PRU

Business Context and Reporting Period

Reporting Manager: Prudential Financial, Inc.
Filing Type: Form 13F-HR (Holdings Report)
Reporting Period: Calendar Year Ended December 31, 2001
Submission Date: February 13, 2002
Scope: This report details equity securities over which Prudential Financial, Inc. and its wholly-owned subsidiaries (including Prudential Securities Group Inc. and Jennison Associates, LLC) exercised investment discretion. The filing aggregates data from four other included managers.

Key Financial Metrics

Total Portfolio Value: $30,598,074,000.00
Total Number of Holdings: 3,135 distinct entries
Top Holdings by Share Count:

• General Electric Co: 23,080,051 shares
• Microsoft Corp: 12,565,540 shares
• Intel Corp: 15,129,221 shares
• WorldCom Inc: 8,046,091 shares
• Verizon Communications: 6,252,383 shares

Top Holdings by Value (Estimated based on share count and typical 2001 pricing):

• General Electric Co
• Microsoft Corp
• Intel Corp
• WorldCom Inc
• Verizon Communications

Debt, Liquidity, and Margins: The filing text does not provide a clear value for the reporting manager's own debt, liquidity, revenue, or profit margins. This form reports only the composition of the investment portfolio.

Material Changes and Portfolio Composition

Portfolio Concentration: The portfolio is heavily weighted toward large-cap technology, telecommunications, and financial services sectors. Significant positions are held in Cisco Systems, Oracle Corp, Lucent Technologies, and SBC Communications.
Notable Holdings:

• Technology: Cisco Systems (18.1M shares), Oracle Corp (11.6M shares), Lucent Technologies (6.0M shares), Dell Computer (6.3M shares).
• Telecommunications: SBC Communications (8.7M shares), Verizon Communications (6.3M shares), WorldCom (8.0M shares).
• Financials: Citigroup Inc (11.0M shares), J.P. Morgan Chase (6.2M shares), Bank of America (4.1M shares).
• Consumer: Wal-Mart Stores (9.4M shares), Home Depot (5.2M shares), Coca-Cola Co (5.1M shares).

Comparison to Prior Period: The filing text does not provide a clear value for the prior comparable period's holdings or total value, preventing a direct quantitative comparison of material changes.

Guidance, Outlook, and Risks

Management Commentary: The filing text does not provide a clear value for management commentary, guidance, or outlook. Form 13F is a statutory disclosure of holdings and does not typically contain forward-looking statements.
Risks and Contingencies: The filing text does not provide a clear value for specific risks or contingencies. However, the portfolio composition indicates significant exposure to the technology and telecommunications sectors, which were experiencing high volatility during the 2001 reporting period.
Unusual Items: The report includes holdings in various preferred stocks and foreign securities (e.g., Royal Dutch Petroleum, Vodafone Group PLC), indicating a diversified global strategy.

Important Facts for Investor Verification

• Portfolio Size: Verify the total portfolio value of approximately $30.6 billion against the reporting date of December 31, 2001.
• Top Concentrations: Confirm the magnitude of positions in General Electric, Microsoft, Intel, and WorldCom, which represent a significant portion of the portfolio's risk profile.
• Subsidiary Reporting: Note that the report aggregates holdings from Prudential Securities Group Inc. and Jennison Associates, LLC, indicating a broad investment mandate across the Prudential group.
• Technology Exposure: Assess the risk associated with the heavy weighting in technology and telecommunications stocks (Cisco, Oracle, Lucent, WorldCom) given the market conditions of early 2002.
• Foreign Holdings: Review the list of foreign securities (e.g., Royal Dutch Petroleum, Vodafone) to understand the geographic diversification of the portfolio.