<PAGE>
Letter to
Shareholders
May 10, 1994
Dear Shareholder:
Over the past six months, global stock markets posted moderate returns, mainly
on the strength of gains made in non-U.S. markets. Of course, U.S. stocks were
hurt by rising short-term interest rates, but advances in Japan and Europe more
than offset these declines. The dollar's weakness against other major
currencies also helped U.S.-based investors, as currency translations increased
returns. We are pleased to report that the Prudential Global Fund produced
above-average returns in this environment.
The Fund
The Prudential Global Fund seeks long-term growth of capital with income as a
secondary objective from a portfolio of common stocks and debt securities from
countries around the world. As of April 30, 1994, the Fund held 97% of net
assets in stock, with the remainder in cash.
Has the U.S. Bull Market Stalled?
This year's U.S. stock market performance may have raised fears that the
seven-year U.S. bull market might be over, but our view has not yet turned
negative. While performance can never be guaranteed, we believe the downturn is
a normal correction and are heartened by the improved tone and direction of
markets outside the U.S. While the S&P 500 declined by 2.3% during the past
six months, foreign stock markets gained 2.8% according to Morgan Stanley's
Europe Asia and Far East (EAFE) Index.
Restructuring Leads to Buying Opportunities
Despite recent market volatility, our strategy has not changed much in the past
six months. In fact, as market prices fall closer into line with true values,
we are finding attractive buying opportunities. Our broad strategy is to
identify major structural changes in economies around the world and buy stocks
that should benefit from them. Here are several themes that have developed
from that strategy:
- -- Secular Change in Japan. We believe Japan's society and economy are
undergoing major changes. In addition, rising production costs are one of
the challenges facing Japan. Despite the country's slightly gloomy short-
term outlook, we are bullish on Japan's long-term growth. During the six
months ended April 30, we shifted our focus to increase export-oriented
Japanese technology companies, like cellular telephone
-3-
<PAGE>
and computer component manufacturers that should benefit from increasing
worldwide use of high technology, even within Japan.
- -- Economic Growth in the Pacific Rim. Elsewhere in the Pacific Basin, we
focused on Southeast Asia's industrializing nations for their unsurpassed
economic growth. For instance, Singapore's standard of living is fast-
approaching that of the U.S. According to the 1994 Information Please
Almanac, per capital gross domestic product (GDP) in Singapore is $13,900
compared to $19,800 in the U.S.
Overall, Southeast Asian markets also posted outstanding returns for 1993.
For example, the Hong Kong market gained an average of 117% and Singapore's
rose an average of 68%. In the beginning of this year, however, the Fund
was hurt by its overweighted position in the Pacific Rim, as investors sold
stocks en masse when prices were up.
We gradually trimmed positions in Hong Kong in the past six months. There
are few real estate development companies listed on any of the U.S. stock
exchanges, but they make up the majority of the issues traded in Hong Kong.
Last year, these property-related stocks rose as money from China poured
into the Crown Colony. However, these issues were the first to fall when
the market turned down. We used the proceeds from our Hong Kong sales to
add to positions in Korea, including Dong Ah Construction and Samsung
Electronics.
GLOBAL FUND
Geographic Allocation
(As of April 30, 1994*)
(PIE CHART)
*Percent of Net Assets
- -- Restructuring in Europe and Australia. We have also increased our exposure
to Europe. After a protracted recession, we noticed that European
industrial companies are beginning to report better earnings, a positive
sign since many of them produce the raw materials that are used to make
consumer goods. We have also participated in the region's economic recovery
by investing in Australian multinationals with European subsidiaries as well
as natural resource companies that export primarily to Europe. Some of the
Fund's new stocks in these areas include Volvo, the Swedish car maker,
Australia's Western Mining and New Zealand's Fletcher Challenge, a forest
product and paper conglomerate.
- -- Multimedia. Since the U.S. is the world's technology leader, technology
companies comprised the bulk of our U.S. holdings during the market's
downturn this winter. We took the opportunity to add stocks that were
underpriced in our view and that generally have solid long-term prospects.
This included MCI Communications, Microsoft, the world's leader in its
field, and Time Warner.
-4-
<PAGE>
Looking Ahead
Our outlook is generally optimistic. We believe the worst of the global
market's correction should be over soon and will look for companies that appear
inexpensive when the dust settles. The bright spots this year should be in
Japan, Europe and Australia. In addition, we think the U.S. stock market will
produce relatively stable returns for the rest of the year. We will generally
avoid investing in Hong Kong, although the rest of Southeast Asia should be
strong. As far as sectors are concerned, we are focusing on high technology,
consumer durables and natural resources.
As always, we appreciate having you as a shareholder of the Prudential Global
Fund and remain committed to managing it for your long-term gain.
Sincerely,
Lawrence C. McQuade
President
Daniel J. Duane
Portfolio Manager
-5-
<PAGE>
PRUDENTIAL GLOBAL FUND, INC. Portfolio of Investments
April 30, 1994 (Unaudited)
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
LONG-TERM INVESTMENTS--97.4%
Common Stocks--88.4%
Australia--5.0%
321,000 Brambles Industries, Ltd. $ 3,311,219
........................
(Business & public
services)
403,000 Broken Hill Proprietary
Company, Ltd.* 4,900,852
(Energy sources)
1,760,539 BTR Nylex, Ltd.* ......... 3,841,165
(Industrial components)
760,051 Coca Cola Amatil, Ltd. ... 4,621,461
(Food & household
products)
800,000 Western Mining Corp. 4,005,951
Holdings, Ltd. ------------
(Non-ferrous metals)
20,680,648
------------
Belgium--0.9%
4,400 Bekaert S.A., N.V.* ...... 3,431,604
(Industrial components)
2,175 Krediet Bank N.V.* ....... 446,396
(Banking) ------------
3,878,000
------------
Federal Republic Of Germany--3.8%
4,700 Asko Deutsch Kaufhaus AG* 2,945,125
........................
(Merchandising)
20,000 BASF AG .................. 3,975,853
(Chemicals)
4,990 Bilfinger & Berger Bau AG* 2,557,507
........................
(Construction & housing)
1,105 Commerzbank AG (New)* .... 232,140
(Banking)
11,050 Commerzbank AG (Old)* .... 2,394,778
(Banking)
13,000 Preussag AG .............. 3,751,283
(Multi-industry) ------------
15,856,686
------------
Finland--0.8%
162,000 Kymmene Corp. ............ $ 3,321,807
(Forest products & paper) ------------
France--4.6%
24,000 Alcatel Alsthom* ......... 2,899,088
(Telecommunications)
7,000 Guyenne et Gascogne* ..... 1,975,047
(Merchandising)
39,000 Imetal S.A.* ............. 4,263,986
(Miscellaneous materials
& commodities)
3,850 La Farge Coppee (New) .... 311,626
(Building materials)
44,450 La Farge Coppee (Old) .... 3,597,856
(Building materials)
14,915 Plastic Omnium* .......... 1,962,102
(Automotive)
17,300 Valeo* ................... 4,240,532
(Automotive) ------------
19,250,237
------------
Hong Kong--5.0%
5,500,000 CDL Hotels International* 2,100,345
........................
(Real estate)
1,804,000 Giordano Holdings, Ltd.* 811,519
........................
(Merchandising)
1,600,000 Guoco Group, Ltd. ........ 7,404,627
(Financial services)
8,990,000 Hung Hing Printing Group, 2,473,005
Ltd. ...................
(General manufacturing)
1,312,000 Hutchison Whampoa, Ltd.* 5,392,432
........................
(Multi-industry)
877,000 New World Development Co., 2,690,636
Ltd. ------------
(Real estate)
20,872,564
------------
</TABLE>
-6- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
Indonesia--0.6%
867,000 Kabel Metal Industries, $ 2,422,253
Ltd.* .................. ------------
(Wire & cable)
Japan--18.1%
21,000 Acom Co., Ltd. ........... 1,105,916
(Financial services)
228,000 Aiwa Co. ................. 5,835,220
(Consumer electronics)
7,150 Autobacs Seven Co. ....... 914,952
(Merchandising)
53,000 Higashi Nihon House* ..... 2,811,989
(Housing)
32,000 I O Data Device, Inc.* ... 5,701,349
(Electronic components)
31,200 Japan Associates Finance 4,023,231
Co. ....................
(Financial services)
350,000 Kamigumi Co., Ltd. ....... 4,203,170
(Transportation &
warehousing)
46,200 Keyence Corp. ............ 4,911,507
(Electronic components)
67,000 Kyocera Corp. ............ 4,220,888
(Public works -
electronics)
235,000 Mitsumi Electric Co., Ltd. 4,626,440
........................
(Electronic components)
62,700 Mr. Max Corp. ............ 1,709,607
(Merchandising)
110,000 Murata Manufacturing Co., 4,764,248
Ltd. ...................
(Electronic components)
88,400 Nichiei Co. .............. 7,874,988
(Financial services)
73,200 Nissen Co., Ltd. ......... 2,882,173
(Merchandising)
33,750 Promise Co., Ltd. ........ 2,169,382
(Financial services)
103,000 Rohm Co., Ltd. ........... 4,106,211
(Financial services)
70,350 Sony Corp. ............... $ 4,501,181
(Consumer goods)
265,000 Suzuki Motor Co., Ltd. ... 3,521,508
(Automotive)
161,000 Tokyo Electronic Co., Ltd. 5,118,908
........................ ------------
(Electronic components)
75,002,868
------------
Korea--3.4%
5,459 Daewoo Securities Co., 208,168
Ltd.* ..................
(Financial services)
8,200 Daishin Securities Co.* 187,817
........................
(Financial services)
146,933 Dong-Ah Construction Co.* 6,367,036
........................
(Housing)
60,000 Kun Young Construction 1,047,419
Corp.* .................
(Housing)
61,922 Samsung Electronics ...... 6,117,835
(Electronics) ------------
13,928,275
------------
Malaysia--7.5%
300,000 Aokam Perdana Berhad ..... 2,912,947
(Forest products & paper)
533,000 Arab-Malaysian Finance 1,970,609
Berhad* .
(Banking)
79,000 Arab Malaysian Merchant
Bank Berhad 275,852
(Banking)
800,000 Granite Industries Berhad* 2,166,038
........................
(Leisure)
310,000 Hong Leong Industries 1,609,217
Berhad .................
(Building & related
industries)
1,881,000 Pilecon Engineering Berhad 3,217,306
........................
(Machinery & engineering)
627,000 Pilecon Engineering Berhad
(Rights) . 99,048
(Machinery & engineering)
</TABLE>
-7- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
Malaysia--(cont'd)
2,882,000 Renong Berhad ............ $ 3,917,719
(Infrastructure)
1,091,000 Resorts World* ........... 6,111,588
(Leisure & tourism)
1,052,000 Technology Resources
Industries Berhad* ..... 4,518,056
(Data processing &
reproduction)
1,350,000 Time Engineering Berhad* 4,260,185
........................ ------------
(Telecommunications)
31,058,565
------------
Mexico--3.7%
495,000 Apasco, S.A.* ............ 4,241,775
(Building materials)
1,380,000 Cifra, S.A. de C.V. ...... 3,801,071
(Merchandising)
750,000 Fomento Economico Mexicano,
S.A. 3,488,905
de C.V.* ...............
(Merchandising)
Grupo Financiero Banamex
Accival,
S.A. de C.V.
540,000 Class C (Old)*............. 3,660,596
15,500 Class L (New) ............ 105,073
(Banking) ------------
15,297,420
------------
Netherlands--1.3%
223,700 Royal Boskalis Westminster 5,293,251
N.V.* . ------------
(Construction & housing)
New Zealand--0.9%
1,963,600 Fletcher Challenge, Ltd. 3,818,534
........................ ------------
(Forest products & paper)
Singapore--3.8%
708,000 Kim Eng Holdings ......... 1,256,804
(Financial services)
935,250 Sembawang Maritime, Ltd. 4,240,746
........................
(Transportation)
415,000 Sembawang Shipyards, Ltd. $ 3,336,442
........................
(Machinery & engineering)
540,000 Singapore Airlines, Ltd. 4,237,201
........................
(Transportation)
1,500,000 Wing Tai Holdings ........ 2,585,541
(Multi-industry) ------------
15,656,734
------------
Spain--2.3%
203,962 Centros Commerciale 2,919,145
(Pryca)* ...............
(Merchandising)
170,200 Dragados y Construcciones* 2,947,104
........................
(Construction & housing)
24,983 Vallehermoso (New)* ...... 481,689
(Real estate)
169,900 Vallehermoso (Old) ....... 3,338,784
(Real estate) ------------
9,686,722
------------
Sweden--4.0%
156,000 Astra B Free* ............ 3,124,472
(Health & personal care)
114,000 Hennes & Mauritz B Free* 5,641,016
........................
(Merchandising)
89,100 Missouri Och Domsjo AB* 3,499,126
........................
(Forest products & paper)
46,000 Volvo AB ................. 4,281,422
(Automotive) ------------
16,546,036
------------
Thailand--0.6%
110,702 Land & House Public Co., 2,523,548
Ltd. ................... ------------
(Housing)
United Kingdom--7.5%
290,000 Barclays Bank PLC ........ 2,230,938
(Banking)
160,000 British Land Co. PLC ..... 976,452
(Real estate)
</TABLE>
-8- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
United Kingdom--(cont'd)
290,000 Carlton Communications PLC $ 4,005,149
........................
(Television &
communication equipment)
220,000 Great Portland Estates PLC 726,281
........................
(Real estate)
355,000 Guest Keen & Nettlefolds 3,341,145
........................
(Automotive)
490,000 J. Sainsbury PLC ......... 2,767,774
(Merchandising)
100,000 MEPC PLC ................. 736,730
(Real estate)
350,000 PowerGen PLC* ............ 2,538,805
(Utilities - electric &
gas)
235,000 S.G. Warburg Group PLC ... 2,572,954
(Financial services)
522,500 Siebe PLC ................ 4,901,775
(Machinery & engineering)
175,000 Slough Estates PLC ....... 675,778
(Real estate)
672,230 Vodafone Group ........... 5,532,778
(Telecommunications) ------------
31,006,559
------------
United States--14.6%
240,400 Adaptec, Inc. ............ 3,816,350
(Electronics/semiconductors)
93,000 Arvind Mills, Ltd. (ADR)* 511,500
........................
(Textiles)
134,300 Cirrus Logic Corp.* ...... 4,834,800
(Electronics/semiconductors)
202,500 Electronic Arts, Inc.* ... 4,353,750
(Consumer goods)
199,625 Mattel, Inc. ............. 5,015,578
(Recreation & other
consumer goods)
173,100 MCI Communications Corp. $ 3,948,844
........................
(Telecommunications)
51,200 Microsoft Corp.* ......... 4,742,400
(Computer services)
56,800 Mobil Corp. .............. 4,444,600
(Energy sources)
104,100 Mohawk Industries, Inc.* 2,849,737
........................
(Appliances & household
durables)
105,200 Motorola, Inc. ........... 4,694,550
(Television &
electronics)
180,500 Norwest Corp. ............ 4,647,875
(Banking)
136,000 Oracle Systems Corp. ..... 4,080,000
(Business & public
services)
170,000 Silicon Graphics, Inc.* 4,271,250
........................
(Electronic components)
139,800 Southern Pacific Rail 3,075,600
Corp.* .................
(Transportation)
89,600 Synoptics Communications, 1,803,200
Inc.* .
(Electronic components)
100,000 Time Warner, Inc. ........ 3,550,000
(Broadcasting & ------------
publishing)
60,640,034
------------
Total common stocks
(cost US$311,292,105).... 366,740,741
------------
Preferred Stocks--4.8%
Federal Republic Of Germany--0.6%
1,600 Krones ................... 2,752,792
(Machinery & engineering) ------------
Finland--2.7%
132,200 Nokia Corp. .............. 11,237,326
(Television & ------------
electronics)
</TABLE>
-9- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
Korea--1.5%
72,100 Daewoo Securities Co., $ 2,436,957
Ltd.* ..................
(Financial services)
45,961 Daishin Securities Co.* 927,528
........................
(Financial services)
63,700 Mando Machinery Corp. .... 2,720,874
(Automotive Parts) ------------
6,085,359
------------
Total preferred stocks
(cost US$10,716,018)..... 20,075,477
------------
Warrants*--2.5%
Federal Republic Of Germany--0.1%
Commerzbank AG
276 Warrants expiring July '05 199,939
@ DM300.................. ------------
(Banking)
France
La Farge Coppee
3,500 Warrants expiring April '96 41,352
@ FF460.................. ------------
(Building materials & components)
Japan--1.1%
Autobacs Seven Co.
50 Warrants expiring Feb. '95 240,000
@ (YEN)8,089 ...........
(Merchandising)
Autobacs Seven Co.
400 Warrants expiring Mar. '96 1,840,000
@ (YEN)8,231.10 ........
(Merchandising)
Kamigumi Co., Ltd.
1,000 Warrants expiring Sept. '96 298,219
@ (YEN)902 .............
(Transportation &
warehousing)
Mr. Max Corp.
1,900 Warrants expiring July '95 $ 556,294
@ (YEN)2,194.40 ........
(Merchandising)
Nissen Co., Ltd.
1,136 Warrants expiring Nov. '96 1,512,152
@ (YEN)1,681 ........... ------------
(Merchandising)
4,446,665
------------
Singapore--1.3%
Kim Eng Holdings
327,400 Warrants expiring Feb. '97 284,275
@ SGD2.00................
(Financial services)
United Overseas Bank, Ltd.
1,076,000 Warrants expiring Nov. '94 5,121,173
@ SGD3.16 .............. ------------
(Banking)
5,405,448
------------
Switzerland
Swiss Reinsurances
46,000 Warrants expiring Jan. '96 110,589
@ CMF800................. ------------
(Insurance)
Total warrants
(cost US$4,077,967)...... 10,203,993
------------
Convertible Loan Stocks--1.7%
Malaysia--1.4%
2,400,000 IJM Corp. Berhad ......... 5,355,341
(Construction & housing)
95,000 Time Engineering Berhad* 282,052
........................ ------------
(Telecommunications)
5,637,393
------------
Singapore--0.2%
270,400 Kim Eng Holdings* ........ 155,652
(Financial services)
</TABLE>
-10- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
<TABLE>
<CAPTION>
Shares Description Value
(Note 1)
<C> <S> <C>
Singapore--(cont'd)
524,000 Sembawang Maritime, Ltd. $ 775,147
........................ ------------
(Transportation)
930,799
------------
United Kingdom--0.1%
71,000 Guest Keen & Nettlefolds 403,195
........................ ------------
(Automotive)
Total convertible loan
stocks
(cost US$3,001,429)...... 6,971,387
------------
Total long-term investments
(cost US$329,087,519).... 403,991,598
------------
Total Investments--97.4%
(cost US$329,087,519; Note 403,991,598
4).......................
Other assets in excess of
liabilities--2.6%........ 10,828,815
------------
Net Assets--100%........... $414,820,413
------------
------------
</TABLE>
- ---------------
*Non-income producing security.
ADR--American Depository Receipt
-11- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
Assets
April 30, 1994
--------------
<S>
<C>
Investments, at value (cost
$329,087,519)................................................. $ 403,991,598
Foreign currency, at value (cost
$8,003,552).............................................. 8,165,205
Cash..........................................................................
............ 1,554,670
Receivable for investments
sold........................................................... 10,165,442
Receivable for Fund shares
sold........................................................... 2,919,066
Dividends and interest
receivable.........................................................
980,706
Deferred expenses and other
assets........................................................ 16,233
--------------
Total
assets........................................................................
427,792,920
--------------
Liabilities
Payable for investments
purchased.........................................................
11,427,777
Payable for Fund shares
reacquired........................................................
645,219
Distribution fee
payable..................................................................
277,250
Management fee
payable....................................................................
248,157
Withholding taxes
payable.................................................................
211,970
Accrued
expenses......................................................................
.... 162,134
--------------
Total
liabilities...................................................................
12,972,507
--------------
Net
Assets........................................................................
........ $ 414,820,413
--------------
--------------
Net assets were comprised of:
Common stock, at
par.................................................................... $
302,198
Paid-in capital in excess of
par........................................................ 335,404,357
--------------
335,706,555
Undistributed net investment
income..................................................... 1,573,555
Accumulated net realized gain on investment and foreign currency
transactions........... 2,622,489
Net unrealized appreciation on investments and foreign
currencies....................... 74,917,814
--------------
Net assets, April 30,
1994.............................................................. $
414,820,413
--------------
--------------
Class A:
Net asset value and redemption price per share
($59,205,525 / 4,234,909 shares of common stock issued and
outstanding)............... $13.98
Maximum sales charge (5.25% of offering
price).......................................... 0.77
--------------
Maximum offering price to
public........................................................ $14.75
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($355,614,888 / 25,984,923 shares of common stock issued and
outstanding)............. $13.69
--------------
--------------
</TABLE>
See Notes to Financial Statements.
-12-
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
April 30,
Net Investment Income 1994
-----------
<S> <C>
Income
Dividends (net of foreign
withholding taxes of $230,360)... $ 1,894,092
Interest (net of foreign
withholding taxes of $4,434)..... 163,579
-----------
Total income..................... 2,057,671
-----------
Expenses
Distribution fee--Class A.......... 61,734
Distribution fee--Class B.......... 1,454,167
Management fee..................... 1,371,761
Transfer agent's fees and
expenses........................... 325,000
Custodian's fees and expenses...... 259,000
Directors' fees.................... 44,000
Audit fee.......................... 25,000
Registration fees.................. 37,000
Legal fees......................... 20,000
Insurance expense.................. 3,500
Miscellaneous...................... 16,286
-----------
Total operating expenses......... 3,617,448
-----------
Net investment loss.................. (1,559,777)
-----------
Realized and Unrealized Gain
on Investments and Foreign Currency
Transactions
Net realized gain on:
Investment transactions............ 14,122,918
Foreign currency transactions...... 282,738
-----------
14,405,656
-----------
Net change in unrealized appreciation
on:
Investments........................ 3,677,581
Foreign currencies................. 68,487
-----------
3,746,068
-----------
Net gain on investments and foreign
currencies......................... 18,151,724
-----------
Net Increase in Net Assets
Resulting from Operations............ $16,591,947
-----------
-----------
</TABLE>
PRUDENTIAL GLOBAL FUND, INC.
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) in April 30, October 31,
Net Assets 1994 1993
------------- -------------
<S> <C> <C>
Operations
Net investment loss... $ (1,559,777) $ (669,977)
Net realized gain on
investment and
foreign currency
transactions........ 14,405,656 12,160,987
Net change in
unrealized
appreciation of
investments and
foreign
currencies.......... 3,746,068 55,989,764
------------- -------------
Net increase in net
assets resulting
from operations..... 16,591,947 67,480,774
------------- -------------
Net equalization
credits............... 99,883 134,235
------------- -------------
Fund share transactions
(Note 5)
Net proceeds from
shares subscribed... 215,094,764 153,827,341
Cost of shares
reacquired............ (110,120,408) (120,699,004)
------------- -------------
Net increase in net
assets from Fund
share
transactions........ 104,974,356 33,128,337
------------- -------------
Total increase.......... 121,666,186 100,743,346
Net Assets
Beginning of period..... 293,154,227 192,410,881
------------- -------------
End of period........... $ 414,820,413 $ 293,154,227
------------- -------------
------------- -------------
</TABLE>
See Notes to Financial Statements.
-13-
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
Notes to Financial Statements
(Unaudited)
Prudential Global Fund, Inc. (the ``Fund'') is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The investment objective of the Fund is to seek long-term capital
growth, with income as a secondary objective, by investing in a diversified
portfolio of securities consisting of marketable securities of U.S. and non-U.S.
issuers.
Note 1. Accounting The following is a summary
Policies of significant accounting policies followed by the
Fund in the preparation of its financial
statements.
Securities Valuation: Securities traded on an exchange (whether domestic or
foreign) are valued at the last reported sales price on the primary exchange on
which they are traded. Securities traded in the over-the-counter market
(including securities listed on exchanges for which a last sales price is not
available) are valued at the average of the last reported bid and asked prices.
Short-term securities which mature in more than 60 days are valued based upon
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost which approximates market value.
In connection with transactions in repurchase agreements with U.S. financial
institutions, it is the Fund's policy that its custodian or designated
subcustodians, as the case may be under triparty repurchase agreements, take
possession of the underlying collateral securities, the value of which exceeds
the principal amount of the repurchase transaction including accrued interest.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
Foreign Currency Translation: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) market value of investment securities, other assets and liabilities--at
the closing daily rate of exchange as reported by a major bank;
(ii) purchases and sales of investment securities, income and expenses--at
the rate of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange
rates and market values at the close of the fiscal year, the Fund does not
isolate that portion of the results of operations arising as a result of changes
in the foreign exchange rates from the fluctuations arising from changes in the
market prices of securities held at fiscal year end. Similarly, the Fund does
not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of long-term portfolio
securities sold during the fiscal year.
Net realized gains on foreign currency transactions of $282,738 represent net
foreign exchange gains or losses from sales and maturities of short-term
securities, holding of foreign currencies, currency gains or losses realized
between the trade and settlement dates on security transactions, and the
difference between the amounts of dividends, interest and foreign taxes recorded
on the Fund's books and the U.S. dollar equivalent amounts actually received or
paid. Net currency gains and losses from valuing foreign currency denominated
assets and liabilities (other than investments) at year end exchange rates are
reflected as a component of unrealized appreciation on foreign currencies.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of domestic origin as a result of,
among other factors, the possibility of political and economic instability and
the level of governmental supervision and regulation of foreign securities
markets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses from investment and
currency transactions are calculated on the identified cost basis. Dividend
income is recorded on the ex-dividend date, and interest income is recorded on
an accrual basis.
Net investment income (other than distribution fees) and unrealized and
realized gains or losses are allocated daily to each class of shares of the Fund
based upon the relative proportion of net assets of each class at the beginning
of the day.
Equalization: The Fund follows the accounting practice known as equalization by
which a portion of the proceeds from sales and costs of reacquisitions of Fund
shares, equivalent on a per share basis to the amount of distributable net
investment income on the date of the transaction, is credited or charged to
undistributed net investment income. As a result, undistributed net investment
income per share is unaffected by sales or reacquisitions of the Fund's shares.
-14-
<PAGE>
<PAGE>
Reclassification of Capital Accounts: The Fund accounts and reports for
distributions to shareholders in accordance with the A.I.C.P.A.'s Statement of
Position 93-2: Determination, Disclosure, and Financial Statement Presentation
of Income, Capital Gain, and Return of Capital Distributions by Investment
Companies. As a result of this statement, the Fund changed the classification of
distributions to shareholders to better disclose the differences between
financial statement amounts and distributions determined in accordance with
income tax regulations. During the period ended April 30, 1994, the Fund
reclassified $282,738 of foreign currency gains to undistributed net investment
income from accumulated net realized gains on investment and foreign currency
transactions. Net investment income, net realized gains and net assets were not
affected by this change.
Dividends and Distributions: The Fund expects to pay dividends of net investment
income and distributions of net realized capital and currency gains, if any,
annually. Dividends and distributions are recorded on the ex-dividend date.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments for foreign currency transactions.
Federal Income Taxes: It is the Fund's policy to continue to meet the
requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its taxable income to shareholders.
Therefore, no federal income tax provision is required.
Withholding taxes on foreign dividends and interest have been provided for in
accordance with the Fund's understanding of the applicable country's tax rules
and rates.
Note 2. Agreements The Fund has a management agreement with
Prudential Mutual Fund Management, Inc. (``PMF'').
Pursuant to this agreement, PMF has responsibility for all investment advisory
services and supervises the subadviser's performance of such services. PMF has
entered into a subadvisory agreement with The Prudential Investment Corporation
(``PIC''); PIC furnishes investment advisory services in connection with the
management of the Fund. PMF pays for the cost of the subadviser's services, the
compensation of officers of the Fund, occupancy and certain clerical and
bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of .75 of 1% of the average daily net assets of the Fund.
The Fund has distribution agreements with Prudential Mutual Fund
Distributors, Inc. (``PMFD''), which acts as the distributor of the Class A
shares of the Fund, and with Prudential Securities Incorporated (``PSI''), which
acts as distributor of the Class B shares of the Fund (collectively the
``Distributors''). To reimburse the Distributors for their expenses incurred in
distributing and servicing the Fund's Class A and B shares, the Fund, pursuant
to plans of distribution, pays the Distributors a reimbursement, accrued daily
and payable monthly.
Pursuant to the Class A plan, the Fund reimburses PMFD for its expenses with
respect to Class A shares at an annual rate of up to .30 of 1% of the average
daily net assets of the Class A shares. Such expenses under the Class A Plan
were .20 of 1% of the average daily net assets of the Class A shares for the two
months ended December 31, 1993 and .25 of 1% of the average daily net assets of
the Class A shares thereafter. PMFD pays various broker-dealers, including PSI
and Pruco Securities Corporation (``Prusec''), affiliated broker-dealers, for
account servicing fees and other expenses incurred by such broker-dealers.
Pursuant to the Class B plan, the Fund reimburses PSI for its
distribution-related expenses with respect to the Class B shares at an annual
rate of up to .75 of 1% of the average daily net assets up to the level of
average daily net assets as of February 26, 1986, plus 1% of the average daily
net assets in excess of such level.
The Class B distribution expenses include commission credits for payments of
commissions and account servicing fees to financial advisers and an allocation
for overhead and other distribution-related expenses, interest and/or carrying
charges, the cost of printing and mailing prospectuses to potential investors
and of advertising incurred in connection with the distribution of shares.
The Distributors recover the distribution expenses and account servicing fees
incurred through the receipt of reimbursement payments from the Fund under the
plans and receipt of initial sales charges (Class A only) and contingent
deferred sales charges (Class B only) from shareholders.
PMFD has advised the Fund that it has received approximately $365,800 in
front-end sales charges resulting from sales of Class A shares during the six
months ended April 30, 1994. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons.
With respect to the Class B Plan, at any given time, the amount of expenses
incurred by PSI in distributing the Fund's shares and not recovered through the
imposition of contingent deferred sales charges in connection with certain
-15-
<PAGE>
<PAGE>
redemptions of shares may exceed the total payments made by the Fund pursuant to
the Class B Plan. PSI has advised the Fund that for the six months ended April
30, 1994, that it received approximately $197,100 in contingent deferred sales
charges imposed upon certain redemptions by investors. PSI, as distributor, has
also advised the Fund that at April 30, 1994, the amount of distribution
expenses incurred by PSI and not yet reimbursed by the Fund or recovered through
contingent deferred sales charges approximated $13,420,100. This amount may be
recovered through future payments under the Class B Plan or contingent deferred
sales charges.
In the event of termination or noncontinuation of the Class B Plan, the Fund
would not be contractually obligated to pay PSI, as distributor, for any
expenses not previously reimbursed or recovered through contingent deferred
sales charges.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are indirect,
wholly-owned subsidiaries of The Prudential Insurance Company of America.
Note 3. Other Prudential Mutual Fund Ser-
Transactions vices, Inc. (``PMFS''), a
With Affiliates wholly owned subsidiary of PMF, serves as the
Fund's transfer agent and during the six months
ended April 30, 1994, the Fund incurred fees of approximately $294,000 for the
services of PMFS. As of April 30, 1994, approximately $74,000 of such fees were
due to PMFS. Transfer agent fees and expenses in the Statement of Operations
include certain out-of-pocket expenses paid to non-affiliates.
For the six months ended April 30, 1994, PSI and/or its foreign affiliates
earned approximately $2,200 in brokerage commissions from portfolio transactions
executed on behalf of the Fund.
Note 4. Portfolio Purchases and sales of invest-
Securities ment securities, other than short-term
investments, for the six months ended April 30,
1994 were $209,544,552 and $100,315,178, respectively.
The United States federal income tax basis of the Fund's investments is
substantially the same as for financial reporting purposes and, accordingly, as
of April 30, 1994 net unrealized appreciation for federal income tax purposes
was $74,904,079 (gross unrealized appreciation--$89,953,225; gross unrealized
depreciation--$15,049,146).
For federal income tax purposes, the Fund had a capital loss carryforward as
of October 31, 1993 of approximately $11,527,100 of which $1,370,900 expires in
1998 and $6,017,600 expires in 1999 and $4,138,600 expires in 2000. Accordingly,
no capital gains distribution is expected to be paid to shareholders until net
gains have been realized in excess of such carryforward.
Note 5. Capital The Fund offers both Class A and Class B shares.
Class A shares are sold with a front-end sales
charge of up to 5.25%. Class B shares are sold with a contingent deferred sales
charge which declines from 5% to zero depending on the period of time the shares
are held. Both classes of shares have equal rights as to earnings, assets and
voting privileges except that each class bears different distribution expenses
and has exclusive voting rights with respect to its distribution plan. There are
500 million shares of common stock, $.01 par value per share, divided into two
classes, designated Class A and Class B common stock, each of which consists of
250 million authorized shares.
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- ------------------------------ ---------- ------------
<S> <C> <C>
Six months ended April 30,
1994:
Shares sold................... 4,556,049 $ 63,321,604
Shares reacquired............. (3,511,864) (48,888,587)
---------- ------------
Net increase in shares
outstanding................. 1,044,185 $ 14,433,017
---------- ------------
---------- ------------
Year ended October 31, 1993:
Shares sold................... 7,605,778 $ 81,814,374
Shares reacquired............. (5,873,417) (61,680,363)
---------- ------------
Net increase in shares
outstanding................. 1,732,361 $ 20,134,011
---------- ------------
---------- ------------
Class B
- ------------------------------
Six months ended April 30,
1994:
Shares sold................... 11,085,047 $151,773,160
Shares reacquired............. (4,501,660) (61,231,821)
---------- ------------
Net increase in shares
outstanding................. 6,583,387 $ 90,541,339
---------- ------------
---------- ------------
Year ended October 31, 1993:
Shares sold................... 6,320,592 $ 72,012,967
Shares reacquired............. (5,752,085) (59,018,641)
---------- ------------
Net increase in shares
outstanding................. 568,507 $ 12,994,326
---------- ------------
---------- ------------
</TABLE>
-16-
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
Financial Highlights
(Unaudited)
<TABLE>
<CAPTION>
Class A
- --------------------------------------------------------- Class
B
January 22, ----------------------------------
Six Months
1990@ Six Months Year Ended October
Ended Year Ended October 31,
through Ended 31,
PER SHARE OPERATING April 30, -----------------------------
October 31, April 30, --------------------
PERFORMANCE (1): 1994 1993 1992 1991
1990 1994 1993 1992
<S> <C> <C> <C> <C> <C>
<C> <C> <C>
---------- ------- ------- -------
- ------------ ---------- -------- --------
Net asset value, beginning of
period..................... $ 13.17 $ 9.58 $ 10.08 $ 9.19
$10.38 $ 12.94 $ 9.47 $ 10.05
---------- ------- ------- -------
- ------ ---------- -------- --------
Income from investment
operations
Net investment income
(loss)..................... (.02) .02 .03 .07
.12 (.06) (.04) (.05)
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions............... .83 3.57 (.53) 1.02
(1.31) .81 3.51 (.53)
---------- ------- ------- -------
- ------ ---------- -------- --------
Total from investment
operations............... .81 3.59 (.50) 1.09
(1.19) .75 3.47 (.58)
Less distributions
Dividends from net investment
income..................... -- -- -- (.16)
- -- -- -- --
Distributions paid to
shareholders from net
realized gains on
investment and foreign
currency transactions...... -- -- -- (.04)
- -- -- -- --
- ------
---------- ------- ------- -------
---------- -------- --------
Total distributions........ -- -- -- (.20)
- -- -- -- --
- ------
---------- ------- ------- -------
---------- -------- --------
Net asset value, end of
period..................... $ 13.98 $ 13.17 $ 9.58 $ 10.08
$ 9.19 $ 13.69 $ 12.94 $ 9.47
---------- ------- ------- -------
- ------ ---------- -------- --------
---------- ------- ------- -------
- ------ ---------- -------- --------
TOTAL RETURN#:............... 6.15% 37.47% (4.96)% 12.11%
(11.46)% 5.80% 36.64% (5.77)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)...................... $ 59,205 $42,021 $13,973 $14,154
$8,727 $ 355,615 $251,133 $178,438
Average net assets (000)..... $ 52,804 $21,409 $14,758 $10,593
$7,151 $ 316,030 $183,741 $210,464
Ratios to average net assets:
Expenses, including
distribution fees........ 1.38%* 1.56% 1.71% 1.72%
1.57%* 2.08%* 2.24% 2.40%
Expenses, excluding
distribution fees........ 1.15%* 1.36% 1.51% 1.52%
1.37%* 1.15%* 1.36% 1.51%
Net investment
income/loss................ (0.26)%* 0.20% 0.22% 0.65%
1.61%* (0.95)%* (0.39)% (0.47)%
Portfolio turnover rate...... 28% 69% 58% 126%
35% 28% 69% 58%
- ---------------
<CAPTION>
PER SHARE OPERATING
PERFORMANCE (1): 1991 1990 1989
<S> <C> <C> <C>
-------- -------- --------
Net asset value, beginning of
period..................... $ 9.14 $ 10.46 $ 10.09
-------- -------- --------
Income from investment
operations
Net investment income
(loss)..................... -- .05 .15
Net realized and unrealized
gain (loss) on investment
and foreign currency
transactions............... 1.02 (1.10) .53
-------- -------- --------
Total from investment
operations............... 1.02 (1.05) .68
Less distributions
Dividends from net investment
income..................... (.07) (.18) (.19)
Distributions paid to
shareholders from net
realized gains on
investment and foreign
currency transactions...... (.04) (.09) (.12)
-------- -------- --------
Total distributions........ (.11) (.27) (.31)
-------- -------- --------
Net asset value, end of
period..................... $ 10.05 $ 9.14 $ 10.46
-------- -------- --------
-------- -------- --------
TOTAL RETURN#:............... 11.29% (10.43)% 6.92%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)...................... $249,582 $261,555 $385,578
Average net assets (000)..... $253,866 $328,467 $448,737
Ratios to average net assets:
Expenses, including
distribution fees........ 2.44% 2.23% 1.82%
Expenses, excluding
distribution fees........ 1.53% 1.37% 1.34%
Net investment
income/loss................ (0.01)% 0.51% 1.45%
Portfolio turnover rate...... 126% 35% 60%
</TABLE>
- ---------------
* Annualized.
@ Commencement of offering of Class A shares.
(1) Based on average shares outstanding, by class.
# Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase
of shares on the first day and a sale on the last day of each period
reported and includes reinvestment of
dividends and distributions. Total returns for periods of less than a full
year are not annualized.
See Notes to Financial Statements.
-17-
