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Prudential Mutual Funds
(Money Market Funds)
Supplement dated June 30, 1996
Commencing July 5, 1996, the following procedures for the purchase and
redemption of shares of each of the money market funds listed below are in
effect.
SHAREHOLDER GUIDE
HOW TO BUY SHARES OF THE FUND/TRUST
General Information
Shares of the Fund are available through Prudential Securities Incorporated
(Prudential Securities), Pruco Securities Corporation (Prusec) or directly from
the Fund, through its Transfer Agent, Prudential Mutual Fund Services, Inc.
(PMFS or the Transfer Agent), Attention: Investment Services, P.O. Box 15020,
New Brunswick, New Jersey 08906-5020, as set forth below. Shareholders of the
Fund who are clients of Prudential Securities are subject to the procedures
under ``Purchases through Prudential Securities'' below.
Except as otherwise provided below, the minimum initial investment is $1,000
and the minimum subsequent investment is $100. The minimum initial investment
for the U.S. Treasury Money Market Series of Prudential Government Securities
Trust is $2,500. All minimum investment requirements are waived for certain
retirement and employee savings plans and custodial accounts for the benefit of
minors. For purchases made through the Automatic Savings Accumulation Plan, the
minimum initial and subsequent investment is $50. See ``Shareholder Services''
below. For automatic purchases made through Prudential Securities, the minimum
initial investment requirement is $1,000 ($2,500 for U.S. Treasury Money Market
Series) and there is no minimum subsequent investment requirement.
Shares of the Fund are sold through the Transfer Agent, without a sales
charge, at the NAV next determined after receipt and acceptance by the Transfer
Agent of a purchase order and payment in proper form [i.e., a check or Federal
Funds wired to State Street Bank and Trust Company (State Street), the Fund's
custodian]. See ``How the Fund Values its Shares.'' When payment is received by
the Transfer Agent prior to 4:30 P.M., New York time, in proper form, a share
purchase order will be entered at the price determined as of 4:30 P.M., on that
day, and the shares will begin to earn dividends on the business day following
such investment. See ``Taxes, Dividends and Distributions.'' If your purchase is
made through an account at Prudential Securities or through Prusec or another
dealer, your dealer will forward a purchase order and payment to the Fund. The
Distributor reserves the right to cancel any purchase order for which payment
has not been received by the third business day following the investment.
Application forms for Prusec and direct accounts with the Transfer Agent
(e.g., non-Prudential Securities accounts) can be obtained from PMFS or Prusec.
If a stock certificate is desired, it must be requested in writing for each
transaction. Certificates are issued only for full shares. Shareholders who hold
their shares through Prudential Securities will not receive stock certificates.
Shareholders cannot utilize Expedited Redemption or Check Redemption or have a
Systematic Withdrawal Plan if they have been issued certificates.
The Fund reserves the right, in its discretion, to reject any purchase order
(including an exchange into the Fund) or to suspend or modify the continuous
offering of its shares. See ``How to Sell Your Shares'' below.
Transactions in Fund shares may be subject to postage and other charges
imposed by your dealer.
Purchases through Prudential Securities
Automatic Investment (Autosweep)
Prudential Securities has advised the Fund that it has automatic investment
procedures (Autosweep) pursuant to which it will make automatic investments of
free credit cash balances (hereinafter referred to as ``Eligible Credit
Balances'') held in a client's brokerage account in shares of the Fund, if the
Fund is your Primary Money Sweep Fund. You may designate the Fund (or certain
other Prudential money market funds) as your Primary Money Sweep Fund. If you do
not designate a Primary Money Sweep Fund, a Primary Money Sweep Fund will be
designated for you, unless you have elected not to have a money market sweep
feature for your account. Prudential Securities' clients who have designated a
fund as their Primary Money Sweep Fund (or for whom a fund has been designated
their Primary Money Sweep Fund) can purchase shares of such fund only through
the automatic investment procedures described herein; no manual purchase orders
will be accepted for such fund. A Prudential Securities client has the option to
change his or her Primary Money Sweep Fund at any time by notifying his or her
Prudential Securities financial adviser.
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Under these procedures, for accounts other than IRAs and Benefit Plans, as
defined below, shares of the Fund will be purchased by Prudential Securities as
follows: in the case of Eligible Credit Balances of $10,000 or more, orders to
purchase shares will be placed on the business day after such Eligible Credit
Balances become available in your account; in the case of Eligible Credit
Balances of $500 up to (but not including) $10,000, orders to purchase shares
will be placed weekly (on Monday or the next business day if Monday is a
holiday) and in the case of Eligible Credit Balances of $1.00 up to (but not
including) $500, orders to purchase shares will be placed monthly on the last
business day of the month. For IRAs and Benefit Plans, as defined below, having
Eligible Credit Balances of $1.00 or more, orders to purchase shares of the Fund
will be placed on the business day after such Eligible Credit Balances become
available in the account. All shares purchased pursuant to these automatic
investment procedures will be issued at the NAV computed on the business day the
order is entered and will begin earning dividends on the next business day.
Purchases through Autosweep are subject to the Fund's minimum initial investment
requirement of $1,000 ($2,500 for U.S. Treasury Money Market Series), which is
waived for certain retirement and employee savings plans and custodial accounts
for the benefit of minors. Accordingly, if you do not meet the minimum initial
investment requirement, your cash will remain uninvested. Prudential Securities
will have the use of, and will retain the benefits of, Eligible Credit Balances
in a client's brokerage account until monies are delivered to the Fund.
(Prudential Securities delivers federal funds on the business day after
settlement). Eligible Credit Balances for purposes of Autosweep are measured as
of the close of business on the previous business day.
For the purposes of Autosweep, ``Benefit Plans'' include (i) employee
benefit plans as defined in Section 3(3) of the Employee Retirement Income
Security Act of 1974 (ERISA) other than governmental plans as defined in Section
3(32) of ERISA and church plans as defined in Section 3(33) of ERISA, (ii)
pension, profit-sharing or other employee benefit plans qualified under Section
401 of the Internal Revenue Code and (iii) deferred compensation and annuity
plans under Section 457 or 403(b)(7) of the Internal Revenue Code. ``IRAs'' are
Individual Retirement Accounts as defined in Section 408(a) of the Internal
Revenue Code.
Manual Investment
Prudential Securities will accept manual purchase orders for Prudential
money market fund shares only for those clients (i) who are purchasing shares of
a Prudential money market fund which is not their Primary Money Sweep Fund or
(ii) who do not have a money market sweep feature in their account.
Prudential Securities clients eligible to make manual purchases, as
described above, are subject to the minimum initial investment of $1,000 ($2,500
for U.S. Treasury Money Market Series) and the minimum subsequent investment of
$100, except that all minimum investment requirements are waived for certain
retirement and employee savings plans and custodial accounts for the benefit of
minors. On the business day after the order is received, Prudential Securities
will place such purchase order for shares of the Fund for settlement that day.
Shares will be issued at the NAV determined on that day and will begin earning
dividends the next business day, which is the second business day after receipt
of the purchase order by Prudential Securities. Prudential Securities will have
the use of, and will retain the benefits of, Eligible Credit Balances in the
client's brokerage account until monies are delivered to the Fund. (Prudential
Securities delivers federal funds on the business day after settlement).
The procedures for Purchases through Prusec, Purchase by Wire, Purchase by
Mail and The Prudential Advantage Account Program remain unchanged.
HOW TO SELL YOUR SHARES
The following paragraph is restated in its entirety.
Redemption of Shares Purchased Through Prudential Securities
Prudential Securities clients for whom Prudential Securities has purchased
shares of the Fund may have these shares redeemed only by instructing their
Prudential Securities financial adviser orally or in writing.
Prudential Securities has advised the Fund that it has established
procedures pursuant to which shares of the Fund held by a Prudential Securities
client having a deficiency in his or her Prudential Securities account will be
redeemed automatically to the extent of that deficiency to the nearest highest
dollar. The amount of the redemption will be the lesser of (a) the total net
asset value of Fund shares held in the client's Prudential Securities account or
(b) the deficiency in the client's Prudential Securities account at the close of
business on the date such deficiency is due. Accordingly, a Prudential
Securities client utilizing this automatic redemption procedure and who wishes
to pay for a securities transaction or satisfy any other debit balance in his or
her account other than through such automatic redemption procedure must do so
prior to the day of settlement for such securities transaction or the date the
debit balance is incurred. In the case of certain Autosweep redemptions, where
Prudential Securities cannot anticipate debits in the brokerage account (e.g.,
checks written against the account), Prudential Securities clients will not be
entitled to dividends declared on the date of redemption; such dividends will be
retained by Prudential Securities generally as an offset for the advance of
funds to such clients.
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TAXES, DIVIDENDS AND DISTRIBUTIONS
Dividends and Distributions
A shareholder generally begins to earn dividends on the first business day
after his or her order becomes effective and continues to earn dividends through
the day on which his or her shares are redeemed. In the case of certain
redemptions, however, Prudential Securities clients will not be entitled to
dividends declared on the date of redemption. See ``HOW TO SELL YOUR SHARES -
Redemption of Shares Purchased Through Prudential Securities.''
Listed below are the names of the Prudential Mutual Funds and the dates of
the prospectuses to which this supplement relates.
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Name of Fund Prospectus Date
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Prudential California Municipal Fund
(California Money Market Series) November 1, 1995
Prudential Government Securities Trust
(Money Market Series) January 29, 1996
(U.S. Treasury Money Market Series) January 29, 1996
Prudential MoneyMart Assets, Inc. March 1, 1996
Prudential Municipal Series Fund
(Connecticut Money Market Series) November 1, 1995
(Massachusetts Money Market Series) November 1, 1995
(New Jersey Money Market Series) November 1, 1995
(New York Money Market Series) November 1, 1995
Prudential Tax-Free Money Fund, Inc. February 29, 1996
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MF960C-4
