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Prudential GNMA Fund, Inc.
Supplement dated May 18, 1995
to Prospectus dated March 2, 1995
HOW THE FUND INVESTS
Investment Objective and Policies
The Board of Directors of Prudential GNMA Fund, Inc. (the Fund) recently
approved for submission to shareholders a proposal to change the Fund's name to
Prudential Mortgage Income Fund, Inc. as well as a proposal to modify the Fund's
investment policies to increase the Fund's ability to invest in non-agency
mortgage instruments. A proxy statement will be mailed to shareholders in June.
The shareholder meeting is scheduled to occur on August 18, 1995.
HOW THE FUND IS MANAGED
Manager
Effective May 1995, Barbara L. Kenworthy, a managing director and senior
portfolio manager of Prudential Investment Advisors, a unit of The Prudential
Investment Corporation (PIC), has been named portfolio manager of the Fund. She
is responsible for the day-to-day management of the portfolio. Ms. Kenworthy
joined PIC in July 1994, having previously been employed by The Dreyfus
Corporation (from June 1985 to June 1994) where she served as president and
portfolio manager for several Dreyfus fixed-income funds. Ms. Kenworthy also
serves as the portfolio manager of other investment companies advised by PIC.
MF 102C-1
