PRUDENTIAL WORLD FUND INC, N-30D, 1998-07-13

PRUDENTIAL WORLD FUND INC
N-30D, 1998-07-13

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(ICON)
Prudential
World
Fund, Inc.
- -------------------
Global Series

SEMI
ANNUAL
REPORT

April 30, 1998

(LOGO)

<PAGE>

Prudential World Fund, Inc.
Global Series

Performance At A Glance.
Both the U.S. and European stock markets surged over the six months ended April
30, 1998, as interest rates fell and corporate restructuring accelerated
European economic growth. We were competitive with the average Lipper Global
Fund because we held 90% of our investments in the U.S. and Europe, and
reduced our holdings in Japan and the rest of Asia.

Cumulative Total Returns1 As of 4/30/98
<TABLE>
<CAPTION>
Six One Five Ten Since
Months Year Years Years Inception2
<S> <C> <C> <C> <C> <C>
Class A 16.11% 22.12% 112.01% N/A 127.35%
Class B 15.75 21.37 104.87 136.16% 499.77
Class C 15.70 21.24 N/A N/A 56.66
Class Z 16.22 22.43 N/A N/A 41.56
Lipper Global
Fund Average3 16.66 27.18 104.18 220.31 ***
</TABLE>

Average Annual Total Returns1 As of 3/31/98
<TABLE>
<CAPTION>
One Five Ten Since
Year Years Years Inception2
<S> <C> <C> <C> <C>
Class A 15.70% 15.47% N/A 9.55%
Class B 16.07 15.75 8.85% 13.59
Class C 19.94 N/A N/A 12.33
Class Z 22.10 N/A N/A 16.86
</TABLE>

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 Investments 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 and a declining
contingent deferred sales charge (CDSC) of 5%, 4%, 3%, 2%, 1% and 1% for six
years for Class B shares. Class C shares have a 1% CDSC for one year. Class B
shares will automatically convert to Class A shares, on a quarterly basis,
approximately seven years after purchase. Class Z shares are not subject to a
sales charge or a distribution fee.

2Inception dates: Class A, 1/22/90; Class B, 5/15/84; Class C, 8/1/94; Class
Z, 3/1/96.

3Lipper returns are for all funds in each share class for the six-month, 1-,
5-, and 10-year periods.

***Lipper Since Inception returns are: 148.40% for Class A, 603.25% for Class
B, 72.96% for Class C, and 46.45% for Class Z.

How Investments Compared.
(As of 4/30/98)
(GRAPH)

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 returns 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 have received 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.

U.S. Taxable Money 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 World Fund -- Global Series invests in U.S. and foreign stocks.
We like companies whose strong earnings growth potential is a result of
significant economic trends, particularly those whose likely impact has not
been fully priced by local stock markets. Because it invests globally, the
Series is subject to the special risks associated with foreign investments,
including currency, political and social risks, and potential illiquidity.
There can be no assurance that the Series will achieve its investment
objective.

Back in the U.S.A.
Despite the rapid rise of the U.S. stock market, we believe its current growth
prospects are more attractive than any others outside of Europe. The Japanese
economic slowdown has benefited the U.S. so far, restraining inflation and
reducing supplier costs. As a global growth fund, we follow the best
opportunities, even when they lead us home.

Strategy Session.
- -------------------------------------------------------------------------------
We reduced our holdings in Japan and the rest of the Pacific by about half over
the six months. A major effort will be necessary to revive the Japanese economy
and the government has shown no signs that it can make it happen soon. It is
becoming clear that Japan's return to economic health will be protracted and
difficult. Japan had bought about a fifth of the Pacific region's exports, so
its economic contraction is a large additional blow to the emerging market
countries there. The threat extends to other emerging markets, which compete
for labor-intensive manufacturing jobs and whose stocks suffer when investors
flee to companies with the most secure earnings. We have halved our small
Pacific Basin holdings and sold our Latin American stocks.

Continental Europe is at the opposite economic pole -- the only part of the
world with vibrant economic growth. We increased our holdings there to 38% of
assets, adding to our financial holdings. Financial firms are benefiting from
the expanding economy, the low interest rates that were a prerequisite for
monetary union, and a restructuring of European financial services. They are
offering popular new products -- such as bank-managed mutual funds -- and the
industry is likely to consolidate. To Credito Italiano, Bank of Ireland, and
Banco Central Hispanoamericano, we added ING in the Netherlands and a pair of
German banks. We took some profits on SAP, Credito Italiano, and Vodafone.

The U.S. market is in a more mature phase of its expansion and its stocks have
grown quite expensive. Nonetheless, the economic decline in Asia has made the
U.S. relatively attractive. We increased our domestic holdings to 41% of our
portfolio. We look for stocks in technology, leisure, and health care whose
prices have not kept up with the market escalation. For example, we bought
stock of Proffitt's, the fourth largest department store chain in the U.S.,
and of HealthSouth.

Portfolio Composition.
Sectors expressed as a percentage of
net assets as of 4/30/98.
(GRAPH)

<PAGE>

What Went Well.
- -------------------------------------------------
Three of our largest holdings are European banks (Credito Italiano, Bank of
Ireland, and Banco Central Hispanoamericano); each had a very strong return
and made a substantial contribution to our performance. The European economy
is shifting into high gear, industries are restructuring, and banks are
benefiting from both the increased financial activity and greater productivity
in their own operations. Banks in Italy and Spain are particularly profiting
from their new mutual fund businesses. We expect the growth of mutual funds to
proceed much faster than the similar growth in the U.S. a decade ago.

The focus on improving productivity has created great markets for software
companies. We took some profits on the German firm SAP, the world leader in
enterprise software. We also own Microsoft. Telecommunications firms also
benefited from the deregulation of European telecommunications on January 1.
The U.K. mobile phone services company Vodafone, the Finnish manufacturer of
mobile phones Nokia, and Telefonica De Espana all contributed substantially to
our return. The U.S. semiconductor component company PMC-Sierra was another
large technology holding that appreciated sharply.

Five Largest Holdings.
2.7% Credito Italiano
Banking
2.7% Banco Central Hispanoamericano
Banking
2.6% Vodafone
Telecommunications
2.6% Bank of Ireland
Banking
2.2% Nokia
Telecommunications Equipment

Expressed as a percentage of net assets as of 4/30/98.

And Not So Well.
- -------------------------------------------------
Our Japanese holdings were a drag on our performance. As it became clear that
Japan was not going to take the strong actions needed to spur its economy, its
stock market and currency value both fell. Only five percent of our assets were
invested in Japan by April 30.

Although we had reduced our exposure to Asia, ripple effects hit some of our
technology holdings in the U.S.: Oracle, Electronics for Imaging (which makes
color desktop publishing components), and Adaptec. We sold Oracle during the
period and have since sold Adaptec. We expect Electronics for Imaging to adapt
quickly to the changing market conditions.

Looking Ahead.
- -------------------------------------------------
Through most of the past six months, stock markets have been defensive --
preferring companies with diverse and secure earnings. Although we saw signs
in April of greater interest in companies that profit from economic expansion,
investors have not yet decided it is safe to be bullish. We will retain a
defensive cast to our holdings worldwide. We are waiting to see what business
will be shifted out of other emerging markets because of the falling Asian
production costs before we reinvest in Latin America.

<PAGE>

A Conversation With Portfolio Manager Dan Duane.
- -------------------------------------------------------------------------------
Portfolio Manager Dan Duane describes how he likes to find growth stocks.

Q. How do you find the best growth prospects?
A. I like to find an economic trend just beginning in one part of the world
after I have watched it run its course somewhere else. Then I have an edge on
local investors in gauging its potential. There are now several such trends in
Continental Europe.

Just as U.S. investors discovered mutual funds about a decade ago, Southern
Europeans are discovering them now. In Europe, banks are permitted to manage
mutual funds, so they are reaping the growth that the mutual fund industry had
in the U.S. A related trend is the enthusiasm for stock ownership. In the U.K.
under Margaret Thatcher, share ownership was encouraged in all social classes.
This trend is now spreading to Continental Europe, where governments and banks
had owned stocks, but not the middle class. The new mutual funds make it easier
for everyone to participate, but there is still considerable room for this
trend to continue: European households average only 25% of their financial
assets in stocks, compared with 38% in the U.S. The beneficiaries of these
trends are the banks. About 15% of our holdings are banks. Stocks in general
will benefit from the greater demand for ownership.

Q. What other trends do you see?
A. European companies are restructuring to improve their competitiveness. As
Europe moves toward Continent-wide markets -- like the U.S. -- instead of
smaller national markets, competition is increasing. Companies must focus more
narrowly on their core strengths. Financial advisers, such as ING Groep, are
benefiting from the consolidations; software companies, such as SAP, and
outsourcing advisers, such as Hays PLC, also profit from the increased focus
on cost control.

Deregulation is another European trend that we have previewed in the U.S.
Europe deregulated its telecommunications services as of the beginning of 1998.
Privatized telephone service providers and telephone equipment manufacturers
have grown rapidly already. We have gained from owning shares in Nokia,
Telecom Italia, and Telefonica De Espana.

Q. What about the rest of the world?
A. Right now, Europe is the epicenter of growth. Even France and Germany, which
have been over-regulated sluggish giants, are beginning to stir. The United
States has been in the vanguard of many of these changes. We like the software
firms that are benefiting from productivity trends, the health care firms that
are pioneering the rationalization of health care in the U.S., and retailers
primarily because they benefit from the long economic expansion and are
buffered from the impact of events in Asia.

We would have liked to see countries in the Pacific follow the U.S. economic
model: openness in investment and credit decision-making, allowing free markets
to decide how capital is allocated. There is movement in that direction, but
Japan is unfortunately resisting the large-scale restructuring that these
changes would require. The decline of Southeast Asian labor costs and currency
values are creating uncertainties for other emerging markets. We will be very
cautious in investing in the Pacific and in emerging markets.

(PHOTO)
2

<PAGE>

President's Letter June 9, 1998
(PHOTO)
See You On the Net!
Dear Shareholder:
We are proud to be part of the worldwide web and we invite you to visit our two
web sites, if you have not already done so. Yes, we currently offer two
sites -- each with its own distinctive identity.

http://www.prudential.com
The Prudential web site features information on personal investing, retirement
planning, commercial and residential real estate opportunities, as well as
insurance products for life, health, home and property.

You can look up performance data on your Prudential mutual funds, learn about
proven investment strategies, or take one of our many interactive quizzes that
will help guide you in determining long-term goals -- like how much to save
for your child's college education or for your retirement.

http://www.prusec.com
The Prudential Securities Virtual Branch Office is a full-service brokerage web
site specifically designed to provide investors with the information they need
to make informed financial decisions. It was rated the No. 1 full-service
brokerage web site of its type by Financial Net News (February 1998), a
subsidiary of Institutional Investor magazine, and was also rated among the
top corporate web sites by Fortune magazine (Winter 1998).

What investors can find here are -- daily market commentaries, stock quotes,
economic forecasts, product news, and current market research, in addition to
interactive investing programs. Investors, through their Prudential Securities
Financial Advisors, may also enroll in Prudential OnlineR and have access to
their personal account information which includes balances, security values,
transactions and account activities. They can also easily E-mail their
Financial Advisor.

Both sites also contain professional opportunities for people who are searching
for employment or considering a change of career paths.

We plan to make further enhancements to our web pages as the year progresses.
So please, the next time you are "web browsing" or "surfing the net," pay us a
visit. Let us know what you think and what you'd like to see added in the
future.

Sincerely,

Brian M. Storms
President, Prudential Mutual Funds & Annuities

<PAGE>

Portfolio of Investments as of PRUDENTIAL WORLD FUND, INC.
April 30, 1998 (Unaudited) GLOBAL SERIES
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
LONG-TERM INVESTMENTS--97.1%
COMMON STOCKS--95.9%
- ------------------------------------------------------------
Australia--0.9%
280,700 Brambles Industries, Ltd. $ 5,766,134
3,000,000(b) Duke Group 0
1,565,400 FXF Trust 203,457
-------------
5,969,591
- ------------------------------------------------------------
Federal Republic of Germany--5.4%
26,970 Allianz AG 8,291,529
117,228 Dresdner Bank AG 6,339,648
25,750 SAP AG 12,190,198
11,845 Volkswagen AG 9,427,182
-------------
36,248,557
- ------------------------------------------------------------
Finland--2.2%
215,400 Nokia Oyj, Ser. A 14,422,167
- ------------------------------------------------------------
France--7.2%
79,200 Elf Aquitaine SA 10,380,199
64,313 Etablissements Economiques du
Casino Guichard-Perrachon SA 4,305,339
40,300 Legrand SA 10,644,020
7,200 Pinault-Printemps-Redoute SA 5,355,748
60,300 Total SA, Ser. B 7,161,877
107,600 Valeo SA 10,688,505
-------------
48,535,688
- ------------------------------------------------------------
Hong Kong--1.2%
1,345,000 Hutchison Whampoa, Ltd. 8,315,328
- ------------------------------------------------------------
Ireland--2.5%
836,000 Bank of Ireland 17,074,912
- ------------------------------------------------------------
Italy--4.9%
3,447,700 Credito Italiano $ 18,119,157
1,555,000 Fiat SpA 6,188,400
1,134,000 Telecom Italia SpA 8,542,608
-------------
32,850,165
- ------------------------------------------------------------
Japan--5.2%
263,000 Daibiru Corp. 1,761,789
225,000 Daito Trust Construction Co., Ltd. 1,575,051
505,000 Mitsui Marine & Fire Insurance Co.,
Ltd. 2,583,792
868 Nippon Telegraph & Telephone Corp. 7,587,069
692,000 Nomura Securities Co., Ltd. 8,421,219
900,000 Olympus Optical Co., Ltd 7,256,424
105,000 Takefuji Corp. 5,498,832
-------------
34,684,176
- ------------------------------------------------------------
Netherlands--2.7%
175,000 ING Groep N.V. 11,364,311
196,700 Koninklijke Numico N.V. 6,566,719
-------------
17,931,030
- ------------------------------------------------------------
Singapore--0.2%
939,250 Sembawang Maritime, Ltd. 1,013,963
- ------------------------------------------------------------
Spain--4.4%
537,633 Banco Central Hispanoamericano SA 17,882,302
280,900 Telefonica de Espana SA 11,720,291
-------------
29,602,593
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 4
<PAGE>
<PAGE>

Portfolio of Investments as of PRUDENTIAL WORLD FUND, INC.
April 30, 1998 (Unaudited) GLOBAL SERIES
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Sweden--4.4%
208,300 Hennes & Mauritz AB, Ser. B $ 10,838,733
1,648,000 Nordbanken Holding AB 12,128,756
140,000 Skanska AB, Ser. B 6,525,584
-------------
29,493,073
- ------------------------------------------------------------
Switzerland--2.7%
5,800 Novartis AG 9,582,945
5,437 Union Bank of Switzerland 8,751,360
-------------
18,334,305
- ------------------------------------------------------------
United Kingdom--10.8%
321,300 Barclays PLC 9,295,843
295,600 GKN PLC 8,534,999
767,300 Hays PLC 13,058,720
721,300 Johnson Matthey PLC 7,305,830
710,050 Royal & Sun Alliance Insurance
Group PLC 7,951,421
409,800 Siebe PLC 9,215,876
1,567,990 Vodafone Group PLC 17,211,724
-------------
72,574,413
- ------------------------------------------------------------
United States--41.2%
267,300 Adaptec, Inc. (a) 6,331,669
196,500 Adobe Systems, Inc. 9,837,281
251,000 Cendant Corp. (a) 6,275,000
152,400 Cisco Systems, Inc. (a) 11,163,300
269,100 Consolidated Stores Corp. (a) 10,764,000
112,700 Disney (Walt) Co. 14,010,019
208,800 Electronic Arts, Inc. (a) $ 9,657,000
272,000 Electronics for Imaging, Inc. (a) 5,576,000
357,500 Healthsouth Corp. (a) 10,792,031
62,000 Household International, Inc. 8,149,125
268,282 Mattel, Inc. 10,278,554
142,000 Microsoft Corp. (a) 12,797,750
131,900 Mobil Corp. 10,420,100
287,500 PMC-Sierra, Inc. (a) 13,081,250
236,000 Proffitt's, Inc. (a) 9,381,000
50,400 Progressive Corp. 6,826,050
229,900 Quorum Health Group, Inc. 7,385,537
331,800 Safeway Inc. (a) 12,691,350
124,000 Starwood Hotels and Resorts 6,223,250
242,000 Tenet Healthcare Corp. (a) 9,059,875
235,000 Teradyne, Inc. (a) 8,577,500
191,200 Texas Instruments, Inc. 12,248,750
381,100 The Limited, Inc. 12,790,669
117,000 Tiffany & Co. 5,323,500
151,800 Time Warner, Inc. 11,916,300
185,400 Transocean Offshore, Inc. 10,359,225
213,200 USA Waste Services, Inc. (a) 10,460,125
26,700 Wells Fargo & Co. 9,838,950
110,200 WorldCom, Inc. (a) 4,717,938
-------------
276,933,098
-------------
Total common stocks
(cost US$453,033,724) 643,983,059
-------------
PREFERRED STOCKS--1.2%
- ------------------------------------------------------------
Federal Republic of Germany--1.2%
8,700 Wella AG
(cost US$6,471,737) 7,922,306
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 5
<PAGE>
<PAGE>

<TABLE>
<S> <C>
Banking............................................... 13.3%
Retail................................................ 10.6
Computer Software & Services.......................... 8.3
Telecommunications.................................... 7.4
Electronic Components & Instruments................... 6.8
Finance............................................... 6.4
Automobiles & Auto Parts.............................. 5.2
Health Services....................................... 4.1
Insurance............................................. 3.8
Leisure & Tourism..................................... 3.0
Business and Public Services.......................... 2.8
Electrical & Electronics.............................. 2.7
Oil & Gas Exploration/Production...................... 2.6
Telecommunications Equipment.......................... 2.2
Broadcasting & Publishing............................. 1.8
Waste Management...................................... 1.6
Energy Sources........................................ 1.6
Recreation & Other Consumer Goods..................... 1.5
Oil Services.......................................... 1.5
Medical Products...................................... 1.4
Machinery & Engineering............................... 1.4
Multi-Industry........................................ 1.2
Cosmetics............................................. 1.2
Precious Metals....................................... 1.1
Food & Household Products............................. 1.0
Building & Construction............................... 1.0
Business Services..................................... 0.9
Property Investment................................... 0.5
Energy Equipment & Services........................... 0.2
Repurchase Agreement.................................. 1.8
-----
98.9%
Other assets in excess of liabilities................. 1.1
-----
100.0%
-----
-----
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 6
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Statement of Assets and Liabilities (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Assets April 30, 1998
<S> <C>
Investments, at value (cost $471,687,461)................................................................... $664,304,817
Foreign currency, at value (cost $12,248,000)............................................................... 12,352,894
Receivable for Series shares sold........................................................................... 3,635,577
Dividends and interest receivable........................................................................... 1,658,072
Forward currency contracts - amount receivable from counterparties.......................................... 1,165,755
Receivable for investments sold............................................................................. 173,454
Deferred expenses and other assets.......................................................................... 9,380
--------------
Total assets............................................................................................. 683,299,949
--------------
Liabilities
Payable for investments purchased........................................................................... 6,903,802
Payable for Series shares reacquired........................................................................ 2,248,459
Forward currency contracts - amount payable to counterparties............................................... 948,531
Accrued expenses and other liabilities...................................................................... 436,401
Management fee payable...................................................................................... 412,664
Distribution fee payable.................................................................................... 321,532
Withholding taxes payable................................................................................... 144,308
--------------
Total liabilities........................................................................................ 11,415,697
--------------
Net Assets.................................................................................................. $671,884,252
--------------
--------------
Net assets were comprised of:
Common stock, at par..................................................................................... $ 388,908
Paid-in capital in excess of par......................................................................... 447,534,148
--------------
447,923,056
Accumulated net investment loss.......................................................................... (2,337,995)
Accumulated net realized gain on investments............................................................. 33,386,975
Net unrealized appreciation on investments and foreign currencies........................................ 192,912,216
--------------
Net assets, April 30, 1998.................................................................................. $671,884,252
--------------
--------------
Class A:
Net asset value and redemption price per share
($278,976,735 / 15,704,623 shares of common stock issued and outstanding)............................. $17.76
Maximum sales charge (5% of offering price).............................................................. .93
--------------
Maximum offering price to public......................................................................... $18.69
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($335,677,333 / 19,935,904 shares of common stock issued and outstanding)............................. $16.84
--------------
--------------
Class C:
Net asset value, offering price and redemption price per share
($11,552,481 / 686,214 shares of common stock issued and outstanding)................................. $16.84
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($45,677,703 / 2,564,084 shares of common stock issued and outstanding)............................... $17.81
--------------
--------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 7
<PAGE>
<PAGE>

PRUDENTIAL WORLD FUND, INC.
GLOBAL SERIES
Statement of Operations (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
April 30,
Net Investment Income 1998
<S> <C>
Income
Dividends (net of foreign withholding taxes
of $317,001)............................. $ 3,269,363
Interest.................................... 447,078
-----------
Total income............................. 3,716,441
-----------
Expenses
Management fee.............................. 2,344,603
Distribution fee--Class A................... 317,981
Distribution fee--Class B................... 1,481,363
Distribution fee--Class C................... 49,291
Transfer agent's fees and expenses.......... 706,000
Custodian's fees and expenses............... 292,000
Reports to shareholders..................... 78,000
Registration fees........................... 39,000
Audit fee................................... 17,000
Directors' fees and expenses................ 15,000
Legal fees and expenses..................... 14,000
Insurance expense........................... 6,000
Miscellaneous............................... 6,873
-----------
Total operating expenses................. 5,367,111
Loan interest expense....................... 2,624
-----------
Total expenses........................... 5,369,735
-----------
Net investment loss............................ (1,653,294)
-----------
Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions
Net realized gain (loss) on:
Investment transactions..................... 38,989,207
Foreign currency transactions............... (569,565)
-----------
38,419,642
-----------
Net change in unrealized appreciation on:
Investments................................. 56,988,298
Foreign currencies.......................... 344,363
-----------
57,332,661
-----------
Net gain on investments and foreign
currencies.................................. 95,752,303
-----------
Net Increase in Net Assets
Resulting from Operations...................... $94,099,009
-----------
-----------
</TABLE>

PRUDENTIAL WORLD FUND, INC.
GLOBAL SERIES
Statement of Changes in Net Assets (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase April 30, October 31,
in Net Assets 1998 1997
<S> <C> <C>
Operations
Net investment loss.......... $ (1,653,294) $ (2,282,791)
Net realized gain on
investment and foreign
currency transactions..... 38,419,642 65,592,973
Net change in unrealized
appreciation on
investments and foreign
currencies................ 57,332,661 17,698,660
-------------- --------------
Net increase in net assets
resulting from
operations................ 94,099,009 81,008,842
-------------- --------------
Dividends and distributions
(Note 1)
Distributions in excess of
net investment income
Class A................... (1,595,601) (672,140)
Class B................... (197,130) (955,146)
Class C................... (581) (22,662)
Class Z................... (393,171) (115,267)
-------------- --------------
(2,186,483) (1,765,215)
-------------- --------------
Distributions from net
realized capital gains
Class A................... (25,964,780) (17,584,834)
Class B................... (35,285,427) (24,988,935)
Class C................... (1,039,855) (592,898)
Class Z................... (4,398,597) (3,015,652)
-------------- --------------
(66,688,659) (46,182,319)
-------------- --------------
Series share transactions (net
of share conversions) (Note
7)
Proceeds from shares sold.... 210,307,980 1,364,574,496
Net asset value of shares
issued in reinvestment of
distributions............. 65,705,032 45,634,720
Cost of shares reacquired.... (277,095,911) (1,405,314,341)
-------------- --------------
Net increase (decrease) in net
assets from Series share
transactions................. (1,082,899) 4,894,875
-------------- --------------
Total increase.................. 24,140,968 37,956,183
Net Assets
Beginning of period............. 647,743,284 609,787,101
-------------- --------------
End of period................... $ 671,884,252 $ 647,743,284
-------------- --------------
-------------- --------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 8
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) GLOBAL SERIES
- -------------------------------------------------------------------------------
Prudential World Fund, Inc. (the 'Fund') is registered under the Investment
Company Act of 1940, as an open-end, diversified management investment company
and currently consists of two series: the Global Series and the International
Stock Series. The Global Series (the 'Series') commenced investment operations
in May, 1984. The investment objective of the Series 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 and the Series 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.
Any security for which a reliable market quotation is unavailable is valued at
fair value considering factors determined in good faith by the investment
adviser under procedures established by and under the general supervision of the
Fund's Board of Directors.
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.
All securities are valued as of 4:15 p.m., New York time.
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 rates of exchange;
(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 period, 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 period-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 period. Accordingly, these realized foreign currency gains
(losses) are included in the reported net realized gains (losses) on investment
transactions.
Net realized gains (losses) on foreign currency transactions 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 period-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
- --------------------------------------------------------------------------------
9
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) GLOBAL SERIES
- -------------------------------------------------------------------------------
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 accrual basis which may require
the use of certain estimates by management.
Net investment income (loss), other than distribution fees, and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
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.
Taxes: For federal income tax purposes, each series in the Fund is treated as a
separate taxpaying entity. It is the intent of the Series 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.
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 for the
Series of applying this statement was to increase accumulated net investment
loss and increase accumulated net realized gain on investment by $569,565 for
realized foreign currency losses during the six months ended April 30, 1998. Net
investment income, net realized gains and net assets were not affected by this
change.
Note 2. Agreements
The Fund has a management agreement with Prudential Investments Fund Management
LLC ('PIFM'). Pursuant to this agreement, PIFM has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PIFM has entered into a subadvisory agreement with The Prudential
Investment Corporation ('PIC'); PIC furnishes investment advisory services in
connection with the management of the Series. PIFM 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 PIFM is computed daily and payable monthly, at an annual
rate of .75 of 1% of the average daily net assets of the Series.
The Fund has a distribution agreement with Prudential Securities Incorporated
('PSI'), which acts as the distributor of the Class A, Class B, Class C and
Class Z shares of the Fund. The Fund compensates 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 PSI. The distribution fees are accrued daily and payable monthly. No
distribution or service fees are paid to PSI as distributor for the Class Z
shares of the Fund.
Pursuant to the Class A Plan, the Series compensates PSI 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. Pursuant to the Class B
and C Plans, the Series compensates PSI for distribution-related activities at
the annual rate of .75 of 1% of the average daily net assets of Class B shares
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%, .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, 1998.
PSI has advised the Series that it has received approximately $125,800 in
front-end sales charges resulting from sales of Class A shares during the six
months ended April 30, 1998. From these fees, PSI paid such sales charges to
affiliated broker-dealers, which in turn paid commissions to salespersons and
incurred other distribution costs.
PSI has advised the Series that during the six months ended April 30, 1998, it
received approximately $395,400 and $2,300 in contingent deferred sales charges
imposed upon certain redemptions by Class B and C shareholders, respectively.
- --------------------------------------------------------------------------------
10
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) GLOBAL SERIES
- -------------------------------------------------------------------------------
PSI, PIFM and PIC are indirect, wholly owned subsidiaries of The Prudential
Insurance Company of America.
- ------------------------------------------------------------
Note 3. Other Transactions With Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), a wholly owned subsidiary of PIFM,
serves as the Fund's transfer agent and during the six months ended April 30,
1998, the Series incurred fees of approximately $643,100 for the services of
PMFS. As of April 30, 1998, approximately $108,500 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 nonaffiliates.
For the six months ended April 30, 1998, PSI and/or its foreign affiliates
earned approximately $2,800 in brokerage commissions from portfolio transactions
executed on behalf of the Series.
- ------------------------------------------------------------
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 1998 were $222,677,936 and $280,965,227,
respectively.
The United States federal income tax basis of the Series' investments at April
30, 1998 was $471,748,562 and, accordingly, net unrealized appreciation for
federal income tax purposes was $192,556,255 (gross unrealized
appreciation--$211,523,671; gross unrealized depreciation--$18,967,416).
At April 30, 1998, the Fund had outstanding forward currency contracts, to
purchase and sell foreign currencies, as follows:
<TABLE>
<CAPTION>
Value at
Foreign Currency Settlement Date Current
Purchase Contracts Payable Value Depreciation
<S> <C> <C> <C>
- ---------------------- --------------- ----------- -------------
Japanese Yen,
expiring 5/21/98..... $14,953,991 $14,005,460 $(948,531)
-------------
-------------
</TABLE>

<TABLE>
<CAPTION>
Value at
Foreign Currency Settlement Date Current
Sale Contracts Receivable Value Appreciation
<S> <C> <C> <C>
- ------------------------- --------------- ----------- -------------
Japanese Yen,
expiring 5/21/98........ $15,000,000 $14,005,460 $ 994,540
Japanese Yen,
expiring 10/1/98........ 18,916,661 18,745,446 171,215
-------------
$ 1,165,755
-------------
-------------
</TABLE>

Note 5. Joint Repurchase Agreement Account
The Fund, 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, 1998, the Series
had a 1.06% undivided interest in the repurchase agreements in the joint
account. The undivided interest for the Series represents $12,182,000 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., Inc., 5.53%, in the principal amount of $310,000,000,
repurchase price $310,047,619, due 5/1/98. The value of the collateral including
accrued interest was $316,688,713.
Credit Suisse First Boston Corp., 5.54%, in the principal amount of
$310,000,000, repurchase price $310,047,706, due 5/1/98. The value of the
collateral including accrued interest was $321,763,994.
J.P. Morgan Securities, Inc., 5.53%, in the principal amount of $310,000,000,
repurchase price $310,047,619, due 5/1/98. The value of the collateral including
accrued interest was $316,200,983.
UBS Securities LLC, 5.375%, in the principal amount of $218,770,000, repurchase
price $218,802,664, due 5/1/98. The value of the collateral including accrued
interest was $223,146,143.
- ------------------------------------------------------------
Note 6. Borrowings
The Fund, along with other affiliated registered investment companies (the
'Funds'), has a credit agreement (the 'Agreement') with an unaffiliated lender.
The maximum commitment under the Agreement is $200,000,000. Interest on any such
borrowings outstanding will be at market rates. The purpose of the Agreement is
to serve as an alternative source of funding for capital share redemptions. The
Funds pay a commitment fee at an annual rate of .055 of 1% on the unused portion
of the credit facility. The commitment fee is accrued and paid quarterly on a
pro rata basis by the Funds. The Agreement expired on December 30, 1997 and has
been extended through December 29, 1998 under the same terms.
The Series utilized the line of credit during the six months ended April 30,
1998. The average daily balance the Series had outstanding during the year was
approximately $2,212,714 at a weighted average interest rate of approximately
6.18%.
- --------------------------------------------------------------------------------
11
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) GLOBAL SERIES
- -------------------------------------------------------------------------------
Note 7. Capital
The Fund offers Class A, Class B, Class C and Class Z 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. A special exchange privilege is also available for
shareholders who qualify to purchase Class A shares at net asset value. Class Z
shares are not subject to any sales or redemption charge and are offered
exclusively for sale to a limited group of investors.
There are 500 million authorized shares of $.01 par value common stock, 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, 1998:
Shares sold...................... 5,194,370 $ 84,339,718
Shares issued in reinvestment of
distributions.................. 1,777,824 26,169,570
Shares reacquired................ (6,673,037) (109,365,659)
----------- ---------------
Net increase in shares
outstanding before
conversion..................... 299,157 1,143,629
Shares issued upon conversion
from Class B................... 464,736 7,834,298
----------- ---------------
Net increase in shares
outstanding.................... 763,893 $ 8,977,927
----------- ---------------
----------- ---------------
Year ended October 31, 1997:
Shares sold...................... 56,776,730 $ 973,808,525
Shares issued in reinvestment of
distributions.................. 1,094,293 17,300,775
Shares reacquired................ (58,304,729) (1,006,429,177)
----------- ---------------
Net decrease in shares
outstanding before
conversion..................... (433,706) (15,319,877)
Shares issued upon conversion
from Class B................... 1,249,160 21,616,884
----------- ---------------
Net increase in shares
outstanding.................... 815,454 $ 6,297,007
----------- ---------------
----------- ---------------
<CAPTION>
Class B Shares Amount
- --------------------------------- ----------- ---------------
<S> <C> <C>
Six months ended April 30, 1998:
Shares sold...................... 5,263,371 $ 81,463,737
Shares issued in reinvestment of
distributions.................. 2,411,838 33,741,609
Shares reacquired................ (7,648,307) (118,011,699)
----------- ---------------
Net increase in shares
outstanding before
conversion..................... 26,902 (2,806,353)
Shares reacquired upon conversion
into Class A................... (489,708) (7,834,298)
----------- ---------------
Net decrease in shares
outstanding.................... (462,806) $ (10,640,651)
----------- ---------------
----------- ---------------
Year ended October 31, 1997:
Shares sold...................... 18,853,519 $ 309,413,543
Shares issued in reinvestment of
distributions.................. 1,627,339 24,605,095
Shares reacquired................ (19,260,790) (317,569,948)
----------- ---------------
Net increase in shares
outstanding before
conversion..................... 1,220,068 16,448,690
Shares reacquired upon conversion
into Class A................... (1,309,346) (21,616,884)
----------- ---------------
Net decrease in shares
outstanding.................... (89,278) $ (5,168,194)
----------- ---------------
----------- ---------------
<CAPTION>
Class C
- ---------------------------------
<S> <C> <C>
Six months ended April 30, 1998:
Shares sold...................... 1,366,025 $ 21,127,696
Shares issued in reinvestment of
distributions.................. 73,095 1,021,868
Shares reacquired................ (1,377,105) (21,344,359)
----------- ---------------
Net increase in shares
outstanding.................... 62,015 $ 805,205
----------- ---------------
----------- ---------------
Year ended October 31, 1997:
Shares sold...................... 1,634,289 $ 28,057,761
Shares issued in reinvestment of
distributions.................. 39,547 597,939
Shares reacquired................ (1,531,715) (26,428,611)
----------- ---------------
Net increase in shares
outstanding.................... 142,121 $ 2,227,089
----------- ---------------
----------- ---------------
<CAPTION>
Class Z
- ---------------------------------
<S> <C> <C>
Six months ended April 30, 1998:
Shares sold...................... 1,413,419 $ 23,376,829
Shares issued in reinvestment of
distributions.................. 323,525 4,771,985
Shares reacquired................ (1,731,943) (28,374,194)
----------- ---------------
Net increase in shares
outstanding.................... 5,001 $ (225,380)
----------- ---------------
----------- ---------------
Year ended October 31, 1997:
Shares sold...................... 3,048,281 $ 53,294,667
Shares issued in reinvestment of
distributions.................. 197,534 3,130,911
Shares reacquired................ (3,114,617) (54,886,605)
----------- ---------------
Net increase in shares
outstanding.................... 131,198 $ 1,538,973
----------- ---------------
----------- ---------------
</TABLE>
- --------------------------------------------------------------------------------
12
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Financial Highlights (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
-----------------------------------------------------------------------------
Six Months
Ended Year Ended October 31,
April 30, ----------------------------------------------------------
1998(a) 1997 1996 1995(a) 1994(a) 1993(a)
-------------- -------- -------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.... $ 17.27 $ 16.62 $ 15.52 $ 14.89 $ 13.17 $ 9.58
------- -------- -------- -------- ------- -------
Income from investment operations
Net investment income (loss)............ (0.02) (0.01) -- .01 (.04) .02
Net realized and unrealized gain on
investment and foreign currency
transactions......................... 2.41 1.96 1.83 .81 1.76 3.57
------- -------- -------- -------- ------- -------
Total from investment operations..... 2.39 1.95 1.83 .82 1.72 3.59
------- -------- -------- -------- ------- -------
Less distributions
Distributions in excess of net
investment income.................... (0.11) (.05) -- -- -- --
Distributions from net realized capital
gains................................ (1.79) (1.25) (.73) (.19) -- --
------- -------- -------- -------- ------- -------
Total distributions.................. (1.90) (1.30) (.73) (.19) -- --
------- -------- -------- -------- ------- -------
Net asset value, end of period.......... $ 17.76 $ 17.27 $ 16.62 $ 15.52 $ 14.89 $ 13.17
------- -------- -------- -------- ------- -------
------- -------- -------- -------- ------- -------
TOTAL RETURN(b):........................ 16.11% 12.42% 12.33% 5.74% 13.06% 37.47%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......... $278,977 $258,080 $234,700 $222,002 $73,815 $42,021
Average net assets (000)................ $256,493 $265,380 $222,948 $174,316 $58,455 $21,409
Ratios to average net assets:
Expenses, including distribution
fees.............................. 1.38%(c) 1.39% 1.45% 1.51% 1.55% 1.56%
Expenses, excluding distribution
fees.............................. 1.13%(c) 1.14% 1.20% 1.26% 1.30% 1.36%
Net investment income (loss)......... (0.18)%(c) 0.01% (0.04)% .10% (0.29)% 0.20%
For Class A, B, C and Z shares:
Portfolio turnover rate................. 37% 64% 52% 50% 49% 69%
</TABLE>
- ---------------
(a) Based on average shares outstanding.
(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 year reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are not
annualized.
(c) Annualized.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 13
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Financial Highlights (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
--------------------------------------------------------------------------------
Six Months
Ended Year Ended October 31,
April 30, -------------------------------------------------------------
1998(a) 1997 1996 1995(a) 1994(a) 1993(a)
-------------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.... $ 16.42 $ 15.96 $ 15.03 $ 14.53 $ 12.94 $ 9.47
------- -------- -------- -------- -------- --------
Income from investment operations
Net investment income (loss)............ (0.07) (0.12) (.08) (.11) (.13) (.04)
Net realized and unrealized gain on
investment and foreign currency
transactions......................... 2.29 1.88 1.74 .80 1.72 3.51
------- -------- -------- -------- -------- --------
Total from investment operations..... 2.22 1.76 1.66 .69 1.59 3.47
------- -------- -------- -------- -------- --------
Less distributions
Distributions in excess of net
investment income.................... (0.01) (.05) -- -- -- --
Distributions from net realized capital
gains................................ (1.79) (1.25) (.73) (.19) -- --
------- -------- -------- -------- -------- --------
Total distributions.................. (1.80) (1.30) (.73) (.19) -- --
------- -------- -------- -------- -------- --------
Net asset value, end of period.......... $ 16.84 $ 16.42 $ 15.96 $ 15.03 $ 14.53 $ 12.94
------- -------- -------- -------- -------- --------
------- -------- -------- -------- -------- --------
TOTAL RETURN(b):........................ 15.75% 11.70% 11.57% 4.98% 12.29% 36.64%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......... $335,677 $335,007 $326,978 $268,498 $410,520 $251,133
Average net assets (000)................ $321,514 $350,518 $294,230 $287,656 $345,771 $183,741
Ratios to average net assets:
Expenses, including distribution
fees.............................. 2.06%(c) 2.07% 2.12% 2.19% 2.24% 2.24%
Expenses, excluding distribution
fees.............................. 1.13%(c) 1.14% 1.20% 1.27% 1.30% 1.36%
Net investment loss.................. (0.87)%(c) (0.68)% (.67)% (.84)% (0.97)% (0.39)%
</TABLE>
- ---------------
(a) Based on average shares outstanding.
(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 year reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are not
annualized.
(c) Annualized.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 14
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Financial Highlights (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class C
--------------------------------------------------------------------------------
August 1,
Six Months 1994(c)
Ended Year Ended October 31, Through
April 30, -------------------------------------------- October 31,
1998(a) 1997 1996 1995(a) 1994(a)
-------------- ---------- ------------ ------------ ------------
<S> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.... $ 16.41 $ 15.96 $ 15.03 $14.53 $14.03
------- ---------- ------ ----- -----
Income from investment operations
Net investment income (loss)............ (0.07) (0.11) (.05) (.11) (.03)
Net realized and unrealized gain on
investment and foreign currency
transactions......................... 2.29 1.86 1.71 .80 .53
------- ---------- ------ ----- -----
Total from investment operations..... 2.22 1.75 1.66 .69 .50
------- ---------- ------ ----- -----
Less distributions
Distributions in excess of net
investment income.................... (e) (.05) -- -- --
Distributions from net realized capital
gains................................ (1.79) (1.25) (.73) (.19) --
------- ---------- ------ ----- -----
Total distributions.................. (1.79) (1.30) (.73) (.19) --
------- ---------- ------ ----- -----
Net asset value, end of period.......... $ 16.84 $ 16.41 $ 15.96 $15.03 $14.53
------- ---------- ------ ----- -----
------- ---------- ------ ----- -----
TOTAL RETURN(b):........................ 15.70% 11.63% 11.57% 4.98% 3.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......... $ 11,552 $ 10,244 $ 7,693 $3,733 $1,205
Average net assets (000)................ $ 9,940 $ 9,093 $ 5,516 $2,284 $ 630
Ratios to average net assets:
Expenses, including distribution
fees.............................. 2.13%(d) 2.14% 2.20% 2.25% 2.63%(d)
Expenses, excluding distribution
fees.............................. 1.13%(d) 1.14% 1.20% 1.25% 1.63%(d)
Net investment loss.................. (0.93)%(d) (0.75)% (.72)% (.76)% (1.21)%(d)
</TABLE>
- ---------------
(a) Based on average shares outstanding.
(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) Commencement of offering of Class C shares.
(d) Annualized.
(e) Distribution in excess of net investment income was $.001.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 15
<PAGE>
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Financial Highlights (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class Z
--------------------------------------------
March 1,
Six Months 1996(c)
Ended Year Ended Through
April 30, October 31, October 31,
1998(a) 1997 1996
---------- ------------ ------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.... $ 17.35 $ 16.65 $ 15.42
---------- ------ ------
Income from investment operations
Net investment income (loss)............ 0.01 0.04 .06
Net realized and unrealized gain on
investment and foreign currency
transactions......................... 2.40 1.96 1.18
---------- ------ ------
Total from investment operations..... 2.41 2.00 1.24
---------- ------ ------
Less distributions
Distributions in excess of net
investment income.................... (0.16) (.05) --
Distributions from net realized capital
gains................................ (1.79) (1.25) (.01)
---------- ------ ------
Total distributions.................. (1.95) (1.30) (.01)
---------- ------ ------
Net asset value, end of period.......... $ 17.81 $ 17.35 $ 16.65
---------- ------ ------
---------- ------ ------
TOTAL RETURN(b):........................ 16.22% 12.72% 8.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)......... $ 45,678 $ 44,412 $ 40,416
Average net assets (000)................ $ 42,462 $ 46,545 $ 26,452
Ratios to average net assets:
Expenses, including distribution
fees.............................. 1.13%(d) 1.14% 1.20%(d)
Expenses, excluding distribution
fees.............................. 1.13%(d) 1.14% 1.20%(d)
Net investment income................ 0.07%(d) 0.27% .55%(d)
</TABLE>
- ---------------
(a) Based on average shares outstanding.
(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) Commencement of offering of Class Z shares.
(d) Annualized.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 16

<PAGE>

Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

(800) 225-1852
http://www.prudential.com

Directors
Edward D. Beach
Stephen C. Eyre
Delayne D. Gold
Robert F. Gunia
Don G. Hoff
Robert E. LaBlanc
Mendel A. Melzer, CFA
Richard A. Redeker
Robin B. Smith
Stephen Stoneburn
Nancy H. Teeters

Officers
Richard A. Redeker, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant Treasurer
S. Jane Rose, Secretary
Robert C. Rosselot, Assistant Secretary

Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077

Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07102-3777

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 LLC
P.O. Box 15005
New Brunswick, NJ 08906

Independent Accountants
Price Waterhouse LLP
1177 Avenue of the Americas
New York, NY 10036

Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004

The views expressed in this report and information about the Series' portfolio
holdings are for the period covered by this report and are subject to change
thereafter.

The accompanying financial statements as of April 30, 1998, 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>

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Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852

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