(PICTURE)
SEMI
ANNUAL
REPORT
April 30, 1995
Prudential
Global
Fund, Inc.
(LOGO)
<PAGE>
Prudential Global Fund, Inc.
Performance At A Glance.
(PICTURE)
The past six months have been difficult for global investors,
as negative economic developments hurt international markets.
The Prudential Global Fund's total return declined 4.9% over
the last six months, and its performance for the past year
has been relatively flat. The Fund's six and 12-month total
returns have been below that of the average global fund,
as measured by Lipper Analytical Services, Inc. More recently,
global fund returns have improved as investor confidence in
foreign markets appeared to rise.
<TABLE>
<CAPTION>
Six One Five Ten Since
Months Year Years Years Inception2
<C> <S> <C> <C> <C> <C> <C>
Cumulative
Total Class A -4.9% 1.3% 52.3% N/A 39.9%
Returns1 Class B -5.2 0.6 46.9 228.2 275.5
As of 4/30/95 Class C -5.2 N/A N/A N/A -1.8
*Lipper Global Fund Avg -2.6 1.5 50.9 297.0 314.9
</TABLE>
<TABLE>
<CAPTION>
One Five Ten Since
Year Years Years Inception2
<C> <C> <C> <C> <C> <C>
Average
Annual
Total Class A -5.9% 5.9% N/A 4.7%
Returns1 Class B -6.7 6.0 12.1 12.5
As of 3/31/95 Class C N/A N/A N/A -2.4
</TABLE>
Past performance is not a guarantee of future results. Investment return and
principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
1Source: Prudential Mutual Fund Management, Inc. and Lipper Analytical
Services, Inc. The cumulative total returns do not take into account
sales charges.
The Average Annual Total Returns do take into account applicable sales
charges. The Fund charges a maximum front end sales load of 5% for Class
A shares. Class B shares are subject to a declining contingent deferred
sales charge (CDSC) of 5%, 4%, 3%, 2%, 1% and 1%, for six years. Class C
shares have a 1% CDSC for one year. Class B shares will automatically
convert to Class A shares on a quarterly basis, after approximately seven
years.
2Inception dates: 1/22/90 Class A; 5/16/84 Class B; 8/1/94 Class C.
*These are the average returns of 121 funds in the global category for
six months; 102 funds for one year; 11 funds for five years; and 10 since
inception, as determined by Lipper Analytical Services, Inc.
<PAGE>
Portfolio Manager's Report.
(PICTURE)
Dan Duane
Fund Manager
The Prudential Global Fund seeks long-term capital growth with income as
a secondary objective. It invests primarily in a diversified portfolio of
U.S. and foreign stocks, as well as bonds. Since it invests globally, the
Fund is subject to all the risks associated with foreign investing, including
currency, political and social risks. Although it did not do so during the
reporting period, the Fund occasionally uses derivatives such as options and
futures to hedge currency risk.
How The Markets Compared.
Total Returns 4/30/94 to 4/30/95
(GRAPH)
Source: Prudential Mutual Fund Management, Inc. U.S Stocks -- S&P 500;
Global Stocks -- Morgan Stanley World Index; U.S. Bonds -- Lehman Bros.
govt./corp. index; Money Markets -- IBC/Donoghue taxable funds average.
This chart is for comparison purposes only. There are special risks
associated with each investment sector which should be considered before
investing. Past performance is not indicative of future results.
Strategy Session.
What We See Now.
The negative surprises confronting global investors during the past six
months included the devastating earthquake in Kobe, Japan, the devaluation
of the Mexican peso, the bankruptcy of Barings Securities PLC in the United
Kingdom, the financial crisis of Orange County, California, and the
unrelenting strength of the Japanese yen and German mark against the U.S.
dollar.
These events caused global investors to sell cyclical stocks in smaller
foreign markets in favor of cash and defensive stocks in more established
markets. (This is the so-called "flight to quality" that typically occurs
when investors are nervous about global political and economic events.)
We believe the worst of the recent bear market for global stocks has passed.
Global economies continue to strengthen. We see companies reporting strong
corporate earnings in most world markets. In response, we're purchasing
economically sensitive stocks around the world -- like technology and
machinery. We're avoiding utilities and banks.
On a geographic basis, we favor Europe and smaller Asian countries over
Japan, where a strong yen and a national banking crisis has made even
Japanese investors reluctant to invest in their own markets. We will
limit our investments in Japan until this situation is resolved.
Emphasizing Services and Electronics Stocks.
Prudential Global Fund, Inc. Compared to the MSCI World Index as of 4/30/95
(GRAPH)
<PAGE>
The Prudential Global Fund, Inc. and the MSCI World Index:
Comparing a $10,000 Investment.
Class A
(GRAPH)
Class B
(GRAPH)
Class C
(GRAPH)
Prudential Global Fund, Inc. MSCI World Index
Past performance is not a guarantee of future performance. Principal and
investment return will fluctuate so that an investor's shares may be worth
more or less than their original cost.
These graphs are furnished to you in accordance with SEC regulations. They
compare a $10,000 investment in the Prudential Global Fund (Class A, Class
B and Class C) with a similar investment in the Morgan Stanley Capital
International "World" Index (MSCI) by portraying the initial account values
at the commencement of operations of each class and subsequent account
values at the end of each fiscal year (October 31), as measured on a
quarterly basis, beginning in 1990 for Class A shares, in 1984 for Class
B shares and 1994 for Class C shares. For purposes of the graphs and, unless
otherwise indicated, the accompanying tables, it has been assumed that (a)
the maximum sales charge was deducted from the initial $10,000 investment
in Class A shares; (b) the maximum applicable contingent deferred sales
charge was deducted from the value of the investment in Class B shares and
Class C shares, assuming full redemption on April 30, 1995; (c) all recurring
fees (including management fees) were deducted; and (d) all dividends and
distributions were reinvested. Class B shares will automatically convert
to Class A shares on a quarterly basis approximately seven years after
purchase. This conversion feature was begun in February 1995 and is not
reflected in this graph.
The MSCI World Index is a weighted index, comprised of approximately 1,500
companies listed on the stock exchanges of the U.S., Europe, Canada,
Australia, New Zealand and the Far East. The combined capitalization of
these companies represents about 60% of the aggregate market value of the
stock exchanges in the countries comprising the World Index. The World Index
is an unmanaged index and includes the reinvestment of all dividends, but does
not reflect the payment of transaction costs and advisory fees associated with
an investment in the Fund. The securities which comprise the World Index may
differ substantially from the securities in the Fund's portfolio. The World
Index is not the only index which may be used to characterize performance of
global funds and other indexes may portray different comparative performance.
<PAGE>
What Went Well...
Emphasis On Europe.
Over the past six months, we have emphasized stocks in Europe, where economies
have emerged from a prolonged recession and continue to gain steam. While we
experienced good absolute performance from many of our European holdings, the
cyclical nature of our European stocks may have constrained our performance
relative to other global funds. Cyclically-dominated markets in Germany,
Finland and Sweden suffered as European investors, fearing another
recession from rising U.S. interest rates, moved investments to cash and
larger consumer-based stocks. We saw impressive overall performance from
stocks on the Continent and in the U.K, although lingering political problems
in Spain, Italy and France hurt some individual stocks in those nations.
Strong performers, on the other hand, included Valeo, a car component maker
from France, and Vodafone, a cellular phone company in the U.K.
Technology in the United States.
We had some U.S. technology investments that performed well, and we took
profits from sales of some of those issues. We continue to look for new
opportunities in this fast-growing sector.
<TABLE>
<CAPTION>
Ten Largest
Holdings*
<S> <C>
2.7% Nokia Corp.
Television and electronics.
2.1% Western Mining Corp.
Non-ferrous metal miners.
2.1% Microsoft Corp.
Computer software.
2.0% Samsung Electronics
Consumer electronics.
1.8% JM Corp. Berhad
Commercial construction &
residential housing.
1.7% Motorola Inc.
Televisions & consumer
electronics.
1.6% Kyocera Corp.
Public works projects &
consumer electronics.
1.6% Aiwa Co.
Consumer electronics.
1.6% Nintendo Co. Ltd.
Consumer electronics.
1.6% Silicon Graphics Inc.
Makers of electronic
components.
</TABLE>
* Expressed as a percentage of total net assets.
...And Not So Well.
Asian Economies Uneasy.
We had a 29% investment in Pacific Rim stocks, primarily in the smaller
Southeast Asian markets, Australia and New Zealand. These markets generally
performed poorly, having suffered for the better part of a year in response
to uneasiness over rising U.S. interest rates. Despite the generally weak
performance of these markets, some of the Global Fund's largest and most
successful holdings during the period, including Western Mining (Australia)
and Samsung Electronics (Korea) were found in this part of the world.
We remain confident that some of the world's most compelling long-term growth
opportunities are to be found in the Pacific Rim region. We're optimistic that
the fundamental strength of this region has recently begun to be recognized
by investors. Those markets had a strong showing early in the second quarter
of this year.
We are limiting our investments in Japan now. We hold significantly less in
Japan than the average Pacific Rim mutual fund.
Looking Ahead.
Despite the recent turmoil in the world's markets, we remain confident that
the greatest growth potential -- along with accompanying risks -- is still
to be found in markets outside the U.S. The recent global jitters that shook
investor confidence over the last six months has created many well-priced
stocks that we're analyzing now. We look forward to investigating these
global and other opportunities for our shareholders.
<PAGE>
President's Letter
June 19, 1995
Dear Shareholder:
You've probably noticed your shareholder report looks different this month.
We've designed it to provide clear, concise and forthright information about
your investment, its performance, risks and potential rewards. And, from time
to time, I'll share some thoughts with you about the industry, mutual fund
trends and how we're responding to them at Prudential Mutual Funds.
On The Hill
One recent trend we like is part of the "Contract with America." It's called
the American Dream Savings Account and it was approved by the House of
Representatives earlier in the year. The Senate has now taken up the proposal,
which would improve the traditional Individual Retirement Account program by
allowing higher non-working spouse contributions. And the proposed law would
also allow tax-free and penalty-free withdrawals from the account before age
59 1/2, for certain expenses. Prudential Mutual Funds supports the proposal
and we urge you to share your opinion about it with your Senator. You can
reach your Senator's office by calling 202-224-3121.
Another trend we like is the Securities & Exchange Commission's move to let
mutual funds simplify the prospectuses that describe our funds. While we
understand and commend SEC rules requiring comprehensive disclosure about
investment practices in prospectuses, the documents that result from these
regulations may be too lengthy for some investors. A profile prospectus would
be shorter and more concise. We'll keep you posted on developments in this
area.
In Closing
One final note: if you're a Class B shareholder, you'll begin noticing a
change on your statements once you've held your shares for seven years and
they begin to convert to Class A shares on a quarterly basis. Since Class A
shares carry lower annual distribution charges than Class B shares, after
conversion your total returns will automatically rise. Conversions will take
place each calendar quarter in March, June, September and December, beginning
in September 1995.
I hope you'll find this information useful as you work with your financial
advisor or registered representative to develop your personal investment
plan. Thank you for choosing Prudential Mutual Funds for your mutual fund
investment.
Sincerely,
Richard A. Redeker
President
<PAGE>
Portfolio of Investments as of
April 30, 1995 (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Value
Shares Description Value (Note 1)
<C> <S> <C>
- - ------------------------------------------------------------
LONG-TERM INVESTMENTS--95.9%
COMMON STOCKS--91.6%
- - ------------------------------------------------------------
Australia--7.6%
353,800 Brambles Industries, Ltd. (Business
& public services) $ 3,487,564
444,300 Broken Hill Proprietary Co., Ltd.
(Energy sources) 6,472,599
1,940,939 BTR Nylex, Ltd. (Industrial
components) 3,795,499
1,044,316 Coca-Cola Amatil, Ltd. (Food &
household products) 6,376,992
1,486,600 Nine Network Australia, Ltd.
(Broadcasting & publishing) 4,268,703
1,708,725 Western Mining Corp. Holdings, Ltd.
(Non-ferrous metals) 9,663,989
-------------
34,065,346
- - ------------------------------------------------------------
Belgium--0.8%
4,800 Bekaert S.A., N.V. (Industrial
components) 3,740,685
- - ------------------------------------------------------------
Federal Republic of Germany--4.2%
6,588 Bilfinger & Berger AG (Construction
& housing) 3,061,761
8,000 Linde AG (Machinery & engineering) 4,595,683
1,520 Linde AG (New) (Machinery &
engineering) 852,950
12,100 Preussag AG (Multi-industry) 3,490,719
6,700 Sap AG (Data processing &
reproduction) 6,892,806
-------------
18,893,919
- - ------------------------------------------------------------
Finland--1.1%
170,100 Kymmene Corp. (Forest products &
paper) 5,092,100
- - ------------------------------------------------------------
France--6.6%
10,600 Carrefour (Merchandising) 5,300,000
7,000 Guyenne et Gascogne* (Merchandising) 2,002,029
42,900 Imetal S.A. (Miscellaneous materials
& commodities) 4,542,353
3,850 La Farge Coppee (New) (Building
materials & components) $ 299,097
49,350 La Farge Coppee (Old) (Building
materials & components) 3,833,884
4,500 Legrand S.A. (Electronics) 6,498,986
18,300 Plastic Omnium (Automotive) 1,989,615
95,300 Valeo (Automotive) 5,412,576
-------------
29,878,540
- - ------------------------------------------------------------
Hong Kong--3.9%
6,142,130 CDL Hotels International* (Real
estate) 2,816,399
1,764,000 Guoco Group, Ltd. (Financial
services) 6,698,734
8,990,000 Hung Hing Printing Group, Ltd.
(General manufacturing) 1,596,648
1,447,000 Hutchison Whampoa, Ltd.*
(Multi-industry) 6,279,928
-------------
17,391,709
- - ------------------------------------------------------------
Indonesia--0.6%
1,821,000 Kabel Metal Industries, Ltd.* (Wire
& cable) 2,854,232
- - ------------------------------------------------------------
Japan--12.3%
264,000 Aiwa Co. (Consumer electronics) 7,368,171
22,500 Autobacs Seven Co. (Merchandising) 2,343,527
130,000 Daibiru Corp. (Real estate) 1,605,701
545 Ddi Corp. (Telecommunications) 4,789,786
43,000 Keyence Corp. (Electronic
components) 4,575,772
96,000 Kyocera Corp. (Public
works-electronics) 7,410,926
106,000 Nichiei Co. (Financial services) 6,823,278
114,000 Nintendo Co., Ltd. (Consumer
electronics) 7,297,625
92,640 Nissen Co., Ltd. (Merchandising) 2,926,632
236,000 Omron Corp. (Electronics) 4,624,703
88,300 Sony Corp. (Consumer goods) 4,477,922
40,000 Tokyo Electronic Co., Ltd.
(Electronic components) 1,244,655
-------------
55,488,698
- - --------------------------------------------------------------------------------
</TABLE>
See Notes to Financial Statements. 3
<PAGE>
Portfolio of Investments as of
April 30, 1995 (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Value
Shares Description Value (Note 1)
<C> <S> <C>
- - ------------------------------------------------------------
Korea--2.6%
7,000 Pohang Iron & Steel Co., Ltd.
(Metals) $ 602,348
10,597 Samsung Electronics (New)
(Electronics) 1,640,252
56,248 Samsung Electronics (Old)
(Electronics) 9,038,342
1,454 Shinsegae (New) (Merchandising) 122,637
4,900 Shinsegae (Old) (Merchandising) 417,787
-------------
11,821,366
- - ------------------------------------------------------------
Malaysia--5.0%
2,520,000 IJM Corporation Berhad (Construction
& housing) 8,364,299
333,000 Malayasian Helicopter
(Transportation) 1,031,147
3,177,000 Renong Berhad (Infrastructure) 4,860,984
794,000 Resorts World (Leisure & tourism) 4,178,101
1,647,000 Technology Resources Industries
Berhad (Data processing &
reproduction) 4,200,000
-------------
22,634,531
- - ------------------------------------------------------------
Mexico--1.3%
545,700 Apasco, S.A. (Building materials) 1,923,855
1,521,400 Cifra, S.A. de C.V. (Merchandising) 2,211,559
826,900 Fomento Economico Mexicano, S.A. de
C.V.* (Merchandising) 1,823,739
-------------
5,959,153
- - ------------------------------------------------------------
Netherlands--1.3%
68,000 Heineken N.V. (Beverages) 6,050,367
- - ------------------------------------------------------------
New Zealand--1.5%
2,460,500 Fletcher Challenge, Ltd. (Forest
products & paper) 6,617,271
- - ------------------------------------------------------------
Singapore--6.3%
465,000 Fraser & Neave, Ltd. (Beverages &
tobacco) 5,102,926
1,047,000 O'Seas Union Bank (Banking) 6,045,295
1,031,250 Sembawang Maritime, Ltd.
(Transportation) 4,327,078
313,000 Singapore Airlines, Ltd.
(Transportation) 3,008,320
675,000 United Overseas Bank, Ltd. (Banking) 7,020,155
1,654,000 Wing Tai Holdings (Multi-industry) $ 2,799,771
-------------
28,303,545
- - ------------------------------------------------------------
Spain--3.3%
38,320 Acerinox S.A. (Metals-steel) 4,371,456
25,600 Banco Popular Esp (Banking) 3,483,754
224,862 Centros Commerciale (Pryca)
(Merchandising) 3,966,013
187,600 Dragados y Construcciones*
(Construction & housing) 2,830,696
-------------
14,651,919
- - ------------------------------------------------------------
Sweden--4.5%
172,000 Astra B Free (Health & personal
care) 4,884,151
84,200 Hennes & Mauritz B Free
(Merchandising) 5,671,317
93,600 Missouri Och Domsjo AB (Forest
products & paper) 5,200,214
253,600 Volvo AB (Automotive) 4,748,673
-------------
20,504,355
- - ------------------------------------------------------------
Thailand--1.3%
110,702 Land & House Public Co., Ltd.
(Housing) 1,953,432
1,593,900 Sahavirya Steel (Metals) 4,115,172
-------------
6,068,604
- - ------------------------------------------------------------
United Kingdom--10.0%
319,700 Barclays Bank PLC (Banking) 3,292,747
29,000 Britannic Assured (Insurance) 238,015
1,025,800 British Sky Broadcast (Broadcasting
& publishing) 4,077,513
319,700 Carlton Communications PLC
(Television & communication
equipment) 4,861,947
162,000 Commercial Union PLC (Insurance) 1,452,131
649,300 Guest Keen & Nettlefolds
(Automotive) 6,771,052
540,200 J. Sainsbury PLC (Merchandising) 3,807,715
259,000 S.G. Warburg Group PLC (Financial
services) 3,184,409
688,500 Siebe PLC (Machinery & engineering) 6,238,039
1,629,600 Telewest Communications
(Telecommunications) 4,038,662
</TABLE>
- - -------------------------------------------------------------------------------
4 See Notes to Financial Statements.
<PAGE>
Portfolio of Investments as of
April 30, 1995 (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - -----------------------------------------------------------------------------
<TABLE>
<CAPTION>
Description Value
Shares Description Value (Note 1)
<C> <S> <C>
- - ------------------------------------------------------------
United Kingdom (cont'd.)
2,223,390 Vodafone Group PLC
(Telecommunications) $ 6,941,497
-------------
44,903,727
- - ------------------------------------------------------------
United States--17.4%
71,400 Applied Materials,
Inc.*(Electronics) 4,400,025
275,006 Mattel, Inc. (Recreation & other
consumer goods) 6,531,393
149,500 McDonald's Corp. (Food Serving-Fast
Foods) 5,232,500
276,300 MCI Communications Corp.
(Telecommunications) 6,009,525
112,900 Microsoft Corp. (Computer services) 9,243,687
185,800 Mirage Resorts, Inc. (Hotels &
leisure) 5,574,000
62,600 Mobil Corp. (Energy sources) 5,939,175
134,700 Motorola, Inc. (Television &
electronics) 7,661,062
264,500 Nextel Communications, Inc.
(Telecommunications) 4,265,063
199,000 Norwest Corp. (Banking) 5,273,500
95,800 Pohang Iron & Steel (ADR) (Metals) 2,646,475
187,300 Silicon Graphics, Inc.* (Electronic
components) 7,023,750
116,000 Time Warner, Inc. (Broadcasting &
publishing) 4,248,500
91,300 Viacom, Inc. (Telecommunications) 4,279,688
-------------
78,328,343
-------------
Total common stocks
(cost US$350,020,290) 413,248,410
-------------
PREFERRED STOCKS--3.3%
- - ------------------------------------------------------------
Federal Republic of Germany--0.6%
5,440 Krones AG (Machinery & engineering) 2,583,021
Finland--2.7%
294,000 Nokia Corp. (Television &
electronics) $ 11,964,077
-------------
Total preferred stocks
(cost US$7,138,538) 14,547,098
-------------
Warrants
WARRANTS*--0.9%
- - ------------------------------------------------------------
France
3,500 La Farge Coppee, expiring April '96
@ FF460 (Building materials &
components) 11,607
- - ------------------------------------------------------------
Japan--0.5%
400 Autobacs Seven Co., expiring Mar.
'96 @ Y8,231 (Merchandising) 645,000
1,136 Nissen Co., Ltd., expiring Nov. '96
@ Y1,681 (Merchandising) 1,356,662
5,250 Nitori Co., expiring Feb. '98 @
Y3,268 (Merchandising) 309,896
-------------
2,311,558
- - ------------------------------------------------------------
Singapore--0.4%
334,000 United Overseas Bank, Ltd., expiring
June '97 @ SGO2.00 (Banking) 1,748,817
-------------
Total warrants (cost US$4,155,793) 4,071,982
-------------
Principal
Amount
(000)
CORPORATE BONDS
- - ------------------------------------------------------------
Singapore
SGD 97 Sembawang Maritime, Ltd.
Convertible unsecured loan stock
1.50%, 10/25/98
(Transportation)
(cost US$61,850) 134,973
-------------
Total long-term investments (cost
US$361,376,471) 432,002,463
-------------
</TABLE>
- - --------------------------------------------------------------------------------
See Notes to Financial Statements. 5
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
Portfolio of Investments as of April 30, 1995 (Unaudited)
- - ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C>
- - ------------------------------------------------------------
SHORT-TERM INVESTMENTS--0.1%
- - ------------------------------------------------------------
Repurchase Agreement--0.1%
USD293 Joint Repurchase Agreement Account,
5.93%, 5/1/95
(cost US$293,000; Note 5) $ 293,000
- - ------------------------------------------------------------
Total Investments--95.9%
(cost US$361,669,471; Note 4) 432,295,463
Other assets in excess of
liabilities--4.1% 18,618,727
-------------
Net Assets--100% $ 450,914,190
-------------
-------------
- - ---------------
*Non-income producing security.
ADR--American Depository Receipt
- - --------------------------------------------------------------------------------
6 See Notes to Financial Statements.
<PAGE>
Statement of Assets and Liabilities (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S>
<C>
ASSETS
April 30, 1995
Investments, at value (cost
$361,669,471)................................................................
.... $432,295,463
Foreign currency, at value (cost
$11,753,817)................................................................
11,875,914
Cash.........................................................................
................................ 188,527
Receivable for investments
sold.........................................................................
..... 6,333,298
Receivable for Fund shares
sold.........................................................................
..... 1,233,396
Dividends and interest
receivable...................................................................
......... 1,173,412
Deferred expenses and other
assets.......................................................................
.... 17,441
------------
Total
assets.......................................................................
....................... 453,117,451
------------
Liabilities
Payable for Fund shares
reacquired...................................................................
........ 919,017
Accrued
expenses.....................................................................
........................ 420,728
Due to
Manager......................................................................
......................... 271,324
Payable for investments
purchased....................................................................
........ 253,401
Due to
Distributors.................................................................
......................... 220,541
Withholding taxes
payable......................................................................
.............. 110,929
Deferred Thailand capital gains
tax..........................................................................
7,321
------------
Total
liabilities..................................................................
....................... 2,203,261
------------
Net
Assets.......................................................................
............................ $450,914,190
------------
Net assets were comprised of:
Common stock, at
par..........................................................................
............ $ 327,920
Paid-in capital in excess of
par..........................................................................
372,283,551
------------
372,611,471
Undistributed net investment
income.......................................................................
1,676,411
Accumulated net realized gain on investments and foreign currency
transactions............................ 5,863,577
Net unrealized appreciation on investments and foreign
currencies......................................... 70,762,731
------------
Net assets, April 30,
1995.........................................................................
.......... $450,914,190
------------
------------
Class A:
Net asset value and redemption price per share
($203,245,318 / 14,549,204 shares of common stock issued and
outstanding).............................. $13.97
Maximum sales charge (5% of offering
price)...............................................................
.74
Maximum offering price to
public..........................................................................
$14.71
Class B:
Net asset value, offering price and redemption price per share
($245,619,258 / 18,091,853 shares of common stock issued and
outstanding).............................. $13.58
Class C:
Net asset value, offering price and redemption price per share
($2,049,614 / 150,977 shares of common stock issued and
outstanding)................................... $13.58
</TABLE>
- - --------------------------------------------------------------------------------
See Notes to Financial Statements. 7
<PAGE>
<TABLE>
PRUDENTIAL GLOBAL FUND, INC. PRUDENTIAL GLOBAL FUND, INC.
Statement of Operations (Unaudited) Statement of Changes in Net Assets
(Unaudited)
<CAPTION>
Six Months
Ended
April 30,
Net Investment Loss 1995
<S> <C>
Income
Dividends (net of foreign withholding taxes
of $302,952)............................. $ 2,498,396
Interest.................................... 204,571
------------
Total income............................. 2,702,967
------------
Expenses
Management fee.............................. 1,627,039
Distribution fee--Class A................... 154,575
Distribution fee--Class B................... 1,430,115
Distribution fee--Class C................... 7,974
Custodian's fees and expenses............... 572,000
Transfer agent's fees and expenses.......... 503,000
Registration fees........................... 55,000
Directors' fees............................. 44,000
Audit fees.................................. 25,000
Legal fees and expenses..................... 22,500
Reports to shareholders..................... 10,000
Insurance................................... 4,500
Miscellaneous............................... 17,884
------------
Total operating expenses................. 4,473,587
------------
Net investment loss............................ (1,770,620)
------------
Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions
Net realized gain on:
Investment transactions..................... 5,588,655
Foreign currency transactions............... 925,223
------------
6,513,878
------------
Net change in unrealized
appreciation/depreciation of:
Investments (net of deferred Thailand
capital gains tax of $7,321)............. (30,232,168)
Foreign currencies.......................... 154,815
------------
(30,077,353)
------------
Net loss on investments and foreign
currencies.................................. (23,563,475)
------------
Net Decrease in Net Assets
Resulting from Operations...................... $(25,334,095)
------------
------------
</TABLE>
<TABLE>
<CAPTION>
Six Months
Increase (Decrease) Ended Year Ended
in Net Assets April 30, 1995 October 31, 1994
<S> <C> <C>
Operations
Net investment loss......... $ (1,770,620) $ (3,531,034)
Net realized gain on
investment and foreign
currency transactions.... 6,513,878 18,037,672
Net change in unrealized
appreciation/depreciation
of investments and
foreign currencies....... (30,077,353) 29,668,338
-------------- --------------
Net increase (decrease) in
net assets resulting from
operations............... (25,334,095) 44,174,976
-------------- --------------
Net equalization credits....... 758,707 193,130
-------------- --------------
Distributions paid to
shareholders from net
realized gains on investment
and foreign currency
transactions
Class A..................... (885,696) --
Class B..................... (5,244,431) --
Class C..................... (19,511) --
-------------- --------------
(6,149,638) --
-------------- --------------
Fund share transactions (net of
share conversions) (Note 6)
Proceeds from shares sold... 135,999,805 373,867,022
Net asset value of shares
issued in reinvestment of
distributions............ 5,817,106 --
Cost of shares reacquired... 145,717,662 (225,849,388)
-------------- --------------
Net increase (decrease) in
net assets from Fund
share transactions....... (3,900,751) 148,017,634
-------------- --------------
Total increase (decrease)...... (34,625,777) 192,385,740
Net Assets
Beginning of period............ 485,539,967 293,154,227
-------------- --------------
End of period.................. $ 450,914,190 $ 485,539,967
-------------- --------------
-------------- --------------
</TABLE>
- - --------------------------------------------------------------------------------
8 See Notes to Financial Statements.
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - --------------------------------------------------------------------------------
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 Policies
The following is a summary 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 $925,223 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 unrealized currency gains and losses from valuing foreign currency
denominated assets and liabilities (other than investments) at fiscal year end
exchange rates are reflected as a component of net unrealized appreciation on
investments and 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.
- - --------------------------------------------------------------------------------
9
<PAGE>
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - --------------------------------------------------------------------------------
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. The effect of applying this statement was to increase undistributed
net investment income by $925,223, and decrease accumulated net realized gain
on
investments and foreign currency transactions by $925,223 for the six months
ended April 30, 1995.
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, interest and capital gains 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 and Class C shares of the Fund (collectively the
``Distributors''). The Fund compensates the Distributors for distributing and
servicing the Fund's Class A, Class B and Class C shares, pursuant to plans of
distribution, (the ``Class A, B and C Plans'') regardless of expenses actually
incurred by them. The distribution fees are accrued daily and payable monthly.
Pursuant to the Class A, B and C Plans, the Fund compensates PMFD for
distribution-related activities 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, .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 of the Class B shares and 1% of average daily net assets of Class C
shares. Such expenses under the Plans were .25 of 1%, .93% of 1% and 1% of the
average daily net assets of Class A, B and C shares, respectively, for the six
months ended April 30, 1995.
PMFD has advised the Fund that it has received approximately $141,700 in
front-end sales charges resulting from sales of Class A shares during the six
months ended April 30, 1995. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons.
PSI has advised the Fund that for the six months ended April 30, 1995, it
received approximately $432,500 in contingent deferred sales charges imposed
upon certain redemptions by Class B and C shareholders.
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 Transactions With Affiliates
Prudential Mutual Fund Services, Inc. (``PMFS''), a wholly owned subsidiary of
PMF, serves as the Fund's transfer agent and during the six months ended April
30, 1995, the Fund incurred fees of approximately $419,000 for the services of
PMFS. As of April 30, 1995, approximately $151,000 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, 1995, PSI and/or its foreign affiliates
earned approximately $311 in brokerage commissions from portfolio transactions
executed on behalf of the Fund.
- - --------------------------------------------------------------------------------
10
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - --------------------------------------------------------------------------------
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 1995 were $120,950,310 and $134,724,246,
respectively.
The United States federal income tax basis of the Fund's investments at October
31, 1994 was $361,669,471 and accordingly, net unrealized appreciation for
federal income tax purposes was $70,625,992 (gross unrealized
appreciation--$88,800,252; gross unrealized depreciation--$18,174,260).
- - ------------------------------------------------------------
Note 5. Joint Repurchase Agreement Account
The Portfolio, along with other affiliated registered investment companies,
transfers uninvested cash balances into a single joint account, the daily
aggregate balance of which is invested in one or more repurchase agreements
collateralized by U.S. Treasury or Federal agency obligations. As of April 30,
1995, the Portfolio has a .03% undivided interest in the repurchase agreements
in the joint account. The undivided interest for the Portfolio represents
$293,000 in principal amount. As of such date, each repurchase agreement in the
joint account and the value of the collateral therefor were as follows:
Bear, Stearns & Co., 5.92%, in the principal amount of $125,000,000, repurchase
price $125,061,667, due 5/1/95. The value of the collateral including accrued
interest in $127,647,875.
UBS Securities Inc., 5.93%, in the principal amount of $100,000,000, repurchase
price $100,049,417, due 5/1/95. The value of the collateral including accrued
interest is $102,062,500.
Morgan Stanley and Co., Inc., 5.93% in the principal amount of $225,000,000,
repurchase price $225,111,188, due 5/1/95. The value of the collateral including
accrued interest is $229,640,625.
CS First Boston Corp., 5.93%, in the principal amount of $225,000,000,
repurchase price $225,111,188, due 5/1/95. The value of the collateral including
accrued interest is $229,640,625.
- - ------------------------------------------------------------
Note 6. Capital
The Fund offers Class A, Class B and Class C shares. Class A shares are sold
with a front-end sales charge of up to 5%. 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. Class C shares are sold with a contingent
deferred sales charge of 1% during the first year. Class B shares will
automatically convert to Class A shares on a quarterly basis approximately seven
years after purchase commencing in or about February 1995. There are 500 million
shares of common stock, $.01 par value per share, divided equally into three
classes, designated Class A, Class B and Class C common stock.
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- - ---------------------------------- ----------- -------------
<S> <C> <C>
Six months ended April 30, 1995:
Shares sold....................... 5,805,256 $ 75,051,226
Shares issued in reinvestment of
dividends and distributions..... 65,491 871,689
Shares reacquired................. (5,878,129) (77,172,037)
----------- -------------
Net decrease in shares outstanding
before conversion............... (7,382) (1,249,122)
Shares issued upon conversion from
Class B......................... 9,600,370 122,789,979
----------- -------------
Net increase in shares
outstanding..................... 9,592,988 $ 121,540,857
----------- -------------
----------- -------------
Year ended October 31, 1994:
Shares sold....................... 8,934,836 $ 124,979,118
Shares reacquired................. (7,169,344) (100,448,720)
----------- -------------
Net increase in shares
outstanding..................... 1,765,492 $ 24,530,398
----------- -------------
----------- -------------
</TABLE>
- - --------------------------------------------------------------------------------
11
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B Shares Amount
- - ---------------------------------- ----------- -------------
Six months ended April 30, 1995:
<S> <C> <C>
Shares sold....................... 4,608,311 $ 59,673,397
Shares issued in reinvestment of
dividends and distributions..... 379,972 4,928,231
Shares reacquired................. (5,284,129) (68,149,704)
----------- -------------
Net decrease in shares outstanding
before conversion............... (295,846) (3,548,076)
Shares reacquired upon conversion
into Class A.................... (9,870,475) (122,789,979)
----------- -------------
Net decrease in shares
outstanding..................... (10,166,321) $(126,338,055)
----------- -------------
----------- -------------
Year ended October 31, 1994:
Shares sold....................... 17,971,424 $ 247,670,808
Shares reacquired................. (9,114,786) (125,372,515)
----------- -------------
Net increase in shares
outstanding..................... 8,856,638 $ 122,298,293
----------- -------------
----------- -------------
<CAPTION>
Class C
- - ----------------------------------
<S> <C> <C>
Six months ended April 30, 1995:
Shares sold....................... 97,760 $ 1,275,182
Shares issued in reinvestment of
dividends and distributions..... 1,325 17,186
Shares reacquired................. (31,081) (395,921)
----------- -------------
Net increase in shares
outstanding..................... 68,004 $ 896,447
----------- -------------
----------- -------------
<CAPTION>
Class C Shares Amount
- - ---------------------------------- ----------- -------------
<S> <C> <C>
August 3, 1994* through
October 31, 1994:
Shares sold....................... 84,982 $ 1,217,096
Shares reacquired................. (2,009) (28,153)
----------- -------------
Net increase in shares
outstanding..................... 82,973 $ 1,188,943
----------- -------------
----------- -------------
- - ---------------
* Commencement of offering of Class C shares.
</TABLE>
- - ------------------------------------------------------------
Note 7. Dividends and Distributions
On June 5, 1995, the Board of Trustees of the Fund declared the following
distribution per share, payable on June 21, 1995 to shareholders of record on
June 12, 1995:
<TABLE>
<CAPTION>
Class B
Class A and C
------- -------
<S> <C> <C>
Long-Term Capital Gains................... $0.0084 $0.0084
</TABLE>
- - --------------------------------------------------------------------------------
12
<PAGE>
<PAGE>
Financial Highlights (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
- - -----------------------------------------------------------------------------
January 22,
Six Months
1990@
Ended
Year Ended October 31, Through
April 30,
- - -------------------------------------------- October 31,
1995 1994
1993 1992 1991 1990
<S> <C> <C>
<C> <C> <C> <C>
------------ --------
------- ------- ------- -----------
PER SHARE OPERATING PERFORMANCE (1):
Net asset value, beginning of period.......... $ 14.89 $ 13.17
$ 9.58 $ 10.08 $ 9.19 $ 10.38
------------ --------
------- ------- ------- -----------
Income from investment operations
Net investment income (loss).................. -- (.04)
.02 .03 .07 .12
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions................................ (.73) 1.76
3.57 (.53) 1.02 (1.31)
------------ --------
------- ------- ------- -----------
Total from investment operations............ (.73) 1.72
3.59 (.50) 1.09 (1.19)
------------ --------
------- ------- ------- -----------
Less distributions
Dividends from net investment income.......... -- --
-- -- (.16) --
Distributions paid to shareholders from net
realized gains on investment and foreign
currency transactions....................... (.19) --
-- -- (.04) --
------------ --------
------- ------- ------- -----------
Total distributions........................ (.19) --
-- -- (.20) --
------------ --------
------- ------- ------- -----------
Net asset value, end of period................ $ 13.97 $ 14.89
$ 13.17 $ 9.58 $ 10.08 $ 9.19
------------ --------
------- ------- ------- -----------
------------ --------
------- ------- ------- -----------
TOTAL RETURN#:................................ (4.90)% 13.06%
37.47% (4.96)% 12.11% (11.46)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $203,245 $ 73,815
$42,021 $13,973 $14,154 $ 8,727
Average net assets (000)...................... $124,685 $ 58,455
$21,409 $14,758 $10,593 $ 7,151
Ratios to average net assets:
Expenses, including distribution fees....... 1.59%* 1.55%
1.56% 1.71% 1.72% 1.57%*
Expenses, excluding distribution fees....... 1.34%* 1.30%
1.36% 1.51% 1.52% 1.37%*
Net investment income (loss)............... (.02)%* (0.29)%
0.20% 0.22% 0.65% 1.61%*
Portfolio turnover rate....................... 28% 49%
69% 58% 126% 35%
</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. 13
<PAGE>
<PAGE>
Financial Highlights (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- - --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
- - -----------------------------------------------------------------------------
Six Months
Ended
Year Ended October 31,
April 30,
- - ------------------------------------------------------------
1995 1994
1993 1992 1991 1990
<S> <C> <C>
<C> <C> <C> <C>
------------ --------
-------- -------- -------- --------
PER SHARE OPERATING PERFORMANCE (1):
Net asset value, beginning of period.......... $ 14.53 $ 12.94
$ 9.47 $ 10.05 $ 9.14 $ 10.46
------------ --------
-------- -------- -------- --------
Income from investment operations
Net investment income (loss).................. (.14) (.13)
(.04) (.05) -- .05
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions................................ (.62) 1.72
3.51 (.53) 1.02 (1.10)
------------ --------
-------- -------- -------- --------
Total from investment operations........... (.76) 1.59
3.47 (.58) 1.02 (1.05)
------------ --------
-------- -------- -------- --------
Less distributions
Dividends from net investment income.......... -- --
-- -- (.07) (.18)
Distributions paid to shareholders from net
realized gains on investment and foreign
currency transactions....................... (.19) --
-- -- (.04) (.09)
------------ --------
-------- -------- -------- --------
Total distributions........................ (.19) --
-- -- (.11) (.27)
------------ --------
-------- -------- -------- --------
Net asset value, end of period................ $ 13.58 $ 14.53
$ 12.94 $ 9.47 $ 10.05 $ 9.14
------------ --------
-------- -------- -------- --------
------------ --------
-------- -------- -------- --------
TOTAL RETURN#:................................ (5.23)% 12.29%
36.64% (5.77)% 11.29% (10.43)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $245,619 $410,520
$251,133 $178,438 $249,582 $261,555
Average net assets (000)...................... $311,180 $345,771
$183,741 $210,464 $253,866 $328,467
Ratios to average net assets:
Expenses, including distribution fees...... 2.25%* 2.24%
2.24% 2.40% 2.44% 2.23%
Expenses, excluding distribution fees...... 1.32%* 1.30%
1.36% 1.51% 1.53% 1.37%
Net investment income (loss)............... (1.13)%* (0.97)%
(0.39)% (0.47)% (0.01)% 0.51%
Portfolio turnover rate....................... 28% 49%
69% 58% 126% 35%
<CAPTION>
Class C
August 1,
Six Months 1994D
Ended Through
April 30, October 31,
1995 1994
<S> <C> <C>
------------ -----------
PER SHARE OPERATING PERFORMANCE (1):
Net asset value, beginning of period.......... $ 14.53 $ 14.03
------------ -----------
Income from investment operations
Net investment income (loss).................. (.06) (.03)
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions................................ (.70) .53
------------ -----------
Total from investment operations........... (.76) .50
------------ -----------
Less distributions
Dividends from net investment income.......... -- --
Distributions paid to shareholders from net
realized gains on investment and foreign
currency transactions....................... (.19) --
------------ -----------
Total distributions........................ (.19) --
------------ -----------
Net asset value, end of period................ $ 13.58 $ 14.53
------------ -----------
------------ -----------
TOTAL RETURN#:................................ (5.23)% 3.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $ 2,050 $ 1,205
Average net assets (000)...................... $ 1,608 $ 630
Ratios to average net assets:
Expenses, including distribution fees...... 2.34%* 2.63%*
Expenses, excluding distribution fees...... 1.34%* 1.63%*
Net investment income (loss)............... (.99)% (1.21)%*
Portfolio turnover rate....................... 28% 49%
</TABLE>
- - ---------------
* Annualized.
D Commencement of offering of Class C shares.
# 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.
(1) Based on average shares outstanding, by class.
- - --------------------------------------------------------------------------------
14 See Notes to Financial Statements.
<PAGE>
<PAGE>
Prudential Mutual Funds
One Seaport Plaza
New York, NY 10292
Toll Free (800) 225-1852
Collect (908) 417-7555
(LOGO)
Directors
Stephen C. Eyre
Delayne Dedrick Gold
Don G. Hoff
Harry A. Jacobs, Jr.
Sidney R. Knafel
Robert E. La Blanc
Thomas A. Owens, Jr.
Richard A. Redeker
Clay T. Whitehead
Officers
Richard A. Redeker, President
David W. Drasnin, Vice President
Robert F. Gunia, Vice President
Grace Torres, Treasurer
S. Jane Rose, Secretary
Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101
Distributor
Prudential Mutual Fund Distributors, Inc.
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004
The accompanying financial statements as of April 30, 1995 were not audited
and, accordingly, no opinion is expressed on them.
This report is not authorized for distribution to prospective investors
unless preceded or accompanied by a current prospectus.
744332107 MF115E2
744332206 Cat. #44003BZ
744332305
