Business Context and Reporting Period
Reporting Entity: Prudential Financial, Inc. (and subsidiaries including The Prudential Insurance Company of America, Prudential Investment Management, Inc., and Prudential Investment Management Services, LLC).
Filing Type: Form 13F-HR (Holdings Report).
Reporting Period: Quarter ended March 31, 2002.
Submission Date: May 9, 2002.
Scope: This filing discloses equity securities over which Prudential Financial, Inc. and its subsidiaries exercise sole or shared investment discretion. It is a regulatory disclosure of portfolio holdings, not a financial performance report of Prudential's own operations.
Key Financial Metrics
Total Portfolio Value: $25,961,698,000 (approximately $25.96 billion).
Total Number of Holdings: 2,285 distinct security entries.
Number of Included Managers: 3 (Prudential Insurance Company of America, Prudential Investment Management, Inc., Prudential Investment Management Services, LLC).
Top Holdings by Value (Selected):
- General Electric Co: 18,365,088 shares
- Wal-Mart Stores Inc: 8,133,311 shares
- Microsoft Corp: 10,308,542 shares
- Exxon Mobil Corp: 12,739,195 shares
- Verizon Communications: 6,115,929 shares
- WorldCom Inc: 6,815,696 shares
- Intel Corp: 13,723,337 shares
- Cisco Systems Inc: 15,817,996 shares
Material Changes vs. Prior Period
Data Availability: The provided text contains only the current period's holdings (Q1 2002). It does not include the prior period's data (Q4 2001) or a comparative schedule. Therefore, specific material changes in position size or new/removed holdings cannot be calculated from this document alone.
Guidance, Outlook, and Risks
Management Commentary: None. Form 13F filings are factual disclosures of holdings and do not contain management discussion, financial guidance, or outlook statements.
Risks and Contingencies: The filing does not discuss risks. However, the portfolio composition reflects significant exposure to the technology and telecommunications sectors (e.g., Cisco, WorldCom, Lucent, Nortel, Qwest) which were experiencing high volatility during the 2002 period.
Unusual Items: The portfolio includes a mix of domestic and international equities, including ADRs (e.g., Royal Dutch Petroleum, Nokia Corp). The filing notes that Prudential Securities Group Inc. and Jennison Associates, LLC. are reporting with respect to securities over which they exercise investment discretion.
Important Facts for Investor Verification
- Portfolio Concentration: Verify the concentration risk in the top 10 holdings, which represent a significant portion of the $25.96 billion total value.
- Technology Sector Exposure: Confirm the extent of exposure to the telecommunications and technology sectors, which were under significant market pressure in early 2002.
- WorldCom Holdings: Note the substantial position in WorldCom Inc (6.8 million shares), a company that would later face major accounting scandals and bankruptcy.
- Manager Attribution: Distinguish between holdings managed by Prudential Insurance Company of America versus its investment management subsidiaries.
- Reporting Lag: Acknowledge that this data reflects positions as of March 31, 2002, and does not reflect subsequent market movements or trading activity.