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Prudential Jennison Blend Fund, Inc. – ‘N-CSRS’ for 2/28/15

On:  Friday, 4/24/15, at 5:24pm ET   ·   Effective:  4/24/15   ·   For:  2/28/15   ·   Accession #:  1193125-15-146916   ·   File #:  811-03336

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  As Of                Filer                Filing    For·On·As Docs:Size              Issuer               Agent

 4/24/15  Prudential Jennison Blend Fd, Inc N-CSRS      2/28/15    3:1.2M                                   RR Donnelley/FAPGIM Jennison Blend Fund Class A (PBQAX) — Class B (PBQFX) — Class C (PRECX) — Class Z (PEQZX)

Certified Semi-Annual Shareholder Report of a Management Investment Company   —   Form N-CSR
Filing Table of Contents

Document/Exhibit                   Description                      Pages   Size 

 1: N-CSRS      Prudential Jennison Blend Fund, Inc.                HTML    758K 
 3: EX-99.906CERT  Certifications Pursuant to Section 906           HTML      7K 
 2: EX-99.CERT  Certifications Pursuant to Section 302              HTML     18K 


N-CSRS   —   Prudential Jennison Blend Fund, Inc.


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  Prudential Jennison Blend Fund, Inc.  

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM N-CSR

 

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number: 811-03336
Exact name of registrant as specified in charter: Prudential Jennison Blend Fund, Inc.
Address of principal executive offices: Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Name and address of agent for service: Deborah A. Docs
Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Registrant’s telephone number, including area code: 800-225-1852
Date of fiscal year end: 8/31/2015
Date of reporting period: 2/28/2015

 

 

 


Item 1 – Reports to Stockholders


LOGO

 

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

 

PRUDENTIAL JENNISON BLEND FUND, INC.

 

SEMIANNUAL REPORT · FEBRUARY 28, 2015

 

Objective

Long-term growth of capital

 

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

 

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

 

The accompanying financial statements as of February 28, 2015, were not audited and, accordingly, no auditor’s opinion is expressed on them.

 

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

 

LOGO

 

LOGO

  LOGO


 

April 15, 2015

 

Dear Shareholder:

 

We hope you find the semiannual report for the Prudential Jennison Blend Fund, Inc. informative and useful. The report covers performance for the six-month period that ended February 28, 2015.

 

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

 

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

 

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

 

Thank you for choosing the Prudential Investments family of funds.

 

Sincerely,

 

LOGO

 

Stuart S. Parker, President

Prudential Jennison Blend Fund, Inc.

 

Prudential Jennison Blend Fund, Inc.     1   


Your Fund’s Performance (Unaudited)

 

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

 

Cumulative Total Returns (Without Sales Charges) as of 2/28/15

  

     Six Months     One Year     Five Years     Ten Years  

Class A

     2.91     7.35     84.40     122.99

Class B

     2.54        6.61        78.18        107.61   

Class C

     2.58        6.61        78.14        107.70   

Class Z

     3.08        7.66        87.25        129.54   

Russell 3000® Index

     5.98        14.12        113.33        122.02   

S&P 500 Index

     6.12        15.48        111.59        115.56   

Lipper Multi-Cap Growth Funds Average

     6.84        10.67        110.06        133.76   
        

Average Annual Total Returns (With Sales Charges) as of 3/31/15

  

           One Year     Five Years     Ten Years  

Class A

             3.06     10.30     7.91

Class B

             3.52        10.65        7.75   

Class C

             7.35        10.78        7.75   

Class Z

             9.43        11.90        8.84   

Russell 3000 Index

             12.37        14.71        8.38   

S&P 500 Index

             12.71        14.45        8.00   

Lipper Multi-Cap Growth Funds Average

             12.93        14.38        8.89   

 

Source: Prudential Investments LLC and Lipper Inc.

 

2   Visit our website at www.prudentialfunds.com


 

 

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

 

  Class A   Class B*   Class C   Class Z

Maximum initial sales charge

  5.50% of
the public
offering price
  None   None   None

Contingent deferred sales charge (CDSC) (as a percentage of the lower of original purchase price or net asset value at redemption)

  1% on sales
of $1 million
or more
made within
12 months
of purchase
  5% (Yr. 1)
4% (Yr. 2)
3% (Yr. 3)
2% (Yr. 4)
1% (Yr. 5/6)
0% (Yr.  7)
  1% on sales
made within
12 months
of purchase
  None

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

  .30%   1%   1%   None

 

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

 

Benchmark Definitions

 

Russell 3000 Index

The Russell 3000 Index is an unmanaged index which measures the performance of the 3,000 largest US companies representing approximately 98% of the investable US equity market.

 

S&P 500 Index

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

 

Lipper Multi-Cap Growth Funds Average

The Lipper Multi-Cap Growth Funds Average (Lipper Average) is based on the average return of all funds in the Lipper Multi-Cap Growth Funds category. Funds in the Lipper Average invest in a variety of market-capitalization ranges without concentrating 75% of their equity assets in any one market-capitalization range over an extended period of time.

 

Investors cannot invest directly in an index or average. The returns for the Indexes would be lower if they included the effects of sales charges, operating expenses of a mutual fund, or taxes. Returns for the Lipper Average reflect the deduction of operating expenses, but not sales charges or taxes.

 

Prudential Jennison Blend Fund, Inc.     3   


Your Fund’s Performance (continued)

 

 

Five Largest Holdings expressed as a percentage of net assets as of 2/28/15

  

Apple, Inc., Technology Hardware, Storage & Peripherals

     2.6

Actavis, PLC, Pharmaceuticals

     2.2   

Facebook, Inc. (Class A Stock), Internet Software & Services

     1.8   

Celgene Corp., Biotechnology

     1.7   

Applied Materials, Inc., Semiconductors & Semiconductor Equipment

     1.6   

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

 

Five Largest Industries expressed as a percentage of net assets as of 2/28/15

  

Pharmaceuticals

     7.4

Banks

     7.4   

Internet Software & Services

     5.5   

Biotechnology

     5.5   

Software

     5.3   

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

 

4   Visit our website at www.prudentialfunds.com


Fees and Expenses (Unaudited)

 

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

 

The example is based on an investment of $1,000 invested on September 1, 2014, at the beginning of the period, and held through the six-month period ended February 28, 2015. The example is for illustrative purposes only; you should consult the Prospectus for information on initial and subsequent minimum investment requirements.

 

Actual Expenses

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

 

Hypothetical Example for Comparison Purposes

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

 

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

 

Prudential Jennison Blend Fund, Inc.     5   


Fees and Expenses (continued)

 

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

 

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

 

Prudential
Jennison Blend
Fund, Inc.
  Beginning Account
Value
September 1, 2014
    Ending Account
Value
February 28, 2015
    Annualized
Expense Ratio
Based on the
Six-Month Period
    Expenses Paid
During  the
Six-Month Period*
 
         
Class A   Actual   $ 1,000.00      $ 1,029.10        0.97   $ 4.88   
    Hypothetical   $ 1,000.00      $ 1,019.98        0.97   $ 4.86   
         
Class B   Actual   $ 1,000.00      $ 1,025.40        1.67   $ 8.39   
    Hypothetical   $ 1,000.00      $ 1,016.51        1.67   $ 8.35   
         
Class C   Actual   $ 1,000.00      $ 1,025.80        1.67   $ 8.39   
    Hypothetical   $ 1,000.00      $ 1,016.51        1.67   $ 8.35   
         
Class Z   Actual   $ 1,000.00      $ 1,030.80        0.67   $ 3.37   
    Hypothetical   $ 1,000.00      $ 1,021.47        0.67   $ 3.36   

*Fund expenses (net of fee waivers or subsidies, if any) for each share class are equal to the annualized expense ratio for each share class (provided in the table), multiplied by the average account value over the period, multiplied by the 181 days in the six-month period ended February 28, 2015, and divided by the 365 days in the Fund’s fiscal year ending August 31, 2015 (to reflect the six-month period). Expenses presented in the table include the expenses of any underlying portfolios in which the Fund may invest.

 

6   Visit our website at www.prudentialfunds.com


 

 

The Fund’s annualized expense ratios for the six-month period ended February 28, 2015, are as follows:

 

Class    Gross Operating Expenses     Net Operating Expenses  

A

     0.97     0.97

B

     1.67        1.67   

C

     1.67        1.67   

Z

     0.67        0.67   

 

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

 

Prudential Jennison Blend Fund, Inc.     7   


Portfolio of Investments

 

as of February 28, 2015 (Unaudited)

 

Description    Shares      Value (Note 1)  

LONG-TERM INVESTMENTS    99.1%

     

COMMON STOCKS

     

Aerospace & Defense    1.9%

                 

Boeing Co. (The)

     97,529       $ 14,712,250   

Curtiss-Wright Corp.

     43,466         3,154,762   

Exelis, Inc.

     16,756         405,495   

Moog, Inc. (Class A Stock)*

     21,296         1,606,996   

Teledyne Technologies, Inc.*

     11,593         1,168,922   
     

 

 

 
        21,048,425   

Airlines    1.6%

                 

Spirit Airlines, Inc.*

     102,258         7,953,627   

United Continental Holdings, Inc.*

     149,335         9,733,656   
     

 

 

 
        17,687,283   

Auto Components    1.1%

                 

Dorman Products, Inc.*(a)

     12,511         551,860   

Lear Corp.

     96,475         10,508,057   

Tenneco, Inc.*

     15,572         906,913   
     

 

 

 
        11,966,830   

Automobiles    1.1%

                 

General Motors Co.

     173,023         6,455,488   

Tesla Motors, Inc.*(a)

     28,037         5,701,044   
     

 

 

 
        12,156,532   

Banks    7.4%

                 

Bank of America Corp.

     457,606         7,234,751   

BankUnited, Inc.

     140,945         4,568,028   

BOK Financial Corp.(a)

     39,958         2,357,522   

Citigroup, Inc.

     186,922         9,798,451   

East West Bancorp, Inc.

     214,334         8,562,643   

First Republic Bank

     106,357         6,062,349   

Fulton Financial Corp.

     160,761         1,945,208   

Home BancShares, Inc.

     21,028         665,536   

JPMorgan Chase & Co.

     167,986         10,294,182   

PNC Financial Services Group, Inc. (The)

     85,543         7,866,534   

Prosperity Bancshares, Inc.

     57,607         2,980,010   

Renasant Corp.

     13,161         374,825   

Signature Bank*

     19,087         2,354,382   

Valley National Bancorp(a)

     206,654         1,983,879   

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     9   


 

Portfolio of Investments

 

as of February 28, 2015 (Unaudited) continued

 

Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Banks (cont’d.)

                 

Webster Financial Corp.

     65,509       $ 2,262,026   

Wells Fargo & Co.

     211,347         11,579,702   

Wintrust Financial Corp.

     58,045         2,733,339   
     

 

 

 
        83,623,367   

Biotechnology    5.5%

                 

ACADIA Pharmaceuticals, Inc.*(a)

     104,091         3,952,335   

Alexion Pharmaceuticals, Inc.*

     37,753         6,809,509   

Anacor Pharmaceuticals, Inc.*

     10,486         456,141   

Biogen Idec, Inc.*

     34,928         14,306,160   

Celgene Corp.*

     157,816         19,179,378   

Gilead Sciences, Inc.*

     72,256         7,480,664   

KYTHERA Biopharmaceuticals, Inc.*(a)

     97,148         4,036,499   

Otonomy, Inc.*

     9,626         356,932   

OvaScience, Inc.*(a)

     17,594         800,703   

Receptos, Inc.*

     35,276         4,467,353   
     

 

 

 
        61,845,674   

Building Products    0.1%

                 

Owens Corning

     14,321         567,971   

Capital Markets    2.2%

                 

Artisan Partners Asset Management, Inc. (Class A Stock)

     34,634         1,679,749   

Goldman Sachs Group, Inc. (The)

     39,256         7,450,396   

HFF, Inc. (Class A Stock)

     16,779         596,997   

Lazard Ltd. (Class A Stock)

     14,629         744,324   

Moelis & Co. (Class A Stock)

     24,597         791,531   

Morgan Stanley

     332,058         11,884,356   

Piper Jaffray Cos.*

     32,629         1,786,438   
     

 

 

 
        24,933,791   

Chemicals    1.0%

                 

Albemarle Corp.

     15,496         876,609   

Cytec Industries, Inc.

     6,184         324,846   

FMC Corp.

     109,820         6,963,686   

Monsanto Co.

     24,252         2,920,668   
     

 

 

 
        11,085,809   

 

See Notes to Financial Statements.

 

10  


Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Commercial Services & Supplies    0.7%

                 

Mobile Mini, Inc.

     99,507       $ 4,128,546   

West Corp.

     110,735         3,781,600   
     

 

 

 
        7,910,146   

Communications Equipment    0.7%

                 

Brocade Communications Systems, Inc.

     591,620         7,330,172   

Infinera Corp.*

     31,460         536,393   

NETGEAR, Inc.*

     12,014         387,331   
     

 

 

 
        8,253,896   

Construction & Engineering    0.1%

                 

Great Lakes Dredge & Dock Corp.*

     276,060         1,683,966   

Consumer Finance    1.2%

                 

Capital One Financial Corp.

     87,044         6,851,233   

SLM Corp.

     716,011         6,780,624   
     

 

 

 
        13,631,857   

Containers & Packaging    0.2%

                 

Crown Holdings, Inc.*

     19,062         1,010,286   

Packaging Corp. of America

     11,795         977,334   
     

 

 

 
        1,987,620   

Diversified Consumer Services    0.2%

                 

Apollo Education Group, Inc. (Class A Stock)*

     36,322         1,004,303   

Houghton Mifflin Harcourt Co.*

     66,601         1,317,368   
     

 

 

 
        2,321,671   

Diversified Financial Services    0.5%

                 

Voya Financial, Inc.

     118,747         5,247,430   

Diversified Telecommunication Services    0.4%

                 

Cogent Communications Group, Inc.

     31,850         1,169,532   

Frontier Communications Corp.

     380,649         3,037,579   

Lumos Networks Corp.

     28,005         482,246   
     

 

 

 
        4,689,357   

Electric Utilities    1.4%

                 

FirstEnergy Corp.

     231,688         8,104,446   

NRG Yield, Inc. (Class A Stock)

     69,672         3,574,871   

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     11   


 

Portfolio of Investments

 

as of February 28, 2015 (Unaudited) continued

 

Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Electric Utilities (cont’d.)

                 

Portland General Electric Co.

     63,728       $ 2,376,417   

Westar Energy, Inc.

     54,566         2,119,889   
     

 

 

 
        16,175,623   

Electrical Equipment    0.9%

                 

Eaton Corp. PLC

     124,110         8,813,051   

Polypore International, Inc.*

     13,113         777,470   

Thermon Group Holdings, Inc.*

     13,744         337,003   
     

 

 

 
        9,927,524   

Electronic Equipment, Instruments & Components    0.8%

                 

Anixter International, Inc.*

     55,348         4,366,404   

FEI Co.

     5,317         419,990   

Flextronics International Ltd.*

     341,420         4,158,496   

Plexus Corp.*

     15,750         633,937   
     

 

 

 
        9,578,827   

Energy Equipment & Services    1.2%

                 

Dril-Quip, Inc.*

     30,306         2,202,034   

Halliburton Co.

     138,092         5,929,670   

Schlumberger Ltd.

     64,372         5,417,548   

Superior Energy Services, Inc.

     26,036         582,686   
     

 

 

 
        14,131,938   

Food & Staples Retailing    1.5%

                 

Costco Wholesale Corp.

     62,764         9,223,797   

Fresh Market, Inc. (The)*(a)

     17,478         665,213   

Kroger Co. (The)

     62,508         4,447,444   

Sprouts Farmers Market, Inc.*(a)

     76,097         2,801,131   
     

 

 

 
        17,137,585   

Food Products    3.0%

                 

Adecoagro SA (Luxembourg)*

     238,999         2,115,141   

Boulder Brands, Inc.*

     37,886         390,605   

Bunge Ltd.

     81,150         6,636,447   

Hain Celestial Group, Inc. (The)*

     102,053         6,381,374   

Mondelez International, Inc. (Class A Stock)

     422,241         15,595,471   

TreeHouse Foods, Inc.*(a)

     28,721         2,399,927   

Whitewave Foods Co. (The) (Class A Stock)*

     21,350         874,282   
     

 

 

 
        34,393,247   

 

See Notes to Financial Statements.

 

12  


Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Health Care Equipment & Supplies    0.4%

                 

Cardiovascular Systems, Inc.*

     28,538       $ 1,076,168   

DexCom, Inc.*

     19,685         1,195,667   

GenMark Diagnostics, Inc.*(a)

     42,868         544,852   

Insulet Corp.*(a)

     19,127         606,900   

NxStage Medical, Inc.*

     15,711         269,915   

Tandem Diabetes Care, Inc.*(a)

     33,506         392,020   
     

 

 

 
        4,085,522   

Health Care Providers & Services    2.1%

                 

Air Methods Corp.*(a)

     95,573         5,064,413   

Amsurg Corp.*

     37,513         2,254,531   

Bio-Reference Laboratories, Inc.*

     15,114         528,083   

Centene Corp.*

     89,842         5,521,689   

Health Net, Inc.*

     17,485         1,002,765   

HealthSouth Corp.

     15,363         667,676   

Healthways, Inc.*(a)

     85,163         1,905,948   

Molina Healthcare, Inc.*(a)

     56,802         3,617,720   

Team Health Holdings, Inc.*

     34,567         2,048,786   

Universal Health Services, Inc. (Class B Stock)

     12,380         1,403,273   
     

 

 

 
        24,014,884   

Hotels, Restaurants & Leisure    3.5%

                 

BJ’s Restaurants, Inc.*

     6,346         331,388   

Brinker International, Inc.

     6,051         359,792   

Carnival Corp.

     203,792         8,964,810   

Cheesecake Factory, Inc. (The)

     46,644         2,216,523   

Del Frisco’s Restaurant Group, Inc.*

     83,045         1,668,374   

Domino’s Pizza, Inc.

     9,133         927,274   

Extended Stay America, Inc.(a)

     23,418         451,967   

Jack in the Box, Inc.

     5,699         551,036   

Marriott International, Inc. (Class A Stock)

     100,200         8,326,620   

Pinnacle Entertainment, Inc.*

     89,665         2,307,977   

Starbucks Corp.

     99,519         9,303,534   

Vail Resorts, Inc.

     52,692         4,626,885   
     

 

 

 
        40,036,180   

Household Durables    0.3%

                 

D.R. Horton, Inc.

     28,431         776,451   

Lennar Corp. (Class A Stock)(a)

     33,829         1,698,554   

Meritage Homes Corp.*

     8,750         389,462   

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     13   


 

Portfolio of Investments

 

as of February 28, 2015 (Unaudited) continued

 

Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Household Durables (cont’d.)

                 

Tempur Sealy International, Inc.*

     8,184       $ 470,662   
     

 

 

 
        3,335,129   

Independent Power & Renewable Electricity Producers    0.4%

                 

NRG Energy, Inc.

     200,045         4,797,079   

Industrial Conglomerates    0.5%

                 

Siemens AG (Germany), ADR

     50,189         5,602,096   

Insurance    3.3%

                 

MetLife, Inc.

     165,107         8,392,389   

RLI Corp.

     19,993         967,461   

Stancorp Financial Group, Inc.

     29,307         1,938,951   

Symetra Financial Corp.

     296,756         6,700,751   

Travelers Cos., Inc. (The)

     41,917         4,503,563   

W.R. Berkley Corp.

     141,318         7,053,181   

White Mountains Insurance Group Ltd.

     11,167         7,450,064   
     

 

 

 
        37,006,360   

Internet & Catalog Retail    2.1%

                 

Amazon.com, Inc.*

     33,928         12,898,068   

Priceline Group, Inc. (The)*

     7,312         9,048,454   

Wayfair, Inc. (Class A Stock)*(a)

     57,040         1,331,884   
     

 

 

 
        23,278,406   

Internet Software & Services    5.5%

                 

Alibaba Group Holding Ltd. (China), ADR*(a)

     116,176         9,888,901   

Bankrate, Inc.*(a)

     22,522         287,381   

Cornerstone OnDemand, Inc.*(a)

     56,351         1,801,260   

Facebook, Inc. (Class A Stock)*

     263,599         20,816,413   

Google, Inc. (Class A Stock)*

     10,962         6,167,550   

Google, Inc. (Class C Stock)*

     12,743         7,115,691   

LendingClub Corp.*(a)

     8,112         165,241   

LinkedIn Corp. (Class A Stock)*

     35,203         9,406,242   

Twitter, Inc.*

     143,450         6,897,076   
     

 

 

 
        62,545,755   

IT Services    3.1%

                 

DST Systems, Inc.

     20,834         2,214,446   

Euronet Worldwide, Inc.*

     7,373         416,575   

 

See Notes to Financial Statements.

 

14  


Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

IT Services (cont’d.)

                 

FleetCor Technologies, Inc.*

     49,317       $ 7,566,707   

Gartner, Inc.*

     3,558         295,705   

Global Payments, Inc.

     75,891         6,971,347   

MasterCard, Inc. (Class A Stock)

     162,501         14,646,215   

Vantiv, Inc. (Class A Stock)*

     87,161         3,224,086   
     

 

 

 
        35,335,081   

Leisure Products    0.1%

                 

Brunswick Corp.

     25,891         1,404,328   

Life Sciences Tools & Services    1.1%

                 

Fluidigm Corp.*(a)

     109,719         4,849,580   

Illumina, Inc.*

     38,285         7,483,186   
     

 

 

 
        12,332,766   

Machinery    2.3%

                 

CIRCOR International, Inc.

     30,797         1,652,875   

Crane Co.

     40,490         2,705,947   

Joy Global, Inc.

     6,702         297,033   

NN, Inc.

     50,728         1,405,673   

Nordson Corp.

     16,186         1,245,189   

Oshkosh Corp.

     24,171         1,179,303   

RBC Bearings, Inc.

     23,992         1,488,704   

Rexnord Corp.*

     89,884         2,478,102   

SPX Corp.

     110,444         9,843,874   

Terex Corp.

     20,955         574,376   

WABCO Holdings, Inc.*

     18,557         2,168,014   

Woodward, Inc.

     10,368         503,366   
     

 

 

 
        25,542,456   

Media    2.5%

                 

Cinemark Holdings, Inc.

     110,476         4,498,583   

Comcast Corp. (Class A Stock)

     164,816         9,786,774   

Walt Disney Co. (The)

     136,526         14,209,626   
     

 

 

 
        28,494,983   

Metals & Mining    0.4%

                 

Compass Minerals International, Inc.

     16,619         1,506,845   

Constellium NV (Netherlands) (Class A Stock)*

     46,539         880,052   

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     15   


 

Portfolio of Investments

 

as of February 28, 2015 (Unaudited) continued

 

Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Metals & Mining (cont’d.)

                 

Reliance Steel & Aluminum Co.

     30,927       $ 1,763,148   
     

 

 

 
        4,150,045   

Multi-Utilities    0.1%

                 

Alliant Energy Corp.

     15,705         998,838   

Multiline Retail    0.8%

                 

Target Corp.

     117,682         9,041,508   

Tuesday Morning Corp.*(a)

     20,541         389,868   
     

 

 

 
        9,431,376   

Oil, Gas & Consumable Fuels    4.7%

                 

Cheniere Energy Partners LP

     25,784         603,603   

Chevron Corp.

     66,473         7,091,340   

Concho Resources, Inc.*

     50,011         5,447,198   

Marathon Oil Corp.

     227,593         6,340,741   

Noble Energy, Inc.

     127,314         6,013,040   

Occidental Petroleum Corp.

     78,690         6,128,377   

PDC Energy, Inc.*

     43,029         2,223,739   

Rosetta Resources, Inc.*(a)

     130,261         2,309,528   

SemGroup Corp. (Class A Stock)

     67,689         5,233,037   

Suncor Energy, Inc. (Canada)

     240,998         7,235,145   

Targa Resources Corp.

     37,055         3,689,937   

Whiting Petroleum Corp.*

     37,023         1,252,488   
     

 

 

 
        53,568,173   

Pharmaceuticals    7.4%

                 

Actavis, PLC*

     85,648         24,954,401   

Aerie Pharmaceuticals, Inc.*(a)

     49,126         1,381,423   

Aratana Therapeutics, Inc.*(a)

     114,621         2,207,600   

Bayer AG (Germany), ADR

     60,231         8,897,745   

Bristol-Myers Squibb Co.

     156,687         9,545,372   

Merck & Co., Inc.

     142,707         8,354,068   

Pacira Pharmaceuticals, Inc.*(a)

     65,393         7,505,155   

Pfizer, Inc.

     134,037         4,600,150   

Salix Pharmaceuticals Ltd.*

     2,087         328,076   

Shire PLC (Ireland), ADR

     25,638         6,202,089   

Teva Pharmaceutical Industries Ltd. (Israel), ADR

     180,936         10,316,971   
     

 

 

 
        84,293,050   

 

See Notes to Financial Statements.

 

16  


Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Professional Services    0.6%

                 

Corporate Executive Board Co. (The)

     11,337       $ 886,667   

Dun & Bradstreet Corp. (The)

     5,268         697,905   

Huron Consulting Group, Inc.*

     16,836         1,122,119   

Korn/Ferry International*

     92,969         2,844,851   

TrueBlue, Inc.*

     42,789         984,575   
     

 

 

 
        6,536,117   

Real Estate Investment Trusts (REITs)    2.5%

                 

Capstead Mortgage Corp.(a)

     319,882         3,828,988   

Chimera Investment Corp.

     522,745         1,678,011   

Colony Financial, Inc.

     84,302         2,125,253   

Extra Space Storage, Inc.

     19,502         1,282,842   

First Potomac Realty Trust

     26,869         321,085   

Hersha Hospitality Trust

     580,888         3,897,758   

Iron Mountain, Inc.

     31,438         1,155,347   

Kilroy Realty Corp.

     11,063         818,330   

LaSalle Hotel Properties

     30,188         1,174,917   

MFA Financial, Inc.

     568,965         4,528,961   

Pebblebrook Hotel Trust

     51,195         2,487,053   

Starwood Property Trust, Inc.

     49,310         1,203,164   

Summit Hotel Properties, Inc.

     287,941         3,780,665   
     

 

 

 
        28,282,374   

Real Estate Management & Development    0.3%

                 

Forest City Enterprises, Inc. (Class A Stock)*

     131,515         3,320,754   

Road & Rail    1.2%

                 

Canadian Pacific Railway Ltd. (Canada)

     32,073         6,017,536   

Heartland Express, Inc.

     120,683         3,037,591   

Hertz Global Holdings, Inc.*

     216,736         5,000,100   
     

 

 

 
        14,055,227   

Semiconductors & Semiconductor Equipment    2.8%

                 

Applied Materials, Inc.

     730,579         18,301,004   

Cavium, Inc.*(a)

     126,575         8,669,122   

Inphi Corp.*

     33,691         628,000   

ON Semiconductor Corp.*

     32,182         410,321   

Power Integrations, Inc.

     49,756         2,729,614   

Semtech Corp.*

     40,610         1,174,847   

Skyworks Solutions, Inc.

     4,305         377,764   
     

 

 

 
        32,290,672   

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     17   


 

Portfolio of Investments

 

as of February 28, 2015 (Unaudited) continued

 

Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Software    5.3%

                 

Adobe Systems, Inc.*

     97,454       $ 7,708,612   

Cadence Design Systems, Inc.*(a)

     23,842         437,620   

Fortinet, Inc.*

     100,434         3,375,587   

Imperva, Inc.*

     8,920         411,212   

Jive Software, Inc.*

     160,589         812,580   

Microsoft Corp.

     212,416         9,314,442   

QLIK Technologies, Inc.*(a)

     126,244         4,095,355   

Red Hat, Inc.*

     90,661         6,266,488   

salesforce.com, inc.*

     155,285         10,773,673   

SolarWinds, Inc.*

     122,081         6,193,169   

Splunk, Inc.*

     86,984         5,849,674   

Workday, Inc. (Class A Stock)*(a)

     53,116         4,541,418   
     

 

 

 
        59,779,830   

Specialty Retail    3.0%

                 

Asbury Automotive Group, Inc.*

     26,373         2,074,764   

DSW, Inc. (Class A Stock)

     93,624         3,528,688   

Foot Locker, Inc.

     20,937         1,176,031   

Inditex SA (Spain), ADR

     536,661         8,425,578   

Mattress Firm Holding Corp.*(a)

     108,388         6,601,913   

Restoration Hardware Holdings, Inc.*(a)

     30,243         2,664,408   

Tiffany & Co.

     53,367         4,708,037   

Ulta Salon Cosmetics & Fragrance, Inc.*

     23,065         3,246,629   

Williams-Sonoma, Inc.

     3,893         313,192   

Zumiez, Inc.*

     26,424         1,025,780   
     

 

 

 
        33,765,020   

Technology Hardware, Storage & Peripherals    4.4%

                 

Apple, Inc.

     225,328         28,945,635   

EMC Corp.

     273,850         7,925,219   

Hewlett-Packard Co.

     262,740         9,153,861   

NCR Corp.*

     150,029         4,412,353   
     

 

 

 
        50,437,068   

Textiles, Apparel & Luxury Goods    2.3%

                 

Burberry Group PLC (United Kingdom)

     204,697         5,900,559   

Deckers Outdoor Corp.*

     57,456         4,265,533   

G-III Apparel Group Ltd.*(a)

     16,946         1,783,228   

Kate Spade & Co.*

     10,511         362,104   

 

See Notes to Financial Statements.

 

18  


Description    Shares      Value (Note 1)  

COMMON STOCKS (Continued)

     

Textiles, Apparel & Luxury Goods (cont’d.)

                 

NIKE, Inc. (Class B Stock)

     138,693       $ 13,469,864   
     

 

 

 
        25,781,288   

Thrifts & Mortgage Finance    0.2%

                 

Provident Financial Services, Inc.

     77,086         1,402,965   

WSFS Financial Corp.

     9,888         768,693   
     

 

 

 
        2,171,658   

Trading Companies & Distributors    0.1%

                 

WESCO International, Inc.*(a)

     19,986         1,387,628   

Transportation Infrastructure

                 

Wesco Aircraft Holdings, Inc.*

     35,550         533,605   

Wireless Telecommunication Services    1.1%

                 

SBA Communications Corp. (Class A Stock)*

     62,291         7,768,310   

Vodafone Group PLC (United Kingdom), ADR

     124,673         4,308,699   
     

 

 

 
        12,077,009   
     

 

 

 

TOTAL LONG-TERM INVESTMENTS
(cost $766,334,060)

        1,122,657,126   
     

 

 

 

SHORT-TERM INVESTMENT    9.1%

     

AFFILIATED MONEY MARKET MUTUAL FUND

                 

Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund
(cost $102,907,683; includes $85,994,367 of cash collateral for securities on loan) (Note 3)(b)(c)

     102,907,683         102,907,683   
     

 

 

 

TOTAL INVESTMENTS    108.2%
(cost $869,241,743; Note 5)

        1,225,564,809   

Liabilities in excess of other assets    (8.2)%

        (92,587,733
     

 

 

 

NET ASSETS    100.0%

      $ 1,132,977,076   
     

 

 

 

 

The following abbreviations are used in the portfolio descriptions:

ADR—American Depositary Receipt

* Non-income producing security.
(a) All or a portion of security is on loan. The aggregate market value of such securities, including those sold and pending settlement, is $83,895,427; cash collateral of $85,994,367 (included in liabilities) was received with which the Fund purchased highly liquid short-term investments. Securities on loan are subject to contractual netting arrangements.

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     19   


 

Portfolio of Investments

 

as of February 28, 2015 (Unaudited) continued

 

(b) Prudential Investments LLC, the manager of the Fund, also serves as manager of the Prudential Investment Portfolios 2 - Prudential Core Taxable Money Market Fund.
(c) Represents security, or a portion thereof, purchased with cash collateral received for securities on loan.

 

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

 

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

 

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

 

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

 

The following is a summary of the inputs used as of February 28, 2015 in valuing such portfolio securities:

 

        Level 1             Level 2             Level 3      

Investments in Securities

     

Common Stocks

     

Aerospace & Defense

  $      21,048,425      $             —      $   —   

Airlines

    17,687,283                 

Auto Components

    11,966,830                 

Automobiles

    12,156,532                 

Banks

    83,623,367                 

Biotechnology

    61,845,674                 

Building Products

    567,971                 

Capital Markets

    24,933,791                 

Chemicals

    11,085,809                 

Commercial Services & Supplies

    7,910,146                 

Communications Equipment

    8,253,896                 

Construction & Engineering

    1,683,966                 

Consumer Finance

    13,631,857                 

Containers & Packaging

    1,987,620                 

Diversified Consumer Services

    2,321,671                 

Diversified Financial Services

    5,247,430                 

Diversified Telecommunication Services

    4,689,357                 

Electric Utilities

    16,175,623                 

Electrical Equipment

    9,927,524                 

Electronic Equipment, Instruments & Components

    9,578,827                 

Energy Equipment & Services

    14,131,938                 

 

See Notes to Financial Statements.

 

20  


        Level 1             Level 2             Level 3      

Common Stocks (continued)

     

Food & Staples Retailing

  $ 17,137,585      $      $   —   

Food Products

    34,393,247                 

Health Care Equipment & Supplies

    4,085,522                 

Health Care Providers & Services

    24,014,884                 

Hotels, Restaurants & Leisure

    40,036,180                 

Household Durables

    3,335,129                 

Independent Power & Renewable Electricity Producers

    4,797,079                 

Industrial Conglomerates

    5,602,096                 

Insurance

    37,006,360                 

Internet & Catalog Retail

    23,278,406                 

Internet Software & Services

    62,545,755                 

IT Services

    35,335,081                 

Leisure Products

    1,404,328                 

Life Sciences Tools & Services

    12,332,766                 

Machinery

    25,542,456                 

Media

    28,494,983                 

Metals & Mining

    4,150,045                 

Multi-Utilities

    998,838                 

Multiline Retail

    9,431,376                 

Oil, Gas & Consumable Fuels

    53,568,173                 

Pharmaceuticals

    84,293,050                 

Professional Services

    6,536,117                 

Real Estate Investment Trusts (REITs)

    28,282,374                 

Real Estate Management & Development

    3,320,754                 

Road & Rail

    14,055,227                 

Semiconductors & Semiconductor Equipment

    32,290,672                 

Software

    59,779,830                 

Specialty Retail

    33,765,020                 

Technology Hardware, Storage & Peripherals

    50,437,068                 

Textiles, Apparel & Luxury Goods

    19,880,729        5,900,559          

Thrifts & Mortgage Finance

    2,171,658                 

Trading Companies & Distributors

    1,387,628                 

Transportation Infrastructure

    533,605                 

Wireless Telecommunication Services

    12,077,009                 

Affiliated Money Market Mutual Fund

    102,907,683                 
 

 

 

   

 

 

   

 

 

 

Total

  $ 1,219,664,250      $ 5,900,559      $   —   
 

 

 

   

 

 

   

 

 

 

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     21   


 

Portfolio of Investments

 

as of February 28, 2015 (Unaudited) continued

 

 

The industry classification of investments and liabilities in excess of other assets shown as a percentage of net assets as of February 28, 2015 was as follows:

 

Affiliated Money Market Mutual Fund (including 7.6% of collateral for securities on loan)

    9.1

Pharmaceuticals

    7.4   

Banks

    7.4   

Internet Software & Services

    5.5   

Biotechnology

    5.5   

Software

    5.3   

Oil, Gas & Consumable Fuels

    4.7   

Technology Hardware, Storage & Peripherals

    4.4   

Hotels, Restaurants & Leisure

    3.5   

Insurance

    3.3   

IT Services

    3.1   

Food Products

    3.0   

Specialty Retail

    3.0   

Semiconductors & Semiconductor Equipment

    2.8   

Media

    2.5   

Real Estate Investment Trusts (REITs)

    2.5   

Textiles, Apparel & Luxury Goods

    2.3   

Machinery

    2.3   

Capital Markets

    2.2   

Health Care Providers & Services

    2.1   

Internet & Catalog Retail

    2.1   

Aerospace & Defense

    1.9   

Airlines

    1.6   

Food & Staples Retailing

    1.5   

Electric Utilities

    1.4   

Energy Equipment & Services

    1.2   

Road & Rail

    1.2   

Consumer Finance

    1.2   

Life Sciences Tools & Services

    1.1   

Automobiles

    1.1   

Wireless Telecommunication Services

    1.1

Auto Components

    1.1   

Chemicals

    1.0   

Electrical Equipment

    0.9   

Electronic Equipment, Instruments & Components

    0.8   

Multiline Retail

    0.8   

Communications Equipment

    0.7   

Commercial Services & Supplies

    0.7   

Professional Services

    0.6   

Industrial Conglomerates

    0.5   

Diversified Financial Services

    0.5   

Independent Power & Renewable Electricity Producers

    0.4   

Diversified Telecommunication Services

    0.4   

Metals & Mining

    0.4   

Health Care Equipment & Supplies

    0.4   

Household Durables

    0.3   

Real Estate Management & Development

    0.3   

Diversified Consumer Services

    0.2   

Thrifts & Mortgage Finance

    0.2   

Containers & Packaging

    0.2   

Construction & Engineering

    0.1   

Leisure Products

    0.1   

Trading Companies & Distributors

    0.1   

Multi-Utilities

    0.1   

Building Products

    0.1   
 

 

 

 
    108.2   

Liabilities in excess of other assets

    (8.2
 

 

 

 
    100.0
 

 

 

 

 

See Notes to Financial Statements.

 

22  


LOGO

 

PRUDENTIAL INVESTMENTS»MUTUAL FUNDS

 

FINANCIAL STATEMENTS

(UNAUDITED)

 

SEMIANNUAL REPORT · FEBRUARY 28, 2015

 

Prudential Jennison Blend Fund, Inc.


 

Statement of Assets & Liabilities

 

as of February 28, 2015 (Unaudited)

 

Assets

        

Investments at value, including securities on loan of $83,895,427:

  

Unaffiliated Investments (cost $766,334,060)

   $ 1,122,657,126   

Affiliated Investments (cost $102,907,683)

     102,907,683   

Receivable for investments sold

     2,130,610   

Dividends receivable

     991,298   

Receivable for Fund shares sold

     135,459   

Tax reclaim receivable

     96,728   

Prepaid expenses

     6,394   
  

 

 

 

Total assets

     1,228,925,298   
  

 

 

 

Liabilities

        

Payable to broker for collateral for securities on loan

     85,994,367   

Payable for investments purchased

     8,176,543   

Payable for Fund shares reacquired

     527,936   

Management fee payable

     414,798   

Accrued expenses

     405,602   

Distribution fee payable

     272,395   

Payable to custodian

     11,415   

Affiliated transfer agent fee payable

     145,166   
  

 

 

 

Total liabilities

     95,948,222   
  

 

 

 

Net Assets

   $ 1,132,977,076   
  

 

 

 
          

Net assets were comprised of:

  

Common stock, at par

   $ 522,188   

Paid-in capital in excess of par

     751,697,150   
  

 

 

 
     752,219,338   

Undistributed net investment income

     1,184,812   

Accumulated net realized gain on investment and foreign currency transactions

     23,249,860   

Net unrealized appreciation on investments and foreign currencies

     356,323,066   
  

 

 

 

Net assets, February 28, 2015

   $ 1,132,977,076   
  

 

 

 

 

See Notes to Financial Statements.

 

24  


 

Class A

        

Net asset value and redemption price per share
($1,048,098,368 ÷ 48,158,916 shares of common stock issued and outstanding)

   $ 21.76   

Maximum sales charge (5.50% of offering price)

     1.27   
  

 

 

 

Maximum offering price to public

   $ 23.03   
  

 

 

 

Class B

        

Net asset value, offering price and redemption price per share
($19,829,413 ÷ 981,541 shares of common stock issued and outstanding)

   $ 20.20   
  

 

 

 

Class C

        

Net asset value, offering price and redemption price per share
($25,504,141 ÷ 1,262,075 shares of common stock issued and outstanding)

   $ 20.21   
  

 

 

 

Class Z

        

Net asset value, offering price and redemption price per share
($39,545,154 ÷ 1,816,243 shares of common stock issued and outstanding)

   $ 21.77   
  

 

 

 

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     25   


 

Statement of Operations

 

Six Months Ended February 28, 2015 (Unaudited)

 

Net Investment Income

        

Income

  

Unaffiliated dividend income (net of foreign withholding taxes of $118,870)

   $ 7,575,709   

Affiliated income from securities loaned, net

     70,578   

Affiliated dividend income

     13,692   
  

 

 

 

Total income

     7,659,979   
  

 

 

 

Expenses

  

Management fee

     2,680,539   

Distribution fee—Class A

     1,530,870   

Distribution fee—Class B

     98,712   

Distribution fee—Class C

     124,356   

Transfer agent’s fees and expenses (including affiliated expense of $207,900)

     734,000   

Shareholders’ reports

     120,000   

Custodian’s fees and expenses

     80,000   

Registration fees

     34,000   

Directors’ fees

     19,000   

Legal fees and expenses

     16,000   

Audit fee

     11,000   

Insurance expenses

     8,000   

Miscellaneous

     9,788   
  

 

 

 

Total expenses

     5,466,265   
  

 

 

 

Net investment income

     2,193,714   
  

 

 

 

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

        

Net realized gain (loss) on:

  

Investment transactions

     50,275,459   

Foreign currency transactions

     (2,563
  

 

 

 
     50,272,896   
  

 

 

 

Net change in unrealized appreciation (depreciation) on investments

     (21,283,106
  

 

 

 

Net gain on investment and foreign currency transactions

     28,989,790   
  

 

 

 

Net Increase In Net Assets Resulting From Operations

   $ 31,183,504   
  

 

 

 

 

See Notes to Financial Statements.

 

26  


 

Statement of Changes in Net Assets

 

(Unaudited)

 

     Six Months
Ended
February 28, 2015
     Year
Ended
August 31, 2014
 

Increase (Decrease) In Net Assets

                 

Operations

     

Net investment income

   $ 2,193,714       $ 2,261,798   

Net realized gain on investment and foreign currency transactions

     50,272,896         132,328,415   

Net change in unrealized appreciation (depreciation) on investments and foreign currencies

     (21,283,106      89,197,060   
  

 

 

    

 

 

 

Net increase in net assets resulting from operations

     31,183,504         223,787,273   
  

 

 

    

 

 

 

Dividends and Distributions (Note 1)

     

Dividends from net investment income

     

Class A

     (1,807,476      (5,358,631

Class Z

     (191,113      (356,900
  

 

 

    

 

 

 
     (1,998,589      (5,715,531
  

 

 

    

 

 

 

Distributions from net realized gains

     

Class A

     (110,724,220      (100,270,998

Class B

     (2,231,088      (2,400,631

Class C

     (2,873,213      (2,722,491

Class Z

     (4,414,149      (4,389,027
  

 

 

    

 

 

 
     (120,242,670      (109,783,147
  

 

 

    

 

 

 

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

     

Net proceeds from shares sold

     9,505,207         32,427,470   

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

     119,029,820         112,051,550   

Cost of shares reacquired

     (74,119,529      (145,067,137
  

 

 

    

 

 

 

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

     54,415,498         (588,117
  

 

 

    

 

 

 

Total increase (decrease)

     (36,642,257      107,700,478   

Net Assets:

                 

Beginning of period

     1,169,619,333         1,061,918,855   
  

 

 

    

 

 

 

End of period(a)

   $ 1,132,977,076       $ 1,169,619,333   
  

 

 

    

 

 

 

(a) Includes undistributed net investment income of:

   $ 1,184,812       $ 989,687   
  

 

 

    

 

 

 

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     27   


 

Notes to Financial Statements

 

(Unaudited)

 

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

 

Note 1. Accounting Policies

 

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

 

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

 

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

 

Common and preferred stocks, exchange-traded funds, and derivative instruments such as futures or options that are traded on a national securities exchange are valued at the last sale price as of the close of trading on the applicable exchange where the security principally trades. Securities traded via NASDAQ are valued at the NASDAQ official closing price. To the extent these securities are valued at the last sale price or NASDAQ official closing price, they are classified as Level 1 in the fair value hierarchy.

 

28  


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

 

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

 

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

 

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

 

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

 

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

 

Prudential Jennison Blend Fund, Inc.     29   


 

Notes to Financial Statements

 

(Unaudited) continued

 

 

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

 

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

 

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

 

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

 

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

 

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

 

Net realized gains or losses on foreign currency transactions represent net foreign exchange gains or losses from holdings of foreign currencies, forward currency

 

30  


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

 

Master Netting Arrangements: The Fund is subject to various Master Agreements, or netting arrangements, with select counterparties. These are agreements which a sub-adviser may have negotiated and entered into on behalf of the Fund. For multi-sleeve Funds, different sub-advisers who manage their respective sleeve, may enter into such agreements with the same counterparty and are disclosed separately for each sleeve when presenting information about offsetting and related netting arrangements for OTC derivatives under the ASU 2013-01 disclosure. A master netting arrangement between the Fund and the counterparty permits the Fund to offset amounts payable by the Fund to the same counterparty against amounts to be received; and by the receipt of collateral from the counterparty by the Fund to cover the Fund’s exposure to the counterparty. However, there is no assurance that such mitigating factors are easily enforceable. The right to set-off exists when all the conditions are met such that each of the parties owes the other determinable amounts, the reporting party has the right to set-off the amount owed with the amount owed by the other party, the reporting party intends to set-off and the right of set-off is enforceable by law. During the reporting period, there were no instances where the right of set-off existed and management has not elected to offset.

 

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

 

Prudential Jennison Blend Fund, Inc.     31   


 

Notes to Financial Statements

 

(Unaudited) continued

 

 

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

 

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

 

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

 

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

 

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

 

32  


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

 

Note 2. Agreements

 

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

 

The management fee paid to PI is accrued daily and payable monthly, at an annual rate of .50% of the Fund’s average daily net assets up to $500 million, .475% of the next $500 million of the Fund’s average daily net assets and .45% of the Fund’s average daily net assets in excess of $1 billion. The effective management fee rate was .48% of the Fund’s average daily net assets for the six months ended February 28, 2015.

 

The Fund has a distribution agreement with Prudential Investment Management Services LLC (“PIMS”) which acts as the distributor of the Class A, Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for distributing and servicing the Fund’s Class A, Class B and Class C shares, pursuant to plans of distribution (the “Distribution Plans”), regardless of expenses actually incurred by PIMS. The distribution fees are accrued daily and payable monthly. No distribution or service fees are paid to PIMS as distributor of the Class Z shares of the Fund. Pursuant to the Distribution Plans, the Fund compensates PIMS for distribution related activities at an annual rate of up to .30%, 1% and 1% of the average daily net assets of the Class A, B and C shares, respectively.

 

PIMS has advised the Fund that it has received $147,421 in front-end sales charges resulting from sales of Class A shares, during the six months ended February 28, 2015. From these fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn paid commissions to salespersons and incurred other distribution costs.

 

Prudential Jennison Blend Fund, Inc.     33   


 

Notes to Financial Statements

 

(Unaudited) continued

 

 

PIMS has advised the Fund that for the six months ended February 28, 2015, it received $175, $12,746 and $502 in contingent deferred sales charges imposed upon redemptions by certain Class A, Class B and Class C shareholders, respectively.

 

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

 

Note 3. Other Transactions with Affiliates

 

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

 

Prudential Investment Management, Inc. (“PIM”), an indirect, wholly-owned subsidiary of Prudential, is the Fund’s security lending agent. For the six months ended February 28, 2015, PIM has been compensated approximately $21,600 for these services.

 

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

 

Note 4. Portfolio Securities

 

Purchases and sales of portfolio securities, other than short-term investments, for the six months ended February 28, 2015, were $263,826,124 and $321,509,530, respectively.

 

Note 5. Tax Information

 

The United States federal income tax basis of the Fund’s investments and the net unrealized appreciation as of February 28, 2015 were as follows:

 

Tax Basis

   $ 876,527,548   
  

 

 

 

Appreciation

     364,685,558   

Depreciation

     (15,648,297
  

 

 

 

Net Unrealized Appreciation

   $ 349,037,261   
  

 

 

 

 

34  


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

 

The Fund utilized approximately $3,439,000 of its capital loss carryforward to offset net taxable gains realized in the fiscal year ended August 31, 2014.

 

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

 

Note 6. Capital

 

The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are sold with a front-end sales charge of up to 5.50%. All investors who purchase Class A shares in an amount of $1 million or more and sell these shares within 12 months of purchase are subject to a contingent deferred sales charge (“CDSC”) of 1%, including investors who purchase their shares through broker-dealers affiliated with Prudential. The Class A CDSC is waived for purchases by certain retirement or benefit plans. Class B shares are sold with a CDSC which declines from 5% to zero depending on the period of time the shares are held. Class B shares automatically convert to Class A shares on a quarterly basis approximately seven years after purchase. Class C shares are sold with a CDSC of 1% during the first 12 months. A special exchange privilege is also available for shareholders who qualified to purchase Class A shares at net asset value. Class Z shares are not subject to any sales or redemption charge and are available exclusively for sale to a limited group of investors.

 

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

 

There are 1 billion shares of common stock, $.01 par value per share, divided into four classes, designated Class A, Class B, Class C and Class Z common stock, each of which consists of 250 million authorized shares.

 

Prudential Jennison Blend Fund, Inc.     35   


 

Notes to Financial Statements

 

(Unaudited) continued

 

 

Transactions in shares of common stock were as follows:

 

Class A

     Shares      Amount  

Six months ended February 28, 2015:

       

Shares sold

       333,389       $ 7,370,157   

Shares issued in reinvestment of dividends and distributions

       5,200,196         109,828,140   

Shares reacquired

       (2,625,150      (58,592,359
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       2,908,435         58,605,938   

Shares issued upon conversion from Class B and Class Z

       60,056         1,392,749   

Shares reacquired upon conversion into Class Z

       (31,963      (713,930
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       2,936,528       $ 59,284,757   
    

 

 

    

 

 

 

Year ended August 31, 2014:

       

Shares sold

       778,543       $ 17,586,157   

Shares issued in reinvestment of dividends and distributions

       4,809,481         102,680,378   

Shares reacquired

       (5,495,732      (124,505,753
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       92,292         (4,239,218

Shares issued upon conversion from Class B and Class Z

       243,207         5,532,083   

Shares reacquired upon conversion into Class Z

       (82,430      (1,877,248
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       253,069       $ (584,383
    

 

 

    

 

 

 

Class B

               

Six months ended February 28, 2015:

       

Shares sold

       7,100       $ 144,892   

Shares issued in reinvestment of dividends and distributions

       111,651         2,191,700   

Shares reacquired

       (50,926      (1,068,756
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       67,825         1,267,836   

Shares reacquired upon conversion into Class A

       (63,747      (1,385,316
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       4,078       $ (117,480
    

 

 

    

 

 

 

Year ended August 31, 2014:

       

Shares sold

       120,031       $ 2,541,562   

Shares issued in reinvestment of dividends and distributions

       117,179         2,356,464   

Shares reacquired

       (134,771      (2,862,912
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       102,439         2,035,114   

Shares reacquired upon conversion into Class A

       (250,995      (5,375,127
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       (148,556    $ (3,340,013
    

 

 

    

 

 

 

 

36  


Class C

     Shares      Amount  

Six months ended February 28, 2015:

       

Shares sold

       37,364       $ 763,684   

Shares issued in reinvestment of dividends and distributions

       131,142         2,575,633   

Shares reacquired

       (90,381      (1,883,555
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       78,125         1,455,762   

Shares reacquired upon conversion into Class Z

       (581      (12,221
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       77,544       $ 1,443,541   
    

 

 

    

 

 

 

Year ended August 31, 2014:

       

Shares sold

       79,436       $ 1,678,419   

Shares issued in reinvestment of dividends and distributions

       121,868         2,450,770   

Shares reacquired

       (213,135      (4,552,765
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       (11,831      (423,576

Shares reacquired upon conversion into Class Z

       (7,888      (163,135
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       (19,719    $ (586,711
    

 

 

    

 

 

 

Class Z

               

Six months ended February 28, 2015:

       

Shares sold

       55,196       $ 1,226,474   

Shares issued in reinvestment of dividends and distributions

       209,959         4,434,347   

Shares reacquired

       (554,469      (12,574,859
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       (289,314      (6,914,038

Shares issued upon conversion from Class A and Class C

       32,463         726,151   

Shares reacquired upon conversion into Class A

       (361      (7,433
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       (257,212    $ (6,195,320
    

 

 

    

 

 

 

Year ended August 31, 2014:

       

Shares sold

       452,746       $ 10,621,332   

Shares issued in reinvestment of dividends

       213,868         4,563,938   

Shares reacquired

       (578,552      (13,145,707
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding before conversion

       88,062         2,039,563   

Shares issued upon conversion from Class A and Class C

       89,731         2,040,383   

Shares reacquired upon conversion into Class A

       (6,953      (156,956
    

 

 

    

 

 

 

Net increase (decrease) in shares outstanding

       170,840       $ (3,922,990
    

 

 

    

 

 

 

 

Note 7. Borrowings

 

The Fund, along with other affiliated registered investment companies (the “Funds”), is a party to a Syndicated Credit Agreement (“SCA”) with a group of banks. The purpose of the SCA is to provide an alternative source of temporary funding for capital share redemptions. The SCA provides for a commitment of $900 million for the period November 5, 2013 through October 8, 2014. The Funds pay an annualized Commitment fee of 0.08% on the unused portion of the SCA. Interest on

 

Prudential Jennison Blend Fund, Inc.     37   


 

Notes to Financial Statements

 

(Unaudited) continued

 

any borrowings under the SCA is paid at contracted market rates. The commitment fee for the unused amount is accrued daily and paid quarterly.

 

Subsequent to the fiscal year end, the SCA has been renewed effective October 9, 2014 and will continue to provide a commitment of $900 million through October 8, 2015. Effective October 9, 2014, the Funds pay an annualized commitment fee of .075% of the unused portion of the SCA.

 

The Fund did not utilize the SCA during the six months ended February 28, 2015.

 

38  


 

Financial Highlights

 

(Unaudited)

 

Class A Shares  
     Six Months
Ended
February 28,
        Year Ended August 31,  
     2015          2014     2013     2012     2011     2010  
Per Share Operating Performance(a):                                                    
Net Asset Value, Beginning Of Period     $23.71            $21.64        $17.75        $16.68        $13.95        $13.34   
Income (loss) from investment operations:                                                    
Net investment income     .05            .05        .15        .05        .03        .03   
Net realized and unrealized gain on investment
and foreign currency transactions
    .56            4.44        3.83        1.05        2.73        .58   
Total from investment operations     .61            4.49        3.98        1.10        2.76        .61   
Less Dividends and Distributions:                                                    
Dividends from net investment income     (.04         (.12     (.09     (.03     (.03     -   
Distributions from net realized gains     (2.52         (2.30     -        -        -        -   
Total dividends and distributions     (2.56         (2.42     (.09     (.03     (.03     -   
Capital Contributions(e):     -            -        -        -        - (d)      - (d) 
Net asset value, end of period     $21.76            $23.71        $21.64        $17.75        $16.68        $13.95   
Total Return(b):     2.91%            22.00%        22.50%        6.59%        19.82%        4.57%   
Ratios/Supplemental Data:                                        
Net assets, end of period (000,000)     $1,048            $1,072        $973        $887        $931        $871   
Average net assets (000,000)     $1,029            $1,041        $930        $910        $1,017        $976   
Ratios to average net assets(c):                                                    
Expenses after waivers and/or expense reimbursement     .97% (f)          .95%        .97%        1.00%        1.00%        1.01%   
Expenses before waivers and/or expense reimbursement     .97% (f)          .95%        .97%        1.00%        1.00%        1.01%   
Net investment income     .41% (f)          .22%        .77%        .31%        .18%        .23%   
Portfolio turnover rate     24% (g)          54%        73%        110%        143%        112%   

 

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

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

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

(d) Less than $.005 per share.

(e) The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal years ended August 31, 2011 and 2010. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Annualized.

(g) Not annualized.

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     39   


 

Financial Highlights

 

(Unaudited) continued

 

Class B Shares  
     Six Months
Ended
February 28,
        Year Ended August 31,  
     2015          2014     2013     2012     2011     2010  
Per Share Operating Performance(a):                                                    
Net Asset Value, Beginning Of Period     $22.23            $20.44        $16.81        $15.88        $13.34        $12.85   
Income (loss) from investment operations:                                                    
Net investment income (loss)     (.03         (.10     .01        (.06     (.08     (.07
Net realized and unrealized gain on investment and foreign currency transactions     .52            4.19        3.62        .99        2.62        .56   
Total from investment operations     .49            4.09        3.63        .93        2.54        .49   
Less Dividends and Distributions:                                                    
Dividends from net investment income     -            -        - (d)      -        -        -   
Distributions from net realized gains     (2.52         (2.30     -        -        -        -   
Total dividends and distributions     (2.52         (2.30     - (d)      -        -        -   
Capital Contributions(e):     -            -        -        -        - (d)      - (d) 
Net asset value, end of period     $20.20            $22.23        $20.44        $16.81        $15.88        $13.34   
Total Return(b):     2.54%            21.20%        21.63%        5.86%        19.04%        3.81%   
Ratios/Supplemental Data:  
Net assets, end of period (000,000)     $20            $22        $23        $23        $29        $33   
Average net assets (000,000)     $20            $23        $23        $26        $35        $42   
Ratios to average net assets(c):                                                    
Expenses after waivers and/or expense reimbursement     1.67% (f)          1.65%        1.67%        1.70%        1.70%        1.71%   
Expenses before waivers and/or expense reimbursement     1.67% (f)          1.65%        1.67%        1.70%        1.70%        1.71%   
Net investment income (loss)     (.29)% (f)          (.48)%        .08%        (.40)%        (.52)%        (.46)%   
Portfolio turnover rate     24% (g)          54%        73%        110%        143%        112%   

 

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

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

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

(d) Less than $.005 per share.

(e) The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal years ended August 31, 2011 and 2010. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Annualized.

(g) Not annualized.

 

See Notes to Financial Statements.

 

40  


 

Class C Shares  
    

Six Months
Ended
February 28,

        Year Ended August 31,  
     2015          2014     2013     2012     2011     2010  
Per Share Operating Performance(a):                                                    
Net Asset Value, Beginning Of Period     $22.23            $20.45        $16.82        $15.88        $13.35        $12.86   
Income (loss) from investment operations:                                                    
Net investment income (loss)     (.03         (.10     .01        (.06     (.09     (.07
Net realized and unrealized gain on investment
and foreign currency transactions
    .53            4.18        3.62        1.00        2.62        .56   
Total from investment operations     .50            4.08        3.63        .94        2.53        .49   
Less Dividends and Distributions:                                                    
Dividends from net investment income     -            -        - (d)      -        -        -   
Distributions from net realized gains     (2.52         (2.30     -        -        -        -   
Total dividends and distributions     (2.52         (2.30     - (d)      -        -        -   
Capital Contributions(e):     -            -        -        -        - (d)      - (d) 
Net asset value, end of period     $20.21            $22.23        $20.45        $16.82        $15.88        $13.35   
Total Return(b):     2.58%            21.14%        21.61%        5.92%        18.95%        3.81%   
Ratios/Supplemental Data:  
Net assets, end of period (000,000)     $26            $26        $25        $23        $24        $22   
Average net assets (000,000)     $25            $26        $23        $24        $26        $24   
Ratios to average net assets(c):                                                    
Expenses after waivers and/or expense reimbursement     1.67% (f)          1.65%        1.67%        1.70%        1.70%        1.71%   
Expenses before waivers and/or expense reimbursement     1.67% (f)          1.65%        1.67%        1.70%        1.70%        1.71%   
Net investment income (loss)     (.29)% (f)          (.48)%        .07%        (.39)%        (.52)%        (.47)%   
Portfolio turnover rate     24% (g)          54%        73%        110%        143%        112%   

 

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

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

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

(d) Less than $.005 per share.

(e) The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal years ended August 31, 2011 and 2010. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Annualized.

(g) Not annualized.

 

See Notes to Financial Statements.

 

Prudential Jennison Blend Fund, Inc.     41   


 

Financial Highlights

 

(Unaudited) continued

 

Class Z Shares  
    

Six Months
Ended
February 28,

        Year Ended August 31,  
     2015          2014     2013     2012     2011     2010  
Per Share Operating Performance(a):                                                    
Net Asset Value, Beginning Of Period     $23.76            $21.67        $17.78        $16.71        $13.97        $13.32   
Income (loss) from investment operations:                                                    
Net investment income     .08            .12        .21        .10        .08        .08   
Net realized and unrealized gain on investment
and foreign currency transactions
    .56            4.46        3.82        1.05        2.74        .57   
Total from investment operations     .64            4.58        4.03        1.15        2.82        .65   
Less Dividends and Distributions:                                                    
Dividends from net investment income     (.11         (.19     (.14     (.08     (.08     -   
Distributions from net realized gains     (2.52         (2.30     -        -        -        -   
Total dividends and distributions     (2.63         (2.49     (.14     (.08     (.08     -   
Capital Contributions(e):     -            -        -        -        - (d)      - (d) 
Net asset value, end of period     $21.77            $23.76        $21.67        $17.78        $16.71        $13.97   
Total Return(b):     3.03%            22.43%        22.82%        6.94%        20.22%        4.88%   
Ratios/Supplemental Data:                                        
Net assets, end of period (000,000)     $40            $49        $41        $38        $57        $45   
Average net assets (000,000)     $44            $45        $39        $43        $56        $51   
Ratios to average net assets(c):                                                    
Expenses after waivers and/or expense reimbursement     .67% (f)          .65%        .67%        .70%        .70%        .71%   
Expenses before waivers and/or expense reimbursement     .67% (f)          .65%        .67%        .70%        .70%        .71%   
Net investment income     .71% (f)          .52%        1.08%        .60%        .48%        .54%   
Portfolio turnover rate     24% (g)          54%        73%        110%        143%        112%   

 

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

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

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

(d) Less than $.005 per share.

(e) The Fund received payments related to an unaffiliated-third party’s settlement of regulatory proceedings involving allegations of improper trading in Fund shares during the fiscal years ended August 31, 2011 and 2010. The Fund was not involved in the proceedings or in the calculation of the amount of settlement.

(f) Annualized.

(g) Not annualized.

 

See Notes to Financial Statements.

 

42  


Results of Proxy Voting

 

(Unaudited)

 

At the special meeting of shareholders held on November 26, 2014, shareholders of the Prudential Jennison Blend Fund, Inc. (the “Fund”), approved the following proposal:

 

To elect twelve Directors:

 

 

    SHARES VOTED     % OF VOTED     % OF TOTAL  

(a) Ellen S. Alberding;

     

FOR

    26,665,368.185        97.867     54.083

WITHHELD

    581,331.493        2.133     1.179

(b) Kevin J. Bannon;

     

FOR

    26,679,131.066        97.917     54.111

WITHHELD

    567,568.612        2.083     1.151

(c) Linda W. Bynoe;

     

FOR

    26,660,317.198        97.848     54.073

WITHHELD

    586,382.480        2.152     1.189

(d) Keith F. Hartstein;

     

FOR

    26,685,339.641        97.940     54.124

WITHHELD

    561,360.037        2.060     1.138

(e) Michael S. Hyland;

     

FOR

    26,661,185.521        97.852     54.075

WITHHELD

    585,514.157        2.148     1.187

(f) Stephen P. Munn;

     

FOR

    26,666,161.623        97.870     54.085

WITHHELD

    580,538.055        2.130     1.177

(g) James E. Quinn;

     

FOR

    26,675,924.068        97.906     54.105

WITHHELD

    570,775.610        2.094     1.157

(h) Richard A. Redeker;

     

FOR

    26,662,205.543        97.855     54.077

WITHHELD

    584,494.135        2.145     1.185

(i) Stephen G. Stoneburn;

     

FOR

    26,660,708.202        97.850     54.074

WITHHELD

    585,991.476        2.150     1.188

(j) Stuart S. Parker;

     

FOR

    26,694,714.387        97.975     54.143

WITHHELD

    551,985.291        2.025     1.119

(k) Scott E. Benjamin; and

     

FOR

    26,677,927.471        97.913     54.109

WITHHELD

    568,772.207        2.087     1.153

 

Prudential Jennison Blend Fund, Inc.     43   


Results of Proxy Voting

 

(Unaudited) continued

 

    SHARES VOTED     % OF VOTED     % OF TOTAL  

(l) Grace C. Torres.

     

FOR

    26,660,491.371        97.849     54.074

WITHHELD

    586,208.307        2.151     1.188

 

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

 

An abstention or a broker non-vote is considered present for purposes of determining a quorum but has the effect of a vote against such matters. At the special meeting of shareholders held on December 10, 2014, insufficient votes were obtained to approve the following proposals:

 

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

 

    SHARES VOTED     % OF VOTED     % OF TOTAL  

FOR

    7,119,940.286        26.095     14.441

AGAINST

    901,304.204        3.304     1.828

ABSTAIN

    517,192.928        1.895     1.049

BROKER NON-VOTE

    18,746,948.617        68.706     38.023

TOTAL

    27,285,386.035        100.000     55.341

 

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

 

    SHARES VOTED     % OF VOTED     % OF TOTAL  

FOR

    6,891,495.797        25.258     13.978

AGAINST

    1,048,855.305        3.845     2.127

ABSTAIN

    598,086.066        2.191     1.213

BROKER NON-VOTE

    18,746,948.617        68.706     38.023

TOTAL

    27,285,386.035        100.000     55.341

 

44  


n    MAIL   n    TELEPHONE   n    WEBSITE

Gateway Center Three

100 Mulberry Street

Newark, NJ 07102

  (800) 225-1852   www.prudentialfunds.com

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

TRANSFER AGENT   Prudential Mutual Fund
Services LLC
   PO Box 9658
ProvidenceRI 02940

 

INDEPENDENT REGISTERED
PUBLIC ACCOUNTING FIRM
  KPMG LLP    345 Park Avenue
New YorkNY 10154

 

FUND COUNSEL   Willkie Farr & Gallagher LLP    787 Seventh Avenue
New YorkNY 10019


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

 

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

 

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

 

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

 

Mutual Funds:

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


LOGO

 

 

PRUDENTIAL JENNISON BLEND FUND, INC.

 

SHARE CLASS   A   B   C   Z
NASDAQ   PBQAX   PBQFX   PRECX   PEQZX
CUSIP   74441T108   74441T207   74441T306   74441T405

 

MF1O1E2    0275786-00001-00


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

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

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

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

Item 6 – Schedule of Investments – The schedule is included as part of the report to shareholders filed under Item 1 of this Form.

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

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

 

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

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

Item 11 – Controls and Procedures

 

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

 

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

Item 12 – Exhibits

 

(a) (1) Code of Ethics – Not required, as this is not an annual filing.
(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.CERT.
(3) Any written solicitation to purchase securities under Rule 23c-1. – Not applicable.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act – Attached hereto as Exhibit EX-99.906CERT.


SIGNATURES

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

 

Registrant:  

Prudential Jennison Blend Fund, Inc.

 

By:

/s/ Deborah A. Docs

Deborah A. Docs

Secretary

 

Date: April 20, 2015

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

 

By:         

/s/ Stuart S. Parker                 

Stuart S. Parker

President and Principal Executive Officer

 

Date:

April 20, 2015

 

By:

/s/ M. Sadiq Peshimam

M. Sadiq Peshimam

Treasurer and Principal Financial and Accounting Officer

 

Date: April 20, 2015

Dates Referenced Herein   and   Documents Incorporated by Reference

This ‘N-CSRS’ Filing    Date    Other Filings
10/8/15
8/31/15
Filed on / Effective on:4/24/15
4/20/15
4/15/15
For Period End:2/28/15
12/10/14
12/3/14
11/26/14DEF 14A,  PRE 14A
10/9/14
10/8/14
9/1/14
8/31/1424F-2NT,  N-CSR,  NSAR-B
11/5/13
8/31/1124F-2NT,  N-CSR,  NSAR-B
8/31/1024F-2NT,  N-CSR,  NSAR-B
 List all Filings 
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