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PRUDENTIAL MUTUAL FUNDS
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Supplement dated August 30, 2000
The following information supplements the Prospectus of each of the Funds
listed below.
ANNUAL OR SPECIAL MEETING OF SHAREHOLDERS
(All Funds except Prudential Balanced Fund, Prudential Global Genesis Fund, Inc.
and Prudential International Bond Fund, Inc.)
On August 22, 2000, the Board of Directors/Trustees approved the proposals
summarized below. The proposals will be submitted for approval by shareholders
of the Funds at an Annual or Special Meeting of Shareholders scheduled to be
held on December 14, 2000.
Election of Directors/Trustees
All Funds, except Prudential Diversified Funds, Prudential Europe Growth
Fund, Inc., Prudential Natural Resources Fund, Inc., Prudential Pacific Growth
Fund, Inc. and Prudential World Fund, Inc. The Board of Directors/Trustees
approved a proposal to elect Saul F. Fenster, Delayne Dedrick Gold, Robert F.
Gunia, Douglas H. McCorkindale, W. Scott McDonald, Jr., Thomas T. Mooney,
Stephen P. Munn, David R. Odenath, Jr., Richard A. Redeker, Robin B. Smith, John
R. Strangfeld, Louis A. Weil, III and Clay T. Whitehead as Directors/Trustees of
each of the Funds.
Prudential Europe Growth Fund, Inc., Prudential Natural Resources Fund, Inc.,
Prudential Pacific Growth Fund, Inc. and Prudential World Fund, Inc. The Board
of Directors approved a proposal to elect Delayne Dedrick Gold, Robert F. Gunia,
Robert E. LaBlanc, David R. Odenath, Jr., Robin B. Smith, Stephen Stoneburn,
John R. Strangfeld, Nancy H. Teeters and Clay T. Whitehead as Directors of each
of the Funds.
How the Fund is Managed--Manager
All Funds. The Board of Directors/Trustees approved a proposal under which
the Board may authorize Prudential Investments Fund Management LLC (PIFM or the
Manager), subject to certain conditions, to enter into or amend subadvisory
agreements without obtaining further shareholder approval. One of the conditions
is that shareholders
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must first approve the grant of this ongoing authority to the Board of
Directors/Trustees. The implementation of this proposal also is conditioned upon
the receipt of exemptive relief from the Securities and Exchange Commission
(Commission).
Subject to the satisfaction of these two conditions, which cannot be assured,
the Manager would be permitted, with Board approval, to employ new subadvisers
for a Fund (including subadvisers affiliated with PIFM), change the terms of a
Fund's subadvisory agreements or enter into new subadvisory agreements with
existing subadvisers. Shareholders of a Fund would continue to have the right to
terminate a subadvisory agreement for a Fund at any time by a vote of the
majority of the outstanding voting securities of the Fund. Shareholders would be
notified of any subadviser changes or other material amendments to subadvisory
agreements that occur under these arrangements.
The Board of Directors/Trustees also approved a proposed new management
contract with PIFM. If shareholders approve this new contract, PIFM would be
permitted to allocate and reallocate a Fund's assets among the Fund's
subadvisers, including The Prudential Investment Corporation (PIC), Jennison
Associates LLC (Jennison) and unaffiliated subadvisers, without obtaining
further shareholder approval.
How the Fund is Managed--Investment Adviser(s)
All Funds. The Board of Directors/Trustees approved an interim subadvisory
agreement with Jennison, a direct, wholly-owned subsidiary of PIC, to manage up
to 100% of the total assets of each Fund as designated by the Manager. Jennison
has served as an investment adviser to investment companies since 1990. Its
address is 466 Lexington Avenue, New York, NY 10017. As of June 30, 2000,
Jennison managed approximately $63.5 billion in assets. PIFM, the Fund's
Manager, has responsibility for all investment advisory services, supervises
Jennison and pays Jennison for its services.
The Board of Directors/Trustees also approved a proposed new subadvisory
agreement with Jennison to manage up to 100% of the total assets of each Fund as
designated by the Manager and subject to Board approval. This agreement would
take effect only after shareholder approval.
Borrowing
All Funds. If approved by shareholders, each applicable Fund's investment
restriction regarding borrowing would be modified to allow
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borrowing of up to 33 1/3% of a Fund's total assets and to delete the
requirement that such borrowing can be made only from banks.
Investment in Securities of Other Investment Companies
All Funds. If approved by shareholders, each applicable Fund's investment
restriction regarding the purchase of shares of investment companies would be
modified to permit each Fund to invest in the shares of other registered
investment companies as permitted under applicable law or by an order of the
Commission. To the extent that a Fund does invest in securities of other
investment companies, shareholders may be subject to duplicate management and
advisory fees.
Securities Lending
All Funds. If approved by shareholders, each applicable Fund's investment
restriction regarding securities lending would be modified to permit each Fund
to make loans of portfolio securities in amounts up to 33 1/3% of the Fund's
total assets and as permitted by an order of the Commission.
HOW THE FUND IS MANAGED--PORTFOLIO MANAGER(S)
Prudential Equity Fund, Inc.
Jeffrey P. Siegel, Bradley L. Goldberg, CFA, and David A. Kiefer, CFA, are
the portfolio managers of the Fund effective August 24, 2000. Mr. Siegel is an
Executive Vice President of Jennison, a position he has held since June 1999.
Previously he was at TIAA-CREF from 1988-1999, where he held positions as a
portfolio manager and analyst. Prior to joining TIAA-CREF, Mr. Siegel was an
analyst for Equitable Capital Management and held positions at Chase Manhattan
Bank and First Fidelity Bank. Mr. Siegel earned a B.A. from Rutgers University.
Mr. Goldberg, an Executive Vice President of Jennison, joined Jennison in 1974
where he also serves as Chairman of the Asset Allocation Committee. Prior to
joining Jennison, he served as Vice President and Group Head in the Investment
Research Division of Bankers Trust Company. He earned a B.S. from the University
of Illinois and an M.B.A. from New York University. Mr. Goldberg holds a
Chartered Financial Analyst (CFA) designation. Mr. Kiefer has been a Senior Vice
President of Jennison since August 2000. Previously, he was a Managing Director
of PIC and has been with Prudential since 1986. Mr. Kiefer earned a B.S. from
Princeton University and an M.B.A. from Harvard Business School. He holds a CFA
designation.
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Prudential 20/20 Focus Fund
Bradley L. Goldberg, CFA, is the portfolio manager of the value sleeve of the
Fund effective September 2000. Mr. Goldberg's professional background is
discussed above.
Prudential Equity Income Fund
Thomas Kolefas, CFA, and Bradley L. Goldberg, CFA, are the portfolio managers
of the Fund effective September 2000. Mr. Kolefas has managed the Fund since May
2000. Mr. Kolefas is a Senior Vice President of Jennison, a position he has held
since September 2000. Previously, he was a Managing Director and Senior
Portfolio Manager of PIC. He joined Prudential in May 2000 from Loomis Sayles &
Co., L.P., where he headed the Large/Mid Cap Value Team. Prior to 1996, Mr.
Kolefas was employed by Mackay Shields Financial as a portfolio manager for five
years. Mr. Kolefas earned a B.S. and an M.B.A. from New York University and
holds a CFA designation. Mr. Goldberg is expected to begin managing the
portfolio in September 2000. His professional background is discussed above.
Prudential Sector Funds, Inc.--Prudential Utility Fund
David A. Kiefer, CFA, Eric S. Philo, CFA, and Shaun Hong, CFA, are the
portfolio managers of the Fund effective September 2000. Mr. Kiefer has managed
the Fund since 1994; his professional background is discussed above. Eric S.
Philo joined Jennison in May 1996 after 13 years with Goldman, Sachs & Company.
At Goldman, Mr. Philo initially followed a variety of companies and industries,
including capital goods, retailing, specialty and industrial chemicals, defense
electronics, and printing. During his last nine years there, he followed
publishing and media companies. While at Goldman, he was elected to
Institutional Investor's All-Star Team every year since 1987 and was elected to
The Wall Street Journal All-Star Stock Picking Team annually since its inception
in 1993, ranking number one in his sector in 1994 and 1995. Mr. Philo is the
primary author of a piece on publishing and the Internet entitled
CyberPublishing: A New Frontier in Content Liquidity (July 1995). He earned a
B.A. from George Washington University and an M.B.A from Columbia University
Graduate School of Business. He holds a CFA designation. Shaun Hong is a Vice
President of Jennison since September 2000. Previously he was a Vice President
and equity research analyst of PIC. Prior to Prudential, Mr. Hong was employed
as an analyst at Equinox Capital Management following the utility, consumer
products, commodities and technology sectors from 1994 -
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1999. Mr. Hong earned a B.S. from Carnegie Mellon University. He holds a CFA
designation.
OTHER MATTERS
(Prudential Balanced Fund, Prudential Global Genesis Fund, Inc. and Prudential
International Bond Fund, Inc.)
Shareholders of Prudential Balanced Fund, Prudential Global Genesis Fund,
Inc. and Prudential International Bond Fund, Inc. are each expected to vote on a
proposal to reorganize or merge their Fund into another Prudential mutual fund
prior to the shareholder meetings described above. If shareholders of these
Funds do not approve the proposed reorganization or merger, shareholders of each
Fund will likely be solicited to vote on the matters described above under
'ANNUAL OR SPECIAL MEETING OF SHAREHOLDERS'.
Listed below are the names of the Prudential Mutual Funds and the dates of
the Prospectus to which this Supplement relates.
Name of Fund Prospectus Date
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Prudential Balanced Fund October 4, 1999
Prudential Diversified Funds October 13, 1999
Prudential Equity Fund, Inc. March 1, 2000
Prudential Equity Income Fund January 20, 2000
Prudential Europe Growth Fund, Inc. June 30, 2000
Prudential Global Genesis Fund, Inc. August 6, 1999
Prudential Global Total Return Fund, Inc. March 8, 2000
Prudential Index Series Fund November 18, 1999
Prudential Stock Index Fund
Prudential International Bond Fund, Inc. March 8, 2000
Prudential Natural Resources Fund, Inc. July 31, 2000
Prudential Pacific Growth Fund, Inc. January 19, 2000
Prudential Real Estate Securities Fund June 2, 2000
Prudential Sector Funds, Inc. March 30, 2000
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Technology Fund
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Name of Fund Prospectus Date
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Prudential Small Company Fund, Inc. November 29, 1999
Prudential Tax-Managed Funds December 30, 1999
Prudential Tax-Managed Equity Fund
Prudential Tax-Managed Small-Cap Fund,
Inc. May 31, 2000
Prudential U.S. Emerging Growth Fund, Inc. January 20, 2000
Prudential Utility Fund (a series of
Prudential Sector Funds, Inc.) February 1, 2000
Prudential 20/20 Focus Fund March 31, 2000
Prudential World Fund, Inc.
Prudential Global Growth Fund February 2, 2000
Prudential International Value Fund February 2, 2000
Prudential Jennison International January 10, 2000
Growth Fund
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund December 2, 1999
Prudential Jennison Equity Opportunity
Fund December 2, 1999
Prudential Jennison Growth Fund December 2, 1999
