N-CSRS 1 dncsrs.htm JENNISON VALUE FUND Jennison Value Fund

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:    811-04864
Exact name of registrant as specified in charter:    Jennison Value Fund
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:    10/31/2006
Date of reporting period:    4/30/2006

Item 1 – Reports to Stockholders

 

LOGO

Jennison Value Fund

 

APRIL 30, 2006   SEMIANNUAL REPORT

 

LOGO

FUND TYPE

Large-capitalization stock

 

OBJECTIVE

Capital appreciation

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 April 30, 2006, were not audited, and accordingly, no auditor’s opinion is expressed on them.

 

JennisonDryden is a registered trademark of The Prudential Insurance Company of America.

 

LOGO

 

 

June 16, 2006

 

Dear Shareholder:

 

We hope you find the semiannual report for the Jennison Value Fund informative and useful. As a JennisonDryden mutual fund shareholder, you may be thinking about where you can find additional growth opportunities. You could invest in last year’s top-performing asset class and hope that history repeats itself or you could stay in cash while waiting for the “right moment” to invest.

 

Instead, we believe it is better to take advantage of developing domestic and global investment opportunities through a diversified portfolio of stock and bond mutual funds. A diversified asset allocation offers two potential advantages. It helps you manage downside risk by not being overly exposed to any particular asset class, plus it gives you a better opportunity to have at least some of your assets in the right place at the right time. Your financial professional can help you create a diversified investment plan that may include mutual funds covering all the basic asset classes and that reflects your personal investor profile and tolerance for risk.

 

JennisonDryden Mutual Funds gives you a wide range of choices that can help you make progress toward your financial goals. Our funds offer the experience, resources, and professional discipline of three leading asset managers. They are recognized and respected in the institutional market and by discerning investors for excellence in their respective strategies. JennisonDryden equity funds are advised by Jennison Associates LLC and Quantitative Management Associates LLC (QMA). Prudential Investment Management, Inc. (PIM) advises the JennisonDryden fixed income and money market funds. Jennison Associates, QMA, and PIM are registered investment advisors and Prudential Financial companies.

 

Thank you for choosing JennisonDryden Mutual Funds.

 

Sincerely,

 

LOGO

 

Judy A. Rice, President

Jennison Value Fund

 

Jennison Value Fund   1

Your Fund’s Performance

 

 

Fund objective

The investment objective of the Jennison Value Fund is capital appreciation. There can be no assurance that the Fund will achieve its investment objective.

 

Performance data quoted represent past performance. Past performance does not guarantee future results. The investment return and principal value of an investment will fluctuate, so that an investor’s shares, when redeemed, may be worth more or less than their original cost. Current performance may be lower or higher than the past performance data quoted. An investor may obtain performance data as of the most recent month-end by visiting our website at www.jennisondryden.com or by calling (800) 225-1852. The maximum initial sales charge is 5.50% (Class A shares).

 

Cumulative Total Returns1 as of 4/30/06        
     Six Months     One Year     Five Years     Ten Years     Since Inception2  

Class A

    15.27 %   29.11 %   39.89 %   173.60 %   501.66 %

Class B

    14.88     28.14     34.73     153.88     553.47  

Class C

    14.82     28.14     34.72     153.87     218.63  

Class R

    14.79     N/A     N/A     N/A     23.76  

Class Z

    15.41     29.37     41.58     180.06     187.33  

S&P 500 Index3

    9.63     15.41     14.22     135.40     ***  

Russell 1000 Value Index4

    12.87     18.30     42.25     189.31     ****  

Lipper Multi-Cap Value Funds Avg.5

    11.99     18.21     39.19     155.26     *****  

 

Average Annual Total Returns1 as of 3/31/06  
     One Year     Five Years     Ten Years     Since Inception2  

Class A

    15.65 %   6.36 %   9.87 %   11.17 %

Class B

    16.40     6.59     9.67     10.14  

Class C

    20.45     6.76     9.67     10.23  

Class R

    N/A     N/A     N/A     N/A  

Class Z

    22.64     7.82     10.78     10.78  

S&P 500 Index3

    11.72     3.97     8.95     ***  

Russell 1000 Value Index4

    13.31     7.79     10.97     ****  

Lipper Multi-Cap Value Funds Avg.5

    12.99     7.45     9.66     *****  

 

The cumulative total returns do not reflect the deduction of applicable sales charges. If reflected, the applicable sales charges would reduce the cumulative total returns performance quoted. Class A shares are subject to a maximum front-end sales charge of 5.50%. Under certain circumstances, Class A shares may be subject to a contingent deferred sales charge (CDSC) of 1%. Class B and Class C shares are subject to a maximum CDSC of 5% and 1%, respectively. Class Z shares are not subject to a sales charge.

 

2   Visit our website at www.jennisondryden.com

 

 

1Source: Prudential Investments LLC and Lipper Inc. The average annual total returns take into account applicable sales charges. During certain periods shown, fee waivers and/or expense reimbursements were in effect. Without such fee waivers and expense reimbursements, the returns for the share classes would have been lower. Class A, Class B, Class C, and Class R shares are subject to an annual distribution and service (12b-1) fee of up to 0.30%, 1.00%, 1.00%, and 0.75%, respectively. Approximately seven years after purchase, Class B shares will automatically convert to Class A shares on a quarterly basis. Class Z shares are not subject to a 12b-1 fee. The returns in the tables do not reflect the deduction of taxes that a shareholder would pay on Fund distributions or following the redemption of Fund shares. Without waiver of fees and/or expense subsidization, the Fund’s returns would have been lower.

2Inception dates: Class A, 1/22/90; Class B, 1/22/87; Class C, 8/1/94; Class R, 6/3/05; and Class Z, 3/1/96.

3The Standard & Poor’s 500 Composite Stock Price Index (S&P 500 Index) is an unmanaged index of 500 stocks of large U.S. companies. It gives a broad look at how stock prices have performed in the United States.

4The Russell 1000 Value Index is an unmanaged index comprising those securities in the Russell 1000 Index with a less-than-average growth orientation. Companies in this index generally have low price-to-book and price-to-earnings ratios, higher dividend yields, and lower forecasted growth values.

5The Lipper Multi-Cap Value Funds Average (Lipper Average) represents returns based on an average return of all funds in the Lipper Multi-Cap Value Funds category for the periods noted. Funds in the Lipper Average typically have a below-average price-to-earnings ratio, price-to-book ratio, and three-year sales-per-share growth value compared with the S&P SuperComposite 1500 Index.

 

Investors cannot invest directly in an index. The returns for the S&P 500 Index, the Russell 1000 Value Index, and the Lipper Average would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.

 

***S&P 500 Index Since Inception cumulative total returns as of 4/30/06 are 462.50% for Class A, 646.85% for Class B, 251.45% for Class C, 11.85% for Class R, and 141.17% for Class Z. S&P 500 Index Since Inception average annual total returns as of 3/31/06 are 11.18% for Class A, 10.98% for Class B, 11.25% for Class C, and 8.98% for Class Z. No average annual total returns since inception are shown for Class R shares because this share class has been in existence less than 12 months.

**** Russell 1000 Value Index Since Inception cumulative total returns as of 4/30/06 are 581.41% for Class A, 787.67% for Class B, 315.71% for Class C, 15.52% for Class R, and 195.36% for Class Z. Russell 1000 Value Index Since Inception average annual total returns as of 3/31/06 are 12.43% for Class A, 11.92% for Class B, 12.75% for Class C, and 11.06% for Class Z. No average annual total returns since inception are shown for Class R shares because this share class has been in existence less than 12 months.

*****Lipper Average Since Inception cumulative total returns as of 4/30/06 are 513.50% for Class A, 666.81% for Class B, 258.78% for Class C, 14.82% for Class R, and 165.52% for Class Z. Lipper Average Since Inception average annual total returns as of 3/31/06 are 11.53% for Class A, 10.87% for Class B, 11.22% for Class C, and 9.79% for Class Z. No average annual total returns since inception are shown for Class R shares because this share class has been in existence less than 12 months.

 

Jennison Value Fund   3

Your Fund’s Performance (continued)

 

Five Largest Holdings expressed as a percentage of net assets as of 4/30/06       

Citigroup, Inc., Diversified Financial Services

    3.0 %

Bank of America Corp., Commercial Banks

   2.8  

Altria Group, Inc., Tobacco

   2.6  

The Kroger Co., Food & Staples Retailing

    2.4  

Suncor Energy, Inc. (Canada), Oil, Gas & Consumable Fuels

   2.3  

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

 

Five Largest Industries expressed as a percentage of net assets as of 4/30/06       

Oil, Gas & Consumable Fuels

    11.3 %

Capital Markets

    7.9  

Insurance

    6.7  

Diversified Financial Services

    4.4  

Media

    4.4  

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

 

4   Visit our website at www.jennisondryden.com

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 November 1, 2005, at the beginning of the period, and held through the six-month period ended April 30, 2006.

 

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 JennisonDryden or Strategic Partners Funds, including the Fund, that you own. You should consider the additional fees that were charged to your Fund account over the six-month period when you estimate the total ongoing expenses paid over the period and the impact of these fees on your ending account value, as these additional expenses are not reflected in the information provided in the expense table. Additional fees have the effect of reducing investment returns.

 

Actual Expenses

The first line for each share class in the 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

 

Jennison Value Fund   5

Fees and Expenses (continued)

 

 

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

 

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

 

Jennison Value Fund  

Beginning Account
Value

November 1, 2005

  

Ending Account
Value

April 30, 2006

   Annualized
Expense Ratio
Based on the
Six-Month Period		     Expenses Paid
During the Six-
Month Period*
                             
Class A   Actual   $ 1,000.00   $ 1,152.70   1.00 %   $ 5.34
    Hypothetical   $ 1,000.00   $ 1,019.84   1.00 %   $ 5.01
                             
Class B   Actual   $ 1,000.00   $ 1,148.80   1.75 %   $ 9.32
    Hypothetical   $ 1,000.00   $ 1,016.12   1.75 %   $ 8.75
                             
Class C   Actual   $ 1,000.00   $ 1,148.20   1.75 %   $ 9.32
    Hypothetical   $ 1,000.00   $ 1,016.12   1.75 %   $ 8.75
                             
Class R   Actual   $ 1,000.00   $ 1,147.90   1.25 %   $ 6.66
    Hypothetical   $ 1,000.00   $ 1,018.60   1.25 %   $ 6.26
                             
Class Z   Actual   $ 1,000.00   $ 1,154.10   0.75 %   $ 4.01
    Hypothetical   $ 1,000.00   $ 1,021.08   0.75 %   $ 3.76
                             

* 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 181 days in the six-month period ended April 30, 2006, and divided by the 365 days in the Fund’s fiscal year ending October 31, 2006 (to reflect the six-month period).

 

6   Visit our website at www.jennisondryden.com

Portfolio of Investments

 

as of April 30, 2006 (Unaudited)

 

Shares      Description    Value (Note 1)
               

LONG-TERM INVESTMENTS    97.0%

       

COMMON STOCKS

       

Aerospace & Defense    3.3%

       
569,400     

Honeywell International, Inc.

    $ 24,199,500
157,200     

Lockheed Martin Corp.

      11,931,480
           
              36,130,980

Building Products    1.3%

       
321,000     

American Standard Cos., Inc.

      13,973,130

Capital Markets    7.9%

       
395,400     

Bank of New York Co., Inc. (The)

      13,898,310
254,700     

Lazard Ltd. (Class A)(b)

      11,308,680
79,500     

Lehman Brothers Holdings, Inc.

      12,016,425
228,000     

Mellon Financial Corp.

      8,579,640
316,500     

Merrill Lynch & Co., Inc.

      24,136,290
149,800     

UBS AG

      17,504,130
           
              87,443,475

Chemicals    2.5%

       
397,900     

E.I. du Pont de Nemours & Co.(b)

      17,547,390
647,100     

Mosaic Co. (The)(a)(b)

      9,706,500
           
              27,253,890

Commercial Banks    4.0%

       
630,246     

Bank of America Corp.

      31,461,880
405,700     

Royal Bank of Scotland Group PLC (United Kingdom)

      13,250,095
           
              44,711,975

Commercial Services & Supplies    2.1%

       
613,100     

Waste Management, Inc.

      22,966,726

Communications Equipment    1.9%

       
1,015,700     

Avaya, Inc.(a)(b)

      12,188,400
409,900     

Nokia Corp., ADR (Finland)

      9,288,334
           
              21,476,734

Computers & Peripherals    1.0%

       
411,100     

Dell, Inc.(a)(b)

      10,770,820

Consumer Finance    1.0%

       
206,500     

American Express Co.

      11,111,765

 

See Notes to Financial Statements.

 

Jennison Value Fund   7

Portfolio of Investments

 

as of April 30, 2006 (Unaudited) Cont’d.

 

Shares      Description    Value (Note 1)
               

Diversified Financial Services    4.4%

       
656,200     

Citigroup, Inc.

    $ 32,777,191
354,800     

JP Morgan Chase & Co.

      16,100,824
           
              48,878,015

Diversified Telecommunication Services    1.0%

       
327,000     

Verizon Communications, Inc.

      10,800,810

Electric Utilities    1.1%

       
229,300     

Exelon Corp.(b)

      12,382,200

Energy Equipment & Services    3.2%

       
383,200     

GlobalSantaFe Corp.

      23,455,672
147,300     

Transocean, Inc.(a)

      11,941,611
           
              35,397,283

Food & Staples Retailing    3.3%

       
1,310,400     

Kroger Co. (The)(a)

      26,548,704
232,600     

Wal-Mart Stores, Inc.

      10,473,978
           
              37,022,682

Food Products    2.6%

       
434,400     

Cadbury Schweppes PLC, ADR (United Kingdom)

      17,358,624
506,200     

ConAgra Foods, Inc.

      11,480,616
           
              28,839,240

Health Care Providers & Services    1.7%

       
84,600     

CIGNA Corp.

      9,052,200
185,370     

Medco Health Solutions, Inc.(a)

      9,867,245
           
              18,919,445

Hotels, Restaurants & Leisure    4.0%

       
499,800     

GTECH Holdings Corp.

      17,073,168
218,400     

Hilton Hotels Corp.

      5,883,696
269,100     

McDonald’s Corp.(b)

      9,302,787
295,200     

OSI Restaurant Partners, Inc.(b)

      12,605,040
           
              44,864,691

Household Products    1.3%

       
249,600     

Kimberly-Clark Corp.

      14,609,088

Independent Power Producers & Energy Traders    1.8%

       
412,800     

TXU Corp.(b)

      20,487,264

 

See Notes to Financial Statements.

 

8   Visit our website at www.jennisondryden.com

 

 

Shares      Description    Value (Note 1)
               

Industrial Conglomerates    3.1%

       
457,500     

General Electric Co.

    $ 15,824,925
704,400     

Tyco International Ltd.

      18,560,940
           
              34,385,865

Insurance    6.7%

       
315,400     

American International Group, Inc.

      20,579,850
387,800     

Axis Capital Holdings Ltd.

      11,564,196
237,700     

Genworth Financial, Inc. (Class A)

      7,891,640
160,700     

Loews Corp.

      17,058,305
1,063,900     

Montpelier Re Holdings, Ltd.(b)

      17,181,985
           
              74,275,976

Internet & Catalog Retail    1.2%

       
140,800     

Expedia, Inc.(a)(b)

      2,625,920
353,600     

IAC/InterActiveCorp.(a)(b)

      10,208,432
           
              12,834,352

IT Services    0.5%

       
120,400     

First Data Corp.

      5,741,876

Media    4.4%

       
583,900     

Comcast Corp. (Class A)(a)

      18,071,705
740,700     

Liberty Global, Inc.(a)

      14,791,779
395,757     

Viacom, Inc. (Class B)(a)

      15,763,001
           
              48,626,485

Metals & Mining    3.1%

       
319,600     

Inco Ltd.

      18,047,812
195,000     

Phelps Dodge Corp.

      16,807,050
           
              34,854,862

Multi-Utilities    1.2%

       
297,700     

Sempra Energy

      13,700,154

Office Electronics    1.9%

       
1,464,800     

Xerox Corp.(a)(b)

      20,565,792

Oil, Gas & Consumable Fuels    11.3%

       
94,900     

Amerada Hess Corp.(b)

      13,596,323
347,700     

Nexen, Inc.

      20,340,450
241,200     

Occidental Petroleum Corp.

      24,780,888
196,400     

Petroleo Brasileiro S.A., ADR (Brazil)

      19,410,212

 

See Notes to Financial Statements.

 

Jennison Value Fund   9

Portfolio of Investments

 

as of April 30, 2006 (Unaudited) Cont’d.

 

Shares      Description    Value (Note 1)  
                 
294,900     

Suncor Energy, Inc.

    $ 25,284,726  
236,629     

Trident Resources Corp. (Canada)
(cost $9,985,029; purchased 3/11/05 - 1/5/06)(a)(f)(g)

      10,582,219  
176,400     

Valero Energy Corp.(b)

      11,420,136  
           
              125,414,954  

Pharmaceuticals    4.2%

         
291,400     

Novartis AG, ADR (Switzerland)

      16,758,414  
700,000     

Pfizer, Inc.

      17,731,000  
264,700     

Sanofi-Aventis, ADR (France)

      12,451,488  
           
              46,940,902  

Semiconductors & Semiconductor Equipment    0.4%

         
205,800     

Intel Corp.(b)

      4,111,884  

Software    2.0%

         
596,800     

CA, Inc.

      15,134,848  
286,600     

Microsoft Corp.

      6,921,390  
           
              22,056,238  

Thrifts & Mortgage Finance    0.7%

         
184,300     

Countrywide Financial Corp.(b)

      7,493,638  

Tobacco    2.6%

         
395,000     

Altria Group, Inc.(b)

      28,898,200  

Wireless Telecommunication Services    4.3%

         
253,300     

Alltel Corp.

      16,304,921  
856,875     

Sprint Nextel Corp.

      21,250,500  
436,500     

Vodafone Group PLC, ADR (United Kingdom)(b)

      10,345,050  
           
              47,900,471  
           
      

Total long-term investments
(cost $815,427,793)

      1,075,841,862  
           

SHORT-TERM INVESTMENTS    18.4%

         

Money Market Mutual Fund

         
203,777,536     

Dryden Core Investment Fund - Taxable Money Market Series (cost $203,777,536; includes $172,568,066 of cash collateral received for securities on loan)(Note 3)(c)(d)

      203,777,536  
           
      

Total Investments(e)    115.4%
(cost $1,019,205,329; Note 5)

      1,279,619,398  
      

Liabilities in excess of other assets    (15.4%)

      (170,725,218 )
           
      

Net Assets    100%

    $ 1,108,894,180  
           

 

See Notes to Financial Statements.

 

10   Visit our website at www.jennisondryden.com

 

 

The following abbreviation is used in portfolio descriptions:

ADR—American Depositary Receipt.

(a) Non-income producing security.
(b) All or a portion of security is on loan. The aggregate market value of such securities is $166,768,871; cash collateral of $172,568,066 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments.
(c) Represents security, or portion thereof, purchased with cash collateral received for securities on loan.
(d) Prudential Investments LLC, the manager of the Fund, also serves as manager of the Dryden Core Investment Fund—Taxable Money Market Series.
(e) As of April 30, 2006, one security representing $10,582,219 and 0.8% of the total market value was fair valued in accordance with the policies adopted by the Board of Trustees.
(f) Indicates an illiquid security.
(g) Indicates a security is restricted to resale. The aggregate cost of such security is $9,985,029. The aggregate value of $10,582,219 is approximately 1.0% of net assets.

 

See Notes to Financial Statements.

 

Jennison Value Fund   11

Portfolio of Investments

 

as of April 30, 2006 (Unaudited) Cont’d.

 

The industry classification of portfolio holdings and liabilities in excess of other assets shown as a percentage of net assets as of April 30, 2006 was as follow:

 

Money Market Mutual Fund (including 15.6% of collateral received for securities on loan)

    18.4 %

Oil, Gas & Consumable Fuels

    11.3  

Capital Markets

    7.9  

Insurance

    6.7  

Diversified Financial Services

    4.4  

Media

    4.4  

Wireless Telecommunication Services

    4.3  

Pharmaceuticals

    4.2  

Commercial Banks

    4.0  

Hotel, Restaurants & Leisure

    4.0  

Aerospace & Defense

    3.3  

Food & Staples Retailing

    3.3  

Energy Equipment & Services

    3.2  

Industrial Conglomerates

    3.1  

Metals & Mining

    3.1  

Food Products

    2.6  

Tobacco

    2.6  

Chemicals

    2.5  

Commercial Services & Supplies

    2.1  

Software

    2.0  

Communications Equipment

    1.9  

Office Electronics

    1.9  

Independent Power Producers & Energy Traders

    1.8  

Health Care Providers & Services

    1.7  

Building Products

    1.3  

Household Products

    1.3  

Internet & Catalog Retail

    1.2  

Multi-Utilities

    1.2  

Electric Utilities

    1.1  

Computers & Peripherals

    1.0  

Consumer Finance

    1.0  

Diversified Telecommunication Services

    1.0  

Thrifts & Mortgage Finance

    0.7  

IT Services

    0.5  

Semiconductors & Semiconductor Equipment

    0.4  
    
     115.4  

Liabilities in excess of other assets

    (15.4 )
    
     100.0 %
    

 

See Notes to Financial Statements.

 

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Financial Statements

 

(Unaudited)

 

APRIL 30, 2006   SEMIANNUAL REPORT

 

Jennison Value Fund

Statement of Assets and Liabilities

 

as of April 30, 2006 (Unaudited)

 

Assets

       

Investments at value, including securities on loan of $166,768,871:

       

Unaffiliated investments (cost $815,427,793)

    $ 1,075,841,862

Affiliated investments (cost $203,777,536)

      203,777,536

Foreign currency, at value (cost $9,235)

      9,558

Receivable for Fund shares sold

      1,859,051

Dividends and interest receivable

      1,803,101

Receivable for investments sold

      1,752,344

Prepaid expenses

      13,085
    

Total assets

      1,285,056,537
    

Liabilities

       

Payable to broker for collateral for securities on loan (Note 4)

      172,568,066

Payable for Fund shares reacquired

      1,785,725

Accrued expenses

      501,635

Management fee payable

      488,693

Distribution fee payable

      297,446

Payable to custodian

      193,479

Deferred trustees’ fees

      2,855

Transfer agent fee payable

      324,458
    

Total liabilities

      176,162,357
    

Net Assets

    $ 1,108,894,180
    
        

Net assets were comprised of:

       

Shares of beneficial interest, at par

    $ 513,179

Paid-in capital in excess of par

      779,015,239
    
       779,528,418

Undistributed net investment income

      3,259,020

Accumulated net realized gain on investment and foreign currency transactions

      65,673,728

Net unrealized appreciation on investments and foreign currencies

      260,433,014
    

Net assets, April 30, 2006

    $ 1,108,894,180
    

 

See Notes to Financial Statements.

 

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Class A

       

Net asset value and redemption price per share

($903,692,466 ÷ 41,772,590 shares of beneficial interest issued and outstanding)

    $ 21.63

Maximum sales charge (5.50% of offering price)

      1.26
    

Maximum offering price to public

    $ 22.89
    

Class B

       

Net asset value, offering price and redemption price per share

($115,866,361 ÷ 5,410,125 shares of beneficial interest issued and outstanding)

    $ 21.42
    

Class C

       

Net asset value, offering price and redemption price per share

($24,829,403 ÷ 1,159,018 shares of beneficial interest issued and outstanding)

    $ 21.42
    

Class R

       

Net asset value, offering price and redemption price per share

($3,191 ÷ 148 shares of beneficial interest issued and outstanding)

    $ 21.56
    

Class Z

       

Net asset value, offering price and redemption price per share

($64,502,759 ÷ 2,976,019 shares of beneficial interest issued and outstanding)

    $ 21.67
    

 

See Notes to Financial Statements.

 

Jennison Value Fund   15

Statement of Operations

 

Six Months Ended April 30, 2006 (Unaudited)

 

Net Investment Income

         

Income

         

Unaffiliated dividends (net of foreign withholding taxes of $164,555)

    $ 10,494,962  

Affiliated dividend income

      540,297  

Affiliated income from securities loaned, net

      65,868  
    

Total income

      11,101,127  
    

Expenses

         

Management fee

      2,822,566  

Distribution fee—Class A

      1,048,992  

Distribution fee—Class B

      582,938  

Distribution fee—Class C

      113,342  

Distribution fee—Class R

      8  

Transfer agent’s fees and expenses (including affiliated expenses of $578,000) (Note 3)

      709,000  

Reports to shareholders

      136,000  

Custodian’s fees and expenses

      87,000  

Registration fees

      40,000  

Insurance

      27,000  

Legal fees and expenses

      25,000  

Trustees’ fees

      12,000  

Audit fee

      8,000  

Miscellaneous

      11,861  
    

Total expenses

      5,623,707  
    

Net investment income

      5,477,420  
    

Realized And Unrealized Gain(Loss) On Investment And Foreign Currency Transactions

         

Net realized gain (loss) on:

         

Investment transactions

      67,214,564  

Foreign currency transactions

      (44,587 )
    
       67,169,977  
    

Net change in unrealized appreciation on:

         

Investments

      73,406,166  

Foreign currencies

      18,945  
    
       73,425,111  
    

Net gain on investments and foreign currency transactions

      140,595,088  
    

Net Increase In Net Assets Resulting From Operations

    $ 146,072,508  
    

 

See Notes to Financial Statements.

 

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Statement of Changes in Net Assets

 

(Unaudited)

 

    

Six Months

Ended

April 30, 2006

       

Year

Ended

October 31, 2005

  

Increase (Decrease) In Net Assets

                    

Operations

                    

Net investment income

    $ 5,477,420        $ 5,891,791  

Net realized gain on investment and foreign currency transactions

      67,169,977          117,720,036  

Net change in unrealized appreciation on investments and foreign currencies

      73,425,111          34,179,396  
    
    

Net increase in net assets resulting from operations

      146,072,508          157,791,223  
    
    

Dividends from net investment income (Note 1)

                    

Class A

      (5,369,140 )        (5,295,657 )

Class B

      —          (115,838 )

Class C

      —          (12,108 )

Class R

      (12 )        —  

Class Z

      (420,806 )        (307,762 )
    
    
       (5,789,958 )        (5,731,365 )
    
    

Distributions from net realized gains

                    

Class A

      (35,966,579 )        —  

Class B

      (5,595,023 )        —  

Class C

      (971,592 )        —  

Class R

      (128 )        —  

Class Z

      (2,054,591 )        —  
    
    
       (44,587,913 )        —  
    
    

Fund share transactions (Net of share conversions) (Note 6)

                    

Net proceeds from shares sold

      96,233,572          115,477,435  

Net asset value of shares issued in reinvestment of
dividends and distributions

      47,372,650          5,283,291  

Cost of shares reacquired

      (83,495,797 )        (170,037,111 )
    
    

Net increase(decrease) in net assets from Fund share transactions

      60,110,425          (49,276,385 )
    
    

Total increase

      155,805,062          102,783,473  

Net Assets

                    

Beginning of period

      953,089,118          850,305,645  
    
    

End of period(a)

    $ 1,108,894,180        $ 953,089,118  
    
    

(a) Includes undistributed net investment income of:

    $ 3,259,020        $ 3,571,558  
    
    

 

See Notes to Financial Statements.

 

Jennison Value Fund   17

 

Notes to Financial Statements

 

(Unaudited)

 

Jennison Value Fund (the “Fund”) is registered under the Investment Company Act of 1940 as a diversified, open-end, management investment company. The investment objective of the Fund is capital appreciation. It seeks to achieve this objective by investing primarily in common stocks and convertible securities that provide investment income returns above those of the Standard & Poor’s 500 Composite Stock Price Index or the NYSE Composite Index.

 

Note 1. Accounting Policies

 

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

 

Securities Valuation: Securities listed on a securities exchange are valued at the last sale price on such exchange on the day of valuation or, if there was no sale on such day, at the mean between the last reported bid and asked prices, or at the last bid price on such day in the absence of an asked price. Securities traded via Nasdaq are valued at the official closing price provided by Nasdaq. Securities that are actively traded in the over-the-counter market, including listed securities for which the primary market is believed by Prudential Investments LLC (“PI” or “Manager”), in consultation with the subadvisor; to be over-the-counter, are valued at market value using prices provided by an independent pricing agent or principal market maker. Futures contracts and options thereon traded on a commodities exchange or board of trade are valued at the last sale price at the close of trading on such exchange or board of trade or, if there was no sale on the applicable commodities exchange or board of trade on such day, at the mean between the most recently quoted prices on such exchange or board of trade or at the last bid price in the absence of an asked price. Prices may be obtained from independent pricing services which use information provided by market makers or estimates of market values obtained from yield data relating to investments or securities with similar characteristics. Securities for which reliable market quotations are not readily available, or whose values have been affected by events occurring after the close of the security’s foreign market and before the Series’ normal pricing time, are valued at fair value in accordance with the Board of Trustees’ approved fair valuation procedures. When determining the fair valuation 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

 

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capitalization of 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. As of April 30, 2006, there were no securities whose values were impacted by events occurring after the close of the security’s foreign market.

 

Investments in mutual funds are valued at their net asset value as of the close of the New York Stock Exchange on the date of valuation.

 

Short-term securities which mature in 60 days or less are valued at amortized cost, which approximates market-value. The amortized cost method includes valuing a security at its cost on the date of purchase and thereafter assuming a constant amortization to maturity of the difference between the principal amount due at maturity and cost. Short-term securities which mature in more than 60 days are valued at current market quotations.

 

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 fiscal year, 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 securities held at the end of the fiscal year. 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 portfolio securities sold during the fiscal year. Accordingly, realized foreign currency gains or losses are included in the reported net realized gains or losses on investment transactions.

 

Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from the holding of foreign currencies, currency gains or losses realized between the trade and settlement dates on security transactions, and

 

Jennison Value Fund   19

Notes to Financial Statements

 

(Unaudited) Cont’d

 

 

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.

 

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

 

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 and interest income, including amortization of premium and accretion of discount on debt securities, as required, is recorded on the accrual basis. Expenses are recorded on an accrual basis.

 

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

 

Taxes: For federal income tax purpose, it is the Fund’s policy to continue to meet the requirements under the Internal Revenue Code applicable to regulated investment companies and to distribute all of its taxable net income and capital gains, if any, to 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.

 

Dividends and Distributions: The Fund expects to pay dividends of net investment income and distributions of net realized capital and currency gains, if any, annually. Dividends and distributions to shareholders, which are determined in accordance with federal income tax regulations and which may differ from generally accepted accounting principles, are recorded on the ex-dividend date.

 

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Securities Lending: The Fund may lend its portfolio securities to broker-dealers. The loans are secured by collateral at least equal, at all times, to the market value of the securities loaned. 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 lender securities identical to the loaned securities. Should the borrower of the securities fail financially, the Fund has the right to repurchase the securities using the collateral in the open market. The Fund recognizes income, net of any rebate and securities lending agent fees, for lending its securities in the form of fees or interest on the investment of any 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.

 

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 subadvisors’ 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 assumes the day-to-day management responsibilities of the Fund and 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 computed daily and payable monthly at an annual rate of .60 of 1% of the Fund’s average daily net assets up to $500 million, .50 of 1% of the next $500 million, .475 of 1% of the next $500 million and .45 of 1% of the average daily net assets in excess of $1.5 billion. The effective management fee rate was .55 of 1% of the Fund’s average daily net assets for the six months ended April 30, 2006.

 

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 R and Class Z shares. 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

 

Jennison Value Fund   21

Notes to Financial Statements

 

(Unaudited) Cont’d

 

 

distribution (the “Class A, B, C and R Plans”), regardless of expenses actually incurred. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund. 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 of 1%, 1%, 1% and .75% of 1% of the average daily net assets of the Class A, B, C and R shares, respectively. For the six months ended April 30, 2006, PIMS contractually agreed to limit such fees to .25 of 1% and .50% of 1% of the average daily net assets of the Class A and Class R shares, respectively.

 

PIMS has advised the Fund that it has received approximately $280,500 in front-end sales charges resulting from sales of Class A shares, during the six months ended April 30, 2006. 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 April 30, 2006, it received approximately $59,100 and $700 in contingent deferred sales charges imposed upon certain redemptions by Class B and Class C shareholders, respectively.

 

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

 

The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a syndicated credit agreement (“SCA”) with two banks. The SCA provides for a commitment of $500 million. Interest on any borrowings under the SCA would be incurred at market rates. For the period from October 29, 2004 through October 28, 2005, the Fund paid a commitment fee of .075 of 1% of the unused portion of the agreement. Effective October 29, 2005, the Funds renewed the SCA with the banks. The commitment under the renewed SCA continues to be $500 million. The Fund pays a commitment fee of .0725 of 1% of the unused portion of the renewed SCA. The commitment fee is accrued daily and paid quarterly and is allocated to the Funds pro-rata based on net assets. The purpose of the SCA is to serve as an alternative source of funding for capital share redemptions. The expiration date of the renewed SCA is October 27, 2006. The Fund did not borrow any amounts pursuant to the SCA during the six months ended April 30, 2006.

 

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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 fees and expenses in the Statement of Operations include certain out-of-pocket expenses paid to non-affiliates, where applicable.

 

The Fund pays networking fees to affiliated and unaffiliated broker/dealers. These networking fees are payments made to broker/dealers that clear mutual fund transactions through a national clearing system. First Clearing Corporation, an affiliate of PI, serves as broker/dealer. For the six months ended April 30, 2006, the Fund incurred approximately $116,500 in total networking fees. These amounts are included in transfer agent’s fees and expenses in the Statement of Operations.

 

The Fund invests in the Taxable Money Market Series (the “Series”), a portfolio of Dryden Core Investment Fund, pursuant to an exemptive order received from the Securities and Exchange Commission. The Series is a money market mutual fund registered under the Investment Company Act of 1940, as amended, and managed by PI.

 

Note 4. Portfolio Securities

 

Purchases and sales of investment securities, other than short-term investments, for the six months ended April 30, 2006 were $259,692,893 and $258,563,877, respectively.

 

As of April 30, 2006, the Fund had securities on loan with an aggregate market value of $166,768,871. The Fund received $172,568,066 in cash as collateral for securities on loan which was used to purchase highly liquid short-term investments in accordance with the Fund’s securities lending procedures.

 

Note 5. Distributions and Tax Information

 

The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of April 30, 2006 were as follows:

 

Tax Basis

   

Appreciation

   

Depreciation

   

Net Unrealized

Appreciation

$1,020,559,870    $270,777,215    $11,717,687    $259,059,528

 

The difference between book basis is primarily attributable to the difference in the treatment of wash sale losses for book and tax purposes.

 

Jennison Value Fund   23

Notes to Financial Statements

 

(Unaudited) Cont’d

 

 

Note 6. Capital

 

The Fund offers Class A, Class B, Class C, Class R and Class Z shares. Class A shares are sold with a front-end sales charge of up to 5.5%. 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%, including investors who purchase their shares through broker-dealers affiliated with Prudential. Class B shares are sold with a contingent deferred sales charge which declines from 5% to zero depending on the period of time the shares are held. Class C shares are sold with a contingent deferred sales charge of 1% during the first 12 months. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class R and Class Z shares are not subject to any sales or redemption charge and are offered exclusively for sale to a limited group of investors.

 

The Fund has authorized an unlimited number of shares of beneficial interest at $.01 par value divided into five classes, designated Class A, Class B, Class C, Class R and Class Z.

 

Transactions in shares of beneficial interest were as follows:

 

Class A

    Shares
      Amount
  

Six months ended April 30, 2006:

                

Shares sold

    3,272,262      $ 67,307,722  

Shares issued in reinvestment of dividends

    1,959,077        38,613,402  

Shares reacquired

    (3,317,797 )      (68,248,783 )
    
  

Net increase (decrease) in shares outstanding before conversion

    1,913,542        37,672,341  

Shares issued upon conversion from Class B

    826,405        16,695,347  
    
  

Net increase (decrease) in shares outstanding

    2,739,947      $ 54,367,688  
    
  

Year ended October 31, 2005:

                

Shares sold

    4,459,037      $ 83,324,115  

Shares issued in reinvestment of dividends

    279,079        4,855,977  

Shares reacquired

    (6,942,598 )      (128,617,514 )
    
  

Net increase (decrease) in shares outstanding before conversion

    (2,204,482 )      (40,437,422 )

Shares issued upon conversion from Class B

    4,704,055        87,747,613  
    
  

Net increase (decrease) in shares outstanding

    2,499,573      $ 47,310,191  
    
  

 

24   Visit our website at www.jennisondryden.com

 

Class B

    Shares
      Amount
  

Six months ended April 30, 2006:

                

Shares sold

    272,404      $ 5,570,718  

Shares issued in reinvestment of dividends

    274,279        5,367,640  

Shares reacquired

    (407,574 )      (8,305,865 )
    
  

Net increase (decrease) in shares outstanding before conversion

    139,109        2,632,493  

Shares reacquired upon conversion into Class A

    (832,971 )      (16,695,347 )
    
  

Net increase (decrease) in shares outstanding

    (693,862 )    $ (14,062,854 )
    
  

Year ended October 31, 2005:

                

Shares sold

    657,252      $ 11,934,704  

Shares issued in reinvestment of dividends

    6,332        109,543  

Shares reacquired

    (1,529,879 )      (27,808,404 )
    
  

Net increase (decrease) in shares outstanding before conversion

    (866,295 )      (15,764,157 )

Shares reacquired upon conversion into Class A

    (4,744,651 )      (87,747,613 )
    
  

Net increase (decrease) in shares outstanding

    (5,610,946 )    $ (103,511,770 )
    
  

Class C

              

Six months ended April 30, 2006:

                

Shares sold

    217,516      $ 4,445,300  

Shares issued in reinvestment of dividends

    47,187        923,919  

Shares reacquired

    (157,997 )      (3,231,922 )
    
  

Net increase (decrease) in shares outstanding

    106,706      $ 2,137,297  
    
  

Year ended October 31, 2005:

                

Shares sold

    181,114      $ 3,316,652  

Shares issued in reinvestment of dividends

    661        11,439  

Shares reacquired

    (342,389 )      (6,303,904 )
    
  

Net increase (decrease) in shares outstanding

    (160,614 )    $ (2,975,813 )
    
  

Class R

              

Six months ended April 30, 2006:

                

Shares sold

    241      $ 4,863  

Shares issued in reinvestment of dividends

    —        3  

Shares reacquired

    (232 )      (4,758 )
    
  

Net increase (decrease) in shares outstanding

    9      $ 108  
    
  

Period ended October 31, 2005*:

                

Shares sold

    139      $ 2,547  

Shares issued in reinvestment of dividends

    —        —  

Shares reacquired

    —        —  
    
  

Net increase (decrease) in shares outstanding

    139      $ 2,547  
    
  

* Inception date on June 3, 2005.

                

 

Jennison Value Fund   25

Notes to Financial Statements

 

(Unaudited) Cont’d

 

 

Class Z

    Shares
      Amount
  

Six months ended April 30, 2006:

                

Shares sold

    919,851      $ 18,904,969  

Shares issued in reinvestment of dividends

    125,136        2,467,686  

Shares reacquired

    (179,506 )      (3,704,469 )
    
  

Net increase (decrease) in shares outstanding

    865,481      $ 17,668,186  
    
  

Year ended October 31, 2005:

                

Shares sold

    895,343      $ 16,899,417  

Shares issued in reinvestment of dividends

    17,585        306,332  

Shares reacquired

    (396,913 )      (7,307,289 )
    
  

Net increase (decrease) in shares outstanding

    516,015      $ 9,898,460  
    
  

 

26   Visit our website at www.jennisondryden.com

 

Financial Highlights

 

(Unaudited)

 

APRIL 30, 2006   SEMIANNUAL REPORT

 

Jennison Value Fund

Financial Highlights

 

(Unaudited)

 

 

     Class A
  
     Six Months Ended
April 30, 2006		  

Per Share Operating Performance:

         

Net Asset Value, Beginning Of Period

    $ 19.77  
    

Income (loss) from investment operations:

         

Net investment income

      .12  

Net realized and unrealized gain (loss) on investment transactions

      2.80  
    

Total from investment operations

      2.92  
    

Less Dividends and Distributions:

         

Dividends from net investment income

      (.14 )

Distributions from net realized gains

      (.92 )
    

Total dividends and distributions

      (1.06 )
    

Net asset value, end of period

    $ 21.63  
    

Total Return(b):

      15.27 %

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 903,693  

Average net assets (000)

    $ 846,148  

Ratios to average net assets:

         

Expenses, including distribution and service (12b-1) fees(c)

      1.00 %(d)

Expenses, excluding distribution and service (12b-1) fees

      .75 %(d)

Net investment income

      1.15 %(d)

For Class A, B, C, R and Z shares:

         

Portfolio turnover rate

      26 %(e)
(a) Calculated based upon 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 shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized.
(c) The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .25 of 1% of the average daily net assets of the Class A shares.
(d) Annualized.
(e) Not annualized.

 

See Notes to Financial Statements.

 

28   Visit our website at www.jennisondryden.com

Class A  
Year Ended October 31,  
2005(a)     2004(a)     2003(a)     2002(a)     2001  
                                     
$ 16.71     $ 14.50     $ 12.17     $ 16.09     $ 18.49  
 
 
 
 
                                     
  .14       .11       .11       .11       .16  
  3.07       2.22       2.31       (2.43 )     (1.22 )
 
 
 
 
  3.21       2.33       2.42       (2.32 )     (1.06 )
 
 
 
 
                                     
  (.15 )     (.12 )     (.09 )     (.10 )     (.12 )
  —       —       —       (1.50 )     (1.22 )
 
 
 
 
  (.15 )     (.12 )     (.09 )     (1.60 )     (1.34 )
 
 
 
 
$ 19.77     $ 16.71     $ 14.50     $ 12.17     $ 16.09  
 
 
 
 
  19.31 %     16.21 %     19.97 %     (16.56 )%     (6.21 )%
                                     
$ 771,540     $ 610,345     $ 559,230     $ 516,702     $ 690,433  
$ 699,013     $ 598,375     $ 529,960     $ 657,772     $ 714,431  
                                     
  1.04 %     1.07 %     1.12 %     1.04 %     1.08 %
  .79 %     .82 %     .87 %     .79 %     .83 %
  .77 %     .68 %     .88 %     .74 %     .83 %
                                     
  56 %     56 %     97 %     72 %     179 %

 

See Notes to Financial Statements.

 

Jennison Value Fund   29

Financial Highlights

 

(Unaudited) Cont’d

 

 

     Class B
  
     Six Months Ended
April 30, 2006		  

Per Share Operating Performance:

         

Net Asset Value, Beginning Of Period

    $ 19.52  
    

Income (loss) from investment operations:

         

Net investment income (loss)

      .04  

Net realized and unrealized gain (loss) on investment transactions

      2.78  
    

Total from investment operations

      2.82  
    

Less Dividends and Distributions:

         

Dividends from net investment income

      —  

Distributions from net realized gains

      (.92 )
    

Total dividends and distributions

      (.92 )
    

Net asset value, end of period

    $ 21.42  
    

Total Return(c):

      14.88 %

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 115,866  

Average net assets (000)

    $ 117,554  

Ratios to average net assets:

         

Expenses, including distribution and service (12b-1) fees

      1.75 %(d)

Expenses, excluding distribution and service (12b-1) fees

      .75 %(d)

Net investment income (loss)

      .41 %(d)
(a) Calculated based upon average shares outstanding during the period.
(b) Less than $.005 per share.
(c) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized.
(d) Annualized.

 

See Notes to Financial Statements.

 

30   Visit our website at www.jennisondryden.com

Class B  
Year Ended October 31,  
2005(a)     2004(a)     2003(a)     2002(a)     2001  
                                     
$ 16.49     $ 14.31     $ 12.02     $ 15.92     $ 18.38  
 
 
 
 
                                     
  .02       (.01 )     .02       — (b)     .03  
  3.02       2.20       2.27       (2.40 )     (1.22 )
 
 
 
 
  3.04       2.19       2.29       (2.40 )     (1.19 )
 
 
 
 
                                     
  (.01 )     (.01 )     —       —       (.05 )
  —       —       —       (1.50 )     (1.22 )
 
 
 
 
  (.01 )     (.01 )     —       (1.50 )     (1.27 )
 
 
 
 
$ 19.52     $ 16.49     $ 14.31     $ 12.02     $ 15.92  
 
 
 
 
  18.44 %     15.34 %     19.05 %     (17.21 )%     (6.93 )%
                                     
$ 119,151     $ 193,230     $ 215,039     $ 241,923     $ 395,833  
$ 161,840     $ 212,833     $ 221,850     $ 347,114     $ 529,705  
                                     
  1.79 %     1.82 %     1.87 %     1.79 %     1.83 %
  .79 %     .82 %     .87 %     .79 %     .83 %
  .04 %     (.06 )%     .13 %     (.01 )%     .12 %

 

See Notes to Financial Statements.

 

Jennison Value Fund   31

Financial Highlights

 

(Unaudited) Cont’d

 

 

     Class C
  
     Six Months Ended
April 30, 2006		  

Per Share Operating Performance:

         

Net Asset Value, Beginning Of Period

    $ 19.52  
    

Income (loss) from investment operations:

         

Net investment income (loss)

      .04  

Net realized and unrealized gain (loss) on investment transactions

      2.78  
    

Total from investment operations

      2.82  
    

Less Dividends and Distributions:

         

Dividends from net investment income

      —  

Distributions from net realized gains

      (.92 )
    

Total dividends and distributions

      (.92 )
    

Net asset value, end of period

    $ 21.42  
    

Total Return(c):

      14.82 %

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 24,829  

Average net assets (000)

    $ 22,856  

Ratios to average net assets:

         

Expenses, including distribution and service (12b-1) fees

      1.75 %(d)

Expenses, excluding distribution and service (12b-1) fees

      .75 %(d)

Net investment income (loss)

      .40 %(d)
(a) Calculated based upon average shares outstanding during the period.
(b) Less than $.005 per share.
(c) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized.
(d) Annualized.
(e) Less than .005%.

 

See Notes to Financial Statements.

 

32   Visit our website at www.jennisondryden.com

Class C  
Year Ended October 31,  
2005(a)     2004(a)     2003(a)     2002(a)     2001  
                                     
$ 16.49     $ 14.31     $ 12.02     $ 15.92     $ 18.38  
 
 
 
 
                                     
  .01       (.01 )     .02       — (b)     .02  
  3.03       2.20       2.27       (2.40 )     (1.21 )
 
 
 
 
  3.04       2.19       2.29       (2.40 )     (1.19 )
 
 
 
 
                                     
  (.01 )     (.01 )     —       —       (.05 )
  —       —       —       (1.50 )     (1.22 )
 
 
 
 
  (.01 )     (.01 )     —       (1.50 )     (1.27 )
 
 
 
 
$ 19.52     $ 16.49     $ 14.31     $ 12.02     $ 15.92  
 
 
 
 
  18.44 %     15.34 %     19.05 %     (17.21 )%     (6.93 )%
                                     
$ 20,540     $ 20,006     $ 21,268     $ 22,728     $ 30,459  
$ 20,814     $ 21,130     $ 22,008     $ 29,071     $ 31,358  
                                     
  1.79 %     1.82 %     1.87 %     1.79 %     1.83 %
  .79 %     .82 %     .87 %     .79 %     .83 %
  .05 %     (.07 )%     .13 %     — (e)     .08 %

 

See Notes to Financial Statements.

 

Jennison Value Fund   33

Financial Highlights

 

(Unaudited) Cont’d

 

 

    Class R
  
   

Six Months Ended

April 30, 2006

    

June 3, 2005(a)
Through

October 31, 2005(b)

  

Per Share Operating Performance:

                

Net Asset Value, Beginning Of Period

   $ 19.74     $ 18.31  
   
 

Income (loss) from investment operations:

                

Net investment income

     .08       .01  

Net realized and unrealized gain on investment transactions

     2.75       1.42  
   
 

Total from investment operations

     2.83       1.43  
   
 

Less Dividends and Distributions:

                

Dividends from net investment income

     (.09 )     —  

Distributions from net realized gains

     (.92 )     —  
   
 

Total dividends and distributions

     (1.01 )     —  
   
 

Net asset value, end of period

   $ 21.56     $ 19.74  
   
 

Total Return(c):

     14.79 %     7.81 %

Ratios/Supplemental Data:

                

Net assets, end of period (000)

   $ 3     $ 3  

Average net assets (000)

   $ 3     $ 3  

Ratios to average net assets:

                

Expenses, including distribution and service (12b-1) fees(d)(e)

     1.25 %     1.29 %

Expenses, excluding distribution and service (12b-1) fees(e)

     .75 %     .79 %

Net investment income(e)

     .63 %     .19 %
(a) Inception date of Class R shares.
(b) Calculated based upon average shares outstanding during the period.
(c) Total return does not consider the effects of sales loads. Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized.
(d) The distributor of the Fund has contractually agreed to limit its distribution and service (12b-1) fees to .50 of 1% of the average daily net assets of the Class R shares.
(e) Annualized.

 

See Notes to Financial Statements.

 

34   Visit our website at www.jennisondryden.com

 

 

 

This Page Intentionally Left Blank

Financial Highlights

 

(Unaudited) Cont’d

 

 

     Class Z
  
     Six Months Ended
April 30, 2006		  

Per Share Operating Performance:

         

Net Asset Value, Beginning Of Period

    $ 19.83  
    

Income (loss) from investment operations:

         

Net investment income

      .17  

Net realized and unrealized gain (loss) on investment transactions

      2.78  
    

Total from investment operations

      2.95  
    

Less Dividends and Distributions:

         

Dividends from net investment income

      (.19 )

Distributions from net realized gains

      (.92 )
    

Total dividends and distributions

      (1.11 )
    

Net asset value, end of period

    $ 21.67  
    

Total Return(b):

      15.41 %

Ratios/Supplemental Data:

         

Net assets, end of period (000)

    $ 64,503  

Average net assets (000)

    $ 53,842  

Ratios to average net assets:

         

Expenses, including distribution and service (12b-1) fees

      .75 %(c)

Expenses, excluding distribution and service (12b-1) fees

      .75 %(c)

Net investment income

      1.40 %(c)
(a) Calculated based upon average shares outstanding during the period.
(b) Total return is calculated assuming a purchase of shares on the first day and a sale on the last day of each period reported, and includes reinvestment of dividends and distributions. Total returns for periods less than a full year are not annualized.
(c) Annualized.

 

See Notes to Financial Statements.

 

36   Visit our website at www.jennisondryden.com

Class Z  
Year Ended October 31,  
2005(a)     2004(a)     2003(a)     2002(a)     2001  
                                     
$ 16.76     $ 14.54     $ 12.21     $ 16.14     $ 18.52  
 
 
 
 
                                     
  .19       .15       .15       .14       .28  
  3.07       2.23       2.30       (2.43 )     (1.30 )
 
 
 
 
  3.26       2.38       2.45       (2.29 )     (1.02 )
 
 
 
 
                                     
  (.19 )     (.16 )     (.12 )     (.14 )     (.14 )
  —       —       —       (1.50 )     (1.22 )
 
 
 
 
  (.19 )     (.16 )     (.12 )     (1.64 )     (1.36 )
 
 
 
 
$ 19.83     $ 16.76     $ 14.54     $ 12.21     $ 16.14  
 
 
 
 
  19.59 %     16.49 %     20.26 %     (16.34 )%     (5.98 )%
                                     
$ 41,856     $ 26,725     $ 32,340     $ 31,300     $ 62,366  
$ 32,824     $ 25,857     $ 31,275     $ 58,256     $ 69,810  
                                     
  .79 %     .82 %     .87 %     .79 %     .83 %
  .79 %     .82 %     .87 %     .79 %     .83 %
  1.00 %     .93 %     1.13 %     .98 %     1.11 %

 

See Notes to Financial Statements.

 

Jennison Value Fund   37

 

n MAIL   n TELEPHONE   n WEBSITE

Gateway Center Three

100 Mulberry Street

Newark, NJ 07102

   (800) 225-1852   www.jennisondryden.com

 

PROXY VOTING
The Board of Trustees of the Fund has delegated to the Fund’s investment subadvisor 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 Commission’s website.

 

TRUSTEES
Linda W. Bynoe • David E.A. Carson • Robert F. Gunia • Robert E. La Blanc • Douglas H. McCorkindale • Richard A. Redeker • Judy A. Rice • Robin B. Smith • Stephen G. Stoneburn • Clay T. Whitehead

 

OFFICERS
Judy A. Rice, President • Robert F. Gunia, Vice President • Grace C. Torres, Treasurer and Principal Financial and Accounting Officer • Jack Benintende, Assistant Treasurer •
M. Sadiq Peshimam, Assistant Treasurer • Deborah A. Docs, Secretary • Jonathan D. Shain, Assistant Secretary • Claudia DiGiacomo, Assistant Secretary • John P. Schwartz, Assistant Secretary • Helene Gurian, Acting Anti-Money Laundering Compliance Officer •
Lee D. Augsburger, Chief Compliance Officer

 

MANAGER   Prudential Investments LLC    Gateway Center Three
100 Mulberry Street
Newark, NJ 07102
INVESTMENT SUBADVISOR   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    One Wall Street
New York, NY 10286
TRANSFER AGENT   Prudential Mutual Fund
Services LLC		    PO Box 8098
Philadelphia, PA 19176
INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM		   KPMG LLP    345 Park Avenue
New York, NY 10154
FUND COUNSEL   Sullivan & Cromwell LLP    125 Broad Street
New York, NY 10004

 

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

 

E-DELIVERY
To receive your mutual fund documents on-line, go to www.icsdelivery.com/prudential/funds
and enroll. Instead of receiving printed documents by mail, you will receive notification via e-mail when new materials are available. You can cancel your enrollment or change your e-mail
address at any time by clicking on the change/cancel enrollment option at the icsdelivery
website address.

 

SHAREHOLDER COMMUNICATIONS WITH TRUSTEES
Shareholders can communicate directly with the Board of Trustees by writing to the Chair of the Board, Jennison Value Fund, PO Box 13964, Philadelphia, PA 19176. Shareholders can communicate directly with an individual Trustee 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 (800) SEC-0330 (732-0330). The Fund’s schedule of portfolio holdings is also available on the Fund’s website as of the end of each fiscal quarter.

 

Mutual Funds:

ARE NOT INSURED BY THE FDIC OR ANY FEDERAL GOVERNMENT AGENCY   MAY LOSE VALUE   ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR ANY BANK AFFILIATE

LOGO

 

 

Jennison Value Fund                
    Share Class   A   B   C   R   Z    
   

NASDAQ

   PBEAX   PBQIX   PEICX   JDVRX   PEIZX    
   

CUSIP

   476297106   476297205   476297304   476297502   476297403    
                             

MF131E2    IFS-A120140    Ed. 06/2006

 

 

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 Item 1 of this Form.

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

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

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

Item 10 – Submission of Matters to a Vote of Security Holders – 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) Jennison Value Fund
By (Signature and Title)*  

/s/ Deborah A. Docs

  Deborah A. Docs
  Secretary
Date June 27, 2006

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

By (Signature and Title)*  

/s/ Judy A. Rice

  Judy A. Rice
  President and Principal Executive Officer
Date June 27, 2006
By (Signature and Title)*  

/s/ Grace C. Torres

  Grace C. Torres
  Treasurer and Principal Financial Officer
Date June 27, 2006

 

* Print the name and title of each signing officer under his or her signature.