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Prudential Municipal Series Fund
(Maryland Series)
(Michigan Series)
Supplement Dated August 27, 1998
to Prospectus Dated October 30, 1997
The Trustees of Prudential Municipal Series Fund (the Fund) have recently
approved a proposal to exchange the assets and liabilities of the Maryland
Series and Michigan Series (each, a Series, and collectively, the Series) of
the Fund for shares of Prudential National Municipals Fund, Inc. (National
Municipals Fund). Class A, Class B and Class C shares of the Series would be
exchanged at relative net asset value for Class A shares of National
Municipals Fund.
The transfer has been approved by the Trustees of the Fund and by the Board
of Directors of National Municipals Fund and is subject to approval by the
shareholders of each of the Series. It is anticipated that a proxy
statement/prospectus relating to the transaction will be mailed to each Series'
shareholders in late October 1998.
Under the terms of the proposal, shareholders of the Series would become
shareholders of National Municipals Fund. No sales charge would be imposed on
the proposed transfer. The Fund anticipates obtaining an opinion of its counsel
that the transaction would be a tax-free reorganization under the Internal
Revenue Code and therefore no gain or loss for Federal income tax purposes
would be recognized by shareholders of the Series.
Effective immediately, the Fund will no longer accept orders to purchase or
exchange into shares of the Series, except for purchases by certain Retirement
and Employee Plans (excluding IRA accounts). Existing shareholders may continue
to acquire shares through dividend reinvestment. The current exchange privilege
of obtaining shares of other Prudential Mutual Funds and the current redemption
privilege will remain in effect until the transaction is consummated.
National Municipals Funds' investment objective is to seek a high level of
current income exempt from federal income taxes.
MF980C-
