(ICON)
Prudential
Global
Fund, Inc.
SEMI
ANNUAL
REPORT
April 30, 1996
(LOGO)
<PAGE>
Prudential Global Fund
Performance At A Glance.
Global stock markets turned in mixed performances during the past six months.
Stocks showed strong growth in smaller Pacific Basin countries and promising
signs of an economic recovery in Japan lifted stock prices there. Meanwhile,
stocks grew moderately in the United States. Only in Europe did stock price
growth slow to a crawl. It was our sizeable investment in European stocks that
resulted in the Prudential Global Fund finishing behind the average global
fund, as measured by Lipper Analytical Services, for the six-month period ended
April 30, 1996.
<TABLE>
<CAPTION>
Cumulative Total Returns1 As of 4/30/96
<S> <C> <C> <C> <C> <C>
Six One Five Ten Since
Months Year Years Years Inception2
Class A 9.0% 21.2% 77.5% N/A 69.0%
Class B 8.7 20.4 71.5 126.9% 351.6
Class C 8.7 20.4 N/A N/A 18.2
Class Z N/A N/A N/A N/A 4.7
Lipper Global Fund Avg3 13.7 22.5 75.5 198.2 405.1
</TABLE>
[/CAPTION]
<TABLE>
<CAPTION>
Average Annual Total Returns1 As of 3/31/96
<S> <C> <C> <C> <C>
One Five Ten Since
Year Years Years Inception2
Class A 17.0% 11.0% N/A 7.4%
Class B 17.3 11.2 8.7% 13.3
Class C 21.3 N/A N/A 8.7
Class Z N/A N/A N/A N/A
</TABLE>
[/CAPTION]
Past performance is not indicative of future results. Principal and investment
return 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 and Lipper Analytical Services. The
cumulative total returns do not take into account sales charges. The average
annual 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. Class Z shares are not subject to a sales
charge or distribution fee. Since Class Z shares have been in existence for
less than a year, no average annual returns are shown.
2Inception dates: 1/22/90 Class A; 5/16/84 Class B; 8/1/94 Class C; 3/1/96
Class Z.
3The Lipper Fund average includes 152 funds in the global category for six
months; 133 funds for one year; 32 funds for five years; 11 funds for 10
years; and 9 since inception of Class B shares, as determined by Lipper
Analytical Services.
How Investments Compared.
(As of 4/30/96)
(CHART)
U.S. General General U.S.
Growth Bond Muni Debt Taxable
Funds Funds Funds Money Funds
Source: Lipper Analytical Services. Financial markets change, so a mutual
fund's past performance should never be used to predict future results. The
risks to each of the investments listed above are different - we provide
12-month total returns for several Lipper mutual fund categories to show you
that reaching for higher yields means tolerating more risk. The greater the
risk, the larger the potential reward or loss. In addition, we've included
historical 20-year average annual returns. These returns assume the
reinvestment of dividends.
U.S. Growth Funds will fluctuate a great deal. Investors receive higher
historical total returns from stocks than from most other investments. Smaller
capitalization stocks offer greater potential for long-term growth but may be
more volatile than larger capitalization stocks.
General Bond Funds provide more income than stock funds, which can help smooth
out their total returns year by year. But their prices still fluctuate
(sometimes significantly) and their returns have been historically lower than
those of stock funds.
General Municipal Debt Funds invest in bonds issued by state governments, state
agencies and/or municipalities. This investment provides income that is usually
exempt from federal and state income taxes.
Money Market Funds attempt to preserve a constant share value; they don't
fluctuate much in price but, historically, their returns have been generally
among the lowest of the major investment categories.
<PAGE>
Daniel J. Duane, Fund Manager
(PHOTO)
Portfolio
Manager's Report
The Prudential Global Fund invests primarily in U.S. and foreign stocks. It
invests globally, so the Fund is subject to the special risks associated with
foreign investments, including currency, political and social risks. There can
also be no assurance that the Fund will achieve its investment objective.
Strategy Session.
Your Fund invests in growth stocks around the globe. Here's where - and why -
we invested.
Europe Sizzled... And Fizzled
European stocks (including the United Kingdom) were generally a disappointment
at 37% of total net assets on April 30, 1996 compared to 33% six months ago.
Economies there expanded briskly for most of 1995, then began to fade in
November. Stocks responded well to the early economic growth, then they stalled
as growth slowed. Our investment style was to invest in growth stocks -
generally those of up-and-coming companies that tend to do well during periods
of rapid economic expansion. These stocks did poorly, but the worst may be
over. As European economies slowly recovered in February, March and April, so
did the prices of our growth stocks.
A Buy: www.internet.usa
U.S. stocks comprised 22% of total net assets on April 30, 1996. Here we
focused on technology, telecommunication and entertainment stocks, like
Microsoft, MCI Communications and Viacom. In our view, the worldwide Internet
and cellular communications offer good, long-term growth potential.
Pacific Basin: Luxury
Our holdings in Pacific Basin and Australian stocks were 34% of total net
assets on April 30, 1996. A burgeoning, young middle class, and generally low
interest rates throughout the region (particularly Hong Kong and Singapore),
strengthened consumer demand for luxury housing and goods. Realty and apartment
management companies were the chief beneficiaries of this trend, and we
invested in them.
Japanese stocks were 14% total net assets on April 30, 1996.
Companies, Not Countries.
Portfolio Manager Dan Duane works with an experienced team of regional
investment professionals to analyze long-term economic, social and demographic
themes that will lead to high earnings growth levels. Next, Dan identifies
individual companies that appear best-positioned to prosper from these trends
and he buys stock in select businesses. Dan's primary emphasis is on the
company and its business, not the country where it's located.
A Diverse Portfolio.
Sectors expressed as a percentage of
total net assets as of 4/30/96.
(CHART)
<PAGE>
What Went Well.
Right Places,
Right Stocks.
Our investments in U.S. stocks (technology companies, specifically) and in
companies located in Hong Kong, Singapore and Japan, helped Fund performance
during the past six months. Strong economic growth in Southeast Asia lifted
stock prices in Hong Kong and Singapore, the two largest Asian markets outside
of Japan. In Japan, the apparent start of the long-awaited economic recovery
spurred renewed interest in Japanese stocks, which drove their prices higher.
Upscale Was Hot.
In Europe, our holdings in high-priced retailers, such as the Gucci Group which
sells upscale clothing, performed well. Despite sluggish economic growth in
Europe, consumer demand for luxury goods has risen. Shoppers spent heavily on
more sophisticated goods. This translated into higher stock prices for this
company, helping Fund performance. In the Pacific Basin, we followed a related
theme to take advantage of the growing middle-class demand for luxury housing.
And Not So Well.
We Didn't Follow
The Crowd.
We owned too few of steady, more-established European companies. These types of
companies tend to perform better than growth-oriented companies in times of
economic uncertainty. We didn't follow the crowd and shift enough assets into
better-known stocks as European economies slowed late last year.
Right Place,
Wrong Stock.
Our investment in Japan was well-placed. However, the stocks of larger,
more-established Japanese companies were the bigger beneficiaries of the
country's economic expansion - at the expense of the retail and smaller service
company stocks we favored. Our performance may have been better if we had
invested more of the Fund's assets in larger, more well-known companies (as we
did with Sony) and in basic industries.
Looking Ahead.
Global economies are improving, if at an uneven rate. We see continued
opportunity in the U.S., Japan, and other Pacific Basin stock markets. In
Europe, our optimism is tempered by the sluggishness of economic growth. While
much has been accomplished there to improve productivity, high labor costs,
bureaucracy and national pride still stand in growth's path. We will be
watching the European situation closely, and will favor companies which have
taken steps to become competitive players in today's global marketplace.
Five Largest Holdings.
2.7% Microsoft
Computer Software
& Services
2.1% Mirage Resorts
Gaming
1.9% Mattel
Recreation &
Consumer Goods
1.9% Heineken
Beverages & Tobacco
1.9% Citic Pacific
Multi-Industry
Expressed as a percentage of total net assets as of 4/30/96.
1
<PAGE>
A Talk With Dan Duane.
There's A World Full Of Opportunity - If You Know Where To Look.
With two-thirds of all investment opportunity found outside the United States,
the world is indeed a global marketplace. We asked Dan Duane, portfolio manager
of the Prudential Global Fund, for his insights on the current state of
international markets.
Q. Do you have a "most favored nation" for investment?
A. Right now, we like Hong Kong. In my view, companies in Hong Kong are in an
excellent position to serve not only the Pacific Basin countries and the
opening of China to trade, but they also maintain long-term trading ties to
the U.S., Great Britain and Europe as well. As a world center of trade, Hong
Kong serves as a marketing conduit for goods and services from, and to, China.
Hong Kong will definitely play an expanding role in the years ahead.
Q. Which investments have been disappointing?
A. First, technology stocks in the Pacific Region have taken a big fall - down
about 6% so far in 1996. Stocks of some computer hardware and semi-conductor
manufacturers in the U.S. and Japan were especially hard-hit, as computer sales
slowed. In Europe, economic growth has stalled. Instead of a common market of
profitable companies to invest in, there is only a collection of companies in
different phases of restructuring. Some eventually will prosper, others will
fail. We just have to be patient and see who will succeed.
Q. In your opinion, where are the best growth opportunities?
A. In addition to buying shares of U.S. "leadership" companies in technology
and telecommunications, we like the opportunities found in Hong Kong and
Singapore. In the Pacific Region, personnel and manufacturing costs are still
lower than in many other parts of the world, so there's more room for company
profits and stock appreciation. Management companies in Hong Kong and Singapore
act as "regional multinationals" that harness inexpensive labor and raw
materials found in the Pacific Basin and China. These companies also provide an
excellent way to invest in China without being directly exposed to the risks of
investing in China.
(PICTURE)
Investment markets have changed over the years. In 1970 most investment
opportunities were found in the United States. By 1995, two-thirds of all
investment opportunity could be found outside the U.S. Foreign investing comes
with special risks, including political and currency risk.
The United States No Longer Corners the Market.
The World's Stock Market Wealth by Region.
(CHART)
Source: Prudential Investment Corporation based upon data from Morgan Stanley
Capital International as of 12/31/95.
* In 1970, the Pacific Basin was comprised of only Australia.
These charts are for illustrative purposes only and are not intended to
represent past, present or future performance by the Prudential Global Fund.
Stock market capitalization represents assets of companies traded in those
markets.
2
<PAGE>
President's Letter June 3, 1996
(PICTURE)
Dear Shareholder:
Last year, U.S. stocks and bonds generally posted extraordinary returns.
Investors celebrated this performance by putting record amounts of new money
into mutual funds in the first few months of 1996. According to figures
released by the Investment Company Institute, a mutual fund industry trade
group, new investments in mutual funds reached an all-time monthly high of $33
billion in January of 1996. An additional $66 billion was invested in the
following three months.
While we are pleased that mutual funds are attracting new investors, we're
concerned that some of them may be "buying last year's returns." Few expect
1995's virtual non-stop returns from the stock and bond markets. In fact,
1996's markets have been volatile so far (stock and bond prices go down just as
they go up). There's no better time than now to be talking with your Financial
Advisor or Registered Representative. She or he can help you determine
reasonable expectations about both the potential performance and risks
associated with your investments.
Board of Directors Election.
Late this summer, we'll be sending you a notice about a special shareholder
meeting to elect new Prudential mutual fund boards of directors. Your Board of
Directors has approved a proposal to place a common board of experienced
directors across many of Prudential's mutual funds to improve business
efficiency. The materials you'll receive this summer will contain more
complete information about this proposal.
Changes at Prudential.
Finally, there have been some important changes recently at Prudential that
were made with you in mind. Prudential Mutual Funds has moved under the
umbrella of Prudential's newly created "Money Management Group." This group
manages and administers nearly $190 billion in client assets and provides
mutual funds, annuities, defined benefit and defined contribution plans to our
individual and institutional investors. We plan to improve the range and
quality of investment products and services that we can provide you by better
leveraging Prudential's strengths. There will, however, be no change in the
service you receive from your Financial Advisor, Registered Representative or
our Customer Service unit.
We're excited about our future and hope that you are, too. Thank you for your
continued support and confidence in Prudential Mutual Funds.
Sincerely,
Richard A. Redeker
President
3
<PAGE>
Portfolio of Investments as of April 30, 1996 PRUDENTIAL GLOBAL FUND, INC.
(Unaudited)
- ------------------------------------------------------------
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
- --------------------------------------------------------------
LONG-TERM INVESTMENTS--93.7%
COMMON STOCKS--93.1%
- --------------------------------------------------------------
Argentina--0.7%
433,000 Banco Frances Rio Plata (Banking) $ 4,144,224
- ------------------------------------------------------------
Australia--6.0%
430,100 Brambles Industries, Ltd.
(Business & Public Services) 5,902,670
525,974 Broken Hill Proprietary Co., Ltd.
(Other energy sources) 8,103,681
966,919 Coca-Cola Amatil, Ltd. (Beverages &
Tobacco) 10,182,497
1,720,800 Nine Network Australia, Ltd.
(Broadcasting & Publishing) 7,917,169
66,000 Qantas Airways, Limited (ADR)
(Airlines) 1,173,103
398,000 Qantas Airways, Ltd.
(Transportation-Airlines) 707,416
-------------
33,986,536
- ------------------------------------------------------------
Belgium--0.8%
5,500 Bekaert S.A., N.V.
(Building Materials & Components) 4,249,921
- ------------------------------------------------------------
Federal Republic of Germany--4.5%
18,500 Hoechst AG (Chemicals) 6,229,086
11,420 Linde AG (Machinery & Engineering) 6,980,422
49,900 Sap AG (Data Processing &
Reproduction) 6,468,458
11,300 Siemens AG
(Electrical & Electronics) 6,186,110
-------------
25,864,076
- ------------------------------------------------------------
Finland--0.8%
132,800 Nokia Corp. (Telecommunications
Equipment) 4,743,739
France--6.7%
12,900 Carrefour (Supermarkets) $ 10,072,551
20,796 Imetal S.A. (Misc. Materials &
Commodities) 3,253,208
4,235 LaFarge Coppee* (New) (Building
Materials & Components) 271,060
66,355 LaFarge Coppee (Old)
(Building Materials & Components) 4,247,028
39,400 Legrand S.A. (Electrical &
Electronics) 7,656,773
18,300 Plastic Omnium
(Automobles & Auto Parts) 1,496,838
101,800 SGS Thomson Microelectronics*
(Electronic Components) 4,784,600
10,000 SGS Thomson Microelectronics*
(Electronic Components) 476,457
105,100 Valeo (Automobile & Auto Parts) 5,828,615
-------------
38,087,130
- ------------------------------------------------------------
Hong Kong--6.8%
7,201,213 CDL Hotels International Ltd.
(Leisure & Tourism) 4,096,200
2,715,000 CITIC Pacific, Ltd. (Multi-Industry) 10,670,045
2,102,000 Guoco Group, Ltd. (Banking) 10,462,038
928,000 Hutchison Whampoa, Ltd.
(Multi-Industry) 5,758,536
1,738,000 New World Development Co., Ltd.
(Property Development) 7,796,543
-------------
38,783,362
- ------------------------------------------------------------
Indonesia--0.1%
483,000 Kabel Metal Industries, Ltd.
(Industrial Components) 357,816
- ------------------------------------------------------------
Ireland--1.0%
810,300 Bank Of Ireland* (Banking) 5,865,541
- --------------------------------------------------------------------------------
- -----4 See Notes to Financial Statements.
<PAGE>
<PAGE>
Portfolio of Investments as of April 30, 1996 PRUDENTIAL GLOBAL FUND, INC.
(Unaudited)
- ------------------------------------------------------------
- ------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
- --------------------------------------------------------------
Italy--2.9%
164,800 Gucci Group N V* (Retail) $ 8,961,000
3,559,600 Telecom Italia Mobile*
(Telecommunications-Unregulated) 7,808,670
-------------
16,769,670
- ------------------------------------------------------------
Japan--13.7%
247,000 Daibiru Corp. (Property Investment) 3,319,861
313,000 Eisai Co., Ltd.* (Health & Personal
Care) 6,176,159
302,000 Honda Motor Co., Ltd.
(Automobile & Auto Parts) 6,880,320
38,500 Keyence Corp. (Electronic
components & Instruments) 5,064,582
590,000 Mitsui Fudosan Co., Ltd.
(Property Investment) 7,761,308
123,000 Nichiei Co., Ltd. (Financial
Services) 8,207,426
26,300 Nippon TV Network
(Broadcasting & Publishing) 8,248,129
392,000 Nissan Chemical Industries
(Chemicals) 2,895,954
964 Nissen Co., Ltd. (Retail) 16,725
294,000 Nomura Securities Co., Ltd.*
(Financial Services) 6,389,781
243,000 Omron Corp. (Electronic Components) 5,466,660
583,000 Onward Kashiyama & Co., Ltd.
(Textile-Apparel Manufacturing) 9,836,614
150,300 Sony Music Entertainment (Recreation
& Other consumer Goods) 8,123,550
-------------
78,387,069
- ------------------------------------------------------------
Korea
453 Samsung Electronics Co.* (New)
(Electrical & Electronics) 60,245
- ------------------------------------------------------------
Malaysia--2.0%
4,320,000 IJM Corporation Berhad
(Construction) 8,315,688
1,837,000 Renong Berhad (Multi-Industry) 3,197,217
229,625 Renong Berhad (Multi-Industry)
(rights) 64,460
-------------
11,577,365
Mexico--1.6%
664,000 Apasco, S.A. (Building Materials &
Components) $ 3,613,911
1,848,200 Cifra, S.A. de C.V.* (Retail) 2,526,002
1,003,200 Fomento Economico Mexicano, S.A. de
C.V. (Beverages & Tobacco) 3,034,868
-------------
9,174,781
- ------------------------------------------------------------
Netherlands--2.9%
51,600 Heineken N.V. (Beverages & Tobacco) 10,795,659
41,025 Royal Dutch Petroleum Co.
(Energy Sources) 5,842,592
-------------
16,638,251
- ------------------------------------------------------------
New Zealand--0.1%
384,863 Fletcher Challenge Forestry, Ltd.
(Forest Products & Paper) 496,597
- ------------------------------------------------------------
Singapore--4.3%
481,000 Overseas Chinese Banking Corp., Ltd.
(Banking) 6,602,632
1,273,000 Overseas Union Bank (Banking) 9,868,919
1,083,250 Sembawang Maritime, Ltd. (Energy
Equipment & Services) 2,850,658
1,915,000 Wing Tai Holdings (Property
Development) 4,957,752
-------------
24,279,961
- ------------------------------------------------------------
Spain--2.6%
37,300 Acerinox, S.A. (Metal-Steel) 4,210,983
29,600 Banco Popular Esp (Banking) 4,898,669
247,862 Centros Commerciale (Pryca) (Retail) 5,711,286
-------------
14,820,938
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 5 -----
<PAGE>
<PAGE>
Portfolio of Investments as of April 30, 1996 PRUDENTIAL GLOBAL FUND, INC.
(Unaudited)
- ------------------------------------------------------------
- ------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
- --------------------------------------------------------------
Sweden--4.3%
199,100 Astra B Free (Health & Personal
Care) $ 8,782,228
84,200 Hennes & Mauritz B Free (Retail) 5,803,561
93,600 Missouri Och Domsjo AB
(Forest Products & Paper) 4,976,450
678,000 Skand Enskilda Bkn (Banking) 5,092,564
-------------
24,654,803
- ------------------------------------------------------------
United Kingdom--9.6%
1,131,000 British Sky Broadcasting
(Broadcasting & Publishing) 8,152,888
820,000 Dixons Group PLC (Retail) 6,102,699
715,900 Guest Keen & Nettlefolds
(Automobile & Auto Parts) 10,623,520
304,000 Reed International
(Broadcasting & Publishing) 5,221,777
722,900 Siebe PLC (Machinery & Engineering) 9,364,668
608,300 Standard Chartered PLC*
(Banking) 5,705,966
2,451,290 Vodafone Group PLC
(Telecommunications-Unregulated) 9,814,771
-------------
54,986,289
- ------------------------------------------------------------
United States--21.7%
121,000 Case Corp. (Miscellaneous) 6,110,500
177,400 Cisco Systems, Inc.* (Computer
Software & Services) 9,202,625
417,882 Mattel, Inc. (Recreation & Other
consumer Goods) 10,864,932
335,800 MCI Communications Corp.
(Telecommunications) 9,885,113
137,100 Microsoft Corp.* (Computer
Software & Services) 15,543,712
225,900 Mirage Resorts, Inc.* (Gaming) 11,831,512
76,000 Mobil Corp. (Energy Sources) 8,740,000
286,500 Oracle Systems Corp.*
(Computer Software & Services) 9,669,375
313,300 Silicon Graphics, Inc.* (Electronic
Components) $ 9,281,513
123,500 Texas Instruments Inc.
(Electronic Components) 6,977,750
105,900 Tiffany & Co. (Retail) 6,909,975
141,000 Time Warner, Inc. (Entertainment) 5,763,375
160,800 Viacom Inc.* (Entertainment) 6,432,000
104,700 Walt Disney Co. (Leisure) 6,491,400
-------------
123,703,782
-------------
Total common stocks
(cost US$417,095,880) 531,632,096
-------------
WARRANTS*--0.6%
- ------------------------------------------------------------
Singapore--0.6%
734,800 United Overseas Bank, Ltd.
expiring June '97 @ SGO1.4 (Banking)
(cost US$3,505,151) 3,122,638
-------------
Total long-term investments
(cost US$420,601,031) 534,754,734
-------------
Principal
Amount
(000)
SHORT-TERM INVESTMENTS--3.5%
- ------------------------------------------------------------
Repurchase Agreement--3.5%
$20,321 Joint Repurchase Agreement Account,
2.93%, 5/1/96,
(cost US$20,321,000; Note 5) 20,321,000
-------------
- ------------------------------------------------------------
Total Investments--97.2%
(cost US$440,922,031; Note 4) 555,075,734
Other assets in excess of
liabilities--2.8% 15,721,708
-------------
Net Assets--100% $ 570,797,442
-------------
-------------
- ---------------
*Non-income producing security.
ADR--American Depository Receipt
- --------------------------------------------------------------------------------
- -----6 See Notes to Financial Statements.
<PAGE>
<PAGE>
Statement of Assets and Liabilities (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- --------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
<S>
<C>
Assets
April 30, 1996
Investments, at value (cost
$440,922,031)...................................................................
$555,075,734
Foreign currency, at value (cost
$10,394,950)...............................................................
10,399,702
Cash.........................................................................
............................... 59,938
Forward currency contracts-net amount recievable from
counterparties........................................ 5,244,955
Receivable for Fund shares
sold.........................................................................
.... 1,810,534
Dividends and interest
receivable...................................................................
........ 1,740,846
Deferred expenses and other
assets..........................................................................
8,638
--------------
Total
assets.......................................................................
...................... 574,340,347
--------------
Liabilities
Forward currency contracts-net amount payable to
counterparties............................................. 1,354,889
Payable for Fund shares
reacquired...................................................................
....... 865,688
Accrued
expenses.....................................................................
....................... 537,027
Management fee
payable......................................................................
................ 340,029
Distribution fee
payable......................................................................
.............. 271,078
Withholding taxes
payable......................................................................
............. 174,194
--------------
Total
liabilities..................................................................
...................... 3,542,905
--------------
Net
Assets.......................................................................
........................... $570,797,442
--------------
--------------
Net assets were comprised of:
Common stock, at
par..........................................................................
........... $ 360,821
Paid-in capital in excess of
par.........................................................................
421,984,670
--------------
422,345,491
Undistributed net investment
loss........................................................................
(1,999,388)
Accumulated net realized gain on investments and foreign currency
transactions........................... 32,410,393
Net unrealized appreciation on investments and foreign
currencies........................................ 118,040,946
--------------
Net assets, April 30,
1996.........................................................................
......... $570,797,442
--------------
--------------
Class A:
Net asset value and redemption price per share
($217,304,450 / 13,460,105 shares of common stock issued and
outstanding)............................. $16.14
Maximum sales charge (5% of offering
price)..............................................................
.85
--------------
Maximum offering price to
public.........................................................................
$16.99
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($306,196,165 / 19,680,115 shares of common stock issued and
outstanding)............................. $15.56
--------------
--------------
Class C:
Net asset value, offering price and redemption price per share
($5,835,958 / 375,098 shares of common stock issued and
outstanding).................................. $15.56
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($41,460,869 / 2,566,756 shares of common stock issued and
outstanding)............................... $16.15
--------------
--------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 7 -----
<PAGE>
PRUDENTIAL GLOBAL FUND, INC.
Statement of Operations (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
<S> <C>
Six Months
Ended
Net Investment Income April 30, 1996
Income
Dividends (net of foreign withholding
taxes of $319,261)..................... $ 3,044,456
Interest.................................. 245,996
--------------
Total income........................... 3,290,452
--------------
Expenses
Management fee............................ 1,932,486
Distribution fee--Class A................. 278,620
Distribution fee--Class B................. 1,264,514
Distribution fee--Class C................. 22,779
Transfer agent's fees and expenses........ 742,000
Custodian's fees and expenses............. 258,000
Reports to shareholders................... 81,000
Registration fees......................... 68,000
Directors' fees and expenses.............. 44,000
Legal fees and expenses................... 32,000
Audit fees and expenses................... 25,000
Insurance expense......................... 5,000
Miscellaneous............................. 17,781
--------------
Total operating expenses............... 4,771,180
--------------
Net investment loss.......................... (1,480,728)
--------------
Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions
Net realized gain (loss) on:
Investment transactions................... 31,963,013
Foreign currency transactions............. (247,871)
--------------
31,715,142
--------------
Net change in unrealized
appreciation/depreciation on:
Investments............................... 16,112,441
Foreign currencies........................ (86,198)
--------------
16,026,243
--------------
Net gain on investments and foreign
currencies................................. 47,741,385
--------------
Net Increase in Net Assets
Resulting from Operations.................... $ 46,260,657
--------------
--------------
</TABLE>
PRUDENTIAL GLOBAL FUND, INC.
Statement of Changes in Net Assets (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) April 30, October 31,
in Net Assets 1996 1995
<S> <C> <C>
Operations
Net investment loss....... $ (1,480,728) $ (2,260,923)
Net realized gain on
investment and foreign
currency
transactions........... 31,715,142 25,315,122
Net change in unrealized
appreciation/depreciation
of investments and
foreign currencies..... 16,026,243 1,174,619
----------------- -------------
Net increase in net assets
resulting from
operations............. 46,260,657 24,228,818
----------------- -------------
Net equalization
credits................ -- 712,010
----------------- -------------
Distributions paid to
shareholders
from net realized gains
on investments and
foreign currency
transactions
Class A................ (10,455,367) (1,006,573)
Class B................ (12,606,608) (5,394,512)
Class C................ (183,380) (20,921)
----------------- -------------
(23,245,355) (6,422,006)
----------------- -------------
Fund share transactions (net
of share conversions) (Note
6)
Proceeds from shares
sold................... 284,497,956 323,054,908
Net asset value of shares
issued in reinvestment
of distributions....... 22,066,129 6,072,122
Cost of shares
reacquired............. (253,014,759) (338,953,005)
----------------- -------------
Net increase (decrease) in
net assets from Fund share
transactions............... 53,549,326 (9,825,975)
----------------- -------------
Total increase............... 76,564,628 8,692,847
Net Assets
Beginning of period.......... 494,232,814 485,539,967
----------------- -------------
End of period................ $ 570,797,442 $ 494,232,814
----------------- -------------
----------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
8 See Notes to Financial Statements.
<PAGE>
<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 losses on foreign currency transactions of $247,871 represent net
foreign exchange gains or losses from holdings 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.
Forward Currency Contracts: A forward currency contract is a commitment to
purchase or sell a foreign currency at a future date at a negotiated forward
rate. The Fund enters into forward currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings or on specific receivables and payables denominated in a foreign
currency. The contracts are valued daily at current exchange rates and any
unrealized gain or loss is included in net unrealized appreciation or
depreciation on investments. Gain or loss is realized on the settlement date of
the contract equal to the difference between the settlement value of the
original and renegotiated forward contracts. This gain or loss, if any, is
included in net realized gain (loss) on foreign currency transactions. Risks may
arise upon entering into these contracts from the potential inability of the
counterparties to meet the terms of their contracts.
Securities Transactions and Net 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. Expenses are recorded on the
- --------------------------------------------------------------------------------
9 -----
<PAGE>
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- --------------------------------------------------------------------------------
accrual basis which may require the use of certain estimates by management.
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: Effective November 1, 1995, the Fund discontinued the accounting
practice of equalization. Equalization is a practice whereby a portion of the
proceeds from sales and costs of repurchases of capital 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. The balance of $3,655,851 of undistributed net investment income at
October 31, 1995, resulting from equalization was transferred to paid-in capital
in excess of par. Such reclassification has no effect on net assets, results of
operations, or net asset value per share.
Reclassification of Capital Accounts: The Fund accounts and reports for
distributions to shareholders in accordance with the American Institute of
Certified Public Accountants 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 loss by $247,871,
and increase accumulated net realized gain on investments and foreign currency
transactions by $247,871 for the six months ended April 30, 1996.
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 acted as the distributor of the Class A shares of the
Fund through January 1, 1996. Effective January 2, 1996 Prudential Securities
Incorporated (``PSI'') became the distributor of the Class A shares of the Fund
and is serving the Fund under the same terms and conditions as under the
arrangement with PMFD. PSI is also distributor of the Class B, Class C and Class
Z shares of the Fund. The Fund compensated PMFD and PSI 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 PSI and PMFD for
the period November 1, 1995 through January 1, 1996 with respect to Class A
shares for distribution-related activities 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. Payments
made pursuant to the Plans were .25 of 1%, .92% 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, 1996.
PMFD and PSI have advised the Fund that they have received approximately
$198,600 in front-end sales charges resulting from sales of Class A shares
during the six months ended April 30, 1996. From these fees, PMFD and PSI paid
such sales charges to Pruco Securities Corporation, an affiliated broker-dealer,
which in turn paid commissions to sales persons and incurred other distribution
costs.
- --------------------------------------------------------------------------------
- -----10
<PAGE>
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- --------------------------------------------------------------------------------
PSI has advised the Fund that for the six months ended April 30, 1996, it
received approximately $393,200 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, 1996, the Fund incurred fees of approximately $509,200 for the services of
PMFS. As of April 30, 1996, approximately $90,000 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, 1996, PSI and/or its foreign affiliates
earned approximately $21,417 in brokerage commissions from portfolio
transactions executed on behalf of the Fund.
- ------------------------------------------------------------
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 1996 were $202,129,739 and $190,291,807,
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, 1996 net unrealized appreciation for federal income tax purposes
was $114,153,703 (gross unrealized appreciation--$125,532,005; gross unrealized
depreciation--$11,378,302).
At April 30, 1996, the Fund had outstanding forward currency contracts, both to
purchase and sell foreign currencies, as follows:
<TABLE>
<CAPTION>
Value at
Foreign Currency Settlement Date Current
Purchase Contract Payable Value Depreciation
- -------------------- --------------- ----------- --------------
<S> <C> <C> <C>
Japanese Yen,
expiring 5/15/96-
5/30/96........... $18,989,892 $17,635,003 $ (1,354,889)
--------------- ----------- --------------
--------------- ----------- --------------
</TABLE>
<TABLE>
<CAPTION>
Value at
Foreign Currency Settlement Date Current
Sale Contract Receivable Value Appreciation
- ------------------- --------------- ----------- --------------
<S> <C> <C> <C>
Japanese Yen,
expiring 5/15/96
5/30/96.......... $22,879,958 $17,635,003 $5,244,955
--------------- ----------- --------------
--------------- ----------- --------------
</TABLE>
- ------------------------------------------------------------
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,
1996, the Portfolio had a 1.25% undivided interest in the repurchase agreements
in the joint account. The undivided interest for the Fund represents $20,321,000
in principal amount. As of such date, each repurchase agreement in the joint
account and the value of the collateral therefor were as follows:
Goldman Sachs & Co., 5.33%, in the principal amount of $535,000,000, repurchase
price $535,079,209, due 5/1/96. The value of the collateral including accrued
interest is $545,867,187.
Morgan Stanley & Co., 5.30%, in the principal amount of $22,851,000, repurchase
price $22,854,364, due 5/1/96. The value of the collateral including accrued
interest is $23,347,897.
Smith Barney Inc., 5.33%, in the principal amount of $535,000,000, repurchase
price $535,079,209, due 5/1/96. The value of the collateral including accrued
interest is $545,867,187.
Bear Stearns & Co., 5.32% in the principal amount of $535,000,000, repurchase
price $535,079,055, due 5/1/96. The value of the collateral including accrued
interest is $547,286,203.
- ------------------------------------------------------------
Note 6. Capital
The Fund offers Class A, Class B, Class C shares and Class Z. 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. A special exchange privilege is also available for
shareholders who qualify to purchase Class A shares at net asset value.
Effective March 1, 1996, the
- --------------------------------------------------------------------------------
11 -----
<PAGE>
<PAGE>
Notes to Financial Statements (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- --------------------------------------------------------------------------------
Fund commenced offering Class Z shares. Class Z shares are not subject to any
sales or redemption charge and are offered exclusively for sale to the
participants of the Prudential Securities 401(K) Plan, a defined contribution
plan sponsored by Prudential Securities. There are 500 million shares of common
stock, $.01 par value per share, divided equally into four classes, designated
Class A, Class B, Class C and Class Z 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, 1996:
Shares sold....................... 11,928,186 $ 182,590,419
Shares issued in reinvestment of
distributions................... 671,156 9,959,952
Shares reacquired................. (11,457,372) (176,206,566)
----------- -------------
Net increase in shares outstanding
before conversion............... 1,141,970 16,343,805
Shares issued upon conversion from
Class B......................... 483,180 7,431,087
Shares reacquired upon conversion
into Class Z.................... (2,469,994) (38,062,781)
----------- -------------
Net decrease in shares
outstanding..................... (844,844) $ (14,287,889)
----------- -------------
----------- -------------
Year ended October 31, 1995:
Shares sold....................... 14,310,794 $ 203,989,259
Shares issued in reinvestment of
distributions................... 73,418 983,611
Shares reacquired................. (15,121,426) (217,547,014)
----------- -------------
Net decrease in shares outstanding
before conversion............... (737,214) (12,574,144)
Shares issued upon conversion from
Class B......................... 10,085,947 130,068,677
----------- -------------
Net increase in shares
outstanding..................... 9,348,733 $ 117,494,533
----------- -------------
----------- -------------
<CAPTION>
Class B
- ----------------------------------
<S> <C> <C>
Six months ended April 30, 1996:
Shares sold....................... 6,340,929 $ 94,037,568
Shares issued in reinvestment of
distributions................... 831,912 11,929,613
Shares reacquired................. (4,856,078) (72,145,369)
----------- -------------
Net increase in shares outstanding
before conversion............... 2,316,763 33,821,812
Shares reacquired upon conversion
into Class A.................... (500,379) (7,431,087)
----------- -------------
Net increase in shares
outstanding..................... 1,816,384 $ 26,390,725
----------- -------------
----------- -------------
<CAPTION>
Shares Amount
----------- -------------
<S> <C> <C>
Year ended October 31, 1995:
Shares sold....................... 8,422,470 $ 116,118,701
Shares issued in reinvestment of
distributions................... 390,179 5,070,014
Shares reacquired................. (8,836,648) (120,783,109)
----------- -------------
Net decrease in shares outstanding
before conversion............... (23,999) 405,606
Shares reacquired upon conversion
into Class A.................... (10,370,444) (130,068,677)
----------- -------------
Net decrease in shares
outstanding..................... (10,394,443) $(129,663,071)
----------- -------------
----------- -------------
<CAPTION>
Class C
- ----------------------------------
<S> <C> <C>
Six months ended April 30, 1996:
Shares sold....................... 156,459 $ 2,407,131
Shares issued in reinvestment of
distributions................... 12,313 176,564
Shares reacquired................. (42,027) (713,347)
----------- -------------
Net increase in shares
outstanding..................... 126,745 $ 1,870,348
----------- -------------
----------- -------------
Year ended October 31, 1995:
Shares sold....................... 210,290 $ 2,946,948
Shares issued in reinvestment of
distributions................... 1,419 18,497
Shares reacquired................. (46,329) (622,882)
----------- -------------
Net increase in shares
outstanding..................... 165,380 $ 2,342,563
----------- -------------
----------- -------------
<CAPTION>
Class Z
- ----------------------------------
<S> <C> <C>
March 1, 1996(a) through
April 30, 1996:
Shares sold....................... 350,023 $ 5,462,838
Shares reacquired................. (253,261) (3,949,477)
----------- -------------
Net increase in shares outstanding
before conversion............... 96,762 1,513,361
Shares issued upon conversion from
Class A......................... 2,469,994 38,062,781
----------- -------------
Net increase in shares
outstanding..................... 2,566,756 $ 39,576,142
----------- -------------
----------- -------------
</TABLE>
- ---------------
(a) Commencement of offering of Class Z shares.
- ------------------------------------------------------------
Note 7. Distributions
On May 8, 1996, the Board of Directors of the Fund declared a long-term capital
gain distribution of $0.012 per share for Class A, B, C and Z shares
respectively, payable on May 24, 1996 to shareholders of record on May 15, 1996.
- --------------------------------------------------------------------------------
- -----12
<PAGE>
<PAGE>
Financial Highlights (Unaudited) PRUDENTIAL GLOBAL FUND, INC.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class
A
- ----------------------------------------------------------------------
Six
Months
Ended Year
Ended October 31,
April 30,
- --------------------------------------------------------
1996 1995 1994
1993 1992 1991
--------- -------- -------
------- ------- -------
<S> <C> <C> <C>
<C> <C> <C>
PER SHARE OPERATING PERFORMANCE(a):
Net asset value, beginning of period... $ 15.52 $ 14.89 $ 13.17
$ 9.58 $ 10.08 $ 9.19
--------- -------- -------
------- ------- -------
Income from investment operations
Net investment income (loss)........... (.02 ) .01 (.04)
.02 .03 .07
Net realized and unrealized gain (loss)
on investment and foreign currency
transactions........................ 1.36 .81 1.76
3.57 (.53) 1.02
--------- -------- -------
------- ------- -------
Total from investment operations.... 1.34 .82 1.72
3.59 (.50) 1.09
--------- -------- -------
------- ------- -------
Less distributions
Dividends from net investment income... -- -- --
-- -- (.16)
Distributions paid to shareholders from
net realized gains on investment and
foreign currency transactions....... (.72 ) (.19) --
-- -- (.04)
--------- -------- -------
------- ------- -------
Total distributions................. (.72 ) (.19) --
-- -- (.20)
--------- -------- -------
------- ------- -------
Net asset value, end of period......... $ 16.14 $ 15.52 $ 14.89
$ 13.17 $ 9.58 $ 10.08
--------- -------- -------
------- ------- -------
--------- -------- -------
------- ------- -------
TOTAL RETURN(b):....................... 9.01 % 5.74% 13.06%
37.47% (4.96)% 12.11%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000).......... $217,304 $222,002 $73,815
$42,021 $13,973 $14,154
Average net assets (000)............... $224,121 $174,316 $58,455
$21,409 $14,758 $10,593
Ratios to average net assets:
Expenses, including
distribution fees................ 1.49 %(c) 1.51% 1.55%
1.56% 1.71% 1.72%
Expenses, excluding
distribution fees................ 1.24 %(c) 1.26% 1.30%
1.36% 1.51% 1.52%
Net investment income (loss)........ (.26) %(c) .10% (0.29)%
0.20% 0.22% 0.65%
For Class A, B, C and Z shares:
Portfolio turnover rate(d)............. 38 % 50% 49%
69% 58% 126%
Average commission rate paid per
share............................... $ 0.0357 N/A N/A
N/A N/A N/A
</TABLE>
- ---------------
(a) Based on average shares outstanding, by class.
(b) 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 less than a full year are not
annualized.
(c) Annualized.
(d) Portfolio turnover is calculated on the basis of the Fund as a whole without
distinguishing between the classes of shares issued.
- --------------------------------------------------------------------------------
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,
- ------------------------------------------------------------
1996 1995 1994
1993 1992 1991
--------- -------- --------
-------- -------- --------
<S> <C> <C> <C>
<C> <C> <C>
PER SHARE OPERATING PERFORMANCE(a):
Net asset value, beginning of period... $ 15.03 $ 14.53 $ 12.94
$ 9.47 $ 10.05 $ 9.14
--------- -------- --------
-------- -------- --------
Income from investment operations
Net investment loss.................... (.06) (.11) (.13)
(.04) (.05) --
Net realized and unrealized gain (loss)
on investment and foreign currency
transactions........................ 1.31 .80 1.72
3.51 (.53) 1.02
--------- -------- --------
-------- -------- --------
Total from investment operations.... 1.25 .69 1.59
3.47 (.58) 1.02
--------- -------- --------
-------- -------- --------
Less distributions
Dividends from net investment income... -- -- --
-- -- (.07)
Distributions paid to shareholders from
net realized gains on investment and
foreign currency transactions....... (.72) (.19) --
-- -- (.04)
--------- -------- --------
-------- -------- --------
Total distributions................. (.72) (.19) --
-- -- (.11)
--------- -------- --------
-------- -------- --------
Net asset value, end of period......... $ 15.56 $ 15.03 $ 14.53
$ 12.94 $ 9.47 $ 10.05
--------- -------- --------
-------- -------- --------
--------- -------- --------
-------- -------- --------
TOTAL RETURN(b):....................... 8.69% 4.98% 12.29%
36.64% (5.77)% 11.29%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)........ $ 306,196 $268,498 $410,520
$251,133 $178,438 $249,582
Average net assets (000)............... $ 277,073 $287,656 $345,771
$183,741 $210,464 $253,866
Ratios to average net assets:
Expenses, including
distribution fees................ 2.16%(c) 2.19% 2.24%
2.24% 2.40% 2.44%
Expenses, excluding
distribution fees................ 1.24%(c) 1.27% 1.30%
1.36% 1.51% 1.53%
Net investment income (loss)........ (.88)%(c) (.84)%
(0.97)% (0.39)% (0.47)% (0.01)%
<CAPTION>
Class C
Class Z
- ------------------------------------------ ----------
August
1,
Year
1994(d) March 1,
Six Months Ended
Through 1996 (e)
Ended October
October Through
April 30, 31, 31,
April 30,
1996 1995 1994
1996
------------ ----------
- ---------- ----------
<S> <C> <C> <C>
<C>
PER SHARE OPERATING PERFORMANCE(a):
Net asset value, beginning of period... $15.03 $14.53
$14.03 $ 15.42
----- -----
- -----
----------
Income from investment operations
Net investment loss.................... (.07) (.11)
(.03) .02
Net realized and unrealized gain (loss)
on investment and foreign currency
transactions........................ 1.32 .80
.53 .71
----- -----
- -----
----------
Total from investment operations.... 1.25 .69
.50 .73
----- -----
- -----
----------
Less distributions
Dividends from net investment income... -- --
- -- --
Distributions paid to shareholders from
net realized gains on investment and
foreign currency transactions....... (.72) (.19)
- -- --
----- -----
- -----
----------
Total distributions................. (.72) (.19)
- -- --
----- -----
- -----
----------
Net asset value, end of period......... $15.56 $15.03
$14.53 $ 16.15
----- -----
- -----
----- -----
- -----
----------
----------
TOTAL RETURN(b):....................... 8.69% 4.98%
3.56% 4.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)........ $5,836 $3,733
$1,205 $ 41,461
Average net assets (000)............... $4,851 $2,284 $
630 $ 39,528
Ratios to average net assets:
Expenses, including
distribution fees................ 2.24%(c) 2.25%
2.63%(c) 1.24%(c)
Expenses, excluding
distribution fees................ 1.24%(c) 1.25%
1.63%(c) 1.24%(c)
Net investment income (loss)........ (.91)%(c) (.76)%
(1.21)%(c) .27%(c)
</TABLE>
- ---------------
(a) Based on average shares outstanding, by class.
(b) 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.
(c) Annualized.
(d) Commencement of offering of Class C shares.
(e) Commencement of offering of Class Z shares.
- --------------------------------------------------------------------------------
- -----14 See Notes to Financial Statements.
<PAGE>
Getting
The Most
From Your
Prudential
Mutual
Fund
When you invest through Prudential Mutual Funds, you receive financial advice
through a Prudential Securities financial advisor or Prudential/Pruco
Securities registered representative. Your advisor or representative can
provide you with the following services:
There's No Reward Without Risk; But Is This Risk Worth It?
Your financial advisor or registered representative can help you match the
reward you seek with the risk you can tolerate. And risk can be difficult to
gauge -sometimes even the simplest investments bear surprising risks. The
educated investor knows that markets seldom move in just one direction - there
are times when a market sector or asset class will lose value or provide little
in the way of total return. Managing your own expectations is easier with help
from someone who understands the markets and who knows you!
Keeping Up With The Joneses.
A financial advisor or registered representative can help you wade through the
numerous mutual funds available to find the ones that fit your own individual
investment profile and risk tolerance. While the newspapers and popular
magazines are full of advice about investing, they are aimed at generic groups
of people or representative individuals, not at you personally. Your financial
advisor or registered representative will review your investment objectives
with you. This means you can make financial decisions based on the assets and
liabilities in your current portfolio and your risk tolerance - not just based
on the current investment fad.
Buy Low, Sell High.
Buying at the top of a market cycle and selling at the bottom are among the
most common investor mistakes. But sometimes it's difficult to hold on to an
investment when it's losing value every month. Your financial advisor or
registered representative can answer questions when you're confused or worried
about your investment, and remind you that you're investing for the long haul.
<PAGE>
Getting
The Most
From Your
Prudential
Mutual
Fund
How many times have you read these letters - or other financial materials - and
stumbled across a word that you don't understand?
Many shareholders have run into the same problem. We'd like to help. So we'll
use this space from time to time to explain some of the words you might have
read, but not understood. And if you have a favorite word that no one can
explain to your satisfaction, please write to us.
Basis Point: One 1/100th of 1%. For example, one half of one percentage point
is 50 basis points.
Call Option: A contract giving the holder a right to buy stocks or bonds at a
predetermined price (called the strike price) before a predetermined expiration
date. A buyer of a call option generally expects to benefit from a rise in the
price of the stock or bond.
Capital Gain/Capital Loss: The difference between the cost of a capital asset
(for example, a stock, bond or mutual fund share) and its selling price. Under
current law the federal income tax rate for individuals on a long-term capital
gain is up to 28%.
Collateralized Mortgage Obligations (CMOs): Pools of mortgage-backed securities
sliced in maturity ranges that bear differing interest rates. These instruments
are sensitive to changes in interest rates and homeowner refinancing activity.
They are subject to prepayment and maturity extension risk.
Derivatives: Securities that derive their value from another security. The rate
of return of these financial products rises and falls - sometimes very suddenly
- - in response to changes in some specific interest rate, currency, stock or
other variable.
Discount Rate: The interest rate charged by the Federal Reserve on loans to
banks and other depository institutions.
Federal Funds Rate: The interest rate charged by one bank to another on
overnight loans.
Futures Contract: An agreement to deliver a specific amount of a commodity or
financial instruments at a set price at a stipulated time in the future.
Leverage: The use of borrowed assets to enhance return on equity. The
expectation is that the interest rate charged will be lower than the return on
the investment. While leverage can increase profits, it can also magnify
losses.
Liquidity: The ease with which a financial instrument (or mutual fund) can be
bought or sold (converted into cash) in the financial markets.
Option: An agreement to buy something, such as shares of stock, by a certain
time for a specified price. An option need not be exercised. In fact, most
expire unexercised.
Price/Earnings Ratio: The price of a share of stock divided by the earnings per
share for a 12-month period.
Spread: The difference between two values; most often used to describe the
difference between prices bid and asked for a security.
Yankee Bond: A bond denominated in U.S. dollars but sold by a foreign company
or government in the U.S. market.
<PAGE>
Prudential Mutual Funds
One Seaport Plaza
New York, NY 10292
(800) 225-1852
http:\\www.prudential.com
Directors
Stephen C. Eyre
Delayne D. Gold
Don G. Hoff
Harry A. Jacobs, Jr.
Sidney R. Knafel
Robert E. LaBlanc
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 C. Torres, Treasurer
Stephen M. Ungerman, Assistant Treasurer
S. Jane Rose, Secretary
Ellyn C. Acker, Assistant 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 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 Auditors
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004
The views expressed in this report and information about the Fund's portfolio
holdings are for the period covered by this report and are subject to change
thereafter.
The accompanying financial statements as of April 30, 1996 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.
<PAGE>
<PAGE>
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