<PAGE>
As filed with the Securities and Exchange Commission on April 17, 1997
Registration No. 333-25133
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
--------------
FORM N-14
REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 / /
PRE-EFFECTIVE AMENDMENT NO. 1
/X/
POST-EFFECTIVE AMENDMENT NO. / /
(Check appropriate box or boxes)
--------------
PRUDENTIAL ALLOCATION FUND
(Exact name of registrant as specified in charter)
GATEWAY CENTER THREE
NEWARK, NEW JERSEY 07102
(Address of Principal Executive Offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (201) 367-7530
S. JANE ROSE, ESQ.
GATEWAY CENTER THREE
NEWARK, NEW JERSEY 07102
(NAME AND ADDRESS OF AGENT FOR SERVICE)
APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:
AS SOON AS PRACTICABLE AFTER THE EFFECTIVE
DATE OF THE REGISTRATION STATEMENT.
IT IS PROPOSED THAT THIS FILING WILL BECOME EFFECTIVE ON MAY 17, 1997
PURSUANT TO RULE 488 UNDER THE SECURITIES ACT OF 1933 AS AMENDED.
NO FILING FEE IS REQUIRED BECAUSE, PURSUANT TO RULE 24f-2 UNDER THE
INVESTMENT COMPANY ACT OF 1940, REGISTRANT HAS PREVIOUSLY REGISTERED AN
INDEFINITE NUMBER OF SHARES OF BENEFICIAL INTEREST, PAR VALUE $.01 PER SHARE,
PURSUANT TO A REGISTRATION STATEMENT ON FORM N-1A (FILE NO. 33-12531). PURSUANT
TO RULE 429 UNDER THE SECURITIES ACT OF 1933, THE PROSPECTUS AND PROXY STATEMENT
RELATE TO SHARES PREVIOUSLY REGISTERED ON FORM N-1A (FILE NO. 33-12531). THE
REGISTRANT WILL FILE A NOTICE UNDER RULE 24f-2 FOR ITS FISCAL YEAR ENDING JULY
31, 1997 ON OR BEFORE SEPTEMBER 30, 1997.
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
CROSS REFERENCE SHEET
(AS REQUIRED BY RULE 481(a) UNDER THE SECURITIES ACT OF 1933)
<TABLE>
<CAPTION>
N-14 ITEM NO. PROSPECTUS/PROXY
AND CAPTION STATEMENT CAPTION
- ---------------------------------------------------- ----------------------------------------
<S> <C> <C> <C>
PART A
Item 1. Beginning of Registration Statement and
Outside Front Cover Page of
Prospectus.............................. Cover Page
Item 2. Beginning and Outside Back Cover Page of
Prospectus.............................. Table of Contents
Item 3. Fee Table, Synopsis Information and Risk
Factors................................. Synopsis; Principal Risk Factors
Item 4. Information about the Transaction....... Synopsis; The Proposed Transaction
Item 5. Information about the Registrant........ Synopsis; Information about the Balanced
Portfolio; Miscellaneous
Item 6. Information about the Company Being
Acquired................................ Synopsis; Information about the Strategy
Portfolio; Miscellaneous
Item 7. Voting Information...................... Synopsis; Voting Information
Item 8. Interest of Certain Persons and
Experts................................. Not Applicable
Item 9. Additional Information Required for
Reoffering by Persons Deemed to be
Underwriters............................ Not Applicable
PART B
STATEMENT OF ADDITIONAL
INFORMATION CAPTION
----------------------------------------
Item 10. Cover Page.............................. Cover Page
Item 11. Table of Contents....................... Cover Page
Item 12. Additional Information about the
Registrant.............................. Statement of Additional Information of
Prudential Allocation Fund dated
September 27, 1996; Semi-Annual Report
to Shareholders of Prudential Allocation
Fund (Balanced Portfolio) for the six
months ended January 31, 1997;
Semi-Annual Report to Shareholders of
Prudential Allocation Fund (Strategy
Portfolio) for the six months ended
January 31, 1997
Item 13. Additional Information about the Company
Being Acquired.......................... Not Applicable
Item 14. Financial Statements.................... Financial statements as noted in the
Statement of Additional Information
PART C
Information required to be included in Part C is set forth under the appropriate item,
so numbered, in Part C of this Registration Statement.
</TABLE>
<PAGE>
This Pre-Effective Amendment No. 1 is not intended to amend the Registration
Statement on Form N-14 of Prudential Allocation Fund filed on April 14, 1997
(File No. 333-25133), except as noted on the cover page hereof. The
Prospectus/Proxy Statement and Statement of Additional Information contained in
the Registration Statement on Form N-14 of Prudential Allocation Fund filed on
April 14, 1997 (File No. 333-25133) are incorporated by reference herein.
<PAGE>
PART C
OTHER INFORMATION
ITEM 15. INDEMNIFICATION.
As permitted by Section 17(h) and (i) of the Investment Company Act of 1940
(the 1940 Act) and pursuant to Article VI of the Registrant's By-Laws (Exhibit 2
to the Registration Statement), officers, Trustees, employees and agents of the
Registrant will not be liable to the Registrant, any shareholder, officer,
director, employee, agent or other person for any action or failure to act,
except for bad faith, willful misfeasance, gross negligence or reckless
disregard of duties, and those individuals may be indemnified against
liabilities in connection with the Registrant, subject to the same exceptions.
As permitted by Section 17(i) of the 1940 Act, pursuant to Section 10 of each
Distribution Agreement (Exhibit 7 to the Registration Statement), the
Distributor of the Registrant may be indemnified against liabilities which it
may incur, except liabilities arising from bad faith, gross negligence, willful
misfeasance or reckless disregard of duties.
Insofar as indemnification for liabilities arising under the Securities Act
of 1933 (Securities Act) may be permitted to Trustees, officers and controlling
persons of the Registrant pursuant to the foregoing provisions or otherwise, the
Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the
1940 Act and is, therefore, unenforceable. In the event that a claim for
indemnification against such liabilities (other than the payment by the
Registrant of expenses incurred or paid by a Trustee, officer, or controlling
person of the Registrant in connection with the successful defense of any
action, suit or proceeding) is asserted against the Registrant by such Trustee,
officer or controlling person in connection with the shares being registered,
the Registrant will, unless in the opinion of its counsel the matter has been
settled by controlling precedent, submit to a court of appropriate jurisdiction
the question whether such indemnification by it is against public policy as
expressed in the 1940 Act and will be governed by the final adjudication of such
issue.
The Registrant maintains an insurance policy insuring its officers and
Trustees against liabilities, and certain costs of defending claims against such
officers and Trustees, to the extent such officers and Trustees are not found to
have committed conduct constituting willful misfeasance, bad faith, gross
negligence or reckless disregard in the performance of their duties. The
insurance policy also insures the Registrant against the cost of indemnification
payments to officers and Trustees under certain circumstances.
Section 9 of the Management Agreement (Exhibit 6(a) to the Registration
Statement) and Section 4 of the Subadvisory Agreement (Exhibit 6(b) to the
Registration Statement) limit the liability of Prudential Mutual Fund
Management, Inc. (PMF) and The Prudential Investment Corporation (PIC),
respectively, to liabilities arising from willful misfeasance, bad faith or
gross negligence in the performance of their respective duties or from reckless
disregard by them of their respective obligations and duties under the
agreements.
The Registrant hereby undertakes that it will apply the indemnification
provisions of its By-Laws and the Distribution Agreement in a manner consistent
with Release No. 11330 of the Securities and Exchange Commission under the 1940
Act so long as the interpretation of Section 17(h) and 17(i) of such Act remain
in effect and are consistently applied.
ITEM 16. EXHIBITS.
1. (a) Amended and Restated Declaration of Trust of the Registrant.
Incorporated by reference to Exhibit No. 1(a) to Post-Effective Amendment
No. 13 to the Registration Statement on Form N-1A filed via EDGAR on
September 29, 1994 (File No. 33-12531).
(b) Amended Certificate of Designation. Incorporated by reference to Exhibit
No. 1(b) to Post-Effective Amendment No. 18 to the Registration Statement on
Form N-1A filed via EDGAR on September 27, 1996 (File No. 33-12531).
2. By-Laws of the Registrant. Incorporated by reference to Exhibit No. 2 to
Post-Effective Amendment No. 13 to the Registration Statement on Form N-1A
filed via EDGAR on September 29, 1994 (File No. 33-12531).
4. Plan of Reorganization, filed herewith as Appendix A to the Prospectus and
Proxy Statement.*
5. Instruments defining rights of shareholders. Incorporated by reference to
Exhibits 1 and 2.
6. (a) Management Agreement between the Registrant and Prudential Mutual Fund
Management. Incorporated by reference to Exhibit No. 6(a) to the
Registration Statement on Form N-14 filed via EDGAR on April 14, 1997 (File
No. 333-25133).
(b) Subadvisory Agreement between Prudential Mutual Fund Management, Inc.
and The Prudential Investment Corporation. Incorporated by reference to
Exhibit No. 6(b) to the Registration Statement on Form N-14 filed via EDGAR
on April 14, 1997 (File No. 333-25133).
C-1
<PAGE>
7. Restated Distribution Agreement for Class A, Class B, Class C and Class Z
shares. Incorporated by reference to Exhibit No. 6 to Post-Effective
Amendment No. 18 to the Registration Statement on Form N-1A filed via EDGAR
on September 27, 1996 (File No. 33-12531).
9. (a) Custodian Contract between the Registrant and State Street Bank and
Trust Company. Incorporated by reference to Exhibit No. 9(a) to the
Registration Statement on Form N-14 filed via EDGAR on April 14, 1997 (File
No. 333-25133).
(b) Amendment to Custodian Contract. Incorporated by reference to Exhibit
No. 9(b) to the Registration Statement on Form N-14 filed via EDGAR on April
14, 1997 (File No. 333-25133).
10. (a) Distribution and Service Plan for Class A shares. Incorporated by
reference to Exhibit No. 15(a) to Post-Effective Amendment No. 13 to the
Registration Statement on Form N-1A filed via EDGAR on September 29, 1994
(File No. 33-12531).
(b) Distribution and Service Plan for Class B shares. Incorporated by
reference to Exhibit No. 15(b) to Post-Effective Amendment No. 13 to the
Registration Statement on Form N-1A filed via EDGAR on September 29, 1994
(File No. 33-12531).
(c) Distribution and Service Plan for Class C shares. Incorporated by
reference to Exhibit No. 15(c) to Post-Effective Amendment No. 13 to the
Registration Statement on Form N-1A filed via EDGAR on September 29, 1994
(File No. 33-12531).
(d) Rule 18f-3 Plan. Incorporated by reference to Exhibit No. 18 to
Post-Effective Amendment No. 18 to the Registration Statement on Form N-1A
filed via EDGAR on September 27, 1996 (File No. 33-12531).
11. Opinion and Consent of Counsel. Incorporated by reference to Exhibit No. 11
to the Registration Statement on Form N-14 filed via EDGAR on April 14, 1997
(File No. 333-25133).
12. Tax Opinion of Counsel. Incorporated by reference to Exhibit No. 12 to the
Registration Statement on Form N-14 filed via EDGAR on April 14, 1997 (File
No. 333-25133).
14. Consent of Independent Accountants.*
17. (a) Proxy. Incorporated by reference to Exhibit No. 17(a) to the
Registration Statement on Form N-14 filed via EDGAR on April 14, 1997 (File
No. 333-25133).
(b) Copy of Registrant's declaration pursuant to Rule 24f-2 under the 1940
Act. Incorporated by reference to Exhibit No. 17(b) to the Registration
Statement on Form N-14 filed via EDGAR on April 14, 1997 (File No.
333-25133).
(c) Prospectus of the Registrant dated September 27, 1996. Incorporated by
reference to Exhibit No. 17(c) to the Registration Statement on Form N-14
filed via EDGAR on April 14, 1997 (File No. 333-25133).
(d) Statement of Additional Information of the Registrant dated September
27, 1996, filed herewith in the Registrant's Statement of Additional
Information.*
(e) Semi-annual reports to shareholders of the Registrant as relate to the
Balanced Portfolio and the Strategy Portfolio for the six months ended
January 31, 1997, filed herewith in the Registrant's Statement of Additional
Information.*
(f) Financial Data Schedules for the six months ended January 31, 1997.*
- --------------
* Filed herewith.
ITEM 17. UNDERTAKINGS.
(1) The undersigned registrant agrees that prior to any public reoffering of
the securities registered through the use of a prospectus which is a part of
this registration statement by any person or party who is deemed to be an
underwriter within the meaning of Rule 145(c) of the Securities Act, the
reoffering prospectus will contain the information called for by the applicable
registration form for reofferings by persons who may be deemed underwriters, in
addition to the information called for by the other items of the applicable
form.
(2) The undersigned registrant agrees that every prospectus that is filed
under paragraph (1) above will be filed as a part of an amendment to the
registration statement and will not be used until the amendment is effective,
and that, in determining any liability under the 1933 Act, each post-effective
amendment shall be deemed to be a new registration statement for the securities
offered therein, and the offering of the securities at that time shall be deemed
to be the initial bona fide offering of them.
C-2
<PAGE>
SIGNATURES
As required by the Securities Act of 1933, this Registration Statement has
been signed on behalf of the Registrant, in the City of Newark and State of New
Jersey, on the 14th day of April, 1997.
PRUDENTIAL ALLOCATION FUND
By: /s/ Richard A. Redeker
------------------------------------------------------
(RICHARD A. REDEKER, PRESIDENT)
As required by the Securities Act of 1933, this Registration Statement has
been signed by the following persons in the capacities and on the dates
indicated.
<TABLE>
<CAPTION>
SIGNATURE TITLE DATE
- ------------------------------ ---------------------------------------- ------------------
<S> <C> <C>
/s/ Susan C. Cote Treasurer and Principal Financial and April 14, 1997
- ------------------------------ Accounting Officer
SUSAN C. COTE
/s/ Richard A. Redeker President and Trustee April 14, 1997
- ------------------------------
RICHARD A. REDEKER
/s/ Edward D. Beach Trustee April 14, 1997
- ------------------------------
EDWARD D. BEACH
/s/ Delayne Dedrick Gold Trustee April 14, 1997
- ------------------------------
DELAYNE DEDRICK GOLD
/s/ Robert F. Gunia Trustee April 14, 1997
- ------------------------------
ROBERT F. GUNIA
/s/ Donald D. Lennox Trustee April 14, 1997
- ------------------------------
DONALD D. LENNOX
/s/ Douglas H. McCorkindale Trustee April 14, 1997
- ------------------------------
DOUGLAS H. MCCORKINDALE
/s/ Mendel A. Melzer Trustee April 14, 1997
- ------------------------------
MENDEL A. MELZER
/s/ Thomas T. Mooney Trustee April 14, 1997
- ------------------------------
THOMAS T. MOONEY
/s/ Stephen P. Munn Trustee April 14, 1997
- ------------------------------
STEPHEN P. MUNN
/s/ Robin B. Smith Trustee April 14, 1997
- ------------------------------
ROBIN B. SMITH
/s/ Louis A. Weil, III Trustee April 14, 1997
- ------------------------------
LOUIS A. WEIL, III
/s/ Clay T. Whitehead Trustee April 14, 1997
- ------------------------------
CLAY T. WHITEHEAD
</TABLE>
<PAGE>
EXHIBIT INDEX
EXHIBIT PAGE NO.
NUMBER -------
- ------
1. (a) Amended and Restated Declaration of Trust of the Registrant.
Incorporated by reference to Exhibit No. 1(a) to Post-Effective
Amendment No. 13 to the Registration Statement on Form N-1A filed via
EDGAR on September 29, 1994 (File No. 33-12531).
(b) Amended Certificate of Designation. Incorporated by reference to
Exhibit No. 1(b) to Post-Effective Amendment No. 18 to the
Registration Statement on Form N-1A filed via EDGAR on September 27,
1996 (File No. 33-12531).
2. By-Laws of the Registrant. Incorporated by reference to Exhibit No.
2 to Post-Effective Amendment No. 13 to the Registration Statement on
Form N-1A filed via EDGAR on September 29, 1994 (File No. 33-12531).
4. Plan of Reorganization, filed herewith as Appendix A to the
Prospectus and Proxy Statement.*
5. Instruments defining rights of shareholders. Incorporated by
reference to Exhibits 1 and 2.
6. (a) Management Agreement between the Registrant and Prudential
Mutual Fund Management. Incorporated by reference to Exhibit No. 6(a)
to the Registration Statement on Form N-14 filed via EDGAR on April
14, 1997 (File No. 333-25133).
(b) Subadvisory Agreement between Prudential Mutual Fund Management,
Inc. and The Prudential Investment Corporation. Incorporated by
reference to Exhibit No. 6(b) to the Registration Statement on Form
N-14 filed via EDGAR on April 14, 1997 (File No. 333-25133).
7. Restated Distribution Agreement for Class A, Class B, Class C and
Class Z shares. Incorporated by reference to Exhibit No. 6 to
Post-Effective Amendment No. 18 to the Registration Statement on Form
N-1A filed via EDGAR on September 27, 1996 (File No. 33-12531).
9. (a) Custodian Contract between the Registrant and State Street Bank
and Trust Company. Incorporated by reference to Exhibit No. 9(a) to
the Registration Statement on Form N-14 filed via EDGAR on April 14,
1997 (File No. 333-25133).
(b) Amendment to Custodian Contract. Incorporated by reference to
Exhibit No. 9(b) to the Registration Statement on Form N-14 filed via
EDGAR on April 14, 1997 (File No. 333-25133).
10. (a) Distribution and Service Plan for Class A shares. Incorporated
by reference to Exhibit No. 15(a) to Post-Effective Amendment No. 13
to the Registration Statement on Form N-1A filed via EDGAR on
September 29, 1994 (File No. 33-12531).
(b) Distribution and Service Plan for Class B shares. Incorporated
by reference to Exhibit No. 15(b) to Post-Effective Amendment No. 13
to the Registration Statement on Form N-1A filed via EDGAR on
September 29, 1994 (File No. 33-12531).
(c) Distribution and Service Plan for Class C shares. Incorporated
by reference to Exhibit No. 15(c) to Post-Effective Amendment No. 13
to the Registration Statement on Form N-1A filed via EDGAR on
September 29, 1994 (File No. 33-12531).
(d) Rule 18f-3 Plan. Incorporated by reference to Exhibit No. 18 to
Post-Effective Amendment No. 18 to the Registration Statement on Form
N-1A filed via EDGAR on September 27, 1996 (File No. 33-12531).
11. Opinion and Consent of Counsel. Incorporated by reference to Exhibit
No. 11 to the Registration Statement on Form N-14 filed via EDGAR on
April 14, 1997 (File No. 333-25133).
12. Tax Opinion of Counsel. Incorporated by reference to Exhibit No. 12
to the Registration Statement on Form N-14 filed via EDGAR on April
14, 1997 (File No. 333-25133).
14. Consent of Independent Accountants.*
17. (a) Proxy. Incorporated by reference to Exhibit No. 17(a) to the
Registration Statement on Form N-14 filed via EDGAR on April 14, 1997
(File No. 333-25133).
(b) Copy of Registrant's declaration pursuant to Rule 24f-2 under
the 1940 Act. Incorporated by reference to Exhibit No. 17(b) to the
Registration Statement on Form N-14 filed via EDGAR on April 14, 1997
(File No. 333-25133).
(c) Prospectus of the Registrant dated September 27, 1996.
Incorporated by reference to Exhibit No. 17(c) to the
Registration Statement on Form N-14 filed via EDGAR on April 14, 1997
(File No. 333-25133).
(d) Statement of Additional Information of the Registrant dated
September 27, 1996, filed herewith in the Registrant's Statement of
Additional Information.*
<PAGE>
(e) Semi-annual reports to shareholders of the Registrant as it
relates to the Balanced Portfolio and the Strategy Portfolio for the
six months ended January 31, 1997, filed herewith in the Registrant's
Statement of Additional Information.*
(f) Financial Data Schedules for the six months ended January 31,
1997.*
----------------------
* Filed herewith.
<PAGE>
CONSENT OF INDEPENDENT AUDITORS
We consent to the use in this Pre-Effective Amendment No. 1 to the
Registration Statement on Form N-14 of Prudential Allocation Fund
of our reports on the financial statements of Prudential Allocation
Fund-Balanced Portfolio and Prudential Allocation Fund-Strategy Portfolio
dated September 16, 1996, which are incorporated by reference in and are a
part of such Registration Statement, and to the reference to us under the
heading "Custodian, Transfer and Dividend Disbursing Agent and Independent
Accountants" in the Statement of Additional Information, which is a
part of such Registration Statement.
/s/ Deloitte & Touche LLP
Deloitte & Touche LLP
New York, New York
April 16, 1997
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 6
<CIK> 0000811444
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<NUMBER> 001
<NAME> THE PRUDENTIAL ALLOCATION FUND BALANCED PORTFOLIO CLASS A
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1997
<INVESTMENTS-AT-COST> 775,530,724
<INVESTMENTS-AT-VALUE> 865,363,537
<RECEIVABLES> 10,691,781
<ASSETS-OTHER> 879,951
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 876,935,269
<PAYABLE-FOR-SECURITIES> 5,754,964
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,114,973
<TOTAL-LIABILITIES> 7,869,937
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 742,211,606
<SHARES-COMMON-STOCK> 68,091,510
<SHARES-COMMON-PRIOR> 58,376,266
<ACCUMULATED-NII-CURRENT> 1,620,322
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 36,206,493
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 89,026,911
<NET-ASSETS> 869,065,332
<DIVIDEND-INCOME> 3,024,386
<INTEREST-INCOME> 12,271,060
<OTHER-INCOME> 0
<EXPENSES-NET> 6,251,696
<NET-INVESTMENT-INCOME> 9,043,750
<REALIZED-GAINS-CURRENT> 54,108,962
<APPREC-INCREASE-CURRENT> 60,587,423
<NET-CHANGE-FROM-OPS> 123,740,135
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (8,871,991)
<DISTRIBUTIONS-OF-GAINS> (50,703,489)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 164,638,505
<NUMBER-OF-SHARES-REDEEMED> (105,104,331)
<SHARES-REINVESTED> 55,265,004
<NET-CHANGE-IN-ASSETS> 178,963,833
<ACCUMULATED-NII-PRIOR> 3,473,368
<ACCUMULATED-GAINS-PRIOR> 32,801,020
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,678,767
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,251,696
<AVERAGE-NET-ASSETS> 292,465,000
<PER-SHARE-NAV-BEGIN> 11.85
<PER-SHARE-NII> 0.16
<PER-SHARE-GAIN-APPREC> 1.73
<PER-SHARE-DIVIDEND> (0.17)
<PER-SHARE-DISTRIBUTIONS> (0.78)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.79
<EXPENSE-RATIO> 1.14
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
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<PAGE>
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<CIK> 0000811444
<NAME> THE PRUDENTIAL ALLOCATION FUND BALANCED PORTFOLIO
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<NUMBER> 002
<NAME> THE PRUDENTIAL ALLOCATION FUND BALANCED PORTFOLIO CLASS B
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1997
<INVESTMENTS-AT-COST> 775,530,724
<INVESTMENTS-AT-VALUE> 865,363,537
<RECEIVABLES> 10,691,781
<ASSETS-OTHER> 879,951
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 876,935,269
<PAYABLE-FOR-SECURITIES> 5,754,964
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 2,114,973
<TOTAL-LIABILITIES> 7,869,937
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 742,211,606
<SHARES-COMMON-STOCK> 68,091,510
<SHARES-COMMON-PRIOR> 58,376,266
<ACCUMULATED-NII-CURRENT> 1,620,322
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 36,206,493
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 89,026,911
<NET-ASSETS> 869,065,332
<DIVIDEND-INCOME> 3,024,386
<INTEREST-INCOME> 12,271,060
<OTHER-INCOME> 0
<EXPENSES-NET> 6,251,696
<NET-INVESTMENT-INCOME> 9,043,750
<REALIZED-GAINS-CURRENT> 54,108,962
<APPREC-INCREASE-CURRENT> 60,587,423
<NET-CHANGE-FROM-OPS> 123,740,135
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (8,871,991)
<DISTRIBUTIONS-OF-GAINS> (50,703,489)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 164,638,505
<NUMBER-OF-SHARES-REDEEMED> (105,104,331)
<SHARES-REINVESTED> 55,265,004
<NET-CHANGE-IN-ASSETS> 178,963,833
<ACCUMULATED-NII-PRIOR> 3,473,368
<ACCUMULATED-GAINS-PRIOR> 32,801,020
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,678,767
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,251,696
<AVERAGE-NET-ASSETS> 439,228,000
<PER-SHARE-NAV-BEGIN> 11.80
<PER-SHARE-NII> 0.12
<PER-SHARE-GAIN-APPREC> 1.72
<PER-SHARE-DIVIDEND> (0.12)
<PER-SHARE-DISTRIBUTIONS> (0.78)
<RETURNS-OF-CAPITAL> 0.00
<PER-SHARE-NAV-END> 12.74
<EXPENSE-RATIO> 1.89
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0.00
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<PAGE>
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<CIK> 0000811444
<NAME> THE PRUDENTIAL ALLOCATION FUND BALANCED PORTFOLIO
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<NUMBER> 003
<NAME> THE PRUDENTIAL ALLOCATION FUND BALANCED PORTFOLIO CLASS C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> JUL-31-1997
<PERIOD-END> JAN-31-1997
<INVESTMENTS-AT-COST> 775,530,724
<INVESTMENTS-AT-VALUE> 865,363,537
<RECEIVABLES> 10,691,781
<ASSETS-OTHER> 879,951
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 876,935,269
<PAYABLE-FOR-SECURITIES> 5,754,964
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