<PAGE>
SEMIANNUAL REPORT APRIL 30, 2000
Prudential
Global Growth Fund
Fund Type Global stock
Objective Long-term growth of capital
(GRAPHIC)
The views expressed in this report and information
about the Fund's portfolio holdings are for the
period covered by this report and are subject to
change thereafter.
This report is not authorized for distribution to
prospective investors unless preceded or
accompanied by a current prospectus.
(LOGO)
<PAGE>
Build on the Rock
Investment Goals and Style
The Prudential Global Growth Fund (the Series)
invests primarily in U.S. and foreign stocks. We
study cultural, social, and demographic forces
looking for growth industries. 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 potential
illiquidity. There can be no assurance that the
Series will achieve its investment objective of
long-term growth of capital.
Geographic Concentration
Expressed as a percentage of
net assets as of 4/30/00
44.8% United States
20.6 Continental Europe
9.5 United Kingdom
8.7 Japan
3.8 Asia Ex-Japan
12.6 Cash & Equivalents
Ten Largest Holdings
Expressed as a percentage of
net assets as of 4/30/00
4.4% Time Warner, Inc.
Broadcasting & Publishing
3.9 Solectron Corp.
Electronic Components
3.4 Vodafone AirTouch plc
Telecommunications
3.4 Texas Instruments, Inc.
Electronic Components
2.9 Oracle Corp.
Computer Software & Services
2.8 Citigroup, Inc.
Banking
2.8 NTT Mobile Communications
Telecommunications
2.7 PMC-Sierra, Inc.
Electronic Components
2.6 Nokia Oyj AB
Telecommunications
2.6 Atmel Corp.
Electronic Components
<PAGE>
www.prudential.com (800) 225-1852
Performance at a Glance
Cumulative Total Returns1 As of 4/30/00
Six One Five Ten Since
Months Year Years Years Inception2
Class A 26.56% 41.10% 156.98% 291.23% 258.44%
Class B 26.16 40.28 148.50 265.06 832.37
Class C 26.10 40.16 148.01 N/A 143.47
Class Z 26.73 41.57 N/A N/A 124.51
Lipper Global
Fund Avg.3 16.44 23.98 132.06 244.63 ***
Average Annual Total Returns1 As of 4/30/00
One Five Ten Since
Year Years Years Inception2
Class A 34.04% 19.54% 14.03% 12.67%
Class B 35.28 19.87 13.82 15.00
Class C 37.75 19.68 N/A 16.54
Class Z 41.57 N/A N/A 21.44
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 Z shares are not subject to a sales charge or
distribution and service (12b-1) fees.
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. The
Lipper average is unmanaged. Funds listed in the
Global Fund category invest at least 25% of their
portfolios in securities traded outside the United
States and may own U.S. securities as well.
*** Lipper Since Inception returns are 235.21% for
Class A, 955.94% for Class B, 140.62% for
Class C, and 100.60% for Class Z, based on all
funds in each share class.
1
<PAGE>
(LOGO) June 15, 2000
Dear Shareholder,
Over the very turbulent six-month period ended
April 30, 2000, Prudential Global Growth Fund's
Class A shares returned 26.56--20.23% to those
paying the one-time Class A share sales charge
during the period. This was 10 percentage points
above the Lipper Global Fund Average. The
extraordinary half-year outperformance was driven
by the Series' technology, telecommunications, and
to a lesser extent, media holdings. These industry
groups, known collectively as TMT, were Series
focuses, and the performance of its stocks within
each group was particularly good.
During this period, TMT stocks shot up to very high
prices compared to most measures of the value of
their underlying businesses, but they corrected
sharply in March and April. Despite the correction,
the largest contributors to the Series' return were
TMT stocks that also were among its largest
holdings.
The Prudential Global Growth Fund has been a
consistently strong performer, turning in returns
above the Lipper Average over the past one-, five-,
and 10-year periods. Over the life of the Series,
there have been periods when U.S., European, and
Asian stocks each led the world. The Fund can
invest in any of these markets, as well as in any
economic sector, so its managers can shift their
focus to wherever they see the best growth
opportunities. From this broad range of
possibilities, they create a portfolio that
normally includes several countries and economic
groups. This actively managed global
diversification is an attractive feature of the
Fund.
Yours sincerely,
John R. Strangfeld, President
Prudential Global Growth Fund
2
<PAGE>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2000
Investment Adviser's Report
Volatility in TMT
The critical investment decisions for a global fund
over the past half-year and looking forward concern
telecommunications and technology stocks. Globally,
life styles and business practices are being
transformed by the adoption of rapidly evolving
information management devices. The leading
equipment and services companies in these areas
have enormous growth prospects. However, the wide
recognition of their potential led to a global,
explosive upward movement in their shares during
the last months of 1999 and in February 2000, to
very expensive levels even for their huge profit
potential. Although prices corrected in March and
April 2000, these groups still had strong price
appreciation over the six months of our reporting
period ended April 30, 2000.
Our stock selection outperformed even the strong
index returns in several industry groups. The
largest contributors to our return over the period
were a hardware company, PMC-Sierra (United
States), whose price rose 307%; a software company,
Oracle (United States), whose price rose 236%; and
Vodafone AirTouch (United Kingdom), a global
telecommunications giant. We took some profits on
all three, as well as on other companies in these
groups, but their price appreciation more than kept
pace with our sales, so they are still among our
largest holdings. Other firms that were among our
largest holdings and also top performers include
Texas Instruments (United States, semiconductors);
Nokia (Finland, mobile telecommunications
hardware); and Solectron (United States, contract
electronics manufacturing). (See Comments on
Largest Holdings.)
The huge run in TMT prices led us to take profits
on many of our holdings, particularly computer
equipment and software firms, as their appreciation
turned them into increasingly large parts of our
portfolio, reducing our
overall diversification. We also sold most of our
shares of Softbank, a large Japanese conglomerate
of Internet-related businesses. Our cash position
rose to 12.6% by period end as we looked for
alternative investments.
3
<PAGE>
Prudential Global Growth Fund
Holdings expressed as a percentage of the Series'
net assets
Comments on Largest Holdings As of 4/30/00
4.4% Time Warner, Inc. (United States)/Broadcasting
& Publishing
The match-up with America OnLine was made in
heaven. It brings AOL's market savvy and customer
base to Time Warner's extensive content and
broadband distribution capacity.
We expect the new managerial blood will also nudge
Time Warner into a higher gear.
3.9% Solectron Corp. (United States)/Electronic
Components
The world's premier electronics contract
manufacturer. The telecommunications industry
is just beginning to outsource its manufacturing.
We expect both the telecommunications markets and
the use of contract manufacturers to grow. We added
to our holdings when Solectron just missed
analysts' expectations, and the share price dropped
despite earnings growth. A major contributor to
this period's return.
3.4% Vodafone AirTouch plc (United
Kingdom)/Telecommunications
The acquisition of Mannesmann--the largest mobile
phone operator in Germany with interests in
providers in Austria, France, and Italy--cemented
Vodafone's position as the largest provider of
cellular telephone services in the world. It is
also No. 1 in the United Kingdom and, with Verizon
Wireless (its joint venture with Bell Atlantic), in
the United States.
3.4% Texas Instruments, Inc. (United
States)/Electronic Components
The dominant manufacturer (currently nearly 50% of
the market) of digital signal processors (DSPs),
the chips used in digital wireless phones, space
stations, and personal digital assistants. We
believe Texas Instruments can be to the Internet
business what Intel was to desktop computers; huge
growth potential.
2.9% Oracle Corp./Computer Software & Services
A leading maker of database software, Oracle
optimized all its database products for Internet
use. It designed customer-relationship management
modules to run on its database platform. Oracle's
versions of such front-end programs have a
convenience advantage over those of third-party
vendors. Profit grew 59% in 1999.
Holdings are subject to change.
4
<PAGE>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2000
Within the telecommunications equipment sector, we
bought Ericsson (Sweden). We think the greatest
growth potential now is to be found in companies
that build the information network that powers the
new services. Ericsson is a leader in
telecommunications infrastructure equipment, as
well as a major handset manufacturer. We also added
JDS Uniphase and Micron Technology in mid-April
after the bear market in TMT stocks brought down
their price. JDS Uniphase is a leader in the use of
light waves (instead of electricity) to carry
information, while Micron is among the world's
largest manufacturers of DRAMs (computer memory
chips).
Restoring diversity
We reinvested some of the proceeds of our sales in
other sectors that we expect to benefit from the
acceleration of global economic growth. In the
United States, we bought several large retailers,
including Williams-Sonoma, Target, and Wal-Mart. In
France, we added to our holdings in Publicis and
Havas Advertising--the two largest advertising
networks in Europe--and added Thomson Multimedia, a
consumer electronics firm. Our Thomson shares have
already made a substantial contribution to our
return. We continued to redeploy our cash after the
end of our reporting period, adding the drug
companies American Home Products and Pharmacia.
Some weak performers
In a market that became narrowly focused, a
diversified portfolio was bound to hold some stocks
that suffered. In our case, we owned several banks
that were hurt by the global fear of rising
interest rates as well as by the attraction of
investors to the greater sizzle of TMT. Bank of
Scotland (United Kingdom), Wells Fargo (United
States), and Fuji Bank (Japan) were among the
largest drags on our return. We also were hurt by
our holdings in Electronic Arts. It is the largest
video game publisher in the United States, with
franchises in the Sim series group of simulation
computer games (e.g., SimCity), the Madden football
series, and others. Its earnings are currently
suffering somewhat during a transition between
generations of game platforms, and the shares fell.
We still think it is a long-term growth story.
5
<PAGE>
Prudential Global Growth Fund
Semiannual Report April 30, 2000
Looking Ahead
The big issue now is how to deal with the fact
that, while TMT stocks still appear to offer the
best earnings growth prospects on the market, they
also are very expensive compared with other sectors
even after the correction in March and April of
this year. Since investors are becoming more
sensitive to how much they pay for growth, trimming
higher-priced positions and
shopping for good value when purchasing are key. We
are gradually taking profits in some of our
appreciated TMT holdings and are building our
portfolio in other economic sectors. Nonetheless,
we will continue to have a strong focus in the
important TMT industries. Geographically, we expect
to find better values outside the United States,
where stock markets already have had large gains in
the past five years.
Prudential Global Growth Fund Management Team
6
<PAGE>
Prudential Global Growth Fund
Financial
Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C> <C>
----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 87.4%
Common Stocks 87.4%
-------------------------------------------------------------------------------------
Australia 2.0%
937,550 Broken Hill Proprietary Co., Ltd. $ 10,101,622
575,000 Commonwealth Bank of Australia(b) 8,762,161
----------------
18,863,783
-------------------------------------------------------------------------------------
Finland 2.5%
401,160 Nokia Oyj AB 23,017,290
-------------------------------------------------------------------------------------
France 7.1%
17,294 Havas Advertising SA(a)(b) 8,633,264
68,932 Lafarge SA 5,710,136
42,315 Legrand SA 7,887,792
9,795 Publicis SA(a) 4,756,121
114,958 Thomson Multimedia 11,289,382
121,524 Total Fina SA, Ser. B 18,442,747
89,500 Vivendi SA 8,854,400
----------------
65,573,842
-------------------------------------------------------------------------------------
Germany 1.2%
25,650 Infineon Technologies AG(a) 1,766,759
59,800 Siemens AG 8,863,311
----------------
10,630,070
-------------------------------------------------------------------------------------
Hong Kong 0.9%
7,269,500 China Merchants Holdings 4,503,073
52,565,000 Guangzhou Investment(a) 3,509,192
----------------
8,012,265
-------------------------------------------------------------------------------------
Ireland 0.3%
395,180 Bank Of Ireland 2,666,282
-------------------------------------------------------------------------------------
Japan 8.7%
1,246,000 Fuji Bank, Ltd.(b) 10,380,450
265,000 Honda Motor Co., Ltd. 11,848,098
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
----------------------------------------------------------------------------------------
<C> <S> <C> <C>
623 Nippon Telegraph & Telephone Corp. $ 7,727,667
730 NTT Mobile Communications 24,394,150
23,400 Softbank Corp. 5,783,394
86,700 Sony Corp. (New) 10,031,936
86,700 Sony Corp.(b) 9,959,706
----------------
80,125,401
-------------------------------------------------------------------------------------
Netherlands 1.7%
200,050 ING Groep N.V. 10,917,967
304,000 Vendex KBB N.V. 4,685,441
----------------
15,603,408
-------------------------------------------------------------------------------------
Singapore 0.9%
756,600 Singapore Airlines 7,846,157
-------------------------------------------------------------------------------------
Spain 3.7%
1,106,362 Banco Santander Central Hispano SA 11,538,992
361,856 Centros Commerciale Pryca(b) 4,379,465
100,970 Centros Commerciales Continente, SA 1,569,986
723,700 Telefonica de Espana SA(b) 16,109,320
----------------
33,597,763
-------------------------------------------------------------------------------------
Sweden 4.1%
480,060 Hennes & Mauritz AB, Ser. B 12,777,834
262,400 Skanska AB, Ser. B 9,596,135
172,300 Telefonaktiebolaget LM Ericsson 15,357,777
----------------
37,731,746
-------------------------------------------------------------------------------------
United Kingdom 9.5%
429,200 Alliance & Leicester plc 4,329,653
812,886 Bank Of Scotland 7,227,270
548,502 Barclays plc 14,007,622
976,700 Canary Wharf Finance plc(a) 5,313,466
620,760 GKN plc 8,587,413
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
----------------------------------------------------------------------------------------
<C> <S> <C> <C>
2,617,260 Hays plc $ 18,062,526
6,553,357 Vodafone AirTouch plc 29,947,446
----------------
87,475,396
-------------------------------------------------------------------------------------
United States 44.8%
103,600 AT&T Corp.(b) 4,836,825
228,900 AT&T Wireless Group 7,281,880
456,000 Atmel Corp.(a)(b) 22,315,500
73,100 Cablevision Systems Corp. Class A(a) 4,947,956
413,100 Citigroup, Inc. 24,553,631
123,600 Clear Channel Communications(a)(b) 8,899,200
149,800 Comcast Corp. 6,001,363
277,400 Electronic Arts, Inc.(a)(b) 16,782,700
347,700 Fox Entertainment Group, Inc., Class A(a) 8,953,275
136,800 Grupo Televisa, SA(a) (ADR) 8,678,250
133,700 Intertrust Technologies Corp.(a) 3,075,100
100,000 JDS Uniphase Corp.(a) 10,368,750
38,500 Juniper Networks Inc.(a) 8,188,469
59,900 MediaOne Group, Inc.(a) 4,529,938
97,200 Micron Technology, Inc.(a) 13,535,100
152,100 Omnicom Group, Inc.(b) 13,850,606
42,800 OnDisplay Inc. 2,418,200
12,800 OpenTV Corp., Class A(a)(b) 1,048,000
319,100 Oracle Corp.(a)(b) 25,508,056
122,500 PMC-Sierra, Inc.(a) 23,504,687
125,400 Portal Software, Inc. 5,752,725
54,400 Quest Software, Inc.(a) 2,050,200
101,500 Schwab (Charles) Corp.(a)(b) 4,516,750
312,200 SCI Systems, Inc.(a) 16,624,650
725,500 Solectron Corp.(a) 33,962,469
16,800 ST Assembly Test Svcs. Ltd.(a) (ADR) 700,350
200,200 Target Corp. 13,325,813
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
----------------------------------------------------------------------------------------
<C> <S> <C> <C>
193,800 Telefonos de Mexico SA, Class L (ADR)(b) $ 11,397,863
183,600 Texas Instruments, Inc.(b) 29,903,850
424,700 Time Warner, Inc.(b) 38,196,456
916,100 USA Networks, Inc.(a) 21,070,300
119,100 Wal-Mart Stores, Inc. 6,595,163
289,600 Williams-Sonoma, Inc.(a) 10,027,400
----------------
413,401,475
----------------
Total long-term investments (cost $524,819,604) 804,544,878
----------------
SHORT-TERM INVESTMENTS 20.3%
<CAPTION>
Principal
Amount
(000)
<C> <S> <C> <C>
Commercial Paper 12.2%
8,000 Bombardier Capital Inc.
6.20%, 5/16/00(c) 7,977,956
10,000 Citigroup, Inc.
6.07%, 5/22/00(c) 9,962,906
3,200 Comdisco Inc.
6.22%, 5/15/00(c) 3,191,706
4,000 Conoco Inc.
6.20%, 5/30/00(c) 3,982,634
5,085 Cox Enterprise Inc.
6.22%, 5/17/00(c) 5,070,064
2,000 Deutsche Bank Financial Inc.
6.03%, 5/12/00(c) 19,959,800
8,500 Enterprise Funding Corp.
6.05%, 5/16/00(c) 8,477,144
5,000 General Electric Cap. Svcs.
6.07%, 5/18/00(c) 4,984,825
8,000 GPU Australia Holdings Inc.
6.25%, 5/15/00(c) 7,979,167
5,000 Indiana Michigan Power Co.
6.25%, 5/16/00(c) 4,986,111
12,000 MCI WorldCom Inc.
6.15%, 5/1/00(c) 11,997,950
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Principal
Amount
(000) Description Value (Note 1)
<C> <S> <C> <C>
-----------------------------------------------------------------------------------------
$ 5,000 Phillips Petroleum Co.
6.29%, 5/16/00(c) $ 4,986,022
10,000 Sears Roebuck Accept. Corp.
6.12%, 5/11/00(c) 9,981,300
9,000 TRW Inc.
6.24%, 5/19/00(c) 8,970,360
----------------
Total commercial paper (cost $112,507,945) 112,507,945
-------------------------------------------------------------------------------------
Time Deposits 0.6%
4,950 State Street Bank & Trust Co.
8.88%, 5/1/00
(cost $4,950,000) 4,950,000
-------------------------------------------------------------------------------------
U.S. Government Securities 1.2%
11,600 United States Treasury Bills, Zero Coupon, 8/17/00
(cost $11,405,258) 11,405,258
-------------------------------------------------------------------------------------
Repurchase Agreements 6.3%
58,304 Joint Repurchase Agreement Account,
4.90%, 5/03/99
(cost US$58,304,000; Note 5) 58,304,000
----------------
Total short-term investments
(cost $187,167,203) 187,167,203
----------------
Total Investments 107.7%
(cost $711,986,807) 991,712,081
Liabilities in excess of other assets (7.7%) (71,253,219)
----------------
Net Assets 100% $ 920,458,862
----------------
----------------
</TABLE>
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Portion of securities on loan, see Note 4.
(c) Represents security, or portion thereof, purchased with cash collateral
received for securities on loan.
ADR--American Depository Receipt.
12 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<S> <C> <C>
The industry classification of portfolio holdings and liabilities in excess of
other assets shown as a percentage of net assets as of April 30, 2000 was as
follows:
Telecommunications 16.3%
Electronic Components 14.9
Banking 10.2
Financial Services 9.3
Broadcasting & Publishing 7.9
Repurchase Agreement 6.3
Retail 5.8
Computer Software & Services 5.3
Cash & Other Equivalents 3.9
Advertising 3.0
Consumer Electronics 2.2
Automobiles & Auto Parts 2.2
Oil & Gas Exploration/Production 2.0
Business & Public Services 2.0
Broadcasting 1.9
Semiconductors 1.7
Building & Construction 1.7
U.S. Treasury Securities 1.2
Cable & Pay Television Systems 1.2
Metals 1.1
Manufacturing 1.0
Conglomerates 1.0
Networking 0.9
Internet 0.9
Electrical & Electronics 0.8
Airlines 0.8
Real Estate 0.6
Distribution/Wholesalers 0.6
Miscellaneous Manufacturing 0.5
Real Estate-Development 0.4
Technology 0.1
-----
107.7
Liabilities in excess of other assets (7.7)
-----
100.0%
-----
-----
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
April 30, 2000
<S> <C> <C>
--------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost US$711,986,807) $ 991,712,081
Foreign currency, at value (cost US$41,418,975) 39,853,145
Cash 922,412
Receivable for investments sold 10,119,106
Forward currency contract - amount receivable from
counterparties 7,194,625
Receivable for Series shares sold 1,090,094
Dividends and interest receivable 854,227
Deferred expenses and other assets 10,630
Receivable for securities lending income 3,663
--------------
Total assets 1,051,759,983
--------------
LIABILITIES
Payable to broker for collateral for securities on loan 116,925,606
Payable for investments purchased 7,875,399
Payable for Series shares reacquired 3,620,669
Unrealized depreciation on swaps 1,079,770
Management fee payable 563,683
Securities lending rebate payable 493,864
Distribution fee payable 393,942
Accrued expenses 285,827
Withholding taxes payable 52,546
Payable to securities lending agent 9,815
--------------
Total liabilities 131,301,121
--------------
NET ASSETS $ 920,458,862
--------------
--------------
Net assets were comprised of:
Common stock, at par $ 384,005
Paid-in capital in excess of par 468,620,322
--------------
469,004,327
Accumulated net investment loss (17,996,238)
Accumulated net realized gain on investments and
foreign currency transactions 185,269,682
Net unrealized appreciation on investments and foreign
currencies 284,181,091
--------------
Net assets, April 30, 2000 $ 920,458,862
--------------
--------------
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Statement of Assets and Liabilities (Unaudited) Cont'd.
<TABLE>
<CAPTION>
April 30, 2000
<S> <C> <C>
--------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share ($428,965,100
/ 17,428,357 shares of common stock issued and
outstanding) $24.61
Maximum sales charge (5% of offering price) 1.30
--------------
Maximum offering price to public $25.91
--------------
--------------
Class B:
Net asset value, offering price and redemption price per
share ($380,900,751 / 16,447,374 shares of common stock
issued and outstanding) $23.16
--------------
--------------
Class C:
Net asset value and redemption price per share ($19,267,929
/ 832,178 shares of common stock issued and outstanding) $23.15
Sales charge (1% of offering price) .23
--------------
Offering price to public $23.38
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per
share ($91,325,082 / 3,692,590 shares of common stock
issued and outstanding) $24.73
--------------
--------------
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Dividends (net of foreign withholding taxes of $620,746) $ 1,535,201
Interest 981,023
Income from securities loaned (net of rebate of $670,238) 32,322
--------------
Total income 2,548,546
--------------
Expenses
Management fee 3,261,736
Distribution fee--Class A 517,265
Distribution fee--Class B 1,725,261
Distribution fee--Class C 87,388
Transfer agent's fees and expenses 696,000
Custodian's fees and expenses 184,000
Reports to shareholders 149,000
Registration fees 30,000
Audit fees and expenses 17,000
Legal fees and expenses 10,000
Directors' fees and expenses 6,000
Insurance expenses 6,000
Miscellaneous 3,734
--------------
Total expenses 6,693,384
--------------
Net investment loss (4,144,838)
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments 186,092,741
Foreign currencies (2,673,257)
--------------
183,419,484
--------------
Net change in unrealized appreciation on:
Investments 4,314,534
Foreign currencies 4,466,525
--------------
8,781,059
--------------
Net gain on investments and foreign currencies 192,200,543
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 188,055,705
--------------
--------------
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 2000 October 31, 1999
<S> <C> <C> <C>
------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment loss $ (4,144,838) $ (3,771,526)
Net realized gain on investment and foreign
currency transactions 183,419,484 68,352,009
Net change in unrealized appreciation on
investments and foreign currencies 8,781,059 137,002,352
-------------- ----------------
Net increase in net assets resulting from
operations 188,055,705 201,582,835
-------------- ----------------
Dividends and distributions (Note 1)
Distributions in excess of net investment
income
Class A (2,901,668) (2,173,921)
Class B (788,169) (347,370)
Class C (27,278) (6,461)
Class Z (553,480) (394,708)
-------------- ----------------
(4,270,595) (2,922,460)
-------------- ----------------
Distributions from net realized capital
gains
Class A (28,389,294) (9,316,805)
Class B (27,972,256) (10,421,104)
Class C (1,234,352) (387,651)
Class Z (4,318,040) (1,315,694)
-------------- ----------------
(61,913,942) (21,441,254)
-------------- ----------------
Series share transactions (net of share
conversions) (Note 7)
Proceeds from shares sold 469,533,163 489,274,646
Net asset value of shares issued in
reinvestment
of distributions 63,560,898 23,377,927
Cost of shares reacquired (447,198,323) (549,482,065)
-------------- ----------------
Net increase (decrease) in net assets from
Series
share transactions 85,895,738 (36,829,492)
-------------- ----------------
Total increase 207,766,906 140,389,629
NET ASSETS
Beginning of period 712,691,956 572,302,327
-------------- ----------------
End of period $ 920,458,862 $ 712,691,956
-------------- ----------------
-------------- ----------------
</TABLE>
See Notes to Financial Statements 17
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited)
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: Prudential Global
Growth Fund, formerly known as the Global Series (the 'Series') and Prudential
International Value Fund, formerly known as the International Stock 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.
18
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
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 year, the Fund does not isolate that
portion of the results of operations arising as a result of changes in the
foreign exchange rates from the fluctuations arising from changes in the market
prices of securities held at year end. Similarly, the Fund does not isolate the
effect of changes in foreign exchange rates from the fluctuations arising from
changes in the market prices of long-term portfolio securities sold during the
year. 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 year end exchange rates are reflected as a component of net
unrealized appreciation on investments and foreign currencies.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of domestic origin
as a result of, among other factors, the possibility of political and economic
instability and the level of governmental supervision and regulation of foreign
securities markets.
Forward Currency Contracts: A forward currency contract is a commitment
to purchase or sell a foreign currency at a future date at a negotiated forward
rate. The Fund enters into forward currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings or on specific receivables and payables denominated in a foreign
currency. The contracts are valued daily at current exchange rates and any
unrealized gain or loss is included in net unrealized appreciation or
depreciation on investments and foreign currencies. 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
19
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
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.
Swaps: A swap is an agreement between two parties to exchange a series
of cash flows at specified intervals. Based on a notional amount, each party
pays an interest rate or the change in the value of a security. Dividends and
interest on the securities in the swap are included in the value of the
exchange. The swaps are valued daily at current market value and any unrealized
gain or loss is included in net unrealized appreciation or depreciation on
investments. Gain or loss is realized on the termination date of the swap and is
equal to the difference between the Fund's basis in the swap and the proceeds of
the closing transaction, including any fees. During the period that the swap
agreement is open, the Fund may be subject to risk from the potential inability
of the counterparty to meet the terms of the agreement.
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.
20
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
Securities Lending: The Fund may lend securities to broker-dealers. The
loans are secured by collateral at least equal at all times to the market value
of the securities loaned. Loans are subject to termination at the option of the
borrower or the Fund. Upon termination of the loan, the borrower will return to
the lender securities identical to the loaned securities. The Fund may bear the
risk of delay in recovery of, or even loss of rights in, the securities loaned
should the borrower of the securities fail financially. The Fund receives
compensation, net of any rebate, for lending its securities in the form of fees
or it retains a portion of interest on the investment of any cash received as
collateral. The Fund also continues to receive interest and dividends on the
securities loaned and any gain or loss in the market price of the securities
loaned that may occur during the term of the loan. Prudential Securities
Incorporated ('PSI') is the securities lending agent for the Fund. For the six
months ended April 30, 2000, PSI has been compensated approximately $10,000 for
these services.
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 and increase accumulated net
realized gain on investments by $2,673,257 for realized foreign currency losses
during the six months ended April 30, 2000. 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 services of PIC,
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
21
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
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%, .94 of 1% and 1% of the average daily
net assets of Class A, B and C shares, respectively, for the period ended April
30, 2000.
PIMS has advised the Series that in the six months ended, they received
approximately $137,560 and $28,820 in front-end sales charges resulting from
sales of Class A and Class C shares, respectively, during the six months ended
April 30, 2000. 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 has advised the Series that during the six months ended April 30,
2000, it received approximately $210,621 and $2,452 in contingent deferred sales
charges imposed upon certain redemptions by Class B and C shareholders,
respectively.
PIFM, PIC amd PIMS are wholly owned subsidiaries of The Prudential
Insurance Company of America ('Prudential').
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.
Interest on any such borrowings 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 of .080 of 1% of the unused portion
of the credit facility. The commitment fee is accrued and paid quarterly on a
pro rata basis by the Funds. The expiration date of the SCA is March 9, 2001.
Prior to March 9, 2000, the commitment fee was .065 of 1% of the unused portion
of the credit facility. The Fund did not borrow any amounts pursuant to the SCA
during the six months ended April 30, 2000.
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,
2000, the Series incurred fees of approximately $658,000 for the services of
PMFS. As of
22
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
April 30, 2000, approximately $115,000 of such fees were due to PMFS. Transfer
agent fees and expenses in the Statement of Operations include certain
out-of-pocket expenses paid to nonaffiliates.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 2000 were $389,975,324 and $267,166,035,
respectively.
The United States federal income tax basis of the Series' investments at
April 30, 2000 was $594,528,862 and, accordingly, net unrealized appreciation
for federal income tax purposes was $279,725,274 (gross unrealized
appreciation--$308,913,702; gross unrealized depreciation--$29,188,428).
As of April 30, 2000, the Fund had securities on loan with an aggregate
market value of $115,203,633. The Fund received $116,925,606 in cash as
collateral for securities on loan which was used to purchase highly liquid
short-term investments in accordance with the Fund's securities lending
procedures.
The World Fund--Global Growth Fund entered 3 swap agreements with Merrill
Lynch International. The Series receives the change in the market value of
shares of Taiwan Semiconductor including dividends and the Series pays 3 month
LIBOR plus 0.75% based on the value of the shares of Taiwan Semiconductor on the
date the contract was entered into. In addition, the Series will pay a fee at
termination of the swap equal to the number of shares of Taiwan Semiconductor
times the market price on termination date times 0.0075. Details of the swap
agreements are as follows:
<TABLE>
<CAPTION>
Termination Current Current
Open Date Date Shares Value Basis Depreciation
--------- ----------- -------- ---------- ----------- ------------
<C> <C> <S> <C> <C> <C>
8/16/99 8/18/00 955,651 $3,537,852 $ 3,924,954 $ (387,102)
11/18/99 8/18/00 664,000 2,933,247 3,251,807 (318,560)
12/23/99 8/18/00 724,521 3,225,892 3,600,000 (374,108)
---------- ----------- ------------
$9,696,991 $10,776,761 $ (1,079,770)
</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, 2000, the Fund
had a .14% unidivided interest in the repurchase agreements in the joint
account. The undivided interest for the Series represents $58,304,000 in
principal amount. As of such date,
23
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
each repurchase agreement in the joint account and the collateral therefore were
as follows:
ABN AMRO Incorporated, 5.72%, in the principal amount of $160,000,000,
repurchase price $160,076,267, due 5/1/00. The value of the collateral including
accrued interest was $163,200,995.
Bear, Stearns & Co. Inc., 5.72%, in the principal amount of $160,000,000,
repurchase price $160,076,267, due 5/1/00. The value of the collateral including
accrued interest was $166,727,544.
Credit Suisse First Boston Corp., 5.75%, in the principal amount of
$160,000,000, repurchase price $160,076,667, due 5/1/00. The value of the
collateral including accrued interest was $165,506,481.
Morgan (J.P.) Securities, Inc., 5.72%, in the principal amount of
$210,000,000, repurchase price $210,100,100, due 5/1/00. The value of the
collateral including accrued interest was $214,200,036.
Salomon Smith Barney, Inc., 5.65%, in the principal amount of
$162,577,000, repurchase price $162,653,547, due 5/1/00. The value of the
collateral including accrued interest was $165,893,849.
Note 6. 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 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.
24
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
-------------------------------------------------------- ------------ -------------
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 11,438,755 $ 276,589,349
Shares issued in reinvestment of distributions 1,317,634 29,804,892
Shares reacquired (11,942,638) (291,453,637)
------------ -------------
Net decrease in shares outstanding before conversion 813,751 14,940,604
Shares issued upon conversion from Class B 585,301 14,445,137
------------ -------------
Net increase in shares outstanding 1,399,052 $ 29,385,741
------------ -------------
------------ -------------
Year ended October 31, 1999:
Shares sold 13,518,704 $ 254,698,276
Shares issued in reinvestment of distributions 666,308 10,960,764
Shares reacquired (14,682,814) (277,579,563)
------------ -------------
Net decrease in shares outstanding before conversion (497,802) (11,920,523)
Shares issued upon conversion from Class B 993,970 18,903,039
------------ -------------
Net increase in shares outstanding 496,168 $ 6,982,516
------------ -------------
------------ -------------
<CAPTION>
Class B
--------------------------------------------------------
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 4,306,749 $ 98,239,706
Shares issued in reinvestment of distributions 1,296,267 27,649,390
Shares reacquired (4,071,368) (92,900,014)
------------ -------------
Net decrease in shares outstanding before conversion 1,531,648 32,989,082
Shares reacquired upon conversion into Class A (621,190) (14,445,137)
------------ -------------
Net increase in shares outstanding 910,458 $ 18,543,945
------------ -------------
------------ -------------
Year ended October 31, 1999:
Shares sold 8,358,906 $ 147,941,437
Shares issued in reinvestment of distributions 661,620 10,321,280
Shares reacquired (10,401,728) (183,866,717)
------------ -------------
Net decrease in shares outstanding before conversion (1,381,202) (25,604,000)
Shares reacquired upon conversion into Class A (1,051,842) (18,903,039)
------------ -------------
Net decrease in shares outstanding (2,433,044) $ (44,507,039)
------------ -------------
</TABLE>
25
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C Shares Amount
-------------------------------------------------------- ------------ -------------
Six months ended April 30, 2000:
<S> <C> <C>
Shares sold 1,159,023 $ 26,128,686
Shares issued in reinvestment of distributions 58,297 1,243,470
Shares reacquired (1,095,274) (24,817,665)
------------ -------------
Net increase in shares outstanding 122,046 $ 2,554,491
------------ -------------
Year ended October 31, 1999:
Shares sold 2,698,972 $ 47,616,508
Shares issued in reinvestment of distributions 24,783 386,616
Shares reacquired (2,715,319) (47,898,845)
------------ -------------
Net increase in shares outstanding 8,436 $ 104,279
------------ -------------
<CAPTION>
Class Z
--------------------------------------------------------
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 2,760,020 $ 68,575,422
Shares issued in reinvestment of distributions 214,330 4,863,146
Shares reacquired (1,556,425) (38,027,007)
------------ -------------
Net increase in shares outstanding 1,417,925 $ 35,411,561
------------ -------------
------------ -------------
Year ended October 31, 1999:
Shares sold 2,088,178 $ 39,018,425
Shares issued in reinvestment of distributions 103,655 1,709,267
Shares reacquired (2,156,231) (40,136,940)
------------ -------------
Net increase in shares outstanding 35,602 $ 590,752
------------ -------------
------------ -------------
</TABLE>
26
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial
Highlights
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Class A
----------------
Six Months Ended
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 21.19
----------------
Income from investment operations
Net investment income (loss) (0.05)
Net realized and unrealized gain on investment and foreign
currency transactions 5.47
----------------
Total from investment operations 5.42
----------------
Less distributions
Distributions in excess of net investment income (0.19)
Distributions from net realized capital gains (1.81)
----------------
Total distributions (2.00)
----------------
Net asset value, end of period $ 24.61
----------------
----------------
TOTAL RETURN(b): 26.56%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $428,965
Average net assets (000) $416,086
Ratios to average net assets:
Expenses, including distribution fees 1.25%(c)
Expenses, excluding distribution fees 1.00%(c)
Net investment income (loss) (0.67)%(c)
For Class A, B, C and Z shares:
Portfolio turnover rate 33%
</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.
28 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class A
---------------------------------------------------------------------------------------------------------
Year Ended October 31,
---------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995(a)
---------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 16.16 $ 17.27 $ 16.62 $ 15.52 $ 14.89
---------------- ---------------- ---------------- ---------------- ----------------
(.05) (.02) (.01) -- (.01)
5.82 .82 1.96 1.83 .81
---------------- ---------------- ---------------- ---------------- ----------------
5.77 .80 1.95 1.83 .82
---------------- ---------------- ---------------- ---------------- ----------------
(.14) (.11) (.05) -- --
(.60) (1.80) (1.25) (.73) (.19)
---------------- ---------------- ---------------- ---------------- ----------------
(.74) (1.91) (1.30) (.73) (.19)
---------------- ---------------- ---------------- ---------------- ----------------
$ 21.19 $ 16.16 $ 17.27 $ 16.62 $ 15.52
---------------- ---------------- ---------------- ---------------- ----------------
---------------- ---------------- ---------------- ---------------- ----------------
36.83% 5.71% 12.42% 12.33% 5.74%
$339,620 $251,018 $258,080 $234,700 $222,002
$298,009 $260,774 $265,380 $222,948 $174,316
1.32% 1.38% 1.39% 1.45% 1.51%
1.07% 1.13% 1.14% 1.20% 1.26%
(.27)% (.14)% .01% (.04)% .10%
59% 61% 64% 52% 50%
</TABLE>
See Notes to Financial Statements 29
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class B
----------------
Six Months Ended
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 19.98
----------------
Income from investment operations
Net investment loss (0.13)
Net realized and unrealized gain on investment and foreign
currency transactions 5.17
----------------
Total from investment operations 5.04
----------------
Less distributions
Distributions in excess of net investment income (0.05)
Distributions from net realized capital gains (1.81)
----------------
Total distributions (1.86)
----------------
Net asset value, end of period $ 23.16
----------------
----------------
TOTAL RETURN(b): 26.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $380,901
Average net assets (000) $369,735
Ratios to average net assets:
Expenses, including distribution fees 1.94%(c)
Expenses, excluding distribution fees 1.00%(c)
Net investment loss (1.36)%(c)
</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.
30 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class B
----------------------------------------------------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995(a)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 15.26 $ 16.42 $ 15.96 $ 15.03 $ 14.53
---------------- ---------------- ---------------- ---------------- ----------------
(.17) (.13) (.12) (.08) (.11)
5.51 .78 1.88 1.74 .80
---------------- ---------------- ---------------- ---------------- ----------------
5.34 .65 1.76 1.66 .69
---------------- ---------------- ---------------- ---------------- ----------------
(.02) (.01) (.05) -- --
(.60) (1.80) (1.25) (.73) (.19)
---------------- ---------------- ---------------- ---------------- ----------------
(.62) (1.81) (1.30) (.73) (.19)
---------------- ---------------- ---------------- ---------------- ----------------
$ 19.98 $ 15.26 $ 16.42 $ 15.96 $ 15.03
---------------- ---------------- ---------------- ---------------- ----------------
---------------- ---------------- ---------------- ---------------- ----------------
36.00% 4.95% 11.70% 11.57% 4.98%
$310,458 $274,248 $335,007 $326,978 $268,498
$297,322 $312,569 $350,518 $294,230 $287,656
1.99% 2.06% 2.07% 2.12% 2.19%
1.07% 1.13% 1.14% 1.20% 1.27%
(.96)% (.82)% (.68)% (.67)% (.84)%
</TABLE>
See Notes to Financial Statements 31
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C
----------------
Six Months Ended
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 19.97
--------
Income from investment operations
Net investment loss (0.11)
Net realized and unrealized gain on investment and foreign
currency transactions 5.14
--------
Total from investment operations 5.03
--------
Less distributions
Distributions in excess of net investment income (0.04)
Distributions from net realized capital gains (1.81)
--------
Total distributions (1.85)
--------
Net asset value, end of period $ 23.15
--------
--------
TOTAL RETURN(b): 26.10%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 19,268
Average net assets (000) $ 17,574
Ratios to average net assets:
Expenses, including distribution fees 2.00%(d)
Expenses, excluding distribution fees 1.00%(d)
Net investment loss (1.41)%(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 year reported and includes reinvestment of dividends and
distributions. Total returns for periods of less than a full year are not
annualized.
(c) Distribution in excess of net investment income was $.001.
(d) Annualized.
32 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C
----------------------------------------------------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995(a)
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 15.25 $ 16.41 $ 15.96 $15.03 $14.53
-------- -------- -------- ------- -------
(.18) (.14) (.11) (.05) (.11)
5.51 .78 1.86 1.71 .80
-------- -------- -------- ------- -------
5.33 .64 1.75 1.66 .69
-------- -------- -------- ------- -------
(.01) (c) (.05) -- --
(.60) (1.80) (1.25) (.73) (.19)
-------- -------- -------- ------- -------
(.61) (1.80) (1.30) (.73) (.19)
-------- -------- -------- ------- -------
$ 19.97 $ 15.25 $ 16.41 $15.96 $15.03
-------- -------- -------- ------- -------
-------- -------- -------- ------- -------
35.94% 4.90% 11.63% 11.57% 4.98%
$ 14,184 $ 10,698 $ 10,244 $7,693 $3,733
$ 11,866 $ 10,286 $ 9,093 $5,516 $2,284
2.07% 2.13% 2.14% 2.20% 2.25%
1.07% 1.13% 1.14% 1.20% 1.25%
(1.02)% (.90)% (.75)% (.72)% (.76)%
</TABLE>
See Notes to Financial Statements 33
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class Z
----------------
Six Months Ended
April 30,
2000(a)
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 21.29
--------
Income from investment operations
Net investment income (loss) --
Net realized and unrealized gain on investment and foreign
currency transactions 5.48
--------
Total from investment operations 5.48
--------
Less distributions
Distributions in excess of net investment income (0.23)
Distributions from net realized capital gains (1.81)
--------
Total distributions (2.04)
--------
Net asset value, end of period $ 24.73
--------
--------
TOTAL RETURN(b): 26.73%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 91,325
Average net assets (000) $ 71,181
Ratios to average net assets:
Expenses, including distribution fees 1.00%(d)
Expenses, excluding distribution fees 1.00%(d)
Net investment income (loss) (0.38)%(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.
34 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class Z
-------------------------------------------------------------------------------------
Year Ended July 31, March 1, 1996(a)
---------------------------------------------------------- through
1999(a) 1998(a) 1997 October 31, 1996
-------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 16.23 $ 17.35 $ 16.65 $ 15.42
-------- -------- -------- --------
-- .02 .04 .06
5.84 .82 1.96 1.18
-------- -------- -------- --------
5.84 .84 2.00 1.24
-------- -------- -------- --------
(.18) (.16) (.05) --
(.60) (1.80) (1.25) (.01)
-------- -------- -------- --------
(.78) (1.96) (1.30) (.01)
-------- -------- -------- --------
$ 21.29 $ 16.23 $ 17.35 $ 16.65
-------- -------- -------- --------
-------- -------- -------- --------
37.25% 5.97% 12.72% 8.06%
$ 48,430 $ 36,338 $ 44,412 $ 40,416
$ 42,312 $ 41,799 $ 46,545 $ 26,452
1.07% 1.13% 1.14% 1.20%(d)
1.07% 1.13% 1.14% 1.20%(d)
(.02)% .12% .27% .55%(d)
</TABLE>
See Notes to Financial Statements 35
<PAGE>
Prudential Global Growth Fund
Getting the Most from Your Prudential Mutual Fund
When you invest through Prudential Mutual Funds,
you receive financial advice from a Prudential
Securities Financial Advisor or 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. 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 available
mutual funds to find the ones that fit your
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
should remind you that you're investing for the
long haul.
<PAGE>
www.prudential.com (800) 225-1852
For More Information
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Directors
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
David R. Odenath, Jr.
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
David R. Odenath, Jr., Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
William V. Healey, 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 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
Fund Symbols NASDAQ CUSIP
Class A PRGAX 743969107
Class B PRGLX 743969206
Class C PRGCX 743969305
Class Z PWGZX 743969404
The views expressed in this report and information
about the Fund's portfolio holdings are for the
period covered by this report and
are subject to change thereafter.
The accompanying financial statements as
of April 30, 2000, were not audited and,
accordingly, no opinion is expressed on them.
<PAGE>
BULK RATE
U.S. POSTAGE
PAID
Permit 6807
New York, NY
(LOGO)
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
MF115E2 743969107 743969206 743969305 743969404
(LOGO)Printed on Recycled Paper
<PAGE>
SEMIANNUAL REPORT APRIL 30, 2000
Prudential
International Value Fund
Fund Type International stock
Objective Long-term growth of capital
(GRAPHIC)
The views expressed in this report and information
about the Fund's portfolio holdings are for the
period covered by this report and are subject to
change thereafter.
This report is not authorized for distribution to
prospective investors unless preceded or
accompanied by a current prospectus.
(LOGO)
<PAGE>
Investment Goals and Style
The Prudential International Value Fund (the
Series) invests primarily in stocks of companies
located outside the United States. We use a value
investment style to find stocks selling at low
prices compared with their earnings to seek long-
term growth of capital. Income is a secondary
objective. There are special risks associated with
foreign investments, including political, economic
and social risks, and potential illiquidity. There
can be no assurance that the Series will achieve
its investment objective.
Effective April 3, 2000, the Series was no longer
limited to investing a maximum of 25% of its assets
in one country. This is not meant to imply a change
in investment process, but it will give the Series
more flexibility to invest in countries that
represent a larger percentage of international
market capitalization. For comparison, at period
end, Japanese stocks made up 27% of the Morgan
Stanley Capital International EAFE Index, a widely
used index of international developed country
stocks.
Geographic Concentration
Expressed as a percentage of
net assets as of 4/30/00
44.7% Continental Europe
20.8 Japan
10.4 United Kingdom
7.9 Pacific Basin (excl. Japan)
4.4 Canada
1.1 Other
10.7 Cash & Equivalents
Ten Largest Holdings
Expressed as a percentage of
net assets as of 4/30/00
3.6% Christian Dior SA
Retail
3.4 Bipop-Carire SpA
Commercial Banking
3.2 Oriental Land Co. Ltd.
Resort/Theme Parks
2.6 Hitachi Ltd.
Electric Products--Misc.
2.6 Mitsui Fudosan Co., Ltd.
Real Estate Development
2.6 Daiichi Pharmaceutical Co., Ltd.
Medical--Drugs
2.5 Matsushita Electric Ind. Co., Ltd.
Audio/Video Products
2.4 Bank of Nova Scotia
Commercial Banking
2.2 ING Groep N.V.
Money Centers Banks
2.2 Korea Electric Power Corp.
Electric--Integrated
<PAGE>
www.prudential.com (800) 225-1852
Performance at a Glance
Cumulative Total Returns1 As of 4/30/00
Six One Five Ten Since
Months Year Years Years Inception2
Class A 3.96% 9.23% N/A N/A 50.69%
Class B 3.69 8.52 N/A N/A 46.74
Class C 3.69 8.52 N/A N/A 46.74
Class Z 4.24 9.65 80.03% N/A 166.75
Lipper International
Fund Avg.3 14.17 24.75 89.12 N/A ***
Average Annual Total Returns1 As of 4/30/00
One Five Ten Since
Year Years Years Inception2
Class A 3.76% N/A N/A 10.48%
Class B 3.52 N/A N/A 10.82
Class C 6.44 N/A N/A 10.93
Class Z 9.65 12.48% N/A 14.01
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 Z shares are not subject to a sales charge or
distribution and service (12b-1) fees.
2 Inception dates: Class A, B, and C, 9/23/96;
Class Z, 11/5/92.
3 Lipper average returns are for all funds in each
share class for the six-month, one-, and five-year
periods in the International Fund category. The
Lipper average is unmanaged. Funds in the
international fund category invest their assets in
securities with primary trading markets outside the
United States.
*** Lipper Since Inception returns are 64.28% for
Class A, B, and C, and 168.78% for Class Z, based
on all funds in each share class.
1
<PAGE>
(LOGO) June 15, 2000
Dear Shareholder,
During the six-month reporting period ended April
30, 2000, there was a sharp change in the global
markets. After climbing steeply, they peaked in
March and had a swift downward correction. Both the
rise and subsequent fall were led by technology,
media, and telecommunications (TMT) stocks. Because
of its value style, the Series did not fully share
in the upward growth surge, but it wasn't hurt as
much in the correction either.
Overall, the 3.96% gain of the Series' Class A
shares--a 1.23% loss to those paying the maximum
one-time Class A share sales charge--trailed the
14.17% Lipper International Fund Average. Lipper
does not separate international funds by investment
style, and the market was very unfavorable to the
Series' value style for most of this period.
Regional differences and investment value were less
significant for share-price performance than a
stock's economic sector and price momentum.
Expensive stocks first got dramatically more
expensive, and then began to fall as investors
became more discriminating about value. Over the
full period, the Series' industrial stocks hurt its
performance, while its limited holdings in
telecommunications and luxury goods helped.
The strong contrast between February's growth
market and April's value market is a good
illustration of the importance of diversification.
We recommend that investors hold both value- and
growth-style mutual funds to dilute the impact of
such swings in market favor.
Yours sincerely,
John R. Strangfeld, President
Prudential International Value Fund
2
<PAGE>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2000
Investment Adviser's Report
Value investors buy stocks that are out of favor
and hope to profit from changes in the economic and
investing climate. When Asian economies fell into
recession in 1997-1998, many value opportunities
were created. Now, Asian economies, including the
giant Japan, have started to recover, and many of
our holdings are reaping the benefits.
Two of the largest contributors to our return were
luxury goods marketers--Christian Dior (France) (see
Comments on Largest Holdings) and Swatch
(Switzerland), which markets luxury brand watches
such as Longines and Omega, and other lines as
well. Luxury brand names sold well to Asian
consumers, and these companies were hit hard when
Asian spending fell. The luxury brands are
recovering, helped also by the general rise in
economic optimism in Europe. We took some profits
on Swatch.
Among European banks, consolidation and
disintermediation--the movement of savings from low-
paying bank accounts to mutual funds--set the stage
for strong profit growth because European banks
earn fee income by selling and managing mutual fund
products. We had a large position in Banca Popolare
di Brescia (BIPOP), which merged with Cassa di
Risparmio di Reggio Emilia (Carire) in 1999 to form
BIPOP-Carire (see Comments on Largest Holdings).
Its shares returned 148% over our reporting period.
Our industrials generally hurt our performance, as
investment money focused on technology and
telecommunications stocks during most of this
period. An exception for us was Bouygues, a French
conglomerate with a large exposure to the
telecommunications sector. It had been among our
largest holdings at the beginning of the period. It
moved up 112% over the period, and we took some
profits.
We were less fortunate with our Asian industrials.
The largest negative impact came from Pohang Iron
and Steel (Korea), which suffered along with
3
<PAGE>
Prudential International Value Fund
Holdings expressed as a percentage of the Series'
net assets
Comments on Largest Holdings As of 4/30/00
3.6% Christian Dior SA (France)/Retail
Luxury goods consumer brands--such as Moet &
Chandon, Louis Vuitton, and Givenchy.
A long-time holding, it was hurt when Japanese
consumers stopped spending. Now it is recovering
along with the global economy and has shown strong
earnings growth. It returned 54% in our six-month
reporting period.
3.4% BIPop-Carire (Italy)/Commercial Banking
A well-diversified bank holding company in Northern
Italy, it offers a range of financial services that
includes the sale and management of mutual funds,
insurance sales, and online stock trading (the
first in Italy). The company increased the assets
it manages in fee-based programs. In fiscal year 1998, profits
more than doubled.
3.2% Oriental Land Co. Ltd. (Japan)/Resort/Theme
Parks
Japanese real estate had been exorbitantly
overpriced, and then plummeted, contributing
to the severe deflationary environment in Japan and
an overreaction in real estate prices. The economy
is turning, and real estate is recovering. In
addition, Oriental owns Japan's Disneyworld, which
is growing and expanding. Mitsui Fudosan develops
and manages condominiums. We bought the stock very
inexpensively. As the economy picks up steam,
we believe the condo market will turn.
2.6% Hitachi Ltd. (Japan)/Electric Products--Misc.
Primarily industrial and consumer electronic
equipment, such as computers and components. A
long-term holding that already has given us
substantial gains.
2.6% Mitsui Fudosan Co. Ltd. (Japan)/Real Estate
Development
Japanese real estate had been exorbitantly
overpriced, and then plummeted, contributing
to the severe deflationary environment in Japan and
an overreaction in real estate prices. The economy
is turning, and real estate is recovering. In
addition, Oriental owns Japan's Disneyworld, which
is growing and expanding. Mitsui Fudosan develops
and manages condominiums. We bought the stock very
inexpensively. As the economy picks up steam,
we believe the condo market will turn.
Holdings are subject to change.
4
<PAGE>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2000
the weak Korean stock market. Nonetheless, it is
the lowest-cost steel producer in the world, and we
expect the reviving economies in Asia to drive up
both its earnings and share price. Carter Holt
Harvey, an Australia-based lumber and wood product
company, also saw a sharp share-price decline
because it has businesses that are economically
sensitive. Its earnings turned up sharply in 1999,
but the share price has not yet responded.
Two Japanese insurance companies--Yasuda Fire &
Marine Insurance and Sumitomo Marine & Fire
Insurance--also were among our worst performers.
Investors have been uninterested in this sector. We
believe these companies are very attractively
valued. The share prices had a nice bounce when
several analysts issued favorable research reports
after the end of our period.
Reacting to the changing market
The market's narrow focus on technology and
telecommunications stocks has moved some of our
holdings nearer to what we consider full pricing
and left value opportunities in other industries.
We reduced our position in Hitachi, which has been
a good long-term holding. It is no longer as
attractive as it was. We also took some profits in
Sony. Among telecommunications firms, we took our
profits and eliminated both British Telecom (United
Kingdom) and Cable & Wireless (Australia).
Among industrials, we had gains in Rio Tinto (a
U.K.-based company primarily in steel) in the
fourth quarter of 1999 and took some profits as it
corrected somewhat in 2000. We also reduced our
holdings in Bouygues and Total Fina (France), which
we received upon acquisition of Elf Acquitaine.
We are finding better value in drug companies,
whose strong long-term growth prospects have been
neglected over the past year. We added to our
position in Pharmacia (Sweden), the merger of
Pharmacia & Upjohn (which we already owned), and
Monsanto. We found that Japanese drug stocks were
even more inexpensive than other drug companies, so
we bought shares in two:
Daiichi Pharmaceutical and Tanabe Seiyaku. When
investors are once again
5
<PAGE>
Prudential International Value Fund
Semiannual Report April 30, 2000
comfortable with the full range of Japanese stocks,
we expect to benefit as these companies become
valued more like their peers in other countries.
Looking Ahead
As the Asian recovery accelerates, we are looking
for investment opportunities in stronger non-
Japanese economies--Singapore, Hong Kong, and South
Korea. There are a number of very inexpensive
stocks in these markets, and we are looking for those with the best
prospects for profit growth and share price
appreciation.
Prudential International Value Fund Management Team
6
<PAGE>
Prudential International Value Fund
Financial
Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Portfolio of Investments as of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C> <C>
-----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 88.0%
Common Stocks
-------------------------------------------------------------------------------------
Argentina 0.8%
170,000 Telecom Argentina SA (ADR) $ 4,749,375
-------------------------------------------------------------------------------------
Australia 4.0%
870,000 National Australia Bank Ltd. 11,925,677
3,748,300 Pioneer International Ltd. 10,512,630
--------------
22,438,307
-------------------------------------------------------------------------------------
Canada 4.3%
335,000 Alcan Aluminum Ltd. 10,902,768
600,000 Bank of Nova Scotia 13,673,194
--------------
24,575,962
-------------------------------------------------------------------------------------
Finland 1.8%
983,200 Stora Enso Oyj, Series R 10,147,170
-------------------------------------------------------------------------------------
France 8.6%
11,100 Bouygues SA 7,085,448
86,000 Christian Dior SA 20,449,249
53,900 Peugeot SA 11,154,965
66,870 Total Fina SA, Series B 10,148,337
--------------
48,837,999
-------------------------------------------------------------------------------------
Germany 4.2%
190,800 Adidas-Salomon AG 12,222,684
619,800 Continental AG 11,350,585
--------------
23,573,269
-------------------------------------------------------------------------------------
Italy 6.8%
209,400 BIPop-Carire SpA 19,040,743
460,000 Banca Popolare Di Bergamo Credito Vaesino SpA 8,327,915
5,949,700 Benetton Group SpA 10,955,377
--------------
38,324,035
-------------------------------------------------------------------------------------
Japan 20.8%
840,000 Daiichi Pharmaceutical Co., Ltd. 14,447,098
1,236,500 Hitachi Ltd. 14,765,204
530,000 Matsushita Electric Industrial Co., Ltd. 14,031,288
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
Japan Cont'd.
1,438,100 Mitsui Fudosan Co., Ltd. $ 14,616,623
171,400 Oriental Land Co., Ltd. 18,198,260
97,600 Sony Corp. 11,290,244
2,185,800 Sumitomo Marine & Fire Insurance Co., Ltd. 11,532,963
1,407,600 Tanabe Seiyaku Co., Ltd. 8,677,790
2,468,600 Yasuda Fire & Marine Insurance Co., Ltd. 9,985,913
--------------
117,545,383
-------------------------------------------------------------------------------------
Netherlands 4.6%
224,200 Akzo Nobel N.V. 9,180,044
230,400 ING Groep N.V. 12,574,354
265,000 Koninklijke Luchtvaart Maatschappij N.V. 4,457,844
--------------
26,212,242
-------------------------------------------------------------------------------------
New Zealand 0.7%
1,900,000 Carter Holt Harvey Ltd. 1,605,063
700,000 Fisher & Paykel Industries Ltd. 2,073,085
--------------
3,678,148
-------------------------------------------------------------------------------------
Singapore 0.5%
400,200 United Overseas Bank Ltd. 2,790,239
-------------------------------------------------------------------------------------
South Korea 2.8%
425,000 Korea Electric Power Corp. 12,446,497
40,580 Pohang Iron & Steel Co., Ltd. 3,237,478
--------------
15,683,975
-------------------------------------------------------------------------------------
Spain 3.8%
615,400 Banco Bilbao Vizcaya SA 8,393,749
141,200 Banco de Andalucia SA 3,824,832
700,000 Iberdrola SA 8,981,157
--------------
21,199,738
-------------------------------------------------------------------------------------
Sweden 6.2%
660,000 Electrolux AB, Series B 11,182,562
205,394 Pharmacia & Upjohn, Inc. 10,313,804
390,300 SKF AB, Series B 8,380,782
360,000 Svedala Industri AB 4,911,873
--------------
34,789,021
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
-----------------------------------------------------------------------------------------
<C> <S> <C> <C>
Switzerland 8.5%
6,000 Novartis AG $ 8,391,292
10,700 The Swatch Group AG 11,479,593
17,500 Sulzer AG 11,216,255
35,000 UBS AG 8,584,906
33,000 Valora Holding AG 8,582,874
--------------
48,254,920
-------------------------------------------------------------------------------------
United Kingdom 9.6%
2,234,100 British Airways PLC 11,667,842
3,200,000 Corus Group PLC 4,302,439
519,500 Rio Tinto PLC 8,074,845
1,600,000 Royal & Sun Alliance Insurance Group PLC 8,953,052
677,000 Royal Bank of Scotland PLC 10,543,991
3,200,000 Tesco PLC 10,868,011
--------------
54,410,180
--------------
Total common stocks
(cost US$389,448,730) 497,209,963
--------------
SHORT-TERM INVESTMENT 11.4%
Principal
Amount
(000)
-----------------------------------------------------------------------------------------
Repurchase Agreement
$ 64,514 Joint Repurchase Agreement Account,
5.71%, 5/1/00 (cost US$64,514,000; Note 5) 64,514,000
--------------
Total Investments 99.4%
(cost US$453,962,730; Note 4) 561,723,963
Other assets in excess of liabilities--0.6% 3,274,722
--------------
Net Assets 100% $ 564,998,685
--------------
--------------
</TABLE>
--------------------------------------------------------------------------------
ADR--American Depository Receipt.
10 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
The industry classification of portfolio holdings and other assets in excess of
liabilities shown as a percentage of net assets as of April 30, 2000 was as
follows:
<TABLE>
<S> <C>
Commercial Banking........................................................ 14.6%
Appliances & Household Durables........................................... 9.6
Health & Personal Care.................................................... 6.7
Recreation & Other Consumer Goods......................................... 6.3
Real Estate............................................................... 5.5
Insurance................................................................. 5.4
Auto Manufacturing........................................................ 4.1
Metals - Steel............................................................ 3.7
Electrical & Gas Utilities................................................ 3.6
Merchandising............................................................. 3.4
Machinery & Engineering................................................... 2.9
Transportation - Airlines................................................. 2.5
Electrical & Electronics.................................................. 2.5
Textiles & Apparel........................................................ 2.1
Finance - Non-Banking..................................................... 2.1
Energy Sources............................................................ 2.1
Construction & Housing.................................................... 2.0
Metals - Nonferrous....................................................... 2.0
Forestry & Paper.......................................................... 1.8
Consumer Durable Goods.................................................... 1.8
Building Materials & Components........................................... 1.7
Chemicals................................................................. 1.6
Repurchase Agreements..................................................... 11.4
-----
99.4%
Other assets in excess of liabilities..................................... 0.6
-----
100.0%
-----
-----
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
ASSETS
Investments excluding repurchase agreement at value (cost
US$389,448,730) $ 497,209,963
Repurchase agreement (cost US$64,514,000) 64,514,000
Foreign currency, at value (cost US$466,102) 458,444
Receivable for investments sold 7,168,287
Dividends and interest receivable 3,464,085
Receivable for Series shares sold 1,966,562
Deferred expenses and other assets 4,494
--------------
Total assets 574,785,835
--------------
LIABILITIES
Bank overdraft 367,610
Payable for Series shares reacquired 5,454,142
Payable for Investments purchased 2,870,964
Management fee payable 465,528
Accrued expenses 353,050
Withholding taxes payable 165,016
Distribution fee payable 110,840
--------------
Total liabilities 9,787,150
--------------
NET ASSETS $ 564,998,685
--------------
--------------
Net assets were comprised of:
Common stock, at par $ 255,594
Paid-in capital in excess of par 426,015,951
--------------
426,271,545
Distributions in excess of net investment income (3,499,770)
Accumulated net realized gain on investments 34,710,003
Net unrealized appreciation on investments and foreign
currencies 107,516,907
--------------
Net assets, April 30, 2000 $ 564,998,685
--------------
--------------
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Statement of Assets and Liabilities (Unaudited) Cont'd.
<TABLE>
<CAPTION>
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share
($66,149,065 / 2,995,417 shares of common stock issued and
outstanding) $22.08
Maximum sales charge (5% of offering price) 1.16
--------------
Maximum offering price to public $23.24
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($97,920,897 / 4,454,511 shares of common stock issued and
outstanding) $21.98
--------------
--------------
Class C:
Net asset value redemption price per share
($17,602,403 / 800,738 shares of common stock issued and
outstanding) $21.98
Sales charge (1% of offering price) .22
--------------
Offering price to public $22.20
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($383,326,320 / 17,308,699 shares of common stock issued
and outstanding) $22.15
--------------
--------------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Dividends (net of foreign withholding taxes of $647,307) $ 4,276,969
Interest 1,362,076
--------------
Total income 5,639,045
--------------
Expenses
Management fee 2,792,687
Distribution fee--Class A 81,661
Distribution fee--Class B 516,110
Distribution fee--Class C 92,121
Transfer agent's fees and expenses 520,000
Custodian's fees and expenses 161,000
Reports to shareholders 50,000
Registration fees 40,000
Legal fees and expenses 22,000
Audit fees and expenses 17,000
Directors' fees and expenses 15,000
Miscellaneous 9,933
--------------
Total expenses 4,317,512
--------------
Net investment income 1,321,533
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 34,812,411
Foreign currency transactions (4,549,417)
--------------
30,262,994
--------------
Net change in unrealized appreciation on:
Investments (7,653,691)
Foreign currencies (104,628)
--------------
(7,758,319)
--------------
Net gain on investments and foreign currencies 22,504,675
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 23,826,208
--------------
--------------
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months Year Ended
Ended October 31,
April 30, 2000 1999
<S> <C> <C> <C>
-----------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment income $ 1,321,533 $ 6,286,376
Net realized gain on investment and
foreign currency transactions 30,262,994 24,041,413
Net change in unrealized appreciation of
investments and foreign currencies (7,758,319) 70,216,724
----------------- --------------
Net increase in net assets resulting from
operations 23,826,208 100,544,513
----------------- --------------
Dividends and distributions (Note 1)
Dividends from net investment income
Class A (449,461) (384,802)
Class B (45,069) (50,664)
Class C (7,949) (7,740)
Class Z (3,331,846) (2,927,028)
----------------- --------------
(3,834,325) (3,370,234)
----------------- --------------
Distributions from net realized gains
Class A (2,879,777) --
Class B (4,822,392) --
Class C (850,578) --
Class Z (16,278,883) --
----------------- --------------
(24,831,630) --
----------------- --------------
Series share transactions (net of
conversions) (Note 6)
Net proceeds from shares sold 741,360,970 1,038,865,029
Net asset value of shares issued in
reinvestment of dividends and
distributions 28,429,080 3,360,460
Cost of shares reacquired (733,400,446) (1,015,931,671)
----------------- --------------
Net increase in net assets from Series
share transactions 36,389,604 26,293,818
----------------- --------------
Total increase 31,549,857 123,468,097
NET ASSETS
Beginning of period 533,448,828 409,980,731
----------------- --------------
End of period(a) $ 564,998,685 $ 533,448,828
----------------- --------------
----------------- --------------
------------------------------
(a) Includes undistributed net investment
income of $ -- $ 3,562,439
----------------- --------------
----------------- --------------
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited)
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 three series: Prudential
International Value Fund, formerly known as the International Stock Series (the
'Series'), Prudential Global Growth Fund, formerly known as the Global Series
and Prudential Jennison International Growth Fund. The Series commenced
investment operations in November 1992. The investment objective of the Series
is to achieve long-term growth of capital. Income is a secondary objective. The
Series seeks to achieve its objective primarily through investment in common
stock and preferred stock of foreign companies of all sizes.
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 sale price of such exchange system on the day of valuation or, if there
was no sale on such day, at 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 subadviser.
Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost.
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 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
16
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
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 the end of the period. 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 or 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.
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; interest income is
recorded on the accrual basis. Expenses are recorded on the accrual basis which
may require the use of certain estimates by management.
Net investment income other than distribution fees, and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
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 net income to
shareholders. Therefore, no federal
17
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
income tax provision is required.
Withholding taxes on foreign dividends have been provided for in
accordance with the Fund's understanding of the applicable country's tax rules
and rates.
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.
Reclassification of Capital Accounts: The Series 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 Gains, and
Return of Capital Distributions by Investment Companies. The effect for the
Series of applying this statement was to increase distributions in excess of net
investment income and increase accumulated net realized gain on investments by
$4,549,417 for realized foreign currency losses during the six months ended
April 30, 2000. 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 Mercator Asset
Management, L.P. ('Mercator'), a limited partnership where The Prudential Asset
Management Company, Inc. ('PAMCI') is a limited partner. Mercator furnishes
investment advisory services in connection with the management of the Series.
PIFM pays for the services of the subadviser, the cost of 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 to PIFM is computed daily and payable monthly at
an annual rate of 1% of the average daily net assets of the Series. PIFM pays
Mercator at an annual rate of .75 of 1% of the Series average daily net assets
up to and including $50 million, .60 of 1% of the Series' average daily net
assets in excess of $50 million up to and including $300 million and .45 of 1%
of the Series' average daily net assets in excess of $300 million.
The Fund has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS') which acts as the distributor of the Class A,
Class B, Class C
18
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
and Class Z shares of the Fund. The Fund compensates 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 of the Class Z
shares of the Fund.
Pursuant to the Class A, B and C Plans, the Series compensates PIMS for
distribution-related activities at an annual rate of up to .30 of 1%, 1% and 1%
of the average daily net assets of the Class A, B, and C shares, respectively.
Such expenses under the Plans were .25 of 1%, 1% and 1% of the average daily net
assets of the Class A, B and C shares respectively, for the six months ended
April 30, 2000.
PIMS has advised the Series that they received approximately $50,300 and
$16,200 in front-end sales charges resulting from sales of Class A and Class C
shares, respectively, during the six months ended April 30, 2000. 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 has advised the Series that for the six months ended April 30, 2000,
they received approximately $170,000 and $3,000 in contingent deferred sales
charges imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PIMS, PIFM and PAMCI are wholly owned subsidiaries of The Prudential
Insurance Company of America.
The Series, 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.
Interest on any such borrowings 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 of .080 of 1% of the unused portion
of the credit facility. The commitment fee is accrued and paid quarterly on a
pro rata basis by the Funds. The expiration date of the SCA is March 9, 2001.
Prior to March 9, 2000, the commitment fee was .065 of 1% of the unused portion
of the credit facility. The Fund did not borrow any amounts pursuant to the SCA
during the six months ended April 30, 2000.
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. During the six months ended April 30, 2000,
the Series incurred fees of approximately $504,400 for the services of PMFS. As
of April 30, 2000 approximately $81,200 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.
19
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 4. Portfolio Securities
Purchases and sales of portfolio securities of the Series, excluding short-term
investments, for the six months ended April 30, 2000 were $84,302,190 and
$81,358,945, respectively.
The federal income tax basis of the Series' investments as of April 30,
2000 was substantially the same as for financial reporting purposes and
accordingly, net unrealized appreciation on investments for federal income tax
purposes was $107,761,233 (gross unrealized appreciation--$138,924,873, gross
unrealized depreciation--$31,163,640).
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, 2000, the Series
had a 7.6% undivided interest in the repurchase agreements in the joint account.
The undivided interest for the Series represents $64,514,000 in the principal
amount. As of such date, each repurchase agreement in the joint account and the
collateral therefore were as follows:
ABN AMRO Incorporated, 5.72%, in the principal amount of $160,000,000,
repurchase price $160,076,267, due 5/1/00. The value of the collateral including
accrued interest was $163,200,995.
Bear, Stearns & Co. Inc., 5.72%, in the principal amount of $160,000,000,
repurchase price $160,076,267, due 5/1/00. The value of the collateral including
accrued interest was $166,727,544.
Credit Suisse First Boston Corp., 5.75%, in the principal amount of
$160,000,000, repurchase price $160,076,667, due 5/1/00. The value of the
collateral including accrued interest was $165,506,481.
Morgan (J.P.) Securities, Inc., 5.72%, in the principal amount of
$210,000,000, repurchase price $210,100,100, due 5/1/00. The value of the
collateral including accrued interest was $214,200,036.
Salomon Smith Barney, Inc., 5.65%, in the principal amount of
$162,577,000, repurchase price $162,653,547, due 5/1/00. The value of the
collateral including accrued interest was $165,893,849.
20
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 6. 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. Class B shares 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 qualified 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.
As of April 30, 2000, 43 of the outstanding shares were owned by The
Prudential Insurance Company of America.
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
---------------------------------------------------------- ----------- -------------
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 4,413,908 $ 99,272,782
Shares issued in reinvestment of dividends and
distributions 146,975 3,267,270
Shares reacquired (4,357,218) (98,429,379)
----------- -------------
Net increase in shares outstanding before conversion 203,665 4,110,673
Shares issued upon conversion from Class B 68,870 1,506,781
----------- -------------
Net increase in shares outstanding 272,535 $ 5,617,454
----------- -------------
----------- -------------
Year ended October 31, 1999:
Shares sold 5,231,884 $ 108,850,967
Shares issued in reinvestment of dividends and
distributions 20,402 378,859
Shares reacquired (5,239,651) (108,963,225)
----------- -------------
Net increase in shares outstanding before conversion 12,635 266,601
Shares issued upon conversion from Class B 132,844 2,755,379
----------- -------------
Net increase in shares outstanding 145,479 $ 3,021,980
----------- -------------
----------- -------------
</TABLE>
21
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class B Shares Amount
---------------------------------------------------------- ----------- -------------
Six months ended April 30, 2000:
<S> <C> <C>
Shares sold 674,116 $ 15,263,367
Shares issued in reinvestment of dividends and
distributions 213,209 4,728,969
Shares reacquired (909,616) (20,611,182)
----------- -------------
Net decrease in shares outstanding before conversion (22,291) (618,846)
Shares issued upon conversion from Class A (69,094) (1,506,781)
----------- -------------
Net decrease in shares outstanding (91,385) $ (2,125,627)
----------- -------------
----------- -------------
Year ended October 31, 1999:
Shares sold 1,638,622 $ 33,422,346
Shares issued in reinvestment of dividends and
distributions 2,633 48,820
Shares reacquired (2,127,610) (43,374,506)
----------- -------------
Net decrease in shares outstanding before conversion (486,355) (9,903,340)
Shares reacquired upon conversion into Class A (133,715) (2,755,379)
----------- -------------
Net decrease in shares outstanding (620,070) $ (12,658,719)
----------- -------------
----------- -------------
<CAPTION>
Class C
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 423,728 $ 9,507,654
Shares issued in reinvestment of dividends and
distributions 37,783 838,028
Shares reacquired (474,083) (10,680,137)
----------- -------------
Net decrease in shares outstanding (12,572) $ (334,455)
----------- -------------
----------- -------------
Year ended October 31, 1999:
Shares sold 1,059,135 $ 21,509,606
Shares issued in reinvestment of dividends and
distributions 405 7,502
Shares reacquired (1,031,357) (20,905,913)
----------- -------------
Net increase in shares outstanding 28,183 $ 611,195
----------- -------------
----------- -------------
<CAPTION>
Class Z
----------------------------------------------------------
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 27,206,934 $ 617,317,167
Shares issued in reinvestment of dividends and
distributions 880,270 19,594,813
Shares reacquired (26,495,646) (603,679,748)
----------- -------------
Net increase in shares outstanding 1,591,558 $ 33,232,232
----------- -------------
----------- -------------
Year ended October 31, 1999:
Shares sold 42,330,958 $ 875,082,110
Shares issued in reinvestment of dividends and
distributions 157,357 2,925,279
Shares reacquired (40,619,778) (842,688,027)
----------- -------------
Net increase in shares outstanding 1,868,537 $ 35,319,362
----------- -------------
----------- -------------
</TABLE>
22
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial
Highlights
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Class A
----------------
Six Months Ended
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 22.42
--------
Income from investment operations:
Net investment income gain (loss) .05
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .85
--------
Total from investment operations .90
--------
Less distributions:
Dividends from net investment income (.17)
Distributions from net realized capital (loss) (1.07)
--------
Total distributions (1.24)
--------
Net asset value, end of period $ 22.08
--------
--------
TOTAL RETURN(a) 3.96%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 66,149
Average net assets (000) $ 65,688
Ratios to average net assets:
Expenses, including distribution fees 1.53%(b)
Expenses, excluding distribution fees 1.28%(b)
Net investment income gain (loss) .48%(b)
Portfolio turnover rate 16%
</TABLE>
------------------------------
(a) Total return does not consider the effect of sales load. 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 return for periods of less than a full year are not
annualized.
(b) Annualized.
(c) Commencement of offering of Class A shares.
(d) Figures are actual and are not rounded to the nearest thousand.
(e) Calculated based upon weighted average shares outstanding during the year.
24 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class A
----------------------------------------------------------------------------------------------------------------
Year Ended October 31, October 1, 1996 September 23, 1996(c)
---------------------------------------------------------- Through Through
1999 1998 1997(e) October 31, 1996 September 30, 1996
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 18.33 $ 18.24 $ 16.59 $16.48 $16.54
-------- -------- -------- ------- -------
.27 .27 .24 (.01) --
3.97 .40 1.85 .12 (.06)
-------- -------- -------- ------- -------
4.24 .67 2.09 .11 (.06)
-------- -------- -------- ------- -------
(.15) (.18) (.24) -- --
-- (.40) (.20) -- --
-------- -------- -------- ------- -------
(.15) (.58) (.44) -- --
-------- -------- -------- ------- -------
$ 22.42 $ 18.33 $ 18.24 $16.59 $16.48
-------- -------- -------- ------- -------
-------- -------- -------- ------- -------
23.30% 3.85% 12.85% .67% (.36)%
$ 61,036 $ 47,237 $ 36,184 $5,169(d) $ 199(d)
$ 52,732 $ 44,708 $ 18,779 $2,793(d) $ 199(d)
1.61% 1.62% 1.75% 2.05%(b) 2.46%(b)
1.36% 1.37% 1.50% 1.80%(b) 2.21%(b)
1.35% 1.28% 1.40% (1.03)%(b) .75%(b)
21% 15% 9% 4% 15%
</TABLE>
See Notes to Financial Statements 25
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class B
----------------
Six Months Ended
April 31, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 22.23
----------------
Income from investment operations:
Net investment income gain (loss) (.03)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .86
----------------
Total from investment operations .83
----------------
Less distributions:
Dividends from net investment income (.01)
Distributions from net realized capital (loss) (1.07)
----------------
Total distributions (1.08)
----------------
Net asset value, end of period $ 21.98
----------------
----------------
TOTAL RETURN(a) 3.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 97,921
Average net assets (000) $103,789
Ratios to average net assets:
Expenses, including distribution fees 2.28%(b)
Expenses, excluding distribution fees 1.28%(b)
Net investment income gain (loss) (.31)%(b)
Portfolio turnover rate 16%
</TABLE>
------------------------------
(a) Total return does not consider the effect of sales load. 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 return for periods of less than a full year are not
annualized.
(b) Annualized.
(c) Commencement of offering of Class B shares.
(d) Figures are actual and are not rounded to the nearest thousand.
(e) Calculated based upon weighted average shares outstanding during the year.
26 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class B
----------------------------------------------------------------------------------------------------------------
Year Ended October 31, October 1, 1996 September 23, 1996(c)
---------------------------------------------------------- Through Through
1999 1998 1997(e) October 31, 1996 September 30, 1996
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 18.18 $ 18.13 $ 16.57 $16.47 $16.54
---------------- -------- -------- ------- -------
.12 .10 .12 (.02) --
3.94 .43 1.84 .12 (.07)
---------------- -------- -------- ------- -------
4.06 .53 1.96 .10 (.07)
---------------- -------- -------- ------- -------
(.01) (.08) (.20) -- --
-- (.40) (.20) -- --
---------------- -------- -------- ------- -------
(.01) (.48) (.40) -- --
---------------- -------- -------- ------- -------
$ 22.23 $ 18.18 $ 18.13 $16.57 $16.47
---------------- -------- -------- ------- -------
---------------- -------- -------- ------- -------
22.34% 3.05% 12.04% .61% (.42)%
$101,043 $ 93,896 $ 87,155 $1,922(d) $ 199(d)
$ 98,842 $ 98,444 $ 47,584 $ 313(d) $ 199(d)
2.36% 2.37% 2.50% 2.80%(b) 3.21%(b)
1.36% 1.37% 1.50% 1.80%(b) 2.21%(b)
.59% .53% .65% (1.78)%(b) 0%(b)
21% 15% 9% 4% 15%
</TABLE>
See Notes to Financial Statements 27
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C
----------------
Six Months Ended
April 31, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 22.23
--------
Income from investment operations:
Net investment income gain (loss) (.03)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .86
--------
Total from investment operations .83
--------
Less distributions:
Dividends from net investment income (.01)
Distributions from net realized (loss) (1.07)
--------
Total distributions (1.08)
--------
Net asset value, end of period $ 21.98
--------
--------
TOTAL RETURN(a) 3.69%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 17,602
Average net assets (000) $ 18,525
Ratios to average net assets:
Expenses, including distribution fees 2.28%(b)
Expenses, excluding distribution fees 1.28%(b)
Net investment income gain (loss) (.30)%(b)
Portfolio turnover rate 16%
</TABLE>
------------------------------
(a) Total return does not consider the effect of sales load. 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 return for periods of less than a full year are not
annualized.
(b) Annualized.
(c) Commencement of offering of Class C shares.
(d) Figures are actual and are not rounded to the nearest thousand.
(e) Calculated based upon weighted average shares outstanding during the year.
28 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C
----------------------------------------------------------------------------------------------------------------
Year Ended October 31, October 1, 1996 September 23, 1996(c)
---------------------------------------------------------- Through Through
1999 1998 1997(e) October 31, 1996 September 30, 1996
----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 18.18 $ 18.13 $ 16.57 $16.47 $16.54
-------- -------- -------- ------- -------
.11 .10 .12 (.02) --
3.95 .43 1.84 .12 (.07)
-------- -------- -------- ------- -------
4.06 .53 1.96 .10 (.07)
-------- -------- -------- ------- -------
(.01) (.08) (.20) -- --
-- (.40) (.20) -- --
-------- -------- -------- ------- -------
(.01) (.48) (.40) -- --
-------- -------- -------- ------- -------
$ 22.23 $ 18.18 $ 18.13 $16.57 $16.47
-------- -------- -------- ------- -------
-------- -------- -------- ------- -------
22.34% 3.05% 12.04% .61% (.42)%
$ 18,078 $ 14,271 $ 12,354 $ 200(d) $ 199(d)
$ 15,815 $ 14,345 $ 7,473 $ 202(d) $ 199(d)
2.36% 2.37% 2.50% 2.80%(b) 3.21%(b)
1.36% 1.37% 1.50% 1.80%(b) 2.21%(b)
.59% .53% .65% (1.78)%(b) 0%(b)
21% 15% 9% 4% 15%
</TABLE>
See Notes to Financial Statements 29
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class Z
--------------------------------------------------------------------------------------
Six Months
Ended Year Ended
April 30, October 31,
2000 1999
--------------------------------------------------------------------------------------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 22.48 $ 18.38
---------------- -----------
Income from investment operations:
Net investment income gain (loss) .07 .31
Net realized and unrealized gain on
investment and foreign currency
transactions .89 3.99
---------------- -----------
Total from investment operations .96 4.30
---------------- -----------
Less distributions:
Dividends from net investment income (.22) (.20)
Distributions from net realized (loss) (1.07) --
---------------- -----------
Total distributions (1.29) (.20)
---------------- -----------
Net asset value, end of period $ 22.15 $ 22.48
---------------- -----------
---------------- -----------
TOTAL RETURN(a) 4.24% 23.62%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $383,326 $ 353,292
Average net assets (000) $382,976 $ 308,917
Ratios to average net assets:
Expenses, including distribution fees 1.28%(b) 1.36%
Expenses, excluding distribution fees 1.28%(b) 1.36%
Net investment income gain (loss) .72%(b) 1.59%
Portfolio turnover rate 16% 21%
</TABLE>
------------------------------
(a) 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 return for periods of less than a full
year are not annualized. Total return includes the effect of expense
subsidies/recoveries, as applicable.
(b) Annualized.
(c) Net of expense subsidy/recovery.
(d) Calculated based upon weighted average shares outstanding during the year.
30 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class Z
---------------------------------------------------------------------------
Year Ended October October 1, 1996 Year Ended September
31, Through 30,
--------------------- October 31, ---------------------
1998 1987(a) 1996 1996 1995
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 18.28 $ 16.59 $ 16.48 $ 15.25 $ 14.84
-------- -------- ----------------- -------- --------
.30 .31 (.01) .22 .18(c)
.41 1.82 .12 1.20 .66
-------- -------- ----------------- -------- --------
.71 2.13 .11 1.42 .84
-------- -------- ----------------- -------- --------
(.21) (.24) -- (.19) (.10)
(.40) (.20) -- -- (.33)
-------- -------- ----------------- -------- --------
(.61) (.44) -- (.19) (.43)
-------- -------- ----------------- -------- --------
$ 18.38 $ 18.28 $ 16.59 $ 16.48 $ 15.25
-------- -------- ----------------- -------- --------
-------- -------- ----------------- -------- --------
4.08% 13.13% .67% 9.44% 5.95%
$254,577 $237,976 $ 190,428 $188,386 $136,685
$258,322 $219,419 $ 191,228 $161,356 $118,927
1.37% 1.50% 1.80%(b) 1.61%(c) 1.60%(c)
1.37% 1.50% 1.80%(b) 1.61%(c) 1.60%(c)
1.53% 1.65% (.78)%(b) 1.58%(c) 1.58%(c)
15% 9% 4% 15% 20%
</TABLE>
See Notes to Financial Statements 31
<PAGE>
<PAGE>
Prudential International Value Fund
Prudential Mutual Fund Family
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<PAGE>
Prudential International Value Fund
Getting the Most from Your Prudential Mutual Fund
How many times have you read these reports--or other
financial materials--and stumbled across a word that
you don't understand?
Many shareholders have run into the same problem.
We'd like to help. So we'll use this space from
time to time to explain some of the words you might
have read, but not understood. And if you have a
favorite word that no one can explain to your
satisfaction, please write to us.
Basis Point: 1/100th of 1%. For example, one-half
of one percent is 50 basis points.
Collateralized Mortgage Obligations (CMOs):
Mortgage-backed bonds that separate mortgage pools
into different maturity classes called tranches.
These instruments are sensitive to changes in
interest rates and homeowner refinancing activity.
They are subject to prepayment and maturity
extension risk.
Derivatives: Securities that derive their value
from other securities. The rate of return of these
financial instruments rises and falls--sometimes
very suddenly--in response to changes in some
specific interest rate, currency, stock, or other
variable.
Discount Rate: The interest rate charged by the
Federal Reserve on loans to member banks.
Federal Funds Rate: The interest rate charged by
one bank to another on overnight loans.
Futures Contract: An agreement to purchase or sell
a specific amount of
a commodity or financial instrument at a set price
at a specified date in the future.
<PAGE>
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Leverage: The use of borrowed assets to enhance
return. The expectation is that the interest rate
charged on borrowed funds will be lower than the
return on the investment. While leverage can
increase profits, it can also magnify losses.
Liquidity: The ease with which a financial
instrument (or product) can be bought or sold
(converted into cash) in the financial markets.
Price/Earnings Ratio: The price of a share of stock
divided by the earnings per share for a 12-month
period.
Option: An agreement to purchase or sell something,
such as shares of stock, by a certain time for a
specified price. An option need not be exercised.
Spread: The difference between two values; often
used to describe the
difference between "bid" and "asked" prices of a
security, or between the yields of two similar
maturity bonds.
Yankee Bond: A bond sold by a foreign company or
government on the U.S. market and denominated in
U.S. dollars.
<PAGE>
Prudential International Value Fund
Getting the Most from Your Prudential Mutual Fund
When you invest through Prudential Mutual Funds,
you receive financial advice from a Prudential
Securities Financial Advisor or 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. 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 available
mutual funds to find the ones that fit your
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
should remind you that you're investing for the
long haul.
<PAGE>
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For More Information
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Trustees
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
David R. Odenath, Jr.
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
David R. Odenath, Jr., Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
William V. Healey, Assistant Secretary
Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
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2400 East Commercial Boulevard, Suite 810
Fort Lauderdale, FL 33308
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Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
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North Quincy, MA 02171
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194 Wood Avenue South
Iselin, NJ 08830
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PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
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125 Broad Street
New York, NY 10004
Fund Symbols
NASDAQ CUSIP
Class A PISAX 743969503
Class B PISBX 743969602
Class C PCISX 743969701
Class Z PISZX 743969800
The views expressed in this report and information
about the Fund's portfolio holdings are for the
period covered by this report and
are subject to change thereafter.
The accompanying financial statements as
of April 30, 2000, were not audited and,
accordingly, no opinion is expressed on them.
<PAGE>
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(LOGO)
Prudential Mutual Funds
Gateway Center Three
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MF115E4 743969503 743969602 743969701 743969800
(LOGO) Printed on Recycled Paper
<PAGE>
SEMIANNUAL REPORT APRIL 30, 2000
Prudential
Jennison International Growth Fund
Fund Type Global/International Stock Funds
Objective Long-term growth of capital
(GRAPHIC)
This report is not authorized for
distribution to prospective investors unless preceded or
accompanied by a current prospectus.
The views expressed in this report and information
about the Fund's portfolio holdings are for the
period covered by this report and are subject to
change thereafter.
(LOGO)
<PAGE>
Build on the Rock
Investment Goals and Style
The Prudential Jennison International Growth Fund
(the Series) seeks long-term growth of capital by
investing primarily in stocks of growth companies
located outside the United States. We generally
invest in about 60 securities of companies whose
shares appear attractively valued both absolutely
and when compared to the overall market. We look
for large- and mid-cap companies that have above-
average earnings growth and above-average growth
potential over the long term, as well as strong
financial and operational characteristics. Special
risks are associated with foreign investments,
including political, economic and social risks, and
potential illiquidity. There can be no assurance
that the Series will achieve its investment
objective.
Ten Largest Holdings
Expressed as a percentage of
net assets as of 4/30/00
4.5% DBS Group Holdings Ltd.
Banks & Financial Services
4.1 Pearson PLC
Media & Entertainment
4.0 Telefonaktiebolaget LM Ericsson AB
Telecommunications Equipment
4.0 Sonera Oyj
Telecommunications Services
4.0 Granada Group PLC
Leisure & Tourism
3.9 VNU N.V.
Media & Entertainment
3.8 Vodafone AirTouch PLC
Telecommunications Services
3.7 Royal KPN N.V.
Telecommunications Services
3.5 Nokia Oyj
Telecommunications Equipment
3.3 Infineon Technologies AG
Semiconductors
Portfolio Composition
Sectors expressed as a percentage of
net assets as of 4/30/00
33.4% Technology
18.2 Communication Services
15.9 Consumer Cyclicals
9.5 Financial Services
6.1 Healthcare
3.2 Capital Goods
2.8 Basic Industries
2.4 Intermediate Goods & Services
1.1 Utilities
1.0 Consumer Staples
6.4 Cash & Equivalents
Geographic Concentration
Expressed as a percentage of
net assets as of 4/30/00
21.8% United Kingdom
15.8 Netherlands
8.3 France
8.2 Germany
7.5 Finland
7.0 Singapore
5.0 Sweden
4.7 Hong Kong
21.7 Other
<PAGE>
www.prudential.com (800) 225-1852
Performance at a Glance
Cumulative Total Returns1 As of 4/30/00
Since Inception2 Since Inception2
(Without sales charge) (With sales charge)
Class A -7.90% -12.51%
Class B -8.00 -13.00
Class C -8.00 -9.92
Class Z -7.80 -7.80
Lipper International
Fund Avg.3 -5.60 N/A
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. Since the
Series has been in existence less than one year, no
average annual total returns are presented. 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 Z shares are not subject to a
sales charge or distribution and service (12b-1)
fees.
2 Inception date: Class A, B, C, and Z, 3/1/2000.
3 Lipper average returns are for all funds in each
share class for the since inception period in the
International Fund category. The Lipper average is
unmanaged. Funds in the international category
invest their assets in securities with primary
trading markets outside the United States.
1
<PAGE>
(LOGO) June 15, 2000
Dear Shareholder,
The Prudential Jennison International Growth Fund
opened in the midst of a global downturn of stock
prices. Prices were falling in every major market,
and falling most in the technology, media, and
telecommunications (TMT) groups that the Series
currently favors. The Series' Class A shares
declined 7.90% between its inception and April 30,
2000--a 12.51% decline to those paying the maximum
one-time Class A share sales charge during the
period--underperforming the 5.60% drop of the Lipper
International Fund Average.
Stock markets were correcting after a very steep
price rise that also had been focused in TMT. We
think investors like the long-term earnings growth
potential of TMT stocks, but are concerned about
share prices and rising interest rates. However, as
noted in the Investment Adviser's Report, our
management team is enthusiastic about the long-term
prospects for these growth industries. Therefore,
our plan is for the Series to remain fully
invested, except for a prudent cash balance.
Markets can move very rapidly, and small errors in
market timing can cause an investor to miss the
greater part of a rally. We think the best strategy
is to invest systematically in a diversified
portfolio of good mutual funds, and to have a
suitable time horizon for your stock investments.
Investors who already have a portfolio of U.S.
stocks may find the Prudential Jennison
International Growth Fund a good diversifier.
Yours sincerely,
John R. Strangfeld, President
Prudential Jennison International Growth Fund
2
<PAGE>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2000
Investment Adviser's Report
Although the global decline in share prices since
the inception of the Prudential Jennison
International Growth Fund might lead one to think
otherwise, this is a promising time for
international stock investing. The U.S. economy
remains strong, and is absorbing a record level of
imports from the rest of the world. Whereas the
United States has just been through an
extraordinary decade of economic growth and share
price appreciation, other countries are just
starting along the path of corporate restructuring
and large improvements in productivity.
The Prudential Jennison International Growth Fund
usually expects to be invested in 10 to 15
countries. Its 10 largest holdings represented
investment in seven different countries at the end
of the reporting period.
Europe is in the midst of a large-scale economic
restructuring, aided by the adoption of a common
currency (the euro) and the reduction of many other
internal trade barriers. Companies are merging and
acquiring others in order to build Continent-wide,
or global, presences. The GDP growth rates in
countries such as Belgium, the Netherlands, and
Spain already are high, but not at the
unsustainable levels the United States has touched.
Other more sluggish economies--such as Germany,
France, and Italy--are accelerating their growth.
The undervalued euro is a stimulant to further
growth, and should the undervaluation correct,
returns on euro-denominated shares would be
enhanced for U.S.-based investors. Nine of our 10
largest holdings at period end, comprising 34.3% of
our net assets, were in Europe.
In Asia, the financial crisis of 1997-1998 provoked
some needed reforms. Although we find the earnings
growth of Japanese firms unattractive compared with
opportunities elsewhere and their share prices too
high given the earnings prospects, any upturn in
economic growth in Japan should have a positive
impact on its imports from Southeast Asia. The
economic environment in Japan remains decidedly
mixed. We are currently visiting with a
3
<PAGE>
Prudential Jennison International Growth Fund
Holdings expressed as a percentage of the Fund's
net assets
Comments on Largest Holdings As of 4/30/00
4.5% DBS Group Holdings Ltd. (Singapore)/Banking &
Financial Services
Formerly the Development Bank of Singapore, DBS is
the dominant bank in Singapore.
It is run by a former JP Morgan executive who is
radically restructuring the Group.
We estimate return on equity to reach 15% by the
end of next year. We anticipate that earnings
should grow by more than 20% per year for several
years as DBS expands throughout Southeast Asia.
4.1% Pearson PLC (United Kingdom)/Media &
Entertainment
Pearson is a global media company that is rapidly
developing electronic distribution channels for its
educational, entertainment, and business content.
It owns Simon & Schuster educational publishing,
50% of The Economist, and the Financial Times
Group, among other enterprises. We expect 18% per
year compound annual earnings growth.
4.0% Ericsson AB (Sweden)/Telecommunications
Equipment
Ericsson is the global leader in wireless
telecommunications infrastructure systems and
equipment. Over the next three to five years, the
rollout of third generation wireless technology
should generate immense capital spending, which we
believe could drive Ericsson's earnings growth
above 30% per year.
4.0% Sonera Oyj (Finland)/Telecommunications
Services
Sonera is Finland's leading provider of mobile
telecommunications services. Finland's 65% mobile
phone penetration makes it an ideal proving ground
for new data services and technology. Through
subsidiaries, Sonera is introducing wireless
encryption and Internet portals for mobile devices.
We expect that Sonera's attractive Finnish market
and its technology will make it a very desirable
partner to other European operators.
4.0% Granada Group PLC (United Kingdom)/Leisure &
Tourism
Granada Group combines Britain's leading television
entertainment company with its largest hospitality
(catering, restaurants, hotels) conglomerate. Its
management has done a superb job, producing double-
digit earnings gains in each of the past eight
years. We continue to forecast low double-digit
earnings growth.
Holdings are subject to change.
4
<PAGE>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2000
number of candidates there as well as in Southeast
Asia. However, our Asian investments at period end
were in Singapore, Hong Kong, and Australia.
TMT around the globe
Stock performance recently has been dominated by
industry factors rather than country issues. TMT
stocks around the world have tended to rise and
fall together. Share prices per dollar of company
earnings had become somewhat high compared with
those in other industries, and the period since the
inception of the Series saw a global correction.
Nonetheless, we believe these sectors have
tremendous long-term growth potential. Global
communications, Internet services, and Internet
commerce are the growth industries of our time. We
are focusing on the companies that build the
infrastructure and that carry the traffic. Aside
from the companies described in Comments on Largest
Holdings, we have substantial positions in
telecommunications service providers KPN
(Netherlands) and Vodafone AirTouch (United
Kingdom) and equipment manufacturer Nokia
(Finland). We also have significant positions in
the software and related services, electronic
components, and semiconductor devices industries.
Other growth companies
Although we think highly of the prospects for the
TMT sectors, slightly less than half of our
holdings are there. We have smaller positions in
pharmaceutical companies such as Aventis (France),
financial services such as MLP (Germany) and Banca
Fideuram (Italy), as well as DBS Group (Singapore),
which is described in Comments on Largest Holdings.
Our performance
Slightly over one month's return is, of course,
much too brief a time to draw any conclusions about
a portfolio of stocks. However, the Series' fiscal
calendar requires an assessment as of April 30. Our
performance over the time since inception was
supported in part by exceptionally large returns on
the stocks of a few small companies such as
Infineon Technologies and Bookham Technology. Both
of these technology firms more than doubled in
5
<PAGE>
Prudential Jennison International Growth Fund
Semiannual Report April 30, 2000
the short time span. Among the larger firms in our
portfolio, and our larger holdings, DBS Group,
Aventis, and Brambles had substantial gains. Our
overall return was negative largely because
telecommunications services stocks--such as Sonera,
Cable & Wireless, Vodafone AirTouch, and
Telefonica--fell sharply. Software and consulting
firms such as Cap Gemini and SAP also were strongly
out of favor. We believe this was at worst a
correction of prices that had jumped somewhat ahead
of earnings growth. These are strong companies, and
we expect their stocks to return to favor.
Looking ahead
The extraordinarily high volatility in the equity
markets makes predictions for the next few months
even more risky than usual, but our portfolio
focuses on companies with rising earnings and
revenue growth and exceptional managements. We look
for companies with earnings growing at least 15% to
20% a year. With the global economy on the upswing,
we believe the longer-term outlook for these stocks
is very good.
Prudential Jennison International Growth Fund
Management Team
6
<PAGE>
Prudential Jennison International Growth Fund
Financial
Statements
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C> <C>
------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 93.6%
Common Stocks
-------------------------------------------------------------------------------------
Australia 3.1%
262,505 Brambles Industries Ltd. $ 7,383,008
251,154 News Corporation Ltd. 3,186,898
--------------
10,569,906
-------------------------------------------------------------------------------------
Finland 7.5%
205,720 Nokia Oyj 11,828,882
247,860 Sonera Oyj 13,664,685
--------------
25,493,567
-------------------------------------------------------------------------------------
France 8.3%
120,200 Aventis SA(a) 6,626,705
40,353 Cap Gemini SA(a) 7,942,686
157,200 Sanofi-Synthelabo SA 5,880,355
5,897 Societe Television Francaise 1 4,046,354
39,300 Vivendi 3,896,362
--------------
28,392,462
-------------------------------------------------------------------------------------
Germany 8.2%
29,900 Epcos AG(a) 4,223,191
164,000 Infineon Technologies AG(a) 11,320,466
9,301 Marschollek, Lautenschlaeger und Partner AG 3,305,461
13,063 SAP AG 6,142,292
38,500 SGL Carbon AG(a) 2,981,716
--------------
27,973,126
-------------------------------------------------------------------------------------
Hong Kong 4.7%
1,008,000 Johnson Electric Holdings Ltd. 8,088,347
2,070,000 Li & Fung Ltd. 8,079,104
--------------
16,167,451
-------------------------------------------------------------------------------------
Italy 3.1%
278,600 Banca Fideuram SpA 4,163,540
669,000 Telecom Italia SpA 6,401,080
--------------
10,564,620
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Mexico 3.8%
100,200 Grupo Televisa S.A. (GDR)(a) $ 6,356,438
2,032,000 Kimberly-Clark de Mexico S.A. de C.V. 6,540,761
--------------
12,897,199
-------------------------------------------------------------------------------------
Netherlands 15.8%
115,000 ASM International N.V.(a) 3,967,500
105,000 ASM Lithography Holding N.V.(a) 4,114,296
96,660 Getronics N.V. 5,778,145
38,260 Gucci Group N.V. 3,408,000
125,020 Royal KPN N.V. 12,628,536
158,040 Royal Philips Electronics N.V. 7,066,769
100,000 United Pan-Europe Communications N.V.(a) 3,647,736
249,800 VNU N.V. 13,396,049
--------------
54,007,031
-------------------------------------------------------------------------------------
Singapore 7.0%
1,180,000 Datacraft Asia Ltd.(a) 8,850,000
1,109,000 DBS Group Holdings Ltd. 15,263,503
--------------
24,113,503
-------------------------------------------------------------------------------------
Spain 2.8%
462,800 Banco Bilbao Vizcaya Argentaria SA 6,325,902
152,200 Telefonica SA(a) 3,395,188
--------------
9,721,090
-------------------------------------------------------------------------------------
Sweden 5.0%
70,000 Skandia Forsakrings AB 3,354,292
155,440 Telefonaktiebolaget LM Ericsson AB 13,837,785
--------------
17,192,077
-------------------------------------------------------------------------------------
Switzerland 2.5%
1,810 Ares-Serono Group 5,570,526
294 Roche Holding AG 3,077,603
--------------
8,648,129
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
------------------------------------------------------------------------------------------
<C> <S> <C> <C>
United Kingdom 21.8%
145,000 Bookham Technology PLC(a) $ 6,636,711
1,000 Bookham Technology PLC (ADR)(a) 52,000
586,700 Cable & Wireless PLC 9,786,611
1,372,000 Granada Group PLC 13,525,512
2,256,500 Invensys PLC 10,946,016
115,200 Logica PLC 3,506,155
410,500 Pearson PLC 13,958,281
293,000 Smiths Industries PLC 3,450,845
2,790,300 Vodafone Airtouch PLC 12,836,815
--------------
74,698,946
--------------
Total common stocks (cost $348,246,689) 320,439,107
--------------
SHORT-TERM INVESTMENT 5.2%
<CAPTION>
Principal
Amount
(000)
<C> <S> <C> <C>
-------------------------------------------------------------------------------------
Repurchase Agreement
$ 17,813 Joint Repurchase Agreement Account,
5.712%, 5/1/00 (cost $17,813,000; Note 5) 17,813,000
--------------
Total investments 98.8% (cost $366,059,689; Note 4) 338,252,107
Other assets in excess of liabilities 1.2% 4,157,231
--------------
Net Assets 100% $ 342,409,338
</TABLE>
--------------------------------------------------------------------------------
(a) Non-income producing security.
ADR--American Depository Receipt.
GDR--Global Depository Receipt.
10 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
The industry classification of portfolio holdings shown as a percentage of net
assets as of April 30, 2000 was as follows:
<TABLE>
<S> <C>
Telecommunication Services................................................ 18.2%
Media & Entertainment..................................................... 12.0
Telecommunications Equipment.............................................. 10.1
Banks & Financial Services................................................ 8.5
Computer Software & Services.............................................. 6.8
Electronics............................................................... 5.7
Semiconductors............................................................ 5.7
Pharmaceuticals........................................................... 4.5
Leisure & Tourism......................................................... 3.9
Engineering & Equipment................................................... 3.2
Exporting/Importing....................................................... 2.4
Conglomerates............................................................. 2.2
Fiber Optics.............................................................. 1.9
Paper & Forest Products................................................... 1.9
Biotechnology............................................................. 1.6
Utilities................................................................. 1.1
Apparel................................................................... 1.0
Diversified Manufacturing................................................. 1.0
Insurance................................................................. 1.0
Chemicals................................................................. 0.9
Repurchase Agreements..................................................... 5.2
-----
98.8
Other assets in excess of liabilities..................................... 1.2
-----
100.0%
-----
-----
</TABLE>
See Notes to Financial Statements 11
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $366,059,689) $ 338,252,107
Foreign currency, at value (cost $612,893) 589,844
Receivable for investments sold 10,050,885
Receivable for Series shares sold 1,671,040
Interest and dividends receivable 237,304
Deferred expenses and other assets 171,863
--------------
Total assets 350,973,043
--------------
LIABILITIES
Payable for investments purchased 7,237,221
Payable for Series shares reacquired 591,025
Accrued expenses and other liabilities 304,387
Management fee payable 229,208
Distribution fee payable 201,864
--------------
Total liabilities 8,563,705
--------------
NET ASSETS $ 342,409,338
--------------
--------------
Net assets were comprised of:
Common stock, at par $ 371,972
Paid-in capital in excess of par 369,655,663
--------------
370,027,635
Undistributed net investment income 391,296
Accumulated net realized loss on investments (164,595)
Net unrealized depreciation on investments and foreign
currencies (27,844,998)
--------------
Net assets, April 30, 2000 $ 342,409,338
--------------
--------------
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Statement of Assets and Liabilities (Unaudited) Cont'd.
<TABLE>
<CAPTION>
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share ($88,673,681 /
9,624,445 shares of common stock issued and outstanding) $9.21
Maximum sales charge (5% of offering price) .48
--------------
Maximum offering price to public $9.69
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($149,740,630 / 16,273,811 shares of common stock issued
and outstanding) $9.20
--------------
--------------
Class C:
Net asset value and redemption price per share ($82,052,352 /
8,917,831 shares of common stock issued and outstanding) $9.20
Sales charge (1% of offering price) .09
--------------
Offering price to public $9.29
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($21,942,675 / 2,381,076 shares of common stock issued and
outstanding) $9.22
--------------
--------------
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
March 1, 2000(a)
Through
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Dividends $ 705,650
Interest 823,281
Less: Foreign withholding taxes (88,896)
----------------
Total income 1,440,035
----------------
Expenses
Management fee 460,073
Distribution fee--Class A 36,073
Distribution fee--Class B 233,251
Distribution fee--Class C 134,283
Custodian's fees and expenses 55,000
Transfer agent's fees and expenses 35,000
Amortization of offering cost 33,000
Organizational cost 19,000
Reports to shareholders 18,000
Audit fees and expenses 9,000
Legal fees and expenses 4,000
Directors' fees and expenses 4,000
Miscellaneous 8,059
----------------
Total expenses 1,048,739
----------------
Net investment income 391,296
----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investment transactions 207,750
Foreign currency transactions (372,345)
----------------
(164,595)
----------------
Net change in unrealized depreciation on:
Investments (27,838,054)
Foreign currencies (6,944)
----------------
(27,844,998)
----------------
Net loss on investments and foreign currencies (28,009,593)
----------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $(27,618,297)
----------------
----------------
---------------
(a) Commencement of investment operations.
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
March 1, 2000(b)
Through
April 30, 2000
<S> <C> <C>
---------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment income $ 391,296
Net realized loss on investment and foreign currency
transactions (164,595)
Net change in unrealized depreciation of investments and
foreign currencies (27,844,998)
----------------
Net decrease in net assets resulting from operations (27,618,297)
----------------
Series share transactions (net of conversions) (Note 6)
Net proceeds from shares sold 391,409,445
Cost of shares reacquired (21,381,810)
----------------
Net increase in net assets from Series share transactions 370,027,635
----------------
Total increase 342,409,338
NET ASSETS
Beginning of period --
----------------
End of period(a) $342,409,338
----------------
----------------
------------------------------
(a) Includes undistributed net investment income of: $ 391,296
---------------- ---
(b) Commencement of investment operations.
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited)
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 three series: Prudential
International Value Fund, Prudential Global Growth Fund and the Prudential
Jennison International Growth Fund (the 'Series'). The Series commenced
investment operations in March 2000. The investment objective of the Series is
to achieve long-term growth of capital. The Series seeks to achieve its
objective primarily through investment in equity-related securities of foreign
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 sale 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 subadviser.
Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost.
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 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.
16
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
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 the end of the period. 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 or 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 (depreciation) on investments and foreign currencies.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of domestic origin
as a result of, among other factors, the possibility of political and economic
instability and the level of governmental supervision and regulation of foreign
securities markets.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized and unrealized gains and
losses from investment and currency transactions are calculated on the
identified cost basis. Dividend income is recorded on the ex-dividend date;
interest income is recorded on the accrual
17
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
basis. Expenses are recorded on the accrual basis which may require the use of
certain estimates by management.
Net investment income other than distribution fees, and unrealized and
realized gains or losses are allocated daily to each class of shares based upon
the relative proportion of net assets of each class at the beginning of the day.
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 meet
the requirements of the Internal Revenue Code applicable to regulated investment
companies and to distribute all of its net income to shareholders. Therefore, no
federal income tax provision is required.
Withholding taxes on foreign dividends have been provided for in
accordance with the Fund's understanding of the applicable country's tax rules
and rates.
Dividends and Distributions: The Fund expects to pay dividends of net
investment income and distributions of net realized capital and currency gains,
if any, at least 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.
Note 2. Agreements
The Fund has a management agreement with Prudential Investments Fund Management
LLC ('PIFM'). Pursuant to a subadvisory agreement between PIFM and Jennison
Associates LLC ('Jennison'), Jennison furnishes investment advisory services in
connection with the management of the Series. Under the subadvisory agreement,
Jennison, subject to the supervision of PIFM, is responsible for managing the
assets of the Series in accordance with its investment objective and policies.
The management fee paid PIFM is computed daily and payable monthly, at an
annual rate of .85 of 1% of the average daily net assets of the Series up to and
including $300 million, .75 of 1% of the average daily net assets in excess of
$300 million up to and including $1.5 billion and .70 of 1% of the Series'
average daily assets over $1.5 billion. PIFM pays Jennison a subadvisory fee at
an annual rate of .60 of 1% of the average daily net assets of the Series up to
and including $300 million, .50 of 1% of the average daily net assets in excess
of $300 million up to and including $1.5 billion and .45 of 1% of the Series'
average and daily net assets over $1.5 billion. PIFM also pays the cost of
compensation of officers and employees of the
18
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
Fund, occupancy and certain clerical and bookkeeping costs of the Fund. The Fund
bears all other costs and expenses.
The Fund has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS') which acts as the distributor of the Class A,
Class B, Class C and Class Z shares of the Fund. The Fund compensates 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 Class Z shares of the Fund.
Pursuant to the Class A, B and C Plans, the Series compensates PIMS for
distribution-related activities at an annual rate of up to .30 of 1%, 1% and 1%
of the average daily net assets of the Class A, B, and C shares, respectively.
Such expenses under the Plans were .25 of 1%, 1% and 1% of the average daily net
assets of the Class A, B and C shares respectively, for the period ended April
30, 2000.
PIMS has advised the Series that they received approximately $2,195,000
and $890,000 in front-end sales charges resulting from sales of Class A and
Class C shares, respectively, during the period ended April 30, 2000. 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 has advised the Series that for the period ended April 30, 2000, they
received approximately $39,000 and $16,000 in contingent deferred sales charges
imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PIMS, PIFM and Jennison are wholly owned subsidiaries of The Prudential
Insurance Company of America.
The Series, 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.
Interest on any such borrowings 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 of .080 of 1% of the unused portion
of the credit facility. The commitment fee is accrued and paid quarterly on a
pro rata basis by the Funds. The expiration date of the SCA is March 9, 2001.
Prior to March 9, 2000, the commitment fee was .065 of 1% of the unused portion
of the credit facility. The Fund did not borrow any amounts pursuant to the SCA
during the period ended April 30, 2000.
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. During the period ended April 30, 2000, the
19
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
Series incurred fees of approximately $32,300 for the services of PMFS. As of
April 30, 2000, approximately $32,300 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 portfolio securities of the Series, excluding short-term
investments, for the period ended April 30, 2000 were $383,371,238 and
$35,319,383, respectively.
The cost basis of investments for federal income tax purposes at April 30,
2000 was $366,755,300 and accordingly, net unrealized depreciation of
investments for federal income tax purposes was $28,506,193 (gross unrealized
appreciation--$18,122,745; gross unrealized depreciation--$46,628,938).
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, 2000, the Series
had a 2.09% undivided interest in the repurchase agreements in the joint
account. The undivided interest for the Series represents $17,813,000 in the
principal amount. As of such date, each repurchase agreement in the joint
account and the collateral therefore were as follows:
ABN AMRO Inc., 5.72%, in the principal amount of $160,000,000, repurchase
price $160,076,267, due 5/1/00. The value of the collateral including accrued
interest was $163,200,995.
Bear, Stearns & Co. Inc., 5.72%, in the principal amount of $160,000,000,
repurchase price $160,076,267, due 5/1/00. The value of the collateral including
accrued interest was $166,727,544.
Credit Suisse First Boston Corp., 5.75%, in the principal amount of
$160,000,000, repurchase price $160,076,667, due 5/1/00. The value of the
collateral including accrued interest was $165,506,481.
Morgan (J.P.) Securities, Inc., 5.72%, in the principal amount of
$210,000,000, repurchase price $210,100,100, due 5/1/00. The value of the
collateral including accrued interest was $214,200,036.
Salomon Smith Barney, Inc., 5.65%, in the principal amount of
$162,577,000, repurchase price $162,653,547, due 5/1/00. The value of the
collateral including accrued interest was $165,893,849.
20
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 6. 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. Class B shares 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 qualified 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>
March 1, 2000(a) through April 30, 2000:
Shares sold 11,060,072 $109,699,330
Shares reacquired (1,437,559) (13,940,706)
---------- ------------
Net increase in shares outstanding before conversion 9,622,513 95,758,624
Shares issued upon conversion from Class B 1,932 19,647
---------- ------------
Net increase in shares outstanding 9,624,445 $ 95,778,271
---------- ------------
---------- ------------
<CAPTION>
Class B
-----------------------------------------------------------
<S> <C> <C>
March 1, 2000(a) through April 30, 2000:
Shares sold 16,578,746 $164,470,907
Shares reacquired (303,001) (2,863,173)
---------- ------------
Net increase in shares outstanding before conversion 16,275,745 161,607,734
Shares reacquired upon conversion into Class A (1,934) (19,647)
---------- ------------
Net increase in shares outstanding 16,273,811 $161,588,087
---------- ------------
---------- ------------
---------------
(a) Commencement of investment operations.
</TABLE>
21
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C Shares Amount
----------------------------------------------------------- ---------- ------------
March 1, 2000(a) through April 30, 2000:
<S> <C> <C>
Shares sold 9,172,856 $ 91,293,963
Shares reacquired (255,025) (2,409,687)
---------- ------------
Net increase in shares outstanding 8,917,831 $ 88,884,276
---------- ------------
---------- ------------
<CAPTION>
Class Z
-----------------------------------------------------------
<S> <C> <C>
March 1, 2000(a) through April 30, 2000:
Shares sold 2,610,766 $ 25,945,245
Shares reacquired (229,690) (2,168,244)
---------- ------------
Net increase in shares outstanding 2,381,076 $ 23,777,001
---------- ------------
---------- ------------
</TABLE>
---------------
(a) Commencement of investment operations.
22
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International Growth
Financial
Highlights
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' ' '
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Class A
----------------
March 1, 2000(a)
Through
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 10.00
--------
Income from investment operations:
Net investment income 0.02
Net realized and unrealized loss on investment and foreign
currency transactions (0.81)
--------
Total from investment operations (0.79)
--------
Net asset value, end of period $ 9.21
--------
--------
TOTAL RETURN(b) (7.90)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 88,674
Average net assets (000) $ 88,018
Ratios to average net assets(c):
Expenses, including distribution fees 1.43%
Expenses, excluding distribution fees 1.18%
Net investment income 1.22%
For Class A, B, C and Z shares:
Portfolio turnover rate 11%
</TABLE>
------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effect of sales load. 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 return for periods of less than a full year are not
annualized.
(c) Annualized.
24 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class B
----------------
March 1, 2000(a)
Through
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 10.00
----------------
Income from investment operations:
Net investment income 0.01
Net realized and unrealized loss on investment and foreign
currency transactions (0.81)
----------------
Total from investment operations (0.80)
----------------
Net asset value, end of period $ 9.20
----------------
----------------
TOTAL RETURN(b) (8.00)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $149,741
Average net assets (000) $142,283
Ratios to average net assets(c):
Expenses, including distribution fees 2.18%
Expenses, excluding distribution fees 1.18%
Net investment income 0.43%
</TABLE>
------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effect of sales load. 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 return for periods of less than a full year are not
annualized.
(c) Annualized.
See Notes to Financial Statements 25
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C
----------------
March 1, 2000(a)
Through
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 10.00
----------------
Income from investment operations
Net investment income 0.01
Net realized and unrealized loss on investment and foreign
currency transactions (0.81)
----------------
Total from investment operations (0.80)
----------------
Net asset value, end of period $ 9.20
----------------
----------------
TOTAL RETURN(b) (8.00)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 82,052
Average net assets (000) $ 81,913
Ratios to average net assets(c):
Expenses, including distribution fees 2.18%
Expenses, excluding distribution fees 1.18%
Net investment income 0.47%
</TABLE>
------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effect of sales load. 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 return for periods of less than a full year are not
annualized.
(c) Annualized.
26 See Notes to Financial Statements
<PAGE>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class Z
----------------
March 1, 2000(a)
Through
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 10.00
----------------
Income from investment operations:
Net investment income 0.02
Net realized and unrealized loss on investment and foreign
currency transactions (0.80)
----------------
Total from investment operations (0.78)
----------------
Net asset value, end of period $ 9.22
----------------
----------------
TOTAL RETURN(b) (7.80)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 21,943
Average net assets (000) $ 21,979
Ratios to average net assets(c):
Expenses, including distribution fees 1.18%
Expenses, excluding distribution fees 1.18%
Net investment income 1.46%
</TABLE>
------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effect of sales load. 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 return for periods of less than a full year are not
annualized.
(c) Annualized.
See Notes to Financial Statements 27
<PAGE>
Prudential Jennison International Growth Fund
Getting the Most from Your Prudential Mutual Fund
When you invest through Prudential Mutual Funds,
you receive financial advice from a Prudential
Securities Financial Advisor or 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. 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 available
mutual funds to find the ones that fit your
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
should remind you that you're investing for the
long haul.
<PAGE>
www.prudential.com (800) 225-1852
For More Information
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Directors
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
David R. Odenath, Jr.
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
William V. Healey, 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 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
Fund Symbols
NASDAQ CUSIP
Class A PJRAX 743969859
Class B PJRBX 743969867
Class C PJRCX 743969875
Class Z N/A 743969883
The accompanying financial statements as
of April 30, 2000, were not audited and,
accordingly, no opinion is expressed on them.
<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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