(ICON)
Prudential
Global
Limited
Maturity
Fund, Inc.
- ----------------
Limited Maturity
Portfolio
ANNUAL
REPORT
Oct. 31, 1998
(LOGO)
<PAGE>
Prudential Global Limited Maturity Fund, Inc.
Limited Maturity Portfolio
Performance At A Glance.
Government securities such as those of Germany and the U.S.
rallied during the
year ended October 31, 1998 as a financial crisis spread
beyond Asia to global
stock, bond and currency markets. While your Prudential
Global Limited Maturity
Fund, Inc. -- Limited Maturity Portfolio held German bonds
and U.S. Treasuries,
its returns trailed the average global income fund as
measured by Lipper, Inc.
The Fund is restricted to holding short- and intermediate-
term debt securities.
These securities rallied modestly but the Lipper average
performed better since
some of its funds invested in longer term bonds, which
posted stronger gains.
The Fund also held emerging market bonds that declined in
value.
Cumulative Total Returns1
As of 10/31/98
<TABLE>
<CAPTION>
One Five
Since
Year Years
Inception2
<S> <C> <C>
<C>
Class A 3.01% 25.27%
49.38%
Class B 2.48 21.85
41.57
Class C 2.48 N/A
26.07
Class Z 3.28 N/A
6.93
Lipper Global Inc
Fund Avg.3 4.28 30.23
***
</TABLE>
Average Annual Total Returns1
As of 9/30/98
<TABLE>
<CAPTION>
One Five
Since
Year Years
Inception2
<S> <C> <C>
<C>
Class A -1.36% 4.19%
4.76%
Class B -1.83 4.22
4.46
Class C 0.17 N/A
5.65
Class Z 1.83 N/A
3.80
</TABLE>
Distributions and Yields
As of 10/31/98
<TABLE>
<CAPTION>
Total Distributions
30-Day
Paid for 12 Mos.
SEC Yield
<S> <C>
<C>
Class A $0.86
7.64%
Class B $0.80
7.26
Class C $0.80
7.27
Class Z $0.87
8.02
</TABLE>
Past performance is not indicative of future results.
Principal and investment
return will fluctuate so that an investor's shares, when
redeemed, may be
worth more or less than their original cost.
1 Source: Prudential Investments Fund Management and Lipper,
Inc. The
cumulative total returns do not take into account sales
charges. The average
annual total returns do take into account applicable sales
charges. The Fund
charges a maximum front-end sales load of 3% for Class A
shares. Class B
shares are subject to a declining contingent deferred sales
charge (CDSC) of
3%, 2%, 1% and 1% for four years. Class B shares will
automatically convert to
Class A shares, on a quarterly basis, approximately five
years after purchase.
As of November 2, 1998, Class C shares carry a front-end
sales charge of 1%
and a CDSC of 1% for 18 months. Class Z shares are not
subject to a sales
charge or distribution fee.
2 Inception dates: Class A and B, 11/1/90; Class C, 8/1/94;
Class Z, 1/27/97.
3 Lipper average returns are for all funds in each share
class for the one- and
five-year periods in the Global Income Fund category.
***Lipper Since Inception returns are74.45% for Class A and
Class B, 37.49%
for Class C, and 8.26% for Class Z based on all funds in
each share class.
How Investments Compared.
(As of 10/31/98)
(GRAPH)
Source: Lipper, Inc. Financial markets change, so a mutual
fund's past
performance should never be used to predict future results.
The risks to each
of the investments listed above are different -- we provide
12-month total
returns for several Lipper mutual fund categories to show
you that reaching
for higher returns means tolerating more risk. The greater
the risk, the
larger the potential reward or loss. In addition, we've
included historical
20-year average annual returns. These returns assume the
reinvestment of
dividends.
U.S. Growth Funds will fluctuate a great deal. Investors
have received higher
historical total returns from stocks than from most other
investments. Smaller
capitalization stocks offer greater potential for long-term
growth but may be
more volatile than larger capitalization stocks.
General Bond Funds provide more income than stock funds,
which can help smooth
out their total returns year by year. But their prices still
fluctuate
(sometimes significantly) and their returns have been
historically lower than
those of stock funds.
General Municipal Debt Funds invest in bonds issued by state
governments,
state agencies and/or municipalities. This investment
provides income that is
usually exempt from federal and state income taxes.
U.S. Taxable Money Funds attempt to preserve a constant
share value; they
don't fluctuate much in price but, historically, their
returns have been
generally among the lowest of the major investment
categories.
<PAGE>
Gabriel Irwin and Simon Wells, Fund Managers
(PHOTOS)
Portfolio
Managers'
Report
The Fund seeks total return by investing primarily in debt
securities
denominated in the U.S. dollar and a range of foreign
currencies. The Fund's
weighted average maturity ranges from more than two but less
than five years,
with each security generally maturing in no more than 10
years. The Fund may
invest up to 20% of total investments in securities rated
below investment
grade, but with a minimum rating of single-B by Moody's
Investors Service or
Standard & Poor's Ratings Services or another nationally
recognized credit
rating organization. The Fund is nondiversified, meaning it
may invest more
than five percent of its total assets in the securities of
one or more
issuers. This carries greater risk and greater share price
volatility than
investments held in a more diversified portfolio.
Record Rally.
Prices of German government securities climbed sharply as
investors favored
bonds that could easily be sold at their true value despite
the turbulent
market conditions of the past 12 months. The 10-year German
government bond
yield, which falls as bond prices rise, reached a record low
of 3.74% in early
October of 1998.
Strategy Session.
Financial woes that first emerged in East Asia in 1997 grew
into a global
crisis during the fiscal year. At the crux of the problem
were poorly
regulated Asian banks and finance companies that lent freely
on risky
projects. With local and foreign institutions pumping money
into the region,
some Asian economies expanded rapidly and prices of assets
such as real estate
and stocks soared. But these financial bubbles burst last
year, spreading a
contagion that infected world stock, bond and currency
markets. Investors
sought refuge in government securities of Western European
countries and the
U.S.
The global financial crisis seemed to have eased early in
the spring of 1998.
But the situation deteriorated in August as Russia succumbed
to the financial
contagion, leaving investors to wonder if Latin America
would be next. Soon
after, global equity markets crumbled and a severe
contraction in liquidity
occurred as lenders and investors were reluctant to provide
businesses with
money.
Such turbulent market conditions fueled a renewed stampede
into "safe haven"
securities. To reassure investors, the Federal Reserve
lowered the federal
funds rate (the rate banks charge each other to borrow money
overnight) by a
quarter percentage point to 5.25% in late September. But
disappointment over
this modest change stirred such great demand for Treasuries
that the 30-year
Treasury bond yield, which falls when bond prices rise, slid
to 4.71% in early
October. This was the lowest level in more than 30 years.
Then the federal
funds rate was unexpectedly cut to 5.00%. The unusual timing
of this move
(between the Federal Reserve's regularly scheduled meetings)
helped convince
investors that the central bank would do what it could to
prevent a recession
in the U.S. that could damage an already-fragile global
economy.
Portfolio Composition.
Sectors expressed as a percentage of
total investments as of 10/31/98.
(PIE CHART)
<PAGE>
What Went Well.
A Wise Choice.
Focusing on top-quality government bonds proved to be a very
wise choice since
global financial markets remained volatile. During the final
months of the
fiscal year, the greatest concern in the bond markets was
about the lack of
liquidity rather than the risk of default or the future
direction of interest
rates. This lack of liquidity meant there was little trading
in the market
except in the most popular securities such as U.S.
Treasuries and German
government bonds. For example, the difference between buy
and sell prices of
emerging market bonds widened significantly, indicating that
some investors
were not willing to take a chance on these riskier debt
securities.
We had increased bonds denominated in the German currency to
nearly 15% of the
Portfolio's total investments as of October 31, 1998 from 6%
a year earlier.
Of these, German government bonds rallied strongly as
investors dumped stocks
and bought good quality securities amid fear that a downturn
in the world
economy would crimp corporate profits. In early October of
1998, this flight
to quality drove down the 10-year German government bond
yield to a record
low of 3.74%. Not surprisingly, this historic level was
reached right around
the same time that the 30-year U.S. Treasury bond yield fell
to its lowest
level in 30 years. Bonds denominated in the U.S. dollar
comprised more than
30% of the Portfolio's total investments throughout the 12-
month period.
We also held small positions in government bonds of Poland
(1.3%) and Greece
(3.0%) as of October 31, 1998 that performed well.
Anticipation that Poland
will join the European union and Greece will meet its goal
of joining the
single European currency in 2001 buoyed prices of these
bonds.
And Not So Well.
Maturity Restrictions.
During a strong rally, the Portfolio's returns tend to lag
the Lipper average
because we are required to primarily hold bonds maturing in
10 years or less.
These bonds gain less than longer term bonds of comparable
credit quality as
interest rates fall. Therefore, the Portfolio's returns
reflected modest gains
in the prices of short- and intermediate-term bonds, while
the Lipper average
included funds that benefitted from the sharp rally in long-
term bonds. (Keep
in mind, however, the Portfolio also exhibits defensive
characteristics when
interest rates rise because short- and intermediate-term
bond prices generally
tumble less than prices of bonds with longer maturities.)
Another factor that hurt the Portfolio's performance was its
modest holdings
of Russian Finance Ministry bonds. They took a beating after
that nation's
stock, bond and currency markets collapsed during the
summer.
Five Largest Issuers.
19.5% U.S. Treasury Bonds
8.8% German Gov't Bonds
6.8% Danish Gov't Bonds
6.3% Queensboro Treasury
Corp. Gov't Bonds
5.5% Spanish Gov't Bonds
Expressed as a percentage of net assetsas of 10/31/98.
Looking Ahead.
We believe the global economy will continue to slow in 1999.
Japan remains
mired in a recession. In the West, the German and French
economies will
probably grow more slowly than expected; the U.K. may be
headed toward
recession and many U.S. manufacturing companies are
admittedly worried about
their business prospects. If this scenario unfolds next
year, inflation should
remain low, interest rates fall and bond prices rise
further, at least among
core government bond markets such as the U.S., France,
Germany and the U.K.
In the emerging markets, however, our outlook remains
guarded. Latin American
bond prices could decline if governments and corporations
that were unable to
borrow money in the bond markets during the fourth quarter
issue a flood of
debt securities in the new year.
- ------------------------------------------------------------
- -------------------
1
<PAGE>
President's Letter
December 18, 1998
(PHOTO)
Dear Shareholder:
As 1998 draws to a close, the news from the financial
markets is decidedly
mixed. After a series of sharp sell-offs in late summer,
some stock prices
began to rebound in early fall, helped by three interest
rate cuts by the
Federal Reserve.
There was other good news. U.S. Treasuries and Western
European bonds
appreciated during the year as investors fled troubled Asian
markets and other
emerging markets. The U.S. economy remained strong with
steady growth and low
inflation.
The periods of uncertainty we experienced in 1998 illustrate
why it is
important to manage your expectations and diversify your
portfolio.
Keep A Good Perspective.
Experienced mutual fund investors understand that financial
markets will
always rise and fall - that's what markets do. Although past
performance may
not be indicative of future results, stocks and bonds have,
over time,
consistently produced attractive returns that have kept
ahead of inflation.
In fact, investors who remained focused on the long term and
did not sell
during summer's volatility were rewarded. Stock prices, as
measured by the
Standard & Poor's 500 Index, recovered strongly in November
regaining lost
ground and even setting a new record high.
Diversify. Diversify. Diversify.
Because asset classes seldom move in lockstep, owning a mix
of stock, bond,
and money market mutual funds can help lessen the effects of
a market
downturn over time. In fact, a well-diversified portfolio
may retain or
perhaps even gain value during times of uncertainty.
We're Here To Help.
How diversified is your portfolio? Your Prudential
professional will be glad
to review your current allocations. He or she will recommend
adjustments
based upon your goals, market conditions, risk tolerance,
and potential
investment opportunities.
Thank you for your confidence in Prudential mutual funds.
We'll continue to do
our part in keeping you informed.
Sincerely,
Brian M. Storms
President
- ------------------------------------------------------------
- -------------------
2
<PAGE>
PRUDENTIAL GLOBAL LIMITED
MATURITY
FUND, INC.
Portfolio of Investments as of October 31, 1998 LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal US$
Amount Value
(000) Description (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
LONG-TERM INVESTMENTS--85.0%
- ------------------------------------------------------------
Australia--10.1%
A$ 3,750 Federal National Mortgage
Association,
6.375%, 8/15/07 $ 2,477,437
6,000 Queensland Treasury Corporation,
8.00%, 5/14/03 4,202,212
-----------
6,679,649
- ------------------------------------------------------------
Canada--4.7%
C$ 2,000 British Columbia Municipal Fin.
Auth.,
6.75%, 4/24/07 1,386,734
2,500 Province of Quebec,
6.50%, 10/1/07 1,697,052
-----------
3,083,786
- ------------------------------------------------------------
Denmark--6.8%
DKr 25,000 Danish Government Bonds,
7.00%, 12/15/04 4,511,015
- ------------------------------------------------------------
Germany--14.6%
DM 7,000 Deutsche Bundesrepublik Principal
Strip,
Zero Coupon, 7/4/07 2,936,999
4,250 German Government Bonds,
6.00%, 1/5/06 2,863,698
3,000 Republic of Columbia,
7.25%, 12/21/00 1,763,321
3,000 Tokyo Gas Co. Ltd.,
7.00%, 7/27/05 2,085,035
-----------
9,649,053
- ------------------------------------------------------------
Greece--3.0%
Hellenic Republic,
GRD 200,000 11.00%, 11/26/99 695,278
40,000 9.20%, 3/21/02 141,329
325,000 12.70%, 12/31/03, FRN 1,151,189
-----------
1,987,796
Hungary--0.4%
HUF 50,000 Hungarian Government Bonds,
16.00%, 4/12/00 $ 228,985
- ------------------------------------------------------------
Netherlands--2.2%
NLG 2,500 Dutch Government Bonds,
6.50%, 4/15/03 1,486,414
- ------------------------------------------------------------
New Zealand--4.5%
NZ$ 2,800 Federal National Mortgage
Association,
7.25%, 6/20/02 1,534,829
1,400 Int'l. Bank Recon. & Dev.,
7.25%, 5/27/03 768,895
1,200 New Zealand Government Bonds,
8.00%, 4/15/04 713,948
-----------
3,017,672
- ------------------------------------------------------------
Russia--0.1%
European Bank Recon. & Dev.,
Rub 2,200 31.00%, 5/5/00 13,174
3,500 Zero Coupon, 5/28/02 7,335
-----------
20,509
- ------------------------------------------------------------
Spain--5.5%
Spanish Government Bonds,
Pts 200,000 10.30%, 6/15/02 1,731,629
225,000 8.00%, 5/30/04 1,909,745
-----------
3,641,374
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 3
<PAGE>
PRUDENTIAL GLOBAL LIMITED
MATURITY
FUND, INC.
Portfolio of Investments as of October 31, 1998 LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal US$
Amount Value
(000) Description (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
Sweden--2.7%
SEK 13,000 Swedish Government Bonds,
6.00%, 2/9/05 $ 1,809,068
- ------------------------------------------------------------
United Kingdom--3.5%
BP 447 Banco Central Del Uruguay, FRN,
8.875%, 2/19/07 642,026
900 Powergen PLC,
8.875%, 3/26/03 1,639,056
-----------
2,281,082
- ------------------------------------------------------------
United States--26.9%
Central Banks--1.1%
US$ 750 Banco del Estado Chile,
8.39%, 8/1/01 746,295
- ------------------------------------------------------------
Sovereign Bonds--5.6%
500 Jamaican Government Bonds,
9.625%, 7/2/02 400,000
Ministry of Finance (Russia),
600 9.25%, 11/27/01 172,800
1,000 10.00%, 6/26/07 241,250
1,466 Republic of Croatia, FRN,
6.5625%, 7/31/06 1,069,989
400 Republic of Lithuania,
7.125%, 7/22/02 360,000
500 Sultan of Oman,
7.125%, 3/20/02 505,000
1,015 Trinidad & Tobago Republic,
9.75%, 11/3/00 982,013
-----------
3,731,052
Supranational Bonds--0.7%
US$ 500 Corporacion Andina de Formento,
6.1625%, 4/3/01 $ 490,000
- ------------------------------------------------------------
U.S. Government Obligations--19.5%
United States Treasury Bonds,
4,750 6.125%, 9/30/00 4,904,375
1,000 7.875%, 11/15/04 1,175,780
1,000 5/15/05, P/O 739,330
5,500 6.25%, 2/15/07 6,099,830
-----------
12,919,315
-----------
17,886,662
-----------
Total long-term investments
(cost US$57,978,825) 56,283,065
-----------
- ------------------------------------------------------------
SHORT-TERM INVESTMENTS--13.2%
- ------------------------------------------------------------
Hungary--1.4%
Hungarian Government Bonds,
HUF 65,000 16.50%, 4/12/99 298,800
130,000 16.50%, 7/24/99 598,188
-----------
896,988
- ------------------------------------------------------------
Netherlands--1.6%
NLG 2,000 Republic of Argentina,
7.625%, 7/5/99 1,027,975
- ------------------------------------------------------------
Poland--1.3%
Polish Treasury Bills,
PLN 1,700 15.30%, 2/17/99 469,788
600 15.25%, 3/3/99 164,755
900 15.25%, 4/28/99 240,374
-----------
874,917
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 4
<PAGE>
PRUDENTIAL GLOBAL LIMITED
MATURITY FUND, INC.
LIMITED MATURITY PORTFOLIO
Portfolio of Investments as of October 31, 1998
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Principal US$
Amount Value
(000) Description (Note 1)
<C> <S> <C>
- ------------------------------------------------------------
United States--2.9%
US$ 1,000 Cadbury Schweppes, PLC,
6.25%, 10/4/99 $ 1,009,500
1,000 Petroleas Mexicano, FRN,
6.59375%, 3/8/99 987,000
-----------
1,996,500
- ------------------------------------------------------------
Repurchase Agreement--6.0%
3,956 Joint Repurchase Agreement
Account,
5.40%, 11/2/98, (Note 5) 3,956,000
-----------
Total short-term investments
(cost US$8,923,920) 8,752,380
-----------
- ------------------------------------------------------------
Total Investments--98.2%
(cost US$66,902,745; Note 4) 65,035,445
Other assets in excess of
liabilities--1.8% 1,163,701
-----------
Net Assets--100% $66,199,146
-----------
-----------
</TABLE>
- ---------------
Portfolio securities are classified by country according to
the security's
currency denomination.
FRN--Floating Rate Note.
P/O--Principal Only.
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 5
<PAGE>
PRUDENTIAL GLOBAL LIMITED
MATURITY
FUND, INC.
Statement of Assets and Liabilities LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
<TABLE>
Assets
October 31, 1998
<S>
<C>
Investments, at value (cost
$66,902,745)................................................
.................. $ 65,035,445
Foreign currency, at value (cost
$693).......................................................
............. 725
Cash........................................................
..............................................
918
Interest
receivable..................................................
..................................... 1,706,869
Forward currency contracts--net amount receivable from
counterparties.....................................
33,575
Other
assets......................................................
........................................ 2,346
- ----------------
Total
assets......................................................
..................................... 66,779,878
- ----------------
Liabilities
Accrued
expenses....................................................
...................................... 211,379
Payable for Fund shares
reacquired..................................................
...................... 147,287
Dividends
payable.....................................................
.................................... 119,982
Forward currency contracts - net amount payable to
counterparties.........................................
60,939
Management fee
payable.....................................................
............................... 31,222
Distribution fee
payable.....................................................
............................. 9,324
Withholding taxes
payable.....................................................
............................ 599
- ----------------
Total
liabilities.................................................
..................................... 580,732
- ----------------
Net
Assets......................................................
.......................................... $
66,199,146
- ----------------
- ----------------
Net assets were comprised of:
Common stock, at
par.........................................................
.......................... $ 8,481
Paid-in capital in excess of
par.........................................................
.............. 120,850,582
- ----------------
120,859,063
Distributions in excess of net investment
income......................................................
. (93,217)
Accumulated net realized loss on
investments.................................................
.......... (52,716,140)
Net unrealized depreciation on investments and foreign
currencies......................................
(1,850,560)
- ----------------
Net assets, October 31,
1998........................................................
...................... $ 66,199,146
- ----------------
- ----------------
Class A:
Net asset value and redemption price per share
($64,537,552 / 8,269,780 shares of common stock issued
and outstanding).............................
$7.80
Maximum sales charge (3.00% of offering
price)......................................................
... .24
- ----------------
Maximum offering price to
public......................................................
................. $8.04
- ----------------
- ----------------
Class B:
Net asset value, offering price and redemption price per
share
($1,561,964 / 198,916 shares of common stock issued
and outstanding)................................
$7.85
- ----------------
- ----------------
Class C:
Net asset value, offering price and redemption price per
share
($50,932 / 6,486 shares of common stock issued and
outstanding).....................................
$7.85
- ----------------
- ----------------
Class Z:
Net asset value, offering price and redemption price per
share
($48,698 / 6,212 shares of common stock issued and
outstanding).....................................
$7.84
- ----------------
- ----------------
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 6
<PAGE>
PRUDENTIAL GLOBAL LIMITED
MATURITY FUND, INC.
LIMITED MATURITY PORTFOLIO
Statement of Operations
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Year
Ended
Net Investment Income October 31,
1998
<S> <C>
Income
Interest (net of foreign withholding tax of
$564)................................... $
6,122,897
-----------
- -----
Expenses
Management fee.............................
419,960
Distribution fee--Class A..................
110,779
Distribution fee--Class B..................
17,979
Distribution fee--Class C..................
477
Custodian's fees and expenses..............
150,000
Transfer agent's fees and expenses.........
136,000
Reports to shareholders....................
96,000
Registration fees..........................
55,000
Audit fees and expenses....................
30,000
Directors' fees and expenses...............
19,000
Legal fees and expenses....................
15,000
Miscellaneous..............................
7,247
-----------
- -----
Total expenses..........................
1,057,442
-----------
- -----
Net investment income.........................
5,065,455
-----------
- -----
Realized and Unrealized
Gain (Loss) on Investments and
Foreign Currency Transactions
Net realized gain (loss) on:
Investment transactions....................
(3,154,390)
Foreign currency transactions..............
(589,791)
-----------
- -----
(3,744,181)
-----------
- -----
Net change in unrealized appreciation (depreciation) of:
Investments................................
608,777
Foreign currencies.........................
601,701
-----------
- -----
1,210,478
-----------
- -----
Net loss on investments and foreign
currencies.................................
(2,533,703)
-----------
- -----
Net Increase in Net Assets
Resulting from Operations..................... $
2,531,752
-----------
- -----
-----------
- -----
</TABLE>
PRUDENTIAL GLOBAL LIMITED
MATURITY FUND, INC.
LIMITED MATURITY PORTFOLIO
Statement of Changes in Net Assets
- ------------------------------------------------------------
<TABLE>
<CAPTION>
Increase (Decrease) Year Ended October
31,
in Net Assets 1998
1997
<S> <C> <C>
Operations
Net investment income......... $ 5,065,455 $
6,948,119
Net realized gain (loss) on
investment and foreign
currency transactions...... (3,744,181)
3,939,377
Net change in unrealized
appreciation (depreciation)
of investments and foreign
currencies................. 1,210,478
(5,664,378)
---------------- -----
- -------
Net increase in net assets
resulting from operations..... 2,531,752
5,223,118
---------------- -----
- -------
Dividends and distributions (Note
1):
Dividends from net investment income
Class A.................... (4,900,891)
(5,803,256)
Class B.................... (157,098)
(1,137,460)
Class C.................... (4,724)
(7,370)
Class Z.................... (2,742)
(33)
---------------- -----
- -------
(5,065,455)
(6,948,119)
---------------- -----
- -------
Distributions in excess of net
investment income
Class A.................... (2,132,264)
(2,383,691)
Class B.................... (68,349)
(802,612)
Class C.................... (2,055)
(1,338)
Class Z.................... (1,193)
(4)
---------------- -----
- -------
(2,203,861)
(3,187,645)
---------------- -----
- -------
Tax return of capital
distributions
Class A.................... (964,282)
- --
Class B.................... (30,910)
- --
Class C.................... (929)
- --
Class Z.................... (539)
- --
---------------- -----
- -------
(996,660)
- --
---------------- -----
- -------
Fund share transactions (net of
share conversions) (Note 6)
Net proceeds from shares
sold....................... 910,000
15,362,799
Net asset value of shares
issued in reinvestment of
dividends and
distributions.............. 4,998,800
5,830,223
Cost of shares reacquired..... (23,133,758)
(41,030,001)
---------------- -----
- -------
Net decrease in net assets from
Fund share transactions....... (17,224,958)
(19,836,979)
---------------- -----
- -------
Total decrease................... (22,959,182)
(24,749,625)
Net Assets
Beginning of year................ 89,158,328
113,907,953
---------------- -----
- -------
End of year(a)................... $ 66,199,146 $
89,158,328
---------------- -----
- -------
---------------- -----
- -------
- ---------------
(a) Includes undistributed net
investment income of: $ -- $
4,198,301
---------------- -----
- -------
</TABLE>
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 7
<PAGE>
PRUDENTIAL
GLOBAL LIMITED
MATURITY
FUND, INC.
Notes to Financial Statements LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
Prudential Global Limited Maturity Fund, Inc. (the 'Fund')
is registered under
the Investment Company Act of 1940 as a nondiversified, open-
end, management
investment company. The Fund was incorporated in Maryland on
February 21, 1990.
The Limited Maturity Portfolio (the 'Portfolio') commenced
investment operations
on November 1, 1990. The investment objective of the
Portfolio is to maximize
total return, the components of which are current income and
capital
appreciation, by investing primarily in a portfolio of
investment grade debt
securities. The ability of the issuers of the debt
securities held by the Fund
to meet their obligations may be affected by economic
developments in a specific
country or industry.
- ------------------------------------------------------------
Note 1. Accounting Policies
The following is a summary of significant accounting
policies followed by the
Fund in the preparation of its financial statements.
Securities Valuation: In valuing the Fund's assets,
quotations of foreign
securities in a foreign currency are converted to U.S.
dollar equivalents at the
then current currency value. Government securities for which
quotations are
available will be based on prices provided by an independent
pricing service or
broker-dealer. Other portfolio securities that are actively
traded in the
over-the-counter market, including listed securities for
which the primary
market is believed to be over-the-counter, will be valued at
the average of the
quoted bid and asked prices provided by an independent
pricing service or by
principal market makers. Any security for which the primary
market is on an
exchange is valued at the last sale price on such exchange
on the day of
valuation or, if there was no sale on such day, at the mean
between the last bid
and asked prices on such day or at the bid price on such day
in the absence of
an asked price. Securities for which market quotations are
not readily available
are valued at fair value as determined in good faith by or
under the direction
of the 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 triparty 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
closing daily rate 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 at the
foreign exchange rates
and market values at the close of the fiscal period, 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 end of the fiscal period.
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 debt
securities sold during the fiscal period. Accordingly, such
realized foreign
currency gains and losses are included in the reported net
realized gains
(losses) on investment transactions.
Net realized gain on foreign currency transactions
represents net foreign
exchange gains or losses from sales and maturities of short-
term securities,
holding of foreign currencies, currency gains or losses
realized between the
trade and settlement dates on security transactions, and the
difference between
the amounts of interest and foreign taxes recorded on the
Fund's books and the
U.S. dollar equivalent amounts actually received or paid.
Net unrealized
currency gains and losses from valuing foreign currency
denominated assets and
liabilities at fiscal period end exchange rates are
reflected as a component of
net unrealized appreciation/depreciation on investments and
foreign currencies.
Foreign security and currency transactions may involve
certain considerations
and risks not typically associated with those of U.S.
companies as a result of,
among other factors, the possibility of political and
economic instability and
the level of governmental supervision and regulation of
foreign securities
markets.
Forward Currency Contracts: A forward currency contract is a
commitment to
purchase or sell a foreign currency at a future date at a
negotiated forward
rate. The Fund enters into forward currency contracts in
order to hedge its
exposure to changes in foreign currency exchange rates on
its
- ------------------------------------------------------------
- --------------------
8
<PAGE>
PRUDENTIAL
GLOBAL LIMITED
MATURITY
FUND, INC.
Notes to Financial Statements LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
foreign portfolio holdings or on specific receivables and
payables denominated
in a foreign currency. The contracts are valued daily at
current exchange rates
and any unrealized gain or loss is included in net
unrealized appreciation or
depreciation on investments and foreign currencies. Gain or
loss is realized on
the settlement date of the contract equal to the difference
between the
settlement value of the original and renegotiated forward
contracts. This gain
or loss, if any, is included in net realized gain (loss) on
foreign currency
transactions. Risks may arise upon entering into these
contracts from the
potential inability of the counterparties to meet the terms
of their contracts.
Securities Transactions and Net Investment Income:
Securities transactions are
recorded on the trade date. Realized gains and losses from
security and currency
transactions are calculated on the identified cost basis.
Interest income is
recorded on the accrual basis. The Fund amortizes discounts
on purchases of debt
securities as adjustments to income. Expenses are recorded
on the accrual basis
which may require the use of certain estimates by
management.
Net investment income (other than distribution fees) and
unrealized and realized
gains or losses are allocated daily to each class of shares
based upon the
relative proportion of net assets of each class at the
beginning of the day.
Dividends and Distributions: The Fund declares daily and
pays dividends from
book basis net investment income monthly and makes
distributions at least
annually of any net capital gains. 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 for
foreign currency transactions.
Reclassification of Capital Accounts: The Portfolio accounts
and reports for
distributions to shareholders in accordance with American
Institute of Certified
Public Accountants (AICPA) 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 decrease undistributed net investment
income by
$1,090,997, decrease accumulated net realized losses by
$2,087,657 and decrease
paid-in capital in excess of par by $996,660. This was
primarily the result of
net foreign currency losses and an overdistribution of
taxable income for the
year ended October 31, 1998. Net investment income, net
realized gains and net
assets were not affected by this change.
Federal Income Taxes: It is the intent of the Fund to
continue to meet the
requirements of the Internal Revenue Code applicable to
regulated investment
companies and to distribute all of its taxable income to
shareholders.
Therefore, no federal income tax provision is required.
- ------------------------------------------------------------
Note 2. Agreements
The Fund has a management agreement with Prudential
Investments Fund Management
LLC ('PIFM'). Pursuant to this agreement, PIFM has
responsibility for all
investment advisory services and supervises the subadviser's
performance of such
services. PIFM has entered into a subadvisory agreement with
The Prudential
Investment Corporation ('PIC'); PIC, through an agreement
with PRICOA Asset
Management Ltd. ('PRICOA'), furnishes investment advisory
services in connection
with the management of the Fund. PIFM pays for the services
of PIC, the cost of
compensation of officers of the Fund, occupancy and certain
clerical and
bookkeeping costs of the Fund. PIC pays for the services of
PRICOA. The Fund
bears all other costs and expenses.
The management fee paid PIFM is computed daily and payable
monthly at an annual
rate of .55 of 1% of the average daily net assets of the
Portfolio.
The Fund had a distribution agreement with Prudential
Securities Incorporated
('PSI'), which acted as the distributor of the Class A,
Class B, Class C and
Class Z shares of the Fund through May 31, 1998. Prudential
Investment
Management Services LLC ('PIMS') became the distributor of
the Fund effective
June 1, 1998 and is serving the Fund under the same terms
and conditions as
under the arrangement with PSI. The Fund compensated PSI and
PIMS for
distributing and servicing the Fund's Class A, Class B and
Class C shares
pursuant to plans of distribution (the 'Class A, B and C
Plans'), regardless of
expenses actually incurred by them. The distribution fees
are accrued daily and
payable monthly. No distribution or service fees were paid
to PSI or PIMS as
distributor of the Class Z shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensated
PSI and PIMS for
distribution-related activities at an annual rate of up to
.30 of 1%, 1%, and
1%, of the average daily net assets of the Class A, B and C
shares,
respectively. Such expenses under the Plans were .15 of 1%,
.75 of 1% and .75 of
1% of the average daily net assets of the Class A, B and C
shares, respectively,
for the year ended October 31, 1998.
PSI and PIMS have advised the Fund that they received
approximately $2,400 in
front-end sales charges resulting from sales of Class A
shares during the year
ended October 31, 1998. From these fees, PSI and PIMS
- ------------------------------------------------------------
- --------------------
9
<PAGE>
PRUDENTIAL
GLOBAL LIMITED
MATURITY
FUND, INC.
Notes to Financial Statements LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
paid such sales charges to affiliated broker-dealers, which
in turn paid
commissions to salespersons and incurred other distribution
costs.
PSI and PIMS have advised the Fund that for the year ended
October 31, 1998,
they received approximately $6,900 and $600 in contingent
deferred sales charges
imposed upon certain redemptions by Class B and C
shareholders, respectively.
The Fund, along with other affiliated registered investment
companies (the
'Funds'), has a credit agreement (the 'Agreement') with an
unaffiliated lender.
The maximum commitment under the Agreement is $200,000,000.
Interest on any such
borrowings outstanding will be at market rates. The purpose
of the Agreement is
to serve as an alternative source of funding for capital
share redemptions. The
Fund did not borrow any amounts pursuant to the Agreement
for the year ended
October 31, 1998. The Funds pay a commitment fee at an
annual rate of .055 of 1%
on the unused portion of the credit facility. The commitment
fee is accrued and
paid quarterly on a pro rata basis by the Funds. The
Agreement expired on
December 30, 1997 and has been extended through December 29,
1998 under the same
terms.
PSI, PIFM, PIC, PIMS and PRICOA are indirect, wholly owned
subsidiaries of The
Prudential Insurance Company of America.
- ------------------------------------------------------------
Note 3. Other Transactions With Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), a wholly owned
subsidiary of PIFM,
serves as the Fund's transfer agent and during the year
ended October 31, 1998,
the Portfolio incurred fees of approximately $118,000 for
the services of PMFS.
As of October 31, 1998, approximately $8,000 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 nonaffiliates.
- ------------------------------------------------------------
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than
short-term investments,
for the year ended October 31, 1998 aggregated $27,944,541
and $49,294,551,
respectively.
The United States federal income tax basis of the
Portfolio's investments at
October 31, 1998 was substantially the same as for financial
reporting purposes
and, accordingly, net unrealized depreciation of investments
was $1,867,300
(gross unrealized appreciation--$2,062,528; gross unrealized
depreciation--$3,929,828).
For federal income tax purposes, the Portfolio had a capital
loss carryforward
as of October 31, 1998, of approximately $52,716,100 of
which $4,207,200 expires
in 2000, $32,949,600 expires in 2001, $12,011,000 expires in
2002, $1,565,600
expires in 2003, $326,200 expires in 2004 and $1,656,500
expires in 2006.
Accordingly, no capital gains distributions are expected to
be paid to
shareholders until future net gains have been realized in
excess of such
carryforward.
At October 31, 1998, the Portfolio had outstanding forward
currency contracts to
sell foreign currencies as follows:
<TABLE>
<CAPTION>
Value at
Forward Currency Settlement Date Current
Appreciation
Sale Contracts Receivable Value
(Depreciation)
- ------------------------- --------------- ----------- --
- ----------
<S> <C> <C>
<C>
Australian Dollars,
expiring 11/25/98...... $ 9,521,535 $ 9,569,245
$(47,710)
Canadian Dollars,
expiring 11/25/98...... 2,868,793 2,865,538
3,255
French Francs,
expiring 11/25/98...... 3,834,724 3,822,747
11,977
Japanese Yen,
expiring 11/25/98...... 848,293 861,522
(13,229)
Swiss Francs,
expiring 11/25/98...... 5,282,738 5,264,395
18,343
--------------- ----------- --
- ----------
$22,356,083 $22,383,447
$(27,364)
--------------- ----------- --
- ----------
--------------- ----------- --
- ----------
</TABLE>
- ------------------------------------------------------------
Note 5. Joint Repurchase Agreement Account
The Portfolio, along with other affiliated registered
investment 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. As of October 31,
1998, the Portfolio has a 0.4% undivided interest in the
repurchase agreements
in the joint account. The undivided interest for the
Portfolio represents
$3,956,000 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., 5.40%, in the principal amount of
$260,000,000,
repurchase price $260,117,000, due 11/2/98. The value of the
collateral
including accrued interest was $265,935,719.
Deutsche Bank Securities, Inc., 5.41%, in the principal
amount of $260,000,000,
repurchase price $260,117,217, due 11/2/98. The value of the
collateral
including accrued interest was $265,200,735.
- ------------------------------------------------------------
- --------------------
10
<PAGE>
PRUDENTIAL
GLOBAL LIMITED
MATURITY
FUND, INC.
Notes to Financial Statements LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
Salomon Smith Barney Inc., 5.40%, in the principal amount of
$260,000,000,
repurchase price $260,117,000, due 11/2/98. The value of the
collateral
including accrued interest was $265,365,298.
Warburg Dillon Read LLC, 5.38%, in the principal amount of
$160,825,000,
repurchase price $160,897,103, due 11/2/98. The value of the
collateral
including accrued interest was $164,045,205.
- ------------------------------------------------------------
Note 6. Capital
The Portfolio offers Class A, Class B, Class C and Class Z
shares. Class A
shares are sold with a front-end sales charge of up to 3.0%.
Class B shares are
sold with a contingent deferred sales charge which declines
from 3% to zero
depending on the period of time the shares are held. Prior
to November 2, 1998,
Class C shares were sold with a contingent deferred sales
charge of 1% during
the first year. Effective November 2, 1998, Class C shares
are sold with a
front-end sales charge of 1% and a contingent deferred sales
charge of 1% during
the first 18 months. Class B shares will automatically
convert to Class A shares
on a quarterly basis approximately five years after
purchase. A special exchange
privilege is also available for shareholders who qualified
to purchase Class A
shares at net asset value. Class Z shares are not subject to
any sales or
redemption charge and are offered exclusively for sale to a
limited group of
investors. The Portfolio has authorized 2 billion shares of
common stock at
$.001 par value per share equally divided into Class A, B, C
and Z shares.
Transactions in shares of common stock for the fiscal years
ended October 31,
1998 and 1997 were as follows.
<TABLE>
<CAPTION>
Class A Shares
Amount
- ------------------------------------ ---------- --------
- ----
<S> <C> <C>
Year ended October 31, 1998:
Shares sold......................... 60,910 $
492,071
Shares issued in reinvestment of
dividends and distributions....... 595,087
4,814,179
Shares reacquired................... (2,675,177)
(21,698,873)
---------- --------
- ----
Net decrease in shares outstanding
before conversion................. (2,019,180)
(16,392,623)
Shares issued upon conversion from
Class B........................... 165,902
1,366,795
---------- --------
- ----
Net decrease in shares
outstanding....................... (1,853,278)
$(15,025,828)
---------- --------
- ----
---------- --------
- ----
<CAPTION>
Class A Shares
Amount
- ------------------------------------ ---------- --------
- ----
<S> <C> <C>
Year ended October 31, 1997:
Shares sold......................... 1,677,463 $
14,801,446
Shares issued in reinvestment of
dividends and distributions....... 550,154
4,710,600
Shares reacquired................... (2,618,160)
(22,399,789)
---------- --------
- ----
Net decrease in shares outstanding
before conversion................. (390,543)
(2,887,743)
Shares issued upon conversion from
Class B........................... 2,682,675
22,909,615
---------- --------
- ----
Net increase in shares
outstanding....................... 2,292,132 $
20,021,872
---------- --------
- ----
---------- --------
- ----
<CAPTION>
Class B
- ------------------------------------
Year ended October 31, 1998:
Shares sold......................... 42,084 $
342,479
Shares issued in reinvestment of
dividends and distributions....... 21,298
173,540
Shares reacquired................... (165,425)
(1,347,329)
---------- --------
- ----
Net decrease in shares outstanding
before conversion................. (102,043)
(831,310)
Shares reacquired upon conversion
into Class A...................... (165,049)
(1,366,795)
---------- --------
- ----
Net decrease in shares
outstanding....................... (267,092) $
(2,198,105)
---------- --------
- ----
---------- --------
- ----
Year ended October 31, 1997:
Shares sold......................... 53,550 $
462,980
Shares issued in reinvestment of
dividends and distributions....... 128,673
1,112,119
Shares reacquired................... (2,106,270)
(18,586,016)
---------- --------
- ----
Net decrease in shares outstanding
before conversion................. (1,924,047)
(17,010,917)
Shares reacquired upon conversion
into Class A...................... (2,672,625)
(22,909,615)
---------- --------
- ----
Net decrease in shares
outstanding....................... (4,596,672)
$(39,920,532)
---------- --------
- ----
---------- --------
- ----
<CAPTION>
Class C
- ------------------------------------
Year ended October 31, 1998:
Shares sold......................... 3,889 $
32,000
Shares issued in reinvestment of
dividends and distributions....... 820
6,683
Shares reacquired................... (10,850)
(87,472)
---------- --------
- ----
Net decrease in shares
outstanding....................... (6,141) $
(48,789)
---------- --------
- ----
---------- --------
- ----
</TABLE>
- ------------------------------------------------------------
- --------------------
11
<PAGE>
PRUDENTIAL
GLOBAL LIMITED
MATURITY
FUND, INC.
Notes to Financial Statements LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
Class C Shares
Amount
- ------------------------------------ ---------- --------
- ----
<S> <C> <C>
Year ended October 31, 1997:
Shares sold......................... 10,910 $
94,072
Shares issued in reinvestment of
dividends and distributions....... 872
7,480
Shares reacquired................... (5,205)
(44,196)
---------- --------
- ----
Net increase in shares
outstanding....................... 6,577 $
57,356
---------- --------
- ----
---------- --------
- ----
<CAPTION>
Class Z
- ------------------------------------
Year ended October 31, 1998:
Shares sold......................... 5,175 $
43,450
Shares issued in reinvestment of
dividends and distributions....... 543
4,398
Shares reacquired................... (11)
(84)
---------- --------
- ----
Net increase in shares
outstanding....................... 5,707 $
47,764
---------- --------
- ----
---------- --------
- ----
January 27, 1997(a) through
October 31, 1997:
Shares sold......................... 502 $
4,301
Shares issued in reinvestment of
dividends and distributions....... 3
24
---------- --------
- ----
Increase in shares outstanding...... 505 $
4,325
---------- --------
- ----
---------- --------
- ----
</TABLE>
- ---------------
(a) Commencement of offering of Class Z shares.
- ------------------------------------------------------------
- --------------------
12
<PAGE>
PRUDENTIAL
GLOBAL LIMITED
MATURITY
FUND, INC.
Financial Highlights LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
Class A
----------
- ---------------------------------------------
Year Ended October 31,
----------
- ---------------------------------------------
1998(b)
1997(b) 1996 1995 1994
-------
- ------- ------- ------- -------
<S> <C>
<C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year............ $ 8.41
$ 8.82 $ 8.39 $ 8.56 $ 9.29
-------
- ------- ------- ------- -------
Income from investment operations
Net investment income......................... .54
.60 .60 .61 .70
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions............................... (.29)
(.16) .40 (.21) (.86)
-------
- ------- ------- ------- -------
Total from investment operations........... .25
.44 1.00 .40 (.16)
-------
- ------- ------- ------- -------
Less distributions
Dividends from net investment income.......... (.54)
(.60) (.57) (.48) --
Distributions in excess of net investment
income..................................... (.22)
(.25) -- -- --
Tax return of capital distributions........... (.10)
- -- -- (.09) (.57)
-------
- ------- ------- ------- -------
Total distributions........................ (.86)
(.85) (.57) (.57) (.57)
-------
- ------- ------- ------- -------
Net asset value, end of year.................. $ 7.80
$ 8.41 $ 8.82 $ 8.39 $ 8.56
-------
- ------- ------- ------- -------
-------
- ------- ------- ------- -------
TOTAL RETURN(a):.............................. 3.01%
5.14% 12.35% 4.92% (1.89)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)................. $64,538
$85,109 $69,051 $18,216 $28,841
Average net assets (000)...................... $73,853
$83,590 $53,284 $20,153 $38,000
Ratios to average net assets:
Expenses, including distribution fees...... 1.36%
1.35% 1.32% 1.21% 1.17%
Expenses, excluding distribution fees...... 1.21%
1.20% 1.17% 1.06% 1.02%
Net investment income...................... 6.65%
6.94% 7.12% 7.25% 7.67%
For Class A, B, C and Z shares:
Portfolio turnover rate.................... 40%
53% 101% 199% 232%
</TABLE>
- ---------------
(a) 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 year reported and includes reinvestment
of dividends and
distributions.
(b) Calculated based upon average shares outstanding during
the year.
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 13
<PAGE>
PRUDENTIAL
GLOBAL LIMITED
MATURITY
FUND, INC.
Financial Highlights LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
Class B
----------
- -------------------------------------------------
Year Ended October 31,
----------
- -------------------------------------------------
1998(b)
1997(b) 1996 1995 1994
---------
- ------- ------- -------- --------
<S> <C>
<C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of year............ $ 8.45
$ 8.85 $ 8.42 $ 8.56 $ 9.29
---------
- ------- ------- -------- --------
Income from investment operations
Net investment income......................... .51
.55 .55 .56 .62
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions............................... (.31)
(.16) .40 (.19) (.86)
---------
- ------- ------- -------- --------
Total from investment operations........... .20
.39 .95 .37 (.24)
---------
- ------- ------- -------- --------
Less distributions
Dividends from net investment income.......... (.51)
(.55) (.52) (.43) --
Distributions in excess of net investment
income..................................... (.19)
(.24) -- -- --
Tax return of capital distributions........... (.10)
- -- -- (.08) (.49)
---------
- ------- ------- -------- --------
Total distributions........................ (.80)
(.79) (.52) (.51) (.49)
---------
- ------- ------- -------- --------
Net asset value, end of year.................. $ 7.85
$ 8.45 $ 8.85 $ 8.42 $ 8.56
---------
- ------- ------- -------- --------
---------
- ------- ------- -------- --------
TOTAL RETURN(a):.............................. 2.48%
4.59% 11.61% 4.60% (2.62)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of year (000)................. $ 1,562
$ 2,397 $44,804 $108,454 $188,966
Average net assets (000)...................... $ 2,397
$17,941 $70,794 $139,248 $281,143
Ratios to average net assets:
Expenses, including distribution fees...... 1.96%
1.95% 1.92% 1.83% 1.97%
Expenses, excluding distribution fees...... 1.21%
1.20% 1.17% 1.08% 1.02%
Net investment income...................... 6.03%
6.34% 6.51% 6.61% 6.82%
</TABLE>
- ---------------
(a) 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 year reported and includes reinvestment
of dividends and
distributions.
(b) Calculated based upon average shares outstanding during
the year.
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 14
<PAGE>
PRUDENTIAL
GLOBAL LIMITED
MATURITY
FUND, INC.
Financial Highlights LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
<TABLE>
<CAPTION>
Class C
----------
- ------------------------------------------------------------
- -
August 1,
1994(c)
Year Ended October 31, Through
----------
- --------------------------------------------- October
31,
1998(f)
1997(f) 1996 1995 1994
---------
- --------- ----- ----- -----
<S> <C>
<C> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.......... $ 8.45
$ 8.85 $ 8.42 $ 8.56 $ 8.61
---------
- --------- ----- ----- -----
Income from investment operations
Net investment income......................... .50
.55 .55 .54 .14
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions............................... (.30)
(.16) .40 (.17) (.06)
---------
- --------- ----- ----- -----
Total from investment operations........... .20
.39 .95 .37 .08
---------
- --------- ----- ----- -----
Less distributions
Dividends from net investment income.......... (.50)
(.55) (.52) (.43) --
Distributions in excess of net investment
income..................................... (.20)
(.24) -- -- --
Tax return of capital distributions........... (.10)
- -- -- (.08) (.13)
---------
- --------- ----- ----- -----
Total distributions........................ (.80)
(.79) (.52) (.51) (.13)
---------
- --------- ----- ----- -----
Net asset value, end of period................ $ 7.85
$ 8.45 $ 8.85 $ 8.42 $ 8.56
---------
- --------- ----- ----- -----
---------
- --------- ----- ----- -----
TOTAL RETURN(a):.............................. 2.48%
4.59% 11.61% 4.60% 0.75%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $ 51
$ 107 $ 54 $ 755(e) $ 200(e)
Average net assets (000)...................... $ 64
$ 116 $ 4 $ 1,461(e) $ 199(e)
Ratios to average net assets:
Expenses, including distribution fees...... 1.96%
1.95% 1.92% 1.70% .93%(b)
Expenses, excluding distribution fees...... 1.21%
1.20% 1.17% .95% .18%(b)
Net investment income...................... 6.07%
6.36% 6.35% 6.43% 7.02%(b)
<CAPTION>
Class Z
------------
- ---------------
January 27,
1997(d)
Year Ended
Through
October 31,
October 31,
1998(f)
1997(f)
<S> <C>
<C>
-----------
- -----
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period.......... $ 8.44
$ 8.57
-----------
- -----
Income from investment operations
Net investment income......................... .55
.43
Net realized and unrealized gain (loss) on
investment and foreign currency
transactions............................... (.28)
(.11)
-----------
- -----
Total from investment operations........... .27
.32
-----------
- -----
Less distributions
Dividends from net investment income.......... (.55)
(.43)
Distributions in excess of net investment
income..................................... (.22)
(.02)
Tax return of capital distributions........... (.10)
- --
-----------
- -----
Total distributions........................ (.87)
(.45)
-----------
- -----
Net asset value, end of period................ $ 7.84
$ 8.44
-----------
- -----
-----------
- -----
TOTAL RETURN(a):.............................. 3.28%
3.53%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)............... $ 49
$ 4
Average net assets (000)...................... $ 43
$ 308(e)
Ratios to average net assets:
Expenses, including distribution fees...... 1.21%
1.20%(b)
Expenses, excluding distribution fees...... 1.21%
1.20%(b)
Net investment income...................... 6.83%
14.07%(b)
</TABLE>
- ---------------
(a) 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.
(b) Annualized.
(c) Commencement of offering of Class C shares.
(d) Commencement of offering of Class Z shares.
(e) Figures are actual and not rounded to the nearest
thousand.
(f) Calculated based upon average shares outstanding during
the period.
- ------------------------------------------------------------
- --------------------
See Notes to Financial Statements. 15
<PAGE>
PRUDENTIAL GLOBAL LIMITED
MATURITY
FUND, INC.
Report of Independent Accountants LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
To the Shareholders and Board of Directors of
Prudential Global Limited Maturity Fund, Inc.
Limited Maturity Portfolio
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 Limited Maturity
Fund, Inc., Limited Maturity Portfolio (the 'Fund') at
October 31, 1998, the
results of its operations for the year then ended, and the
changes in its net
assets and the financial highlights for each of the two
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 October
31, 1998 by correspondence with the custodian, provide a
reasonable basis for
the opinion expressed above. The accompanying financial
highlights for each of
the three periods in the period ended October 31, 1996 were
audited by other
independent accountants, whose opinion dated December 12,
1996 was unqualified.
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, New York
December 21, 1998
PRUDENTIAL GLOBAL LIMITED
Important Notice for Certain Shareholders MATURITY
FUND, INC.
(Unaudited) LIMITED
MATURITY PORTFOLIO
- ------------------------------------------------------------
- --------------------
We are required by Massachusetts, Missouri and Oregon to
inform you that
dividends which have been derived from interest on federal
obligations are not
taxable to shareholders providing the mutual fund meets
certain requirements
mandated by the prospective state's taxing authorities. We
are pleased to report
that 7% of the dividends paid by the Prudential Global
Limited Maturity Fund,
Inc., Limited Maturity Portfolio qualify for such deduction.
For more information regarding your state and local taxes,
you should contact
your tax advisor or the state/local taxing authorities.
- ------------------------------------------------------------
- --------------------
16
<PAGE>
Comparing A $10,000 Investment.
Prudential Global Limited Maturity Fund, Inc. - Limited
Maturity Portfolio vs. J.P. Morgan Global Short-Term Index.
Past performance is not indicative of future results.
Principal and investment
return will fluctuate so an investor's shares, when
redeemed, may be worth
more or less than their original cost. The boxes on top of
the graphs are
designed to give you an idea of how much the Fund's returns
can fluctuate from
year to year by measuring the best and worst calendar years
in terms of total
annual return since inception of each share class.
These graphs are furnished to you in accordance with SEC
regulations. They
compare a $10,000 investment in the Prudential Global
Limited Maturity Fund,
Inc. -- Limited Maturity Portfolio (Class A, B, C, and Z
shares) with a
similar investment in the J.P. Morgan Global Short-Term
Index (GSTI) 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
(October 31), as measured on a quarterly basis, beginning in
1990 for Class A
shares and Class B shares, 1994 for Class C shares, and 1997
for Class Z
shares. For purposes of the graphs, and unless otherwise
indicated, in the
accompanying tables it has been assumed (a) that the maximum
applicable front-
end sales charge was deducted from the initial $10,000
investment in Class A
shares; (b) the maximum applicable contingent deferred sales
charges were
deducted from the value of the investment in Class B and
Class C shares,
assuming full redemption on October 31, 1998; (c) beginning
November 2, 1998,
Class C shares are subject to a front-end sales charge of 1%
and a CDSC of 1%
for 18 months. This change is not reflected in the charts to
the right;(d) all
recurring fees (including management fees) were deducted;
and (e) all
dividends and distributions were reinvested. Class B shares
will automatically
convert to Class A shares, on a quarterly basis,
approximately seven years
after purchase. This conversion feature is not reflected in
the graphs.
Class Z shares are not subject to a sales charge or
distribution fee.
The J.P. Morgan GSTI is a weighted index of liquid, short-
term government
bonds of the following nations: Belgium, Sweden, Germany,
Australia, Canada,
Denmark, France, Italy, Japan, the Netherlands, Spain, the
United States, and
the United Kingdom. The J.P. Morgan GSTI is an unmanaged
index and changes in
market capitalization are revised monthly. The J.P. Morgan
GSTI does not
reflect the payment of transaction costs and advisory fees
associated with an
investment in the Fund. The securities which comprise the
J.P. Morgan GSTI may
differ substantially from securities held by the Fund. The
J.P. Morgan GSTI is
not the only index that may be used to characterize
performance of global
income funds and other indexes may portray different
comparative performance.
Investors cannot invest directly in an index.
<PAGE>
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
http://www.prudential.com
Directors
Edward D. Beach
Delayne Dedrick Gold
Robert F. Gunia
Douglas H. McCorkindale
Mendel A. Melzer CFA
Thomas T. Mooney
Stephen P. Munn
Richard A. Redeker
Robin B. Smith
Brian M. Storms
Louis A. Weil, III
Clay T. Whitehead
Officers
Brian M. Storms, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Stephen M. Ungerman, Assistant Treasurer
Marguerite E.H. Morrison, Secretary
Manager
Prudential Investments Fund Management LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
The Prudential Investment Corporation
Prudential Plaza
Newark, NJ 07102-3777
PRICOA Asset Management Ltd.,
115 Houndsditch
London EC3A7BU
Distributor
Prudential Investment Management Services LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
P.O. Box 15005
New Brunswick, NJ 08906
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Gardner, Carton & Douglas
Quaker Tower
321 North Clark Street
Chicago, IL 60610-4795
The views expressed in this report and information about the
Fund's portfolio
holdings are for the period covered by this report and are
subject to change
thereafter.
This report is not authorized for distribution to
prospective investors unless
preceded or accompanied by a current prospectus.
74433F108 74433F207 74433F504 74433F603 MF144E
