<PAGE>
Prudential Mutual Funds
Supplement dated January 2, 1998
The following information supplements the Statement of Additional
Information of each of the Funds listed below.
SHAREHOLDER INVESTMENT ACCOUNT--
TAX-DEFERRED RETIREMENT ACCOUNTS
Individual Retirement Accounts. An Individual retirement account (IRA)
permits the deferral of federal income tax on income earned in the account until
the earnings are withdrawn. The following chart represents a comparison of the
earnings in a personal savings account with those in an IRA, assuming a $2,000
annual contribution, an 8% rate of return and a 39.6% federal income tax bracket
and shows how much more retirement income can accumulate within an IRA as
opposed to a taxable individual savings account.
Tax-Deferred Compounding1
<TABLE>
<CAPTION>
Contributions Personal
Made Over Savings IRA
------------------------ ---------- ---------
<S> <C> <C>
10 years................ $ 26,165 $ 31,291
15 years................ 44,675 58,649
20 years................ 68,109 98,846
25 years................ 97,780 157,909
30 years................ 135,346 244,692
</TABLE>
- ---------------
1 The chart is for illustrative purposes only and does not represent the
performance of the Fund or any specific investment. It shows taxable versus
tax-deferred compounding for the periods and on the terms indicated. Earnings in
a traditional IRA account will be subject to tax when withdrawn from the
account. Distributions from a Roth IRA which meet the conditions required under
the Internal Revenue Code will not be subject to tax upon withdrawal from the
account.
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
------------ ---------------
Cash Accumulation Trust
National Money Market Fund December 22, 1997
Liquid Assets Fund December 22, 1997
The BlackRock Government Income Trust August 29, 1997
The Global Total Return Fund, Inc. February 28, 1997
Command Government Fund August 28, 1997
Command Money Fund August 28, 1997
Command Tax-Free Fund August 28, 1997
Global Utility Fund, Inc. December 2, 1997
Nicholas-Applegate Fund, Inc. March 4, 1997
Prudential Balanced Fund November 25, 1997
Prudential Distressed Securities Fund, Inc. January 29, 1997
<PAGE>
Name of Fund Prospectus Date
------------ ---------------
Prudential Diversified Bond Fund, Inc. March 25, 1997
Prudential Dryden Fund
Prudential Bond Market Index Fund June 18, 1997
Prudential Europe Index Fund June 18, 1997
Prudential Pacific Index Fund June 18, 1997
Prudential Small-Cap Index Fund June 18, 1997
Prudential Stock Index Fund June 18, 1997
Prudential Emerging Growth Fund, Inc. December 30, 1997
Prudential Equity Fund, Inc. March 5, 1997
Prudential Equity Income Fund December 30, 1997
Prudential Europe Growth Fund, Inc. July 1, 1997
Prudential Global Genesis Fund, Inc. July 30, 1997
Prudential Global Limited Maturity Fund, Inc. December 30, 1997
Prudential Government Income Fund, Inc. May 1, 1997
Prudential Government Securities Trust
(Short-Intermediate Series) February 3, 1997
(Money Market Series) February 3, 1997
(U.S. Treasury Money Market Series) February 3, 1997
Prudential High Yield Fund, Inc. March 6, 1997
Prudential Institutional Liquidity Portfolio, Inc. July 9, 1997
Prudential Intermediate Global Income Fund, Inc. February 28, 1997
Prudential International Bond Fund, Inc. August 8, 1997
Prudential Jennison Series Fund, Inc.
(Prudential Jennison Growth Fund) January 13, 1997
(Prudential Jennison Growth and Income Fund) January 13, 1997
Prudential MoneyMart Assets, Inc. February 28, 1997
Prudential Mortgage Income Fund, Inc. March 5, 1997
Prudential Multi-Sector Fund, Inc. June 30, 1997
Prudential Natural Resources Fund, Inc. July 30, 1997
Prudential Small-Cap Quantum Fund, Inc. September 25, 1997
Prudential Small Company Value Fund, Inc. December 2, 1997
Prudential Special Money Market Fund, Inc. August 27, 1997
Prudential Structured Maturity Fund, Inc. March 3, 1997
Prudential Tax-Free Money Fund, Inc. February 28, 1997
Prudential Utility Fund, Inc. March 5, 1997
The Target Portfolio Trust April 7, 1997
MF980C-1
