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Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
Investment Fact Sheets
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Investment Fact Sheets

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  • 1. Investment Fact Sheets Please read all of the documents contained in this booklet (Click on a fund in the Table of Contents to be directed to that fund’s specific fact sheet) TABLE OF CONTENTS PAGE PruSecure (non-New York) 2 PruSecure (New York version) 3 MoneyMart Assets Series A 4 Target Total Return Bond Fund R 5 Dryden Government Income R 6 Dryden High-Yield R 7 Target Large Cap Growth Fund R 8 Jennison Growth R 9 Dryden Stock Index A 10 Jennison 20/20 Focus R 11 Target Large Cap Value Fund R 12 Jennison Value R 13 Jennison Mid Cap Growth R 14 Target Small Cap Growth Fund R 15 Jennison Small Company R 16 Target Small Cap Value Fund R 17 Target International Equity Fund R 18 Jennison Natural Resources Fund R 19 Jennison Utility Fund R 20 User’s Guide 21 Mutual fund shares are offered by Prudential Investment Management Services, LLC (PIMS), Three Gateway Center, 14th Floor, Newark, NJ 07102-4077, a Prudential Financial company. Member FINRA/SIPC. Investment advisory services provided by Global Portfolio Strategies, Inc., a Prudential Financial company.
  • 2. PruSecure Account Second Quarter 2007 Fund Fact Sheet Key Facts OBJECTIVE AND STRUCTURE The PruSecure Account (the “Fund”) is a stable value product designed to provide safety of ISSUER: The Prudential Insurance principal, liquidity and a stable rate of return. Company of America INVESTMENT ADVISER: Prudential Investment THE FUND OFFERS Management, Inc. ■ Predictability of returns FUND CATEGORY: Stable Value ■ Guaranteed protection of principal and credited interest from market volatility NET ASSETS: $5,800 Million ■ Improved earnings power versus short-term or money market investments INCEPTION DATE: Jan. 1982 FEATURES AND PROVISIONS ■ Principal and interest are fully guaranteed by The Prudential Insurance Company of Investor Risk Profile America. ■ The guaranteed interest crediting rate is announced in advance and is guaranteed for a six This Fund may be suitable for investors who seek: month period. Past crediting rates are not indicative of future rates. ■ Preservation of capital plus attractive intermediate-term returns. ■ Pooled general account stable value product providing attractive crediting rates. ■ Liquidity and income. ■ Guaranteed interest rates are based on many factors, including current economic and market conditions, the general interest rate environment and both the expected and actual performance of the portfolio. ■ The Fund invests in a diversified portfolio of fixed income instruments (primarily private placement bonds, intermediate-term bonds and commercial mortgages) within The Portfolio Allocation As of 6/30/2007 Prudential Insurance Company of America’s general account. ■ Any withdrawals made from the PruSecure Account within one (1) year from the initial Public Corporate Bonds 35% contribution date will be subject to a 1% contingent deferred sales charge on the amounts Mortgage Loans* 21% withdrawn. Amounts withdrawn may also be subject to a Market Value Adjustment if Private Securities 22% portfolio withdrawal thresholds are met or exceeded. ■ Interest is credited daily. Government Bonds 2% Public Structured Bonds 16% CREDITING RATE*: 4.25% * Effective 7/1/07; for the period 7/1/07 – 12/31/07. Cash and Other 3% The PruSecure crediting rate is guaranteed by The Prudential Insurance Company of America which enjoys the following ratings: Average Quality A Average Duration 3.1 * may include commercial, residential or agriculture loans. Rating Agency Rating Description Public Structured Bonds includes Mortgage Backed Securities and any debt that was Moody’s Aa3 Excellent used to purchase these securities. Standard & Poor’s AA- Very Strong U.S. Treasury Rates As of 6/30/2007 A.M. Best A+ Superior Fitch AA- Very Strong 5.5% Claims-paying ratings represent the opinions of rating agencies regarding the financial ability of an insurance 5.0% company to meet its obligations under its insurance policies. According to Standard & Poor’s publications, an insurer rated “AA-” has very strong financial security characteris- 4.5% tics, differing only slightly from those rated higher. An insurer rated “AAA” has extremely strong financial security characteristics. “AAA” is the highest Insurer Financial Strength Rating assigned by Standard & Poor’s. 4.0% Moody’s indicates that “Aa3” rated insurance companies offer excellent financial security. Insurance companies rated “Aaa” offer exceptional financial security. In addition, Moody’s appends numerical modifiers 1, 2, 3 to each generic rating classification, with 1 being the highest and 3 being the lowest. While the credit policy of these compa- 3.5% nies is likely to change, such changes as can be visualized are most unlikely to impair their fundamentally strong Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 2006 2007 position. “Aaa” is the highest Insurer Financial Strength Rating assigned by Moody’s. 3 Year Fitch indicates that “AA-” companies are viewed as possessing very strong capacity to meet policyholder and con- tract obligations. Risk factors are modest, and the impact on any adverse business and economic factors is expected to be very small. According to Fitch, “AAA” is Exceptionally Strong. Insurers assigned this highest rating are viewed as possessing an exceptionally strong capacity to meet policyholder and contract obligations. For such companies, risk factors are minimal and the impact on any adverse business and economic factors is expected to be extremely small. “AAA” is the highest rating issued by Fitch. A.M. Best considers “A+” rated companies to have a superior ability to meet their ongoing obligations to policyhold- ers. An “A++” rating is assigned to companies that have, in their opinion, a superior ability to meet their ongoing obligations to policyholders. “A++” is the highest rating issued by A.M. Best. Rating information current as of January 26, 2007. For current information on other Prudential Financial operating insurance companies, please visit the Investor Relations website at www.investor.prudential.com. The PruSecure Account is a group annuity product issued by The Prudential Insurance Company of America, Newark, NJ and is backed by the full faith and creditworthiness of the issuer. Deposits made to the product are deposited in the issuer’s general account. Principal and interest are fully guaranteed by the issuer. The Prudential Insurance Company of America and Prudential Investment Management, Inc. (PIM) are Prudential Financial companies. PIM is a registered investment advisor. Prudential Financial is a registered service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A018507 589252-207
  • 3. Second Quarter 2007 PruSecure Account Fund Fact Sheet New York Version Key Facts OBJECTIVE AND STRUCTURE The PruSecure Account (the “Fund”) is a stable value product designed to provide safety of ISSUER: The Prudential Insurance principal, liquidity and a stable rate of return. Company of America INVESTMENT ADVISER: Prudential Investment THE FUND OFFERS Management, Inc. ■ Predictability of returns FUND CATEGORY: Stable Value ■ Guaranteed protection of principal and credited interest from market volatility NET ASSETS: $5,800 Million ■ Improved earnings power versus short-term or money market investments INCEPTION DATE: Jan. 1982 FEATURES AND PROVISIONS ■ Principal and interest are fully guaranteed by The Prudential Insurance Company of Investor Risk Profile America. ■ The guaranteed interest crediting rate is announced in advance and is guaranteed for a six This Fund may be suitable for investors who seek: month period. Past crediting rates are not indicative of future rates. ■ Preservation of capital plus attractive intermediate-term returns. ■ Pooled general account stable value product providing attractive crediting rates. ■ Liquidity and income. ■ Guaranteed interest rates are based on many factors, including current economic and market conditions, the general interest rate environment and both the expected and actual performance of the portfolio. ■ The Fund invests in a diversified portfolio of fixed income instruments (primarily private placement bonds, intermediate-term bonds and commercial mortgages) within The Portfolio Allocation As of 6/30/2007 Prudential Insurance Company of America’s general account. ■ Amounts withdrawn may be subject to a Market Value Adjustment if individual account Public Corporate Bonds 35% withdrawal thresholds are met or exceeded. Mortgage Loans* 21% ■ Interest is credited daily. Private Securities 22% Government Bonds 2% CREDITING RATE*: 4.25% * Effective 7/1/07; for the period 7/1/07 – 12/31/07. Public Structured Bonds 16% Cash and Other 3% The PruSecure crediting rate is guaranteed by The Prudential Insurance Company of America which enjoys the following ratings: Average Quality A Average Duration 3.1 * may include commercial, residential or agriculture loans. Rating Agency Rating Description Public Structured Bonds includes Mortgage Backed Securities and any debt that was used to purchase these securities. Moody’s Aa3 Excellent Standard & Poor’s AA- Very Strong U.S. Treasury Rates As of 6/30/2007 A.M. Best A+ Superior Fitch AA- Very Strong 5.5% Claims-paying ratings represent the opinions of rating agencies regarding the financial ability of an insurance 5.0% company to meet its obligations under its insurance policies. According to Standard & Poor’s publications, an insurer rated “AA-” has very strong financial security characteris- 4.5% tics, differing only slightly from those rated higher. An insurer rated “AAA” has extremely strong financial security characteristics. “AAA” is the highest Insurer Financial Strength Rating assigned by Standard & Poor’s. 4.0% Moody’s indicates that “Aa3” rated insurance companies offer excellent financial security. Insurance companies rated “Aaa” offer exceptional financial security. In addition, Moody’s appends numerical modifiers 1, 2, 3 to each 3.5% generic rating classification, with 1 being the highest and 3 being the lowest. While the credit policy of these compa- Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun nies is likely to change, such changes as can be visualized are most unlikely to impair their fundamentally strong 2006 2007 position. “Aaa” is the highest Insurer Financial Strength Rating assigned by Moody’s. 3 Year Fitch indicates that “AA-” companies are viewed as possessing very strong capacity to meet policyholder and con- tract obligations. Risk factors are modest, and the impact on any adverse business and economic factors is expected to be very small. According to Fitch, “AAA” is Exceptionally Strong. Insurers assigned this highest rating are viewed as possessing an exceptionally strong capacity to meet policyholder and contract obligations. For such companies, risk factors are minimal and the impact on any adverse business and economic factors is expected to be extremely small. “AAA” is the highest rating issued by Fitch. A.M. Best considers “A+” rated companies to have a superior ability to meet their ongoing obligations to policyhold- ers. An “A++” rating is assigned to companies that have, in their opinion, a superior ability to meet their ongoing obligations to policyholders. “A++” is the highest rating issued by A.M. Best. Rating information current as of January 26, 2007. For current information on other Prudential Financial operating insurance companies, please visit the Investor Relations website at www.investor.prudential.com. The PruSecure Account is a group annuity product issued by The Prudential Insurance Company of America, Newark, NJ and is backed by the full faith and creditworthiness of the issuer. Deposits made to the product are deposited in the issuer’s general account. Principal and interest are fully guaranteed by the issuer. The Prudential Insurance Company of America and Prudential Investment Management, Inc. (PIM) are Prudential Financial companies. PIM is a registered investment advisor. Prudential Financial is a registered service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A018507 589252-207/New York ed.
  • 4. MoneyMart Assets Series A Third Quarter 2007 Fund Fact Sheet Typical Risk / Reward Relationships INVESTMENT OBJECTIVE Maximum current income consistent with stability of capital and maintenance of liquidity. Potentially PRIMARY INVESTMENTS Higher STOCKS A diversified portfolio of short-term debt obligations issued or guaranteed by the U.S. Government or its Reward agencies or instrumentalities. Obligations include, but are not limited to, obligations issues by the U.S. Government, its agencies and instrumentalities, commercial paper, asset-backed securities, funding agreements, variable rate demand notes, bills notes, and other obligations issued by banks, corporations STABLE and other companies (including trust structures), obligations issued by foreign banks, companies or BONDS VALUE foreign governments, and municipal notes. Potentially INVESTMENT ADVISOR Lower MONEY Prudential Investment Management, Inc. (PIM) is the Fund’s investment adviser. Joseph Tully has primary Reward MARKET responsibility for overseeing the day-to-day management of the fund. Potentially Potentially HOW THE FUND IS INVESTED Lower Risk Higher Risk The Fund invests in high-quality money market instruments to try to provide investors with current income while maintaining a stable net asset value of $1 per share. We manage the Fund to comply with The typical risk/reward relationships illustrated here are based solely on specific rules designed for money market mutual funds. This means that we manage the Fund's portfolio the characteristics of the general investment categories of the investment to comply with the requirements of the Investment Company Act of 1940, as amended (the 1940 Act) options and not on actual security holdings, which can change frequently. Rule 2a-7. As such, we will not acquire any security with a remaining maturity exceeding thirteen months, and we will maintain a dollar-weighted average portfolio maturity of 90 days or less. In addition, Risks (potential for loss of principal value) associated with the investment we will comply with the diversification, quality and other requirements of Rule 2a-7. This means, general- options can vary significantly within each particular investment category ly, that the instruments we purchase present "minimal credit risk" and are of "eligible quality." "Eligible and the relative risks of the categories may change under certain economic quality" for this purpose means a security: (a) rated in one of the two highest short-term rating cate- conditions. For a more complete discussion of risks associated with the gories by at least two nationally recognized statistical rating organizations (NRSROs) or, if only one mutual fund options, please read the prospectus carefully before making NRSRO has rated the security, so rated by that NRSRO; (b) rated in one of the three highest long-term your investment decision. The typical relationships shown do not represent rating categories by at least two NRSROs or, if only one NRSRO has rated the security, so rated by that actual or implied performance. Based on the investment objective of this NRSRO; or (c) if unrated, of comparable quality as determined by the Fund's investment adviser. All Fund, its risk/reward potential is indicated in the illustration. securities that we purchase will be denominated in U.S. dollars but may be issued by a foreign issuer. An investment in a money market fund is neither insured nor guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund. The yield quotation more closely reflects the current earnings of the Portfolio than the total return quotation. Performance* (%) As of 9/30/2007 AVERAGE ANNUAL TOTAL RETURNS 1 Year 3 Year 5 Year 10 Year MoneyMart Assets – Series A 4.96% 3.68% 2.46% 3.41% The 7-Day Current yield as of 9/30/2007 is 5.08% Citigroup 3 Mo. T-Bill Index 5.01% 3.97% 2.83% 3.65% Fund’s Inception Date: 06/01/1976 *Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 12b-1 fee of (0.125%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). Performance was provided by Prudential Investment Management Services (PIMS). The performance quoted represents past perfor- mance. The investment return and principal value will fluctuate so that an investor’s shares, when redeemed, may be worth more or less than original cost. Past performance does not guarantee future results. Current performance may be lower or higher than the per- formance data quoted. For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website at www.prudential.com. Performance results reflect the reinvestment of all income earned in the Account. Results are stated prior to the deduction of any investment advisory fees, and, if reflected, would reduce the performance quoted. Investors should carefully consider a fund’s investment objectives, risks, charges and expenses before investing. For more complete infor- mation about the investment options available through your accouunt, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Read the prospectus carefully before investing. Citigroup 3 Month T-Bill Index is an index whereby equal dollar amounts of three month Treasury Bills are purchased at the beginning of each of three consecutive months. As each bill matures, all proceeds are rolled over or reinvested in a new three month bill. The income used to calculate the monthly return is derived by subtracting the original amount invested from the maturity value. The Index performance reflects reinvestment of earnings, but has not been reduced to reflect the costs associated with investment management / advisory fees and transaction costs. Investors cannot invest directly in an index. These performance results represent the change in net asset value of an investment over a stated period, assuming the reinvestment of dividends and capital gains distributions. Shares of this fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20071115-A025306 PBMXX /Ed 9/30/2007
  • 5. Target Total Return Bond Fund R Third Quarter 2007 Sub-Advised by Pacific Investment Management Company (PIMCO) Fund Fact Sheet Objective/Description Key Facts The investment seeks current income and capital appreciation. The fund invests at least 80% of assets in "investment INVESTMENT ADVISOR: Prudential Investments grade" debt obligations issued or guaranteed by the U.S. Government and its agencies, or issued by U.S. companies, LLC foreign companies and foreign governments and their agencies and unrated debt obligations that we believe are FUND CATEGORY: Intermediate-Term Bond comparable in quality. It invests up to 30% of total assets in foreign currency-denominated debt obligations. There is INDEX: LB 5-10 Yr Govt/Credit® no assurance that the objectives of the Fund will be met. NET ASSETS: $20.7 Million INCEPTION DATE: 1/5/1993 Shares of this fund are not issued or guaranteed by the U.S. Government. The guarantee on U.S. Government TICKER SYMBOL: TTBRX securities applies only to the underlying securities of the Fund’s portfolio and not to the value of the fund’s shares. GROSS EXPENSE RATIO: 1.43% PORTFOLIO MANAGER: Chris P. Dialynas Top Five Holdings As of 6/30/2007 Quality Distribution As of 6/30/2007 Investor Risk Profile Data Not Available FNMA ........................................................................ 20.50% Irs Usd R 3ml 5.000% 12/19/12 Rec Fix; Rcv Cash, E 13.86% Irs Usd R 3ml 5.000% 12/19/12 Rec Fix; Rcv Cash, E 10.24% Interest Rate Swap Usd R 3ml/5.00% 06/18/09 Effect 8.33% As of 9/30/2007 Interest Rate Swap Usd R 3ml/5.00% 06/18/09 Effect 8.31% Morningstar Style BoxTM Top Five Holdings are unaudited and are ranked as a percentage of net assets. Data Not Available As of 6/30/2007 As of 6/30/2007 Top Five Sectors Portfolio Characteristics Mtg Pass-thru .............................................................. 44.12% Fund Index Cash (%of FI assets) .................................................... 29.99% Effective Duration NA 5.92 Yrs US Corporate.................................................................. 9.09% Average Maturity NA 7.60 Yrs US Treasury.................................................................... 8.45% Average Quality NA AA Results of $10,000 Investment* US Agency...................................................................... 2.37% Average Coupon 5.21% 6.06% 15,000.00 Performance*(%) As of 9/30/2007 10,000.00 Cumulative Returns Average Annual Total Returns _ Since 5,000.00 QTD YTD 1 Year 3 Year 5 Year 10 Year Inception 06 07 Fund 5.33 4.86 5.23 3.46 4.78 5.52 --- Index ▼ 3.31 3.87 5.00 3.50 4.59 6.42 --- Target Total Return Bond R $10,582 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a Annual Performance* 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense Fund ▼ ratio after the waiver is 1.18%. The Distributor has contractually agreed to this waiver through April 28, 2008. Index 2006 2.59% 3.81% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 2005 1.83% 1.83% expenses. Class R shares were introduced on August 21, 2006; results prior to that date are hypothetical, based on 2004 3.95% 5.30% Class T share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% 2003 8.03% 5.97% annually. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical Class R 2002 8.53% 13.03% share returns, no adjustments are made for any differences in other expenses of Class R and Class T shares that may 2001 7.50% 8.82% or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for 2000 9.83% 12.44% actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. The performance quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website at www.prudential.com Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070806-A023571
  • 6. Dryden Government Income R Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks current income. The fund invests at least 80% of assets in U.S. government securities, including INVESTMENT ADVISOR: Prudential Investments U.S. treasury bills, notes, bonds, strips and other debt securities issued by the U.S. treasury, and obligations, LLC including mortgage-related securities, issued or guaranteed by U.S. government agencies or instrumentalities. It FUND CATEGORY: Intermediate Government normally invests up to 20% of assets in money market instruments, including commercial paper of U.S. companies, INDEX: Lehman Brothers short-term obligations of banks, certificates of deposit, and banker's acceptances. The fund may invest in foreign bank Government Bond® debt. There is no assurance that the objectives of the Fund will be met. NET ASSETS: $0.4 Million INCEPTION DATE: 5/17/2004 Shares of this fund are not issued or guaranteed by the U.S. Government. The guarantee on U.S. Government TICKER SYMBOL: JDRVX securities applies only to the underlying securities of the Fund’s portfolio and not to the value of the fund’s shares. GROSS EXPENSE RATIO: 1.47% PORTFOLIO MANAGERS: Peter Cordrey Top Five Holdings As of 7/31/2007 Quality Distribution As of 7/31/2007 Robert Tipp, CFA Richard Piccirillo Dryden Core Short Corp Bond ..................................... 7.36% AAA 99.79% US Treasury Note ........................................................ 7.29% Investor Risk Profile US Treasury Note (Fut) ................................................ 6.59% FNMA 5.3% ................................................................ 5.85% A 0.17% FNMA 5.5% ................................................................ 5.00% Top Five Holdings are unaudited and are ranked as a percentage of net assets. Not Rated 0.04% Morningstar Style Box TM As of 9/30/2007 Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 The vertical axis represents the Mtg Pass-thru .............................................................. 39.59% Fund Index Fund's average credit quality as US Agency.................................................................... 24.48% Effective Duration 4.58 Yrs NA measured by Standard & Poor's rating service. Mortgage CMO ............................................................ 13.18% Average Maturity NA NA High >= AA US Treasury.................................................................... 8.79% Average Quality AAA NA Medium <AA and >=BBB Cash (%of FI assets) ...................................................... 7.28% Average Coupon 5.34% NA Low <BBB The horizontal axis represents the Fund's sensitivity to interest rates as measured by the average effective duration: Performance*(%) As of 9/30/2007 Short <=3.5 Yrs Medium > 3.5 Yrs and <=6 Yrs Cumulative Returns Average Annual Total Returns _ Long > 6 Yrs Since QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Results of $10,000 Investment* Fund 2.54 3.10 4.04 2.84 2.49 4.62 --- Index ▼ 3.61 4.75 5.63 3.79 3.49 5.88 --- 15,000.00 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense 10,000.00 ratio after the waiver is 1.24%. The Distributor has contractually agreed to this waiver through February 28, 2008. Past performance does not guarantee future results. Current performance may be lower or higher than the performance 5,000.00 data quoted. 04 05 06 07 Dryden Government Income R $11,186 The performance quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Annual Performance* For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website Fund ▼ at www.prudential.com Index 2006 2.91% 3.48% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 2005 1.80% 2.65% expenses. Class R shares were introduced on May 17, 2004; results prior to that date are hypothetical, based on 2004 2.49% 3.48% Class A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% 2003 1.44% 2.36% annually. Hypothetical waiver. In creating hypothetical Class R share returns, no adjustments are made for any 2002 9.60% 11.50% differences in other expenses of Class R and Class A shares that may or may not impact hypothetical Class R share 2001 7.14% 7.23% returns. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted 2000 10.98% 13.24% from income earned by the fund. As a result, dividends and investment results will differ for each share class. Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021218
  • 7. Dryden High-Yield R Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks to maximize current income; capital appreciation is a secondary consideration. The fund INVESTMENT ADVISOR: Prudential Investments normally invests at least 80% of assets in a diversified portfolio of high-yield fixed-income securities rated Ba or LLC lower by Moody's, or BB or lower by Standard & Poor's. It may invest in U.S.- dollar-denominated foreign-debt FUND CATEGORY: High Yield Bond securities and in foreign-currency-denominated debt securities. There is no assurance that the objectives of the Fund INDEX: Credit Suisse High will be met. Yield® NET ASSETS: $1 Million High yield "junk" bonds involve a greater risk of default of payment of principal and interest than higher-rated INCEPTION DATE: 6/3/2005 bonds. Also, these bonds tend to be less liquid than higher-rated securities. Therefore, an investment in the Fund TICKER SYMBOL: JDYRX may not be appropriate for short-term investing. GROSS EXPENSE RATIO: 1.36% PORTFOLIO MANAGERS: Michael J. Collins, CFA Paul Appleby, CFA As of 7/31/2007 Richard Burns, CFA Top Five Holdings As of 7/31/2007 Quality Distribution Stephen Haeckel Ford Motor Credit 7.875% .......................................... 1.73% B 45.92% Terrence Wheat, CFA Realogy 144A 12.375% ............................................... 1.29% Investor Risk Profile General Mtrs 7.2% ..................................................... 1.17% BB 30.5% Freescale Semicon 144A 9.125% ............................... 1.00% Below B 18.19% Data Not Available Hca 144A 9.25% ......................................................... 1.00% Top Five Holdings are unaudited and are ranked as a BBB 4.81% percentage of net assets. Not Rated 0.58% Morningstar Style BoxTM As of 9/30/2007 Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 The vertical axis represents the Fund's average credit quality as US Corporate................................................................ 87.75% Fund Index measured by Standard & Poor's Foreign Corp................................................................... 6.67% Effective Duration 3.72 Yrs NA rating service. High >= AA Asset-Backed ................................................................. 2.62% Average Maturity NA NA Medium <AA and >=BBB Cash (%of FI assets) ...................................................... 2.57% Average Quality B NA Low <BBB Convertible..................................................................... 0.23% Average Coupon 8.52% NA The horizontal axis represents the Fund's sensitivity to interest rates as measured by the average effective duration: To see a full disclosure of all risks that pertain to this fund, please refer to the prospectus. Short <=3.5 Yrs Medium > 3.5 Yrs and <=6 Yrs Performance*(%) As of 9/30/2007 Long > 6 Yrs Cumulative Returns Average Annual Total Returns _ Since Results of $10,000 Investment* QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund 0.47 3.17 6.97 6.74 11.12 4.18 --- 15,000.00 Index ▼ 0.05 3.74 8.36 7.48 12.49 6.38 --- * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 10,000.00 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense ratio after the waiver is 1.11%. The Distributor has contractually agreed to this waiver through February 28, 2008. 5,000.00 05 06 07 Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Dryden High-Yield R $11,666 The performance quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance Annual Performance* does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Fund Index ▼ For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2006 10.48% 11.92% at www.prudential.com 2005 2.54% 2.26% 2004 9.37% 11.96% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 2003 25.34% 27.93% expenses. Class R shares were introduced on June 3, 2005; results prior to that date are hypothetical, based on Class 2002 -2.23% 3.11% A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. The 2001 -0.26% 5.78% Portfolio's Distributor has contractually agreed to waive 0.25% annually of the Class R 12b-1 fee through August 31, 2000 -7.35 % -5.21% 2007. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021220
  • 8. Target Large Cap Growth Fund R Third Quarter 2007 Co-Investment Advisors: Marsico Capital, and Goldman Sachs Asset Management Fund Fact Sheet Objective/Description Key Facts The investment seeks long-term capital appreciation. The fund normally invests at least 80% of total assets in INVESTMENT ADVISOR: Prudential Investments LLC common stocks of companies with a total market capitalization of $5 billion or more (measured at the time of FUND CATEGORY: Large Growth purchase). It looks to invest in those securities that will experience earnings growth at a rate faster than that of the INDEX: Russell 1000 Growth® S&P 500 index. There is no assurance that the objectives of the Fund will be met. NET ASSETS: $26.9 Million INCEPTION DATE: 1/5/1993 TICKER SYMBOL: TLCRX SHARE CLASS: Other GROSS EXPENSE RATIO: 1.50% PORTFOLIO MANAGERS: Thomas F. Marsico Top Five Holdings As of 6/30/2007 Portfolio Allocation As of 6/30/2007 Robert C. Jones, CFA Melissa Brown, CFA UnitedHealth Group, Inc. ............................................. 3.61% US Stocks 91.88% Cisco Systems, Inc. ..................................................... 2.80% Microsoft Corporation ................................................. 2.16% Investor Risk Profile Monsanto Company .................................................... 2.15% Non-US Stocks 6.6% MasterCard Incorporated A ........................................ 1.97% Top Five Holdings are unaudited and are ranked as a percentage of net assets. Cash 1.52% Top Five Sectors As of 6/30/2007 Portfolio Characteristics As of 6/30/2007 Morningstar Style BoxTM As of 9/30/2007 Healthcare.................................................................... 15.73% Fund Index Consumer Services ...................................................... 14.67% Weighted Geometric Market Cap. $37.77 $35.82 Domestic equity funds are placed in Industrial Materials ..................................................... 12.97% Price/Earnings Ratio (Forward) 17.54x 18.54x a category based on the style and size of the stocks they typically Hardware ..................................................................... 11.73% Price/Book Ratio 3.1x 3.88x own. The style and size parameters Financial Services ........................................................ 10.99% Dividend Yield 0.28% NA are based on the divisions used in 3-Year Earnings Growth Rate 29.41% 25.46% the investment style box: Value, Blend, or Growth style and Small, Medium, or Large geometric average market capitalization. Performance*(%) As of 9/30/2007 Cumulative Returns Average Annual Total Returns Since Results of $10,000 Investment* QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund 4.43 10.35 17.86 12.07 14.40 5.09 --- 15,000.00 Index ▼ 4.21 12.68 19.35 12.20 13.84 4.06 --- * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 10,000.00 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense ratio after the waiver is 1.25%. The Distributor has contractually agreed to this waiver through April 28, 2008. 5,000.00 Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 06 07 expenses. Class R shares were introduced on August 21, 2006; results prior to that date are hypothetical, based on Target Large Capitalization Growth R $12,056 Class T share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class T shares that may Annual Performance* or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for Fund Index ▼ actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. 2006 7.78% 9.07% 2005 5.95% 5.26% The performance quoted represents past performance. The investment return and principal value will fluctuate 2004 3.00% 6.30% so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2003 38.49% 29.75% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2002 -32.21% -27.88% -30.84% -20.42% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2001 -4.09% -22.42% at www.prudential.com 2000 Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021230
  • 9. Jennison Growth R Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks long-term growth of capital. The fund normally invests at least 65% of assets in equity related INVESTMENT ADVISOR: Prudential Investments LLC securities of medium to large capitalization companies that exceed $1 billion in market capitalization. It may invest in FUND CATEGORY: Large Growth common stocks, nonconvertible securities, ADRs, REITs, warrants and rights that can be exercised to obtain stock. INDEX: Russell 1000 Growth® The fund may invest up to 20% of assets in foreign equity securities. It may also invest in mortgage-backed NET ASSETS: $3 Million securities, money market instruments, options and make short sales of a security. There is no assurance that the INCEPTION DATE: 12/17/2004 objectives of the Fund will be met. TICKER SYMBOL: PJGRX SHARE CLASS: Retirement GROSS EXPENSE RATIO: 1.54% PORTFOLIO MANAGERS: Spiros Segalas Kathleen A. McCarragher As of 7/31/2007 As of 7/31/2007 Michael A. Del Balso Top Five Holdings Portfolio Allocation Google, Inc. ................................................................. 4.83% Investor Risk Profile Gilead Sciences, Inc. ................................................... 3.33% US Stocks 88.73% Adobe Systems Inc. .................................................... 3.16% Apple, Inc. ................................................................... 3.09% Non-US Stocks 11% Data Not Available Boeing Company ......................................................... 2.67% Top Five Holdings are unaudited and are ranked as a percentage of net assets. Cash 0.27% Morningstar Style BoxTM As of 9/30/2007 Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 Domestic equity funds are placed in Hardware ..................................................................... 21.88% Fund Index a category based on the style and Healthcare.................................................................... 20.52% Weighted Geometric Market Cap. $52.82 $35.82 size of the stocks they typically Industrial Materials ....................................................... 9.52% Price/Earnings Ratio (Forward) 21.19x 18.54x own. The style and size parameters Financial Services .......................................................... 9.45% are based on the divisions used in Price/Book Ratio 4.3x 3.88x the investment style box: Value, Consumer Goods............................................................ 8.97% Dividend Yield 0.00% NA Blend, or Growth style and Small, 3-Year Earnings Growth Rate 34.37% 25.46% Medium, or Large geometric average market capitalization. Performance*(%) As of 9/30/2007 Results of $10,000 Investment* Cumulative Returns Average Annual Total Returns Since 15,000.00 QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund 5.93 10.60 15.15 12.17 13.04 4.29 --- 10,000.00 Index ▼ 4.21 12.68 19.35 12.20 13.84 4.06 --- 5,000.00 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense - ratio after the waiver is 1.29%. The Distributor has contractually agreed to this waiver through February 28, 2008. 04 05 06 Jennison Growth R $12,766 Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Annual Performance* The performance quoted represents past performance. The investment return and principal value will fluctuate Fund Index so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2006 1.61% 9.07% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2005 13.60% 5.26% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2004 8.32% 6.30% at www.prudential.com 2003 29.24% 29.75% 2002 -31.50% -27.88% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 2001 -18.96% -20.42% expenses. Class R shares were introduced on December 17, 2004; results prior to that date are hypothetical, based 2000 -18.34% -22.42% on Class A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. Hypothetical waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class A shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021225
  • 10. Dryden Stock Index A Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks to mirror the returns of the S&P 500 Index. The fund normally invests at least 80% of assets in INVESTMENT ADVISOR: Prudential Investments LLC securities included in the S&P 500 Index according to each security's weighting in the index. Management attempts FUND CATEGORY: Large Blend to achieve a performance correlation with the S&P 500 of 0.95 irrespective of expenses. The fund may invest in INDEX: Russell 1000® derivatives. There is no assurance the objectives of the Fund will be met. NET ASSETS: $114 Million INCEPTION DATE: 11/18/1999 TICKER SYMBOL: PSIAX SHARE CLASS: A GROSS EXPENSE RATIO: 0.72% PORTFOLIO MANAGERS: John Moschberger, CFA Wai C. Chiang Richard L. Crist Top Five Holdings As of 7/31/2007 Portfolio Allocation As of 7/31/2007 Investor Risk Profile ExxonMobil Corporation .............................................. 3.57% US Stocks 96.04% General Electric Company ........................................... 2.96% S&P 500 Index (Fut) ..................................................... 1.94% Microsoft Corporation ................................................. 1.83% Cash 2.02% AT&T, Inc. ................................................................... 1.81% As of 9/30/2007 Top Five Holdings are unaudited and are ranked as a Morningstar Style BoxTM percentage of net assets. Non-US Stocks 1.94% Domestic equity funds are placed in a category based on the style and Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 size of the stocks they typically own. The style and size parameters Financial Services ........................................................ 19.96% Fund Index are based on the divisions used in Industrial Materials ..................................................... 12.70% Weighted Geometric Market Cap. $54.59 $42.22 the investment style box: Value, Healthcare.................................................................... 11.69% Price/Earnings Ratio (Forward) 14.8x 15.87x Blend, or Growth style and Small, Medium, or Large geometric Energy .......................................................................... 11.05% Price/Book Ratio 2.58x 2.64x average market capitalization. Hardware ..................................................................... 10.14% Dividend Yield 1.44% NA 3-Year Earnings Growth Rate 22.54% 22.02% Results of $10,000 Investment* Performance*(%) As of 9/30/2007 15,000.00 Cumulative Returns Average Annual Total Returns 10,000.00 Since QTD YTD 1 Year 3 Year 5 Year 10 Year Inception 5,000.00 Fund 1.91 8.73 15.82 12.51 14.78 6.01 --- Index ▼ 1.98 9.30 16.90 13.77 15.98 6.86 --- - 99 00 01 02 03 04 05 06 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a Dryden Stock Index A $12,028 12b-1 fee of (0.25%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense ratio after the waiver is 0.47%. The Distributor has contractually agreed to this waiver through February 28, 2008. Annual Performance* The performance quoted represents past performance. The investment return and principal value will fluctuate Fund Index ▼ so that an investor's shares, when redeemed, may be worth more or less than original cost. For performance 2006 15.17% 15.46% information current to the most recent month end, please call 1-800-458-6333 or visit our website at 2005 4.28% 6.27% www.prudential.com. These performance results represent the change in net asset value of an investment over 2004 10.22% 11.40% a stated period, assuming the reinvestment of dividends and capital gains distributions. The performance results 2003 27.93% 29.89% shown do not reflect the deduction of the sales charge that may apply if the Fund shares were purchased 2002 -22.52% -21.65% outside of the plans or other programs. This waiver applies because the source of this money is from a 2001 -12.39% -12.45% retirement plan record kept by Prudential Retirement. If a sales charge were reflected, performance would be 2000 -9.10% -7.79% lower. This is the performance that best reflects your investment experience, as sales charges do not apply to your plan. Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021227
  • 11. Jennison 20/20 Focus R Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks long-term growth of capital. The fund normally invests at least 80% of assets in up to 40 INVESTMENT ADVISOR: Prudential Investments LLC equity-related securities of U.S. companies with strong capital appreciation potential. The holding consists of up to 20 FUND CATEGORY: Large Blend growth and 20 value stocks. It may invest in common stocks, nonconvertible preferred stocks and convertible INDEX: Russell 1000® securities. The fund participates in the IPO market. It may actively and frequently trade its portfolio securities. The NET ASSETS: $7.5 Million fund is nondiversified. There is no assurance that the objectives of the Fund will be met. INCEPTION DATE: 6/14/2004 TICKER SYMBOL: JTWRX SHARE CLASS: Retirement GROSS EXPENSE RATIO: 1.68% PORTFOLIO MANAGERS: Spiros Segalas David A. Kiefer, CFA Top Five Holdings As of 7/31/2007 Portfolio Allocation As of 7/31/2007 Investor Risk Profile Suncor Energy, Inc. ..................................................... 3.42% US Stocks 83.44% Waste Management, Inc. ........................................... 3.35% Best Buy Co., Inc. ........................................................ 3.28% Cadbury Schweppes PLC ADR .................................... 3.11% Non-US Stocks 13.86% ConAgra Foods, Inc. .................................................... 3.04% Top Five Holdings are unaudited and are ranked as a As of 9/30/2007 percentage of net assets. Cash 2.7% Morningstar Style BoxTM Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 Domestic equity funds are placed in a category based on the style and Industrial Materials ..................................................... 19.70% Fund Index size of the stocks they typically own. The style and size parameters Hardware ..................................................................... 12.47% Weighted Geometric Market Cap. $35.41 $42.22 are based on the divisions used in Consumer Services ...................................................... 11.24% Price/Earnings Ratio (Forward) 18.33x 15.87x the investment style box: Value, Healthcare.................................................................... 10.36% Price/Book Ratio 3.03x 2.64x Blend, or Growth style and Small, Medium, or Large geometric Energy ............................................................................ 9.96% Dividend Yield 0.00% NA average market capitalization. 3-Year Earnings Growth Rate 29.51% 22.02% Performance*(%) As of 9/30/2007 Results of $10,000 Investment* Cumulative Returns Average Annual Total Returns Since 20,000.00 QTD YTD 1 Year 3 Year 5 Year 10 Year Inception 15,000.00 Fund 2.52 11.28 18.46 19.41 19.93 -- 11.58 Index ▼ 1.98 9.30 16.90 13.77 15.98 -- N/A 10,000.00 5,000.00 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a - 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense 04 05 06 07 ratio after the waiver is 1.43%. The Distributor has contractually agreed to this waiver through February 28, 2008. Jennison 20/20 Focus R $16,831 Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Annual Performance* The performance quoted represents past performance. The investment return and principal value will fluctuate Fund Index ▼ so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2006 14.06% 15.46% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2005 21.33% 6.27% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2004 16.17% 11.40% at www.prudential.com 2003 28.15% 29.89% 2002 -22.95% -21.65% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 2001 -2.59% -12.45% expenses. Class R shares were introduced on June 14, 2004; results prior to that date are hypothetical, based on 2000 -8.68% -7.79% Class A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. Hypothetical waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class A shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021222
  • 12. Target Large Cap Value Fund R Third Quarter 2007 Co-Investment Advisors: Hotchkis & Wiley Capital Management, JP Morgan Asset Management, and NFJ Investment Group Fund Fact Sheet Objective/Description Key Facts The investment seeks total return consisting of capital appreciation and dividend income. The fund normally invests INVESTMENT ADVISOR: Prudential Investments LLC at least 80% of total assets in common stocks and convertibles of large companies with market capitalizations like FUND CATEGORY: Large Value those in the Russell 1000 index. There is no assurance that the objectives of the Fund will be met. INDEX: Russell 1000 Value® NET ASSETS: $27.1 Million INCEPTION DATE: 1/5/1993 TICKER SYMBOL: TLVRX SHARE CLASS: Other GROSS EXPENSE RATIO: 1.47% PORTFOLIO MANAGERS: Christopher Najork, CFA Top Five Holdings As of 3/31/2007 Portfolio Allocation As of 3/31/2007 Ben Fischer Paul A. Magnuson Bank Of America Corporation ..................................... 3.13% US Stocks 89.39% Sheldon J. Lieberman Citigroup, Inc. .............................................................. 2.85% Patricia McKenna, CFA ExxonMobil ................................................................. 2.63% Non-US Stocks 6.01% At&T, Inc. .................................................................... 2.56% Verizon Communications ............................................. 2.08% Investor Risk Profile Top Five Holdings are unaudited and are ranked as a Other 2.88% percentage of net assets. Cash 1.72% Top Five Sectors As of 3/31/2007 Portfolio Characteristics As of 3/31/2007 Financial Services ........................................................ 28.55% Fund Index As of 9/30/2007 Industrial Materials ..................................................... 14.73% Weighted Geometric Market Cap. $32.43 $50.12 Morningstar Style Box TM Energy .......................................................................... 13.61% Price/Earnings Ratio (Forward) 13.23x 13.77x Consumer Goods............................................................ 7.36% Price/Book Ratio 1.87x 1.98x Domestic equity funds are placed in Healthcare...................................................................... 6.80% Dividend Yield 1.40% NA a category based on the style and size of the stocks they typically 3-Year Earnings Growth Rate 22.94% 18.97% own. The style and size parameters are based on the divisions used in the investment style box: Value, Performance*(%) As of 9/30/2007 Blend, or Growth style and Small, Medium, or Large geometric Cumulative Returns Average Annual Total Returns average market capitalization. Since QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund -1.46 4.99 13.17 13.50 18.04 7.42 --- Results of $10,000 Investment* Index -0.24 5.97 14.45 15.25 18.07 8.80 --- 15,000.00 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense 10,000.00 ratio after the waiver is 1.22%. The Distributor has contractually agreed to this waiver through April 28, 2008. 5,000.00 Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Class R shares were introduced on August 21, 2006; results prior to that date are hypothetical, based on - Class T share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% 06 07 annually. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical Class R Target Large Capitalization Value R $11,549 share returns, no adjustments are made for any differences in other expenses of Class R and Class T shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and Annual Performance* investment results will differ for each share class. Fund Index The performance quoted represents past performance. The investment return and principal value will fluctuate 2006 18.61% 22.25% so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2005 5.70% 7.05% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2004 17.98% 16.49% 35.35% 30.03% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2003 -14.22% -15.52% at www.prudential.com 2002 2001 0.46% -5.59% 7.41% 7.01% Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and 2000 expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070808-A021231
  • 13. Jennison Value R Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks capital appreciation. The fund normally invests at least 65% of assets in common stock and INVESTMENT ADVISOR: Prudential Investments LLC convertible securities of large capitalization companies. It may invest up to 25% of assets in REITs and up to 10% of FUND CATEGORY: Large Value assets in ETFs. The fund may also invest in foreign securities, money market instruments, options, foreign currency, INDEX: Russell 1000 Value® forward contracts and may make short sales of a security. There is no assurance that the objectives of the Fund will NET ASSETS: $2.1 Million be met. INCEPTION DATE: 6/3/2005 TICKER SYMBOL: JDVRX SHARE CLASS: Retirement GROSS EXPENSE RATIO: 1.48% PORTFOLIO MANAGERS: David A. Kiefer, CFA Top Five Holdings As of 7/31/2007 Portfolio Allocation As of 7/31/2007 Avi Z. Berg Cadbury Schweppes PLC ADR .................................... 2.61% Investor Risk Profile American International Group ..................................... 2.48% US Stocks 83.25% Petroleo Brasileiro S.A. (ADR) ..................................... 2.41% Data Not Available Citigroup, Inc. .............................................................. 2.39% Non-US Stocks 15.81% Sprint Nextel Corporation ........................................... 2.37% Top Five Holdings are unaudited and are ranked as a percentage of net assets. Other 0.93% Morningstar Style Box TM As of 9/30/2007 Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 Domestic equity funds are placed in Financial Services ........................................................ 23.68% Fund Index a category based on the style and Energy .......................................................................... 12.90% size of the stocks they typically Weighted Geometric Market Cap. $33.11 $50.12 own. The style and size parameters Consumer Services ...................................................... 10.29% Price/Earnings Ratio (Forward) 14.01x 13.77x are based on the divisions used in Consumer Goods............................................................ 9.83% Price/Book Ratio 2.05x 1.98x the investment style box: Value, Industrial Materials ....................................................... 9.35% Dividend Yield 0.47% NA Blend, or Growth style and Small, Medium, or Large geometric 3-Year Earnings Growth Rate 17.88% 18.97% average market capitalization. Performance*(%) As of 9/30/2007 Results of $10,000 Investment* Cumulative Returns Average Annual Total Returns Since 20,000.00 QTD YTD 1 Year 3 Year 5 Year 10 Year Inception 15,000.00 Fund -1.44 6.98 15.53 17.26 18.52 6.89 --- Index ▼ -0.24 5.97 14.45 15.25 18.07 8.80 --- 10,000.00 5,000.00 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a - 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense 05 06 07 ratio after the waiver is 1.23%. The Distributor has contractually agreed to this waiver through February 28, 2008. Jennison Value R $14,132 Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Annual Performance* The performance quoted represents past performance. The investment return and principal value will fluctuate Fund Index ▼ so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2006 18.90% 22.25% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2005 15.21% 7.05% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2004 14.90% 16.49% at www.prudential.com 2003 26.81% 30.03% 2002 -22.51% -15.52% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 2001 -3.60% -5.59% expenses. Class R shares were introduced on June 3, 2005; results prior to that date are hypothetical, based on Class 2000 14.22% 7.01% A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. Hypothetical waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class A shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021219
  • 14. Jennison Mid Cap Growth R Third Quarter 2007 Formerly known as Jennison US Emerging Growth R Fund Fact Sheet Objective/Description Key Facts The fund normally invests at least 80% of assets in equity and equity-related securities of medium-sized INVESTMENT ADVISOR: Prudential Investments LLC companies with the potential for above-average growth. There is no assurance the objectives of the Fund FUND CATEGORY: Mid-Cap Growth will be met. INDEX: Russell Midcap Growth® NET ASSETS: $6.3 Million The securities of emerging growth companies are generally subject to greater price fluctuation and investment INCEPTION DATE: 6/3/2005 risk than securities of more established companies. TICKER SYMBOL: JDERX SHARE CLASS: Retirement GROSS EXPENSE RATIO: 1.66% PORTFOLIO MANAGER: John Mullman, CFA Top Five Holdings As of 7/31/2007 Portfolio Allocation As of 7/31/2007 NII Holdings, Inc. ......................................................... 3.69% Investor Risk Profile Davita, Inc. .................................................................. 2.37% US Stocks 95.04% American Tower Corporation A .................................. 2.32% Data Not Available Ametek, Inc. ................................................................ 2.19% Cash 2.62% Quest Diagnostics, Inc. ............................................... 2.10% Top Five Holdings are unaudited and are ranked as a percentage of net assets. Non-US Stocks 2.34% Morningstar Style Box TM As of 9/30/2007 Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 Domestic equity funds are placed in Industrial Materials ..................................................... 16.37% Fund Index a category based on the style and Healthcare.................................................................... 14.78% Weighted Geometric Market Cap. $7.14 $8.02 size of the stocks they typically own. The style and size parameters Business Services ........................................................ 11.76% Price/Earnings Ratio (Forward) 21.61x 17.92x are based on the divisions used in Energy .......................................................................... 10.83% Price/Book Ratio 2.84x 3.48x the investment style box: Value, Software ...................................................................... 10.47% Dividend Yield 0.00% NA Blend, or Growth style and Small, Medium, or Large geometric 3-Year Earnings Growth Rate 27.85% 28.81% average market capitalization. Performance*(%) As of 9/30/2007 Results of $10,000 Investment* Cumulative Returns Average Annual Total Returns Since 15,000.00 QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund 6.46 17.81 22.92 20.83 22.69 9.95 --- 10,000.00 Index ▼ 2.15 13.35 21.22 17.01 20.39 7.47 --- 5,000.00 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a - 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense 05 06 07 ratio after the waiver is 1.41%. The Distributor has contractually agreed to this waiver through February 28, 2008. Jennison Mid Cap Growth R $15,058 Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Annual Performance* The performance quoted represents past performance. The investment return and principal value will fluctuate Fund Index ▼ so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2006 9.19% 10.66% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2005 16.74% 12.10% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2004 18.78% 15.48% at www.prudential.com 2003 42.47% 42.71% 2002 -33.81% -27.41% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 2001 -20.65% -20.15% expenses. Class R shares were introduced on June 3, 2005; results prior to that date are hypothetical, based on Class 2000 -13.89% -11.75% A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. Hypothetical waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class A shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021217
  • 15. Target Small Cap Growth Fund R Third Quarter 2007 Co-Investment Advisors: RS Investments, and Transamerica Investment Management LLC Fund Fact Sheet Objective/Description Key Facts The investment seeks capital appreciation. The fund normally invests at least 80% of assets in common stocks of INVESTMENT ADVISOR: Prudential Investments LLC companies with a total market capitalization of less than $2.5 billion. There is no assurance that the objectives of the FUND CATEGORY: Small Growth Fund will be met. INDEX: Russell 2000 Growth® NET ASSETS: $10.9 Million Smaller companies may present greater opportunities for capital appreciation, but may also involve greater risks INCEPTION DATE: 1/5/1993 than larger companies. As a result, the value of stocks issued by smaller companies may fluctuate more than stocks TICKER SYMBOL: TSCRX of larger issuers. SHARE CLASS: Other GROSS EXPENSE RATIO: 1.59% PORTFOLIO MANAGERS: Gregory Weirick, CFA Top Five Holdings As of 3/31/2007 Portfolio Allocation As of 3/31/2007 Josh D Shaskan, CFA Jeffery J Hoo, CFA John J. Huber, CFA Cabot Oil & Gas Corporation A ................................... 1.49% US Stocks 85.41% Bill Wolfenden Phillips-Van Heusen Corporation ................................ 0.87% iShares Russell 2000 Value Index ............................... 0.86% Other 8.23% Delphi Financial Group ................................................ 0.82% Investor Risk Profile Westar Energy, Inc. ..................................................... 0.80% Cash 3.69% Top Five Holdings are unaudited and are ranked as a percentage of net assets. Non-US Stocks 2.66% Top Five Sectors As of 3/31/2007 Portfolio Characteristics As of 3/31/2007 As of 9/30/2007 Industrial Materials ..................................................... 24.92% Fund Index Morningstar Style BoxTM Financial Services ........................................................ 22.36% Weighted Geometric Market Cap. $1.58 $1.00 Energy ............................................................................ 9.21% Price/Earnings Ratio (Forward) 15.93x 14.73x Domestic equity funds are placed in Business Services .......................................................... 8.78% Price/Book Ratio 1.91x 1.48x a category based on the style and size of the stocks they typically Consumer Goods............................................................ 7.45% Dividend Yield 0.81% NA own. The style and size parameters 3-Year Earnings Growth Rate 25.14% 14.92% are based on the divisions used in the investment style box: Value, Blend, or Growth style and Small, To see a full disclosure of all risks that pertain to this fund, please refer to the prospectus. Medium, or Large geometric average market capitalization. Performance*(%) As of 9/30/2007 Cumulative Returns Average Annual Total Returns Since Results of $10,000 Investment* QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund 1.22 9.82 18.21 12.20 12.86 1.71 --- 15,000.00 Index 0.02 9.35 18.94 14.10 18.70 3.65 --- * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 10,000.00 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense ratio after the waiver is 1.34%. The Distributor has contractually agreed to this waiver through April 28, 2008. 5,000.00 Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 06 07 expenses. Class R shares were introduced on August 21, 2006; results prior to that date are hypothetical, based on Target Small Capitalization Growth R $11,937 Class T share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class T shares that may Annual Performance* or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for Fund Index actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. 2006 6.91% 13.35% 2005 3.76% 4.15% The performance quoted represents past performance. The investment return and principal value will fluctuate 2004 14.17% 14.31% so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2003 32.06% 48.54% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2002 -33.74% -30.26% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2001 -19.93% -9.23% 1.07% -22.43% at www.prudential.com 2000 Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070808-A021245
  • 16. Jennison Small Company R Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks capital growth. The fund normally invests at least 80% of assets in equity securities of small, INVESTMENT ADVISOR: Prudential Investments LLC less well-known undervalued U.S. companies. It may invest up to 20% of assets in equity-related securities including FUND CATEGORY: Small Growth nonconvertible preferred stocks and convertible securities. The fund may also invest in foreign securities, REITs, INDEX: Russell 2000 Growth® high-quality money market instruments, options, foreign currency forward contracts and may make short sales of a NET ASSETS: $12.7 Million security. There is no assurance that the objectives of the Fund will be met. INCEPTION DATE: 5/10/2004 TICKER SYMBOL: JSCRX Smaller companies may present greater opportunities for capital appreciation, but may also involve greater risks SHARE CLASS: Retirement GROSS EXPENSE RATIO: 1.67% than larger companies. As a result, the value of stocks issued by smaller companies may fluctuate more than stocks PORTFOLIO MANAGER: John Mullman, CFA of larger issuers. Investor Risk Profile Top Five Holdings As of 7/31/2007 Portfolio Allocation As of 7/31/2007 SBA Communications Corporation .............................. 2.11% US Stocks 95.91% Insight Enterprises, Inc. ............................................... 1.88% Denbury Resources, Inc. .............................................. 1.85% Idex Corporation .......................................................... 1.71% Cash 2.73% Pentair, Inc. ................................................................. 1.66% Morningstar Style Box TM As of 9/30/2007 Top Five Holdings are unaudited and are ranked as a percentage of net assets. Non-US Stocks 1.36% Domestic equity funds are placed in a category based on the style and size of the stocks they typically Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 own. The style and size parameters are based on the divisions used in Business Services ........................................................ 16.53% Fund Index the investment style box: Value, Healthcare.................................................................... 14.79% Weighted Geometric Market Cap. $1.92 $1.19 Blend, or Growth style and Small, Industrial Materials ..................................................... 13.17% Price/Earnings Ratio (Forward) 20.22x 19.89x Medium, or Large geometric average market capitalization. Consumer Services ...................................................... 11.20% Price/Book Ratio 2.61x 3.14x Hardware ..................................................................... 10.71% Dividend Yield 0.00% NA 3-Year Earnings Growth Rate 19.59% NA Results of $10,000 Investment* To see a full disclosure of all risks that pertain to this fund, please refer to the prospectus. 20,000.00 Performance*(%) As of 9/30/2007 15,000.00 Cumulative Returns Average Annual Total Returns 10,000.00 Since 5,000.00 QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund 0.67 12.13 19.80 17.96 21.62 6.72 --- - Index ▼ 0.02 9.35 18.94 14.10 18.70 3.65 --- 04 05 06 07 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a Jennison Small Company R $16,689 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense ratio after the waiver is 1.42%. The Distributor has contractually agreed to this waiver through February 28, 2008. Annual Performance* Past performance does not guarantee future results. Current performance may be lower or higher than the performance Fund Index ▼ data quoted. 2006 14.77% 13.35% 2005 14.30% 4.15% The performance quoted represents past performance. The investment return and principal value will fluctuate 2004 19.04% 14.31% so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2003 44.59% 48.54% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2002 -25.72% -30.26% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2001 15.55% -9.23% at www.prudential.com 2000 8.87% -22.43% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and expenses. Class R shares were introduced on May 10, 2004; results prior to that date are hypothetical, based on Class A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. Hypothetical waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class A shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021221
  • 17. Target Small Cap Value Fund R Co-Investment Advisors: EARNEST Partners, LLC; NFJ Investment Group; JP Morgan Asset Management; Third Quarter 2007 Lee Munder Capital Group; and Vaughan Nelson Investment Management Fund Fact Sheet Objective/Description Key Facts The investment seeks above-average capital appreciation. The fund normally invests at least 80% of assets in INVESTMENT ADVISOR: Prudential Investments LLC common stocks of companies with a total market capitalization of less than $2.5 billion. There is no assurance that FUND CATEGORY: Small Blend the objectives of the Fund will be met. INDEX: Russell 2000® NET ASSETS: $13.1 Million Smaller companies may present greater opportunities for capital appreciation, but may also involve greater risks INCEPTION DATE: 1/5/1993 than larger companies. As a result, the value of stocks issued by smaller companies may fluctuate more than stocks TICKER SYMBOL: TSVRX of larger issuers. SHARE CLASS: Other GROSS EXPENSE RATIO: 1.55% PORTFOLIO MANAGERS: E. Clifton Hoover Jr., CFA Top Five Holdings As of 3/31/2007 Portfolio Allocation As of 3/31/2007 Paul E. Viera Benno J. Fischer, CFA Paul A. Magnuson Cabot Oil & Gas Corporation A ................................... 1.49% US Stocks 85.41% R. Todd Vingers Phillips-Van Heusen Corporation ................................ 0.87% iShares Russell 2000 Value Index ............................... 0.86% Other 8.23% Delphi Financial Group ................................................ 0.82% Investor Risk Profile Westar Energy, Inc. ..................................................... 0.80% Cash 3.69% Top Five Holdings are unaudited and are ranked as a percentage of net assets. Non-US Stocks 2.66% Top Five Sectors As of 3/31/2007 Portfolio Characteristics As of 3/31/2007 As of 9/30/2007 Industrial Materials ..................................................... 24.92% Fund Index Morningstar Style BoxTM Financial Services ........................................................ 22.36% Weighted Geometric Market Cap. $1.58 $1.00 Energy ............................................................................ 9.21% Price/Earnings Ratio (Forward) 15.93x 14.73x Domestic equity funds are placed in Business Services .......................................................... 8.78% Price/Book Ratio 1.91x 1.48x a category based on the style and size of the stocks they typically Consumer Goods............................................................ 7.45% Dividend Yield 0.81% NA own. The style and size parameters 3-Year Earnings Growth Rate 25.14% 14.92% are based on the divisions used in the investment style box: Value, Blend, or Growth style and Small, To see a full disclosure of all risks that pertain to this fund, please refer to the prospectus. Medium, or Large geometric average market capitalization. Performance*(%) As of 9/30/2007 Cumulative Returns Average Annual Total Returns Since Results of $10,000 Investment* QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund -2.59 4.95 13.80 14.88 20.62 11.03 --- 15,000.00 Index -3.09 3.16 12.34 13.36 18.75 7.22 --- * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 10,000.00 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense ratio after the waiver is 1.30%. The Distributor has contractually agreed to this waiver through April 28, 2008. 5,000.00 Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 06 07 expenses. Class R shares were introduced on August 21, 2006; results prior to that date are hypothetical, based on Target Small Capitalization Value R $11,390 Class T share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% annually. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class T shares that may Annual Performance* or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for Fund Index actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. 2006 17.04% 18.37% 2005 9.28% 4.55% The performance quoted represents past performance. The investment return and principal value will fluctuate 2004 23.09% 18.33% so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance 2003 46.00% 47.25% does not guarantee future results. Current performance may be lower or higher than the performance data quoted. 2002 -9.17% -20.48% For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website 2001 16.36% 2.49% 22.99% -3.02% at www.prudential.com 2000 Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070808-A021251
  • 18. Target International Equity Fund R Third Quarter 2007 Co-Investment Advisors: LSV Asset Management, and Thornburg Investment Management Fund Fact Sheet Objective/Description Key Facts The investment seeks capital appreciation. The fund normally invests at least 80% of total assets in stocks of INVESTMENT ADVISOR: Prudential Investments companies in diverse array of foreign countries. It may invest in companies of any size. There is no assurance that the LLC objectives of the Fund will be met. FUND CATEGORY: Foreign Large Blend INDEX: MSCI WORLD ex US Investing in foreign securities presents certain unique risks not associated with domestic investments, such as NDTR_D® currency fluctuation and political and economic changes. This may result in greater share price volatility. NET ASSETS: $22.5 Million INCEPTION DATE: 1/5/1993 TICKER SYMBOL: TEQRX SHARE CLASS: Other GROSS EXPENSE RATIO: 1.68% Top Five Holdings As of 6/30/2007 Portfolio Allocation As of 6/30/2007 PORTFOLIO MANAGERS: Wendy Trevisani Menno Vermuelen, CFA Robert Vishny BASF ........................................................................... 2.17% Non-US Stocks 96.88% Josef Lakonishok Lloyds TSB Grp ............................................................ 2.00% William V. Fries, CFA Toyota Motor .............................................................. 1.96% US Stocks 1.98% Teva Pharmaceutical Industries, Ltd. ADR .................. 1.77% UBS AG ....................................................................... 1.48% Investor Risk Profile Top Five Holdings are unaudited and are ranked as a Cash 0.9% percentage of net assets. Other 0.24% Top Five Countries As of 6/30/2007 Portfolio Characteristics As of 6/30/2007 United Kingdom ........................................................... 20.52% Fund Index Japan ........................................................................... 14.11% Weighted Geometric Market Cap. $35.41 $33.08 Results of $10,000 Investment* Switzerland .................................................................... 9.05% Price/Earnings Ratio (Forward) 13.84x 14.06x France ............................................................................ 8.98% Price/Book Ratio 2.25x 2.05x 15,000.00 Germany......................................................................... 6.10% Dividend Yield 1.18% NA 3-Year Earnings Growth Rate 25.29% 28.19% 10,000.00 5,000.00 Performance*(%) As of 9/30/2007 Cumulative Returns Average Annual Total Returns - Since 06 07 QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Target International Equity R $13,274 Fund 4.94 19.32 32.10 25.03 22.06 7.31 --- Index ▼ 2.71 14.29 25.85 23.72 24.08 8.30 --- Annual Performance* * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a Fund Index ▼ 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense 2006 28.19% 25.71% ratio after the waiver is 1.43%. The Distributor has contractually agreed to this waiver through April 28, 2008. 2005 13.27% 14.47% 2004 14.37% 20.39% Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees and 2003 27.80% 39.42% expenses. Class R shares were introduced on August 21, 2006; results prior to that date are hypothetical, based on 2002 -10.84% -15.80% Class T share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 0.75% 2001 -25.12% -21.40% annually. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical Class R 2000 -10.09% -13.35% share returns, no adjustments are made for any differences in other expenses of Class R and Class T shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. The performance quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website at www.prudential.com Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021228
  • 19. Jennison Natural Resources Fund R Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks long-term growth of capital. The fund normally invests at least 80% of assets in equity INVESTMENT ADVISOR: Prudential Investments LLC securities of natural resource companies and in asset-based securities. It may invest up to 100% of assets in foreign FUND CATEGORY: Specialty-Natural Res securities, including stocks and other equity-related securities, money market instruments and fixed income securities INDEX: Goldman Sachs Natural issued by foreign issuers. The fund may also invest in ADRs, ADSs, money market instruments, bonds, futures Resources® contracts, foreign currency forward contracts and may participate in the IPO market. It is nondiversified. There is no NET ASSETS: $4.3 Million assurance that the objectives of the Fund will be met. INCEPTION DATE: 1/22/1990 TICKER SYMBOL: JNRRX Sector funds are subject to risks within their specific sectors because they concentrate their investments in securities SHARE CLASS: R GROSS EXPENSE RATIO: of companies within certain industries. Therefore, the price of these securities can be volatile. 1.69% PORTFOLIO MANAGERS: Michael A. Del Balso Top Five Holdings As of 7/31/2007 Portfolio Allocation As of 7/31/2007 David A. Kiefer, CFA Freeport-McMoRan Copper & Gold B ......................... 3.61% Investor Risk Profile Suncor Energy, Inc. ..................................................... 2.62% US Stocks 50.08% National Oilwell Varco, Inc. ........................................ 2.54% Non-US Stocks 44.32% MMX Mineracao e Metalicos ..................................... 2.54% Transocean, Inc. .......................................................... 2.33% Cash 5.35% Top Five Holdings are unaudited and are ranked as a percentage of net assets. Other 0.25% Morningstar Style Box TM As of 9/30/2007 Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 Domestic equity funds are placed in Energy .......................................................................... 58.32% Fund Index a category based on the style and Industrial Materials ..................................................... 39.56% size of the stocks they typically Weighted Geometric Market Cap. $9.14 $38.45 own. The style and size parameters Utilities .......................................................................... 1.36% Price/Earnings Ratio (Forward) 15.26x 13.45x are based on the divisions used in Financial Services .......................................................... 0.72% Price/Book Ratio 2.54x 2.31x the investment style box: Value, Business Services .......................................................... 0.04% Blend, or Growth style and Small, Dividend Yield 0.46% NA Medium, or Large geometric 3-Year Earnings Growth Rate 53.43% 45.76% average market capitalization. To see a full disclosure of all risks that pertain to this fund, please refer to the prospectus. Performance*(%) As of 9/30/2007 Results of $10,000 Investment* Cumulative Returns Average Annual Total Returns Since 15,000.00 QTD YTD 1 Year 3 Year 5 Year 10 Year Inception Fund 10.65 34.31 51.29 37.42 36.40 18.31 --- 10,000.00 Index ▼ 7.35 27.07 38.66 27.11 27.65 8.80 --- 5,000.00 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense - ratio after the waiver is 1.44%. The Distributor has contractually agreed to this waiver through February 28, 2008. 06 07 Jennison Natural Resources R $14,051 Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Annual Performance* Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees Fund ▼ and expenses. Class R shares were introduced on August 21, 2006; results prior to that date are hypothetical, Index based on Class A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 2006 20.38% 15.12% 0.75% annually. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical 2005 52.98% 34.45% Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class A 2004 26.13% 22.62% shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent 2003 36.03% 31.49% shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a 2002 19.15% -14.33% result, dividends and investment results will differ for each share class. 2001 -11.04% -15.67% 2000 28.08% 15.81% The performance quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website at www.prudential.com Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021224
  • 20. Jennison Utility Fund R Third Quarter 2007 Fund Fact Sheet Objective/Description Key Facts The investment seeks capital appreciation and current income. The fund normally invests at least 80% of assets in INVESTMENT ADVISOR: Prudential Investments LLC equity-related and investment grade debt securities issued by utility companies. It may invest up to 50% of assets in FUND CATEGORY: Specialty-Utilities foreign securities including money market instruments and other investment grade fixed income securities, stocks and INDEX: Dow Jones Utilities Average other equity-related securities. It may invest more than 5% of assets in any one issuer. The fund is nondiversified. TR® There is no assurance that the objectives of the Fund will be met. NET ASSETS: $2.2 Million INCEPTION DATE: 1/22/1990 Sector funds are subject to risks within their specific sectors because they concentrate their investments in securities TICKER SYMBOL: JDURX of companies within certain industries. Therefore, the price of these securities can be volatile. SHARE CLASS: R GROSS EXPENSE RATIO: 1.28% PORTFOLIO MANAGERS: Shaun Hong, CFA Ubong Edemeka Top Five Holdings As of 7/31/2007 Portfolio Allocation As of 7/31/2007 Investor Risk Profile Questar Corporation .................................................... 3.32% US Stocks 70.91% NRG Energy, Inc. ......................................................... 3.21% Williams Companies, Inc. ........................................... 3.03% Non-US Stocks 26.03% NII Holdings, Inc. ......................................................... 2.93% Equitable Resources, Inc. ............................................ 2.89% Other 1.61% Top Five Holdings are unaudited and are ranked as a As of 9/30/2007 percentage of net assets. Morningstar Style BoxTM Cash 1.46% Top Five Sectors As of 7/31/2007 Portfolio Characteristics As of 7/31/2007 Domestic equity funds are placed in a category based on the style and Utilities ........................................................................ 36.73% Fund Index size of the stocks they typically own. The style and size parameters Energy .......................................................................... 25.17% Weighted Geometric Market Cap. $10.44 $11.66 are based on the divisions used in Telecommunications .................................................... 23.79% Price/Earnings Ratio (Forward) 20.23x 12.79x the investment style box: Value, Business Services .......................................................... 5.14% Price/Book Ratio 2.84x 1.63x Blend, or Growth style and Small, Medium, or Large geometric Hardware ....................................................................... 3.73% Dividend Yield 1.51% NA average market capitalization. 3-Year Earnings Growth Rate NA 13.76% To see a full disclosure of all risks that pertain to this fund, please refer to the prospectus. Results of $10,000 Investment* Performance*(%) As of 9/30/2007 Cumulative Returns Average Annual Total Returns 15,000.00 Since QTD YTD 1 Year 3 Year 5 Year 10 Year Inception 10,000.00 Fund 2.65 17.32 29.12 29.59 29.81 12.45 --- Index ▼ 1.45 12.35 20.76 23.35 22.86 11.77 --- 5,000.00 * Fees that Prudential Retirement and its affiliates receive in connection with investments in this fund include a - 12b-1 fee of (0.50%), after waiver, and an annual sub-accounting and/or servicing fee of (0.13%). The expense 06 07 ratio after the waiver is 1.03%. The Distributor has contractually agreed to this waiver through February 28, 2008. Jennison Utility R $12,693 Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. Annual Performance* Performance Disclosure: Investment results assume all distributions are reinvested and reflect applicable fees Fund Index ▼ and expenses. Class R shares were introduced on August 21, 2006; results prior to that date are hypothetical, 2006 26.39% 16.62% based on Class A share returns at net asset value adjusted for additional distribution and service (12b-1) fees of 2005 29.38% 25.13% 0.75% annually. Hypothetical Class R share returns would be greater with the waiver. In creating hypothetical 2004 30.19% 30.24% Class R share returns, no adjustments are made for any differences in other expenses of Class R and Class A 2003 30.20% 29.38% shares that may or may not impact hypothetical Class R share returns. Please see the fund's most recent 2002 -26.64% -23.39% shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a 2001 -19.72% -26.27% result, dividends and investment results will differ for each share class. 2000 38.91% 50.75% The performance quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than original cost. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. For performance information current to the most recent month end, please call 1-800-458-6333 or visit our website at www.prudential.com Prospectus Disclosure: Investors should carefully consider a fund's investment objectives, risks, charges and expenses before investing. For more complete information about the investment options available through your account, please call 1-800-458-6333 for a free prospectus that contains this and other information about our funds. Please read the prospectus carefully before investing. ▼ Benchmark Disclosure: Benchmark related performance including the index is unmanaged and it cannot be invested directly. Shares of each fund are offered by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. PIMS is a Prudential Financial company. Investment Advisory services provided by Global Portfolio Strategies, Inc., a registered investment advisor and Prudential Financial Company. Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. INST-20070807-A021226
  • 21. F UND FACT S HEET U SER ’ S G UIDE This guide will help you use the Fund Fact Sheet to your advantage. Please note: You may notice that some of the Fund Fact Sheets included are in a different format than the User’s Guide. Currently, these Fact Sheets are not described by this tool. A Category Morningstar assigns each investment option to one of 60 categories, based on the stocks and bonds that have found their way into the portfolio over the past three years. The XYZ Fund Third Quarter 2006 Fund Fact Sheet OBJECTIVE / DESCRIPTION Key Facts The XYZ Fund seeks capital appreciation. The Fund primarily invests in common stocks drawn from a universe B Expense Ratio The amount of money taken out of your A INVESTMENT ADVISER: ABC Company of the largest 1,500 companies (ranked by market capitalization) traded in the United States. Smaller-capitaliza- tion stocks will be ranked from a different universe. Smaller-capitalization stocks will be ranked from a different FUND CATEGORY: Fixed Income - Domestic account each year to pay for the operation and management of NET ASSETS: INCEPTION DATE: $186 Million Jul 2002 universe. Smaller-capitalization stocks will be ranked from a different universe. There is no assurance the objec- tive of the Fund will be met. an investment portfolio, expressed as a percentage. How much is B TICKER SYMBOL: EXPENSE RATIO: ABCDE 1.07% of Fund Assets Top Ten Holdings As of 3/31/2006 Portfolio Allocation As of 3/31/2006 too much to pay? The average stock fund charges 1.4%, while C OVERALL MORNINGSTAR RATING™: OVERALL # OF FUNDS IN 55 H U.S. Treasury Bills 44.40% Fin Fut Euribor 5.90% I International Equity 99.74% MORNINGSTAR CATEGORY: 650 the average bond fund charges 0.75%. The lower the expense D PORTFOLIO MANAGERS: Jane Doe FIN FUT US 10yr TBC Pooled Emp Tr Fund 37.20% 14.40% Fin Fut US 5 Yr Fin Fut Euro$ CME 5.40% 5.20% US Equity 0.01% John Doe U.S. Treasury Note 11.60% GNMA I TBA 5% 5.20% Cash 0.24% ratio the better. Overall Morningstar Rating as of quarter ending 12/31/05. The Morningstar FNMA TBA 4.00% 6.50% FNMA Pass Thru Mtg 2.60% Other Assets 0.01% Rating shown is for the share class of this Fund only; other classes may have different performance characteristics. © 2006 Morningstar, Inc. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content Overall Morningstar RatingTM Portfolio’s overall rating. providers; (2) may not be copied or distributed; and (3) is not warranted to be C accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Sector Allocation As of 3/31/2006 Portfolio Characteristics As of 3/31/2006 Investor Risk Profile JIndustrials . . . . . . . . . .17.54% Energy . . . . . . . . . . . . .9.35% Mandate Consumer Staples . . . . .16.19% Consumer Discretionary . .7.87% D Operations Find out the name of the person who deter- E Information Technology .15.10% Health Care . . . . . . . . .14.96% Materials . . . . . . . . . . .2.64% Utilities . . . . . . . . . . . . .2.24% Effective Duration Fund 4.43 Yrs Benchmarkw 4.77 Yrs mines which stocks or bonds belong in the investment portfolio Financials . . . . . . . . . .12.93% Telecomm Service . . . . . .1.18% Average Maturity Average Quality 6.67 Yrs AAA 7.47 Yrs AAA Investment Style As of 12/31/2005 (the “portfolio manager”). F Value Blend Growth The Fund is classified based on its long-term perfor- Top Ten Holdings and Sector Allocation are unaudited and ranked as a percentage of assets. Average Coupon 2.46% 5.32% mance relative to the benchmark index that most Large closely resembles its total return stream. This classi- fication process incorporates regression analysis to determine the index to which the Fund’s returns have a high “fit”(R2). Performance* (%) As of 3/31/2006 E Investor Risk Profile For mutual funds, the investor risk Mid x The vertical axis represents the Fund’s market capitalization relative to appropriate style bench- K CUMULATIVE RETURNS AVERAGE ANNUAL TOTAL RETURNS mark indexes. profile displays the fund’s Morningstar Risk, a downside risk Small x The horizontal axis represents the Fund’s invest- ment style expressed on a value-to-growth scale, relative to appropriate style benchmark indexes. Quarter YTD 1 Year 3 Year 5 Year 10 Year Since Inception measure that evaluates the portfolio relative to other portfolios Fund holdings may also be used to classify a fund’s style. Please refer to the user guide for more information. Fund Mandate Benchmarkw 3.54 3.60 2.61 2.77 12.02 12.25 16.51 16.72 -1.66 -1.49 9.29 9.49 11.79 N/A within its Morningstar Category. For separate accounts, the fund’s Result of $10,000 Investment* Morningstar RatingTM # of Funds in Category – – – – 5551 822 552 1227 5553 931 5554 321 – – investor risk profile is classified according to its overall volatility. $20,000 * Results are net of the highest management fee for this Fund (X.XX%) and other operating expenses (X.X% for 2005) Volatility measures the ranges of returns a portfolio has experi- $15,000 charged for this Fund, but are before any contract-related expenses. The Fund may have an arrangement to recapture a $10,000 portion of trade commissions that are used to offset operating expenses of the Fund. enced over time. Wide ranges of returns are labeled “high,” and $5,000 are considered riskier than “low” volatility investments, which $0 '98 '99 '00 '01 '02 '03 '04 '05 have had smaller ranges in returns. Please refer to the “For More Fund Mandate Benchmark Information” section of the User Guide for further information on Annual Performance* Morningstar risk and volatility analysis. G Fund Mandate Benchmarkw 2005 -0.94% -0.82% 2004 4.69% 4.10% 2003 10.49% 10.25% The performance quoted above represents past performance and current performance may be lower or higher than the performance data quoted. Past F Morningstar Style Box/Investment Style Box 2002 8.78% 8.44% performance does not guarantee future results. The investment return and principal value will fluctuate so that an investor's units, when redeemed may be 2001 11.38% 11.63% worth more or less than original cost. The performance results shown do not reflect the deduction of the sales charge that may apply if mutual fund shares While the category description tells you how the portfolio has were purchased outside of the plan, such sales charges would lower performance. w An investment cannot be made directly in an index. See Userguide for benchmark definitions. been run in the past, the Style Box is a snapshot of what the L The “investment manager” of the PRIAC separate account as defined under ERISA, is Prudential Retirement Insurance and Annuity Company. Prudential Retirement’s Manager of Managers group annuity contracts are issued by The Prudential Retirement Insurance and Annuity Company (PRIAC), portfolio currently owns. Data for equity separate accounts is Hartford, CT, a Prudential Financial company. x For current performance or additional information, go to: www.Prudential.com or call the toll-free number that appears on your statement. based on a quarter lag. INST-20050624-A01060 XYZ-DC/123456-106 G Annual Performance Calendar year returns for the Fund and corresponding benchmarks. H Top Ten Holdings The top holdings are the stocks or bonds with the most influence on a portfolio’s returns. I Portfolio Allocation We break down the investment portfolio’s holdings into general investment classes. The pie chart shows how much emphasis is placed on stocks, bonds or cash. We also show how much is held in foreign stocks. Bond investments replace the portfolio allocation chart with the following: Credit Analysis: We reveal the quality of the bonds in a bond-heavy portfolio, from least risky to most risky, with the per- centage assigned to each. J Sector Allocation Morningstar classifies each stock holding into 10 major industrial sectors, listed on the Fund Profile. K Performance History The investment’s total return is shown for the quarter, year-to-date and preceding year, as well as the average annual total return for the past three, five, and 10 years, or since inception. To provide you with a point of comparison, the return of the benchmark index- es are shown for the quarter, year-to-date, one, three, five and 10 year periods. We also present the category’s performance. L Manager of Managers Separate Accounts Prudential Retirement is a Prudential Financial business. Prudential Retirement’s Manager of Managers group annuity contracts are issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, a Prudential Financial company. Prudential Financial is a registered service mark of The Prudential Insurance Company of America, Newark, NJ and its affiliates. The Fund Fact Sheet User’s Guide
  • 22. For More Information Para hablar con un representante de servicios al cliente en español ©2006 Morningstar, Inc. All Rights Reserved. The info contained herein: 1) is propri- Discovery Select/Discovery Premier: Investors should carefully consider (u otros lenguajes), por favor, llama a nuestro numero gratuito 800 etary to Morningstar and/or its content providers; 2) may not be copied or distrib- a fund’s investment objectives, risks, charges and expenses before entre las 8:00 a.m. y las 8:00 p.m., Hora del Este, días de trabajo. uted; and 3) is not warranted to be accurate, complete or timely. Neither Morningstar investing. For more complete information about the investment options (To speak with a Prudential Service Representative through an interpreter in Spanish nor its content providers are responsible for any damages or losses arising from any available through your plan, please call 1-800-458-6333 for a free (or other languages), please call our toll-free number week-days between 8:00 a.m. use of this information. Past performance is no guarantee of future results. prospectus that contains this and other information about our funds. and 8:00 p.m. Eastern Time.) Volatility Analysis For variable insurance products, please consider carefully both the contract prospectus and underlying-fund prospectus before investing. Performance We classify investment portfolios as having one of three volatility levels relative to all Portfolio return reflects performance without adjusting for sales charges or the effects of types of mutual funds: Low, Below Average, Average, Above Average and High. Medley: Investors should carefully consider a fund’s investment taxation, but is adjusted to reflect all actual ongoing portfolio expenses and assumes rein- Investments with wider ranges of returns are labeled “high,” as they are considered riskier objectives, risks, charges and expenses before investing. For more vestment of dividends and capital gains. If adjusted, sales charges would reduce the per- than “low” volatility investments, which have had smaller ranges of returns. For portfolios complete information about the investment options available through formance quoted. In addition, due to market volatility, the portfolio’s return may vary that haven’t been in existence for three years we simply show the category average. your plan, please call 1-800-458-6333 for a free prospectus that greatly over short periods of time. Investment Risk contains this and other information about our funds. For variable Foreign Securities Portfolios/Emerging Market Portfolios: The investor should note that insurance products, please consider carefully both the contract The portfolio’s performance is compared with that of an index. The index is an unman- portfolios that invest in foreign securities involve special additional risks. These risks prospectus and underlying-fund prospectus before investing. aged portfolio of specified securities and does not reflect any initial or ongoing expenses nor can it be invested in directly. The sales charge utilized in the standard return calculation include, but are not limited to, currency risk, political risk, and risk associated with varying The Discovery Select and Discovery Premier Group Retirement Annuity and MEDLEY was obtained from the portfolio’s most recent prospectus and/or shareholder report avail- accounting standards. Investing in emerging markets may accentuate these risks. Program are group annuity insurance products issued by The Prudential insurance able to Morningstar. A portfolio may differ significantly from the securities in the index. Sector Portfolios: The investor should note that portfolios that invest exclusively in one Company of America, Newark, NJ and are distributed by Prudential Investment Management Services LLC (PIMS), Three Gateway Center, Newark, NJ 07102-4077. Morningstar RatingTM sector or industry involve additional risks. The lack of industry diversification subjects the For each fund with at least a three-year history, Morningstar calculates a Morningstar RatingTM investor to increased industry-specific risks. PIMS and The Prudential Insurance Company of America are Prudential Financial based on how a fund ranks on a Risk-Adjusted Return measure against other funds in the companies. Prudential Financial is a service mark of the Prudential Insurance Company Non-Diversified Portfolios: The investor should note that portfolios that invest more of their of America, Newark, NJ, and affiliates. same category. This measure takes into account variations in a fund’s performance after assets in a single issuer involve additional risks, including share price fluctuations, because adjusting for sales loads (except for -waived A shares) redemption fees, and the risk-free of the increased concentration of investments Any taxable amount received under the Contract may be subjected to a 10 percent tax rate, placing more emphasis on downward variations and rewarding consistent performance. penalty. Amounts are not subjected to this penalty if: the amount is paid on or after age The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the Small Cap Portfolios: The investor should note that portfolios that invest in stocks of small 59 1/2 or the death of the Participant; the amount received is attributed to the Participant next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 companies involve additional risks. Smaller companies typically have a higher risk of failure, becoming disabled; the amount paid or received is in the form of level payments not less star. The Morningstar Rating for a fund is derived from a weighted average of the ratings for and are not as well established as larger blue-chip companies. Historically, smaller-company frequently than annually for life (or a period not exceeding life expectancy); or the the three-, five- and ten-year (if applicable) time periods. Load-waived A share star ratings stocks have experienced a greater degree of market volatility than the overall market average amount received is paid under an immediate annuity contract (in which annuity payments do not include any front-end sales load and are intended for those investors who have access and may be less liquid than larger companies. begin within one year of purchase). to such purchase terms (e.g., plan participants of a defined contribution plan). Not all A You get tax deferral of your investment earnings through the qualified retirement plan If the lifetime payment stream is modified (other than as a result of death disability) share mutual funds for which calculates a load-waived A share star rating may actually waive in which you participate. Because you already enjoy this tax deferral, your decision to before age 59 1/2 (or before the end of the five year period beginning with the first their front-end sales load. Therefore, Morningstar strongly advises investors to contact their invest in this variable annuity should be based on the annuity’s investment and insurance payment and ending after age 59 1/2), the tax for the year of modification will be investment professional to determine whether they are eligible to purchase the A share with- features, such as the ability to annuitize and the death benefit. out the front load. Past performance is no guarantee of future results. The Morningstar increased by the penalty tax that would have been imposed without the exception, Rating may differ among share classes of a mutual fund as a result of different sales loads Variable Annuities plus interest for the deferral. and/or expense structure. Separate Account composite performance is not actual and reflec- Discovery SelectSM/Discovery PremierSM: Investment return and principal value of the Guarantees are based upon the claims-paying ability of the issuing company and not tive of any specific investment but is comprised of the account managers portfolios that are Portfolios will fluctuate resulting in a value which may at any time, including the time on the value of the securities within the account. managed in a substantially similar strategy as the separate account. of withdrawal of the cash value, be more or less than the total principal investment made. The performance information represents past performance and is no guarantee At times, certain funds’ performance may be extraordinarily high due to investing in Morningstar Style Box® of future results. The rates of return reflect the reinvestment of all dividends and sectors that achieved unprecedented returns. There can be no assurance that this The style box reveals a portfolio’s investment strategy. For equity portfolios and fixed- capital gains, and the deduction of investment management fees, expenses and performance can be repeated in the future. income portfolios respectively, the vertical axis shows the market capitalization of the product-related insurance charges. stocks owned or the average credit quality of the bonds owned. The horizontal axis shows investment style (value, blend, or growth) or interest rate sensitivity as meas- ured by a bond’s duration (short, medium or long). Duration is a measure of interest-rate sensitivity-the longer a portfolio’s duration, the more sensitive the portfolio is to shifts in interest rates. Benchmark Definitions 10-Year U.S. Treasury Note: The average daily treasury yield for U.S. 60% S&P 500 Index/40% Lehman Brothers Aggregate Bond iMoneyNet Taxable Money Funds Index: Reports on the average yields Treasuries with a maturity of ten years (negotiable debt obligations of the U.S. Index: A composite Index that consists of the S&P 500 Index (60%) and the of all major money market funds, on a 7- and 30-day basis. Government, considered intermediate in maturity). Lehman Brothers Aggregate Bond Index (40%). J.P. Morgan Emerging Markets Bond Index Plus: Tracks total 3 Month T-Bill Index: Three-month T-bills are government-backed short-term Balanced Composite Index: Consists of the Wilshire 5000 Total Market returns for external currency-denominated debt instruments of the emerging investments considered to be risk-free and as good as cash because the maturity Index (60%) and the Lehman Brothers Aggregate Bond Index (40%). markets: Brady bonds, loans, Eurobonds, and U.S. dollar-denominated local is only three months. Citigroup World Non-U.S. Government Bond Index: A market capi- market instruments. Countries covered are Argentina, Brazil, Bulgaria, 3-Year Treasury Average Yield: The average daily treasury yield for U.S. talization-weighted index, unhedged and stated in U.S. dollar terms. The Index Colombia, Ecuador, Mexico, Morocco, Nigeria, Panama, Peru, the Philippines, Treasuries with a maturity of three years (negotiable debt obligations of the tracks the performance of the 17 government bond markets of Australia, Poland, Qatar, Russia, South Korea, Turkey, and Venezuela. The index is U.S. Government, considered intermediate in maturity). Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, market capitalization weighted, based on publicly stated face amounts out- Japan, Netherlands, Portugal, Spain, Sweden, Switzerland, and the United standing. Total returns are calculated by weighting the bonds’ daily returns in 5-Year U.S. Treasury Note: The average daily treasury yield for U.S. proportion to their market capitalization. Treasuries with a maturity of five years (negotiable debt obligations of the U.S. Kingdom. The minimum maturity for included bonds is one year. Government, considered intermediate in maturity). Composite Index: Consists of the S&P 500 Index (65%) and the Lehman Lehman Brothers 5-10 Year Government/Credit Index: Brothers Credit A Index (35%). Represents a combination of the Government and Corporate Bond indices for 6-Month CD: This benchmark is applied the same way as the T-bill. Because bonds with maturities between five and 10 years. CDs are sponsored by banks, they are not as easily traded as T-bills and thus Credit Suisse High Yield Index: An unmanaged, trader priced index con- tend to offer higher yields. structed to mirror the characteristics of the high yield bond market. The index Lehman Brothers Aggregate Bond Index: Composed of securities from includes issues rated BB and below by S&P or Moody’s with par amounts the Lehman Brothers U.S. Government/Credit Index, Mortgage-Backed Securities 60% Russell 1000 Growth Index/40% Lehman Brothers Index, and the Asset-Backed Securities Index. Total return comprises price appreci- Aggregate Bond Index: A composite index that consists of the Russell greater than $75 million. Preferred issues, US dollar denominated foreign issues and 144A securities meeting the above condition are also included. ation/depreciation and income as a percentage of the original investment. 1000® Index (60%) and the Lehman Brothers Aggregate Bond Index (40%). Indexes are rebalanced monthly by market capitalization. 60% Russell 1000 Growth Index/40% Lehman Brothers Dow Jones U.S. Moderate Portfolio Index: Is designed for asset allo- cation strategists (portfolio builders) who are willing to take 60% of the risk of Lehman Brothers High Yield Bond Index: All bonds included in the Intermediate U.S. Government/Credit Index: A composite index that Lehman Brothers High Yield Bond Index must be dollar-denominated and non- consists of the Russell 1000 Growth Index (60%) and the Lehman Brothers the U.S. securities market. It is a total returns index that is a time-varying weighted average of stocks, bonds, and cash. convertible and have at least one year remaining to maturity and an out- Intermediate U.S. Government/Credit Index (40%). standing par value of at least $100 million. This index includes fixed rate, 60% Russell 1000 Index/40% Lehman Brothers Aggregate Dow Jones U.S. Moderately Conservative Index: Is designed for publicly issued, noninvestment-grade debt registered with the SEC (Securities Bond Index: A composite index that consists of the Russell 1000® Index asset allocation strategists (portfolio builders) who are willing to take 40% of the and Exchange Commission). Pay-in-kind (PIK) bonds, Eurobonds, 144A (60%) and the Lehman Brothers Aggregate Bond Index (40%). risk of the U.S. securities market. It is a total returns index that is a time-varying bonds, and debt from designated emerging market countries are excluded. weighted average of stocks, bonds, and cash. Yankees, global bonds (SEC registered) of issuers in G-7 countries, original 60% Russell 1000 Value Index/40% Lehman Brothers Aggregate Bond Index: A composite index that consists of the Russell Dow Jones U.S. Target Date Indexes: Reflects total portfolios of stocks, issue zeros and step-up coupons are included. Generally, securities must be 1000 Value Index and the Lehman Brothers Aggregate Bond Index. bonds and cash that automatically adjust over time to reduce potential risk as an rated Ba1 or lower (including defaulted issuers) by Moody’s Investors investor’s target maturity date approaches. Each index is a composite of sub- Service, BB+ or lower by Standard & Poor’s, or below investment grade by 60% Russell 1000 Value Index/40% Lehman Brothers indexes that represent the three major asset classes – stocks, bonds and cash. Fitch Investors Service. A small number of unrated bonds is included in the Intermediate U.S. Government/Credit Index: A composite index that Within each index, the weightings among stocks, bonds and cash are rebalanced index; to be eligible, they must have previously held a high yield rating or consists of the Russell 1000 Value Index (60%) and the Lehman Brothers monthly to reduce potential risk over time. Equity exposure in each target index have been associated with a high yield issuer and must trade accordingly. Intermediate U.S. Government/Credit Index (40%). changes from approximately 90% at index creation to approximately 20% as 60% Russell 1000 Value Index/40% Lehman Brothers maturity approaches. After maturity, each index becomes a "Today Index" with Government/Credit Index: A composite index that consists of the a steady allocation to equity of approximately 20%. Russell 1000 Value Index (60%) and the Lehman Brothers Government Credit Index (40%). The Fund Fact Sheet User’s Guide
  • 23. Lehman Brothers Intermediate U.S. Government/Credit Index: Lipper Mid-Cap Value Funds Index: Represents the average of the Russell 1000® Index: A market capitalization-weighted index that Composed of all bonds covered by the Lehman Brothers U.S. Government Bond 30 largest qualifying mutual funds (based on year-end total net assets) in the measures the performance of the 1,000 largest companies in the Russell and U.S. Credit Indexes with maturities between 1 and 9.99 years. This index Lipper Mid-Cap Universe. These funds, by portfolio practice, invest at least 75% 3000® Index, which represents approximately 92% of the total market includes all publicly issued, fixed rate, nonconvertible investment-grade corporate of their equity assets in companies with market capitalizations (on a three-year capitalization of the Russell 3000 Index. debt. Issues are rated at least Baa by Moody’s Investors Service or BBB by weighted basis) less than 300% of the dollar-weighted median market capital- Russell 1000® Value Index: A market capitalization-weighted index Standard & Poor’s, if unrated by Moody’s. Collateralized Mortgage Obligations ization of the middle 1,000 securities of the S&P SuperComposite 1500 Index. that measures the performance of those Russell 1000 companies with lower (CMOs) are not included. Total return comprises price appreciation/depreciation Lipper Real Estate Funds Index: An equally weighted index of the largest price-to-book ratios and lower forecasted growth rates. and income as a percentage of the original investment. Indexes are rebalanced thirty funds within the real estate funds investment objective as defined by monthly by market capitalization. Russell 2000® Growth Index: A market capitalization-weighted index Lipper Inc. These funds invest at least 65% of their portfolios in equity securities that measures the performance of those Russell 2000 companies with higher Lehman Brothers U.S. Credit Index: Includes all publicly issued, fixed of domestic and foreign companies engaged in the real estate industry. price-to-book ratios and higher forecasted growth rates. rate, nonconvertible investment-grade corporate debt. Issues are rated at least Lipper Science and Technology Funds Index: Represents the average Baa by Moody’s Investors Service or BBB by Standard & Poor’s, if unrated by Russell 2000® Index: A market capitalization-weighted index that of the 30 largest qualifying mutual funds in the Lipper Science and Technology measures the performance of the 2000 smallest companies in the Russell Moody’s. Total return comprises price appreciation/depreciation and income as a universe (based on year-end total net assets). These funds, by portfolio prac- percentage of the original investment. Indexes are rebalanced monthly by market 3000® Index, which represents approximately 8% of the total market tice, invest at least 65% of their equity assets in science technology stocks. capitalization of the Russell 3000 Index. capitalization. Lipper Small-Cap Core Funds Index: Represents the average of the Russell 2000® Value Index: A market capitalization-weighted index Lehman Brothers U.S. Government Bond Index: Composed of all pub- 30 largest qualifying mutual funds (based on year-end total net assets) in the licly issued, nonconvertible domestic debt of the U.S. Government. Flower bonds that measures the performance of those Russell 2000 companies with lower Lipper Small-Cap Universe. These funds, by portfolio practice, invest at least price-to-book ratios and lower forecasted growth rates. and pass-through issues are excluded. Total return comprises price appreciation/ 75% of their equity assets in companies with market capitalizations (on a depreciation and income as a percentage of the original investment. Indexes are three-year weighted basis) less than 250% of the dollar-weighted median of Russell 2500® Growth Index: Measures the performance of those rebalanced monthly by market capitalization. the smallest 500 of the middle 1,000 securities of the S&P Super-Composite Russell 2500 companies with higher price-to-book ratios and higher forecasted Lehman Brothers U.S. Government/Credit Index: Composed of all 1500 Index. growth values. bonds that are investment grade (rated Baa or higher by Moody’s or BBB or high- Lipper Small-Cap Growth Funds Index: Represents the average of Russell 2500® Value Index: A market capitalization-weighted index er by Standard & Poor’s, if unrated by Moody’s). Issues must have at least one the 30 largest qualifying mutual funds (based on year-end total net assets) in that measures the performance of those Russell 2500 companies with lower year to maturity. Total return comprises price appreciation/depreciation and the Lipper Small-Cap Universe. These funds, by portfolio practice, invest at price-to-book ratios and lower forecasted growth values. income as a percentage of the original investment. Indexes are rebalanced least 75% of their equity assets in companies with market capitalizations (on monthly by market capitalization. Russell 3000 Value Index: Measures the performance of those Russell a three-year weighted basis) less than 250% of the dollar-weighted median of 3000 Index companies with lower price-to-book ratios and lower forecasted Lipper Balanced Funds Index: Represents the average of the 30 largest the smallest 500 of the middle 1,000 securities of the S&P SuperComposite growth values. The stocks in this index are also members of either the Russell qualifying mutual funds (based on year-end total net assets) for the investment 1500 Index. 1000 Value or the Russell 2000 Value indexes. objective (to conserve principal by maintaining a balanced portfolio of stocks and Lipper Small-Cap Value Funds Index: Represents the average of the bonds). Typically, the stock/bond ratio ranges around 60%/40%. Russell 3000® Index: A market capitalization-weighted index that 30 largest qualifying mutual funds (based on year-end total net assets) in the measures the performance of the 3,000 largest U.S. companies based on Lipper Flexible Portfolio Funds Index: Represents the average of the 30 Lipper Small-Cap Universe. These funds, by portfolio practice, invest at least total market capitalization, which represents approximately 98% of the largest qualifying mutual funds in the Lipper Flexible Portfolio investment objec- 75% of their equity assets in companies with market capitalizations (on a investable U.S. equity market. tive category (based on year-end total net assets). The mutual funds that com- three-year weighted basis) less than 250% of the dollar-weighted median of prise the Average allocate their investments across various asset classes, including the smallest 500 of the middle 1,000 securities of the S&P SuperComposite Russell Midcap® Growth Index: A market capitalization-weighted domestic common stocks, bonds and money market instruments, with a focus on 1500 Index. index that measures the performance of those Russell Midcap companies total return. with higher price-to-book ratios and higher forecasted growth rates. The stocks Morgan Stanley REIT Index: A capitalization-weighted benchmark index are also members of the Russell 1000® Growth Index. Lipper Global Funds Index: Represents the average of the 30 largest qualify- of the most actively traded real estate investment trusts (REITs), designed to ing mutual funds (based on year-end total net assets) for the investment objective measure real estate equity performance. Russell Midcap® Index: A market capitalization-weighted index that (to invest at least 25% of its portfolio in securities traded outside of the United measures the performance of the 800 smallest companies in the Russell MSCI All Country World Free Ex. U.S. Index: Designed to measure 1000® Index, which represent approximately 30% of the total market States). These funds may own U.S. securities as well. equity performance in the global developed and emerging markets. capitalization of the Russell 1000 Index. Lipper High Yield Bond Funds Index: Represents the average of the MSCI EAFE Growth Index: A market capitalization-weighted index com- 30 largest qualifying mutual funds (based on year-end total net assets) for Russell Midcap® Value Index: A market capitalization-weighted index prised of that half of the MSCI EAFE Index with the highest price/book ratios. that measures the performance of those Russell Midcap companies with lower the investment objective (to seek a high [relative] current yield from fixed income securities without regard to quality or maturity restrictions). These MSCI EAFE Index (net): A market capitalization-weighted index com- price-to-book ratios and lower forecasted growth rates. The stocks are also funds tend to invest in lower-grade debt issues. prised of companies representative of the market structure of 21 developed members of the Russell 1000® Value Index. market countries in Europe, Australia and the Far East. The MSCI EAFE Index S&P 500® Index: (registered trademark of The McGraw-Hill Companies, Lipper International Funds Index: Represents the average of the 30 is available both in local currency and U.S. dollar terms. The returns shown in largest qualifying mutual funds (based on year-end total net assets) for the Inc.) An unmanaged index of 500 common stocks, weighted by market the performance chart are calculated with dividends reinvested and are net of capitalization, representing approximately 75% of NYSE (New York Stock investment objective (to invest assets in securities whose primary trading mar- foreign withholding tax. kets are outside the United States). Exchange) capitalization and 30% of NYSE issues. (Index performance MSCI EAFE Value Index: Includes those firms in the MSCI EAFE Index with includes the reinvestment of dividends and capital gains.) Lipper Large-Cap Core Funds Index: Represents the average of the lower price-to-book value ratios relative to their respective MSCI country index. 30 largest qualifying mutual funds (based on year-end total net assets) in the S&P MidCap 400 Index: Consists of 400 domestic stocks chosen for Lipper Large-Cap Universe. These funds, by portfolio practice, invest at least MSCI EMF Index (net): A market capitalization-weighted index comprised market size, liquidity, and industry group representation. It is a market-weighted 75% of their equity assets in companies with market capitalizations (on a of companies representative of the market structure of 26 emerging market index, with each stock affecting the Index in proportion to its market value. three-year weighted basis) greater than 300% of the dollar-weighted countries open to foreign investment. The MSCI EMF Index excludes closed S&P MidCap 400®/Citigroup Value Index: The S&P MidCap median market capitalization of the middle 1,000 securities of the S&P markets and those shares in otherwise open markets that are not available for 400/Citigroup Growth and Value series is an exhaustive, multi-factor style SuperComposite 1500 Index. purchase by foreigners. The returns shown in the performance chart are calcu- series covering the entire market capitalization of the S&P MidCap 400. The lated with dividends reinvested and are net of foreign withholding tax. The S&P MidCap 400/Citigroup Pure Growth and Value series is a multi-factor Lipper Large-Cap Growth Funds Index: Represents the average of index is available both in local currency and U.S. dollar terms. the 30 largest qualifying mutual funds (based on year-end total net assets) in style series that focuses on a narrower group of S&P MidCap 400 companies the Lipper Large-Cap Universe. These funds, by portfolio practice, invest at MSCI World Growth Index: A market capitalization-weighted index exhibiting strong growth or strong value characteristics. least 75% of their equity assets in companies with market capitalizations comprised of that half of the MSCI World Index with the highest price/book S&P500®/Citigroup Value Index: The S&P 500/Citigroup Growth and (on a three-year weighted basis) greater than 300% of the dollar-weighted ratios. Value series is an exhaustive, multi-factor style series covering the entire market median market capitalization of the middle 1,000 securities of the S&P MSCI World Index (net): A market capitalization-weighted index com- capitalization of the S&P 500. The S&P 500/Citigroup Pure Growth and Value SuperComposite 1500 Index. prised of companies representative of the market structure of 23 developed series is a multifactor style series that focuses on a narrower group of S&P 500 Lipper Large-Cap Value Funds Index: Represents the average of the market countries in North America (including the U.S.), Europe, and the companies exhibiting strong growth or strong value characteristics. 30 largest qualifying mutual funds (based on year-end total net assets) in the Asia/Pacific region. The MSCI World Index is available both in local currency S&P Technology Index: Standard & Poor’s offers sector indices on the Lipper Large-Cap Universe. These funds, by portfolio practice, invest at least and U.S. dollar terms. The returns shown in the performance chart are calcu- S&P 500 based upon the Global Industry Classification Standard (GICS®). 75% of their equity assets in companies with market capitalizations (on a lated with dividends reinvested and are net of foreign withholding tax. This standard is jointly Standard & Poor’s and MSCI. Each stock is classified three-year weighted basis) greater than 300% of the dollar-weighted median MSCI World Value Index: includes those firms in the MSCI World Index into one of 10 sectors, 24 industry groups, 64 industries and 139 sub-indus- market capitalization of the middle 1,000 securities of the S&P with lower price-to-book ratios relative to their respective MSCI country index. tries according to their largest source of revenue. Standard & Poor’s and MSCI SuperComposite 1500 Index. jointly determine all classifications. The 10 sectors are Consumer Discretionary, NAREIT Equity REIT Index: An unmanaged market capitalization index Consumer Staples, Energy, Financials, Health Care, Industrials, Information Lipper Mid-Cap Core Funds Index: Represents the average of the of all tax-qualified Equity REITS listed on the NYSE, AMEX, and the NASDAQ 30 largest qualifying mutual funds (based on year-end total net assets) in Technology, Materials, Telecommunication Services and Utilities. These indices that have 75% or more of their gross invested book of assets invested directly are calculated using the same guiding principles that apply to all Standard & the Lipper Mid-Cap Universe. These funds, by portfolio practice, invest at least or indirectly in the equity ownership of real estate. 75% of their equity assets in companies with market capitalizations (on a Poor’s indices. three-year weighted basis) less than 300% of the dollar-weighted median NCREIF Open-End Diversified Core Equity Fund Index: (NFI- Vanguard Balanced Composite Index: Made up of two unmanaged market capitalization of the middle 1,000 securities of the S&P ODCE) Value-Weighted Total Return Net of Fees, S&P Citigroup BMI World benchmarks, weighted 60% Dow Jones Wilshire 5000 Index and 40% SuperComposite 1500 Index. Property Industry Index, Citigroup US Domestic 3 month Treasury Bill Total Lehman Aggregate Bond Index through May 31, 2005; 60% MSCI U.S. Return (Cash). The benchmark will be re-weighted on a monthly basis to cor- Broad Market Index and 40% Lehman Aggregate Bond Index thereafter. Lipper Mid-Cap Growth Funds Index: Represents the average of the respond with the Fund's investment allocations. National Association of Real 30 largest qualifying mutual funds (based on year-end total net assets) in Estate Investment Fiduciaries Vanguard Wellington Composite Index: is a combination of unman- the Lipper Mid-Cap Universe. These funds, by portfolio practice, invest at least aged industry benchmarks: 65% S&P 500 Index and 35% Lehman Credit A 75% of their equity assets in companies with market capitalizations (on a Russell 1000® Growth Index: A market capitalization-weighted index or Better Index. Prior to March 1, 2000, weighted 65% S&P 500 Index and three-year weighted basis) less than 300% of the dollar-weighted median that measures the performance of those Russell 1000 companies with higher 35% Lehman Long Credit AA or Better Index. market capitalization of the middle 1,000 securities of the S&P price-to-book ratios and higher forecasted growth rates. SuperComposite 1500 Index. The Fund Fact Sheet User’s Guide revised 1/2/07

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