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PRUDENTIAL MUTUAL FUNDS
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Supplement Dated November 3, 2000
The following information supplements the Prospectus of each of the Funds
listed below.
SPECIAL MEETING OF SHAREHOLDERS
On August 22, 2000, the Board of Trustees approved the proposals summarized
below. The proposals will be submitted for approval by shareholders of the Funds
(or their respective series) at a Special Meeting of Shareholders which is
currently anticipated to be held in the first half of 2001.
ELECTION OF TRUSTEES
ALL FUNDS. The Board of Trustees approved a proposal to elect Eugene C.
Dorsey, Delayne Dedrick Gold, Robert F. Gunia, Thomas T. Mooney, Stephen P.
Munn, David R. Odenath, Jr., Richard A. Redeker, John R. Strangfeld, Jr.,
Nancy H. Teeters and Louis A. Weil, as Trustees of each of the Funds.
HOW THE FUND IS MANAGED--MANAGER
ALL FUNDS. Prudential Investments Fund Management LLC (PIFM or the Manager)
manages each Fund's investment operations and is responsible for supervising the
Fund's subadviser, The Prudential Investment Corporation (Prudential
Investments). The Board of Trustees of each Fund approved an amendment to the
management contract with PIFM to provide PIFM with flexibility to select
additional investment advisers and allocate Fund assets to them for management.
Specifically, if shareholders approve the amended management contract, PIFM will
have the authority (1) to hire one or more additional investment advisers for a
Fund, subject to Board approval, and (2) to allocate and reallocate Fund assets
among such advisers and Prudential Investments.
MF2000C10
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The Board also considered an amendment to the investment advisory contract
with Prudential Investments, which will be submitted to shareholders for their
approval. The proposed amendment provides that PIFM may increase or decrease,
without limitation, the allocation of Fund assets under the management of
Prudential Investments, and that Prudential Investments will be compensated only
with respect to assets allocated to its management.
The proposal to allow the Fund to employ other investment advisers without a
shareholder vote is subject to certain conditions. The first condition is that
Fund shareholders must approve this grant of authority to the Board of Trustees.
Second, this proposal may be implemented only if the Fund is permitted to rely
on an exemptive order previously issued by the Securities and Exchange
Commission or receives a new exemptive order authorizing the arrangement.
Subject to satisfaction of these two conditions, which cannot be assured, the
Manager would be permitted, with Board approval but without further shareholder
approval, to employ new investment advisers for a Fund, change the terms of a
Fund's investment advisory agreements or enter into new investment advisory
agreements with existing advisers. Shareholders would be notified of any changes
in advisers or of any material amendments to advisory agreements. Shareholders
of a Fund would continue to have the right to terminate an investment advisory
agreement for a Fund at any time by a vote of the majority of the outstanding
voting securities of the Fund.
BORROWING
ALL FUNDS. If approved by shareholders, each applicable Fund's investment
restriction regarding borrowing would be modified to allow borrowing of up to
33 1/3% of a Fund's total assets and to delete the requirement that such
borrowing can be made only from banks.
INVESTMENT IN SECURITIES OF OTHER INVESTMENT COMPANIES
ALL FUNDS. If approved by shareholders, each applicable Fund's investment
restriction regarding the purchase of shares of investment companies would be
modified to permit each Fund to invest in the shares of other registered
investment companies as permitted under applicable law or by an order of the
Commission. To the extent that a Fund does
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invest in securities of other investment companies, shareholders may be subject
to duplicate management and advisory fees.
SECURITIES LENDING
ALL FUNDS. If approved by shareholders, each applicable Fund's investment
restriction regarding securities lending would be modified to permit each Fund
to make loans of portfolio securities in amounts up to 33 1/3% of the Fund's
total assets and as permitted by an order of the Commission.
OTHER MATTERS
Shareholders of Connecticut Money Market Series, Massachusetts Series,
Massachusetts Money Market Series, North Carolina Series and Ohio Series, each a
series of Prudential Municipal Series Fund, are expected to vote on a proposal
to merge their Series into another Prudential mutual fund prior to the
shareholder meetings described above. If shareholders of these Series do not
approve the proposed merger, shareholders of those Series will likely be
solicited to vote on the matters described above under "SPECIAL MEETING OF
SHAREHOLDERS."
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Listed below are the names of the Prudential Mutual Funds and the dates of the
Prospectus to which this Supplement relates.
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NAME OF FUND PROSPECTUS DATE
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PRUDENTIAL CALIFORNIA MUNICIPAL FUND
California Series November 3, 2000
California Income Series November 3, 2000
California Money Market Series November 3, 2000
PRUDENTIAL MUNICIPAL SERIES FUND
Connecticut Money Market Series November 3, 2000
Florida Series November 3, 2000
Massachusetts Series November 3, 2000
Massachusetts Money Market Series November 3, 2000
New Jersey Series November 3, 2000
New Jersey Money Market Series November 3, 2000
New York Series November 3, 2000
New York Money Market Series November 3, 2000
North Carolina Series November 3, 2000
Ohio Series November 3, 2000
Pennsylvania Series November 3, 2000
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