generally accepted accounting principles.

LOGO

KPMG LLP

New York, New York

February 24, 2005


126		THE TARGET PORTFOLIO TRUST

Federal Income Tax Information (Unaudited)

As required by the Internal Revenue Code, we wish to advise you as to the federal tax status of dividends and distributions paid by the Fund during its fiscal year ended December 31, 2004. Further, we wish to advise you of the percentage of the ordinary income dividends (excluding long-term capital gains distributions) paid in 2004 that qualify for the corporate dividends received deduction available to corporate taxpayers.

Detailed below, please find the aggregate dividends and distributions, per share, paid by each portfolio during the year ended December 31, 2004 as well as the corporate dividend received deduction percentage:


	Ordinary Dividends*
Portfolio	Income		Short-Term Capital Gains		Long-Term Capital Gains Distributions		Total Dividends and Distributions		Corporate Dividend Received Deduction
Large Capitalization Growth Portfolio	$	0.0688		—		—	$	0.0688	100.00	%
Large Capitalization Value Portfolio		0.2000		—		—		0.2000	100.00	%
Small Capitalization Value Portfolio		0.1708	$	0.3681	$	0.8459		1.3848	55.94	%
International Equity Portfolio		0.1393		—		—		0.1393	—
International Bond Portfolio		0.4798		0.0610		0.0271		0.5679	—
Total Return Bond Portfolio		0.4921		0.0128		0.0225		0.5274	—
Intermediate-Term Bond Portfolio		0.2344		0.0720		0.1214		0.4278	—
Mortgage Backed Securities Portfolio		0.4357		—		—		0.4357	—
U.S. Government Money Market Portfolio		0.0076		—		—		0.0076	—

*	For federal income tax purposes, ordinary income dividends and short-term capital gains distributions are taxable as ordinary income. Long-term capital gains distributions are taxable as capital gains income.

The International Equity Portfolio has elected to give the benefit tax credit to its shareholders. Accordingly, shareholders who must report their gross income dividends and distributions in a federal income tax return will be entitled to a foreign tax credit, or an itemized deduction in computing their U.S. income tax liability. It is generally more advantageous to claim rather than take a deduction. For the fiscal year ended December 31, 2004 the International Equity Portfolio intends on passing through $706,817 of ordinary income distributions as a foreign tax credit from recognized foreign source income of $5,405,984.

The Large Capitalization Growth Portfolio, Large Capitalization Value Portfolio, Small Capitalization Value Portfolio, and International Equity Portfolio will designate 100%, 100%, 56% and 100% of ordinary income dividends, respectively, as qualified for the reduced tax rate under The Jobs and Growth Tax Relief Reconciliation Act of 2003.

The Large Capitalization Value Portfolio utilized redemptions as distributions in the amount of $12,550,399 as long-term capital gain.


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Important Notice For Certain Shareholders (Unaudited)

Many states do not tax the portion of mutual fund dividends attributed to interest from U.S. Government obligations. Listed below is the percentage of interest earned by the following Target portfolios from U.S. Government obligations for the calendar year 2004.

To determine the amount of your dividends which may be exempt from state and local tax, simply multiply the amount in Box 1 of your 1099-Div (Ordinary Dividends) by the percentage listed below. These percentages do not apply to taxable capital gain distributions paid by the portfolios.


Portfolio*	Percentage of Interest from U.S. Government obligations
Total Return Bond Portfolio	23.87	%
Intermediate-Term Bond Portfolio	2.87
Mortgage Backed Securities Portfolio	2.06
U.S. Government Money Market Portfolio	16.61

*	Due to certain minimum portfolio holding requirements in California, Connecticut and New York, residents of those states will not be able to exclude 2004 interest income from state and local taxes.

Please consult your tax adviser or state/local authorities to properly report this information on your tax return. If you have any questions concerning the amounts listed above, please call your Wachovia Securities Financial Adviser.


128		THE TARGET PORTFOLIO TRUST

Management of the Trust (Unaudited)

Information pertaining to the Trustees of the Trust is set forth below. Trustees who are not deemed to be “interested persons” of the Trust, as defined in the Investment Company Act of 1940 (the 1940 Act), are referred to as “Independent Trustees.” Trustees who are deemed to be “Interested persons” of the Trust are referred to as “Interested Trustees.” “Fund Complex”^† consists of the Trust and any other investment companies managed by PI.

Independent Trustees²

David E.A. Carson (70), Trustee since 2003³

Oversees 92 portfolios in Fund complex

Principal occupations (last 5 years): Director (January 2000 to May 2000), Chairman (January 1999 to December 1999), Chairman and Chief Executive Officer (January 1998 to December 1998) and President, Chairman and Chief Executive Officer (1983-1997) of People’s Bank.

Other Directorships held:⁴ Director of United Illuminating and UIL Holdings (utility company), since 1993.

Robert E. La Blanc (70), Trustee since 1999³

Oversees 92 portfolios in Fund complex

Principal occupations (last 5 years): President (since 1981) of Robert E. La Blanc Associates, Inc. (telecommunications); formerly General Partner at Salomon Brothers and Vice-Chairman of Continental Telecom; Trustee of Manhattan College.

Other Directorships held:⁴ Director of Chartered Semiconductor Manufacturing, Ltd. (since 1998); Titan Corporation (electronics) (since 1995), Computer Associates International, Inc. (since 2002) (software company); FiberNet Telecom Group, Inc. (since 2003) (telecom company); Director (since April 1999) of the High Yield Plus Fund, Inc.

Douglas H. McCorkindale (65), Trustee since 1996³

Oversees 92 portfolios in Fund complex

Principal occupations (last 5 years): Chairman (since February 2001), Chief Executive Officer (since June 2000) and President (since September 1997) of Gannett Co. Inc. (publishing and media); formerly Vice Chairman (March 1984-May 2000) of Gannett Co., Inc.

Other Directorships held:⁴ Director of Gannett Co. Inc., Director of Continental Airlines, Inc. (since May 1993); Director of Lockheed Martin Corp. (aerospace and defense) (since May 2001); Director of The High Yield Plus Fund, Inc. (since 1996).

Richard A. Redeker (61), Trustee since 2003³

Oversees 91 portfolios in Fund complex

Principal occupations (last 5 years): Management Consultant; Director of Investmart, Inc. (since 2001) and Director of Penn Tank Lines, Inc. (since 1999).

Other Directorships held:⁴ None.


THE TARGET PORTFOLIO TRUST		129

Robin B. Smith (65), Trustee since 2003³

Oversees 91 portfolios in Fund complex

Principal occupations (last 5 years): Chairman of the Board (since January 2003) of Publishers Clearing House (direct marketing), formerly Chairman and Chief Executive Officer (August 1996-January 2003) of Publishers Clearing House.

Other Directorships held:⁴ Director of BellSouth Corporation (since 1992).

Stephen D. Stoneburn (61), Trustee since 2003³

Oversees 91 portfolios in Fund complex

Principal occupations (last 5 years): President and Chief Executive Officer (since June 1996) of Quadrant Media Corp. (a publishing company); formerly President (June 1995-June 1996) of Argus Integrated Media, Inc.; Senior Vice President and Managing Director (January 1993-1995) of Cowles Business Media and Senior Vice President of Fairchild Publications, Inc. (1975-1989).

Other Directorships held:⁴ None

Clay T. Whitehead (66), Trustee since 1999³

Oversees 92 portfolios in Fund complex

Principal occupations (last 5 years): President (since 1983) of National Exchange Inc. (new business development firm).

Other Directorships held:⁴ Director (since 2000) of the High Yield Plus Fund, Inc.

Interested Trustees¹

Judy A. Rice (57), President since 2003 and Trustee since 2000³

Oversees 92 portfolios in Fund complex

Principal occupations (last 5 years): President, Chief Executive Officer, Chief Operating Officer and Officer-in-Charge (since 2003) of PI; Director, Officer-in-Charge, President, Chief Executive Officer and Chief Operating Officer (since May 2003) of American Skandia Advisory Services, Inc. and American Skandia Investment Services, Inc.; Director, Officer-in-Charge, President, Chief Executive Officer (since May 2003) of American Skandia Fund Services, Inc.; Vice President (since February 1999) of Prudential Investment Management Services LLC; President, Chief Executive Officer and Officer-in-Charge (since April 2003) of Prudential Mutual Fund Services LLC; formerly various positions to Senior Vice President (1992-1999) of Prudential Securities; and various positions to Managing Director (1975-1992) of Salomon Smith Barney; Member of Board of Governors of the Money Management Institute.

Other Directorships held:⁴ None

Robert F. Gunia (58), Vice President and Trustee since 1999³

Oversees 166 portfolios in Fund complex

Principal occupations (last 5 years): Chief Administrative Officer (since June 1999) of PI; Executive Vice President and Treasurer (since January 1996) of PI; President (since April 1999) of Prudential Investment Management Services LLC (PIMS); Corporate Vice President (since September 1997) of The Prudential Insurance Company of America (Prudential); Director, Executive Vice President and Chief Administrative Officer (since May 2003) of American Skandia Investment Services, Inc., American Skandia Advisory Services, Inc. and American Skandia Fund Services, Inc.; formerly Senior Vice President (March 1987-May 1999) of Prudential Securities.


130		THE TARGET PORTFOLIO TRUST

Other Directorships held:⁴ Vice President and Director (since May 1989) and Treasurer (since 1999) of The Asia Pacific Fund, Inc.

Information pertaining to the Officers of the Fund is set forth below.

Officers²

William V. Healey (51), Chief Legal Officer since 2004³

Principal occupations (last 5 years): Vice President and Associate General Counsel (since 1998) of Prudential; Executive Vice President and Chief Legal Officer (since February 1999) of Prudential Investments LLC; Senior Vice President, Chief Legal Officer and Secretary (since December 1998) of Prudential Investment Management Services LLC; Executive Vice President and Chief Legal Officer (since February 1999) of Prudential Mutual Fund Services LLC; Vice President and Secretary (since October 1998) of Prudential Investment Management, Inc., Executive Vice President and Chief Legal Officer (since May 2003) of American Skandia Investment Services, Inc., American Skandia Fund Services, Inc. and American Skandia Advisory Services, Inc.; Director (June 1999-June 2002 and June 2003-present) of ICI Mutual Insurance Company; prior to August 1998, Associate General Counsel of the Dreyfus Corporation (Dreyfus), a subsidiary of Mellon Bank, N.A. (Mellon Bank), and an officer and/or director of various affiliates of Mellon Bank and Dreyfus; Assistant Secretary (since June 2004) of The Asia Pacific Fund, Inc.

Deborah A. Docs (47), Secretary since 2004³

Vice President and Corporate Counsel (since January 2001) of Prudential, Vice President and Assistant Secretary (since December 1996) of PI; Vice President and Assistant Secretary (since May 2003) of American Skandia Investment Services, Inc.

Lee D. Augsburger (45), Chief Compliance Officer since 2004³

Principal occupations (last 5 years): Vice President and Chief Compliance Officer (since May 2003) of PI; Vice President and Chief Compliance Officer (since October 2000) of Prudential Investment Management, Inc.; formerly Vice President and Chief Legal Officer—Annuities (August 1999-October 2000) of Prudential Insurance Company of America; Vice President and Corporate Counsel (November 1997-August 1999) of Prudential Insurance Company of America.

Maryanne Ryan (40), Anti-Money Laundering Compliance Officer since 2002³

Principal occupations (last 5 years): Vice President, Prudential (since November 1998), First Vice President, Prudential Securities (March 1997-May 1998); Anti-Money Laundering Compliance Officer (since 2003) of American Skandia Investment Services, Inc., American Skandia Advisory Services, Inc. and American Skandia Marketing, Inc.

Helene Gurian (51), Acting Anti-Money Laundering Compliance Officer since 2004³

Principal occupations (last 5 years): Vice President, Prudential (since July 1997). Vice President, Compliance (July 1997-January 2001); Vice President, Compliance and Risk Officer, Retail Distribution (January 2001-May 2002); Vice President, Corporate Investigations (May 2002-present) responsible for supervision of Prudential’s fraud investigations, anti-money laundering program and high technology investigation unit.

Grace C. Torres (45), Treasurer and Principal Financial and Accounting Officer since 1998³

Principal occupations (last 5 years): Senior Vice President (since January 2000) of PI, Senior Vice President and Assistant Treasurer (since May 2003) of American Skandia Investment Services, Inc. and American Skandia Advisory Services, Inc.; formerly First Vice President (December 1996-January 2000) of PI and First Vice President (March 1993-1999) of Prudential Securities.

“Interested” Trustee, as defined in the 1940 Act, by reason of employment with the Manager, (Prudential Investments LLC or PI), the Subadviser (Quantative Management Associates LLC or QMA) or the Distributor (Prudential Investment Management Services LLC or PIMS).

Unless otherwise noted, the address of the Trustees and Officers is c/o: Prudential Investments LLC, Gateway Center Three, 100 Mulberry Street, Newark, NJ 07102.


THE TARGET PORTFOLIO TRUST		131

There is no set term of office for Trustees and Officers. The Independent Trustees have adopted a retirement policy, which calls for the retirement of Trustees on December 31 of the year in which they reach the age of 75. The table shows the individuals length of service as Trustee and/or Officer.

⁴

This includes only directorships of companies requested to register, or file reports with the SEC under the Securities and Exchange Act of 1934 (that is, “public companies”) or other investment companies registered under the 1940 Act.

^†

The Fund Complex consists of all investment companies managed by PI. The Funds for which PI serves as manager include JennisonDryden Mutual Funds, Strategic Partners Funds, American Skandia Advisor Funds, Inc., The Prudential Variable Contract Accounts 2, 10, 11, The Target Portfolio Trust, The Prudential Series Fund, Inc., American Skandia Trust, and Prudential’s Gibraltar Fund.

Additional information about the Trust’s Trustees is included in the Trust’s Statement of Additional Information which is available without charge, upon request, by calling (800) 521-7466 or (732) 482-7555 (Calling from outside the U.S.)


132		THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

Large Capitalization Growth Portfolio

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Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	2.23	%	–9.19	%	8.97	%

	One Year		Five Years		Ten Years
Without TARGET Program Fee	3.78	%	–7.81	%	10.62	%

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retail investors is 1.50%.

The graph compares a $10,000 investment in the TARGET Large Capitalization Growth Portfolio with a similar investment in the S&P 500 Index and the Russell 1000 Growth Index by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1.50% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.25%, the average annual total return for the 10-year period would have been 9.25% and the growth of a $10,000 investment would have been $24,240. The average annual total returns in the table and the returns on investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares.


		THE TARGET PORTFOLIO TRUST

The S&P 500 Index is an index of 500 stocks of large U.S. companies. It gives a broad look at how U.S. stock prices have performed. The Russell 1000 Growth Index contains those securities in the Russell 1000 Index with a greater-than-average growth orientation. Companies in this index tend to exhibit higher price-to-book and price-to-earnings ratios, lower dividend yields, and higher forecasted growth rates. These indexes are unmanaged, and the total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in these indexes may differ substantially from the securities in the Portfolio. These indexes are not the only ones that may be used to characterize performance of large-capitalization equity funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

Large Capitalization Value Portfolio

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Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	17.10	%	7.32	%	11.02	%

	One Year		Five Years		Ten Years
Without TARGET Program Fee	18.87	%	8.94	%	12.70	%

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retail investors is 1.50%.

The graph compares a $10,000 investment in the TARGET Large Capitalization Value Portfolio with a similar investment in the S&P 500 Index and the Russell 1000 Value Index by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1.50% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.25%, the average annual total return for the 10-year period would have been 11.30% and the growth of a $10,000 investment would have been $29,197. The average annual total returns in the table and the returns on investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares.


		THE TARGET PORTFOLIO TRUST

The S&P 500 Index is an index of 500 stocks of large U.S. companies. It gives a broad look at how U.S. stock prices have performed. The Russell 1000 Value Index contains those securities in the Russell 1000 Index with a lesser-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios, higher dividend yields, and lower forecasted growth values. These indexes are unmanaged, and the total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in these indexes may differ substantially from the securities in the Portfolio. These indexes are not the only ones that may be used to characterize performance of large-capitalization equity funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

Small Capitalization Growth Portfolio

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Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	13.32	%	–4.88	%	5.53	%

	One Year		Five Years		Ten Years
Without TARGET Program Fee	15.03	%	–3.44	%	7.13	%

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retail investors is 1.50%.

The graph compares a $10,000 investment in the TARGET Small Capitalization Growth Portfolio with a similar investment in the Russell 2000 Index and the Russell 2000 Growth Index by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1.50% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.25%, the average annual total return for the 10-year period would have been 5.80% and the growth of a $10,000 investment would have been $17,582. The average annual total returns in the table and the returns on investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares.


		THE TARGET PORTFOLIO TRUST

The Russell 2000 Index is a weighted index that comprises the smallest 2,000 stocks among the largest 3,000 equity-capitalized U.S. corporations and represents approximately 10% of their aggregate market value. The Russell 2000 Growth Index comprises securities in the Russell 2000 Index with a greater-than-average growth orientation. Companies in this index tend to exhibit higher price-to-book ratios and higher forecasted growth values. These indexes are unmanaged, and the total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in these indexes may differ substantially from the securities in the Portfolio. These indexes are not the only ones that may be used to characterize performance of small-capitalization equity funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

Small Capitalization Value Portfolio

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Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	22.17	%	17.60	%	14.07	%

	One Year		Five Years		Ten Years
Without TARGET Program Fee	24.02	%	19.39	%	15.80	%

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retail investors is 1.50%.

The graph compares a $10,000 investment in the TARGET Small Capitalization Value Portfolio with a similar investment in the Russell 2000 Index and the Russell 2000 Value Index by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1.50% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.25%, the average annual total return for the 10-year period would have been 14.36% and the growth of a $10,000 investment would have been $38,302. The average annual total returns in the table and the returns on investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares.


		THE TARGET PORTFOLIO TRUST

The Russell 2000 Index is a weighted index that comprises the smallest 2,000 stocks among the largest 3,000 equity-capitalized U.S. corporations and represents approximately 10% of their aggregate market value. The Russell 2000 Value Index comprises securities in the Russell 2000 Index with a lesser-than-average growth orientation. Companies in this index tend to exhibit lower price-to-book ratios and lower forecasted growth values. These indexes are unmanaged, and the total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in these indexes may differ substantially from the securities in the Portfolio. These indexes are not the only ones that may be used to characterize performance of small-capitalization equity funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

International Equity Portfolio

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Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	13.51	%	–3.31	%	5.08	%

	One Year		Five Years		Ten Years
Without TARGET Program Fee	15.23	%	–1.85	%	6.67	%

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retail investors is 1.50%.

The graph compares a $10,000 investment in the TARGET International Equity Portfolio with a similar investment in the Morgan Stanley Capital International Europe, Australasia, Far East Index (MSCI EAFE Index) by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1.50% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.25%, the average annual total return for the 10-year period would have been 5.34% and the growth of a $10,000 investment would have been $16,831. The average annual total returns in the table and the returns on investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares.


		THE TARGET PORTFOLIO TRUST

The MSCI EAFE Index is a weighted index of performance that reflects stock price movements in Europe, Australasia, and the Far East. The MSCI EAFE Index is unmanaged, and the total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in the MSCI EAFE Index may differ substantially from the securities in the Portfolio. The MSCI EAFE Index is not the only one that may be used to characterize performance of international equity funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

International Bond Portfolio

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Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	2.67	%	3.03	%	2.45% (2.43)

	One Year		Five Years		Ten Years
Without TARGET Program Fee	3.71	%	4.06	%	3.48% (3.46)

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retirement accounts is 1.35%.

The graph compares a $10,000 investment in the TARGET International Bond Portfolio with a similar investment in the Citigroup Non-U.S. World Government Bond Index–Hedged (Citigroup Non-U.S. WGBI–Hedged) and the Citigroup Non-U.S. World Government Bond Index–Unhedged (Citigroup Non-U.S. WGBI–Unhedged) by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.35%, the average annual total return for the 10-year period would have been 2.09% and the growth of a $10,000 investment would have been $12,298. The average annual total returns in the table and the returns on


		THE TARGET PORTFOLIO TRUST

investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares. Without waiver of fees and/or expense subsidization, the Portfolio’s returns would have been lower, as indicated in parentheses.

The Citigroup Non-U.S. WGBI–Hedged is an unmanaged index of approximately 600 high-quality bonds with foreign currency exposure translated to the U.S. dollar. The Citigroup Non-U.S. WGBI–Unhedged is an unmanaged index of approximately 600 high-quality bonds issued in several different currencies. It gives a broad look at how foreign bonds have performed. The indexes’ total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in the indexes may differ substantially from the securities in the Portfolio. These indexes are not the only ones that may be used to characterize performance of international bond funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

Total Return Bond Portfolio

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Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	3.69	%	6.87	%	6.95	%

	One Year		Five Years		Ten Years
Without TARGET Program Fee	4.73	%	7.95	%	8.02	%

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retirement accounts is 1.35%.

The graph compares a $10,000 investment in the TARGET Total Return Bond Portfolio with a similar investment in the Lehman Brothers U.S. Aggregate Bond Index and the Lehman Brothers Government/Credit (Govt/Credit Bond) Index by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.35%, the average annual total return for the 10-year period would have been 5.75% and the growth of a $10,000 investment would have been $17,491. The average annual total returns in the table and the returns on investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares.


		THE TARGET PORTFOLIO TRUST

The Lehman Brothers U.S. Aggregate Bond Index is an unmanaged index of investment-grade securities issued by the U.S. government and its agencies and by corporations with between 1 and 10 years remaining to maturity. It gives a broad look at how bond prices of short- and intermediate-term bonds have performed. The Lehman Brothers Govt/Credit Bond Index is an index of publicly traded intermediate- and long-term government and corporate debt with an average maturity of 10 years. It gives a broad look at how bonds have performed. These indexes are unmanaged, and the total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in these indexes may differ substantially from the securities in the Portfolio. These indexes are not the only ones that may be used to characterize performance of bond funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

Intermediate-Term Bond Portfolio

LOGO


Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	2.16	%	5.83	%	6.22	%

	One Year		Five Years		Ten Years
Without TARGET Program Fee	3.19	%	6.89	%	7.29	%

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retirement accounts is 1.35%.

The graph compares a $10,000 investment in the TARGET Intermediate-Term Bond Portfolio with a similar investment in the Lehman Brothers Intermediate Government/Credit Bond Index (formerly Lehman Brothers Int. Govt/Credit Bond Index) by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.35%, the average annual total return for the 10-year period would have been 5.85% and the growth of a $10,000 investment would have been $17,665. The average annual total returns in the table and the returns on investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares.


		THE TARGET PORTFOLIO TRUST

The Lehman Brothers Intermediate Government/Credit Bond Index is a weighted index comprising securities issued by the U.S. government and its agencies and securities publicly issued by corporations with 1 to 10 years remaining to maturity and rated investment grade. The Lehman Brothers Intermediate Government/Credit Bond Index is unmanaged, and the total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in the Lehman Brothers Intermediate Government/Credit Bond Index may differ substantially from the securities in the Portfolio. The Lehman Brothers Intermediate Government/Credit Bond Index is not the only one that may be used to characterize performance of bond funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

Growth of a $10,000 Investment

Mortgage Backed Securities Portfolio

LOGO


Average Annual Total Returns as of 12/31/04
	One Year		Five Years		Ten Years
With TARGET Program Fee	2.64	%	5.33	%	5.92% (5.91)

	One Year		Five Years		Ten Years
Without TARGET Program Fee	3.68	%	6.39	%	6.98% (6.97)

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. The returns in the graph and the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. An investor may obtain performance data current to the most recent month-end by visiting our website at www.prudential.com or by calling (800) 225-1852. The maximum TARGET program fee for retirement accounts is 1.35%.

The graph compares a $10,000 investment in the TARGET Mortgage Backed Securities Portfolio with a similar investment in the Lehman Brothers Mortgage-Backed Securities Index and the Citigroup Mortgage-Backed Securities Index by portraying the initial account values at the beginning of the 10-year period (December 31, 1994) and the account values at the end of the current fiscal year (December 31, 2004), as measured on a quarterly basis. The graph takes into account the maximum quarterly TARGET program fee of 1% annually for retail investors. For individual retirement plans and qualified employee benefit plans, taking into account the maximum TARGET program fee of 1.35%, the average annual total return for the 10-year period would have been 5.55% and the growth of a $10,000 investment would have been $17,170. The average annual total returns in the table and the returns on investment in the graph do not reflect the deduction of taxes that a shareholder would pay on Portfolio distributions or following the redemption of Portfolio shares. Without waiver of


		THE TARGET PORTFOLIO TRUST

management fees and/or expense subsidizations, the Portfolio’s average annual total returns would have been lower, as indicated in parentheses.

The Lehman Brothers Mortgage-Backed Securities Index is a market capitalization-weighted index of 15-year and 30-year fixed-rate securities backed by the mortgage pools of the GNMA, the FNMA, and the FHLMC, and balloon mortgages with fixed-rate coupons. The Citigroup Mortgage-Backed Securities Index is an index of 30- and 15-year mortgage-related securities issued by U.S. government agencies. It gives a broad look at how mortgage-backed securities have performed. These indexes are unmanaged, and the total returns include the reinvestment of all dividends, but do not include the effect of sales charges, operating expenses, or taxes. These returns would be lower if they included the effect of sales charges, operating expenses, or taxes. The securities in these indexes may differ substantially from the securities in the Portfolio. These indexes are not the only ones that may be used to characterize performance of bond funds, and other indexes may portray different comparative performance. Investors cannot invest directly in an index.


THE TARGET PORTFOLIO TRUST

ⁿ MAIL

ⁿ TELEPHONE

Gateway Center Three

100 Mulberry Street

Newark, NJ 07102

(800) 225-1852

PROXY VOTING

The Board of Trustees of The TARGET Portfolio Trust has delegated to the Trust’s investment advisers the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Trust. 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 Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2004, is available on the Trust’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 •
Deborah A. Docs, Secretary • Maryanne Ryan, Anti-Money Laundering Officer •
Helene Gurian, Acting 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 ADVISERS	Columbus Circle Investors LLC	Metro Center One Station Place Stamford, CT 06902

	EARNEST Partners, LLC	75 14th Street Suite 2300 Atlanta, GA 30309

	Hotchkis and Wiley Capital Management, LLC	725 S. Figueroa Street Suite 3900 Los Angeles, CA 90017

	J.P. Morgan Investment Management Inc.	522 Fifth Avenue New York, NY 10036

	Lazard Asset Management LLC	30 Rockefeller Plaza New York, NY 10112

	NFJ Investment Group L.P.	2121 San Jacinto Suite 1840 Dallas, TX 75201


	Oak Associates, Ltd.	3875 Embassy Parkway Suite 250 Akron, OH 44333

	Pacific Investment Management Company LLC	840 Newport Center Drive Newport Beach, CA 92660

	RS Investment Management, L.P.	388 Market Street Suite 1700 San Francisco, CA 94111

	Wellington Management Company, LLP	75 State Street Boston, MA 02109

	Westcap Investors, LLC	11111 Santa Monica Boulevard Suite 820 Los Angeles, CA 90025

DISTRIBUTOR	Prudential Investment Management Services LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102

CUSTODIAN	The Bank of New York	One Wall Street New York, NY 10286

TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 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

The TARGET Portfolio Trust

NASDAQ

CUSIP

NASDAQ

CUSIP

Large Capitalization Growth

TALGX

875921207

Large Capitalization Value

TALVX

875921108

Small Capitalization Growth

TASGX

875921405

Small Capitalization Value

TASVX

875921306

International Equity

TAIEX

875921504

International Bond

TIBPX

875921876

Total Return Bond

TATBX

875921884

Intermediate-Term Bond

TAIBX

875921801

Mortgage Backed Securities

TGMBX

875921702

U.S. Government Money Market

PUGXX

875921603

An investor should consider the investment objectives, risks, charges and expenses of a Portfolio carefully before investing. The prospectuses for the Portfolios contain this and other information about the Portfolios. An investor may obtain a prospectus by visiting our website at www.prudential.com or by calling (800) 225-1852. The prospectus should be read carefully before investing.

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 Trust’s portfolios’ securities are for the period covered by this report and are subject to change thereafter.

E-DELIVERY

To receive your mutual fund documents on-line, go to www.icsdelivery.com/prudential/funds and enroll. Instead of receiving printed documents by mail, you will receive notification via e-mail when new materials are available. You can cancel your enrollment or change your e-mail address at any time by clicking on the change/cancel enrollment option at the icsdelivery

website address.

SHAREHOLDER COMMUNICATIONS WITH TRUSTEES

Shareholders of the Trust can communicate directly with the Board of Trustees by writing to the Chair of the Board, The TARGET Portfolio Trust, PO Box 13964, Philadelphia, PA 19176. Shareholders can communicate directly with an individual Trustee by writing to that Trustee at The TARGET Portfolio Trust, 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 Trust 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 Trust Forms N-Q are available on the Commission’s website at http://www.sec.gov. The Trust 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 (800) SEC-0330 (732-0330). The Trust will provide a full list of its portfolio holdings as of the end of each fiscal quarter on its website at www.prudential.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

LOGO

The TARGET Portfolio Trust

NASDAQ

CUSIP

NASDAQ

CUSIP

Large Capitalization Growth

TALGX

875921207

Large Capitalization Value

TALVX

875921108

Small Capitalization Growth

TASGX

875921405

Small Capitalization Value

TASVX

875921306

International Equity

TAIEX

875921504

International Bond

TIBPX

875921876

Total Return Bond

TATBX

875921884

Intermediate-Term Bond

TAIBX

875921801

Mortgage Backed Securities

TGMBX

875921702

U.S. Govt Money Market

PUGXX

875921603

TMF158E IFS-A100968 Ed. 02/2005

Item 2 – Code of Ethics — See Exhibit (a)

As of the end of the period covered by this report, the registrant has adopted a code of ethics (the “Section 406 Standards for Investment Companies – Ethical Standards for Principal Executive and Financial Officers”) that applies to the registrant’s Principal Executive Officer and Principal Financial Officer; the registrant’s Principal Financial Officer also serves as the Principal Accounting Officer.

The registrant hereby undertakes to provide any person, without charge, upon request, a copy of the code of ethics. To request a copy of the code of ethics, contact the registrant 973-367-7521, and ask for a copy of the Section 406 Standards for Investment Companies - Ethical Standards for Principal Executive and Financial Officers.

Item 3 – Audit Committee Financial Expert –

The registrant’s Board has determined that Mr. David Carson, member of the Board’s Audit Committee is an “audit committee financial expert,” and that he is “independent,” for purposes of this Item.

Item 4 – Principal Accountant Fees and Services –

(a) Audit Fees

For the fiscal year ended December 31, 2004, KPMG LLP (“KPMG”), the Registrant’s principal accountant, billed the Registrant $196,200 for professional services rendered for the audit of the Registrant’s annual financial statements or services that are normally provided in connection with statutory and regulatory filings. KPMG did not serve as the Registrant’s principal accountant during fiscal year ended December 31, 2003, so no information for that fiscal year is provided.

(b) Audit-Related Fees

None.

(d) All Other Fees

None.

(e) (1) Audit Committee Pre-Approval Policies and Procedures

THE PRUDENTIAL MUTUAL FUNDS

AUDIT COMMITTEE POLICY

Pre-Approval of Services Provided by the Independent Accountants

The Audit Committee of each Prudential Mutual Fund is charged with the responsibility to monitor the independence of the Fund’s independent accountants. As part of this responsibility, the Audit Committee must pre-approve any independent accounting firm’s engagement to render audit and/or permissible non-audit services, as required by law. In evaluating a proposed engagement of the independent accountants, the Audit Committee will assess the effect that the engagement might reasonably be expected to have on the accountant’s independence. The Committee’s evaluation will be based on:

•

a review of the nature of the professional services expected to be provided,

•

a review of the safeguards put into place by the accounting firm to safeguard independence, and

•

periodic meetings with the accounting firm.

Policy for Audit and Non-Audit Services Provided to the Funds

On an annual basis, the scope of audits for each Fund, audit fees and expenses, and audit-related and non-audit services (and fees proposed in respect thereof) proposed to be performed by the Fund’s independent accountants will be presented by the Treasurer and the independent accountants to the Audit Committee for review and, as appropriate, approval prior to the initiation of such services. Such presentation shall be accompanied by confirmation by both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants. Proposed services shall be described in sufficient detail to enable the Audit Committee to assess the appropriateness of such services and fees, and the compatibility of the provision of such services with the auditor’s independence. The Committee shall receive periodic reports on the progress of the audit and other services which are approved by the Committee or by the Committee Chair pursuant to authority delegated in this Policy.

The categories of services enumerated under “Audit Services”, “Audit-related Services”, and “Tax Services” are intended to provide guidance to the Treasurer and the independent accountants as to those categories of services which the Committee believes are generally consistent with the independence of the independent accountants and which the Committee (or the Committee Chair) would expect upon the presentation of specific proposals to pre-approve. The enumerated categories are not intended as an exclusive list of audit, audit-related or tax services which the Committee (or the Committee Chair) would consider for pre-approval.

Audit Services

The following categories of audit services are considered to be consistent with the role of the Fund’s independent accountants:

•

Annual Fund financial statement audits

•

Seed audits (related to new product filings, as required)

•

SEC and regulatory filings and consents

Audit-related Services

The following categories of audit-related services are considered to be consistent with the role of the Fund’s independent accountants:

•

Accounting consultations

•

Fund merger support services

•

Agreed Upon Procedure Reports

•

Attestation Reports

•

Other Internal Control Reports

Individual audit-related services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $50,000.

Tax Services

The following categories of tax services are considered to be consistent with the role of the Fund’s independent accountants:

•

Tax compliance services related to the filing or amendment of the following:

•

Federal, state and local income tax compliance; and,

•

Sales and use tax compliance

•

Timely RIC qualification reviews

•

Tax distribution analysis and planning

•

Tax authority examination services

•

Tax appeals support services

•

Accounting methods studies

•

Fund merger support services

•

Tax consulting services and related projects

Individual tax services that fall within one of these categories and are not presented to the Audit Committee as part of the annual pre-approval process will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $50,000.

Other Non-audit Services

Certain non-audit services that the independent accountants are legally permitted to render will be subject to pre-approval by the Committee or by one or more Committee members to whom the Committee has delegated this authority and who will report to the full Committee any pre-approval decisions made pursuant to this Policy. Non-audit services presented for pre-approval

pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.

Proscribed Services

The Fund’s independent accountants will not render services in the following categories of non-audit services:

•

Bookkeeping or other services related to the accounting records or financial statements of the Fund

•

Financial information systems design and implementation

•

Appraisal or valuation services, fairness opinions, or contribution-in-kind reports

•

Actuarial services

•

Internal audit outsourcing services

•

Management functions or human resources

•

Broker or dealer, investment adviser, or investment banking services

•

Legal services and expert services unrelated to the audit

•

Any other service that the Public Company Accounting Oversight Board determines, by regulation, is impermissible.

Pre-approval of Non-Audit Services Provided to Other Entities Within the Prudential Fund Complex

Certain non-audit services provided to Prudential Investments LLC or any of its affiliates that also provide ongoing services to the Prudential Mutual Funds will be subject to pre-approval by the Audit Committee. The only non-audit services provided to these entities that will require pre-approval are those related directly to the operations and financial reporting of the Funds. Individual projects that are not presented to the Audit Committee as part of the annual pre-approval process, will be subject to pre-approval by the Committee Chair (or any other Committee member on whom this responsibility has been delegated) so long as the estimated fee for those services does not exceed $50,000. Services presented for pre-approval pursuant to this paragraph will be accompanied by a confirmation from both the Treasurer and the independent accountants that the proposed services will not adversely affect the independence of the independent accountants.

Although the Audit Committee will not pre-approve all services provided to Prudential Investments LLC and its affiliates, the Committee will receive an annual report from the Fund’s independent accounting firm showing the aggregate fees for all services provided to Prudential Investments and its affiliates.

(e) (2) Percentage of services referred to in 4(b)- (4)(d) that were approved by the audit committee –

Not applicable.

(f) Percentage of hours expended attributable to work performed by other than full time employees of principal accountant if greater than 50%.

Not applicable.

(g) Non-Audit Fees

Not applicable to Registrant. The aggregate non-audit fees billed by KPMG for services rendered to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant for the last fiscal year 2004 was $33,500. KPMG did not serve as the Registrant’s principal accountant during fiscal year 2003, so no information for that fiscal year is provided.

(h) Principal Accountants Independence

Not applicable as KPMG has not provided non-audit services to the registrant’s investment adviser and any entity controlling, controlled by, or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to Rule 2-01(c)(7)(ii) of Regulation S-X.

Item 5 – Audit Committee of Listed Registrants – Not applicable.

Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

Item 7 – Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.

Item 8 – Portfolio Managers of Closed-End Management Investment Companies – Not applicable.

Item 9 – Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.

Item 10 – Submission of Matters to a Vote of Security Holders:

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 Trust’s website at www.strategicpartners.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 The Target Portfolio Trust, 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 Trust 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 Trust 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 Trust’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 Trust’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 Trust can communicate directly with the Board of Trustees by writing to the Chair of the Board, The Target Portfolio Trust, P.O. Box 13964, Philadelphia, PA 19176. Shareholders can communicate directly with an individual Trustee by writing to that director at The Target Portfolio Trust, 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 11 – Controls and Procedures

(a)

It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

(b)

There 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 12 – Exhibits

(a)

Code of Ethics – Attached hereto

(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) The Target Portfolio Trust

By (Signature and Title)*		/s/ DEBORAH A. DOCS
		Deborah A. Docs
		Secretary

Date February 23, 2005

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 February 23, 2005

By (Signature and Title)*		/s/ GRACE C. TORRES
		Grace C. Torres
		Treasurer and Principal Financial Officer

Date February 23, 2005

^*	Print the name and title of each signing officer under his or her signature.

Target Portfolio Trust N-CSRCertified annual shareholder report (management investment company)