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Prudential Mutual Funds
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PROSPECTUS SUPPLEMENT DATED SEPTEMBER 20, 1999
The following information supplements the Section entitled 'How the Fund is
Managed--Portfolio Manager' in the Prospectus:
Prudential Investments' Fixed Income Group manages more than $135 billion for
Prudential's retail investors, institutional investors, and policyholders.
Senior Managing Directors James J. Sullivan and Jack W. Gaston head the Group,
which is organized into teams specializing in different market sectors.
Top-down, broad investment decisions are made by the Fixed Income Policy
Committee, whereas bottom-up security selection is made by the sector teams.
Mr. Sullivan has overall responsibility for overseeing portfolio management
and credit research. Prior to joining Prudential Investments in 1998, he was a
managing director in Prudential's Capital Management Group, where he oversaw
portfolio management and credit research for Prudential's General Account and
subsidiary fixed-income portfolios. He has more than 16 years of experience in
risk management, arbitrage trading, and corporate bond investing.
Mr. Gaston has overall responsibility for overseeing quantitative research
and risk management. Prior to this appointment in 1999, he was senior managing
director of the Capital Management Group where he was responsible for the
investment performance and risk management for Prudential's General Account and
subsidiary fixed-income portfolios. He has more than 20 years of experience in
investment management, including extensive experience applying quantitative
techniques to portfolio management.
The Fixed Income Investment Policy Committee is comprised of key senior
investment managers. Members include seven sector team leaders, the chief
investment strategist, and the head of risk management. The Committee uses a
top-down approach to investment strategy, asset allocation, and general risk
management, identifying sectors in which to invest.
The Municipal Bond Team, headed by Evan Lamp, is primarily responsible for
overseeing the day-to-day management of the Fund.
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This Team uses a bottom-up approach, which focuses on individual securities,
while staying within the guidelines of the Investment Policy Committee and the
Fund's investment restrictions and policies. In addition, the Credit Research
team of analysts supports the sector teams using bottom-up fundamentals, as well
as economic and industry trends. Other sector teams may contribute to securities
selection when appropriate.
The following are the fixed income sector teams and the corresponding team
leaders: (Assets under management are as of June 30, 1999.)
Municipal Bonds
Assets Under Management: $5.6 billion.
Team Leader: Evan Lamp. General Investment Experience: 7 years.
Portfolio Managers: 5. Average General Investment Experience: 10 years, which
includes team members with significant mutual fund experience.
Sector: City, state and local government securities.
Investment Approach: Focus is on identifying spread, credit quality and
liquidity trends to capitalize on changing opportunities in the municipal
market. Ultimately, they seek the highest expected return with the least risk.
Money Markets
Assets Under Management: $41.8 billion.
Team Leader: Joseph Tully. General Investment Experience: 16 years
Portfolio Managers: 8. Average General Investment Experience: 12 years, which
includes team members with significant mutual fund experience.
Sector: High-quality short-term securities, including both taxable and
tax-exempt instruments.
Investment Approach: Focus is on safety of principal, liquidity and controlled
risk.
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Listed below are the names of the Prudential mutual funds and the dates of
the prospectuses to which this supplement relates.
Name of Fund Prospectus Date
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Prudential National Municipals Fund,
Inc. March 3, 1999
Prudential Municipal Bond Fund June 30, 1999
Insured Series
High Income Series
Prudential California Municipal Fund
California Series November 2, 1998
California Income Series November 2, 1998
Prudential Municipal Series Fund
Florida Series November 2, 1998
Massachusetts Series November 2, 1998
New Jersey Series November 2, 1998
New York Series November 2, 1998
North Carolina Series November 2, 1998
Ohio Series November 2, 1998
Pennsylvania Series November 2, 1998
