ANNUAL REPORT May 31,1994
Prudential
Global Genesis
Fund
(LOGO)
<PAGE>
Letter to Shareholders
June 28, 1994
Dear Shareholder:
Over the 12 months ended May 31, 1994, global small stock markets posted
moderate returns, mainly on the strength of gains made in non-U.S. markets.
Of course, U.S. stocks were hurt by rising short-term interest rates, but
advances in Japan and Europe more than offset these declines. The U.S.
dollar's weakness against major currencies also helped improve returns for U.S.
based investors. We are pleased to report that the Prudential Global Genesis
Fund produced above-average returns in this environment.
The Fund in Brief
The Prudential Global Genesis Fund seeks long-term capital growth by investing
in a diversified portfolio composed primarily of common stocks of smaller
foreign and U.S. companies. Please note that there are special risks
associated with foreign investments, such as currency fluctuations, economic,
political and social developments. These risks are described in detail in the
Fund's prospectus
Has the U.S. Bull Market Stalled?
This year's U.S. stock market performance may have raised fears that the
seven-year bull market might be over, but our view has not yet turned negative.
While performance can never be guaranteed, we believe the downturn is a normal
correction and are heartened by the improved tone and direction of markets
outside the U.S. We would also like to point out that small company stocks
only emerged from their slumber three years ago. Since then, the S&P 500
gained about 28%, while the Russell 2000 rose 47%. We expect small stocks to
continue to outperform in the U.S. as the economy grows.
Restructuring Leads to Buying Opportunities
With the market in what we believe is a temporary state of turmoil, our
strategy did not change much in the past year. In fact, as market prices fell,
we found good buying opportunities, especially in the U.S. Our broad strategy
is to identify major structural changes in economies around the world and buy
stocks that should profit from them.
-3-
<PAGE>
Here are several themes that developed from this strategy:
- -- Secular Change in Japan. We believe Japan is in the midst of a secular
change that will reshape society and the economy. In addition, rising
production costs are one of the long-term challenges facing Japan. Despite the
country's slightly gloomy short-term outlook, we are bullish on its long-term
growth. We shifted our focus in Japan to increase export-oriented technology
companies, like cellular telephone manufacturers and computer component makers.
This new focus anticipates continued worldwide use of high technology.
Tracking Japanese Stocks
Tracking big and small stocks is easier in Japan. Japan's Tokyo Stock Exchange
is divided into two sections: the TOPIX (Tokyo Price Index) consists of about
1,000 of the largest issues (by market capitalization), and those that trade
over-the-counter, The OTC market, is composed of approximately 400 smaller
stocks. TOPIX is dominated by financial, energy and transportation stocks,
while the OTC contains a lot of consumer cyclical issues.
This year, TOPIX issues were affected more than smaller Japanese stocks by the
rising yen, the local recession and a shakeout in the banking industry. From
December 31, 1993 to May 31, 1994, the TOPIX returned 16.1% while the OTC
market gained 23.3%.
- -- Economic Growth in the Pacific Rim. Elsewhere in the Pacific Basin, we
continue to focus on Southeast Asia's newly industrializing nations for their
unsurpassed economic growth. Southeast Asian markets posted large returns last
year. For example, the Hong Kong stock market gained an average 117% (in
dollar terms) for 1993. This winter, however, the Fund was hurt by its
overweighted position in the Pacific Rim, as investors sold stocks en masse
when prices were up.
- -- Restructuring in Europe. We also increased our exposure to Europe. After a
protracted recession, we noticed that industrial companies started to report
better earnings a positive sign since many of them produce the raw materials
that are used to make consumer goods. We also participated in the region's
economic recovery by investing in global companies. Europe is a major
destination for natural resource exporters. One of the new "European" stocks
in our Fund is New Zealand's Fletcher Challenge, a forest products company.
- -- Multimedia. The U.S. is the world's technology leader, and technology
companies comprised the bulk of our U.S. holdings over the Fund's fiscal year.
During the market's downturn this winter, technology stocks were especially
hurt. We took this opportunity to sell stocks that were overpriced.
Looking Ahead
Our outlook is generally optimistic. The worst of the global market's
correction should be over soon, and we will aggressively look for companies
that we think are inexpensive when the dust settles. The bright spots this
year should be in Japan, Europe and Australia. In addition, we believe the
U.S. stock market will produce stable returns for the rest of the year. We
will generally avoid investing in Hong Kong, although the rest of Southeast
Asia should be strong. As far as sectors are concerned, we are focusing on
high technology, consumer durables and natural resources.
-4-
<PAGE>
As always, we appreciate having you as a shareholder of the Prudential Global
Genesis Fund, and we remain committed to managing it for your long-term gain.
Sincerely,
Lawrence C. McQuade
President
Daniel J. Duane
Portfolio Manager
-5-
<PAGE>
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
LONG-TERM INVESTMENTS--90.2%
Common Stocks--84.8%
Australia--2.7%
2,074,300 AAPC, Ltd. .............. $ 1,684,033
(Merchandising)
485,452 Bank of Melbourne, Ltd. 1,881,013
.......................
(Banking)
50,000 Burswood Property Trust* 62,734
.......................
(Leisure & tourism)
2,324,600 Sea World Property, Ltd. 1,921,554
....................... ------------
(Leisure & tourism)
5,549,334
------------
Federal Republic Of Germany--1.9%
2,284 Bilfinger & Berger AG ... 1,046,721
(Construction & housing)
2,280 Bilfinger & Berger AG 35,353
(Rights) ..............
(Construction & housing)
2,153 Computer 2000 ........... 888,670
(Business & public
services)
1,271 Hornbach Baumarkt AG* ... 771,495
(Merchandising)
1,335 Weru AG ................. 1,091,533
(Construction & housing) ------------
3,833,772
------------
France--4.7%
32,400 Lapeyre ................. 1,812,225
(Building & related
industries)
6,519 Manutan* ................ 1,099,667
(Merchandising)
27,300 Naf Naf* ................ 1,953,549
(Merchandising)
7,900 Plastic Omnium SA ....... 959,489
(Automobiles)
7,900 Plastic Omnium SA (Rights) $ 2,104
.......................
(Automobiles)
11,600 Rexel ................... 1,342,957
(Electronics)
16,100 Sidel SA* ............... 2,395,668
(Machinery & ------------
engineering)
9,565,659
------------
Hong Kong--7.7%
1,020,000 Alco Holdings, Ltd. ..... 326,753
(Electronics)
14,994,000 CNT Group, Ltd.* ........ 1,863,079
(Multi-industry)
3,540,000 Fairwood Holdings Corp. 833,911
.......................
(Merchandising)
456,000 Giordano Holdings, Ltd. 227,233
.......................
(Merchandising)
504,000 Guoco Group, Ltd. ....... 2,315,816
(Financial services)
6,593,000 Hung Hing Printing Group, 1,749,367
Ltd. .
(Broadcasting &
publishing)
1,430,000 JCG Holdings, Ltd. ...... 980,973
(Financial services)
4,682,000 Kong Wah Holdings, Ltd. 1,060,506
.......................
(Electronics)
2,555,000 Liu Chong Hing Investment, 4,762,101
Ltd.
(Real estate)
8,713,000 Techtronic Industries, Co. 1,669,062
....................... ------------
(Machinery &
engineering)
15,788,801
------------
India--0.7%
186,900 Videocon International, 1,518,563
Ltd. (ADR)* . ------------
(Electronics)
</TABLE>
-6- See Notes to Financial Statements.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
Indonesia--1.4%
1,000,000 Putra Surya Per Kasa* ... $ 1,640,291
(Multi-industry)
298,000 Sekar Laut* ............. 1,170,382
(Multi-industry) ------------
2,810,673
------------
Japan--16.8%
137,000 Aiwa Co. ................ 3,529,749
(Appliances & household
durables)
17,600 Autobacs Seven Co. ...... 2,183,310
(Automotive)
58,000 Enplas Corp. ............ 2,047,808
(Electronics)
37,000 Higashi Nihon House ..... 1,867,742
(Construction & housing)
20,000 I O Data Device, Inc.* 3,607,042
.......................
(Technology)
24,000 Japan Associates Finance 3,023,045
Co. ...................
(Financial services)
31,900 Koei Co. ................ 2,006,021
(Recreation & other
consumer goods)
40,000 Mitsumi Electric Co., Ltd. 748,127
.......................
(Electronics)
43,000 Murata Manufacturing Co., 1,920,321
Ltd. .
(Electronic components)
52,000 Nichiei Co. ............. 4,366,620
(Financial services)
111,000 Nichiei Construction Co., 1,610,000
Ltd. ..................
(Construction & housing)
63,400 Nissen Co., Ltd. ........ 2,413,913
(Merchandising)
48,000 Sho-Bond Construction Co., 1,525,264
Ltd.
(Construction & housing)
33,000 Tokyo Electronic Co., Ltd. 1,017,129
.......................
(Electronics)
22,000 Tsutsumi Jewelry, Ltd. $ 2,309,270
....................... ------------
(Merchandising)
34,175,361
------------
Korea--4.0%
11,330 Daewoo Securities Co., 424,576
Ltd.* .................
(Financial services)
9,180 Daishin Securities* ..... 216,429
(Financial services)
32,215 Dong-Ah Construction Ind. 1,355,117
Co., Ltd.
(Construction & housing)
65,028 Hanjin Heavy Industries* 1,057,038
.......................
(Transportation/shipping)
15,000 Kun Young Construction 273,607
Corp.* ................
(Construction & housing)
33,605 Pusan Steel Pipe* ....... 1,234,282
(Steel)
11,528 Samsung Electronics Co. 1,283,114
.......................
(Electronics)
25,300 Shinwon Corp.* .......... 1,073,657
(Textiles & apparel)
43,500 Shinyoung Wacoal* ....... 1,290,048
(Financial services) ------------
8,207,868
------------
Malaysia--10.5%
210,000 Aokam Perdana Berhad .... 1,563,093
(Forest products)
257,000 Arab-Malaysian Finance 926,575
Berhad*
(Banking)
209,000 Berjaya Sports Toto ..... 335,437
(Real estate)
738,000 Federal Furniture 801,085
Holdings* .............
(Appliances & household
durables)
541,000 Granite Industries Berhad* 964,760
.......................
(Leisure & tourism)
</TABLE>
-7- See Notes to Financial Statements.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
Malaysia (cont'd)
678,000 Hock Hua Bank Berhad .... $ 1,853,033
(Banking)
86,000 Hong Leong Industries 400,078
Berhad ................
(Building & related
industries)
Malayan Cement Berhad
456,000(D) Class B ................. 802,346
(Building & related
industries)
509,500 Malayan Cement Berhad
Class B .................
(Building & related
industries)
865,133
300,000 MGR Corp. ............... 1,465,400
(Forest products)
686,000 Minho Berhad* ........... 1,175,468
(Forest products)
333,000 Multi-Purpose Holdings 462,159
Berhad .
(Multi-industry)
406,500 Park May Berhad ......... 1,402,539
(Transportation/shipping)
1,107,500 Pilecon Engineering Berhad 1,768,908
.......................
(Machinery &
engineering)
369,166 Pilecon Engineering Berhad 83,722
(Rights) ..............
(Machinery &
engineering)
444,000 Resorts World ........... 2,409,769
(Leisure & tourism)
731,000 Sistem Televisyen ....... 1,686,160
(Broadcasting &
publishing)
583,000 Technology Resources 2,373,134
Industries Berhad* .... ------------
(Data processing &
reproduction)
21,338,799
------------
Mexico--1.5%
Grupo Financiero Banacci.
175,100 Class C* ................ 1,311,275
(Banking)
6,460 Class L ................. $ 45,269
(Banking)
53,000 Grupo Simec (ADR)* ...... 1,325,000
(Metals)
40,000 Transportacion Maritima 310,000
Mexico (ADR) .......... ------------
(Transportation/shipping)
2,991,544
------------
Netherlands--1.7%
44,000 Randstad Holdings* ...... 1,947,356
(Business & public
services)
67,650 Royal Boskalis Westminster 1,592,195
NV* ------------
(Construction & housing)
3,539,551
------------
New Zealand--1.4%
841,300 Fletcher Challenge, Ltd. 1,910,749
.......................
(Forest products)
616,000 Fletcher Forestry, Ltd. 889,972
....................... ------------
(Forest products)
2,800,721
------------
Singapore--9.6%
972,000 Kim England Holdings .... 1,773,607
(Financial services)
1,902,000 QAF, Ltd. ............... 1,760,077
(Food & household
products)
263,000 Robinson & Co. .......... 1,174,030
(Merchandising)
459,250 Sembawang Maritime, Ltd. 2,035,125
.......................
(Transportation/shipping)
167,000 Sembawang Shipyards, Ltd. 1,393,027
.......................
(Machinery &
engineering)
1,114,000 Tiger Medicals, Ltd. .... 1,528,165
(Health & personal care)
1,017,000 Van Der Horst, Ltd.* .... 4,705,572
(Machinery &
engineering)
</TABLE>
-8- See Notes to Financial Statements.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
Singapore (cont'd)
1,873,000 Wing Tai Holdings ....... $ 2,917,216
(Multi-industry)
924,000 Yeo Hiap Seng ........... 2,360,430
(Beverages & tobacco) ------------
19,647,249
------------
Spain--3.3%
17,200 Azkoyen SA .............. 995,156
(Machinery &
engineering)
19,670 Construcciones y Aux Ferr* 1,085,940
.......................
(Construction & housing)
18,700 Cubiertas Y Mzov ........ 1,643,563
(Multi-industry)
96,725 Pryca SA ................ 1,402,637
(Merchandising)
170,000 Tudor* .................. 1,601,767
(Industrial components) ------------
6,729,063
------------
Sweden--2.4%
50,000 Allgon AB ............... 1,530,227
(Data processing &
reproduction)
63,800 Celsius Industriar AB ... 1,625,779
(Construction & housing)
34,650 Hennes & Mauritz B Free 1,801,429
....................... ------------
(Merchandising)
4,957,435
------------
Thailand--1.7%
49,201 Land & House Public Co., 1,136,309
Ltd. ..................
(Construction & housing)
199,700 Somprasong Land 1,085,670
Development*
(Real estate)
152,000 Srithai Superware Plc* 1,185,238
....................... ------------
(Food & household
products)
3,407,217
------------
United Kingdom--4.3%
580,000 BBA Group ............... $ 1,734,953
(Industrial components)
244,900 Dorling Kindersley 1,084,054
Holdings, Ltd.
(Broadcasting &
publishing)
259,400 Lloyds Chemists Plc ..... 1,214,859
(Health & personnal
care)
1,000,000 Morrison Supermarket .... 1,888,445
(Food & household
products)
265,100 Powerscreen International 1,001,254
.......................
(Construction & housing)
250,000 Smith Holdings .......... 1,907,330
(Forest products) ------------
8,830,895
------------
United States--8.5%
122,800 Adaptec, Inc.* .......... 2,149,000
(Electronics)
42,300 Cirrus Logic, Inc.* ..... 1,438,200
(Electronics)
50,000 Electroglas Inc.* ....... 1,668,750
(Electronics)
61,600 Electronic Arts, Inc.* 1,262,800
.......................
(Recreation & other
consumer goods)
1,500 Fore Systems, Inc.* ..... 39,188
(Technology)
83,500 Haverty Furniture Cos, 1,262,937
Inc. ..................
(Merchandising)
61,600 Holophone Corp.* ........ 1,116,500
(Electronics)
Jacobs Engineering Group,
Inc.*
56,100 (Rights) ................ 1,023,824
(Machinery &
engineering)
46,000 Jones Apparel Group, Inc.* 1,322,500
.......................
(Textiles & apparel)
75,900 Kemet Corp.* ............ 1,242,862
(Multi-industry)
</TABLE>
-9- See Notes to Financial Statements.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
United States (cont'd)
33,000 Parcplace Systems, Inc.* $ 602,250
.......................
(Data processing &
reproduction)
84,500 Piper Jaffray, Inc. ..... 1,077,375
(Financial services)
49,000 Spectrum Holobyte Inc.* 404,250
.......................
(Recreational & other
consumer goods)
45,200 T. Rowe Price & 1,356,000
Associates, Inc.
(Financial services)
115,000 Western National Corp. 1,336,875
....................... ------------
(Insurance)
17,303,311
------------
Total common stocks
(cost US$153,820,406)..... 172,995,816
------------
Preferred Stocks--4.0%
Australia--0.1%
24,083 Bank of Melbourne, Ltd. 234,445
....................... ------------
(Banking)
Austria--0.5%
10,020 Maculan Holding AG ...... 935,922
(Construction & housing) ------------
Federal Republic Of Germany--1.1%
2,110 Hornbach AG ............. 2,215,727
(Merchandising) ------------
Finland--1.7%
47,600 Nokia Corp. ............. 3,517,682
(Multi-industry) ------------
Korea--0.6%
19,380 Daishin Securities* ..... 408,810
(Financial services)
15,000 Mando Machinery Corp. ... 697,978
(Machinery & ------------
engineering)
1,106,788
------------
Total preferred stocks
(cost US$5,482,470)....... $ 8,010,564
------------
Warrants*--0.6%
Japan--0.6%
Autobacs Seven Co.
50 expiring Feb. '95 @ 240,000
(YEN)8,089 ............
(Automotive)
Nissen Co., Ltd.
218 expiring Nov. '96 @ 291,778
(YEN)1,681 ............
(Merchandising)
Nitori Co.
3,300 expiring Feb. '98 @ 643,193
(YEN)3,268 ............ ------------
(Merchandising)
1,174,971
------------
Singapore
Kim England Holdings
157,800 expiring Feb. '97 @ SD2 130,600
....................... ------------
(Financial services)
Total warrants
(cost US$850,134)......... 1,305,571
------------
<CAPTION>
Principal
Amount Corporate Bonds--0.8%
(000) Malaysia--0.5%
- ----------
<C> <S> <C>
Gujanet Ambuja Cement,
USD 750 3.50%, 6/30/99, ......... 1,053,750
(Building & related ------------
industries)
Singapore--0.3%
Kim England Holdings*
SED 157,800 Unsecured loan stock 92,552
3.50%, 2/2/97 .........
(Financial services)
QAF, Ltd.
Loan stock
SED 201,600# 2.00%, 11/3/98 ....... 213,490
(Food & household products)
</TABLE>
-10- See Notes to Financial Statements.
<PAGE>
<PAGE>
<TABLE>
<CAPTION>
Principal
Amount Value
(000) Description (Note 1)
<C> <S> <C>
Singapore (cont'd)
Sembawang Maritime, Ltd.
SED 173,000 Convertible unsecured loan
stock
1.50%, 10/25/98 ....... $ 250,283
------------
(Transportation/shipping)
556,325
------------
Total corporate bonds
(cost US$1,209,735)....... 1,610,075
------------
Total long-term
investments
(cost US$161,362,745)..... 183,922,026
------------
SHORT-TERM INVESTMENT--4.3%
Repurchase Agreement
Joint Repurchase Agreement
Account,
USD 8,680 4.23%, 6/1/94 8,680,000
(cost US$8,680,000; Note
5)......................
------------
Total Investments--94.5%
(cost US$170,042,745; Note 192,602,026
4)......................
Other assets in excess of
liabilities--5.5%......... 11,278,400
------------
Net Assets--100%.......... $203,880,426
------------
------------
</TABLE>
- ---------------
* Non-income producing security.
ADR--American Depository Receipt.
(D)Traded in Singapore Dollars.
# Loan stock unit (each unit is comprised of two warrants and principal amount
of bond).
-11- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL GENESIS FUND
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
Assets May 31, 1994
-------------
<S> <C>
Investments, at value (cost $170,042,745)................................................. $ 192,602,026
Foreign currency, at value (cost $8,783,007).............................................. 8,832,116
Receivable for Fund shares sold........................................................... 2,403,210
Receivable for investments sold........................................................... 1,274,324
Receivable for foreign currency........................................................... 1,029,370
Dividends and interest receivable......................................................... 420,981
-------------
Total assets.......................................................................... 206,562,027
-------------
Liabilities
Foreign currency overdraft................................................................ 1,022,438
Payable for Fund shares reacquired........................................................ 684,723
Accrued expenses and other liabilities.................................................... 365,227
Bank overdraft............................................................................ 231,864
Due to Distributors....................................................................... 152,190
Withholding taxes payable................................................................. 115,763
Due to Manager............................................................................ 85,396
Payable for investments purchased......................................................... 24,000
-------------
Total liabilities..................................................................... 2,681,601
-------------
Net Assets................................................................................ $ 203,880,426
-------------
-------------
Net assets were comprised of:
Common stock, at par.................................................................... $ 111,447
Paid-in capital in excess of par........................................................ 181,251,996
-------------
181,363,443
Undistributed net investment income..................................................... 495,868
Accumulated net realized loss on investment and foreign currency transactions........... (528,393)
Net unrealized appreciation on investment and foreign currency transactions............. 22,549,508
-------------
Net assets, May 31, 1994................................................................ $ 203,880,426
-------------
-------------
Class A:
Net asset value and redemption price per share
($29,221,586 / 1,558,475 shares of common stock issued and outstanding)............... $18.75
Maximum sales charge (5.25% of offering price).......................................... 1.04
-------------
Maximum offering price to public........................................................ $19.79
-------------
-------------
Class B:
Net asset value, offering and redemption price per share
($174,658,840 / 9,586,206 shares of common stock issued and outstanding).............. $18.22
-------------
-------------
</TABLE>
See Notes to Financial Statements.
-12-
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL GENESIS FUND
Statement of Operations
<TABLE>
<CAPTION>
Year Ended
May 31,
Net Investment Loss 1994
-----------
<S> <C>
Income
Dividends (net of foreign withholding
taxes of $183,489)................. $ 1,344,292
Interest (net of foreign withholding
taxes of $2,788)................... 245,606
-----------
Total income....................... 1,589,898
-----------
Expenses
Management fee, net of waiver of
$711,053............................. 482,555
Distribution fee--Class A............ 39,381
Distribution fee--Class B............ 1,024,514
Custodian's fees and expenses........ 406,000
Transfer agent's fees and expenses... 216,000
Reports to shareholders.............. 124,000
Registration fees.................... 117,500
Audit fee............................ 60,000
Directors' fees...................... 30,000
Legal fees........................... 30,000
Miscellaneous........................ 20,237
-----------
Total expenses..................... 2,550,187
-----------
Net investment loss.................... (960,289)
-----------
Realized and Unrealized Gain (Loss)
on Investments and Foreign
Currency Transactions
Net realized gain on:
Investment transactions.............. 965,626
Foreign currency transactions........ 109,481
-----------
1,075,107
-----------
Net change in unrealized
appreciation/depreciation of:
Investment transactions.............. 14,065,860
Foreign currency transactions........ (54,879)
-----------
14,010,981
-----------
Net gain on investments and foreign
currencies........................... 15,086,088
-----------
Net Increase in Net Assets
Resulting from Operations.............. $14,125,799
-----------
-----------
</TABLE>
PRUDENTIAL GLOBAL GENESIS FUND
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Years Ended May 31,
Increase (Decrease) ----------------------------
in Net Assets 1994 1993
------------ ------------
<S> <C> <C>
Operations
Net investment income
(loss).................. $ (960,289) $ 21,117
Net realized gain on
investment and foreign
currency
transactions.......... 1,075,107 3,863,158
Net change in unrealized
appreciation/depreciation
of investments and
foreign currencies.... 14,010,981 2,251,281
------------ ------------
Net increase in net
assets resulting from
operations............ 14,125,799 6,135,556
------------ ------------
Distributions in excess
of net investment
income (Note 1)
Class A............... (49,552) --
Class B............... (148,112) --
------------ ------------
(197,664) --
------------ ------------
Distributions to
shareholders from net
realized gains on
investment and foreign
currency transactions
Class A............... (192,564) --
Class B............... (1,141,075) --
------------ ------------
(1,333,639) --
------------ ------------
Fund share transactions
(Note 6)
Net proceeds from shares
subscribed............ 228,856,244 12,830,751
Net asset value of
shares issued to
shareholders in
reinvestment of
dividends
and distributions..... 1,453,440 --
Cost of shares
reacquired.............. (78,594,707) (18,868,583)
------------ ------------
Net increase (decrease)
in net assets from
Fund share
transactions.......... 151,714,977 (6,037,832)
------------ ------------
Total increase............ 164,309,473 97,724
Net Assets
Beginning of year......... 39,570,953 39,473,229
------------ ------------
End of year............... $203,880,426 $ 39,570,953
------------ ------------
------------ ------------
</TABLE>
See Notes to Financial Statements. See Notes to Financial Statements.
-13-
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL GENESIS FUND
Notes to Financial Statements
Prudential-Bache Global Genesis Fund, Inc., doing business as Prudential
Global Genesis Fund (the ``Fund''), is registered under the Investment Company
Act of 1940 as a diversified, open-end management investment company. The Fund's
investment objective is long-term growth of capital which it seeks to achieve by
investing primarily in equity securities of foreign and domestic companies with
market capitalizations of less than U.S.$750 million.
Note 1. Accounting The following is a summary
Policies of significant accounting
policies followed by the Fund in the preparation
of its financial statements.
Security Valuation: Securities traded on an exchange (whether domestic or
foreign) are valued at the last reported sales price on the primary exchange on
which they are traded. Securities traded in the over-the-counter market
(including securities listed on exchanges for which a last sales price is not
available) are valued at the average of the last reported bid and asked prices.
Securities for which market quotations are not readily available, including
restricted securities, will be valued at fair value as determined in good faith
according to a pricing procedure developed by the Investment Adviser under
procedures established by and under the general supervision of the Fund's Board
of Directors.
Short-term securities which mature in more than 60 days are valued at current
market quotations. Short-term securities which mature in 60 days or less are
valued at amortized cost which approximates market value.
In connection with transactions in repurchase agreements with U.S. financial
institutions, it is the Fund's policy that its custodian or designated
subcustodians, as the case may be under tri-party repurchase agreements, take
possession of the underlying collateral securities, the value of which exceeds
the principal amount of the repurchase transaction including accrued interest.
If the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
Foreign Currency Translation: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) market value of investment securities, other assets and liabilities--at
the daily closing rates of exchange.
(ii) purchases and sales of investment securities, income and expenses--at
the rate of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented using the foreign exchange
rates and market values at the close of the fiscal year, the Fund does not
isolate that portion of the results of operations arising as a result of changes
in the foreign exchange rates from the fluctuations arising from changes in the
market prices of securities held at the fiscal year end. Similarly, the Fund
does not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of long-term portfolio
securities sold during the fiscal year.
Net realized gain on foreign currency transactions of $109,481 represents net
foreign exchange gains from disposition of foreign currencies, currency gains or
losses realized between the trade and settlement dates on security transactions,
and the difference between the amounts of dividends, interest and foreign taxes
recorded on the Fund's books and the U.S. dollar equivalent amounts actually
received or paid. Net currency gains and losses from valuing foreign currency
denominated assets and liabilities (other than portfolio investments) at fiscal
year end exchange rates are reflected as a component of net unrealized
depreciation on foreign currencies.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of domestic origin as a result of,
among other factors, the possibility of political or economic instability and
the level of governmental supervision and the regulation of foreign securities
markets.
Securities Transactions and Investment Income: Securities transactions are
recorded on the trade date. Realized gains and losses from investment and
currency transactions are calculated on the identified cost basis. Dividend
income is recorded on the ex-dividend date and interest income is recorded on an
accrual basis.
Net investment income (other than distribution fees) and unrealized and
realized gains or losses are allocated daily to each class of shares of the Fund
based upon the relative proportion of net assets of each class at the beginning
of the day.
Federal Income Taxes: It is the Fund's policy to continue to meet the
requirements of the Internal Revenue Code
-14-
<PAGE>
<PAGE>
applicable to regulated investment companies and to distribute all of its
taxable income to shareholders. Therefore, no federal income tax provision is
required.
Withholding taxes on foreign interest and dividends have been provided for in
accordance with the Fund's understanding of the applicable country's tax rules
and rates.
Dividends and Distributions: The Fund expects to pay dividends of net investment
income and distributions of net realized capital gains, if any, at least
annually. Dividends and distributions are recorded on the ex-dividend date.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles. These differences are primarily due to differing
treatments of wash sales, passive investment companies, and foreign currencies
transactions.
Reclassification of Capital Accounts: Effective June 1, 1993, the Fund began
accounting and reporting for distributions to shareholders in accordance with
the A.I.C.P.A.'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 caused by adopting this
statement was to decrease paid-in capital by $1,342,739, decrease accumulated
net investment loss by $1,567,616 and decrease accumulated net realized gains on
investments by $224,877 with respect to amounts reported through May 31, 1993.
For the year ended May 31, 1994, the Fund decreased paid-in capital in excess of
par by $941,077, increased accumulated net investment income by $1,477,901, and
decreased accumulated net realized loss on investments by $536,821. Net realized
gains and net assets were not affected by this change.
Note 2. Agreements The Fund has a management
agreement with Prudential Mutual Fund Management,
Inc. (``PMF''). Pursuant to this agreement, PMF has responsibility for all
investment advisory services and supervises the subadviser's performance of such
services. PMF has entered into a subadvisory agreement with The Prudential
Investment Corporation (``PIC''); PIC furnishes investment advisory services in
connection with the management of the Fund. PMF pays for the services of PIC,
the compensation of officers of the Fund, occupancy and certain clerical and
bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid PMF is computed daily and payable monthly, at an
annual rate of 1% of the average daily net assets of the Fund. For the period
ended October 31, 1993, PMF voluntarily waived 100% of its management fee.
Effective November 1, 1993, PMF reduced the management fee waiver to 50%. For
the fiscal year ended May 31, 1994, management fees waived amounted to $711,053
($0.11 per share and .60% of average net assets).
The Fund has distribution agreements with Prudential Mutual Fund
Distributors, Inc. (``PMFD''), which acts as the distributor of the Class A
shares of the Fund, and PSI, which acts as distributor of the Class B shares of
the Fund (collectively the ``Distributors''). To reimburse the Distributors for
their expenses incurred in distributing the Fund's Class A and Class B shares,
the Fund, pursuant to plans of distribution, pays the Distributors a
reimbursement accrued daily and payable monthly.
Pursuant to the Class A Plan, the Fund reimburses PMFD for its
distribution-related expenses with respect to Class A shares at an annual rate
of up to .30 of 1% of the average daily net assets of the Class A shares. Such
expenses under the Class A Plan were .23 of 1% of the average daily net assets
of the Class A shares for the fiscal year ended May 31, 1994. Such Class A Plan
distribution expenses are currently being assessed at a rate of .25 of 1% of the
average daily net assets. PMFD pays various broker-dealers, including PSI and
Pruco Securities Corporation (``Prusec''), affiliated broker-dealers, for
account servicing fees and other expenses incurred by such broker-dealers.
Pursuant to the Class B Plan, the Fund reimburses PSI for its
distribution-related expenses with respect to Class B shares at an annual rate
of up to 1% of the average daily net assets of the Class B shares.
The Class B distribution expenses include commission credits for payments of
commissions and account servicing fees to financial advisers and an allocation
for overhead and other distribution-related expenses, interest and/or carrying
charges, the cost of printing and mailing prospectuses to potential investors
and of advertising incurred in connection with the distribution of shares.
The Distributors recover the distribution expenses and service fees incurred
through the receipt of reimbursement payments from the Fund under the plans and
the receipt of initial sales charges (Class A only) and contingent deferred
sales charges (Class B only) from shareholders.
PMFD has advised the Fund that it has received approximately $678,000 in
front-end sales charges resulting from sales of Class A shares during the fiscal
year ended May 31, 1994. From these fees, PMFD paid such sales charges to
dealers (PSI and Prusec) which in turn paid commissions to salespersons.
-15-
<PAGE>
<PAGE>
With respect to the Class B Plan, at any given time, the amount of expenses
incurred by PSI in distributing the Fund's shares and not recovered through the
imposition of contingent deferred sales charges in connection with certain
redemptions of shares may exceed the total payments made by the Fund pursuant to
the Class B Plan. For the fiscal year ended May 31, 1994, PSI advised the Fund
that it received approximately $246,400 in contingent deferred sales charges
imposed upon certain redemptions by investors. PSI, as distributor, has also
advised the Fund that at May 31, 1994, the amount of distribution expenses
incurred by PSI and not yet reimbursed by the Fund or recovered through
contingent deferred sales charges approximated $4,212,000. This amount may be
recovered through future payments under the Class B Plan or contingent deferred
sales charges.
In the event of termination or noncontinuation of the Class B Plan, the Fund
would not be contractually obligated to pay PSI, as distributor, for any
expenses not previously reimbursed or recovered through contingent deferred
sales charges.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are indirect,
wholly-owned subsidiaries of The Prudential Insurance Company of America.
Note 3. Other Prudential Mutual Fund Ser-
Transactions vices, Inc. (``PMFS''), a
With Affiliates wholly-owned subsidiary of
PMF, serves as the Fund's transfer agent and
during the fiscal year ended May 31, 1994, the Fund incurred fees of
approximately $197,700 for the services of PMFS. As of May 31, 1994,
approximately $29,000 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to non-affiliates.
For the fiscal year ended May 31, 1994, PSI and/or its foreign affiliates
earned approximately $3,100 in brokerage commissions from portfolio transactions
executed on behalf of the Fund.
Note 4. Portfolio Purchases and sales of invest-
Securities ment securities, other than
short-term investments, for the fiscal year ended
May 31, 1994 aggregated $167,080,423 and $35,941,571, respectively.
The federal income tax basis of the Fund's investments at May 31, 1994 was
$170,984,810 and accordingly, net unrealized appreciation for federal income tax
purposes was $21,617,216 (gross unrealized appreciation-- $30,176,457; gross
unrealized depreciation--$8,559,241).
Note 5. Joint The Fund, along with other
Repurchase affiliated registered invest-
Agreement Account ment companies, transfers
uninvested cash balances into a single joint
account, the daily aggregate balance of which is invested in one or more
repurchase agreements collateralized by U.S. Treasury or federal agency
obligations. At May 31, 1994, the Fund had a 0.80% undivided interest in the
repurchase agreements in the joint account. The undivided interest for the Fund
represented $8,680,000 in principal amount. As of such date, each repurchase
agreement in the joint account and the value of the collateral therefor were as
follows:
Bear Stearns & Co., Inc., 4.15% in the principal amount of $38,197,000,
repurchase price $38,201,403, due 6/1/94. The value of the collateral including
accrued interest is $39,133,248.
First Boston Corp., 4.20% in the principal amount of $250,000,000, repurchase
price $250,029,167, due 6/1/94. The value of the collateral including accrued
interest is $256,563,532.
J.P. Morgan Securities, Inc., 4.25% in the principal amount of $325,000,000,
repurchase price $325,038,368, due 6/1/94. The value of the collateral including
accrued interest is $331,501,619.
Morgan Stanley & Co., Inc., 4.20% in the principal amount of $325,000,000,
repurchase price $325,037,917, due 6/1/94. The value of the collateral including
accrued interest is $331,929,720.
Sanwa Securities (USA) Co., L.P., NYC, 4.28% in the principal amount of
$50,000,000, repurchase price $50,005,944, due 6/1/94. The value of the
collateral including accrued interest is $51,000,901.
Smith Barney Shearson Inc., 4.30% in the principal amount of $100,000,000,
repurchase price $100,011,944, due 6/1/94. The value of the collateral including
accrued interest is $102,000,216.
Note 6. Capital The Fund offers both Class A
and Class B shares. Class A shares are sold with a
front-end sales charge of up to 5.25%. Class B shares are sold with a contingent
deferred sales charge which declines from 5% to zero depending on the period of
time the shares are held. Both classes of shares have equal rights as to
earnings, assets and voting privileges except that each class bears different
distribution expenses and has exclusive voting rights with respect to its
distribution plan. There are 500 million shares of common stock, $.01 par value
per share, divided into two classes, designated
-16-
<PAGE>
<PAGE>
Class A and B common stock, each of which consists of 250 million authorized
shares.
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- ------------------------------- ----------- -------------
<S> <C> <C>
Year ended May 31, 1994:
Shares sold.................... 3,021,009 $ 55,660,417
Shares issued in reinvestment
of dividends and
distributions................ 12,903 226,280
Shares reacquired.............. (1,699,370) (32,003,995)
----------- -------------
Net increase in shares
outstanding.................. 1,334,542 $ 23,882,702
----------- -------------
----------- -------------
Year ended May 31, 1993:
Shares sold.................... 70,451 $ 936,730
Shares reacquired.............. (149,896) (1,845,560)
----------- -------------
Net decrease in shares
outstanding.................. (79,445) $ (908,830)
----------- -------------
----------- -------------
<CAPTION>
Class B
- -------------------------------
<S> <C> <C>
Year ended May 31, 1994:
Shares sold.................... 9,682,744 $ 173,195,827
Shares issued in reinvestment
of dividends and
distributions................ 71,710 1,227,160
Shares reacquired.............. (2,588,620) (46,590,712)
----------- -------------
Net increase in shares
outstanding.................. 7,165,834 $ 127,832,275
----------- -------------
----------- -------------
Year ended May 31, 1993:
Shares sold.................... 914,538 $ 11,894,021
Shares reacquired.............. (1,374,192) (17,023,023)
----------- -------------
Net decrease in shares
outstanding.................. (459,654) $ (5,129,002)
----------- -------------
----------- -------------
</TABLE>
-17-
<PAGE>
<PAGE>
PRUDENTIAL GLOBAL GENESIS FUND
Financial Highlights
<TABLE>
<CAPTION>
Class A Class B
--------------------------------------------------------------------- ------------
January 22,
1990@ Year Ended
Year Ended May 31, through May 31,
PER SHARE OPERATING ------------------------------------------------------- May 31, ------------
PERFORMANCE: 1994(D)(D) 1993(D)(D) 1992(D)(D) 1991 1990 1994(D)(D)
<S> <C> <C> <C> <C> <C> <C>
------------ ------- ------- ------ ----------- ------------
Net asset value, beginning of
period........................ $ 15.34 $12.62 $11.95 $12.62 $ 12.41 $ 14.93
------------ ------- ------- ------ ----------- ------------
Income from investment
operations
Net investment income (loss)(D)... (.03) .10 .02 (.03) (.04) (.16)
Net realized and unrealized gain
(loss) on investment and
foreign currency
transactions.................. 3.83 2.62 .65 (.64) .25 3.74
------------ ------- ------- ------ ----------- ------------
Total from investment
operations.................. 3.80 2.72 .67 (.67) .21 3.58
------------ ------- ------- ------ ----------- ------------
Less distributions
Dividends from net investment
income........................ (.15) -- -- -- -- (.05)
Distributions paid to
shareholders from net realized
gains on investment and
foreign currency
transactions.................. (.24) -- -- -- -- (.24)
------------ ------- ------- ------ ----------- ------------
Total distributions........... (.39) -- -- -- -- (.29)
------------ ------- ------- ------ ----------- ------------
Net asset value, end of
period........................ $ 18.75 $15.34 $12.62 $11.95 $ 12.62 $ 18.22
------------ ------- ------- ------ ----------- ------------
------------ ------- ------- ------ ----------- ------------
TOTAL RETURN (1):............... 25.09% 21.55% 5.61% (5.31)% 1.69% 24.16%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)......................... $ 29,221 $3,435 $3,829 $4,059 $ 2,137 $174,659
Average net assets (000)........ $ 16,909 $3,106 $3,771 $2,569 $ 1,204 $102,451
Ratios to average net assets:
Expenses, including
distribution fees(D).......... 1.48% 1.49% 1.50% 2.72% 3.90%** 2.25%
Expenses, excluding
distribution fees(D).......... 1.25% 1.29% 1.30% 2.52% 3.70%** 1.25%
Net investment income
(loss)(D)....................... (0.17)% .79% .19% (.61)% (1.71)%** (0.91)%
Portfolio turnover rate......... 31% 67% 57% 95% 72% 31%
<CAPTION>
- ---------------
PER SHARE OPERATING
PERFORMANCE: 1993(D)(D) 1992(D)(D) 1991 1990
<S> <C> <C> <C> <C>
-------------- -------------- ------- -------
Net asset value, beginning of
period........................ $ 12.38 $ 11.82 $ 12.58 $ 12.28
-------------- -------------- ------- -------
Income from investment
operations
Net investment income (loss)(D)... -- (.07) (.15) (.14)
Net realized and unrealized gain
(loss) on investment and
foreign currency
transactions.................. 2.55 .63 (.61) 1.30
-------------- -------------- ------- -------
Total from investment
operations.................. 2.55 .56 (.76) 1.16
-------------- -------------- ------- -------
Less distributions
Dividends from net investment
income........................ -- -- -- --
Distributions paid to
shareholders from net realized
gains on investment and
foreign currency
transactions.................. -- -- -- (.86)
-------------- -------------- ------- -------
Total distributions........... -- -- -- (.86)
-------------- -------------- ------- -------
Net asset value, end of
period........................ $ 14.93 $ 12.38 $ 11.82 $ 12.58
-------------- -------------- ------- -------
-------------- -------------- ------- -------
TOTAL RETURN (1):............... 20.60% 4.74% (6.04)% 9.72%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period
(000)......................... $ 36,136 $ 35,644 $40,200 $39,868
Average net assets (000)........ $ 31,561 $ 37,236 $37,689 $26,161
Ratios to average net assets:
Expenses, including
distribution fees(D)........ 2.29% 2.30% 3.48% 3.66%
Expenses, excluding
distribution fees(D)........ 1.29% 1.30% 2.48% 2.70%
Net investment income
(loss)(D)..................... (.01)% (.57)% (1.45)% (1.76)%
Portfolio turnover rate......... 67% 57% 95% 72%
- ---------------
</TABLE>
@ Commencement of offering of Class A shares.
** Annualized.
(D) Net of expense subsidies and/or fee waivers (all reported periods
except 1991).
(D)(D) Calculated based upon average shares outstanding during the fiscal
period.
(1) Total return does not consider the effects of sales loads. Total
return is calculated assuming a purchase of shares on the first
day and a sale on the last day of each period reported and includes
reinvestment of dividends and distributions. Total returns for
periods of less than a full year are not annualized.
See Notes to Financial Statements.
-18-
<PAGE>
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Board of Directors and Shareholders of
Prudential Global Genesis Fund
In our opinion, the accompanying statement of assets and liabilities, including
the portfolio of investments, and the related statements of operations and of
changes in net assets and the financial highlights present fairly, in all
material respects, the financial position of Prudential Global Genesis Fund (the
``Fund'') at May 31, 1994, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the period
then ended, in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to as
``financial statements'') are the responsibility of the Fund's management; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these financial statements in accordance
with generally accepted auditing standards which require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements, assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement presentation.
We believe that our audits, which included confirmation of securities at May 31,
1994 by correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
PRICE WATERHOUSE
1177 Avenue of the Americas
New York, New York
July 7, 1994
TAX INFORMATION
We are required by the Internal Revenue Code to advise you within 60 days of
the Fund's fiscal year end (May 31, 1994) as to the federal income tax status of
dividends paid by the Fund during such fiscal year. Accordingly, we are advising
you that during its fiscal year ended May 31, 1994 the Fund paid distributions
for Class A shares totalling $.39 per share, comprised of $.23 net investment
income and short-term capital gains which are taxable as ordinary income and
$.16 long-term capital gains which is taxable as such. The Fund paid
distributions for Class B shares totalling $.29 per share, comprised of $.13 net
investment income and short-term capital gains which are taxable as ordinary
income and $.16 long-term capital gains which is taxable as such. Further, we
wish to advise you that 7.2% of the ordinary income dividends paid in the fiscal
year ended May 31, 1994 qualified for the corporate dividends received deduction
available to corporate taxpayers.
In January 1995, you will be advised on IRS Form 1099, DIV or substitute Form
1099, as to the federal tax status of the distributions received by you in
calendar 1994. The amounts that will be reported on such Form 1099 DIV will be
the amounts to use on your federal income tax return and will differ from the
amounts which we must report for the Fund's fiscal year ended May 31, 1994.
-19-
<PAGE>
<PAGE>
Past performance is not predictive of future performance and an investor's
shares may be worth more or less than their original cost.
These graphs are furnished to you in accordance with SEC regulations. They
compare a $10,000 investment in Prudential Global Genesis Fund (Class A and
Class B) with a similar investment in the Morgan Stanley Capital International
``World'' Index (World Index) by portraying the initial account values at the
commencement of operations of each class and subsequent account values at the
end of each fiscal year (May 31), as measured on a quarterly basis, beginning in
1990 for Class A shares and in 1988 for Class B shares. For purposes of the
graphs and, unless otherwise indicated, the accompanying tables, it has been
assumed that (a) the maximum sales charge was deducted from the initial $10,000
investment in Class A shares; (b) the maximum applicable contingent deferred
sales charge was deducted from the value of the investment in Class B shares
assuming full redemption on May 31, 1994; (c) all recurring fees (including
management fees) were deducted; and (d) all dividends and distributions were
reinvested.
The World Index is a weighted index comprised of approximately 1,500
companies listed on the stock exchanges of the U.S.A., Europe, Canada,
Australia, New Zealand and the Far East. The combined market capitalization of
these companies represents approximately 60% of the aggregate market value of
the stock exchanges in the countries comprising the World Index. The World Index
is an unmanaged index and includes the reinvestment of all dividends, but does
not reflect the payment of transaction costs and advisory fees associated with
an investment in the Fund. The securities which comprise the World Index may
differ substantially from the securities in the Fund's portfolio. The World
Index is not the only index which may be used to characterize performance of
global growth equity funds and other indexes may portray different comparative
performance.
-20-
<PAGE>
Directors
Edward D. Beach
Donald D. Lennox
Douglas H. McCorkindale
Lawrence C. McQuade
Thomas T. Mooney
Richard A. Redeker
Louis A. Weil, III
Officers
Lawrence C. McQuade, President
David W. Drasnin, Vice President
Robert F. Gunia, Vice President
Susan Cote, Treasurer
S. Jane Rose, Secretary
Marguerite E.H. Morrison, Assistant Secretary
Manager
Prudential Mutual Fund Management, Inc.
One Seaport Plaza
New York, NY 10292
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07101
Distributors
Prudential Mutual Fund Distributors, Inc.
Prudential Securities Incorporated
One Seaport Plaza
New York, NY 10292
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services, Inc.
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
Price Waterhouse
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4695
One Seaport Plaza
New York, NY 10292
Toll free (800) 225-1852
Collect (908) 417-7555
This report is not authorized for
distribution to prospective investors
unless preceded or accompanied by a
current prospectus.
744333105 MF 136E
744333204 Cat #430150J
