Prudential Mutual Funds
Prudential High Yield Total Return Fund, Inc.
SUPPLEMENT DATED JUNE 8, 2000
TO PROSPECTUS DATED JUNE 5, 2000
The following pages are amended and replaced in their entirety:
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THE PRUDENTIAL MUTUAL FUND FAMILY
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Prudential offers a broad range of mutual funds designed to meet your individual
needs. For more information about these funds, contact your financial adviser or
call us at (800) 225-1852. Read the prospectus carefully before you invest or
send money.
STOCK FUNDS ASSET ALLOCATION/BALANCED FUNDS
PRUDENTIAL EMERGING GROWTH FUND, INC. PRUDENTIAL BALANCED FUND
PRUDENTIAL EQUITY FUND, INC. PRUDENTIAL DIVERSIFIED FUNDS
PRUDENTIAL EQUITY INCOME FUND CONSERVATIVE GROWTH FUND
PRUDENTIAL INDEX SERIES FUND MODERATE GROWTH FUND
PRUDENTIAL SMALL-CAP INDEX FUND HIGH GROWTH FUND
PRUDENTIAL STOCK INDEX FUND THE PRUDENTIAL INVESTMENT PORTFOLIOS,
THE PRUDENTIAL INVESTMENT PORTFOLIOS, INC.
INC. PRUDENTIAL ACTIVE BALANCED FUND
PRUDENTIAL JENNISON EQUITY GLOBAL FUNDS
OPPORTUNITY FUND GLOBAL STOCK FUNDS
PRUDENTIAL JENNISON GROWTH FUND PRUDENTIAL DEVELOPING MARKETS FUND
PRUDENTIAL MID-CAP VALUE FUND PRUDENTIAL DEVELOPING MARKETS
PRUDENTIAL REAL ESTATE SECURITIES FUND EQUITY FUND
PRUDENTIAL SECTOR FUNDS, INC. PRUDENTIAL LATIN AMERICA EQUITY FUND
PRUDENTIAL FINANCIAL SERVICES FUND PRUDENTIAL EUROPE GROWTH FUND, INC.
PRUDENTIAL HEALTH SCIENCES FUND PRUDENTIAL GLOBAL GENESIS FUND, INC.
PRUDENTIAL TECHNOLOGY FUND PRUDENTIAL INDEX SERIES FUND
PRUDENTIAL UTILITY FUND PRUDENTIAL EUROPE INDEX FUND
PRUDENTIAL SMALL COMPANY FUND, PRUDENTIAL PACIFIC INDEX FUND
INC. PRUDENTIAL NATURAL RESOURCES FUND, INC.
PRUDENTIAL TAX-MANAGED FUNDS PRUDENTIAL PACIFIC GROWTH FUND, INC.
PRUDENTIAL TAX-MANAGED EQUITY FUND PRUDENTIAL WORLD FUND, INC.
PRUDENTIAL TAX-MANAGED SMALL-CAP PRUDENTIAL GLOBAL GROWTH FUND
FUND INC. PRUDENTIAL INTERNATIONAL VALUE FUND
PRUDENTIAL 20/20 FOCUS FUND PRUDENTIAL JENNISON INTERNATIONAL
NICHOLAS-APPLEGATE FUND, INC. GROWTH FUND
NICHOLAS-APPLEGATE GROWTH EQUITY GLOBAL UTILITY FUND, INC.
FUND TARGET FUNDS
TARGET FUNDS INTERNATIONAL EQUITY FUND
LARGE CAPITALIZATION GROWTH FUND
LARGE CAPITALIZATION VALUE FUND GLOBAL BOND FUNDS
SMALL CAPITALIZATION GROWTH FUND PRUDENTIAL GLOBAL TOTAL RETURN FUND,
SMALL CAPITALIZATION VALUE FUND INC.
PRUDENTIAL INTERNATIONAL BOND FUND,
INC.
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BOND FUNDS MONEY MARKET FUNDS
TAXABLE BOND FUNDS TAXABLE MONEY MARKET FUNDS
PRUDENTIAL GOVERNMENT INCOME CASH ACCUMULATION TRUST
FUND, INC. LIQUID ASSETS FUND
PRUDENTIAL GOVERNMENT SECURITIES TRUST NATIONAL MONEY MARKET FUND
SHORT-INTERMEDIATE TERM SERIES PRUDENTIAL GOVERNMENT SECURITIES TRUST
PRUDENTIAL HIGH YIELD FUND, INC. MONEY MARKET SERIES
PRUDENTIAL HIGH YIELD TOTAL RETURN U.S. TREASURY MONEY MARKET SERIES
FUND, INC. PRUDENTIAL SPECIAL MONEY MARKET
PRUDENTIAL INDEX SERIES FUND FUND, INC.
PRUDENTIAL BOND MARKET INDEX FUND MONEY MARKET SERIES
PRUDENTIAL SHORT-TERM CORPORATE BOND PRUDENTIAL MONEYMART ASSETS, INC.
FUND, INC.
INCOME PORTFOLIO TAX-FREE MONEY MARKET FUNDS
PRUDENTIAL TOTAL RETURN BOND FUND, INC. PRUDENTIAL TAX-FREE MONEY FUND, INC.
TARGET FUNDS PRUDENTIAL CALIFORNIA MUNICIPAL FUND
TOTAL RETURN BOND FUND CALIFORNIA MONEY MARKET SERIES
PRUDENTIAL MUNICIPAL SERIES FUND
TAX-EXEMPT BOND FUNDS CONNECTICUT MONEY MARKET SERIES
PRUDENTIAL CALIFORNIA MUNICIPAL FUND MASSACHUSETTS MONEY MARKET SERIES
CALIFORNIA SERIES NEW JERSEY MONEY MARKET SERIES
CALIFORNIA INCOME SERIES NEW YORK MONEY MARKET SERIES
PRUDENTIAL MUNICIPAL BOND FUND COMMAND FUNDS
HIGH INCOME SERIES COMMAND MONEY FUND
INSURED SERIES COMMAND GOVERNMENT FUND
PRUDENTIAL MUNICIPAL SERIES FUND COMMAND TAX-FREE FUND
FLORIDA SERIES
MASSACHUSETTS SERIES INSTITUTIONAL MONEY MARKET FUNDS
NEW JERSEY SERIES PRUDENTIAL INSTITUTIONAL LIQUIDITY
NEW YORK SERIES PORTFOLIO, INC.
NORTH CAROLINA SERIES INSTITUTIONAL MONEY MARKET SERIES
OHIO SERIES
PENNSYLVANIA SERIES
PRUDENTIAL NATIONAL MUNICIPALS
FUND, INC.
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42 PRUDENTIAL HIGH YIELD TOTAL RETURN FUND, INC. (Telephone) (800) 225-1852
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APPENDIX A
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DESCRIPTION OF SECURITY RATINGS
MOODY'S INVESTORS SERVICE
BOND RATINGS
Aaa: Bonds which are rated Aaa are judged to be of the best quality. They
carry the smallest degree of investment risk and are generally referred to as
"gilt-edged." Interest payments are protected by a large or by an exceptionally
stable margin and principal is secure. While the various protective elements are
likely to change, such changes as can be visualized are most unlikely to impair
the fundamentally strong position of such issues.
Aa: Bonds which are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally known as
high-grade bonds. They are rated lower than the best bonds because margins of
protection may not be as large as in Aaa securities or the fluctuation of
protective elements may be of greater amplitude or there may be other elements
present which make the long-term risks appear somewhat larger than the Aaa
securities.
A: Bonds which are rated A possess many favorable investment attributes and
are to be considered as upper-medium-grade obligations. Factors giving security
to principal and interest are considered adequate, but elements may be present
which suggest a susceptibility to impairment some time in the future.
Baa: Bonds which are rated Baa are to be considered as medium-grade
obligations, i.e., they are neither highly protected nor poorly secured.
Interest payments and principal security appear adequate for the present but
certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding investment
characteristics and in fact have speculative characteristics as well.
Ba: Bonds which are rated Ba are judged to have speculative elements; their
future cannot be considered as well assured. Often the protection of interest
and principal payments may be very moderate and thereby not well safeguarded
during both good and bad times over the future. Uncertainty of position
characterizes bonds in this class.
B: Bonds which are rated B generally lack characteristics of the desirable
investment. Assurance of interest and principal payments or of maintenance of
other terms of the contract over any long period of time may be small.
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A-1
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APPENDIX A
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Moody's applies numerical modifiers 1, 2 and 3 in each generic rating
classification from Aa to B. The modifier 1 indicates that the company ranks in
the higher end of its generic rating category; the modifier 2 indicates a
mid-range ranking; and the modifier 3 indicates that the company ranks in the
lower end of its generic rating category.
Caa: Bonds which are rated Caa are of poor standing. Such issues may be in
default or there may be present elements of danger with respect to principal or
interest.
Ca: Bonds which are rated Ca represent obligations which are speculative in
a high degree. Such issues are often in default or have other marked
shortcomings.
SHORT-TERM DEBT RATINGS
Moody's short-term debt ratings are opinions of the ability of issuers to repay
punctually senior debt obligations. These obligations have an original maturity
not exceeding one year, unless explicitly noted.
PRIME-l: Issuers rated Prime-1 (or supporting institutions) have a superior
ability for repayment of senior short-term debt obligations. Prime-1 repayment
ability will often be evidenced by many of the following characteristics:
o Leading market positions in well-established industries.
o High rates of return on funds employed.
o Conservative capitalization structure with moderate reliance on debt
and ample asset protection.
o Broad margins in earnings coverage of fixed financial charges and high
internal cash generation.
o Well-established access to a range of financial markets and assured
sources of alternate liquidity.
PRIME-2: Issuers rated Prime-2 (or supporting institutions) have a strong
ability for repayment of senior short-term debt obligations. This normally will
be evidenced by many of the characteristics cited above but to a lesser degree.
Earnings trends and coverage ratios, while sound, may be more subject to
variation. Capitalization characteristics, while still appropriate, may be more
affected by external conditions. Ample alternate liquidity is maintained.
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A-2 PRUDENTIAL HIGH YIELD TOTAL RETURN FUND, INC. (TELEPHONE) (800) 225-1852
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APPENDIX A
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STANDARD & POOR'S RATINGS GROUP
BOND RATINGS
AAA: An obligation rated AAA has the highest rating assigned by S&P. The
obligor's capacity to meet its financial commitment on the obligation is
extremely strong.
AA: An obligation rated AA differs from the highest rated obligations only
in small degree. The obligor's capacity to meet its financial commitment on the
obligation is very strong.
A: An obligation rated A is somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than obligations in
higher-rated categories. However, the obligor's capacity to meet its financial
commitment on the obligation is still strong.
BBB: An obligation rated BBB exhibits adequate protection parameters.
However, adverse economic conditions or changing circumstances are more likely
to lead to a weakened capacity of the obligor to meet its financial commitment
on the obligation.
BB, B, CCC and CC: Obligations rated BB, B, CCC and CC are regarded as
having significant speculative characteristics, BB indicates the least degree of
speculation and CC the highest. While such obligations will likely have some
quality and protective characteristics, these may be outweighed by large
uncertainties or major exposures to adverse conditions.
COMMERCIAL PAPER RATINGS
An S&P commercial paper rating is a current assessment of the likelihood of
timely payment of debt considered short-term in the relevant market.
A-l: This designation indicates that the degree of safety regarding timely
payment is strong. Those issues determined to possess extremely strong safety
characteristics are denoted with a plus sign (+) designation.
A-2: Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated A-l.
DUFF & PHELPS CREDIT RATING CO.
LONG-TERM DEBT AND PREFERRED STOCK RATINGS
AAA: Highest credit quality. The risk factors are negligible, being only
slightly more than for risk-free U.S. Treasury debt.
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APPENDIX A
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AA: High credit quality. Protection factors are strong. Risk is modest but
may vary slightly from time to time because of economic conditions.
A: Protection factors are average but adequate. However, risk factors are
more variable and greater in periods of economic stress.
BBB: Below average protection factors but still considered sufficient for
prudent investment. Considerable variability in risk during economic cycles.
BB: Below investment-grade but deemed likely to meet obligations when due.
Present or prospective financial protection factors fluctuate according to
industry conditions or company fortunes. Overall quality may move up or down
frequently within this category.
B: Below investment-grade and possessing risk that obligations will not be
met when due. Financial protection factors will fluctuate widely according to
economic cycles, industry conditions and/or company fortunes. Potential exists
for frequent changes in the rating within this category or into a higher or
lower rating grade.
Duff & Phelps refines each generic rating classification from AA through B
with a "+" or a "-".
CCC: Well below investment-grade securities. Considerable uncertainty
exists as to timely payment of principal, interest or preferred dividends.
Protection factors are narrow and risk can be substantial with unfavorable
economic/industry conditions, or with unfavorable company developments.
SHORT-TERM DEBT RATINGS
Duff 1+: Highest certainty of timely payment. Short-term liquidity,
including internal operating factors and/or access to alternative sources of
funds, is outstanding, and safety is just below risk-free U.S. Treasury
short-term obligations.
Duff 1: Very high certainty of timely payment. Liquidity factors are
excellent and supported by good fundamental protection factors. Risk factors are
minor.
Duff 1-: High certainty of timely payment. Liquidity factors are strong and
supported by good fundamental protection factors. Risk factors are very small.
Duff 2: Good certainty of timely payment. Liquidity factors and Company
fundamentals are sound. Although ongoing funding needs may enlarge total
financing requirements, access to capital markets is good. Risk factors are
small.
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A-4 PRUDENTIAL HIGH YIELD TOTAL RETURN FUND, INC. (TELEPHONE) (800) 225-1852
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NOTES
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NOTES
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PRUDENTIAL HIGH YIELD TOTAL RETURN FUND, INC. (TELEPHONE) (800) 225-1852
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