<PAGE> PAGE 1
000 B000000 12/31/98
000 C000000 0000080946
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001 A000000 PRUDENTIAL'S GIBRALTAR FUND, INC.
001 B000000 811-1660
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002 A000000 100 MULBERRY STREET,GC3, 9TH FLOOR
002 B000000 NEWARK
002 C000000 NJ
002 D010000 07102
002 D020000 4077
003 000000 N
004 000000 N
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008 A000001 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
008 B000001 A
008 C000001 801-12484
008 D010001 NEWARK
008 D020001 NJ
008 D030001 07102
008 D040001 3777
008 A000002 THE PRUDENTIAL INVESTMENT CORPORATION
008 B000002 S
008 C000002 801-22808
008 D010002 NEWARK
008 D020002 NJ
008 D030002 07102
008 D040002 4077
011 A000001 PRUDENTIAL INVESTMENT MANAGEMENT SERVICES LLC
011 B000001 8-36540
011 C010001 NEWARK
011 C020001 NJ
<PAGE> PAGE 2
011 C030001 07102
011 C040001 2992
012 A000001 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
012 B000001 84-0000000
012 C010001 NEWARK
012 C020001 NJ
012 C030001 07102
012 C040001 3777
013 A000001 PRICEWATERHOUSECOOPERS LLP
013 B010001 NY
013 B020001 NY
013 B030001 10036
014 A000001 PRUDENTIAL SECURITIES INC.
014 B000001 8-27154
014 A000002 PRUCO SECURITIES CORP.
014 B000002 8-16402
014 A000003 PRUDENTIAL ASSET SALES & SYNDICATIONS, INC.
014 B000003 8-32470
014 A000004 THE PRUDENTIAL INSURANCE COMPANY OF AMERICA
014 B000004 8-13881
015 A000001 INVESTORS FIDUCIARY TRUST COMPANY
015 B000001 C
015 C010001 KANSAS CITY
015 C020001 MO
015 C030001 64105
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 103
019 C000000 PRUDENTIAL
020 A000001 MONTGOMERY SECURITIES, INC.
020 B000001 94-1701676
020 C000001 70
020 A000002 GOLDMAN, SACHS & CO.
020 B000002 13-5108880
020 C000002 55
020 A000003 BEAR, STEARNS & CO., INC.
020 B000003 13-3604093
020 C000003 49
020 A000004 BERNSTEIN (SANFORD C.) & CO., INC.
020 B000004 13-2625874
020 C000004 44
020 A000005 LEHMAN BROTHERS, INC.
020 B000005 13-2501865
020 C000005 40
020 A000006 ING BARING FURMAN SELTZ LLC
020 C000006 34
020 A000007 WILLIAM BLAIR & COMPANY
020 C000007 30
020 A000008 SOUNDVIEW FINANCIAL GROUP, INC.
020 B000008 13-2998183
<PAGE> PAGE 3
020 C000008 30
020 A000009 DONALDSON, LUFKIN, JENRETTE SECURITIES CORP.
020 B000009 13-2741729
020 C000009 28
020 A000010 CIBC OPPENHEIMER
020 B000010 13-2798343
020 C000010 28
021 000000 787
022 A000001 LEHMAN BROTHERS, INC.
022 B000001 13-2501865
022 C000001 348393
022 D000001 6824
022 A000002 GOLDMAN, SACHS & CO.
022 B000002 13-5108880
022 C000002 323974
022 D000002 15893
022 A000003 MORGAN (J.P.) SECURITIES INC.
022 B000003 13-3224016
022 C000003 261314
022 D000003 1791
022 A000004 FIRST CHICAGO CAPITAL MARKETS, INC.
022 B000004 36-3595942
022 C000004 78093
022 D000004 0
022 A000005 CHASE SECURITIES INC.
022 B000005 13-3112953
022 C000005 68799
022 D000005 0
022 A000006 CREDIT SUISSE FIRST BOSTON CORP.
022 B000006 13-5659485
022 C000006 45014
022 D000006 18549
022 A000007 DEUTSCHE BANK SECURITIES INC.
022 B000007 13-2944988
022 C000007 40940
022 D000007 0
022 A000008 MERRILL LYNCH, PIERCE, FENNER & SMITH, INC.
022 B000008 13-5674085
022 C000008 27942
022 D000008 2363
022 A000009 MORGAN STANLEY DEAN WITTER
022 B000009 13-2655998
022 C000009 15163
022 D000009 4073
022 A000010 CITICORP SECURITIES, INC.
022 B000010 13-3187336
022 C000010 18856
022 D000010 0
023 C000000 2296386
023 D000000 77096
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<PAGE> PAGE 4
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SIGNATURE GRACE C. TORRES
TITLE TREASURER
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000080946
<NAME> PRUDENTIAL GIBRALTAR FUND
<SERIES>
<NUMBER> 001
<NAME> PRUDENTIAL GIBRALTAR FUND
<S> <C>
<PERIOD-TYPE> 'YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<INVESTMENTS-AT-COST> 271,821,175
<INVESTMENTS-AT-VALUE> 358,629,922
<RECEIVABLES> 5,543,222
<ASSETS-OTHER> 1,230
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 364,174,374
<PAYABLE-FOR-SECURITIES> 1,513,909
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 153,751
<TOTAL-LIABILITIES> 1,667,660
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 269,322,550
<SHARES-COMMON-STOCK> 29,156,060
<SHARES-COMMON-PRIOR> 27,793,196
<ACCUMULATED-NII-CURRENT> (22,832)
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 6,398,249
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 86,808,747
<NET-ASSETS> 362,506,714
<DIVIDEND-INCOME> 2,871,893
<INTEREST-INCOME> 668,586
<OTHER-INCOME> 0
<EXPENSES-NET> 413,487
<NET-INVESTMENT-INCOME> 3,126,992
<REALIZED-GAINS-CURRENT> 33,966,363
<APPREC-INCREASE-CURRENT> 41,144,598
<NET-CHANGE-FROM-OPS> 78,237,953
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (3,149,824)
<DISTRIBUTIONS-OF-GAINS> (30,374,602)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> (40,416,358)
<SHARES-REINVESTED> 32,290,798
<NET-CHANGE-IN-ASSETS> 36,587,967
<ACCUMULATED-NII-PRIOR> 1,846,165
<ACCUMULATED-GAINS-PRIOR> 30,900,491
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 404,800
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 412,674
<AVERAGE-NET-ASSETS> 0
<PER-SHARE-NAV-BEGIN> 10.95
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 2.61
<PER-SHARE-DIVIDEND> (0.12)
<PER-SHARE-DISTRIBUTIONS> (1.13)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.43
<EXPENSE-RATIO> 0.13
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
</TABLE>
EXHIBIT 77J
Reclassification of Capital Accounts: Prudential's
Gibraltar Fund,
Inc. accounts for and reports distributions to shareholders
in
accordance with the American Institute of Certified Public
Accountant's
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 undistributed net investment
income by
$103,925 and decrease net realized gains by $103,925 due to
recharacterization of distributions. Such reclassification
had no
effect on net assets, results of operations, or net asset
value per
share.
e:\flh\gib\10f3.doc
For the fiscal period ended (s) 12/31/98
File number 811-01660
SUB-ITEM 77-0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Conoco
2. Date of Purchase
10/21/98
3. Number of Securities Purchased
100,870
4. Dollar Amount of Purchase
$2,320,700
5. Price Per Unit
$23.00
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Morgan Stanley
7. Other Members of the Underwriting Syndicate
See Exhibit A
EXHIBIT A
UNDERWRITER
(U.S.)
Blaylock & Partners L.P.
BT Alex Brown Incorporated
Chatsworth Securities LLC
CIBC Oppenheimer Corp.
Edward D. Jones & Co., L.P.
Fahnestock & Co. Inc.
Guzman & Company
Howard, Weill, Lebouisse, Friedrichs Incorporated
ING Baring Furman Selz LLC
Jefferies & Co. Inc.
Morgan Stanley & Co. Incorporated
Muriel Siebert & Co., Inc.
NationsBanc Montgomery Securities LLC
Nesbitt Burns Security Inc.
Ormes Capital Markets, Inc.
Petrie Parkman & Co.
Raymond James & Associates, Inc.
Sanders Morris Mundy Inc.
Star Securities, Inc.
J.P. Morgan Securities Inc.
Goldman Sachs & Co.
Salomon Smith Barney Inc.
ABN Amro Incorporated
Bear, Stearns & Co. Inc.
Chase Securities Inc.
Credit Suisse First Boston Corporation
Deutsche Bank Securities Inc.
Donaldson Lufkin & Jenrette Securities Corporation
A. G. Edwards & Sons Inc.
Merril Lynch, Pierce, Fenner & Smith Incorporated
PaineWebber Incorporated
Prudential Securities Incorporated
Robert W. Baird & Co. Inc.
Sanford C. Bernstein & Co. Inc.
Schroder & Co. Inc.
Legg Mason Wood Walker, Incorporated
McDonald & Co. Securities Inc.
Neuberger & Berman LLC
The Robinson-Humphrey Company, LLC
Warburg Dillon Read LLC
Wheat First Securities, Inc.
(International)
Morgan Stanley & Co. International Limited
Credit Suisse First Boston (Europe) Limited
Goldman Sachs International
Merrill Lynch International
J.P. Morgan Securities Ltd.
Salomon Brothers International Limited
BT Alex. Brown International, a division of Bankers Trust
International PLC
J. Henry Schroder & Co. Limited
ABN AMRO Rothschild
Cazenove & Co.
Credit Lyonnais Securities
Daiwa Europe Limited
Deutsche AG London
HSBC Investment Bank Plc
Mediobanca-Banca di Credito Finanziario S.p.A.
UBS AG
Westdeutsche Landesbank Girozentrale
ING Bank N.V.
Societe Generale
e:\flh\gib\10f3.doc
For the fiscal period ended (s) 12/31/98
File number 811-01660
SUB-ITEM 77-0
EXHIBITS
Transactions Effected Pursuant to Rule 10f-3
1. Name of Issuer
Fox Entertainment
2. Date of Purchase
11/10/98
3. Number of Securities Purchased
101,600
4. Dollar Amount of Purchase
$2,286,000
5. Price Per Unit
$22.50
6. Name(s) of Underwriter(s) or Dealer(s)
From whom Purchased
Merrill
7. Other Members of the Underwriting Syndicate
See Exhibit A
EXHIBIT A
UNDERWRITER
Allen & Company Incorporated
Blaylock & Partners L.P.
BT Alex Brown Incorporated
Credit Lyonnais Securities (USA) Inc.
Guzman & Company
ING Baring Furman Selz LLC
Lazard Frere & C0. LLC
Lehman Brothers Inc.
Merrill Lynch, Pierce, Fenner & Smith Incorporated
Morgan Stanley & Co. Incorporated
NationsBanc Montgomery Securities LLC
TD Securities (USA) Inc.
Raymond James & Associates, Inc.
J.P. Morgan Securities Inc.
Goldman Sachs & Co.
Salomon Smith Barney Inc.
ABN AMRO Incorporated
Bear, Stearns & Co. Inc.
Chatsworth Securities LLC
Credit Suisse First Boston Corporation
Crowell, Weedon & Co.
Dain Roscher Incorporated
Doley Securities, Inc.
Gerard Klauer Mattispn & Co. Inc.
Interstate/Johnson Lane Corporation
Janney Montgomery Scott Inc.
May, Davis Group Inc.
Donaldson Lufkin & Jenrette Securities Corporation
A. G. Edwards & Sons Inc.
PaineWebber Incorporated
Prudential Securities Incorporated
Pryor, McClendon, Counts & Co.
Sands Brothers & Co. Ltd.
Tucker Anthony Incorporated
Utendahl Capital Partners, L.P.
Sanford C. Bernstein & Co. Inc.
Schroder & Co. Inc.
Legg Mason Wood Walker, Incorporated
Neuberger & Berman LLC
The Robinson-Humphrey Company, LLC
Warburg Dillon Read LLC
Wasserstein Perella Securities, Inc.
Wheat First Securities, Inc.
(International)
Morgan Stanley & Co. International Limited
Goldman Sachs International
Merrill Lynch International
Allen & Company Incorporated
J.P. Morgan Securities Ltd.
Bear Sterns International
Salomon Brothers International Limited
Donaldson, Lufkin & Jenrette International
NationsBanc Montgomery Securities LLC
To the Shareholders and Board of Directors of
Prudential's Gibraltar Fund, Inc.
Report of Independent Accountants
To the Shareholders and Board of Directors of
Prudential's Gibraltar Fund, Inc.
In planning and performing our audit of the financial
statements of Prudential's Gibraltar Fund, Inc. (the "Fund")
for the year ended December 31, 1998, we considered its
internal control, including control activities for safeguarding
securities, in order to determine our auditing procedures for
the purpose of expressing our opinion on the financial
statements and to comply with the requirements of Form N-SAR,
not to provide assurance on internal control.
The management of the Fund is responsible for establishing and
maintaining internal control. In fulfilling this
responsibility, estimates and judgments by management are
required to assess the expected benefits and related costs of
controls. Generally, controls that are relevant to an audit
pertain to the entity's objective of preparing financial
statements for external purposes that are fairly presented in
conformity with generally accepted accounting principles.
Those controls include the safeguarding of assets against
unauthorized acquisition, use or disposition.
Because of inherent limitations in internal control, errors or
fraud may occur and not be detected. Also, projection of any
evaluation of internal control to future periods is subject to
the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and
operation may deteriorate.
Our consideration of internal control would not necessarily
disclose all matters in internal control that might be material
weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness
is a condition in which the design or operation of one or more
of the internal control components does not reduce to a
relatively low level the risk that misstatements caused by
error or fraud in amounts that would be material in relation to
the financial statements being audited may occur and not be
detected within a timely period by employees in the normal
course of performing their assigned functions. However, we
noted no matters involving internal control and its operation,
including controls for safeguarding securities, that we
consider to be material weaknesses as defined above as of
December 31, 1998.
This report is intended solely for the information and use of
management, the Board of Directors of the Fund and the
Securities and Exchange Commission.
PricewaterhouseCoopers LLP
New York, New York
February 16, 1999
e:\flh\gib\nsar.GT
This report is signed on behalf of the Registrant in the
City of Newark and State of New Jersey on the 26h day of
February, 1999.
Prudential's Gibraltar Fund, Inc.
File No. 811-1660
Witness: /s/Caren Cunningham By: /s/Grace Torres
Caren Cunningham Grace Torres
Secretary Treasurer
