UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS 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 | ||||
Registrants telephone number, including area code: | 800-225-1852 | |||
Date of fiscal year end: | 9/30/2015 | |||
Date of reporting period: | 6/30/2015 |
Item 1. Schedule of Investments
Prudential Jennison Small Company Fund, Inc.
Schedule of Investments
as of June 30, 2015 (Unaudited)
Shares | Value | |||||||
LONG-TERM INVESTMENTS 95.8% |
||||||||
COMMON STOCKS 95.8% |
||||||||
Aerospace & Defense 0.7% |
| |||||||
Curtiss-Wright Corp. |
350,395 | $ | 25,382,614 | |||||
|
|
|||||||
Airlines 1.4% |
| |||||||
Spirit Airlines, Inc.* |
826,941 | 51,353,036 | ||||||
|
|
|||||||
Banks 10.9% |
| |||||||
Bank of the Ozarks, Inc.(a) |
724,472 | 33,144,594 | ||||||
BankUnited, Inc. |
1,133,189 | 40,715,481 | ||||||
BOK Financial Corp. |
391,936 | 27,270,907 | ||||||
Columbia Banking System, Inc. |
1,287,758 | 41,903,645 | ||||||
Eagle Bancorp, Inc.* |
276,829 | 12,169,403 | ||||||
East West Bancorp, Inc. |
1,520,331 | 68,141,235 | ||||||
First Republic Bank |
463,437 | 29,210,434 | ||||||
Investors Bancorp, Inc. |
1,616,654 | 19,884,844 | ||||||
Pinnacle Financial Partners, Inc. |
557,210 | 30,295,508 | ||||||
Signature Bank* |
484,288 | 70,894,920 | ||||||
Wintrust Financial Corp. |
570,496 | 30,453,077 | ||||||
|
|
|||||||
404,084,048 | ||||||||
|
|
|||||||
Biotechnology 5.6% |
| |||||||
ACADIA Pharmaceuticals, Inc.*(a) |
864,153 | 36,190,728 | ||||||
Amicus Therapeutics, Inc.* |
777,820 | 11,006,153 | ||||||
Flexion Therapeutics, Inc.* |
555,973 | 12,170,249 | ||||||
KYTHERA Biopharmaceuticals, Inc.*(a) |
1,059,696 | 79,805,706 | ||||||
Otonomy, Inc.*(a) |
396,513 | 9,115,834 | ||||||
OvaScience, Inc.*(a) |
480,202 | 13,892,244 | ||||||
Receptos, Inc.* |
156,224 | 29,690,371 | ||||||
Zafgen, Inc.*(a) |
470,401 | 16,289,986 | ||||||
|
|
|||||||
208,161,271 | ||||||||
|
|
|||||||
Building Products 0.7% |
| |||||||
Caesarstone Sdot-Yam Ltd. (Israel) |
236,935 | 16,239,525 | ||||||
Owens Corning |
266,320 | 10,985,700 | ||||||
|
|
|||||||
27,225,225 | ||||||||
|
|
|||||||
Capital Markets 1.1% |
| |||||||
Artisan Partners Asset Management, Inc. (Class A Stock) |
353,648 | 16,430,486 | ||||||
Moelis & Co. (Class A Stock) |
787,719 | 22,615,413 | ||||||
|
|
|||||||
39,045,899 | ||||||||
|
|
|||||||
Chemicals 1.4% |
| |||||||
Axalta Coating Systems Ltd.* |
413,773 | 13,687,611 | ||||||
PolyOne Corp. |
1,012,656 | 39,665,735 | ||||||
|
|
|||||||
53,353,346 | ||||||||
|
|
|||||||
Commercial Services & Supplies 2.3% |
| |||||||
Mobile Mini, Inc. |
1,417,199 | 59,579,046 | ||||||
West Corp. |
848,568 | 25,541,897 | ||||||
|
|
|||||||
85,120,943 | ||||||||
|
|
|||||||
Construction & Engineering 0.5% |
| |||||||
Great Lakes Dredge & Dock Corp.* |
3,295,466 | 19,640,977 | ||||||
|
|
|||||||
Construction Materials 0.4% |
| |||||||
Summit Materials, Inc. (Class A Stock)* |
620,947 | 15,834,148 | ||||||
|
|
|||||||
Containers & Packaging 0.5% |
| |||||||
Bemis Co., Inc. |
402,365 | 18,110,449 | ||||||
|
|
Diversified Consumer Services 0.6% |
| |||||||
Houghton Mifflin Harcourt Co.* |
857,116 | 21,599,323 | ||||||
|
|
|||||||
Diversified Telecommunication Services 1.8% |
| |||||||
Cogent Communications Holdings, Inc. |
231,566 | 7,836,193 | ||||||
Frontier Communications Corp.(a) |
8,905,267 | 44,081,072 | ||||||
ORBCOMM, Inc.* |
1,954,979 | 13,196,108 | ||||||
|
|
|||||||
65,113,373 | ||||||||
|
|
|||||||
Electric Utilities 0.4% |
| |||||||
Westar Energy, Inc. |
449,755 | 15,390,616 | ||||||
|
|
|||||||
Electrical Equipment 0.3% |
| |||||||
Polypore International, Inc.* |
181,978 | 10,896,843 | ||||||
|
|
|||||||
Electronic Equipment, Instruments & Components 1.6% |
| |||||||
Anixter International, Inc.* |
252,668 | 16,461,320 | ||||||
CDW Corp. |
826,520 | 28,333,106 | ||||||
FEI Co. |
166,233 | 13,785,703 | ||||||
Fitbit, Inc. (Class A Stock)*(a) |
25,914 | 990,692 | ||||||
|
|
|||||||
59,570,821 | ||||||||
|
|
|||||||
Energy Equipment & Services 1.0% |
| |||||||
Dril-Quip, Inc.* |
395,502 | 29,761,525 | ||||||
Superior Energy Services, Inc. |
424,398 | 8,929,334 | ||||||
|
|
|||||||
38,690,859 | ||||||||
|
|
|||||||
Food & Staples Retailing 1.5% |
| |||||||
Fresh Market, Inc. (The)*(a) |
412,550 | 13,259,357 | ||||||
Sprouts Farmers Market, Inc.*(a) |
1,504,211 | 40,583,613 | ||||||
|
|
|||||||
53,842,970 | ||||||||
|
|
|||||||
Food Products 3.1% |
| |||||||
Adecoagro SA (Luxembourg)* |
3,199,426 | 29,498,708 | ||||||
Darling Ingredients, Inc.* |
1,161,791 | 17,031,856 | ||||||
Hain Celestial Group, Inc. (The)* |
703,959 | 46,362,740 | ||||||
SunOpta, Inc. (Canada)* |
943,192 | 10,120,450 | ||||||
TreeHouse Foods, Inc.* |
148,655 | 12,045,514 | ||||||
|
|
|||||||
115,059,268 | ||||||||
|
|
|||||||
Health Care Equipment & Supplies 0.4% |
| |||||||
Glaukos Corp.* |
81,603 | 2,364,855 | ||||||
Nevro Corp.*(a) |
52,193 | 2,805,374 | ||||||
Spectranetics Corp. (The)*(a) |
348,530 | 8,019,675 | ||||||
|
|
|||||||
13,189,904 | ||||||||
|
|
|||||||
Health Care Providers & Services 6.0% |
| |||||||
Air Methods Corp.*(a) |
924,826 | 38,232,307 | ||||||
Amsurg Corp.* |
675,025 | 47,217,999 | ||||||
Centene Corp.* |
211,270 | 16,986,108 | ||||||
Envision Healthcare Holdings, Inc.* |
805,877 | 31,816,024 | ||||||
LifePoint Health, Inc.* |
97,900 | 8,512,405 | ||||||
Molina Healthcare, Inc.* |
724,145 | 50,907,393 | ||||||
Team Health Holdings, Inc.* |
441,293 | 28,829,672 | ||||||
Teladoc, Inc.* |
81,530 | 1,549,070 | ||||||
|
|
|||||||
224,050,978 | ||||||||
|
|
|||||||
Health Care Technology |
| |||||||
Evolent Health, Inc. (Class A Stock)* |
16,203 | 315,959 | ||||||
|
|
|||||||
Hotels, Restaurants & Leisure 4.6% |
| |||||||
Bloomin Brands, Inc. |
943,689 | 20,147,760 | ||||||
Del Friscos Restaurant Group, Inc.* |
951,573 | 17,727,805 |
Pinnacle Entertainment, Inc.* |
1,099,407 | 40,985,893 | ||||||
Texas Roadhouse, Inc. |
508,766 | 19,043,112 | ||||||
Vail Resorts, Inc. |
671,676 | 73,347,019 | ||||||
|
|
|||||||
171,251,589 | ||||||||
|
|
|||||||
Independent Power & Renewable Electricity Producers 0.7% |
| |||||||
NRG Yield, Inc. (Class A Stock)(a) |
506,335 | 11,134,307 | ||||||
NRG Yield, Inc. (Class C Stock)(a) |
663,963 | 14,534,150 | ||||||
|
|
|||||||
25,668,457 | ||||||||
|
|
|||||||
Insurance 5.4% |
| |||||||
Symetra Financial Corp. |
2,370,736 | 57,300,689 | ||||||
Validus Holdings Ltd. |
436,919 | 19,220,067 | ||||||
W.R. Berkley Corp. |
1,259,216 | 65,391,087 | ||||||
White Mountains Insurance Group Ltd. |
89,450 | 58,584,383 | ||||||
|
|
|||||||
200,496,226 | ||||||||
|
|
|||||||
Internet & Catalog Retail 0.5% |
| |||||||
Wayfair, Inc. (Class A Stock)*(a) |
502,744 | 18,923,284 | ||||||
|
|
|||||||
Internet Software & Services 1.3% |
| |||||||
Cornerstone OnDemand, Inc.*(a) |
559,148 | 19,458,350 | ||||||
Dealertrack Technologies, Inc.*(a) |
451,690 | 28,361,615 | ||||||
|
|
|||||||
47,819,965 | ||||||||
|
|
|||||||
IT Services 3.8% |
| |||||||
Black Knight Financial Services, Inc. (Class A Stock)* |
330,627 | 10,206,456 | ||||||
Global Payments, Inc. |
668,523 | 69,158,704 | ||||||
Vantiv, Inc. (Class A Stock)* |
1,651,837 | 63,083,655 | ||||||
|
|
|||||||
142,448,815 | ||||||||
|
|
|||||||
Life Sciences Tools & Services 0.6% |
| |||||||
Fluidigm Corp.*(a) |
894,238 | 21,640,560 | ||||||
|
|
|||||||
Machinery 1.8% |
| |||||||
NN, Inc. |
1,242,496 | 31,708,498 | ||||||
Rexnord Corp.* |
1,046,048 | 25,011,008 | ||||||
WABCO Holdings, Inc.* |
69,031 | 8,540,515 | ||||||
|
|
|||||||
65,260,021 | ||||||||
|
|
|||||||
Media 1.6% |
| |||||||
Cinemark Holdings, Inc. |
1,484,538 | 59,633,891 | ||||||
|
|
|||||||
Metals & Mining 0.2% |
| |||||||
Constellium NV (Netherlands) (Class A Stock)* |
124,051 | 1,467,523 | ||||||
Reliance Steel & Aluminum Co. |
122,798 | 7,426,823 | ||||||
|
|
|||||||
8,894,346 | ||||||||
|
|
|||||||
Multi-Utilities 0.5% |
| |||||||
Alliant Energy Corp. |
333,346 | 19,240,731 | ||||||
|
|
|||||||
Multiline Retail 0.3% |
| |||||||
Burlington Stores, Inc.* |
212,311 | 10,870,323 | ||||||
|
|
|||||||
Oil, Gas & Consumable Fuels 3.6% |
| |||||||
Cheniere Energy Partners LP Holdings LLC |
1,475,428 | 34,554,524 | ||||||
PDC Energy, Inc.*(a) |
215,361 | 11,551,964 | ||||||
SemGroup Corp. (Class A Stock) |
563,703 | 44,803,114 | ||||||
Tallgrass Energy GP LP*(a) |
966,418 | 31,070,339 | ||||||
Whiting Petroleum Corp.* |
359,599 | 12,082,526 | ||||||
|
|
|||||||
134,062,467 |
Pharmaceuticals 1.7% |
| |||||||
Aerie Pharmaceuticals, Inc.*(a) |
994,553 | 17,553,860 | ||||||
Aratana Therapeutics, Inc.*(a) |
1,149,479 | 17,380,123 | ||||||
Intersect ENT, Inc.* |
1,046,367 | 29,957,487 | ||||||
|
|
|||||||
64,891,470 | ||||||||
|
|
|||||||
Professional Services 1.6% |
| |||||||
CEB, Inc. |
364,178 | 31,705,337 | ||||||
Korn/Ferry International |
841,277 | 29,251,201 | ||||||
|
|
|||||||
60,956,538 | ||||||||
|
|
|||||||
Real Estate Investment Trusts (REITs) 8.1% |
| |||||||
Capstead Mortgage Corp. |
1,927,461 | 21,394,817 | ||||||
Chatham Lodging Trust |
1,380,660 | 36,546,070 | ||||||
Chimera Investment Corp. |
1,048,071 | 14,369,054 | ||||||
Colony Capital, Inc. (Class A Stock) |
1,548,783 | 35,079,935 | ||||||
Hersha Hospitality Trust |
1,876,919 | 48,124,203 | ||||||
MFA Financial, Inc. |
6,408,929 | 47,361,985 | ||||||
National Storage Affiliates Trust |
1,408,579 | 17,466,380 | ||||||
Pebblebrook Hotel Trust |
768,135 | 32,937,629 | ||||||
QTS Realty Trust, Inc. (Class A Stock) |
555,567 | 20,250,417 | ||||||
Summit Hotel Properties, Inc. |
2,025,622 | 26,353,342 | ||||||
|
|
|||||||
299,883,832 | ||||||||
|
|
|||||||
Real Estate Management & Development 1.5% |
| |||||||
Forest City Enterprises, Inc. (Class A Stock)* |
2,530,429 | 55,922,481 | ||||||
|
|
|||||||
Road & Rail 0.2% |
| |||||||
Heartland Express, Inc. |
345,009 | 6,979,532 | ||||||
|
|
|||||||
Semiconductors & Semiconductor Equipment 2.4% |
| |||||||
Cavium, Inc.* |
775,382 | 53,354,036 | ||||||
M/A-COM Technology Solutions Holdings, Inc.*(a) |
573,869 | 21,950,489 | ||||||
Semtech Corp.* |
769,852 | 15,281,562 | ||||||
|
|
|||||||
90,586,087 | ||||||||
|
|
|||||||
Software 4.2% |
| |||||||
Fortinet, Inc.* |
638,467 | 26,387,841 | ||||||
Qlik Technologies, Inc.* |
1,539,510 | 53,821,270 | ||||||
SolarWinds, Inc.* |
1,479,383 | 68,243,938 | ||||||
Varonis Systems, Inc.*(a) |
376,994 | 8,327,797 | ||||||
|
|
|||||||
156,780,846 | ||||||||
|
|
|||||||
Specialty Retail 6.4% |
| |||||||
Chicos FAS, Inc. |
1,020,204 | 16,965,993 | ||||||
DavidsTea, Inc. (Canada)*(a) |
412,570 | 8,866,129 | ||||||
DSW, Inc. (Class A Stock) |
1,894,088 | 63,205,717 | ||||||
Mattress Firm Holding Corp.*(a) |
855,323 | 52,131,937 | ||||||
Party City Holdco, Inc.* |
229,705 | 4,656,120 | ||||||
Restoration Hardware Holdings, Inc.*(a) |
366,005 | 35,733,068 | ||||||
Ulta Salon Cosmetics & Fragrance, Inc.* |
359,060 | 55,456,817 | ||||||
|
|
|||||||
237,015,781 | ||||||||
|
|
|||||||
Textiles, Apparel & Luxury Goods 1.8% |
| |||||||
Deckers Outdoor Corp.*(a) |
405,473 | 29,181,892 | ||||||
G-III Apparel Group Ltd.* |
535,804 | 37,693,811 | ||||||
|
|
|||||||
66,875,703 | ||||||||
|
|
|||||||
Thrifts & Mortgage Finance 0.3% |
| |||||||
Provident Financial Services, Inc. |
592,808 | 11,257,424 | ||||||
|
|
Trading Companies & Distributors 0.5% |
||||||||
Univar, Inc.* |
673,932 | 17,542,450 | ||||||
|
|
|||||||
TOTAL COMMON STOCKS |
|
3,559,935,689 | ||||||
|
|
|||||||
WARRANTS*(b) |
||||||||
Units | ||||||||
Oil, Gas & Consumable Fuels |
||||||||
Magnum Hunter Resources Corp., expiring 04/15/16 |
8,265 | | ||||||
|
|
|||||||
(cost $) |
||||||||
TOTAL LONG-TERM INVESTMENTS |
|
3,559,935,689 | ||||||
|
|
|||||||
SHORT-TERM INVESTMENT 13.5% |
||||||||
AFFILIATED MONEY MARKET MUTUAL FUND |
||||||||
Prudential Investment Portfolios 2 Prudential Core Taxable Money Market Fund |
502,764,950 | 502,764,950 | ||||||
|
|
|||||||
TOTAL INVESTMENTS 109.3% |
|
4,062,700,639 | ||||||
Liabilities in excess of other assets (9.3)% |
|
(347,235,359 | ) | |||||
|
|
|||||||
NET ASSETS 100.0% |
|
$ | 3,715,465,280 | |||||
|
|
* | 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 $338,063,616; cash collateral of $343,611,080 (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) | The amount represents fair value of derivative instruments subject to equity contracts risk exposure as of June 30, 2015. |
(c) | Indicates a security or securities that have been deemed illiquid. |
(d) | Indicates a restricted security; the original cost of the restricted security is $0. The value of $0 is approximately 0.0% of net assets. |
(e) | Represents security, or a portion thereof, purchased with cash collateral received for securities on loan. |
(f) | Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 Prudential Core Taxable Money Market Fund. |
(g) | The United States federal income tax basis of investments and net unrealized appreciation were as follows: |
Tax Basis |
$ | 3,259,182,442 | ||
|
|
|||
Appreciation |
906,624,559 | |||
Depreciation |
(103,106,362 | ) | ||
|
|
|||
Net Unrealized Appreciation |
$ | 803,518,197 | ||
|
|
The book basis may differ from tax basis due to certain tax-related adjustments.
Various inputs are used in determining the value of the Funds 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 June 30, 2015 in valuing such portfolio securities:
Level 1 | Level 2 | Level 3 | ||||||||||
Investments in Securities |
||||||||||||
Common Stocks |
||||||||||||
Aerospace & Defense |
$ | 25,382,614 | $ | | $ | | ||||||
Airlines |
51,353,036 | | | |||||||||
Banks |
404,084,048 | | | |||||||||
Biotechnology |
208,161,271 | | | |||||||||
Building Products |
27,225,225 | | | |||||||||
Capital Markets |
39,045,899 | | | |||||||||
Chemicals |
53,353,346 | | | |||||||||
Commercial Services & Supplies |
85,120,943 | | | |||||||||
Construction & Engineering |
19,640,977 | | | |||||||||
Construction Materials |
15,834,148 | | | |||||||||
Containers & Packaging |
18,110,449 | | | |||||||||
Diversified Consumer Services |
21,599,323 | | | |||||||||
Diversified Telecommunication Services |
65,113,373 | | | |||||||||
Electric Utilities |
15,390,616 | | | |||||||||
Electrical Equipment |
10,896,843 | | | |||||||||
Electronic Equipment, Instruments & Components |
59,570,821 | | | |||||||||
Energy Equipment & Services |
38,690,859 | | | |||||||||
Food & Staples Retailing |
53,842,970 | | | |||||||||
Food Products |
115,059,268 | | | |||||||||
Health Care Equipment & Supplies |
13,189,904 | | | |||||||||
Health Care Providers & Services |
224,050,978 | | | |||||||||
Health Care Technology |
315,959 | | | |||||||||
Hotels, Restaurants & Leisure |
171,251,589 | | | |||||||||
Independent Power & Renewable Electricity Producers |
25,668,457 | | | |||||||||
Insurance |
200,496,226 | | | |||||||||
Internet & Catalog Retail |
18,923,284 | | | |||||||||
Internet Software & Services |
47,819,965 | | | |||||||||
IT Services |
142,448,815 | | | |||||||||
Life Sciences Tools & Services |
21,640,560 | | | |||||||||
Machinery |
65,260,021 | | | |||||||||
Media |
59,633,891 | | | |||||||||
Metals & Mining |
8,894,346 | | | |||||||||
Multi-Utilities |
19,240,731 | | | |||||||||
Multiline Retail |
10,870,323 | | | |||||||||
Oil, Gas & Consumable Fuels |
134,062,467 | | | |||||||||
Pharmaceuticals |
64,891,470 | | | |||||||||
Professional Services |
60,956,538 | | | |||||||||
Real Estate Investment Trusts (REITs) |
299,883,832 | | | |||||||||
Real Estate Management & Development |
55,922,481 | | | |||||||||
Road & Rail |
6,979,532 | | | |||||||||
Semiconductors & Semiconductor Equipment |
90,586,087 | | | |||||||||
Software |
156,780,846 | | | |||||||||
Specialty Retail |
237,015,781 | | | |||||||||
Textiles, Apparel & Luxury Goods |
66,875,703 | | | |||||||||
Thrifts & Mortgage Finance |
11,257,424 | | | |||||||||
Trading Companies & Distributors |
17,542,450 | | | |||||||||
Warrants |
||||||||||||
Oil, Gas & Consumable Fuels |
| | | |||||||||
Affiliated Money Market Mutual Fund |
502,764,950 | | | |||||||||
|
|
|
|
|
|
|||||||
Total |
$ | 4,062,700,639 | $ | | $ | | ||||||
|
|
|
|
|
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Notes to Schedule of Investments (Unaudited)
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 Committees actions is subject to the Boards review, approval, and ratification at its next regularly-scheduled quarterly meeting.
Various inputs determine how the Funds 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 Schedule of Investments.
Common and preferred stocks, exchange-traded funds, and derivative instruments, such as futures and 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 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 (OTC) 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.
OTC 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.
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 issuers 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 securitys most recent closing price and from the price used by other mutual funds to calculate their net asset values.
The Fund invests in the Prudential Core Taxable Money Market Fund, a portfolio of the Prudential Investment Portfolios 2, registered under the Investment Company Act of 1940, as amended, and managed by PI.
Other information regarding the Fund is available in the Funds most recent Report to Shareholders. This information is available on the Securities and Exchange Commissions website (www.sec.gov).
Item 2. Controls and Procedures
(a) | It is the conclusion of the registrants principal executive officer and principal financial officer that the effectiveness of the registrants 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 Commissions rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrants 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 registrants 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 3. Exhibits
Certifications pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 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) Prudential Jennison Small Company Fund, Inc.
By (Signature and Title)* | /s/ Deborah A. Docs | |
Deborah A. Docs | ||
Secretary of the Fund |
Date | August 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 (Signature and Title)* | /s/ Stuart S. Parker | |
Stuart S. Parker | ||
President and Principal Executive Officer |
Date | August 19, 2015 |
By (Signature and Title)* | /s/ M. Sadiq Peshimam | |
M. Sadiq Peshimam | ||
Treasurer and Principal Financial Officer |
Date | August 19, 2015 |
* | Print the name and title of each signing officer under his or her signature. |
CERTIFICATIONS
I, Stuart S. Parker, certify that:
1. | I have reviewed this report on Form N-Q of Prudential Jennison Small Company Fund, Inc.; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the schedule of investments included in this report fairly presents in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 19, 2015 | /s/ Stuart S. Parker | |||
Stuart S. Parker | ||||
President and Principal | ||||
Executive Officer |
CERTIFICATIONS
I, M. Sadiq Peshimam, certify that:
1. | I have reviewed this report on Form N-Q of Prudential Jennison Small Company Fund, Inc; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the schedule of investments included in this report fairly presents in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; |
4. | The registrants other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and |
(d) | Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and |
5. | The registrants other certifying officer(s) and I have disclosed to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize, and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting. |
Date: August 19, 2015 | /s/ M. Sadiq Peshimam | |||
M. Sadiq Peshimam | ||||
Treasurer and Principal | ||||
Financial Officer |