<PAGE>
(ICON)
Prudential
World
Fund, Inc.
- ---------------
Global Series
SEMI
ANNUAL
REPORT
April 30, 1999
(LOGO)
<PAGE>
Prudential World Fund, Inc.
Global Series
Performance At A Glance
During our reporting period, investors began to believe that
the global economy was recovering. Around the world, stock
markets bounced back from their steep drops of the summer of
1998 to register substantial gains. Prudential World Fund--Global
Series beat even the strong return of the Lipper Average, helped
by the excellent performance of our U.K. holdings and by our
global focus on telecommunications and technology stocks.
<TABLE>
Cumulative Total Returns1 As of 4/30/99
<CAPTION>
Six One Five Ten Since
Months Year Years Years Inception2
<S> <C> <C> <C> <C> <C>
Class A 22.73% 11.74% 84.53% N/A 154.03%
Class B 22.30 10.89 78.23 152.38% 565.09
Class C 22.31 10.89 N/A N/A 73.72
Class Z 22.86 12.02 N/A N/A 58.58
Lipper Global
Fund Avg.3 19.65 6.99 91.01 192.92 ***
</TABLE>
<TABLE>
Average Annual Total Returns1 As of 3/31/99
<CAPTION>
One Five Ten Since
Year Years Years Inception2
<S> <C> <C> <C> <C>
Class A 3.73% 11.35% N/A 9.51%
Class B 3.39 11.60 9.27% 13.23
Class C 6.31 N/A N/A 11.24
Class Z 9.42 N/A N/A 14.40
</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.
1 Source: Prudential Investments Fund Management LLC and Lipper,
Inc. The cumulative total returns do not take into account sales
charges. The average annual total returns do take into account
applicable sales charges. The Series charges a maximum
front-end sales charge 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 B shares will automatically convert to Class A shares, on a
quarterly basis, approximately seven years after purchase.
Class C shares are subject to a front-end sales charge of 1%
and a CDSC of 1% for 18 months. Class C shares bought before
November 2, 1998, have a 1% CDSC if sold within one year. Class Z
shares are not subject to a sales charge or distribution fee.
2 Inception dates: Class A, 1/22/90; Class B, 5/15/84; Class
C, 8/1/94; Class Z, 3/1/96.
3 Lipper average returns are for all funds in each share class
for the six-month, one-, five-, and ten-year periods in the
Global Fund category.
*** Lipper Since Inception returns are 167.00% for Class A,
702.58% for Class B, 88.52% for Class C, and 57.76% for
Class Z, based on all funds in each share class.
How Investments Compared
(As of 4/30/99)
(GRAPH)
Source: Lipper, Inc. 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>
Portfolio Managers' Report
(PHOTO) (PHOTO) (PHOTO)
Daniel J. Duane, Ingrid Holm, and
Michelle Picker--Fund Managers
Investment Goals and Style
The Prudential World Fund--Global Series invests in U.S.
and foreign stocks. We study cultural, social, and demographic
forces looking for growth industries--preferably ones we have
seen develop in another part of the world. We try to buy
strong companies in these industries when their earnings
growth potential 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
illiquidity. There can be no assurance that the Series
will achieve its investment objective.
Performance Review
Defensiveness helped, then hurt
As our reporting period began, we had a defensive focus on
Continental Europe and telecommunications stocks. The global
markets had just begun to bounce back from a steep slide
triggered by a Russian debt default. Over the six months, investors
began to regain confidence. By the end of the period, they
had pushed markets up sharply and had broadened their
interests to include the neglected industrial companies
that benefit from global economic growth. We had a strong
showing in the first half of our period when our defensiveness
fit investors' preferences. We were hurt toward the end of
the period as other investors became optimistic. Although
we had expected a resurgent desire to participate in the
Asian economic recovery, it came sooner than we thought
it would. Moreover, cyclical stocks took off. We have
increased our holdings in the basic materials sector and
added (after the end of the period) airlines in the Pacific--
Quantas and Singapore Air--to participate more fully in
the Asian recovery.We selected well in the United Kingdom
Our U.K. stocks performed particularly well. They include two
of our largest holdings: Hays PLC and Vodafone. We bought Hays
as a paradigm of our outsourcing theme. It offers an array of
business services in the United Kingdom and on the European
Continent, including the delivery of industrial products and
the provision of both permanent and temporary technical staff.
It returned 41% for the half year. Vodafone is a wireless
telecommunications provider that is moving toward global service.
Its shares rose 23% during the six-month period.
Another of our substantial outsourcing investments in the United
Kingdom is GKN, an engineering firm that makes auto parts and
also rents out industrial shipping pallets. For its customers,
renting pallets offers many of the same advantages as
renting trucks: storage and return to origin are problems
that are more easily solved by a specialized company with
many customers. It is a very profitable business. GKN stock
returned 59% for the reporting period.
We also had an excellent return (35% for the reporting
period) on Bank of Scotland.
Our telecommunications and technology strategy worked
In addition to Vodafone, Nokia--the Finland-based
telecommunications equipment company--is among our
largest positions. It also had a very strong return.
Nokia is a leading equipment provider in the growing
mobile telecommunications industry.
<PAGE>
Our U.S.-based technology and telecommunications companies
also had strong returns. Our largest holding at period end
was PMC-Sierra, a telecommunications chip maker. It returned
61% during the reporting period. Our telephone and cable service
providers--MCI WorldCom and Time Warner--had less outstanding,
but nonetheless very substantial, gains over our reporting period.
Looking Ahead
Good buying opportunities in the United States
We believe the recent changes in market preference have gotten
ahead of economic developments. The Asian economies that are
recovering are small, while Japan is only beginning its very
long and difficult process of restructuring. Cyclical
(economically sensitive) stock prices may have outrun the
ability of their companies to increase profits, as a rising
dollar will make it hard to charge more for commodities
that are priced in dollars. Some growth stocks had become
too expensive, but 1999's reversal between cyclical and
growth stocks may now create good buying opportunities.
We are trimming our exposure to the very largest U.S.
companies in favor of slightly smaller companies with
more room for earnings growth and more reasonable share
prices. The long-term prospects of U.S. growth companies
are still very good, particularly the telecommunications,
outsourcing, consumer banks, and technology companies we
have favored.
Portfolio Composition
Countries expressed as a percentage of net assets as of 4/30/99
United States 43%
Continental Europe 29
United Kingdom 13
Japan 9
Australia 4
Cash & Equivalents 2
Five Largest Holdings
Expressed as a percentage of net assets as of 4/30/99
PMC-Sierra 3.2%
Electronic Components
Time Warner 3.1
Broadcasting
Hays PLC 2.7
Business & Public Services
Vodafone Group PLC 2.6
Telecommunications
Texas Instruments 2.5
Electronic Components
1
<PAGE>
A Message to Our Shareholders June 18, 1999
(PHOTO)
Dear Shareholder:
In the last couple of years, the recurring possibility of a
global economic crisis caused investors to focus on securities
they perceived to be safe. In the equity market, they focused on
the stocks of a handful of very large companies that were
perceived to be well-buffeted from an economic slowdown. These
stocks became very expensive--out of proportion to their
earnings expectations. As a result, there was a substantial
disparity in value between large and small companies, and between
growth and value stocks.
Since earlier this year, however, that gap has narrowed
significantly amid news of strong U.S. economic growth
and faster-than-expected global stability. While the
long-term prospects of U.S. growth stocks are still
very good, many of the smaller and economically sensitive
companies favored by our value managers now are posting
very attractive returns.
In the bond market, U.S. Treasuries and select European
government bonds were the major beneficiaries of the
flight to quality that occurred in recent years. When
this trend reversed itself toward the end of 1998, other
sectors of the bond market rebounded. However, with a
strong U.S. economy comes the threat of higher inflation,
which erodes the value of bonds' fixed interest payments.
The recent inflation concerns jolted the bond market and
helped send long-term interest rates to a
19-month high.
The winds of change in the equity market and the recent
turbulence in the bond market not only highlight the
value of professional portfolio management, but they
illustrate why investors should have a well-diversified
asset allocation strategy. It is also a good practice to
rebalance your holdings, when necessary, to keep your
asset allocation consistent with your long-term objectives
and risk tolerance. A properly diversified portfolio of
value- and growth-oriented equity funds,
international bond funds, and money market funds
could help you weather inevitable market turbulence
and achieve more consistent returns over time. Prudential
offers a wide range of mutual funds to help our shareholders
diversify, as well as several balanced and diversified funds
to allow one-decision diversification.
Thank you for your continued confidence in Prudential mutual funds.
Sincerely,
John R. Strangfeld
President
Prudential World Fund, Inc.--Global Series
2
<PAGE>
Portfolio of Investments as PRUDENTIAL WORLD FUND, INC.
of April 30, 1999 (Unaudited) GLOBAL SERIES
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
LONG-TERM INVESTMENTS--98.4%
COMMON STOCKS--98.1%
- ------------------------------------------------------------
Australia--4.5%
307,600 Brambles Industries, Ltd. $ 9,033,363
892,950 Broken Hill Proprietary Co., Ltd. 10,088,996
575,000 Commonwealth Bank of Australia 10,463,299
-------------
29,585,658
- ------------------------------------------------------------
Finland--2.4%
201,790 Nokia Oyj (AB) 15,568,487
- ------------------------------------------------------------
France--8.1%
55,000 Axa SA 7,108,130
83,160 Elf Aquitaine SA 12,928,653
67,600 Lafarge SA 6,577,426
42,315 Legrand SA 10,114,031
47,775 Suez Lyonnaise des Eaux SA 8,134,822
47,050 Thomson-CSF SA 1,542,563
29,600 Vivendi SA 6,921,527
-------------
53,327,152
- ------------------------------------------------------------
Germany--2.7%
87,062 Mannesmann AG 11,472,767
296,000 Thyssen Krupp AG 6,480,127
-------------
17,952,894
- ------------------------------------------------------------
Ireland--2.1%
702,240 Bank of Ireland 14,038,159
- ------------------------------------------------------------
Italy--3.9%
1,190,700 Telecom Italia SpA 12,680,994
2,486,285 Unicredito Italiano SpA 12,621,577
-------------
25,302,571
Japan--9.0%
575,000 Fujitsu, Ltd. $ 9,858,520
194,000 Honda Motor Co., Ltd. 8,555,355
911 Nippon Telegraph & Telephone Corp. 9,929,156
168 NTT Mobile Communications 9,859,568
945,000 Olympus Optical Co., Ltd. 11,630,769
110,000 Takefuji Corp. 9,130,161
-------------
58,963,529
- ------------------------------------------------------------
Netherlands--1.7%
183,750 ING Groep N.V. 11,329,673
- ------------------------------------------------------------
Spain--3.2%
508,031 Banco Santander Central Hispano SA 11,046,766
212,932 Telefonica de Espana SA 9,987,482
-------------
21,034,248
- ------------------------------------------------------------
Sweden--5.0%
139,965 Hennes & Mauritz AB, Ser. B 12,086,012
1,730,400 Nordbanken Holding AB 10,893,102
241,000 Skanska AB, Ser. B 9,575,078
-------------
32,554,192
- ------------------------------------------------------------
United Kingdom--12.7%
746,586 Bank of Scotland 11,142,465
897,000 Canary Wharf Finance PLC(a) 5,513,617
142,700 Energis PLC(a) 3,740,805
620,760 GKN PLC 10,592,356
1,611,330 Hays PLC 17,880,805
306,900 Imperial Chemical Industries PLC 3,331,610
1,721,160 Invensys PLC 8,747,054
306,900 Rio Tinto PLC 5,355,254
938,565 Vodafone Group PLC 17,283,166
-------------
83,587,132
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 3
<PAGE>
Portfolio of Investments as PRUDENTIAL WORLD FUND, INC.
of April 30, 1999 (Unaudited) GLOBAL SERIES
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
United States--42.8%
64,000 Alcoa Inc. $ 3,984,000
88,550 Cisco Systems, Inc.(a) 10,100,234
155,600 Citigroup, Inc. 11,708,900
149,300 Computer Sciences Corp.(a) 8,892,681
251,700 Disney (Walt) Co. 7,991,475
51,100 Du Pont (E.I.) de Nemours & Co. 3,608,938
219,200 Electronic Arts, Inc.(a) 11,138,100
319,300 Fox Entertainment Group, Inc.,
Class A(a) 8,182,063
357,450 Hasbro, Inc. 12,197,981
151,200 MCI WorldCom, Inc.(a) 12,426,750
197,800 Mead Corp. 8,270,512
180,100 Microsoft Corp.(a) 14,644,381
395,650 Office Depot, Inc.(a) 8,704,300
78,000 Omnicom Group, Inc. 5,655,000
321,500 Oracle Corp.(a) 8,700,594
33,000 Pfizer, Inc. 3,797,063
218,700 PMC-Sierra, Inc.(a) 20,967,862
157,100 Promus Hotel Corp.(a) 5,655,600
226,300 Safeway, Inc.(a) 12,206,056
143,400 SCI Systems, Inc.(a) 5,458,163
222,700 Seagate Technology, Inc.(a) 6,207,763
246,200 Solectron Corp.(a) 11,940,700
160,600 Texas Instruments, Inc. 16,401,275
292,600 Time Warner, Inc. 20,482,000
261,100 USA Networks, Inc.(a) 9,758,612
78,400 USX-U.S. Steel Group 2,371,600
223,900 Waste Management, Inc. 12,650,350
280,300 Wells Fargo Co. 12,105,456
199,800 Wendys International, Inc. 5,407,088
-------------
281,615,497
Total common stocks
(cost US$411,319,766) 644,859,192
-------------
PREFERRED STOCKS--0.1%
- ------------------------------------------------------------
Thailand
1,430,000 Siam Commercial Bank Co., Ltd.
5.25% (cost US$4) $ 635,984
WARRANTS--0.2%
------------------------------------------------------------
Thailand
1,430,000 Siam Commercial Bank Co., Ltd.
expiring 5/10/02 @THB29.46
(cost US$1,008,523) 1,580,324
RIGHTS
------------------------------------------------------------
Spain
212,932 Telefonica de Espana SA
expiring 5/20/99 198,173
-------------
Total long-term investments
(cost US$412,328,293) 647,273,673
-------------
- ------------------------------------------------------------
Principal
Amount
(000)
SHORT-TERM INVESTMENT--0.9%
------------------------------------------------------------
Repurchase Agreement
$5,758 Joint Repurchase Agreement Account,
4.90%, 5/3/99
(cost US$5,758,000; Note 5) 5,758,000
-------------
- ------------------------------------------------------------
Total Investments--99.3%
(cost US$418,086,293) 653,031,673
Other assets in excess of
liabilities--0.7% 4,408,543
-------------
Net Assets--100% $ 657,440,216
-------------
-------------
</TABLE>
- ---------------
(a) Non-income producing security.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 4
<PAGE>
PRUDENTIAL WORLD FUND, INC.
GLOBAL SERIES
Portfolio of Investments as of April 30, 1999 (Unaudited)
- ------------------------------------------------------------
The industry classification of portfolio holdings and other assets shown as a
percentage of net assets as of April 30, 1999 was as follows:
Banking............................................... 14.5%
Telecommunications.................................... 13.9
Electronic Components................................. 8.3
Computer Software & Services.......................... 8.1
Retail................................................ 5.0
Electrical & Electronics.............................. 5.0
Broadcasting & Publishing............................. 4.4
Machinery & Engineering............................... 4.1
Business & Public Services............................ 4.1
Building & Construction............................... 3.7
Finance............................................... 3.2
Automobiles & Auto Parts.............................. 2.9
Mineral Resources..................................... 2.3
Leisure & Tourism..................................... 2.1
Oil & Gas Exploration/Production...................... 2.0
Toy Manufacturer...................................... 1.9
Waste Management...................................... 1.9
Media & Communications................................ 1.5
Paper & Forest Products............................... 1.3
Insurance............................................. 1.1
Chemicals............................................. 1.1
Metals................................................ 1.0
Diversified Industries................................ 1.0
Repurchase Agreement.................................. 0.9
Computer Hardware..................................... 0.9
Advertising........................................... 0.9
Restaurants........................................... 0.8
Real Estate........................................... 0.8
Drugs & Medical Supplies.............................. 0.6
-----
99.3
Other assets in excess of liabilities................. 0.7
-----
100.0%
-----
-----
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 5
<PAGE>
Statement of Assets and Liabilities PRUDENTIAL WORLD FUND, INC.
(Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Assets April 30, 1999
<S> <C>
Investments, at value (cost US$418,086,293)................................................................. $653,031,673
Foreign currency, at value (cost US$9,215,585).............................................................. 9,096,855
Cash........................................................................................................ 137,617
Receivable for Series shares sold........................................................................... 2,606,899
Dividends and interest receivable........................................................................... 966,561
Forward currency contracts - amount receivable from counterparties.......................................... 542,887
Receivable for investments sold............................................................................. 524,154
Deferred expenses and other assets.......................................................................... 8,071
--------------
Total assets............................................................................................. 666,914,717
--------------
Liabilities
Payable for Series shares reacquired........................................................................ 4,328,695
Payable for investments purchased........................................................................... 3,968,714
Accrued expenses............................................................................................ 442,598
Management fee payable...................................................................................... 402,320
Distribution fee payable.................................................................................... 297,736
Withholding taxes payable................................................................................... 34,438
--------------
Total liabilities........................................................................................ 9,474,501
--------------
Net Assets.................................................................................................. $657,440,216
--------------
--------------
Net assets were comprised of:
Common stock, at par..................................................................................... $ 355,765
Paid-in capital in excess of par......................................................................... 402,630,943
--------------
402,986,708
Accumulated net investment loss.......................................................................... (19,885,248)
Undistributed net realized gain on investments........................................................... 39,012,556
Net unrealized appreciation on investments and foreign currencies........................................ 235,326,200
--------------
Net assets, April 30, 1999.................................................................................. $657,440,216
--------------
--------------
Class A:
Net asset value and redemption price per share
($302,603,607 / 15,945,563 shares of common stock issued and outstanding)............................. $18.98
Maximum sales charge (5% of offering price).............................................................. 1.00
--------------
Maximum offering price to public......................................................................... $19.98
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($300,855,167 / 16,759,576 shares of common stock issued and outstanding)............................. $17.95
--------------
--------------
Class C:
Net asset value and redemption price per share
($11,330,537 / 631,116 shares of common stock issued and outstanding)................................. $17.95
Sales charge (1% of offering price)...................................................................... .18
--------------
Offering price to public................................................................................. $18.13
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($42,650,905 / 2,240,245 shares of common stock issued and outstanding)............................... $19.04
--------------
--------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 6
<PAGE>
PRUDENTIAL WORLD FUND, INC.
GLOBAL SERIES
Statement of Operations (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended
Net Investment Income April 30, 1999
<S> <C>
Income
Dividends (net of foreign withholding
taxes of $177,237)..................... $ 1,807,052
Interest.................................. 386,973
--------------
Total income........................... 2,194,025
--------------
Expenses
Management fee............................ 2,343,777
Distribution fee--Class A................. 351,580
Distribution fee--Class B................. 1,349,359
Distribution fee--Class C................. 56,172
Transfer agent's fees and expenses........ 752,000
Custodian's fees and expenses............. 193,000
Reports to shareholders................... 74,000
Registration fees......................... 36,000
Audit fee and expenses.................... 17,000
Directors' fees........................... 15,000
Legal fees and expenses................... 10,000
Insurance expense......................... 5,000
Miscellaneous............................. 3,464
--------------
Total operating expenses............... 5,206,352
Loan interest expense..................... 375
--------------
Total expenses......................... 5,206,727
--------------
Net investment loss.......................... (3,012,702)
--------------
Realized and Unrealized Gain (Loss)
on Investments and Foreign Currency
Transactions
Net realized gain (loss) on:
Investment transactions................... 35,764,801
Foreign currency transactions............. (3,227,593)
--------------
32,537,208
--------------
Net change in unrealized appreciation on:
Investments............................... 94,006,171
Foreign currencies........................ 2,922,349
--------------
96,928,520
--------------
Net gain on investments and foreign
currencies................................ 129,465,728
--------------
Net Increase in Net Assets
Resulting from Operations.................... $126,453,026
--------------
--------------
</TABLE>
PRUDENTIAL WORLD FUND, INC.
GLOBAL SERIES
Statement of Changes in Net Assets (Unaudited)
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) April 30, October 31,
in Net Assets 1999 1998
<S> <C> <C>
Operations
Net investment loss.......... $ (3,012,702) $ (2,947,446)
Net realized gain on
investment and foreign
currency transactions..... 32,537,208 34,606,439
Net change in unrealized
appreciation on
investments and foreign
currencies................ 96,928,520 2,818,125
------------- -------------
Net increase in net assets
resulting from
operations................ 126,453,026 34,477,118
------------- -------------
Dividends and distributions
(Note 1)
Distributions in excess of
net investment income
Class A................... (2,174,019) (1,600,133)
Class B................... (347,322) (202,372)
Class C................... (6,461) (786)
Class Z................... (394,708) (393,824)
------------- -------------
(2,922,510) (2,197,115)
------------- -------------
Distributions from net
realized capital gains
Class A................... (9,316,805) (26,120,391)
Class B................... (10,421,104) (35,471,585)
Class C................... (387,651) (1,046,952)
Class Z................... (1,315,694) (4,423,383)
------------- -------------
(21,441,254) (67,062,311)
------------- -------------
Series share transactions (net
of share conversions) (Note
7)
Proceeds from shares sold.... 231,373,212 423,854,618
Net asset value of shares
issued in reinvestment of
distributions............. 23,377,927 66,072,062
Cost of shares reacquired.... (271,702,512) (530,585,329)
------------- -------------
Net decrease in net assets from
Series share transactions.... (16,951,373) (40,658,649)
------------- -------------
Total increase (decrease)....... 85,137,889 (75,440,957)
Net Assets
Beginning of period............. 572,302,327 647,743,284
------------- -------------
End of period................... $ 657,440,216 $ 572,302,327
------------- -------------
------------- -------------
</TABLE>
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 7
<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) and NASDAQ National Market System Securities are valued at the last
sales price of such exchange system on the day of valuation or, if there was no
sale on such day, the mean between the last bid and asked prices on such day, or
at the bid price on such day in the absence of an asked price. Securities for
which reliable market quotations are not readily available are valued by the
Valuation Committee or Board of Directors in consultation with the manager or
subadvisor.
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.
Repurchase Agreements: 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 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 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 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 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 from the potential inability of the
counterparties to meet the terms of their contracts.
- --------------------------------------------------------------------------------
8
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
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 for and reports
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 net investment loss by $4,916,937, decrease
accumulated net realized gain on investments by $6,673,838 and increase paid-in
capital by $11,590,775 for realized foreign currency losses and for redemptions
utilized as distributions for federal income tax purposes during the six months
ended April 30, 1999. 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 Investment Management
Services LLC ('PIMS'), which acts as the distributor of the Class A, B, C and Z
shares of the Fund. The Fund compensated PIMS 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. No
distribution or service fees are paid to PIMS as distributor for the Class Z
shares of the Fund.
Pursuant to the Class A Plan, the Series compensates PIMS 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 PIMS 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, 1999.
PIMS have advised the Series that they received approximately $50,500 and $2,900
in front-end sales charges resulting from sales of Class A and Class C shares,
respectively, during the six months ended April 30, 1999. From these fees, PIMS
paid such sales charges to affiliated broker-dealers, which in turn paid
commissions to salespersons and incurred other distribution costs.
PIMS have advised the Series that during the six months ended April 30, 1999,
they received approximately $280,800 and $1,300 in contingent
- --------------------------------------------------------------------------------
9
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
deferred sales charges imposed upon certain redemptions by Class B and C
shareholders, respectively.
PIFM, PIC amd PIMS 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,
1999, the Series incurred fees of approximately $623,200 for the services of
PMFS. As of April 30, 1999, approximately $104,600 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.
- ------------------------------------------------------------
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 1999 were $205,304,035 and $203,877,271,
respectively.
The United States federal income tax basis of the Series' investments at April
30, 1999 was $430,379,251 and, accordingly, net unrealized appreciation for
federal income tax purposes was $222,652,422 (gross unrealized
appreciation--$230,919,270; gross unrealized depreciation--$8,266,848).
At April 30, 1999, the Fund had outstanding forward currency contracts, to sell
foreign currencies, as follows:
<TABLE>
<CAPTION>
Value at
Foreign Currency Settlement Date Current
Sale Contracts Receivable Value Appreciation
<S> <C> <C> <C>
- ---------------------- --------------- ----------- -------------
Euro,
expiring 6/28/99..... $30,252,248 $30,153,934 $ 98,314
Japanese Yen,
expiring
6/24/99-9/17/99...... 13,626,666 13,182,093 444,573
-------------
$ 542,887
-------------
-------------
</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, 1999, the Series
had a 1.01% undivided interest in the repurchase agreements in the joint
account. The undivided interest for the Series represents $5,758,000 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., 4.90%, in the principal amount of $150,000,000,
repurchase price $150,061,250, due 5/3/99. The value of the collateral including
accrued interest was $153,641,618.
Merrill Lynch, Pierce, Fenner & Smith, Inc., 4.90%, in the principal amount of
$121,448,000, repurchase price $121,497,591, due 5/3/99. The value of the
collateral including accrued interest was $123,877,485.
Salomon Smith Barney, Inc., 4.90%, in the principal amount of $150,000,000,
repurchase price $150,061,250, due 5/3/99. The value of the collateral including
accrued interest was $153,037,359.
Warburg Dillon Read LLC, 4.90%, in the principal amount of $150,000,000,
repurchase price $150,061,250, due 5/3/99. The value of the collateral including
accrued interest was $153,001,025.
- ------------------------------------------------------------
Note 6. Borrowings
As of March 11, 1999, the Fund, along with other affiliated registered
investment companies (the 'Funds'), entered into a syndicated credit agreement
(SCA) with an unaffiliated lender. The maximum commitment under the SCA is $1
billion. The Funds pay a commitment fee at an annual rate of .065 of 1% on the
unused portion of the credit facility which is accrued and paid quarterly on a
pro rata basis by the Funds. The SCA expires on March 9, 2000. Prior to March
11, 1999, the Funds had a credit agreement with a maximum commitment of
$200,000,000. The commitment fee was 0.055 of 1% on the unused portion of the
credit facility. The purpose of the agreements is to serve as an alternative
source of funding for capital share redemption.
The Series utilized the line of credit during the six months ended April 30,
1999. The average daily balance the Series had outstanding during the year was
approximately $14,182 at a weighted average interest rate of approximately
5.34%.
- ------------------------------------------------------------
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 front-end
sales charge of 1% and a contingent deferred sales charge of 1% during the first
18 months. Prior to November
- --------------------------------------------------------------------------------
10
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Notes to Financial Statements (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
2, 1998, 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, 1999:
Shares sold...................... 6,348,161 $ 112,655,362
Shares issued in reinvestment of
distributions.................. 666,308 10,960,764
Shares reacquired................ (7,084,947) (126,367,193)
----------- ---------------
Net decrease in shares
outstanding before
conversion..................... (70,478) (2,751,067)
Shares issued upon conversion
from Class B................... 482,904 8,627,884
----------- ---------------
Net increase in shares
outstanding.................... 412,426 $ 5,876,817
----------- ---------------
----------- ---------------
Year ended October 31, 1998:
Shares sold...................... 10,859,321 $ 181,121,938
Shares issued in reinvestment of
distributions.................. 1,785,945 26,321,425
Shares reacquired................ (13,130,954) (219,688,490)
----------- ---------------
Net decrease in shares
outstanding before
conversion..................... (485,688) (12,245,127)
Shares issued upon conversion
from Class B................... 1,078,095 18,014,302
----------- ---------------
Net increase in shares
outstanding.................... 592,407 $ 5,769,175
----------- ---------------
----------- ---------------
<CAPTION>
Class B
- ---------------------------------
<S> <C> <C>
Six months ended April 30, 1999:
Shares sold...................... 4,254,558 $ 71,789,588
Shares issued in reinvestment of
distributions.................. 661,620 10,321,280
Shares reacquired................ (5,615,781) (94,849,316)
----------- ---------------
Net decrease in shares
outstanding before
conversion..................... (699,603) (12,738,448)
Shares reacquired upon conversion
into Class A................... (510,781) (8,627,884)
----------- ---------------
Net decrease in shares
outstanding.................... (1,210,384) $ (21,366,332)
----------- ---------------
----------- ---------------
<CAPTION>
Class B Shares Amount
- --------------------------------- ----------- ---------------
<S> <C> <C>
Year ended October 31, 1998:
Shares sold...................... 9,903,606 $ 155,002,590
Shares issued in reinvestment of
distributions.................. 2,422,180 33,924,667
Shares reacquired................ (13,616,672) (212,628,656)
----------- ---------------
Net decrease in shares
outstanding before
conversion..................... (1,290,886) (23,701,399)
Shares reacquired upon conversion
into Class A................... (1,137,864) (18,014,302)
----------- ---------------
Net decrease in shares
outstanding.................... (2,428,750) $ (41,715,701)
----------- ---------------
----------- ---------------
<CAPTION>
Class C
- ---------------------------------
<S> <C> <C>
Six months ended April 30, 1999:
Shares sold...................... 1,449,065 $ 24,353,163
Shares issued in reinvestment of
distributions.................. 24,783 386,616
Shares reacquired................ (1,544,428) (26,042,376)
----------- ---------------
Net decrease in shares
outstanding.................... (70,580) $ (1,302,597)
----------- ---------------
----------- ---------------
Year ended October 31, 1998:
Shares sold...................... 2,738,671 $ 42,979,629
Shares issued in reinvestment of
distributions.................. 73,474 1,028,570
Shares reacquired................ (2,734,648) (43,156,490)
----------- ---------------
Net increase in shares
outstanding.................... 77,497 $ 851,709
----------- ---------------
----------- ---------------
<CAPTION>
Class Z
- ---------------------------------
<S> <C> <C>
Six months ended April 30, 1999:
Shares sold...................... 1,263,662 $ 22,575,099
Shares issued in reinvestment of
distributions.................. 103,655 1,709,267
Shares reacquired................ (1,366,134) (24,443,627)
----------- ---------------
Net increase in shares
outstanding.................... 1,183 $ (159,261)
----------- ---------------
----------- ---------------
Year ended October 31, 1998:
Shares sold...................... 2,663,009 $ 44,750,461
Shares issued in reinvestment of
distributions.................. 324,879 4,797,400
Shares reacquired................ (3,307,909) (55,111,693)
----------- ---------------
Net decrease in shares
outstanding.................... (320,021) $ (5,563,832)
----------- ---------------
----------- ---------------
</TABLE>
- --------------------------------------------------------------------------------
11
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Financial Highlights (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class A
--------------------------------------------------------------------------
Six Months
Ended Year Ended October 31,
April 30, -----------------------------------------------------------
1999 1998(a) 1997 1996 1995(a) 1994(a)
---------- -------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.......... $ 16.16 $ 17.27 $ 16.62 $ 15.52 $ 14.89 $ 13.17
---------- -------- -------- -------- -------- -------
Income from investment operations
Net investment income (loss).................. (.05) (.02) (.01) -- .01 (.04)
Net realized and unrealized gain on investment
and foreign currency transactions.......... 3.61 .82 1.96 1.83 .81 1.76
---------- -------- -------- -------- -------- -------
Total from investment operations........... 3.56 .80 1.95 1.83 .82 1.72
---------- -------- -------- -------- -------- -------
Less distributions
Distributions in excess of net investment
income..................................... (.14) (.11) (.05) -- -- --
Distributions from net realized capital
gains...................................... (.60) (1.80) (1.25) (.73) (.19) --
---------- -------- -------- -------- -------- -------
Total distributions........................ (.74) (1.91) (1.30) (.73) (.19) --
---------- -------- -------- -------- -------- -------
Net asset value, end of period................ $ 18.98 $ 16.16 $ 17.27 $ 16.62 $ 15.52 $ 14.89
---------- -------- -------- -------- -------- -------
---------- -------- -------- -------- -------- -------
TOTAL RETURN(b):.............................. 22.73% 5.71% 12.42% 12.33% 5.74% 13.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $302,604 $251,018 $258,080 $234,700 $222,002 $73,815
Average net assets (000)...................... $283,595 $260,774 $265,380 $222,948 $174,316 $58,455
Ratios to average net assets:
Expenses, including distribution fees...... 1.35%(c) 1.38% 1.39% 1.45% 1.51% 1.55%
Expenses, excluding distribution fees...... 1.10%(c) 1.13% 1.14% 1.20% 1.26% 1.30%
Net investment income (loss)............... (.65)%(c) (.14)% .01% (.04)% .10% (.29)%
For Class A, B, C and Z shares:
Portfolio turnover rate....................... 34% 61% 64% 52% 50% 49%
</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) Annualized.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 12
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Financial Highlights (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class B
---------------------------------------------------------------------------
Six Months
Ended Year Ended October 31,
April 30, ------------------------------------------------------------
1999 1998(a) 1997 1996 1995(a) 1994(a)
---------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.......... $ 15.26 $ 16.42 $ 15.96 $ 15.03 $ 14.53 $ 12.94
---------- -------- -------- -------- -------- --------
Income from investment operations
Net investment loss........................... (.15) (.13) (.12) (.08) (.11) (.13)
Net realized and unrealized gain on investment
and foreign currency transactions.......... 3.46 .78 1.88 1.74 .80 1.72
---------- -------- -------- -------- -------- --------
Total from investment operations........... 3.31 .65 1.76 1.66 .69 1.59
---------- -------- -------- -------- -------- --------
Less distributions
Distributions in excess of net investment
income..................................... (.02) (.01) (.05) -- -- --
Distributions from net realized capital
gains...................................... (.60) (1.80) (1.25) (.73) (.19) --
---------- -------- -------- -------- -------- --------
Total distributions........................ (.62) (1.81) (1.30) (.73) (.19) --
---------- -------- -------- -------- -------- --------
Net asset value, end of period................ $ 17.95 $ 15.26 $ 16.42 $ 15.96 $ 15.03 $ 14.53
---------- -------- -------- -------- -------- --------
---------- -------- -------- -------- -------- --------
TOTAL RETURN(b):.............................. 22.30% 4.95% 11.70% 11.57% 4.98% 12.29%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $300,855 $274,248 $335,007 $326,978 $268,498 $410,520
Average net assets (000)...................... $294,895 $312,569 $350,518 $294,230 $287,656 $345,771
Ratios to average net assets:
Expenses, including distribution fees...... 2.03%(c) 2.06% 2.07% 2.12% 2.19% 2.24%
Expenses, excluding distribution fees...... 1.10%(c) 1.13% 1.14% 1.20% 1.27% 1.30%
Net investment loss........................ (1.33)%(c) (.82)% (.68)% (.67)% (.84)% (.97)%
</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) Annualized.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 13
<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,
1999 1998(a) 1997 1996 1995(a) 1994
---------- ------- ------- ------- ------- -----------
<S> <C> <C> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.......... $ 15.25 $ 16.41 $ 15.96 $ 15.03 $14.53 $ 14.03
---------- ------- ------- ------- ------- -----
Income from investment operations
Net investment loss........................... (.16) (.14) (.11) (.05) (.11 ) (.03)
Net realized and unrealized gain on investment
and foreign currency transactions.......... 3.47 .78 1.86 1.71 .80 .53
---------- ------- ------- ------- ------- -----
Total from investment operations........... 3.31 .64 1.75 1.66 .69 .50
---------- ------- ------- ------- ------- -----
Less distributions
Distributions in excess of net investment
income..................................... (.01) (d) (.05) -- -- --
Distributions from net realized capital
gains...................................... (.60) (1.80) (1.25) (.73) (.19 ) --
---------- ------- ------- ------- ------- -----
Total distributions........................ (.61) (1.80) (1.30) (.73) (.19 ) --
---------- ------- ------- ------- ------- -----
Net asset value, end of period................ $ 17.95 $ 15.25 $ 16.41 $ 15.96 $15.03 $ 14.53
---------- ------- ------- ------- ------- -----
---------- ------- ------- ------- ------- -----
TOTAL RETURN(b):.............................. 22.31% 4.90% 11.63% 11.57% 4.98 % 3.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $ 11,330 $10,698 $10,244 $ 7,693 $3,733 $ 1,205
Average net assets (000)...................... $ 11,328 $10,286 $ 9,093 $ 5,516 $2,284 $ 630
Ratios to average net assets:
Expenses, including distribution fees...... 2.10%(e) 2.13% 2.14% 2.20% 2.25 % 2.63%(e)
Expenses, excluding distribution fees...... 1.10%(e) 1.13% 1.14% 1.20% 1.25 % 1.63%(e)
Net investment loss........................ (1.40)%(e) (.90)% (.75)% (.72)% (.76 )% (1.21)%(e)
</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) Distribution in excess of net investment income was $.001.
(e) Annualized.
- --------------------------------------------------------------------------------
See Notes to Financial Statements. 14
<PAGE>
PRUDENTIAL WORLD FUND, INC.
Financial Highlights (Unaudited) GLOBAL SERIES
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Class Z
--------------------------------------------------
March 1,
Six Months Year Ended October 1996(c)
Ended 31, Through
April 30, ------------------- October 31,
1999 1998(a) 1997 1996
---------- ------- ------- -----------
<S> <C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.......... $ 16.23 $ 17.35 $ 16.65 $ 15.42
---------- ------- ------- -----------
Income from investment operations
Net investment income (loss).................. (.03) .02 .04 .06
Net realized and unrealized gain on investment
and foreign currency transactions.......... 3.62 .82 1.96 1.18
---------- ------- ------- -----------
Total from investment operations........... 3.59 .84 2.00 1.24
---------- ------- ------- -----------
Less distributions
Distributions in excess of net investment
income..................................... (.18) (.16) (.05) --
Distributions from net realized capital
gains...................................... (.60) (1.80) (1.25) (.01)
---------- ------- ------- -----------
Total distributions........................ (.78) (1.96) (1.30) (.01)
---------- ------- ------- -----------
Net asset value, end of period................ $ 19.04 $ 16.23 $ 17.35 $ 16.65
---------- ------- ------- -----------
---------- ------- ------- -----------
TOTAL RETURN(b):.............................. 22.86% 5.97% 12.72% 8.06%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $ 42,651 $36,338 $44,412 $40,416
Average net assets (000)...................... $ 40,369 $41,799 $46,545 $26,452
Ratios to average net assets:
Expenses, including distribution fees...... 1.10%(d) 1.13% 1.14% 1.20%(d)
Expenses, excluding distribution fees...... 1.10%(d) 1.13% 1.14% 1.20%(d)
Net investment income (loss)............... (.40)%(d) .12% .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. 15
<PAGE>
<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>
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
http://www.prudential.com
Directors
Edward D. Beach
Delayne Dedrick Gold
Robert F. Gunia
Don G. Hoff
Robert E. LaBlanc
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant Treasurer
Robert C. Rosselot, 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 Investment Management Services LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
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
PricewaterhouseCoopers 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, 1999,
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>
(LOGO)
Prudential Mutual Funds BULK RATE
Gateway Center Three U.S. POSTAGE
100 Mulberry Street PAID
Newark, NJ 07102-4077 Permit 6807
(800) 225-1852 New York, NY
743969107
743969206 MF115E2
743969305
743969404
