-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, CWQ/Jox58PUwWDU9xSEpGdXNwxMakGYKwqHXbPxe9jt7YGhMBTnea6QQotlF/w3/ qcLizpDgX1Fxe6VhorR7Ag== 0000898733-03-000386.txt : 20030808 0000898733-03-000386.hdr.sgml : 20030808 20030808100102 ACCESSION NUMBER: 0000898733-03-000386 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030531 FILED AS OF DATE: 20030808 EFFECTIVENESS DATE: 20030808 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DRYDEN GOVERNMENT SECURITIES TRUST CENTRAL INDEX KEY: 0000355605 IRS NUMBER: 136804454 STATE OF INCORPORATION: MA FISCAL YEAR END: 1130 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-03264 FILM NUMBER: 03830271 BUSINESS ADDRESS: STREET 1: 100 MULBERRY STREET CITY: NEWARK STATE: NJ ZIP: 07102 BUSINESS PHONE: 2122142189 MAIL ADDRESS: STREET 1: 100 MULBERRY ST STREET 2: GATEWAY CENTER THREE CITY: NEWARK STATE: NJ ZIP: 07102 FORMER COMPANY: FORMER CONFORMED NAME: PRUDENTIAL GOVERNMENT SECURITIES TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: PRUDENTIAL BACHE GOVERNMENT SECURITIES TRUST DATE OF NAME CHANGE: 19911003 FORMER COMPANY: FORMER CONFORMED NAME: CHANCELLOR GOVERNMENT SECURITIES TRUST DATE OF NAME CHANGE: 19830509 N-CSR 1 mf16092ncsr.txt DRYDEN GOVERNMENT SECURITIES TRUST -- 05-31-2003 SEMIANNUAL 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: 811-03264 Exact name of registrant as specified in charter: Dryden Government Securities Trust Address of principal executive offices: Gateway Center 3 100 Mulberry Street Newark, New Jersey 07102 Name and address of agent for service: Deborah A. Docs Gateway Center 3 100 Mulberry Street Newark, New Jersey 07102 Registrant's telephone number, including area code: 973-367-7521 Date of fiscal year end: May 31, 2003 Date of reporting period: May 31, 2003
Item 1 -- Reports to Stockholders SEMIANNUAL REPORT MAY 31, 2003 DRYDEN GOVERNMENT SECURITIES TRUST/ MONEY MARKET SERIES & U.S. TREASURY MONEY MARKET SERIES (Formerly known as Prudential Government Securities Trust) FUND TYPE Money market OBJECTIVES Money Market Series: High current income, preservation of capital, and maintenance of liquidity. U.S. Treasury Money Market Series: High current income consistent with the preservation of principal and liquidity. This report is not authorized for distribution to prospective investors unless preceded or accompanied by a current prospectus. The views expressed in this report and information about the Trust's portfolio holdings are for the period covered by this report and are subject to change thereafter. JennisonDryden is a service mark of The Prudential Insurance Company of America. (LOGO) Dryden Government Securities Trust Performance at a Glance FUND OBJECTIVE--MONEY MARKET SERIES The investment objective of the Money Market Series (the Series) is high current income, preservation of capital, and maintenance of liquidity. There can be no assurance that the Series will achieve its investment objective. Fund Facts As of 5/31/03 Money Market Series 7-Day Net Asset Weighted Avg. Net Assets Current Yield* Value (NAV) Mat. (WAM) (Millions) Class A 0.46% $1.00 63 Days $587 Class Z 0.59% $1.00 63 Days $ 25 iMoneyNet, Inc. Gov't Agency Avg.** 0.54% $1.00 52 Days N/A *Yields will fluctuate from time to time, and past performance is not indicative of future results. An investment in the Money Market Series is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Money Market Series seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Money Market Series. **iMoneyNet, Inc. reports a seven-day current yield, NAV, and WAM on Tuesdays. This is the data of all funds in the iMoneyNet, Inc. Government Agency Average as of May 27, 2003; the closest date to the end of our reporting period. www.jennisondryden.com (800) 225-1852 Semiannual Report May 31, 2003 FUND OBJECTIVE--U.S. TREASURY MONEY MARKET SERIES The investment objective of the U.S. Treasury Money Market Series (the Series) is high current income consistent with the preservation of principal and liquidity. There can be no assurance that the Series will achieve its investment objective. Fund Facts As of 5/31/03 U.S. Treasury Money Market Series
7-Day Net Asset Weighted Avg. Net Assets Current Yield* Value (NAV) Mat. (WAM) (Millions) Class A 0.52% $1.00 74 Days $434 Class Z 0.64% $1.00 74 Days $ 6 iMoneyNet, Inc. 100% U.S. Treasuries Avg.** 0.50% $1.00 65 Days N/A
*Yields will fluctuate from time to time, and past performance is not indicative of future results. An investment in the U.S. Treasury Money Market Series is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the U.S. Treasury Money Market Series seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the U. S. Treasury Money Market Series. **iMoneyNet, Inc. reports a seven-day current yield, NAV, and WAM on Tuesdays. This is the data of all funds in the iMoneyNet, Inc. 100% U.S. Treasuries Average as of May 27, 2003; the closest date to the end of our reporting period. 1 July 15, 2003 DEAR SHAREHOLDER, Stock markets in the United States and abroad posted their best quarterly gains in 4 1/2 years in June 2003 and the U.S. bond market rally continued. This has encouraged a sense of cautious optimism among investors. We welcome these developments, but regardless of the direction of financial markets, it is important to remember that a wise investor plans today for tomorrow's needs. Whether you are investing for your retirement, your children's education, or some other goal, JennisonDryden mutual funds offer the experience, resources, and professional discipline of three leading asset management firms that can make a difference for you. JennisonDryden equity funds are managed by Jennison Associates and Quantitative Management. Prudential Fixed Income manages the JennisonDryden fixed income and money market funds. A diversified asset allocation strategy is a disciplined approach to investing that may help you make more consistent progress toward your goals. We recommend that you develop a personal asset allocation strategy in consultation with a financial professional who knows you, who understands your reasons for investing, the time you have to reach your goals, and the amount of risk you are comfortable assuming. JennisonDryden mutual funds offer a wide range of investment choices, and your financial professional can help you choose the appropriate funds to implement your strategy. I was named president of the Dryden Government Securities Trust in March 2003. Thank you for your confidence in JennisonDryden mutual funds. We look forward to serving your future investment needs. Sincerely, Judy A. Rice, President Dryden Government Securities Trust/Money Market Series Dryden Government Securities Trust/U.S. Treasury Money Market Series 2 Dryden Government Securities Trust Money Market Series Portfolio of Investments as of May 31, 2003 (Unaudited)
Principal Amount (000) Description Value (Note 1) - ----------------------------------------------------------------------------------------- Federal Farm Credit Bank 10.6% $ 65,000 1.185%, 4/7/04, F.R.N. $ 64,973,607 - ------------------------------------------------------------------------------------- Federal Home Loan Bank 22.3% 7,000 1.099%, 9/15/03, F.R.N. 6,999,997 30,000 1.214%, 11/24/04, F.R.N. 29,989,279 250 5.91%, 7/2/03 250,739 1,000 4.50%, 7/7/03 1,002,087 2,000 5.125%, 9/15/03 2,022,105 265 5.19%, 10/20/03 268,975 300 5.35%, 12/1/03 306,068 100 5.53%, 12/8/03 102,194 100 5.85%, 12/15/03 102,446 5,000 1.36%, 4/5/04 5,000,000 15,500 1.35%, 4/6/04 15,500,000 10,000 1.40%, 4/13/04 10,000,000 10,000 4.875%, 4/16/04 10,313,535 6,200 1.40%, 5/10/04 6,200,000 9,000 1.35%, 5/12/04 8,994,945 10,000 1.40%, 5/12/04 10,000,000 3,000 1.40%, 6/2/04 3,000,000 15,000 1.30%, 6/7/04 15,000,000 5,000 1.32%, 6/9/04 5,000,000 6,000 1.30%, 6/28/04 6,000,000 -------------- 136,052,370 - ------------------------------------------------------------------------------------- Federal Home Loan Mortgage Corporation 2.5% 12,500 4.50%, 6/15/03 12,508,790 1,000 3.50%, 9/15/03 1,006,398 2,000 3.25%, 5/20/04 2,035,113 -------------- 15,550,301 - ------------------------------------------------------------------------------------- Federal National Mortgage Association 27.5% 10,000 1.24%, 7/22/03, F.R.N. 9,999,495 25,000 1.13%, 8/1/03, F.R.N. 24,997,014 10,500 1.169%, 1/22/04, F.R.N. 10,496,501 50,000 1.31%, 1/29/04, F.R.N. 50,000,000 9,175 1.12%, 7/1/03 9,166,437 12,000 1.18%, 7/1/03 11,988,200 30,000 1.19%, 8/1/03 29,940,500 2,485 4.00%, 8/15/03 2,498,755 13,129 1.15%, 9/2/03 13,090,381 6,000 3.125%, 11/15/03 6,030,774 -------------- 168,208,057
See Notes to Financial Statements 3 Dryden Government Securities Trust Money Market Series Portfolio of Investments as of May 31, 2003 (Unaudited) Cont'd.
Principal Amount (000) Description Value (Note 1) - ----------------------------------------------------------------------------------------- Student Loan Marketing Association 1.3% $ 8,000 2.25%, 7/2/03, M.T.N. $ 7,999,878 - ------------------------------------------------------------------------------------- Repurchase Agreements(a) 44.2% 60,000 Bank America, 1.26%, dated 5/27/03, due 6/03/03 in the amount of $60,014,700 (cost $60,000,000; the value of the collateral including interest was $61,200,001) 60,000,000 61,000 Credit Suisse First Boston, Inc., 1.27%, dated 5/27/03, due 6/02/03 in the amount of $61,012,912 (cost $61,000,000; the value of the collateral including interest was $62,223,354) 61,000,000 25,000 Greenwich Capital Markets, 1.26%, dated 5/29/03, due 6/26/03 in the amount of $25,024,500 (cost $25,000,000; the value of the collateral including interest was $25,501,307) 25,000,000 26,000 Joint Repurchase Agreement (Note 4), 1.36%, dated 5/30/03, due 6/02/03 in the amount of $26,002,947 (cost $26,000,000; the value of the collateral including interest was $26,520,297) 26,000,000 28,773 Merrill Lynch, 1.30%, dated 5/29/03, due 6/02/03 in the amount of $28,777,156 (cost $28,773,000; the value of the collateral including interest was $29,352,212) 28,773,000 11,077 Merrill Lynch, 1.31%, dated 5/30/03, due 6/06/03 in the amount of $11,079,822 (cost $11,077,000; the value of the collateral including interest was $11,300,885) 11,077,000 30,000 Morgan Stanley, 1.30%, dated 5/29/03, due 6/02/03 in the amount of $30,004,333 (cost $30,000,000; the value of the collateral including interest was $30,600,000) 30,000,000 28,481 Morgan Stanley, 1.28%, dated 5/28/03, due 6/04/03 in the amount of $28,488,089 (cost $28,481,000; the value of the collateral including interest was $29,050,621) 28,481,000 -------------- 270,331,000 -------------- Total Investments 108.4% (amortized cost $663,115,213(b)) 663,115,213 Liabilities in excess of other assets (8.4)% (51,454,856) -------------- Net Assets 100% $ 611,660,357 -------------- --------------
- ------------------------------ F.R.N.-- Floating Rate Note. The interest rate reflected is the rate in effect at May 31, 2003. M.T.N.--Medium Term Note. (a) Repurchase Agreements are collateralized by U.S. Treasury or Federal agency obligations. (b) Federal income tax basis of portfolio securities is the same as for financial reporting purposes. 4 See Notes to Financial Statements Dryden Government Securities Trust U.S. Treasury Money Market Series Portfolio of Investments as of May 31, 2003 (Unaudited)
Principal Amount (000) Description Value (Note 1) - ----------------------------------------------------------------------------------------- United States Treasury Bills 82.7% $ 18,305 1.16%, 6/13/03 $ 18,297,922 50,000 1.0825%, 6/19/03 49,972,937 50,000 1.09285%, 6/19/03 49,972,679 17,745 1.10%, 6/19/03 17,735,240 25,000 1.105%, 6/19/03 24,986,188 137 1.16%, 6/26/03 136,890 38,667 1.15%, 7/3/03 38,627,474 10,000 1.15%, 7/17/03 9,985,306 10,000 1.18%, 7/17/03 9,984,922 20,000 1.1675%, 7/24/03 19,965,623 144 1.17%, 7/24/03 143,752 9,948 1.08%, 7/31/03 9,930,094 15,000 1.16%, 7/31/03 14,971,000 25,000 1.095%, 8/7/03 24,949,052 25,000 1.10%, 8/7/03 24,948,819 468 1.16%, 8/7/03 466,990 25,000 1.07%, 8/14/03 24,945,014 24,325 1.16%, 8/14/03 24,266,998 -------------- 364,286,900 - ------------------------------------------------------------------------------------- United States Treasury Notes 17.2% 42,397 3.00%, 11/30/03 42,745,535 25,000 3.625%, 3/31/04 25,509,062 5,000 3.375%, 4/30/04 5,095,290 2,607 5.25%, 5/15/04 2,704,970 -------------- 76,054,857 -------------- Total Investments 99.9% (amortized cost $440,341,757(a)) 440,341,757 Other assets in excess of liabilities 0.1% 310,124 -------------- Net Assets 100% $ 440,651,881 -------------- -------------- - ------------------------------ (a) Federal income tax basis of portfolio securities is the same as for financial reporting purposes.
See Notes to Financial Statements 5 Dryden Government Securities Trust As of May 31, 2003 Statement of Assets and Liabilities (Unaudited)
U.S. Treasury Money Money Market Series Market Series - ---------------------------------------------------------------------------------------- ASSETS Investments, at amortized cost $ 663,115,213 $ 440,341,757 Cash -- 1,009 Receivable for Series shares sold 4,720,929 6,663,287 Interest receivable 874,199 813,945 Other assets 9,443 5,676 ------------- ------------- Total assets 668,719,784 447,825,674 ------------- ------------- LIABILITIES Payable for investments purchased 49,030,881 -- Payable for Series shares reacquired 7,314,809 6,766,837 Accrued expenses and other liabilities 330,401 136,228 Management fee payable 208,158 153,402 Dividends payable 68,719 57,421 Distribution fee payable 62,511 47,279 Payable to Custodian 33,079 -- Deferred trustee's fees 10,869 12,626 ------------- ------------- Total liabilities 57,059,427 7,173,793 ------------- ------------- NET ASSETS $ 611,660,357 $ 440,651,881 ------------- ------------- ------------- ------------- Net assets were comprised of: Shares of beneficial interest, at par ($.01 per share) $ 6,116,604 $ 4,406,519 Paid-in capital in excess of par 605,543,753 436,245,362 ------------- ------------- Net assets, May 31, 2003 $ 611,660,357 $ 440,651,881 ------------- ------------- ------------- ------------- Class A: Net asset value, offering price and redemption price per share ($586,848,833 / 586,848,833 shares of beneficial interest issued and outstanding) $1.00 ------------- ------------- ($434,368,309 / 434,368,309 shares of beneficial interest issued and outstanding) $1.00 ------------- ------------- Class Z: Net asset value, offering price and redemption price per share ($24,811,524 / 24,811,524 shares of beneficial interest issued and outstanding) $1.00 ------------- ------------- ($6,283,572 / 6,283,572 shares of beneficial interest issued and outstanding) $1.00 ------------- -------------
6 See Notes to Financial Statements Dryden Government Securities Trust Six Months Ended May 31, 2003 Statement of Operations (Unaudited)
U.S. Treasury Money Money Market Series Market Series - ------------------------------------------------------------------------------------------ NET INVESTMENT INCOME Income Interest $ 4,615,849 $ 3,962,210 ------------- ------------- Expenses Management fee 1,220,557 1,223,486 Distribution fee--Class A 368,847 378,669 Transfer agent's fees and expenses 825,000 112,000 Reports to shareholders 50,000 13,000 Registration fees 45,000 45,000 Custodian's fees and expenses 40,000 39,000 Legal fees and expenses 15,000 15,000 Audit fee 13,000 13,000 Trustees' fees 8,000 9,000 Insurance expense 6,000 3,000 Miscellaneous 3,751 369 ------------- ------------- Total expenses 2,595,155 1,851,524 ------------- ------------- Net investment income 2,020,694 2,110,686 ------------- ------------- REALIZED GAIN ON INVESTMENTS Net realized gain on investment transactions 5,398 54,962 ------------- ------------- NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 2,026,092 $ 2,165,648 ------------- ------------- ------------- -------------
See Notes to Financial Statements 7 Dryden Government Securities Trust Money Market Series Statement of Changes in Net Assets (Unaudited)
Six Months Year Ended Ended May 31, 2003 November 30, 2002 - ----------------------------------------------------------------------------------- INCREASE IN NET ASSETS Operations Net investment income $ 2,020,694 $ 7,353,632 Net realized gain on investment transactions 5,398 108,891 ----------------- ----------------- Net increase in net assets resulting from operations 2,026,092 7,462,523 ----------------- ----------------- Dividends and distributions (Note 1) Class A (1,947,808) (7,104,781) Class Z (78,284) (357,742) ----------------- ----------------- (2,026,092) (7,462,523) ----------------- ----------------- Series share transactions(a) (Note 5) Net proceeds from shares subscribed 482,769,885 898,494,487 Net asset value of shares issued in reinvestment of dividends and distributions 2,009,200 7,518,194 Cost of shares reacquired (503,705,287) (914,652,030) ----------------- ----------------- Net decrease in net assets from Series share transactions (18,926,202) (8,639,349) ----------------- ----------------- Total decrease (18,926,202) (8,639,349) NET ASSETS Beginning of period 630,586,559 639,225,908 ----------------- ----------------- End of period $ 611,660,357 $ 630,586,559 ----------------- ----------------- ----------------- ----------------- - ------------------------------ (a) At $1.00 per share for the Money Market Series.
8 See Notes to Financial Statements Dryden Government Securities Trust U.S. Treasury Money Market Series Statement of Changes in Net Assets (Unaudited)
Six Months Year Ended Ended May 31, 2003 November 30, 2002 - ----------------------------------------------------------------------------------- INCREASE IN NET ASSETS Operations Net investment income $ 2,110,686 $ 6,213,512 Net realized gain on investment transactions 54,962 327,216 ----------------- ----------------- Net increase in net assets resulting from operations 2,165,648 6,540,728 ----------------- ----------------- Dividends and distributions (Note 1) Class A (2,141,837) (6,462,685) Class Z (23,811) (78,043) ----------------- ----------------- (2,165,648) (6,540,728) ----------------- ----------------- Series share transactions(a) (Note 5) Net proceeds from shares subscribed 3,193,182,816 2,921,203,514 Net asset value of shares issued in reinvestment of dividends and distributions 1,821,493 6,027,099 Cost of shares reacquired (3,141,620,914) (3,049,069,855) ----------------- ----------------- Net increase (decrease) in net assets from Series share transactions 53,383,395 (121,839,242) ----------------- ----------------- Total increase (decrease) 53,383,395 (121,839,242) NET ASSETS Beginning of period 387,268,486 509,107,728 ----------------- ----------------- End of period $ 440,651,881 $ 387,268,486 ----------------- ----------------- ----------------- ----------------- - ------------------------------ (a) At $1.00 per share for the U.S. Treasury Money Market Series.
See Notes to Financial Statements 9 Dryden Government Securities Trust Notes to Financial Statements (Unaudited) Dryden Government Securities Trust (the 'Fund'), formerly known as Prudential Government Securities Trust, is registered under the Investment Company Act of 1940 as a diversified, open-end management investment company. The Fund consists of two series: the Money Market Series and the U.S. Treasury Money Market Series (each a 'Series'); the monies of each series are invested in separate, independently managed portfolios. The Money Market Series seeks high current income, preservation of capital and maintenance of liquidity by investing primarily in a diversified portfolio of short-term money market instruments issued or guaranteed by the U.S. Government or its agencies or instrumentalities that mature in 13 months or less. The U.S. Treasury Money Market Series seeks high current income consistent with the preservation of principal and liquidity by investing exclusively in U.S. Treasury obligations that mature in 13 months or less. Note 1. Significant Accounting Policies The following is a summary of significant accounting policies followed by the Fund and each Series in the preparation of its financial statements. Securities Valuations: Portfolio securities are valued at amortized cost, which approximates market value. The amortized cost method of valuation involves valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of any discount or premium. Repurchase Agreements: In connection with transactions in repurchase agreements with U.S. financial institutions, it is the Fund's policy that its custodian or designated subcustodians, as the case may be under triparty repurchase agreements, take possession of the underlying collateral securities, the value of which exceeds the principal amount of the repurchase transaction, including accrued interest. To the extent that any repurchase agreement exceeds one business day, the value of the collateral is marked-to-market on a daily basis to ensure the adequacy of the collateral. If the seller defaults and the value of the collateral declines or if bankruptcy proceedings are commenced with respect to the seller of the security, realization of the collateral by the Fund may be delayed or limited. Securities Transactions and Investment Income: Securities transactions are recorded on the trade date. Realized gains (losses) on sales of securities are calculated on the identified cost basis. Interest income, including amortization of premium and accretion of discount on debt securities, is recorded on the accrual basis. Expenses are recorded on the accrual basis, which may require the use of certain estimates by management. The Fund's expenses are allocated to the respective Series on the basis of relative net assets except for Series specific expenses which are allocated at a Series or class level. 10 Dryden Government Securities Trust Notes to Financial Statements (Unaudited) Cont'd. Dividends and Distributions: The Series declare daily dividends from net investment income and net realized short-term capital gains or losses. Payment of dividends is made monthly. Income distributions and realized capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. Federal Income Taxes: For federal income tax purposes, each Series of the Fund is treated as a separate taxable entity. It is each Series' policy to continue to meet the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to its shareholders. Therefore, no federal income tax provision is required. Note 2. Agreements The Fund has a management agreement with Prudential Investments LLC ('PI'). Pursuant to this agreement, PI has responsibility for all investment advisory services and supervises the subadviser's performance of such services. PI has entered into a subadvisory agreement with Prudential Investment Management, Inc. ('PIM'). PIM furnishes investment advisory services in connection with the management of the Fund. PI pays for the services of PIM, the compensation of officers of the Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund bears all other costs and expenses. The management fee paid to PI is computed daily and payable monthly based on the average daily net assets of each Series. With respect to the Money Market Series, the management fee is payable as follows: .40 of 1% of average daily net assets up to $1 billion, .375 of 1% of the average daily net assets between $1 billion and $1.5 billion and .35 of 1% in excess of $1.5 billion. With respect to the U.S. Treasury Money Market Series, the management fee is payable at an annual rate of .40 of 1% of the average daily net assets of the Series. The Fund has a distribution agreement with Prudential Investment Management Services LLC ('PIMS'), which acts as the distributor of the Class A and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund's Class A shares, pursuant to a plan of distribution (the 'Class A Plan'), regardless of expenses actually incurred by PIM. The distribution fees for Class A shares are accrued daily and payable monthly. The distributor pays various broker-dealers for account servicing fees and for the expenses incurred by such broker-dealers. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund. 11 Dryden Government Securities Trust Notes to Financial Statements (Unaudited) Cont'd. Pursuant to the Class A Plan, the Money Market Series and the U.S. Treasury Money Market Series compensate PIMS at an annual rate of 0.125 of 1% of each Series' Class A average daily net assets. PI, PIM and PIMS 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. During the six months ended May 31, 2003, the Fund incurred fees of approximately $420,200 and $111,600, respectively, for the Money Market Series and U.S. Treasury Money Market Series. As of May 31, 2003, approximately $70,900 and $16,800 of such fees were due to PMFS, respectively, for the Money Market Series and U.S. Treasury Money Market Series. Transfer agent fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates. Note 4. Joint Repurchase Agreement Account The Money Market Series, along with other affiliated registered investment companies, transfers uninvested cash balances into a single joint account, the daily aggregate balance of which is invested in one or more repurchase agreements collateralized by U.S. Treasury or federal agency obligations. As of May 31, 2003, the Money Market Series had a 11.70% undivided interest in the joint account. The undivided interest for the Fund represents $26,000,000 in principal amount. As of such date, each repurchase agreement in the joint account and the collateral therefore were as follows: Greenwich Capital Markets, Inc., 1.37%, in the principal amount of $74,084,000, repurchase price $74,092,458, due 6/2/03. The value of the collateral including accrued interest was $75,567,236. SBC Warburg Asia Limited, 1.36%, in the principal amount of $74,084,000, repurchase price $74,092,396, due 6/2/03. The value of the collateral including accrued interest was $75,565,882. J.P. Morgan Chase, 1.35%, in the principal amount of $74,084,000, repurchase price $74,092,334, due 6/2/03. The value of the collateral including accrued interest was $75,566,458. Note 5. Capital The Fund offers Class A and Class Z shares. Neither Class A nor Class Z shares are subject to any sales or redemption charge. Class Z shares are offered exclusively for 12 Dryden Government Securities Trust Notes to Financial Statements (Unaudited) Cont'd. sale to a limited group of investors. Each series has authorized an unlimited number of shares of beneficial interest at $.01 par value. Transactions in shares of beneficial interest for the Money Market Series were as follows:
Six Months Ended Year Ended May 31, November 30, Class A 2003 2002 - ------------------------------------------------- ----------------- -------------- Shares sold 474,109,902 860,460,410 Shares issued in reinvestment of dividends and distributions 1,929,443 7,153,338 Shares reacquired (496,774,922) (868,067,278) ----------------- -------------- Net increase (decrease) in shares outstanding (20,735,577) (453,530) ----------------- -------------- ----------------- -------------- Class Z - ------------------------------------------------- Shares sold 8,659,983 38,034,077 Shares issued in reinvestment of dividends and distributions 79,757 364,856 Shares reacquired (6,930,365) (46,584,752) ----------------- -------------- Net increase (decrease) in shares outstanding 1,809,375 (8,185,819) ----------------- -------------- ----------------- --------------
Transactions in shares of beneficial interest for the U.S. Treasury Money Market Series were as follows:
Six Months Ended Year Ended May 31, November 30, Class A 2003 2002 - ------------------------------------------------- ----------------- -------------- Shares sold 3,191,639,962 2,917,283,152 Shares issued in reinvestment of dividends and distributions 1,797,696 5,947,387 Shares reacquired (3,140,810,567) (3,043,851,561) ----------------- -------------- Net increase (decrease) in shares outstanding 52,627,091 (120,621,022) ----------------- -------------- ----------------- -------------- Class Z - ------------------------------------------------- Shares sold 1,542,854 3,920,362 Shares issued in reinvestment of dividends and distributions 23,797 79,712 Shares reacquired (810,347) (5,218,294) ----------------- -------------- Net increase (decrease) in shares outstanding 756,304 (1,218,220) ----------------- -------------- ----------------- --------------
13 Dryden Government Securities Trust Money Market Series Financial Highlights (Unaudited)
Class A ---------------- Six Months Ended May 31, 2003 - ---------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.000 ---------------- Net investment income and net realized gain on investment transactions 0.003 Dividends and distributions (0.003) ---------------- Net asset value, end of period $ 1.000 ---------------- ---------------- TOTAL RETURN(a): 0.33% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000) $586,849 Average net assets (000) $591,777 Ratios to average net assets: Expenses, including distribution and service (12b-1) fees 0.85%(b) Expenses, excluding distribution and service (12b-1) fees 0.73%(b) Net investment income 0.66%(b)
- ------------------------------ (a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total return for period less than one full year is not annualized. (b) Annualized. 14 See Notes to Financial Statements Dryden Government Securities Trust Money Market Series Financial Highlights (Unaudited) Cont'd.
Class A - ---------------------------------------------------------------------------------------------------------- Year Ended November 30, - ---------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- ---------------- 0.012 0.039 0.053 0.042 0.048 (0.012) (0.039) (0.053) (0.042) (0.048) - ---------------- ---------------- ---------------- ---------------- ---------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- ---------------- - ---------------- ---------------- ---------------- ---------------- ---------------- 1.19% 4.04% 5.43% 4.31% 4.87% $607,585 $608,038 $558,307 $576,868 $590,004 $612,109 $589,136 $559,103 $594,266 $589,649 0.77% 0.83% 0.91% 0.90% 0.80% 0.64% 0.70% 0.79% 0.77% 0.67% 1.14% 3.82% 5.35% 4.23% 4.77%
See Notes to Financial Statements 15 Dryden Government Securities Trust Money Market Series Financial Highlights (Unaudited) Cont'd.
Class Z ---------------- Six Months Ended May 31, 2003 - ---------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.000 -------- Net investment income and net realized gain on investment transactions 0.004 Dividends and distributions (0.004) -------- Net asset value, end of period $ 1.000 -------- -------- TOTAL RETURN(a): 0.39% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000) $ 24,812 Average net assets (000) $ 20,178 Ratios to average net assets: Expenses, including distribution and service (12b-1) fees 0.73%(b) Expenses, excluding distribution and service (12b-1) fees 0.73%(b) Net investment income 0.78%(b)
- ------------------------------ (a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each year reported and includes reinvestment of dividends and distributions. Total return for period less than one full year is not annualized. (b) Annualized. 16 See Notes to Financial Statements Dryden Government Securities Trust Money Market Series Financial Highlights (Unaudited) Cont'd.
Class Z - ---------------------------------------------------------------------------------------------------------- Year Ended November 30, - ---------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- ---------------- 0.013 0.040 0.054 0.044 0.049 (0.013) (0.040) (0.054) (0.044) (0.049) - ---------------- ---------------- ---------------- ---------------- ---------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- ---------------- - ---------------- ---------------- ---------------- ---------------- ---------------- 1.32% 4.16% 5.56% 4.44% 5.00% $ 23,002 $ 31,188 $ 38,534 $ 41,546 $ 26,901 $ 27,790 $ 37,641 $ 34,243 $ 32,984 $ 19,236 0.64% 0.70% 0.79% 0.77% 0.67% 0.64% 0.70% 0.79% 0.77% 0.67% 1.27% 4.03% 5.48% 4.38% 4.89%
See Notes to Financial Statements 17 Dryden Government Securities Trust U.S. Treasury Money Market Series Financial Highlights (Unaudited)
Class A ---------------- Six Months Ended May 31, 2003 - ---------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.000 ---------------- Net investment income and net realized gain on investment transactions 0.003 Dividends and distributions (0.003) ---------------- Net asset value, end of period $ 1.000 ---------------- ---------------- TOTAL RETURN(a) 0.35% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000) $434,368 Average net assets (000) $607,535 Ratios to average net assets: Expenses, including distribution and service (12b-1) fees 0.61%(c) Expenses, excluding distribution and service (12b-1) fees 0.48%(c) Net investment income 0.71%(c)
- ------------------------------ (a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total return for period less than one full year is not annualized. (b) Reflects overall Series ratio for investment income and non-class specific expenses. (c) Annualized. 18 See Notes to Financial Statements Dryden Government Securities Trust U.S. Treasury Money Market Series Financial Highlights (Unaudited) Cont'd.
Class A - ---------------------------------------------------------------------------------------------------------- Year Ended November 30, - ---------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- ---------------- 0.013 0.038 0.052 0.041 0.046 (0.013) (0.038) (0.052) (0.041) (0.046) - ---------------- ---------------- ---------------- ---------------- ---------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- ---------------- - ---------------- ---------------- ---------------- ---------------- ---------------- 1.32% 4.01% 5.27% 4.19% 4.66% $381,741 $502,362 $365,154 $321,641 $336,985 $492,503 $444,533 $396,454 $383,772 $420,140 0.63% 0.62%(b) 0.61% 0.63% 0.63% 0.50% 0.49%(b) 0.48% 0.51% 0.51% 1.25% 3.92%(b) 5.09% 4.08% 4.57%
See Notes to Financial Statements 19 Dryden Government Securities Trust U.S. Treasury Money Market Series Financial Highlights (Unaudited) Cont'd.
Class Z ---------------- Six Months Ended May 31, 2003 - ---------------------------------------------------------------------------------------- PER SHARE OPERATING PERFORMANCE: Net asset value, beginning of period $ 1.000 ---------------- Net investment income and net realized gain on investment transactions 0.004 Dividends and distributions (0.004) ---------------- Net asset value, end of period $ 1.000 ---------------- ---------------- TOTAL RETURN(a) 0.41% RATIOS/SUPPLEMENTAL DATA: Net assets, end of period (000) $ 6,284 Average net assets (000) $ 5,889 Ratios to average net assets: Expenses, including distribution and service (12b-1) fees 0.48%(d) Expenses, excluding distribution and service (12b-1) fees 0.48%(d) Net investment income 0.84%(d)
- ------------------------------ (a) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported and includes reinvestment of dividends and distributions. Total return for period less than one full year is not annualized. (b) Figure is actual and not rounded to nearest thousand. (c) Reflects overall Series ratio for investment income and non-class specific expenses. (d) Annualized. 20 See Notes to Financial Statements Dryden Government Securities Trust U.S. Treasury Money Market Series Financial Highlights (Unaudited) Cont'd.
Class Z - ---------------------------------------------------------------------------------------------------------- Year Ended November 30, - ---------------------------------------------------------------------------------------------------------- 2002 2001 2000 1999 1998 - ---------------------------------------------------------------------------------------------------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- ---------------- 0.014 0.040 0.053 0.043 0.049 (0.014) (0.040) (0.053) (0.043) (0.049) - ---------------- ---------------- ---------------- ---------------- ---------------- $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 - ---------------- ---------------- ---------------- ---------------- ---------------- - ---------------- ---------------- ---------------- ---------------- ---------------- 1.45% 4.14% 5.40% 4.37% 5.05% $ 5.527 $ 6,746 $ 5,510 $ 2,013 $ 211(b) $ 5,514 $ 5,870 $ 2,191 $ 1,942 $ 209(b) 0.50% 0.49%(c) 0.48% 0.51% 0.51% 0.50% 0.49%(c) 0.48% 0.51% 0.51% 1.37% 4.04%(c) 5.31% 4.19% 4.91%
See Notes to Financial Statements 21 www.jennisondryden.com (800) 225-1852 FOR MORE INFORMATION JennisonDryden Mutual Funds Gateway Center Three 100 Mulberry Street Newark, NJ 07102-4077 (800) 225-1852 Trustees David E.A. Carson Robert F. Gunia Robert E. La Blanc Douglas H. McCorkindale Stephen P. Munn Richard A. Redeker Judy A. Rice Robin B. Smith Stephen Stoneburn Clay T. Whitehead Officers Judy A. Rice, President Robert F. Gunia, Vice President Grace C. Torres, Treasurer Marguerite E.H. Morrison, Chief Legal Officer and Assistant Secretary Deborah A. Docs, Secretary Maryanne Ryan, Anti-Money Laundering Compliance Officer Manager Prudential Investments LLC Gateway Center Three 100 Mulberry Street Newark, NJ 07102-4077 Investment Adviser Prudential Investment Management, Inc. Gateway Center Two Newark, NJ 07102 Distributor Prudential Investment Management Services LLC Gateway Center Three, 14th Floor 100 Mulberry Street Newark, NJ 07102-4077 Custodian State Street Bank and Trust Company One Heritage Drive North Quincy, MA 02171 Transfer Agent Prudential Mutual Fund Services LLC PO Box 8098 Philadelphia, PA 19101 Independent Auditors PricewaterhouseCoopers LLP 1177 Avenue of the Americas New York, NY 10036 Legal Counsel Shearman & Sterling LLP 599 Lexington Avenue New York, NY 10022 Series Symbols Nasdaq CUSIP - -------------- ------ ----- Money Market Series Class A PBGXX 262434301 Class Z PGZXX 262434400 U.S. Treasury Money Market Series Class A PUSXX 262434608 Class Z PTZXX 262434707 The views expressed in this report and information about the Trust's portfolio holdings are for the period covered by this report and are subject to change thereafter. The accompanying financial statements as of May 31, 2003, were not audited and, accordingly, no auditor's opinion is expressed on them. MUTUAL FUNDS: ARE NOT INSURED BY THE FDIC OR ANY FEDERAL MAY LOSE VALUE ARE NOT A DEPOSIT OF OR GUARANTEED BY GOVERNMENT AGENCY ANY BANK OR ANY BANK AFFILIATE
(LOGO) Series Symbols Nasdaq CUSIP - -------------- ------ ----- Money Market Series Class A PBGXX 262434301 Class Z PGZXX 262434400 U.S. Treasury Money Market Series Class A PUSXX 262434608 Class Z PTZXX 262434707 MF100E2 IFS-A081649 Item 2 -- Code of Ethics -- Not required in this filing Item 3 -- Audit Committee Financial Expert -- Not required in this filing Item 4 -- Principal Accountant Fees and Services -- Not required in this filing Item 5 -- Reserved Item 6 -- Reserved Item 7 -- Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies -- Not required in this filing Item 8 -- Reserved Item 9 -- Controls and Procedures (a) It is the conclusion of the registrant's principal executive officer and principal financial officer that the effectiveness of the registrant's current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission's rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant's principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure. (b) There have been no significant changes in the registrant's internal controls or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Item 10 -- Exhibits (a) Code of Ethics -- Not required in this filing (b) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act -- Attached hereto 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. Dryden Government Securities Trust (formerly, Prudential Government Securities Trust) By: /s/ Deborah A. Docs ---------------------------------------------------------- Deborah A. Docs Secretary Date: August 7, 2003 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/ Judy A. Rice ---------------------------------------------------------- Judy A. Rice President Date: August 7, 2003 By: /s/ Grace C. Torres ---------------------------------------------------------- Grace C. Torres Treasurer Date: August 7, 2003 Attached hereto as an exhibit are the certifications pursuant to Section 906 of the Sarbanes-Oxley Act. EX-99.CERT 3 mf16092ex99cert.txt SECTION 302 CERTIFICATIONS Item 10 Dryden Government Securities Trust Semi-Annual period ending 05/31/03 File No. 811-03264 CERTIFICATIONS I, Judy A. Rice, certify that: 1. I have reviewed this report on Form N-CSR of Dryden Government Securities Trust; 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a) designed such disclosure controls and procedures 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) evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c) presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a) all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 28, 2003 /s/Judy A. Rice ------------------------ Judy A. Rice President and Principal Executive Officer Item 10 Dryden Government Securities Trust Semi-Annual period ending 05/31/03 File No. 811-03264 CERTIFICATIONS I, Grace C. Torres, certify that: 1. I have reviewed this report on Form N-CSR of Dryden Government Securities Trust; 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 financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report. 4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-2(c) under the Investment Company Act of 1940) for the registrant and have: a. designed such disclosure controls and procedures 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. evaluated the effectiveness of the registrant's disclosure controls and procedures as of a date within 90 days prior to the filing date of this report (the "Evaluation Date"); and c. presented in this report our conclusions about the effectiveness of the disclosure controls and procedures based on our evaluation as of the Evaluation Date; 5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): a. all significant deficiencies in the design or operation of internal controls which could adversely affect the registrant's ability to record, process, summarize, and report financial data and have identified for the registrant's auditors any material weaknesses in internal controls; and b. any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls; and 6. The registrant's other certifying officers and I have indicated in this report whether or not there were significant changes in internal controls or in other factors that could significantly affect internal controls subsequent to the date of our most recent evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses. Date: July 28, 2003 /s/Grace C. Torres ------------------------ Grace C. Torres Treasurer and Principal Financial Officer -----END PRIVACY-ENHANCED MESSAGE-----