<PAGE>
Prudential Mutual Funds
Supplement dated January 4, 1999
The following information supplements the Section entitled 'Investment Objective
and Policies' in the Statement of Additional Information:
Euro
On January 1, 1999, 11 of the 15 member states of the European Monetary
Union introduced the 'euro' as a common currency. During a three-year
transitional period, the euro will coexist with each participating state's
currency and, on July 1, 2002, the euro is expected to become the sole
currency of the participating states. During the transition period, the Fund
will treat the euro as a separate currency from that of any participating state.
The conversion may adversely affect the Fund if the euro does not take
effect as planned; if a participating state withdraws from the European Monetary
Union; or if the computing, accounting and trading systems used by the Funds'
service providers, or by entities with which the Fund or its service providers
do business, are not capable of recognizing the euro as a distinct currency at
the time of, and following, euro conversion. In addition, the conversion could
cause markets to become more volatile.
The overall effect of the transition of member states' currencies to the
euro is not known at this time. It is likely that more general short- and
long-term ramifications can be expected, such as changes in the economic
environment and change in the behavior of investors, which would affect the
Fund's investments and its net asset value. In addition, although U.S. Treasury
regulations generally provide that the euro conversion will not, in itself,
cause a U.S. taxpayer to realize gain or loss, other changes that may occur at
the time of the conversion, such as accrual periods, holiday conventions,
indices, and other features may require the realization of a gain or loss by the
Fund as determined under existing tax law.
The Fund's Manager has taken steps: (1) that it believes will reasonably
address euro-related changes to enable the Fund and its service providers to
process transactions accurately and completely with minimal disruption to
business activities and (2) to obtain reasonable assurances that appropriate
steps have been taken by the Fund's other service providers to address the
conversion. The Fund has not borne any expense relating to these actions.
Listed below are the names of the Prudential Mutual Funds and the dates of
the Statements of Additional Information to which this Supplement relates.
<TABLE>
<CAPTION>
Statement of Additional
Name of Fund Information Date
- --------------------------------------------------- ---------------------------------------------
<S> <C>
Global Utility Fund, Inc. November 27, 1998
Nicholas-Applegate Fund, Inc. March 4, 1998
Prudential Developing Markets Fund June 26, 1998
Prudential Diversified Bond Fund, Inc. March 4, 1998
Prudential Diversified Funds October 5, 1998
Prudential Europe Growth Fund, Inc. July 1, 1998
Prudential Global Genesis Fund, Inc. July 31, 1998
Prudential Global Limited Maturity Fund, Inc. December 30, 1997
Prudential High Yield Fund, Inc. March 3, 1998
Prudential High Yield Total Return Fund, Inc. March 16, 1998
Prudential Index Series Fund November 30, 1998
Prudential Intermediate Global Income Fund, Inc. March 4, 1998
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Statement of Additional
Name of Fund Information Date
- --------------------------------------------------- ---------------------------------------------
<S> <C>
Prudential International Bond Fund, Inc. March 4, 1998
The Prudential Series Fund, Inc. May 1, 1998
Prudential Natural Resources Fund, Inc. July 31, 1998
Prudential World Fund, Inc. January 7, 1998
The Global Total Return Fund, Inc. March 4, 1998
The Target Portfolio Trust May 1, 1998
</TABLE>
MF980C-10 (12/31/98)
