<PAGE>
Prudential Mutual Funds
Supplement dated October 21, 1998
New Pricing Structure for Class C shares
Effective on November 2, 1998, Class C shares of the Prudential Mutual Funds
will be sold with a 1% initial sales charge and will be subject to a contingent
deferred sales charge of 1% of the lesser of the amount invested or the
redemption proceeds if redeemed within 18 months of purchase. In connection with
the sale of Class C shares, the Distributor will pay dealers, financial advisers
and other persons who sell Class C shares a sales commission of up to 2% of the
purchase price at the time of sale.
Class C shares issued before November 2, 1998 will not be affected by the
new pricing structure described above and will continue to be subject to a
contingent deferred sales charge of 1% on redemptions within one year of
purchase.
Waiver of Initial Sales Charge--Class A Shares
The paragraph under 'Alternative Purchase Plan--Class A Shares--Reduction
and Waiver of Initial Sales Charges--Benefit Plans' is amended to read in its
entirety as follows:
Benefit Plans. Class A shares may be purchased at NAV, without payment of an
initial sales charge, by pension, profit-sharing or other employee benefit plans
qualified under Section 401 of the Internal Revenue Code, deferred compensation
and annuity plans under Sections 457 and 403 (b)(7) of the Internal Revenue Code
and non-qualified deferred compensation plans that are sponsored by any employer
that has a tax qualified benefit plan with Prudential (collectively, Benefit
Plans), provided that the Benefit Plan has existing assets of at least $1
million invested in shares of Prudential Mutual Funds (excluding money market
funds other than those acquired pursuant to the exchange privilege) or 250
eligible employees or participants. In the case of Benefit Plans whose accounts
are held directly with the Transfer Agent or Prudential Securities and for which
the Transfer Agent or Prudential Securities does individual account
recordkeeping (Direct Account Benefit Plans) and Benefit Plans sponsored by
Prudential, Prudential Securities or its subsidiaries (Prudential Securities or
Subsidiary Prototype Benefit Plans), Class A shares may be purchased at NAV by
participants who are repaying loans made from such plans to the participant.
Waiver of Initial Sales Charge--Class C Shares
Benefit Plans. Class C shares may be purchased at NAV, without payment of an
initial sales charge, by Benefit Plans (as defined above). In the case of
Benefit Plans whose accounts are held directly with the Transfer Agent or
Prudential Securities and for which the Transfer Agent or Prudential Securities
does individual account recordkeeping (Direct Account Benefit Plans) and Benefit
Plans sponsored by Prudential, Prudential Securities or its subsidiaries
(Prudential Securities or Subsidiary Prototype Benefit Plans), Class C shares
may be purchased at NAV by participants who are repaying the loans made from
such plans to the participant.
Prudential Retirement Plans. The initial sales charge will be waived with
respect to purchases of Class C shares by qualified and non-qualified retirement
and deferred compensation plans participating in the PruArray Plan and other
plans for which Prudential provides administrative or recordkeeping services.
Investments of Redemption Proceeds from Other Investment Companies.
Investors may purchase Class C shares at NAV, without the initial sales charge,
with the proceeds from the redemption of shares of any unaffiliated registered
investment company which were not held through an account with any Prudential
affiliate. Such purchases must be made within 60 days of the redemption.
Investors eligible for this waiver
<PAGE>
include: (i) investors purchasing shares through an account at Prudential
Securities Incorporated; (ii) investors purchasing shares through an ADVANTAGE
Account or an Investor Account with Pruco Securities Corporation; and (iii)
investors purchasing shares through other Dealers. This waiver is not available
to investors who purchase shares directly from the Transfer Agent. You must
notify the Transfer Agent directly or through your Dealer if you are entitled to
this waiver and provide the Transfer Agent with such supporting documents as it
may deem appropriate.
Waiver of Class C Contingent Deferred Sales Charges
Prudential Retirement Plans. The CDSC will be waived on redemptions from
qualified and non-qualified retirement and deferred compensation plans that
participate in the PruArray Program and other plans for which Prudential
provides administrative or recordkeeping services. The CDSC will also be waived
on redemptions from Benefit Plans sponsored by Prudential and its affiliates to
the extent that the redemption proceeds are invested in The Guaranteed
Investment Account, a group annuity insurance product issued by Prudential, the
Guaranteed Insulated Separate Account, a separate account offered by Prudential,
and units of The Stable Value Fund, an unaffiliated bank collective fund.
Other Benefit Plans. The CDSC will be waived on redemptions from Benefit
Plans holding shares through a Dealer not affiliated with Prudential and for
whom the Dealer provides administrative or recordkeeping services.
Minimum Initial Investment for Class C Shares
The minimum initial investment for Class C shares has been lowered to
$2,500. The minimum initial investment for purchases made through the Automatic
Investment Plan is $50.
Expense Table--Example
The following replaces the information on Class C shares under 'Fund
Expenses--Example':
Example
You would pay the following expenses on a $1,000 investment in Class C
shares, assuming (1) 5% annual return and (2) redemption at the end of each time
period or (3) no redemption at the end of each time period:
<TABLE>
<CAPTION>
Fund 1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Global Utility Fund, Inc. (Redemption) $ 40 $71 $ 115 $236
Global Utility Fund, Inc. (No Redemption) 30 71 115 236
Nicholas-Applegate Growth Equity Fund (Redemption) 42 78 126 260
Nicholas-Applegate Growth Equity Fund (No Redemption) 32 78 126 260
Prudential Active Balanced Fund (Redemption) 40 73 118 243
Prudential Active Balanced Fund (No Redemption) 30 73 118 243
Prudential Balanced Fund (Redemption) 39 70 113 232
Prudential Balanced Fund (No Redemption) 29 70 113 232
Prudential California Series (Redemption) 35 56 89 183
Prudential California Series (No Redemption) 25 56 89 183
Prudential California Income Series (Redemption) 34 55 87 180
Prudential California Income Series (No Redemption) 24 55 87 180
Prudential Developing Markets Equity Fund (Redemption) 48 94 154 315
Prudential Developing Markets Equity Fund (No Redemption) 38 94 154 315
Prudential Global Series (Redemption) 41 76 124 255
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Fund 1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Prudential Global Series (No Redemption) $ 31 $76 $ 124 $255
Prudential Latin America Equity Fund (Redemption) 48 94 154 315
Prudential Latin America Equity Fund (No Redemption) 38 94 154 315
Prudential Distressed Securities Fund, Inc. (Redemption) 40 72 117 240
Prudential Distressed Securities Fund, Inc. (No Redemption) 30 72 117 240
Prudential Diversified Bond Fund, Inc. (Redemption) 34 54 87 178
Prudential Diversified Bond Fund, Inc. (No Redemption) 24 54 87 178
Prudential Emerging Growth Fund, Inc. (Redemption) 42 78 127 262
Prudential Emerging Growth Fund, Inc. (No Redemption) 32 78 127 262
Prudential Equity Fund, Inc. (Redemption) 36 61 98 201
Prudential Equity Fund, Inc. (No Redemption) 26 61 98 201
Prudential Equity Income Fund (Redemption) 37 63 101 208
Prudential Equity Income Fund (No Redemption) 27 63 101 208
Prudential Europe Growth Fund, Inc. (Redemption) 41 76 124 255
Prudential Europe Growth Fund, Inc. (No Redemption) 31 76 124 255
Prudential Florida Series (Redemption) 34 54 87 178
Prudential Florida Series (No Redemption) 24 54 87 178
Prudential Global Genesis Fund, Inc. (Redemption) 46 91 148 303
Prudential Global Genesis Fund, Inc. (No Redemption) 36 91 148 303
Prudential Global Limited Maturity Portfolio (Redemption) 40 71 114 235
Prudential Global Limited Maturity Portfolio (No Redemption) 30 71 114 235
Prudential Government Income Fund, Inc. (Redemption) 35 56 89 183
Prudential Government Income Fund, Inc. (No Redemption) 25 56 89 183
Prudential High Yield Fund, Inc. (Redemption) 33 50 80 164
Prudential High Yield Fund, Inc. (No Redemption) 23 50 80 164
Prudential High Income Series (Redemption) 33 51 82 167
Prudential High Income Series (No Redemption) 23 51 82 167
Prudential High Yield Total Return Fund, Inc. (Redemption) 35 57 91 187
Prudential High Yield Total Return Fund, Inc. (No Redemption) 25 57 91 187
Prudential Insured Series (Redemption) 34 53 84 172
Prudential Insured Series (No Redemption) 24 53 84 172
Prudential Intermediate Global Income Fund, Inc. (Redemption) 40 72 117 241
Prudential Intermediate Global Income Fund, Inc. (No
Redemption) 30 72 117 241
Prudential Intermediate Series (Redemption) 40 72 116 238
Prudential Intermediate Series (No Redemption) 30 72 116 238
Prudential International Bond Fund, Inc. (Redemption) 42 79 129 265
Prudential International Bond Fund, Inc. (No Redemption) 32 79 129 265
Prudential International Stock Series (Redemption) 45 87 142 291
Prudential International Stock Series (No Redemption) 35 87 142 291
Prudential Jennison Growth Fund (Redemption) 39 67 109 224
Prudential Jennison Growth Fund (No Redemption) 29 67 109 224
Prudential Jennison Growth & Income Fund (Redemption) 43 82 133 274
Prudential Jennison Growth & Income Fund (No Redemption) 43 82 133 274
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Fund 1 Year 3 Years 5 Years 10 Years
- ------------------------------------------------------------- ------ ------- ------- --------
<S> <C> <C> <C> <C>
Prudential Maryland Series (Redemption) $ 38 $67 $ 108 $222
Prudential Maryland Series (No Redemption) 28 67 108 222
Prudential Massachusetts Series (Redemption) 37 63 101 209
Prudential Massachusetts Series (No Redemption) 27 63 101 209
Prudential Michigan Series (Redemption) 36 60 97 199
Prudential Michigan Series (No Redemption) 26 60 97 199
Prudential Mid-Cap Value Fund (Redemption) 42 78 127 261
Prudential Mid-Cap Value Fund (No Redemption) 32 78 127 261
Prudential Mortgage Income Fund, Inc. (Redemption) 37 63 101 209
Prudential Mortgage Income Fund, Inc. (No Redemption) 27 63 101 209
Prudential National Municipals Fund, Inc. (Redemption) 34 53 85 174
Prudential National Municipals Fund, Inc. (No Redemption) 24 53 85 174
Prudential Natural Resources Fund, Inc. (Redemption) 43 81 132 271
Prudential Natural Resources Fund, Inc. (No Redemption) 33 81 132 271
Prudential New Jersey Series (Redemption) 34 52 83 171
Prudential New Jersey Series (No Redemption) 24 52 83 171
Prudential New York Series (Redemption) 34 53 85 174
Prudential New York Series (No Redemption) 24 53 85 174
Prudential North Carolina Series (Redemption) 36 61 98 201
Prudential North Carolina Series (No Redemption) 26 61 98 201
Prudential Ohio Series (Redemption) 35 57 91 187
Prudential Ohio Series (No Redemption) 25 57 91 187
Prudential Pacific Growth Fund, Inc. (Redemption) 42 79 128 264
Prudential Pacific Growth Fund, Inc. (No Redemption) 32 79 128 264
Prudential Pennsylvania Series (Redemption) 34 54 87 178
Prudential Pennsylvania Series (No Redemption) 24 54 87 178
Prudential Real Estate Securities Fund (Redemption) 42 77 124 256
Prudential Real Estate Securities Fund (No Redemption) 32 77 124 256
Prudential Small-Cap Quantum Fund, Inc. (Redemption) 40 71 115 237
Prudential Small-Cap Quantum Fund, Inc. (No Redemption) 30 71 115 237
Prudential Small Company Value Fund, Inc. (Redemption) 40 71 115 236
Prudential Small Company Value Fund, Inc. (No Redemption) 30 71 115 236
Prudential Structured Maturity Fund, Inc. (Redemption) 36 60 96 197
Prudential Structured Maturity Fund, Inc. (No Redemption) 26 60 96 197
Prudential Utility Fund, Inc. (Redemption) 36 59 95 195
Prudential Utility Fund, Inc. (No Redemption) 26 59 95 195
Prudential 20/20 Focus Fund (Redemption) 40 71 115 236
Prudential 20/20 Focus Fund (No Redemption) 30 71 115 236
The Global Total Return Fund, Inc. (Redemption) 40 72 116 239
The Global Total Return Fund, Inc. (No Redemption) 30 72 116 239
</TABLE>
<PAGE>
Shareholder Guide
The following replaces information under 'Shareholder Guide--Alternative
Purchase Plan':
The following is provided to assist you in determining which method of
purchase best suits your individual circumstances and is based on current fees
and expenses being charged to the Funds.
Equity Funds
If you intend to hold your investment in a Fund for less than 4 years and do
not qualify for a reduced sales charge on Class A shares, since Class A shares
are subject to an initial sales charge of 5% and Class B shares are subject to a
CDSC of 5% which declines to zero over a 6-year period, you should consider
purchasing Class C shares over either Class A or Class B shares.
If you intend to hold your investment for longer than 4 years, but less than
5 years, and do not qualify for a reduced sales charge on Class A shares, you
should consider purchasing Class B or Class C shares over Class A shares. This
is because the sales charge plus the cumulative annual distribution-related fee
on Class A shares would exceed those of the Class B and Class C shares if you
redeem your investment during this time period. In addition, more of your money
would be invested initially in the case of Class C shares, because of the
relatively low initial sales charge, and all of your money would be invested
initially in the case of Class B shares, which are sold at NAV.
If you intend to hold your investment for longer than 5 years, you should
consider purchasing Class A shares over either Class B or Class C shares. This
is because the maximum sales charge plus the cumulative annual
distribution-related fee on Class A shares would be less than those of the Class
B and Class C shares.
If you qualify for a reduced sales charge on Class A shares, it may be more
advantageous for you to purchase Class A shares over either Class B or Class C
shares regardless of how long you intend to hold your investment. However,
unlike Class B shares, you would not have all of your money invested initially
because the sales charge on Class A shares is deducted at the time of purchase.
If you do not qualify for a reduced sales charge on Class A shares and you
purchase Class B or Class C shares, you would have to hold your investment for
more than 6 years in the case of Class B shares and for more than 5 years in the
case of Class C shares for the higher cumulative annual distribution-related fee
on those shares plus, in the case of Class C shares, the 1% initial sales charge
to exceed the initial sales charge plus the cumulative annual
distribution-related fees on Class A shares. This does not take into account the
time value of money, which further reduces the impact of the higher Class B or
Class C distribution-related fee on the investment, fluctuations in NAV, the
effect of the return on the investment over this period of time or redemptions
when the CDSC is applicable.
Tax-Exempt Bond Funds
If you intend to hold your investment in a Fund for less than 3 years and do
not qualify for a reduced sales charge on Class A shares, since Class A shares
are subject to a maximum initial sales charge of 3% and Class B shares are
subject to a CDSC of 5% which declines to zero over a 6 year period, you should
consider purchasing Class C shares over either Class A or Class B shares.
If you intend to hold your investment for more than 3 years, but less than 4
years, or for more than 5 years, but less than 6 years, you should consider
purchasing Class A shares, because the maximum 3% initial sales charge plus the
cumulative annual distribution-related fee on Class A shares would be lower
than: (i) the contingent-deferred sales charge plus the cumulative annual
distribution-related fee on Class B shares; and (ii) the 1% initial sales charge
plus the cumulative annual distribution-related fee on Class C shares.
<PAGE>
If you intend to hold your investment for more than 4 years, but less than 5
years, you may consider purchasing Class A or Class B shares because: (i) the
maximum 3% initial sales charge plus the cumulative annual distribution-related
fee on Class A shares and (ii) the contingent-deferred sales charge plus the
cumulative annual distribution-related fee on Class B shares would be lower than
the 1% initial sales charge plus the cumulative annual distribution-related fee
on Class C shares.
If you intend to hold your investment for more than 6 years and do not
qualify for a reduced sales charge on Class A shares, since Class B shares
convert to Class A shares approximately 7 years after purchase and because all
of your money would be invested initially in the case of Class B shares, you
should consider purchasing Class B shares over either Class A or Class C shares.
If you qualify for a reduced sales charge on Class A shares, it may be more
advantageous for you to purchase Class A shares over either Class B or Class C
shares regardless of how long you intend to hold your investment. However,
unlike Class B shares, you would not have all of your money invested initially
because the sales charge on Class A shares is deducted at the time of purchase.
If you do not qualify for a reduced sales charge on Class A shares and you
purchase Class C shares, you would have to hold your investment for more than 3
years for the 1% initial sales charge plus the higher cumulative annual
distribution-related fee on the Class C shares to exceed the initial sales
charge plus cumulative annual distribution-related fees on Class A shares. This
does not take into account the time value of money, which further reduces the
impact of the higher Class C distribution-related fee on the investment,
fluctuations in NAV, the effect of the return on the investment over this period
of time or redemptions when the CDSC is applicable.
Taxable Bond Funds (except Government Income, Structured Maturity, Global
Limited Maturity and Intermediate Global Income Funds)
If you intend to hold your investment in the Fund for less than 4 years and
do not qualify for a reduced sales charge on Class A shares, since Class A
shares are subject to a maximum initial sales charge of 4% and Class B shares
are subject to a CDSC of 5% which declines to zero over a 6-year period, you
should consider purchasing Class C shares over either Class A or Class B shares.
If you intend to hold your investment for more than 4 years, but less than 5
years, and do not qualify for a reduced sales charge on Class A shares, the
sales charges and cumulative annual distribution-related fees would be
approximately the same for Class A, Class B and Class C shares. However, you
should consider purchasing Class B shares over Class A shares or Class C shares
because all of your money would be invested initially in the case of Class B
shares.
If you intend to hold your investment for longer than 5 years, you should
consider purchasing Class A shares over either Class B or Class C shares. This
is because the maximum sales charge plus the cumulative annual
distribution-related fee on Class A shares would be less than those of the Class
B and Class C shares.
If you qualify for a reduced sales charge on Class A shares, it may be more
advantageous for you to purchase Class A shares over either Class B or Class C
shares regardless of how long you intend to hold your investment. However,
unlike Class B shares, you would not have all of your money invested initially
because the sales charge on Class A shares is deducted at the time of purchase.
If you do not qualify for a reduced sales charge on Class A shares and you
purchase Class B or Class C shares, you would have to hold your investment for
more than 6 years in the case of Class B shares and for more than 5 years in the
case of Class C shares for the higher cumulative annual distribution-related fee
on those shares plus, in the case of Class C shares, the 1% initial sales charge
to exceed the initial sales charge plus cumulative annual distribution-related
fees on Class A shares. This does not take into account the time
<PAGE>
value of money, which further reduces the impact of the higher Class B or Class
C distribution-related fee on the investment, fluctuations in NAV, the effect of
the return on the investment over this period of time or redemptions when the
CDSC is applicable.
Government Income Fund
If you intend to hold your investment in the Fund for less than 4 years and
do not qualify for a reduced sales charge on Class A shares, since Class A
shares are subject to a maximum initial sales charge of 4% and Class B shares
are subject to a CDSC of 5% which declines to zero over a 6 year period, you
should consider purchasing Class C shares over either Class A or Class B shares.
If you intend to hold your investment for more than 4 years, but less than 5
years, you may consider purchasing Class A shares or Class C shares because: (i)
the maximum 4% initial sales charge plus the cumulative annual
distribution-related fee on Class A shares; and (ii) the maximum 1% initial
sales charge plus the cumulative annual distribution-related fee on Class C
shares would be lower than the contingent-deferred sales charge plus the
cumulative annual distribution-related fee on Class B shares.
If you intend to hold your investment for longer than 5 years, you should
consider purchasing Class A shares over either Class B or Class C shares. This
is because the maximum sales charge plus the cumulative annual
distribution-related fee on Class A shares would be less than those of the Class
B and Class C shares.
If you qualify for a reduced sales charge on Class A shares, it may be more
advantageous for you to purchase Class A shares over either Class B or Class C
shares regardless of how long you intend to hold your investment. However,
unlike Class B shares, you would not have all of your money invested initially
because the sales charge on Class A shares is deducted at the time of purchase.
If you do not qualify for a reduced sales charge on Class A shares and you
purchase Class B or Class C shares, you would have to hold your investment for
more than 5 years for the higher cumulative annual distribution-related fee on
those shares plus, in the case of Class C shares, the 1% initial sales charge to
exceed the initial sales charge plus cumulative annual distribution-related fee
on Class A shares. This does not take into account the time value of money,
which further reduces the impact of the higher Class B or Class C
distribution-related fee on the investment, fluctuations in NAV, the effect of
the return on the investment over this period of time or redemptions when the
CDSC is applicable.
Structured Maturity Fund
If you intend to hold your investment in the Fund for less than 2 years and
do not qualify for a reduced sales charge on Class A shares, since Class A
shares are subject to a maximum initial sales charge of 3.25% and Class B shares
are subject to a CDSC of 3% which declines to zero over a 4 year period, you
should consider purchasing Class C shares over either Class A or Class B shares.
If you intend to hold your investment for more than 2 years, but less than 3
years, you may consider purchasing Class B or Class C shares because: (i) the
contingent-deferred sales load plus the cumulative annual distribution-related
fee on Class B shares; and (ii) the maximum 1% initial sales charge plus the
cumulative annual distribution-related fee on Class C shares would be lower than
the maximum 3.25% initial sales charge plus the cumulative annual
distribution-related fee on Class A shares. In addition, more of your money
would be invested initially in the case of Class C shares, because of the
relatively low initial sales charge, and all of your money would be invested
initially in the case of Class B shares, which are sold at NAV.
If you intend to hold your investment for more than 3 years, but less than 4
years, you may consider purchasing Class A shares because the maximum 3.25%
initial sales charge plus the cumulative annual distribution-related fee on
Class A shares would be lower than: (i) the contingent-deferred sales charge
plus
<PAGE>
the cumulative annual distribution-related fee on Class B shares; and (ii) the
maximum 1% initial sales charge plus the cumulative annual distribution-related
fee on Class C shares.
If you intend to hold your investment for more than 4 years, but less than 5
years, you may consider purchasing Class A or Class B shares because the maximum
3.25% initial sales charge plus the cumulative annual distribution-related fee
on Class A shares and the cumulative annual distribution-related fee on Class B
shares would be less than the maximum 1% initial sales charge plus the
cumulative annual distribution-related fee on Class C shares.
If you intend to hold your investment for longer than 5 years, you should
consider purchasing Class A shares over either Class B or Class C shares. This
is because the maximum sales charge plus the cumulative annual
distribution-related fee on Class A shares would be less than the cumulative
annual distribution-related fee on Class B shares and less than the initial
sales charge plus the cumulative annual distribution-related fee on Class C
shares.
If you qualify for a reduced sales charge on Class A shares, it may be more
advantageous for you to purchase Class A shares over either Class B or Class C
shares regardless of how long you intend to hold your investment. However,
unlike Class B shares, you would not have all of your money invested initially
because the sales charge on Class A shares is deducted at the time of purchase.
If you do not qualify for a reduced sales charge on Class A shares and you
purchase Class C shares, you would have to hold your investment for more than 3
years for the higher cumulative annual distribution-related fee on the Class C
shares plus the 1% initial sales charge to exceed the initial sales charge plus
cumulative annual distribution-related fees on Class A shares. This does not
take into account the time value of money, which further reduces the impact of
the higher Class C distribution-related fee on the investment, fluctuations in
NAV, the effect of the return on the investment over this period of time or
redemptions when the CDSC is applicable.
Global Limited Maturity and Intermediate Global Income Funds
If you intend to hold your investment in the Fund for less than 2 years and
do not qualify for a reduced sales charge on Class A shares, since Class A
shares are subject to a maximum initial sales charge of 3% and Class B shares
are subject to a CDSC of 3% which declines to zero over a 4 year period, you
should consider purchasing Class C shares over either Class A or Class B shares.
If you intend to hold your investment for more than 2 years, but less than 3
years, you may consider purchasing Class B or Class C shares because: (i) the
contingent-deferred sales load plus the cumulative annual distribution-related
fee on Class B shares; and (ii) the maximum 1% initial sales charge plus the
cumulative annual distribution-related fee on Class C shares would be lower than
the maximum 3% initial sales charge plus the cumulative annual
distribution-related fee on Class A shares. In addition, more of your money
would be invested initially in the case of Class C shares, because of the
relatively low initial sales charge, and all of your money would be invested
initially in the case of Class B shares, which are sold at NAV.
If you intend to hold your investment for more than 3 years, but less than 4
years, you may consider purchasing Class A shares because the maximum 3% initial
sales charge plus the cumulative annual distribution-related fee on Class A
shares would be lower than: (i) the contingent-deferred sales charge plus the
cumulative annual distribution-related fee on Class B shares; and (ii) the
maximum 1% initial sales charge plus the cumulative annual distribution-related
fee on Class C shares.
If you intend to hold your investment for more than 4 years, but less than 5
years, you may consider purchasing Class A or Class B shares because the maximum
3% initial sales charge plus the cumulative annual distribution-related fee on
Class A shares and the cumulative annual distribution-related fee on Class B
shares
<PAGE>
would be less than the maximum 1% initial sales charge plus the cumulative
annual distribution-related fee on Class C shares.
If you intend to hold your investment for longer than 5 years, you should
consider purchasing Class A shares over either Class B or Class C shares. This
is because the maximum sales charge plus the cumulative annual
distribution-related fee on Class A shares would be less than the cumulative
annual distribution-related fee on Class B shares and less than the initial
sales charge plus the cumulative annual distribution-related fee on Class C
shares.
If you qualify for a reduced sales charge on Class A shares, it may be more
advantageous for you to purchase Class A shares over either Class B or Class C
shares regardless of how long you intend to hold your investment. However,
unlike Class B shares, you would not have all of your money invested initially
because the sales charge on Class A shares is deducted at the time of purchase.
If you do not qualify for a reduced sales charge on Class A shares and you
purchase Class C shares, you would have to hold your investment for more than 3
years for the higher cumulative annual distribution-related fee on the Class C
shares plus the 1% initial sales charge to exceed the initial sales charge plus
cumulative annual distribution-related fee on Class A shares. This does not take
into account the time value of money, which further reduces the impact of the
higher Class C distribution-related fee on the investment, fluctuations in NAV,
the effect of the return on the investment over this period of time or
redemptions when the CDSC is applicable.
<PAGE>
Listed below are the names of the Prudential Mutual Funds and the dates of
the Prospectuses to which this supplement relates.
<TABLE>
<CAPTION>
Name of Fund Prospectus Date
- ---------------------------------------------- ----------------------------------------------
<S> <C>
Global Utility Fund, Inc. December 2, 1997
Nicholas-Applegate Fund, Inc. March 4, 1998
Prudential Balanced Fund September 29, 1998
Prudential California Municipal Fund
California Income Series October 30, 1997
California Income Series October 30, 1997 (Revised as of June 1, 1998)
California Series October 30, 1997
Prudential Developing Markets Fund
Prudential Developing Markets Equity Fund June 26, 1998
Prudential Latin America Equity Fund June 26, 1998
Prudential Distressed Securities Fund, Inc. January 29, 1998
Prudential Diversified Bond Fund, Inc. March 4, 1998
Prudential Diversified Bond Fund, Inc. March 4, 1998 (Revised as of June 1, 1998)
Prudential Emerging Growth Fund, Inc. December 30, 1997
Prudential Emerging Growth Fund, Inc. December 30, 1997 (Revised as of October 14, 1998)
Prudential Equity Fund, Inc. February 27, 1998
Prudential Equity Fund, Inc. February 27, 1998 (Revised as of June 1, 1998)
Prudential Equity Income Fund, Inc. December 30, 1997
Prudential Equity Income Fund, Inc. December 30, 1997 (Revised as of June 1, 1998)
Prudential Europe Growth Fund, Inc. July 1, 1998
Prudential Europe Growth Fund, Inc. July 1, 1998 (Revised as of October 14, 1998)
Prudential Global Genesis Fund, Inc. July 31, 1998
Prudential Global Limited Maturity Fund, Inc. December 30, 1997
Prudential Government Income Fund, Inc. April 30, 1998
Prudential High Yield Fund, Inc. March 3, 1998
Prudential High Yield Fund, Inc. March 3, 1998 (Revised as of June 1, 1998)
Prudential High Yield Total Return Fund, Inc. March 16, 1998
Prudential High Yield Total Return Fund, Inc. March 16, 1998 (Revised as of June 1, 1998)
Prudential Intermediate Global Income Fund,
Inc. March 4, 1998
Prudential International Bond Fund, Inc. March 4, 1998
Prudential Mid-Cap Value Fund May 7, 1998
Prudential Mortgage Income Fund, Inc. March 3, 1998
Prudential Municipal Bond Fund July 1, 1998
Prudential Municipal Series Fund
Florida Series October 30, 1997
Maryland Series October 30, 1997
Massachusetts Series October 30, 1997
Michigan Series October 30, 1997
New Jersey Series October 30, 1997
New York Series October 30, 1997
North Carolina Series October 30, 1997
Ohio Series October 30, 1997
Pennsylvania Series October 30, 1997
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Name of Fund Prospectus Date
- ---------------------------------------------- ----------------------------------------------
<S> <C>
Prudential National Municipals Fund, Inc. March 4, 1998
Prudential Natural Resources Fund, Inc. July 31, 1998
Prudential Pacific Growth Fund, Inc. December 31, 1997
Prudential Real Estate Securities Fund March 20, 1998
Prudential Real Estate Securities Fund March 20, 1998 (Revised as of June 1, 1998)
Prudential Small-Cap Quantum Fund, Inc. June 26, 1998
Prudential Small Company Value Fund, Inc. December 2, 1997
Prudential Small Company Value Fund, Inc. December 2, 1997 (Revised as of October 14, 1998)
Prudential Structured Maturity Fund, Inc. March 4, 1998
Prudential Utility Fund, Inc. March 3, 1998
Prudential Utility Fund, Inc. March 3, 1998 (Revised as of June 1, 1998)
Prudential World Fund, Inc.
Global Series January 7, 1998
Global Series January 7, 1998 (Revised as of June 1, 1998)
International Stock Series January 7, 1998
International Stock Series January 7, 1998 (Revised as of June 1, 1998)
Prudential 20/20 Focus Fund May 22, 1998
Prudential 20/20 Focus Fund May 22, 1998 (Revised as of October 14, 1998)
The Global Total Return Fund, Inc. March 4, 1998
The Global Total Return Fund, Inc. March 4, 1998 (Revised as of June 1, 1998)
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund August 6, 1998
Prudential Jennison Growth Fund August 6, 1998
Prudential Jennison Growth & Income Fund August 6, 1998
</TABLE>
MF980C-7
