Prudential Jennison Small Company Fund, Inc.

N-CSRS 1 d910474dncsrs.htm PRUDENTIAL JENNISON SMALL COMPANY FUND, INC. Prudential Jennison Small Company Fund, Inc.

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:		811-03084

Exact name of registrant as specified in charter:		Prudential Jennison Small Company Fund, Inc.

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

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

Registrant’s telephone number, including area code:		800-225-1852

Date of fiscal year end:		9/30/2015

Date of reporting period:		3/31/2015

Item 1 – Reports to Stockholders

LOGO

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

PRUDENTIAL JENNISON SMALL COMPANY FUND, INC.

SEMIANNUAL REPORT ^· MARCH 31, 2015

Objective

Capital growth

This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus.

The views expressed in this report and information about the Fund’s portfolio holdings are for the period covered by this report and are subject to change thereafter.

The accompanying financial statements as of March 31, 2015, were not audited and, accordingly, no auditor’s opinion is expressed on them.

Mutual funds are distributed by Prudential Investment Management Services LLC (PIMS). Jennison Associates is a registered investment adviser. Both are Prudential Financial companies. ^© 2015 Prudential Financial, Inc. and its related entities. Prudential Investments LLC, Prudential, Jennison Associates, Jennison, the Prudential logo, Bring Your Challenges, and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

May 15, 2015

Dear Shareholder:

We hope you find the semiannual report for the Prudential Jennison Small Company Fund, Inc., informative and useful. The report covers performance for the six-month period that ended March 31, 2015.

Since market conditions change over time, we believe it is important to maintain a diversified portfolio of funds consistent with your tolerance for risk, time horizon, and financial goals.

Your financial advisor can help you create a diversified investment plan that may include funds covering all the basic asset classes and that reflects your personal investor profile and risk tolerance. Keep in mind, however, that diversification and asset allocation strategies do not assure a profit or protect against loss in declining markets.

Prudential Investments^® is dedicated to helping you solve your toughest investment challenges—whether it’s capital growth, reliable income, or protection from market volatility and other risks. We offer the expertise of Prudential Financial’s affiliated asset managers that strive to be leaders in a broad range of funds to help you stay on course to the future you envision. They also manage money for major corporations and pension funds around the world, which means you benefit from the same expertise, innovation, and attention to risk demanded by today’s most sophisticated investors.

Thank you for choosing the Prudential Investments family of funds.

Sincerely,

LOGO

Stuart S. Parker, President

Prudential Jennison Small Company Fund, Inc.


Prudential Jennison Small Company Fund, Inc.			1

Your Fund’s Performance (Unaudited)

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852.


Cumulative Total Returns (Without Sales Charges) as of 3/31/15
	Six Months			One Year			Five Years			Ten Years			Since Inception
Class A		10.94	%		11.42	%		97.60	%		163.12	%	—
Class B		10.57			10.69			90.88			142.77		—
Class C		10.52			10.63			90.74			144.37		—
Class Q		11.21			12.01			N/A			N/A		81.29% (11/29/10)
Class R		10.76			11.12			95.53			156.71		—
Class Z		11.01			11.69			100.13			168.99		—
Russell 2500^™ Index		12.29			10.07			105.38			150.45		—
S&P SmallCap 600 Index		14.20			8.72			112.32			151.88		—
Lipper Small-Cap Core Funds Average		11.18			6.33			89.84			125.86		—

Average Annual Total Returns (With Sales Charges) as of 3/31/15
				One Year			Five Years			Ten Years			Since Inception
Class A					5.29	%		13.30	%		9.54	%	—
Class B					6.26			13.68			9.27		—
Class C					9.74			13.79			9.35		—
Class Q					12.01			N/A			N/A		14.70% (11/29/10)
Class R					11.12			14.35			9.89		—
Class Z					11.69			14.88			10.40		—
Russell 2500 Index					10.07			15.48			9.62		—
S&P SmallCap 600 Index					8.72			16.25			9.68		—
Lipper Small-Cap Core Funds Average					6.33			13.56			8.41		—

Source: Prudential Investments LLC and Lipper Inc.

Inception returns are provided for any share class with less than 10 calendar years of returns.


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The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. The average annual total returns take into account applicable sales charges, which are described for each share class in the table below.

Class A

Class B*

Class C

Class Q

Class R

Class Z

Maximum initial sales charge

5.50% of
the public
offering
price

None

Contingent Deferred Sales Charge (CDSC) (as a percentage of the lower of original purchase price or sale proceeds)

1% on sales
of $1 million
or more
made within
12 months of
purchase

5% (Yr.1)
4% (Yr.2)
3% (Yr.3)
2% (Yr.4)
1% (Yr.5)
1% (Yr.6)
0% (Yr.7)

1% on sales
made within
12 months
of purchase

None

Annual distribution and service (12b-1) fees (shown as a percentage of average daily net assets)

.30%

None

.75%
(.50%
currently)

None

*Class B shares are closed to all purchase activity and no additional Class B shares may be purchased or acquired except by exchange from Class B shares of another Fund or through dividend or capital gains reinvestment.

Benchmark Definitions

Russell 2500 Index

The Russell 2500 Index is an unmanaged index which measures the performance of the 2,500 smallest companies in the Russell 3000 Index, which represents approximately 20% of the total market capitalization of the Russell 3000 Index. The cumulative total return for the Russell 2500 Index measured from the month-end closest to inception date for Class Q shares through 3/31/15 is 90.45%. The average annual total return for the Russell 2500 Index measured from the month-end closest to the inception date for Class Q shares through 3/31/15 is 16.03%.

S&P SmallCap 600 Index

The Standard & Poor’s SmallCap 600 Index (S&P SmallCap 600 Index) is an unmanaged, capital-weighted index of 600 smaller-company U.S. common stocks that cover all industry sectors. The cumulative total return for the S&P SmallCap 600 Index measured from the month-end closest to inception date for Class Q shares through 3/31/15 is 96.55%. The average annual total return for the S&P SmallCap 600 Index measured from the month-end closest to the inception date for Class Q shares through 3/31/15 is 16.88%.

Lipper Small-Cap Core Funds Average

The Lipper Small-Cap Core Funds Average (Lipper Average) represents returns based on the average return of all funds in the Lipper Small-Cap Core Funds category for the periods noted. Funds in the Lipper Small-Cap Core Funds category 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 typically have an average


Prudential Jennison Small Company Fund, Inc.			3

Your Fund’s Performance (continued)

price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value compared with the S&P SmallCap 600 Index. The cumulative total return for the Lipper Average measured from the month-end closest to inception date for Class Q shares through 3/31/15 is 75.85%. The average annual total return for the Lipper Average measured from the month-end closest to the inception date for Class Q shares through 3/31/15 is 13.80%.

Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes. The Since Inception returns for the Indexes and Lipper Average are measured from the closest month-end to the inception date for Class Q shares, and not from the Class’s actual inception date.


Five Largest Holdings expressed as a percentage of net assets as of 3/31/15
Spirit Airlines, Inc., Airlines	2.3	%
East West Bancorp, Inc., Banks	2.3
Mattress Firm Holding Corp., Specialty Retail	2.2
SolarWinds, Inc., Software	2.1
Vail Resorts, Inc., Hotels, Restaurants & Leisure	1.9

Holdings reflect only long-term investments and are subject to change.


Five Largest Industries expressed as a percentage of net assets as of 3/31/15
Banks	11.1	%
Real Estate Investment Trusts (REITs)	7.2
Specialty Retail	6.2
Health Care Providers & Services	6.0
Insurance	5.5

Industry weightings reflect only long-term investments and are subject to change.


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Fees and Expenses (Unaudited)

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments and redemptions, as applicable, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees, and other Fund expenses, as applicable. This example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The example is based on an investment of $1,000 invested on October 1, 2014, at the beginning of the period, and held through the six-month period ended March 31, 2015. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

Actual Expenses

The first line for each share class in the table on the following page provides information about actual account values and actual expenses. You may use the information on this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value ÷ $1,000 = 8.6), then multiply the result by the number on the first line under the heading “Expenses Paid During the Six-Month Period” to estimate the expenses you paid on your account during this period.

Hypothetical Example for Comparison Purposes

The second line for each share class in the table on the following page provides information about hypothetical account values and hypothetical expenses based on the Fund’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.

The Fund’s transfer agent may charge additional fees to holders of certain accounts that are not included in the expenses shown in the table on the following page. These fees apply to individual retirement accounts (IRAs) and Section 403(b) accounts. As of the close of the six-month period covered by the table, IRA fees included an annual maintenance fee of $15 per account (subject to a maximum annual maintenance fee of $25 for all accounts held by the same shareholder). Section 403(b) accounts are charged an annual $25 fiduciary maintenance fee. Some of the fees may vary in amount, or may be waived, based on your total account balance or the number of


Prudential Jennison Small Company Fund, Inc.			5

Fees and Expenses (continued)

Prudential Investments 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.

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.


Prudential Jennison Small Company Fund, Inc.		Beginning Account Value October 1, 2014		Ending Account Value March 31, 2015		Annualized Expense Ratio Based on the Six-Month Period			Expenses Paid During the Six-Month Period*

Class A	Actual	$	1,000.00	$	1,109.40		1.14	%	$	6.00
	Hypothetical	$	1,000.00	$	1,019.25		1.14	%	$	5.74

Class B	Actual	$	1,000.00	$	1,105.70		1.84	%	$	9.66
	Hypothetical	$	1,000.00	$	1,015.76		1.84	%	$	9.25

Class C	Actual	$	1,000.00	$	1,105.20		1.84	%	$	9.66
	Hypothetical	$	1,000.00	$	1,015.76		1.84	%	$	9.25

Class Q	Actual	$	1,000.00	$	1,112.10		0.70	%	$	3.69
	Hypothetical	$	1,000.00	$	1,021.44		0.70	%	$	3.53

Class R	Actual	$	1,000.00	$	1,107.60		1.34	%	$	7.04
	Hypothetical	$	1,000.00	$	1,018.25		1.34	%	$	6.74

Class Z	Actual	$	1,000.00	$	1,110.10		0.84	%	$	4.42
	Hypothetical	$	1,000.00	$	1,020.74		0.84	%	$	4.23

*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 182 days in the six-month period ended March 31, 2015, and divided by the 365 days in the Fund’s fiscal year ending September 30, 2015 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.


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The Fund’s annual expense ratios for the six-month period ended March 31, 2015, are as follows:


Class	Gross Operating Expenses			Net Operating Expenses
A		1.14	%		1.14	%
B		1.84			1.84
C		1.84			1.84
Q		0.70			0.70
R		1.59			1.34
Z		0.84			0.84

Net operating expenses shown above reflect any fee waivers and/or expense reimbursements. Additional information on Fund expenses and any fee waivers and/or expense reimbursements can be found in the “Financial Highlights” tables in this report and in the Notes to the Financial Statements in this report.


Prudential Jennison Small Company Fund, Inc.			7

Portfolio of Investments

as of March 31, 2015 (Unaudited)


Description	Shares		Value (Note 1)
LONG-TERM INVESTMENTS 95.9%

COMMON STOCKS

Aerospace & Defense 0.6%
Curtiss-Wright Corp.		303,005	$	22,404,190

Airlines 2.3%
Spirit Airlines, Inc.*		1,051,812		81,368,176

Banks 11.1%
Bank of the Ozarks, Inc.		1,125,909		41,579,819
BankUnited, Inc.		1,083,971		35,489,211
BOK Financial Corp.(a)		374,913		22,952,174
Columbia Banking System, Inc.		1,289,570		37,358,843
East West Bancorp, Inc.		1,980,810		80,143,573
First Republic Bank		763,139		43,567,605
Investors Bancorp, Inc.		1,546,437		18,124,242
Pinnacle Financial Partners, Inc.		720,313		32,025,116
Signature Bank*		440,791		57,117,698
Wintrust Financial Corp.		479,461		22,860,700

				391,218,981

Biotechnology 4.6%
ACADIA Pharmaceuticals, Inc.*(a)		826,620		26,939,546
Flexion Therapeutics, Inc.*		485,322		10,929,451
KYTHERA Biopharmaceuticals, Inc.*(a)		1,039,343		52,123,052
Otonomy, Inc.*		379,291		13,411,730
OvaScience, Inc.*(a)		403,888		14,027,030
Receptos, Inc.*		192,389		31,723,022
Zafgen, Inc.*(a)		334,007		13,230,017

				162,383,848

Capital Markets 1.1%
Artisan Partners Asset Management, Inc. (Class A Stock)		338,288		15,378,572
Moelis & Co. (Class A Stock)		753,506		22,695,601

				38,074,173

Chemicals 0.5%
PolyOne Corp.		465,651		17,392,065

Commercial Services & Supplies 2.6%
Mobile Mini, Inc.		1,460,092		62,258,323

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			9

Portfolio of Investments

as of March 31, 2015 (Unaudited) continued


Description	Shares		Value (Note 1)
COMMON STOCKS (Continued)

Commercial Services & Supplies (cont’d.)
West Corp.		811,712	$	27,379,046

				89,637,369

Construction & Engineering 0.5%
Great Lakes Dredge & Dock Corp.*		3,193,969		19,195,754

Construction Materials 0.2%
Summit Materials, Inc. (Class A Stock)*		309,181		6,848,359

Diversified Consumer Services 0.5%
Houghton Mifflin Harcourt Co.*		819,889		19,250,994

Diversified Telecommunication Services 1.2%
Cogent Communications Holdings, Inc.		294,818		10,415,920
Frontier Communications Corp.		4,270,130		30,104,416
ORBCOMM, Inc.*		144,313		861,549

				41,381,885

Electric Utilities 1.7%
NRG Yield, Inc. (Class A Stock)(a)		506,335		25,686,374
Portland General Electric Co.		447,020		16,579,972
Westar Energy, Inc.(a)		430,221		16,675,366

				58,941,712

Electrical Equipment 0.4%
Polypore International, Inc.*		267,289		15,743,322

Electronic Equipment, Instruments & Components 1.4%
Anixter International, Inc.*		327,372		24,922,830
CDW Corp.		281,625		10,487,715
FEI Co.		159,013		12,139,053

				47,549,598

Energy Equipment & Services 1.0%
Dril-Quip, Inc.*		378,324		25,873,578
Superior Energy Services, Inc.		405,965		9,069,258

				34,942,836

Food & Staples Retailing 1.9%
Fresh Market, Inc. (The)*(a)		394,632		16,037,844

See Notes to Financial Statements.


10


Description	Shares		Value (Note 1)
COMMON STOCKS (Continued)

Food & Staples Retailing (cont’d.)
Sprouts Farmers Market, Inc.*(a)		1,438,878	$	50,691,672

				66,729,516

Food Products 3.4%
Adecoagro SA (Luxembourg)*		2,964,635		30,298,570
Darling Ingredients, Inc.*		1,350,618		18,922,158
Hain Celestial Group, Inc. (The)*		496,175		31,780,009
SunOpta, Inc. (Canada)*		14,772		156,879
TreeHouse Foods, Inc.*		449,579		38,223,206

				119,380,822

Health Care Equipment & Supplies 0.4%
Nevro Corp.*		49,926		2,392,953
Spectranetics Corp. (The)*(a)		325,720		11,322,027

				13,714,980

Health Care Providers & Services 6.0%
Air Methods Corp.*(a)		851,472		39,670,081
Amsurg Corp.*		570,110		35,073,167
Centene Corp.*		562,085		39,733,789
Envision Healthcare Holdings, Inc.*		568,975		21,820,191
Healthways, Inc.*(a)		656,432		12,931,710
Molina Healthcare, Inc.*		543,011		36,539,210
Premier, Inc. (Class A Stock)*		192,857		7,247,566
Team Health Holdings, Inc.*		288,259		16,866,034

				209,881,748

Hotels, Restaurants & Leisure 3.8%
Del Frisco’s Restaurant Group, Inc.*		910,243		18,341,396
Extended Stay America, Inc.(a)		208,386		4,069,779
Pinnacle Entertainment, Inc.*		1,249,372		45,089,836
Vail Resorts, Inc.		642,503		66,447,660

				133,948,671

Insurance 5.5%
Symetra Financial Corp.		2,312,123		54,242,406
Validus Holdings Ltd.		417,942		17,595,358
W.R. Berkley Corp.		1,204,524		60,840,507
White Mountains Insurance Group Ltd.		86,860		59,457,407

				192,135,678

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			11

Portfolio of Investments

as of March 31, 2015 (Unaudited) continued


Description	Shares		Value (Note 1)
COMMON STOCKS (Continued)

Internet & Catalog Retail 0.5%
Wayfair, Inc. (Class A Stock)*(a)		595,689	$	19,133,531

Internet Software & Services 1.0%
Cornerstone OnDemand, Inc.*(a)		534,862		15,452,163
Dealertrack Technologies, Inc.*(a)		432,072		16,643,413
LendingClub Corp.*(a)		71,318		1,401,399

				33,496,975

IT Services 3.3%
Global Payments, Inc.		639,487		58,628,168
Vantiv, Inc. (Class A Stock)*		1,532,903		57,790,443

				116,418,611

Life Sciences Tools & Services 1.1%
Fluidigm Corp.*(a)		960,496		40,436,882

Machinery 1.9%
CIRCOR International, Inc.		126,706		6,930,818
NN, Inc.		747,206		18,739,927
Rexnord Corp.*		1,000,615		26,706,414
Terex Corp.		174,466		4,639,051
WABCO Holdings, Inc.*		66,033		8,114,135

				65,130,345

Media 1.8%
Cinemark Holdings, Inc.		1,420,060		64,002,104

Metals & Mining 0.9%
Constellium NV (Netherlands) (Class A Stock)*		724,761		14,727,144
Reliance Steel & Aluminum Co.		260,028		15,882,510

				30,609,654

Multi-Utilities 0.6%
Alliant Energy Corp.		318,868		20,088,684

Multiline Retail 0.2%
Burlington Stores, Inc.*		104,290		6,196,912

Oil, Gas & Consumable Fuels 3.9%
Cheniere Energy Partners LP Holdings LLC		1,411,345		33,829,940
PDC Energy, Inc.*		206,007		11,132,618

See Notes to Financial Statements.


12


Description	Shares		Value (Note 1)
COMMON STOCKS (Continued)

Oil, Gas & Consumable Fuels (cont’d.)
Rosetta Resources, Inc.*		882,243	$	15,015,776
SemGroup Corp. (Class A Stock)		516,063		41,976,564
Targa Resources Corp.(a)		253,164		24,250,580
Whiting Petroleum Corp.*		343,980		10,628,982

				136,834,460

Pharmaceuticals 2.9%
Aerie Pharmaceuticals, Inc.*		951,356		29,815,497
Aratana Therapeutics, Inc.*(a)		1,099,553		17,603,844
Intersect ENT, Inc.*(a)		332,289		8,583,025
Pacira Pharmaceuticals, Inc.*(a)		517,071		45,941,758

				101,944,124

Professional Services 1.7%
Corporate Executive Board Co. (The)		348,361		27,820,109
Korn/Ferry International		804,738		26,451,738
TrueBlue, Inc.*		217,134		5,287,213

				59,559,060

Real Estate Investment Trusts (REITs) 7.2%
Capstead Mortgage Corp.		1,843,745		21,700,879
Chatham Lodging Trust		956,904		28,142,547
Chimera Investment Corp.		5,012,752		15,740,041
Colony Capital, Inc. (Class A Stock)		1,287,522		33,372,570
Hersha Hospitality Trust		6,196,710		40,092,714
MFA Financial, Inc.		6,130,568		48,186,264
Pebblebrook Hotel Trust		555,817		25,884,398
QTS Realty Trust, Inc. (Class A Stock)		492,759		17,941,355
Summit Hotel Properties, Inc.		1,583,395		22,278,368

				253,339,136

Real Estate Management & Development 1.7%
Forest City Enterprises, Inc. (Class A Stock)*		2,299,520		58,683,750

Road & Rail 0.7%
Heartland Express, Inc.		990,990		23,545,922

Semiconductors & Semiconductor Equipment 2.6%
Cavium, Inc.*(a)		888,220		62,903,740
Power Integrations, Inc.		197,753		10,298,976

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			13

Portfolio of Investments

as of March 31, 2015 (Unaudited) continued


Description	Shares		Value (Note 1)
COMMON STOCKS (Continued)

Semiconductors & Semiconductor Equipment (cont’d.)
Semtech Corp.*		736,415	$	19,621,778

				92,824,494

Software 4.7%
Fortinet, Inc.*		963,977		33,690,996
Qlik Technologies, Inc.*		1,601,127		49,843,084
SolarWinds, Inc.*		1,415,128		72,511,159
Varonis Systems, Inc.*(a)		341,402		8,760,375

				164,805,614

Specialty Retail 6.2%
Chico’s FAS, Inc.		975,893		17,263,547
DSW, Inc. (Class A Stock)		1,136,856		41,927,249
Mattress Firm Holding Corp.*(a)		1,118,005		77,857,868
Restoration Hardware Holdings, Inc.*(a)		350,108		34,727,213
Ulta Salon Cosmetics & Fragrance, Inc.*		313,244		47,252,858

				219,028,735

Textiles, Apparel & Luxury Goods 2.0%
Deckers Outdoor Corp.*(a)		548,207		39,947,844
G-III Apparel Group Ltd.*		256,266		28,868,365

				68,816,209

Thrifts & Mortgage Finance 0.3%
Provident Financial Services, Inc.		567,060		10,575,669

TOTAL LONG-TERM INVESTMENTS (cost $2,437,859,243)				3,367,595,548

SHORT-TERM INVESTMENT 16.9%

AFFILIATED MONEY MARKET MUTUAL FUND
Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund (cost $595,034,652; includes $433,251,269 of cash collateral for securities on loan) (Note 3)(b)(c)		595,034,652		595,034,652

TOTAL INVESTMENTS 112.8% (cost $3,032,893,895; Note 5)				3,962,630,200
Liabilities in excess of other assets (12.8)%				(449,599,290	)

NET ASSETS 100.0%			$	3,513,030,910

See Notes to Financial Statements.


14

*	Non-income producing security.

(a)

All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $421,813,010; cash collateral of $433,251,269 (included with liabilities) was received with which the Fund purchased highly liquid short-term investments. Securities on loan are subject to contractual netting arrangements.

(b)	Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

(c)	Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund.

Various inputs are used in determining the value of the Fund’s investments. These inputs are summarized in the three broad levels listed below.

Level 1—quoted prices generally in active markets for identical securities.

Level 2—quoted prices for similar securities, interest rates and yield curves, prepayment speeds, foreign currency exchange rates and other observable inputs.

Level 3—unobservable inputs for securities valued in accordance with Board approved fair valuation procedures.

The following is a summary of the inputs used as of March 31, 2015 in valuing such portfolio securities:


	Level 1		Level 2		Level 3
Investments in Securities
Common Stocks
Aerospace & Defense	$	22,404,190	$	—	$	—
Airlines		81,368,176		—		—
Banks		391,218,981		—		—
Biotechnology		162,383,848		—		—
Capital Markets		38,074,173		—		—
Chemicals		17,392,065		—		—
Commercial Services & Supplies		89,637,369		—		—
Construction & Engineering		19,195,754		—		—
Construction Materials		6,848,359		—		—
Diversified Consumer Services		19,250,994		—		—
Diversified Telecommunication Services		41,381,885		—		—
Electric Utilities		58,941,712		—		—
Electrical Equipment		15,743,322		—		—
Electronic Equipment, Instruments & Components		47,549,598		—		—
Energy Equipment & Services		34,942,836		—		—
Food & Staples Retailing		66,729,516		—		—

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			15

Portfolio of Investments

as of March 31, 2015 (Unaudited) continued


	Level 1		Level 2		Level 3
Common Stocks (continued)
Food Products	$	119,380,822	$	—	$	—
Health Care Equipment & Supplies		13,714,980		—		—
Health Care Providers & Services		209,881,748		—		—
Hotels, Restaurants & Leisure		133,948,671		—		—
Insurance		192,135,678		—		—
Internet & Catalog Retail		19,133,531		—		—
Internet Software & Services		33,496,975		—		—
IT Services		116,418,611		—		—
Life Sciences Tools & Services		40,436,882		—		—
Machinery		65,130,345		—		—
Media		64,002,104		—		—
Metals & Mining		30,609,654		—		—
Multi-Utilities		20,088,684		—		—
Multiline Retail		6,196,912		—		—
Oil, Gas & Consumable Fuels		136,834,460		—		—
Pharmaceuticals		101,944,124		—		—
Professional Services		59,559,060		—		—
Real Estate Investment Trusts (REITs)		253,339,136		—		—
Real Estate Management & Development		58,683,750		—		—
Road & Rail		23,545,922		—		—
Semiconductors & Semiconductor Equipment		92,824,494		—		—
Software		164,805,614		—		—
Specialty Retail		219,028,735		—		—
Textiles, Apparel & Luxury Goods		68,816,209		—		—
Thrifts & Mortgage Finance		10,575,669		—		—
Affiliated Money Market Mutual Fund		595,034,652		—		—

Total	$	3,962,630,200	$	—	$	—

See Notes to Financial Statements.


16

The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of March 31, 2015 was as follows:


Affiliated Money Market Mutual Fund (including 12.3% of collateral for securities on loan)	16.9	%
Banks	11.1
Real Estate Investment Trusts (REITs)	7.2
Specialty Retail	6.2
Health Care Providers & Services	6.0
Insurance	5.5
Software	4.7
Biotechnology	4.6
Oil, Gas & Consumable Fuels	3.9
Hotels, Restaurants & Leisure	3.8
Food Products	3.4
IT Services	3.3
Pharmaceuticals	2.9
Semiconductors & Semiconductor Equipment	2.6
Commercial Services & Supplies	2.6
Airlines	2.3
Textiles, Apparel & Luxury Goods	2.0
Food & Staples Retailing	1.9
Machinery	1.9
Media	1.8
Professional Services	1.7
Electric Utilities	1.7
Real Estate Management & Development	1.7
Electronic Equipment, Instruments & Components	1.4
Diversified Telecommunication Services	1.2
Life Sciences Tools & Services	1.1
Capital Markets	1.1
Energy Equipment & Services	1.0
Internet Software & Services	1.0
Metals & Mining	0.9
Road & Rail	0.7
Aerospace & Defense	0.6
Multi-Utilities	0.6
Diversified Consumer Services	0.5
Construction & Engineering	0.5
Internet & Catalog Retail	0.5
Chemicals	0.5
Electrical Equipment	0.4
Health Care Equipment & Supplies	0.4
Thrifts & Mortgage Finance	0.3
Construction Materials	0.2
Multiline Retail	0.2

	112.8
Liabilities in excess of other assets	(12.8	)

	100.0	%

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			17

Statement of Assets & Liabilities

as of March 31, 2015 (Unaudited)


Assets
Investments at value, including securities on loan of $421,813,010:
Unaffiliated investments (cost $2,437,859,243)	$	3,367,595,548
Affiliated investments (cost $595,034,652)		595,034,652
Receivable for investments sold		18,390,874
Receivable for Fund shares sold		9,354,992
Dividends receivable		5,107,254
Prepaid expenses		14,379

Total assets		3,995,497,699


Liabilities
Payable to broker for collateral for securities on loan		433,251,269
Payable for Fund shares reacquired		29,086,556
Payable for investments purchased		16,642,992
Management fee payable		1,967,063
Accrued expenses		916,575
Distribution fee payable		399,741
Affiliated transfer agent fee payable		112,101
Payable to custodian		89,634
Deferred directors’ fees		858

Total liabilities		482,466,789


Net Assets	$	3,513,030,910


Net assets were comprised of:
Common stock, at par	$	1,300,705
Paid-in capital in excess of par		2,424,892,157

		2,426,192,862
Undistributed net investment income		9,149,088
Accumulated net realized gain on investment transactions		147,952,655
Net unrealized appreciation on investments		929,736,305

Net assets, March 31, 2015	$	3,513,030,910

See Notes to Financial Statements.


18


Class A
Net asset value and redemption price per share ($976,408,958 ÷ 36,604,148 shares of common stock issued and outstanding)	$	26.67
Maximum sales charge (5.50% of offering price)		1.55

Maximum offering price to public	$	28.22


Class B
Net asset value, offering price and redemption price per share
($14,201,321 ÷ 805,192 shares of common stock issued and outstanding)	$	17.64


Class C
Net asset value, offering price and redemption price per share
($141,376,757 ÷ 7,934,050 shares of common stock issued and outstanding)	$	17.82


Class Q
Net asset value, offering price and redemption price per share
($542,622,840 ÷ 19,466,517 shares of common stock issued and outstanding)	$	27.87


Class R
Net asset value, offering price and redemption price per share
($52,863,719 ÷ 2,019,779 shares of common stock issued and outstanding)	$	26.17


Class Z
Net asset value, offering price and redemption price per share
($1,785,557,315 ÷ 63,240,848 shares of common stock issued and outstanding)	$	28.23

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			19

Statement of Operations

Six Months Ended March 31, 2015 (Unaudited)


Net Investment Income
Income
Unaffiliated dividend income	$	24,431,298
Affiliated income from securities lending, net		568,486
Affiliated dividend income		86,945

Total income		25,086,729


Expenses
Management fee		10,876,095
Distribution fee—Class A		1,423,617
Distribution fee—Class B		72,538
Distribution fee—Class C		651,035
Distribution fee—Class R		181,997
Transfer agent’s fees and expenses (including affiliated expense of $264,300)		2,008,000
Shareholders’ reports		212,000
Custodian and accounting fees		176,000
Registration fees		62,000
Directors’ fees		43,000
Legal fees and expenses		22,000
Insurance expenses		21,000
Audit fee		11,000
Commitment fee on syndicated credit agreement		2,000
Miscellaneous		10,868

Total expenses		15,773,150
Less: Distribution fee waiver—Class R		(60,666	)

Net expenses		15,712,484

Net investment income		9,374,245


Realized And Unrealized Gain On Investments
Net realized gain on investment transactions		167,849,322
Net change in unrealized appreciation (depreciation) on investments		170,557,410

Net gain on investment transactions		338,406,732

Net Increase In Net Assets Resulting From Operations	$	347,780,977

See Notes to Financial Statements.


20

Statement of Changes in Net Assets

(Unaudited)


	Six Months Ended March 31, 2015			Year Ended September 30, 2014
Increase (Decrease) in Net Assets
Operations
Net investment income	$	9,374,245		$	13,589,634
Net realized gain on investment transactions		167,849,322			485,484,376
Net change in unrealized appreciation (depreciation) on investments		170,557,410			(166,562,716	)

Net increase in net assets resulting from operations		347,780,977			332,511,294


Dividends and Distributions (Note 1)
Dividends from net investment income
Class A		(2,045,039	)		(3,309,733	)
Class Q		(2,962,121	)		(2,814,328	)
Class R		(16,046	)		(78,847	)
Class Z		(7,954,712	)		(8,318,702	)

		(12,977,918	)		(14,521,610	)

Distributions from net realized gains
Class A		(135,076,974	)		(96,924,119	)
Class B		(2,939,694	)		(2,098,371	)
Class C		(26,129,337	)		(14,613,834	)
Class Q		(65,034,369	)		(35,418,382	)
Class R		(7,008,711	)		(5,379,089	)
Class X		—			(7,738	)
Class Z		(227,587,816	)		(129,777,918	)

		(463,776,901	)		(284,219,451	)


Fund share transactions (Net of share conversions) (Note 6)
Net proceeds from shares sold		595,951,699			816,880,384
Net asset value of shares issued in reinvestment of dividends and distributions		439,350,377			268,160,297
Cost of shares reacquired		(494,000,960	)		(1,221,257,743	)

Net increase (decrease) in net assets from Fund share transactions		541,301,116			(136,217,062	)

Total increase (decrease)		412,327,274			(102,446,829	)

Net Assets:
Beginning of period		3,100,703,636			3,203,150,465

End of period(a)	$	3,513,030,910		$	3,100,703,636

(a) Includes undistributed net investment income of:	$	9,149,088		$	12,752,761

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			21

Notes to Financial Statements

(Unaudited)

Prudential Jennison Small Company Fund, Inc. (the “Fund”) is a diversified open-end management investment company, registered under the Investment Company Act of 1940, as amended, (“1940 Act”). The investment objective of the Fund is to achieve capital growth.

Note 1. Accounting Policies

The Fund follows investment company accounting and reporting guidance of the Financial Accounting Standards Board (“FASB”) Accounting Standard Codification Topic 946 Financial Services—Investment Companies. The following accounting policies conform to U.S. generally accepted accounting principles. The Fund consistently follows such policies in the preparation of its financial statements.

Securities Valuation: The Fund holds securities and other assets that are fair valued at the close of each day the New York Stock Exchange (“NYSE”) is open for trading. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. The Board of Directors (the “Board”) has adopted Valuation Procedures for security valuation under which fair valuation responsibilities have been delegated to Prudential Investments LLC (“PI” or “Manager”). Under the current Valuation Procedures, the established Valuation Committee is responsible for supervising the valuation of portfolio securities and other assets. The Valuation Procedures permit the Fund to utilize independent pricing vendor services, quotations from market makers, and alternative valuation methods when market quotations are either not readily available or not deemed representative of fair value. A record of the Valuation Committee’s actions is subject to the Board’s review, approval, and ratification at its next regularly-scheduled quarterly meeting.

Various inputs determine how the Fund’s investments are valued, all of which are categorized according to the three broad levels (Level 1, 2, or 3) detailed in the table following the Portfolio of Investments.

Common and preferred stocks, exchange-traded funds, and derivative instruments, such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ


22

official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.

In the event that no sale or official closing price on valuation date exists, these securities are generally valued at the mean between the last reported bid and ask prices, or at the last bid price in the absence of an ask price. These securities are classified as Level 2 in the fair value hierarchy, as the inputs are observable.

Common and preferred stocks traded on foreign securities exchanges are valued using pricing vendor services that provide model prices derived using adjustment factors based on information such as local closing price, relevant general and sector indices, currency fluctuations, depositary receipts, and futures, as applicable. Securities valued using such model prices are classified as Level 2 in the fair value hierarchy, as the adjustment factors are observable. Such securities are valued using model prices to the extent that the valuation meets the established confidence level for each security. If the confidence level is not met or the vendor does not provide a model price, securities are valued in accordance with exchange-traded common and preferred stocks discussed above.

Investments in open-end, non-exchange-traded mutual funds are valued at their net asset values as of the close of the NYSE on the date of valuation. These securities are classified as Level 1 in the fair value hierarchy since they may be purchased or sold at their net asset values on the date of valuation.

Fixed income securities traded in the over-the-counter market are generally valued at prices provided by approved independent pricing vendors. The pricing vendors provide these prices after evaluating observable inputs including, but not limited to yield curves, yield spreads, credit ratings, deal terms, tranche level attributes, default rates, cash flows, prepayment speeds, broker/dealer quotations, and reported trades. Securities valued using such vendor prices are classified as Level 2 in the fair value hierarchy.

Over-the-counter derivative instruments are generally valued using pricing vendor services, which derive the valuation based on inputs such as underlying asset prices, indices, spreads, interest rates, and exchange rates. These instruments are categorized as Level 2 in the fair value hierarchy.

Centrally cleared swaps listed or traded on a multilateral or trade facility platform, such as a registered exchange, are valued at the daily settlement price determined by the respective exchange. These securities are classified as Level 2 in the fair value hierarchy, as the daily settlement price is not public.


Prudential Jennison Small Company Fund, Inc.			23

Notes to Financial Statements

(Unaudited) continued

Securities and other assets that cannot be priced according to the methods described above are valued based on pricing methodologies approved by the Board. In the event that unobservable inputs are used when determining such valuations, the securities will be classified as Level 3 in the fair value hierarchy.

When determining the fair value of securities, some of the factors influencing the valuation include: the nature of any restrictions on disposition of the securities; assessment of the general liquidity of the securities; the issuer’s financial condition and the markets in which it does business; the cost of the investment; the size of the holding and the capitalization of the issuer; the prices of any recent transactions or bids/offers for such securities or any comparable securities; any available analyst media or other reports or information deemed reliable by the investment adviser regarding the issuer or the markets or industry in which it operates. Using fair value to price securities may result in a value that is different from a security’s most recent closing price and from the price used by other mutual funds to calculate their net asset values.

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

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

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

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


24

Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from holdings of foreign currencies, forward currency contracts, disposition of foreign currencies, currency gains or losses realized between the trade and settlement dates on securities transactions, and the difference between the amounts of dividends, interest and foreign withholding taxes recorded on the Fund’s books and the U.S. dollar equivalent amounts actually received or paid. Net unrealized currency gains or losses from valuing foreign currency denominated assets and liabilities (other than investments) at period end exchange rates are reflected as a component of net unrealized appreciation (depreciation) on foreign currencies.

Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a sub-adviser may have negotiated and entered into on behalf of the Fund. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. The right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there were no instances where the right of set-off existed and management has not elected to offset.

Securities Lending: The Fund may lend its portfolio securities to banks and broker-dealers. The loans are secured by collateral at least equal to the market value of the securities loaned. Collateral pledged by each borrower is invested in a highly liquid short-term money market fund and is marked to market daily, based on the previous day’s market value, such that the value of the collateral exceeds the value of the loaned securities. Loans are subject to termination at the option of the borrower or the Fund. Upon termination of the loan, the borrower will return to the Fund securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities in the open market using the collateral. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities, and any interest on the investment of cash received as collateral. The Fund also continues to receive interest and dividends or amounts equivalent thereto, on the securities loaned and recognizes any unrealized gain or loss in the market price of the securities loaned that may occur during the term of the loan.


Prudential Jennison Small Company Fund, Inc.			25

Notes to Financial Statements

(Unaudited) continued

REITs: The Fund invests in real estate investment trusts (“REITs”), which report information on the source of their distributions annually. Based on current and historical information, a portion of distributions received from REITs during the period is estimated to be dividend income, capital gain or return of capital and recorded accordingly. These estimates are adjusted periodically when the actual sources of distributions is disclosed by the REITs.

Securities Transactions and Net Investment Income: Securities transactions are recorded on the trade date. Realized gains or losses from investment and currency transactions are calculated on the identified cost basis. Dividend income is recorded on the ex-dividend date. Interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on an accrual basis. Expenses are recorded on an accrual basis, which may require the use of certain estimates by management that may differ from actual.

Net investment income or loss (other than distribution fees, which are charged directly to the respective class and transfer agency fees specific to Class Q shares which are charged to that share class) and unrealized and realized gains or losses are allocated daily to each class of shares based upon the relative proportion of net assets of each class at the beginning of the day.

Dividends and Distributions: The Fund expects to pay dividends from net investment income and distributions from net realized capital gains, if any, at least annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date. Permanent book/tax differences relating to income and gains are reclassified amongst undistributed net investment income, accumulated net realized gain or loss and paid-in capital in excess of par, as appropriate.

Taxes: It is the Fund’s policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net investment income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Withholding taxes on foreign dividends are recorded net of reclaimable amounts, at the time the related income is earned.


26

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

Note 2. Agreements

The Fund has a management agreement with PI. Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadvisor’s performance of such services. PI has entered into a subadvisory agreement with Jennison Associates LLC (“Jennison”). The subadvisory agreement provides that Jennison furnishes investment advisory services in connection with the management of the Fund. In connection therewith, Jennison is obligated to keep certain books and records of the Fund. PI pays for the services of Jennison, the cost of compensation of officers and employees of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses.

The management fee paid to PI is accrued daily and payable monthly, at an annual rate of .70% of the average daily net assets of the Fund up to $1 billion and .65% of the average daily net assets of the Fund in excess of $1 billion. The effective management fee rate was .67% of the average daily net assets of the Fund for the six months ended March 31, 2015.

The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”), which acts as the distributor of the Class A, Class B, Class C, Class Q, Class R and Class Z shares of the Fund. Formerly through April 11, 2014, the Fund had a distribution agreement with Prudential Annuities Distributors, Inc. (“PAD”), which together with PIMS served as co-distributor of the Class X shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B, Class C and Class R shares, pursuant to plans of distribution (the “Class A, B, C and R Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Q and Class Z shares of the Fund.

Pursuant to the Class A, B, C and R Plans, the Fund compensates PIMS for distribution-related activities at an annual rate of up to .30%, 1%, 1% and .75% of the average daily net assets of the Class A, B, C and R shares, respectively. For the six months ended March 31, 2015, PIMS contractually agreed to limit such fees to .50% of the average daily net assets of Class R shares. As of April 11, 2014, the last conversion of Class X shares to Class A shares was completed. There are no Class X shares outstanding and Class X shares are no longer being offered for sale.


Prudential Jennison Small Company Fund, Inc.			27

Notes to Financial Statements

(Unaudited) continued

Prior to the final conversion of Class X shares, Management received the maximum allowable amount of sales charges for Class X shares in accordance with regulatory limits. As such, any contingent deferred sales charges received by the Manager were contributed back into the Fund and included in the Financial Highlights as a contribution to capital.

PIMS has advised the Fund that it received $269,440 in front-end sales charges resulting from sales of Class A shares, during the six months ended March 31, 2015. From these fees, PIMS paid such sales charges to affiliated broker/dealers, which in turn paid commissions to salespersons and incurred other distribution costs.

PIMS has advised the Fund that for the six months ended March 31, 2015, it received $320, $5,951 and $3,139 in contingent deferred sales charges imposed upon redemptions by certain Class A, Class B and Class C shareholders, respectively.

PI, PIMS, PAD and Jennison are indirect, wholly-owned subsidiaries of Prudential Financial, Inc. (“Prudential”).

Note 3. Other Transactions with Affiliates

Prudential Mutual Fund Services LLC (“PMFS”), an affiliate of PI and an indirect, wholly-owned subsidiary of Prudential, serves as the Fund’s transfer agent. Transfer agent’s fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

The Fund invests in the Prudential Core Taxable Money Market Fund (the “Core Fund”), a portfolio of Prudential Investment Portfolios 2, registered under the 1940 Act and managed by PI. Earnings from the Core Fund are disclosed on the Statement of Operations as “Affiliated dividend income”.

Prudential Investment Management, Inc. (“PIM”), an indirect, wholly-owned subsidiary of Prudential, is the Fund’s securities lending agent. Earnings from securities lending are disclosed on the Statement of Operations as “Affiliated income from securities lending, net”. For the six months ended March 31, 2015, PIM was compensated approximately $169,800 for these services.


28

Note 4. Portfolio Securities

Purchases and sales of portfolio securities, other than short-term investments, for the six months ended March 31, 2015 were $691,785,400 and $702,794,115, respectively.

Note 5. Tax Information

The United States federal income tax basis of investments and net unrealized appreciation as of March 31, 2015 were as follows:


Tax Basis	$	3,042,203,449

Appreciation		986,694,359
Depreciation		(66,267,608	)

Net Unrealized Appreciation	$	920,426,751

The book basis may differ from tax basis due to certain tax related adjustments.

Management has analyzed the Fund’s tax positions taken on federal, state and local income tax returns for all open tax years and has concluded that no provision for income tax is required in the Fund’s financial statements for the current reporting period. The Fund’s federal, state and local income tax returns for tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service and state departments of revenue.

Note 6. Capital

The Fund offers Class A, Class B, Class C, Class Q, Class R and Class Z shares. Class A shares are sold with a front-end sales charge of up to 5.50%. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%. The Class A CDSC is waived for purchases by certain retirement or benefit plans. Class B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class B shares will automatically convert to Class A shares on a quarterly basis, approximately seven years after purchase. Class B shares are closed to new purchases. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class C shares are sold with a CDSC of 1% on shares redeemed within the first 12 months of purchase. As of April 11, 2014, the last conversion of Class X shares to Class A shares was completed. There are no Class X shares outstanding and Class X shares are no longer being offered for sale. Class Q, Class R and Class Z shares are not subject to any sales or redemption charges and are offered exclusively for sale to a limited group of investors.


Prudential Jennison Small Company Fund, Inc.			29

Notes to Financial Statements

(Unaudited) continued

Under certain limited circumstances, an exchange may be made from specified share classes of the Fund to one or more other share classes of the Fund as presented in the table of transactions in shares of common stock.

There are 1.25 billion shares of common stock authorized, $.01 par value per share, divided into eight classes, designated Class A, Class B, Class C, Class M, Class Q, Class R, Class X and Class Z shares, each of which consists of 300 million, 75 million, 100 million, 25 million, 225 million, 225 million, 25 million and 275 million authorized shares, respectively.

Transactions in shares of common stock were as follows:


Class A	Shares			Amount
Six months ended March 31, 2015:
Shares sold		4,594,419		$	121,398,986
Shares issued in reinvestment of dividends and distributions		5,058,194			126,606,597
Shares reacquired		(6,484,919	)		(174,008,169	)

Net increase (decrease) in shares outstanding before conversion		3,167,694			73,997,414
Shares issued upon conversion from Class B, Class C and Class Z		60,365			1,612,779
Shares reacquired upon conversion into Class Z		(1,204,308	)		(33,707,082	)

Net increase (decrease) in shares outstanding		2,023,751		$	41,903,111

Year ended September 30, 2014:
Shares sold		6,238,788		$	174,515,618
Shares issued in reinvestment of dividends and distributions		3,375,950			89,530,195
Shares reacquired		(13,636,079	)		(380,835,582	)

Net increase (decrease) in shares outstanding before conversion		(4,021,341	)		(116,789,769	)
Shares issued upon conversion from Class B, Class C, Class X and Class Z		198,206			5,599,527
Shares reacquired upon conversion into Class Q and Class Z		(1,293,601	)		(36,990,175	)

Net increase (decrease) in shares outstanding		(5,116,736	)	$	(148,180,417	)


30


Class B	Shares			Amount
Six months ended March 31, 2015:
Shares sold		24,920		$	445,308
Shares issued in reinvestment of dividends and distributions		165,609			2,745,803
Shares reacquired		(49,852	)		(893,216	)

Net increase (decrease) in shares outstanding before conversion		140,677			2,297,895
Shares reacquired upon conversion into Class A		(65,171	)		(1,168,559	)

Net increase (decrease) in shares outstanding		75,506		$	1,129,336

Year ended September 30, 2014:
Shares sold		96,160		$	1,914,372
Shares issued in reinvestment of dividends and distributions		100,479			1,901,056
Shares reacquired		(110,477	)		(2,215,663	)

Net increase (decrease) in shares outstanding before conversion		86,162			1,599,765
Shares reacquired upon conversion into Class A and Class Z		(242,211	)		(4,932,524	)

Net increase (decrease) in shares outstanding		(156,049	)	$	(3,332,759	)

Class C
Six months ended March 31, 2015:
Shares sold		1,074,539		$	19,424,066
Shares issued in reinvestment of dividends and distributions		1,287,629			21,580,662
Shares reacquired		(507,956	)		(9,216,538	)

Net increase (decrease) in shares outstanding before conversion		1,854,212			31,788,190
Shares reacquired upon conversion into Class A and Class Z		(75,197	)		(1,377,767	)

Net increase (decrease) in shares outstanding		1,779,015		$	30,410,423

Year ended September 30, 2014:
Shares sold		901,252		$	18,161,656
Shares issued in reinvestment of dividends and distributions		613,012			11,708,522
Shares reacquired		(985,911	)		(19,877,798	)

Net increase (decrease) in shares outstanding before conversion		528,353			9,992,380
Shares reacquired upon conversion into Class A and Class Z		(117,642	)		(2,404,329	)

Net increase (decrease) in shares outstanding		410,711		$	7,588,051


Prudential Jennison Small Company Fund, Inc.			31

Notes to Financial Statements

(Unaudited) continued


Class Q	Shares			Amount
Six months ended March 31, 2015:
Shares sold		3,729,999		$	103,911,494
Shares issued in reinvestment of dividends and distributions		2,548,425			66,539,390
Shares reacquired		(1,496,811	)		(41,511,670	)

Net increase (decrease) in shares outstanding		4,781,613		$	128,939,214

Year ended September 30, 2014:
Shares sold		7,238,079		$	213,794,894
Shares issued in reinvestment of dividends and distributions		1,306,844			35,912,081
Shares reacquired		(4,520,075	)		(132,158,587	)

Net increase (decrease) in shares outstanding before conversion		4,024,848			117,548,388
Shares issued upon conversion from Class A and Class Z		586,414			17,376,771
Shares reacquired upon conversion into Class Z		(56,093	)		(1,660,345	)

Net increase (decrease) in shares outstanding		4,555,169		$	133,264,814

Class R
Six months ended March 31, 2015
Shares sold		396,559		$	10,260,555
Shares issued in reinvestment of dividends and distributions		256,492			6,304,577
Shares reacquired		(354,070	)		(9,248,361	)

Net increase (decrease) in shares outstanding		298,981		$	7,316,771

Year ended September 30, 2014:
Shares sold		384,598		$	10,621,647
Shares issued in reinvestment of dividends and distributions		188,728			4,929,580
Shares reacquired		(1,001,271	)		(27,833,799	)

Net increase (decrease) in shares outstanding		(427,945	)	$	(12,282,572	)

Class X
Period ended April 11, 2014*:
Shares issued in reinvestment of dividends and distributions		406		$	7,737
Shares reacquired		(486	)		(10,168	)

Net increase (decrease) in shares outstanding before conversion		(80	)		(2,431	)
Shares reacquired upon conversion into Class A		(5,575	)		(112,950	)

Net increase (decrease) in shares outstanding		(5,655	)	$	(115,381	)


32


Class Z	Shares			Amount
Six months ended March 31, 2015:
Shares sold		11,889,712		$	340,511,290
Shares issued in reinvestment of dividends and distributions		8,140,987			215,573,348
Shares reacquired		(9,195,252	)		(259,123,006	)

Net increase (decrease) in shares outstanding before conversion		10,835,447			296,961,632
Shares issued upon conversion from Class A and Class C		1,183,040			34,864,595
Shares reacquired upon conversion into Class A		(7,990	)		(223,966	)

Net increase (decrease) in shares outstanding		12,010,497		$	331,602,261

Year ended September 30, 2014:
Shares sold		13,547,867		$	397,872,197
Shares issued in reinvestment of dividends and distributions		4,461,772			124,171,126
Shares reacquired		(22,337,520	)		(658,326,146	)

Net increase (decrease) in shares outstanding before conversion		(4,327,881	)		(136,282,823	)
Shares issued upon conversion from Class A, Class B, Class C and Class Q		947,110			28,279,931
Shares reacquired upon conversion into Class A and Class Q		(174,438	)		(5,155,906	)

Net increase (decrease) in shares outstanding		(3,555,209	)	$	(113,158,798	)

*	As of April 11, 2014, the last conversion of Class X shares to Class A shares was completed. There are no Class X shares outstanding and Class X shares are no longer being offered for sale.

Note 7. Borrowings

The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period October 9, 2014 through October 8, 2015. The Funds pay an annualized commitment fee of .075% on the unused portion of the SCA. Prior to October 9, 2014 the Funds had another SCA that provided a commitment fee of $900 million and the Funds paid an annualized commitment fee of .08% of the unused portion of the SCA. Interest on any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.

The Fund did not utilize the SCA during the six months ended March 31, 2015.


Prudential Jennison Small Company Fund, Inc.			33

Notes to Financial Statements

(Unaudited) continued

Note 8. New Accounting Pronouncement

In May 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-07 regarding “Disclosures for Investments in Certain Entities That Calculate Net Asset Value per Share”. The amendments in this update are effective for the Fund for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. ASU No. 2015-07 will eliminate the requirement to categorize investments in the fair value hierarchy if their fair value is measured at net asset value (“NAV”) per share (or its equivalent) using the practical expedient in the FASB’s fair value measurement guidance. At this time, management is evaluating the implications of ASU No. 2015-07 and its impact on the financial statement disclosures has not yet been determined.


34

Financial Highlights

(Unaudited)


Class A Shares
	Six Months Ended March 31,			Year Ended September 30,
	2015			2014			2013			2012		2011			2010
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Period		$28.09			$27.95			$21.81			$17.39		$17.59			$15.21
Income (loss) from investment operations:
Net investment income		.05			.07			.12			.06		.01			.01
Net realized and unrealized gain (loss) on investment transactions		2.74			2.72			6.12			4.36		(.21	)		2.38
Total from investment operations		2.79			2.79			6.24			4.42		(.20	)		2.39
Less Dividends and Distributions:
Dividends from net investment income		(.06	)		(.09	)		(.10	)		-		-			(.01	)
Distributions from net realized gains		(4.15	)		(2.56	)		-			-		-			-
Total dividends and distributions		(4.21	)		(2.65	)		(.10	)		-		-			(.01	)
Capital Contributions(e):		-			-			-			-		-	(d)		-	(d)
Net asset value, end of period		$26.67			$28.09			$27.95			$21.81		$17.39			$17.59
Total Return(b):		10.94%			10.55%			28.76%			25.42%		(1.14)%			15.75%

Ratios/Supplemental Data:
Net assets, end of period (000)		$976,409			$971,441			$1,109,515			$989,346		$865,917			$852,006
Average net assets (000)		$951,685			$1,059,916			$1,034,609			$1,014,383		$1,026,555			$771,944
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.14%	(f)		1.14%			1.15%			1.17%		1.16%			1.19%
Expenses before waivers and/or expense reimbursement		1.14%	(f)		1.14%			1.15%			1.17%		1.16%			1.19%
Net investment income		.39%	(f)		.25%			.48%			.29%		.04%			.04%
Portfolio turnover rate		22%	(g)		41%			50%			47%		44%			49%

(a) Calculated based on average shares outstanding during the period.

(b) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

(d) Less than $.005 per share.

(e) The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal years ended September 30, 2011 and 2010. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			35

Financial Highlights

(Unaudited) continued


Class B Shares
	Six Months Ended March 31,			Year Ended September 30,
	2015			2014			2013			2012			2011			2010
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Period		$19.95			$20.60			$16.13			$12.98			$13.22			$11.49
Income (loss) from investment operations:
Net investment loss		(.03	)		(.09	)		(.03	)		(.07	)		(.10	)		(.08	)
Net realized and unrealized gain (loss) on investment transactions		1.87			2.00			4.52			3.22			(.14	)		1.81
Total from investment operations		1.84			1.91			4.49			3.15			(.24	)		1.73
Less Dividends and Distributions:
Dividends from net investment income		-			-			(.02	)		-			-			-
Distributions from net realized gains		(4.15	)		(2.56	)		-			-			-			-
Total dividends and distributions		(4.15	)		(2.56	)		(.02	)		-			-			-
Capital Contributions(e):		-			-			-			-			-	(d)		-	(d)
Net asset value, end of period		$17.64			$19.95			$20.60			$16.13			$12.98			$13.22
Total Return(b):		10.57%			9.97%			27.88%			24.27%			(1.82)%			15.06%

Ratios/Supplemental Data:
Net assets, end of period (000)		$14,201			$14,556			$18,250			$18,965			$19,786			$24,523
Average net assets (000)		$14,547			$17,001			$18,899			$20,997			$26,270			$25,088
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.84%	(f)		1.84%			1.85%			1.87%			1.86%			1.89%
Expenses before waivers and/or expense reimbursement		1.84%	(f)		1.84%			1.85%			1.87%			1.86%			1.89%
Net investment loss		(.31)%	(f)		(.44)%			(.19)%			(.42)%			(.66)%			(.66)%
Portfolio turnover rate		22%	(g)		41%			50%			47%			44%			49%

(a) Calculated based on average shares outstanding during the period.

(d) Less than $.005 per share.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.


36


Class C Shares
	Six Months Ended March 31,			Year Ended September 30,
	2015			2014			2013			2012			2011			2010
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Period		$20.12			$20.79			$16.29			$13.08			$13.32			$11.59
Income (loss) from investment operations:
Net investment loss		(.03	)		(.09	)		(.04	)		(.06	)		(.10	)		(.08	)
Net realized and unrealized gain (loss) on investment transactions		1.88			1.98			4.56			3.27			(.14	)		1.81
Total from investment operations		1.85			1.89			4.52			3.21			(.24	)		1.73
Less Dividends and Distributions:
Dividends from net investment income		-			-			(.02	)		-			-			-
Distributions from net realized gains		(4.15	)		(2.56	)		-			-			-			-
Total dividends and distributions		(4.15	)		(2.56	)		(.02	)		-			-			-
Capital Contributions(e):		-			-			-			-			-	(d)		-	(d)
Net asset value, end of period		$17.82			$20.12			$20.79			$16.29			$13.08			$13.32
Total Return(b):		10.52%			9.77%			27.79%			24.54%			(1.80)%			14.93%

Ratios/Supplemental Data:
Net assets, end of period (000)		$141,377			$123,856			$119,436			$92,886			$84,750			$88,116
Average net assets (000)		$130,565			$124,252			$105,977			$94,960			$103,484			$80,999
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.84%	(f)		1.84%			1.85%			1.87%			1.86%			1.89%
Expenses before waivers and/or expense reimbursement		1.84%	(f)		1.84%			1.85%			1.87%			1.86%			1.89%
Net investment loss		(.31)%	(f)		(.45)%			(.24)%			(.41)%			(.66)%			(.66)%
Portfolio turnover rate		22%	(g)		41%			50%			47%			44%			49%

(a) Calculated based on average shares outstanding during the period.

(d) Less than $.005 per share.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			37

Financial Highlights

(Unaudited) continued


Class Q Shares
	Six Months Ended March 31,			Year Ended September 30,									November 29, 2010(a) through September 30,
	2015			2014			2013			2012			2011
Per Share Operating Performance(b):
Net Asset Value, Beginning Of Period		$29.22			$28.95			$22.60			$17.97			$20.00
Income (loss) from investment operations:
Net investment income		.12			.20			.24			.17			.09
Net realized and unrealized gain (loss) on investment transactions		2.87			2.83			6.31			4.54			(2.13	)
Total from investment operations		2.99			3.03			6.55			4.71			(2.04	)
Less Dividends and Distributions:
Dividends from net investment income		(.19	)		(.20	)		(.20	)		(.08	)		-
Distributions from net realized gains		(4.15	)		(2.56	)		-			-			-
Total dividends and distributions		(4.34	)		(2.76	)		(.20	)		(.08	)		-
Capital Contributions(e):		-			-			-			-			.01
Net asset value, end of period		$27.87			$29.22			$28.95			$22.60			$17.97
Total Return(c):		11.25%			11.10%			29.27%			26.29%			(10.15)%

Ratios/Supplemental Data:
Net assets, end of period (000)		$542,623			$429,165			$293,225			$240,377			$108,416
Average net assets (000)		$481,462			$427,179			$259,446			$189,399			$50,032
Ratios to average net assets(d):
Expenses after waivers and/or expense reimbursement		.70%	(f)		.69%			.70%			.70%			.72%	(f)
Expenses before waivers and/or expense reimbursement		.70%	(f)		.69%			.70%			.70%			.72%	(f)
Net investment income		.83%	(f)		.70%			.94%			.78%			.47%	(f)
Portfolio turnover rate		22%	(g)		41%			50%			47%			44%	(g)

(a) Commencement of offering.

(b) Calculated based on average shares outstanding during the period.

(c) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

(d) Does not include expenses of the underlying portfolio in which the Fund invests.

(e) The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal period ended September 30, 2011. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.


38


Class R Shares
	Six Months Ended March 31,			Year Ended September 30,
	2015			2014			2013			2012		2011			2010
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Period		$27.63			$27.53			$21.50			$17.17		$17.40			$15.08
Income (loss) from investment operations:
Net investment income (loss)		.03			.02			.07			.02		(.03	)		(.03	)
Net realized and unrealized gain (loss) on investment transactions		2.67			2.68			6.02			4.31		(.21	)		2.35
Total from investment operations		2.70			2.70			6.09			4.33		(.24	)		2.32
Less Dividends and Distributions:
Dividends from net investment income		(.01	)		(.04	)		(.06	)		-		-			-
Distributions from net realized gains		(4.15	)		(2.56	)		-			-		-			-
Total dividends and distributions		(4.16	)		(2.60	)		(.06	)		-		-			-
Capital Contributions(e):		-			-			-			-		.01			-	(d)
Net asset value, end of period		$26.17			$27.63			$27.53			$21.50		$17.17			$17.40
Total Return(b):		10.76%			10.36%			28.42%			25.22%		(1.32)%			15.38%

Ratios/Supplemental Data:
Net assets, end of period (000)		$52,864			$47,538			$59,157			$50,449		$42,192			$33,461
Average net assets (000)		$48,666			$56,323			$54,213			$48,728		$47,374			$26,819
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.34%	(f)		1.34%			1.35%			1.37%		1.36%			1.39%
Expenses before waivers and/or expense reimbursement		1.59%	(f)		1.59%			1.60%			1.62%		1.61%			1.64%
Net investment income (loss)		.19%	(f)		.06%			.28%			.10%		(.17)%			(.16)%
Portfolio turnover rate		22%	(g)		41%			50%			47%		44%			49%

(a) Calculated based on average shares outstanding during the period.

(b) Total return is calculated assuming a purchase of a share on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total returns may reflect adjustments to conform to generally accepted accounting principles. Total returns for periods of less than one full year are not annualized.

(d) Less than $.005 per share.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			39

Financial Highlights

(Unaudited) continued


Class X Shares
	Period Ended April 11,			Year Ended September 30,
	2014(h)			2013			2012			2011			2010			2009
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Period		$20.69			$16.20			$13.09			$13.34			$11.57			$14.02
Income (loss) from investment operations:
Net investment loss		(.04	)		(.01	)		(.07	)		(.10	)		(.08	)		(.03	)
Net realized and unrealized gain (loss) on investment transactions		1.49			4.52			3.18			(.15	)		1.85			(1.44	)
Total from investment operations		1.45			4.51			3.11			(.25	)		1.77			(1.47	)
Less Dividends and Distributions:
Dividends from net investment income		-			(.02	)		-			-			-			-
Distributions from net realized gains		(2.56	)		-			-			-			-			(.98	)
Total dividends and distributions		(2.56	)		(.02	)		-			-			-			(.98	)
Capital Contributions(e):					-			-			-	(d)		-	(d)		-
Net asset value, end of period		$19.58			$20.69			$16.20			$13.09			$13.34			$11.57
Total Return(b):		7.38%			27.88%			23.76%			(1.87)%			15.30%			(7.18)%

Ratios/Supplemental Data:
Net assets, end of period (000)		$3			$117			$364			$710			$1,314			$2,176
Average net assets (000)		$59			$242			$565			$1,127			$1,629			$2,191
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		1.86%	(f)		1.85%			1.87%			1.86%			1.89%			1.93%
Expenses before waivers and/or expense reimbursement		1.86%	(f)		1.85%			1.87%			1.86%			1.89%			1.93%
Net investment loss		(.35)%	(f)		(.03)%			(.43)%			(.65)%			(.65)%			(.28)%
Portfolio turnover rate		41%	(g)(i)		50%			47%			44%			49%			55%

(a) Calculated based on average shares outstanding during the period.

(d) Less than $.005 per share.

(f) Annualized.

(g) Not annualized.

(h) As of April 11, 2014, the last conversion of Class X shares to Class A shares was completed. There are no Class X shares outstanding and Class X shares are no longer being offered for sale.

(i) Calculated as of September 30, 2014.

See Notes to Financial Statements.


40


Class Z Shares
	Six Months Ended March 31,			Year Ended September 30,
	2015			2014			2013			2012			2011			2010
Per Share Operating Performance(a):
Net Asset Value, Beginning Of Period		$29.56			$29.27			$22.85			$18.22			$18.38			$15.91
Income (loss) from investment operations:
Net investment income		.10			.16			.20			.13			.07			.06
Net realized and unrealized gain (loss) on investment transactions		2.87			2.85			6.38			4.55			(.22	)		2.46
Total from investment operations		2.97			3.01			6.58			4.68			(.15	)		2.52
Less Dividends and Distributions:
Dividends from net investment income		(.15	)		(.16	)		(.16	)		(.05	)		(.02	)		(.05	)
Distributions from net realized gains		(4.15	)		(2.56	)		-			-			-			-
Total dividends and distributions		(4.30	)		(2.72	)		(.16	)		(.05	)		(.02	)		(.05	)
Capital Contributions(e):								-			-			.01			-	(d)
Net asset value, end of period		$28.23			$29.56			$29.27			$22.85			$18.22			$18.38
Total Return(b):		11.01%			10.89%			29.04%			25.73%			(.77)%			15.92%

Ratios/Supplemental Data:
Net assets, end of period (000)		$1,785,557			$1,514,147			$1,603,451			$1,359,627			$1,151,191			$926,711
Average net assets (000)		$1,651,835			$1,545,618			$1,428,455			$1,332,921			$1,252,954			$754,132
Ratios to average net assets(c):
Expenses after waivers and/or expense reimbursement		.84%	(f)		.84%			.85%			.87%			.86%			.89%
Expenses before waivers and/or expense reimbursement		.84%	(f)		.84%			.85%			.87%			.86%			.89%
Net investment income		.69%	(f)		.55%			.77%			.60%			.33%			.34%
Portfolio turnover rate		22%	(g)		41%			50%			47%			44%			49%

(a) Calculated based on average shares outstanding during the period.

(d) Less than $.005 per share.

(f) Annualized.

(g) Not annualized.

See Notes to Financial Statements.


Prudential Jennison Small Company Fund, Inc.			41

Results of Proxy Voting

(Unaudited)

At the special meeting of shareholders held on November 26, 2014, shareholders of the Prudential Jennison Small Company Fund, Inc. (the Fund), approved the following proposal.

To elect twelve Directors:


	SHARES VOTED		% OF VOTED		% OF TOTAL
(a) Ellen S. Alberding;
FOR		50,270,614.651		96.532		45.937
WITHHELD		1,806,488.543		3.468		1.650

(b) Kevin J. Bannon;
FOR		50,186,992.489		96.371		45.860
WITHHELD		1,890,110.705		3.629		1.727

(c) Linda W. Bynoe;
FOR		50,267,581.870		96.526		45.934
WITHHELD		1,809,521.324		3.474		1.653

(d) Keith F. Hartstein;
FOR		50,204,751.048		96.405		45.877
WITHHELD		1,872,352.146		3.595		1.710

(e) Michael S. Hyland;
FOR		50,302,573.218		96.593		45.966
WITHHELD		1,774,529.976		3.407		1.621

(f) Stephen P. Munn;
FOR		50,297,189.774		96.583		45.961
WITHHELD		1,779,913.420		3.417		1.626

(g) James E. Quinn;
FOR		50,197,206.591		96.391		45.807
WITHHELD		1,879,896.603		3.609		1.717

(h)Richard A. Redeker;
FOR		50,195,738.477		96.388		45.868
WITHHELD		1,881,364.717		3.612		1.719

(i)Stephen G. Stoneburn;
FOR		50,178,524.309		96.355		45.853
WITHHELD		1,898,578.885		3.645		1.734

(j)Stuart S. Parker;
FOR		50,214,512.570		96.424		45.885
WITHHELD		1,862,590.624		3.576		1.702

(k)Scott E. Benjamin; and
FOR		50,297,148.438		96.583		45.961
WITHHELD		1,779,954.756		3.417		1.626

(l)Grace C. Torres.
FOR		50,306,412.884		96.600		45.969
WITHHELD		1,770,690.310		3.400		1.618


42

The special meeting of shareholders of the Fund held on November 26, 2014, was adjourned to December 3, 2014, and further adjourned to December 10, 2014, and January 9, 2015 to permit further solicitation of proxies on the proposals noted below.

An abstention or a broker non-vote is considered present for purposes of determining a quorum but has the effect of a vote against such matters. At the special meeting of shareholders held on January 9, 2015, insufficient votes were obtained to approve the following proposals:

Proposal 1: To permit PI to enter into or make material changes to the Fund’s subadvisory agreements with subadvisers that are wholly-owned subsidiaries of PI or a sister company of PI (wholly-owned subadvisers) without shareholder approval.


	SHARES VOTED		% OF VOTED			% OF TOTAL
FOR		15,231,843.785		29.202			13.919
AGAINST		1,156,295.115		2.217			1.057
ABSTAIN		1,628,667.821		3.122			1.488
BROKER NON-VOTE		34,144,388.689		65.459			31.200

TOTAL		52,161,195.410		100.000	%		47.664

Proposal 2: To designate the Fund’s investment objective as a non-fundamental policy of the Fund, meaning that the Fund’s investment objective could be changed with the approval of the Fund’s Board of Directors, but without shareholder approval.


	SHARES VOTED		% OF VOTED			% OF TOTAL
FOR		12,041,036.566		23.085			11.003
AGAINST		4,324,676.164		8.291			3.952
ABSTAIN		1,651,093.991		3.165			1.509
BROKER NON-VOTE		34,144,388.689		65.459			31.200

TOTAL		52,161,195.410		100.000	%		47.664


Prudential Jennison Small Company Fund, Inc.			43

ⁿ MAIL

ⁿ TELEPHONE

ⁿ WEBSITE

Gateway Center Three

100 Mulberry Street

Newark, NJ 07102

(800) 225-1852

www.prudentialfunds.com

PROXY VOTING

The Board of Directors of the Fund has delegated to the Fund’s investment subadviser the responsibility for voting any proxies and maintaining proxy recordkeeping with respect to the Fund. A description of these proxy voting policies and procedures is available without charge, upon request, by calling (800) 225-1852 or by visiting the Securities and Exchange Commission’s website at www.sec.gov. Information regarding how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available on the Fund’s website and on the Securities and Exchange Commission’s website.

DIRECTORS

Ellen S. Alberding • Kevin J. Bannon • Scott E. Benjamin • Linda W. Bynoe • Keith F. Hartstein • Michael S. Hyland • Stephen P. Munn • Stuart S. Parker • James E. Quinn • Richard A. Redeker • Stephen G. Stoneburn • Grace C. Torres

OFFICERS

Stuart S. Parker, President • Scott E. Benjamin, Vice President • M. Sadiq Peshimam, Treasurer and Principal Financial and Accounting Officer • Raymond A. O’Hara, Chief Legal Officer • Deborah A. Docs, Secretary • Chad A. Earnst, Chief Compliance Officer • Theresa C. Thompson, Deputy Chief Compliance Officer • Richard W. Kinville, Anti-Money Laundering Compliance Officer • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • Amanda S. Ryan, Assistant Secretary • Andrew R. French, Assistant Secretary • Peter Parrella, Assistant Treasurer • Lana Lomuti, Assistant Treasurer • Linda McMullin, Assistant Treasurer • Kelly A. Coyne, Assistant Treasurer


MANAGER	Prudential Investments LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102

INVESTMENT SUBADVISER	Jennison Associates LLC	466 Lexington Avenue New York, NY 10017

DISTRIBUTOR	Prudential Investment Management Services LLC	Gateway Center Three 100 Mulberry Street Newark, NJ 07102

CUSTODIAN	The Bank of New York Mellon	One Wall Street New York, NY 10286

TRANSFER AGENT	Prudential Mutual Fund Services LLC	PO Box 9658 Providence, RI 02940

INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM	KPMG LLP	345 Park Avenue New York, NY 10154

FUND COUNSEL	Willkie Farr & Gallagher LLP	787 Seventh Avenue New York, NY 10019

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. The prospectus and summary prospectus contain this and other information about the Fund. An investor may obtain a prospectus and summary prospectus by visiting our website at www.prudentialfunds.com or by calling (800) 225-1852. The prospectus and summary prospectus should be read carefully before investing.

E-DELIVERY

To receive your mutual fund documents online, go to www.prudentialfunds.com/edelivery and enroll. Instead of receiving printed documents by mail, you will receive notification via email when new materials are available. You can cancel your enrollment or change your email address at any time by visiting the website address above.

SHAREHOLDER COMMUNICATIONS WITH DIRECTORS

Shareholders can communicate directly with the Board of Directors by writing to the Chair of the Board, Prudential Jennison Small Company Fund, Inc., Prudential Investments, Attn: Board of Directors, 100 Mulberry Street, Gateway Center Three, Newark, NJ 07102. Shareholders can communicate directly with an individual Director by writing to the same address. Communications are not screened before being delivered to the addressee.

AVAILABILITY OF PORTFOLIO SCHEDULE

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the Commission’s website at www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the Commission’s Public Reference Room in Washington, D.C. Information on the operation and location of the Public Reference Room may be obtained by calling 1-800-SEC-0330. The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each month.

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

PRUDENTIAL JENNISON SMALL COMPANY FUND, INC.

SHARE CLASS

NASDAQ

PGOAX

CHNDX

PSCCX

PJSQX

JSCRX

PSCZX

CUSIP

74441N101

74441N200

74441N309

74441N887

74441N507

74441N408

MF109E2 0277397-00001-00


Item 2		– Code of Ethics – Not required, as this is not an annual filing.

Item 3		– Audit Committee Financial Expert – Not required, as this is not an annual filing.

Item 4		– Principal Accountant Fees and Services – Not required, as this is not an annual filing.

Item 5		– Audit Committee of Listed Registrants – Not applicable.

Item 6		– Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item1 of this Form.

Item 7		– Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not applicable.

Item 8		– Portfolio Managers of Closed-End Management Investment Companies – Not applicable.

Item 9		– Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not applicable.

Item 10		– Submission of Matters to a Vote of Security Holders – Not applicable.

Item 11		– Controls and Procedures

		(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.

		(b) There has been no significant change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter of the period covered by this report that has materially affected, or is likely to materially affect, the registrant’s internal control over financial reporting.

Item 12		– Exhibits

		(a) (1) Code of Ethics – Not required, as this is not an annual filing.

		(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.

		(3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.

		(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


Registrant:		Prudential Jennison Small Company Fund, Inc.

By:		/s/ Deborah A. Docs
		Deborah A. Docs
		Secretary

Date:		May 19, 2015

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:		/s/ Stuart S. Parker
		Stuart S. Parker
		President and Principal Executive Officer

Date:		May 19, 2015

By:		/s/ M. Sadiq Peshimam
		M. Sadiq Peshimam
		Treasurer and Principal Financial and Accounting Officer

Date:		May 19, 2015