Semi-Annual Report April 30, 1995
Prudential
Pacific
Growth
Fund, Inc
- ----------
(ICON)
Prudential Mutual Funds
Building Your Future
On Our StrengthSM
(LOGO)
<PAGE>
Letter to
Shareholders
June 12, 1995
Dear Shareholder:
Stocks in the Pacific Basin performed poorly during the last six months.
Their weak performance compared to the rest of the world was largely the result
of a series of negative surprises that plagued global markets in general, but
hurt the Pacific Basin in particular. These surprises included the Kobe
earthquake, rising U.S. interest rates, and global currency fluctuations.
While the Fund produced disappointing, negative returns for the six-month
reporting period, we did lose less than the average Pacific Basin fund, as
reported by Lipper Analytical Services. In fact, the Fund posted positive
returns for Class A and Class B shares in the since inception category.
Nonetheless, our losses for the past 12 months were greater than those recorded
by the average fund.
<TABLE>
CUMULATIVE TOTAL RETURNS1
As of 4/30/95
<CAPTION>
6 Mos. One Year Since Inception2
<S> <C> <C> <C>
Class A -10.4% -9.6% 54.1%
Class B -10.7% -10.3% 50.8%
Class C -10.7% N/A -11.0%
Lipper ST World -13.2% -6.8% -14.3%
Fund Average3
</TABLE>
<TABLE>
AVERAGE ANNUAL RETURNS1
As of 3/31/95
<CAPTION>
One Year Since Inception2
<S> <C> <C>
Class A -14.5% 14.1%
Class B -15.7% 14.5%
Class C N/A -14.3%
</TABLE>
Past performance is not a guarantee of future results. Investment return
and principal value will fluctuate so that an investor's shares, when redeemed,
may be worth more or less than their original cost.
1. Source: Prudential Mutual Fund Management, Inc. and Lipper Analytical
Services, Inc. The cumulative total returns do not take into account sales
charges. The average annual returns do take into account applicable sales
charges. The Fund charges a maximum front-end sales load of 5% for Class A
shares. Class B shares are subject to a declining contingent deferred sales
charge (CDSC) of 5%, 4%, 3%, 2%, 1% and 1% for six years. Class C shares have
a 1% CDSC for one year. Class B shares will automatically convert to Class A
shares on a quarterly basis, approximately seven years after purchase.
2. Inception dates: 7/24/92 Class A and B shares; 8/1/94 Class C shares.
3. Lipper average returns measure results for 70 funds for six months, 56
funds for one year and 23 funds since inception of Class A and B shares on
7/24/92.
Source: Prudential Mutual Fund Management, Inc. U.S. Stocks: S&P 500; Global
Stocks: Morgan Stanley World Index; Money Markets: IBC/Donoghue taxable funds
average; Pacific Stocks: Morgan Stanley World Index/Pacific Stocks. Note: Total
return figures are for the 12-month period ended 4/30/95 and assume
reinvestment of dividends and distributions. This chart is for comparison
purposes only. There are different risks associated with each investment
sector which should be considered carefully before investing. Past performance
is not indicative of future results.
-1-
<PAGE>
We are confident that performance should improve as the markets rebound from a
turbulent period.
The Fund's Objective.
The Prudential Pacific Growth Fund, Inc. seeks long-term growth of capital
by investing primarily in common stocks, common stock equivalents (such as
convertible and debt securities and warrants) and other securities of companies
doing business in -- or are located in -- the Pacific Basin. The Fund may also
invest up to 35% of its total assets in the securities of companies located
outside of this region.
The Fund may hedge its portfolio or attempt to enhance income by investing
in options or futures contracts on a variety of financial instruments. The
Fund did not employ any of these measures during the reporting period.
The Market.
The last six months have proven difficult for global investors, particularly
for those concentrated in the Pacific Basin. Hurt by the steady stream of
disturbing news, these markets have generally performed poorly. However, their
performance has been driven largely by investor uneasiness -- rather than
falling corporate earnings.
In fact, over the past six months corporate earnings across all sectors in
the Pacific Basin (excluding Japan) increased 20% as measured by the Morgan
Stanley Pacific Index, a weighted average of more than 400 companies located in
Japan, Hong Kong, Singapore, Malaysia, Australia and New Zealand. Stock
prices, however, have not reflected this growth, declining 2.4% for the period
according to Morgan Stanley. Further clouding the investment picture was the
U.S. dollar's weakness relative to the German mark and Japanese yen, which has
hurt foreign exports and dampened global investor sentiment.
Our Investment Strategies Moved In -- and Out -- of Favor.
- - Our Growth Investment Style.
As growth managers, we seek the stocks of companies that have a history of
strong earnings and consistent revenue streams. This differs from the value
investment strategy used by many of our competitors, who seek stocks selling at
discounts to their underlying worth. Growth managers generally perform better
than their value counterparts when stock prices are rising. When prices fall,
value managers tend to do better. Because overall Pacific Basin market
performance was weak, and our Fund universe is dominated largely by value
funds, we did not perform as well during this reporting period -- a trend we
believe will reverse itself, if the strong market we expect materializes later
this year.
Senate Considers "Dream Account"
The U.S. Senate will soon be considering a tax-deferred savings vehicle called
the "American Dream Savings Account," which was approved by the House of
Representatives earlier in the year as part of the "Contract with America"
legislative agenda.
While similar to a traditional individual retirement account or IRA, the
American Dream Savings Account goes further by raising the contribution ceiling
for non-working spouses and permitting tax-free and penalty-free withdrawals
prior to age 59 1/2 for certain major expenses. Prudential Mutual Funds
supports the American Dream Savings Account and we urge you to share your
opinion with your legislators.
-2-
<PAGE>
- - Emphasis on Pacific Basin Markets Outside of Japan.
This strategy worked to our disadvantage during the early part of the period
(namely the fourth quarter of 1994) and to our advantage as we worked our way
into 1995. Two factors drove our mixed performance here. The first was the
devaluation of the Mexican peso and the subsequent decline in the Mexican
securities market. Investors feared that a similar crisis could happen in the
smaller Asian markets. The second factor was short-term U.S. interest rates,
which have doubled since February 1994. While the U.S. raised interest rates
to ward off inflation, those elsewhere feared that the increases could choke
off economic recovery worldwide. The U.S. dollar-denominated markets of the
Pacific Basin -- namely Hong Kong, Singapore, Malaysia -- responded poorly to
these increases, although economic growth and corporate earnings have remained
strong there.
Investor sentiment began to improve in 1995. Mexico's crisis began to
settle, and U.S. economic data showed that a significant slowdown in U.S.
economic growth was occurring. If this slowdown is sustainable without causing
a recession in the U.S., non-Japan Pacific Basin stocks should respond
positively.
Our investments in this region include finance, services and materials
companies in Hong Kong, Malaysia, Singapore and Korea -- to take advantage of
the growing demand for goods and services in these booming markets. In
Australia and New Zealand, we're focusing on natural resource companies, as
these countries are resource-rich and untapped relative to their overall
capacity. Top holdings include Samsung Electronics (electronics, Korea),
United Overseas Bank (banking, Singapore), Renong Berhad (construction/housing,
Malaysia) and Western Mining (metals, Australia).
- - De-emphasizing Japan.
We made a long-term commitment in the Fund to hold a smaller percentage of
assets in Japan than our competition, since we believe greater growth
opportunities exist elsewhere in the Pacific Basin.
In 1994, Japan was the world's top performing stock market, although its
fortunes reversed late in the year, carrying over to 1995. Clouding investor
confidence throughout this reporting period were several factors: First was
the disruption of the Kobe earthquake, which significantly hurt our performance
in November, December and January. In 1995, Baring Securities PLC of London
amassed a mammoth position in Japanese stock index futures, wreaking havoc on
the Japanese market and bankrupting the firm. Lastly, the growing strength of
the Japanese yen relative to the U.S. dollar also soured global investor
sentiment.
Our decision to de-emphasize Japan during this volatile period was positive
for the portfolio. However, some of the stocks we held there (25.9% as April
30, 1995) did not perform as well as the Japanese market in general. Included
among them were some finance and industrial issues, such as consumer
electronics company AIWA. Small company Japanese stocks did not perform as
well as the stock market in general. We hold several of these stocks,
including financial services firm Nichiei.
Fund Update
Starting in February 1995, Class B shareholders may have begun to notice a
change in their Fund holdings. That's when Class B shares began to
automatically convert to Class A shares, on a quarterly basis, approximately
seven years after purchase. As you may know, Class A shares generally carry
lower annual distribution expenses than Class B shares. Accordingly, after
conversion as a Class A shareholder, you will earn higher total returns on your
investment than you would have as a Class B shareholder.
Conversions of eligible Class B shares and special exchanges of Class B and
C shares will take place each calendar quarter (March, June, September and
December) starting in September 1995.
-3-
<PAGE>
Our other top holdings during the period included merchandisers Nissen and
Kyocera -- both of which benefitted from Japan's strengthening consumer sector.
We view the success of these specialty retailers as a growing trend among
Japanese companies, and have consequently shifted the focus of our Japanese
holdings away from export-oriented stocks to more domestic-related issues.
Looking Ahead...
For the remainder of 1995, our outlook is more positive now than it was
during our last writing. Stocks throughout the Pacific Basin have undergone an
extended period of negative performance, and we believe the strong economic and
corporate earnings growth prevalent throughout this region will begin to breath
life back into prices of these stocks.
As always, it is a pleasure to work for you. We appreciate the confidence
you have shown in us by choosing the Prudential Pacific Growth Fund, Inc. for
your Asian investment.
Sincerely,
Daniel J. Duane
Portfolio Manager
Richard A. Redeker
President
-4-
<PAGE>
PORTFOLIO Q&A
Dan Duane
Q. Do you think it is unusual to have so much bad news at once for global
investors?
A. Global investors must keep in mind that foreign investing involves risks
above and beyond those of U.S. investments, including social, political,
currency, and economic risks. That said, since the stock market crash of 1987
global investors have not been confronted with such a succession of horrible
events. The stock market crash happened all at once, while recent events have
been drawn out over several months. Now, within a six-month period we saw the
unexpected drastic decline in the Mexican stock market, the Kobe earthquake,
the bankruptcy of Baring Securities and successive all-time lows for the dollar
against the Japanese yen and German mark. Take your pick, each of these events
worried global investors and had them seeking the perceived security of cash
and more established markets like the United States.
Q. How are you managing the dollar's fall compared to the Japanese yen and the
German mark?
A. The U.S. dollar is extremely oversold -- a low that is probably
unsustainable -- compared to the German mark and the Japanese yen. I think it
would be a mistake to assume these levels will continue. However, there are
real issues about the yen and the dollar. First, I believe this is a question
of poor fiscal policy in Japan, where the government has made no move to
deregulate the economy, as well as concern about the staggering U.S. federal
budget deficit. I don't see either situation improving soon, so I'm taking
several steps. I've reduced the portion of the portfolio devoted to Japan and
I've sold some yen in what remains. Finally, I always emphasize the U.S.
dollar-based economies of Asia. They're benefiting from the fact they won't
fluctuate against the dollar. In the rest of world, I'm looking for
manufacturers with proprietary products and strong global businesses --
especially those with dollar-denominated revenues.
Media Mentions
Dan Duane discussed investing in China in the New York Times (4/23/95).
-5-
<PAGE>
PRUDENTIAL PACIFIC GROWTH FUND, INC. Portfolio of Investments
April 30, 1995 (Unaudited)
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
LONG-TERM INVESTMENTS--94.8%
Common Stocks--90.9%
Australia--15.8%
3,655,000 AAPC, Ltd. ............. $ 1,939,612
(Lodging)
2,581,499 Australian National 2,664,802
Industries Ltd.
(Multi-industry)
341,200 Brambles Industries Ltd. 3,363,360
......................
(Business & public
services)
904,700 Broken Hill Proprietary 13,179,744
Co., Ltd.*
(Energy sources)
4,238,473 BTR Nylex Ltd. ......... 8,288,317
(Industrial components)
1,695,679 Coca Cola Amatil, Ltd. 10,354,464
......................
(Food & household
products)
1,942,900 Nine Network Australia, 5,578,947
Ltd. .................
(Broadcasting &
publishing)
3,800,500 Sea World Property Trust, 2,900,913
Ltd. .
(Leisure & tourism)
1,498,500 West Australia Newspaper, 4,052,326
Ltd.
(Publishing)
3,717,400 Western Mining Corp.
Holdings, Ltd. ........ 21,024,398
(Non - ferrous metals) ------------
73,346,883
------------
Hong Kong--12.4%
3,186,000 Amoy Properties, Ltd. 2,654,314
......................
(Real estate)
1,477,000 Cheung Kong Holdings Ltd. 6,219,349
......................
(Real estate)
2,879,800 Consolidated Electric 6,304,910
Power ................
(Utilities - electric &
gas)
2,690,600 Guoco Group, Ltd. ...... 10,217,468
(Financial services)
569,604 HSBC Holdings, PLC ..... 6,603,198
(Financial services)
12,167,000 Hung Hing Printing Group, $ 2,160,892
Ltd.
(General manufacturing)
2,278,000 Hutchison Whampoa, Ltd. 9,886,438
......................
(Multi-industry)
812,400 Jardine Matheson Holdings 6,458,580
Ltd.* .
(General trading)
709,000 Liu Chong Hing 572,365
Investment, Ltd.
(Real estate)
18,350,000 Techtronic Industries, 1,303,604
Ltd. .................
(Machinery &
engineering)
1,597,000 The Wharf Holdings Ltd. 4,785,637
...................... ------------
(Multi-industry)
57,166,755
------------
India--0.3%
685,000 Indo Gulf Fertilizer 1,404,250
Industries* ------------
(Basic industries)
Indonesia--0.6%
1,863,600 Kabel Metal Industries, 2,921,003
Ltd. ................. ------------
(Wire & cable)
Japan--25.9%
412,000 Aiwa Co. ............... 11,498,812
(Consumer electronics)
71,600 Autobacs Seven Co. ..... 7,457,625
(Merchandising)
215,000 Daibiru Corp. .......... 2,655,582
(Real estate)
920 DDI Corp. .............. 8,085,511
(Telecommunications)
237,000 Fuji Bank .............. 5,685,748
(Financial services)
400 Japan Associates Finance 48,931
Co.
(Financial services)
211,000 Kato Denki Co. ......... 5,137,173
(Merchandising)
57,000 Keyence Corp. .......... 6,065,558
(Electronics)
</TABLE>
-6- See Notes to Financial Statements.
<PAGE>
<PAGE>
PRUDENTIAL PACIFIC GROWTH FUND, INC.
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
Japan--(cont'd.)
135,000 Kyocera Corp. .......... $ 10,421,615
(Public works -
electronics)
188,000 Nichiei Co. ............ 12,101,663
(Financial services)
155,000 Nintendo Co., Ltd. ..... 9,922,209
(Recreation)
264,000 Nippon Comsys Corp. .... 3,668,409
(Construction)
500,000 Nippon Express Co. ..... 4,934,679
(Transportation)
290,880 Nissen Co., Ltd. ....... 9,189,321
(Merchandising)
375,000 Omron Corp. ............ 7,348,575
(Electronics)
325,000 Sanwa Bank Ltd. ........ 7,024,941
(Banking)
151,500 Sony Corp. ............. 7,682,957
(Entertainment)
36,000 Tokyo Electronic Co., 1,120,190
Ltd. ................. ------------
(Electronics)
120,049,499
------------
Korea--5.2%
30,621 Daewoo Securities Co., 887,682
Ltd. .................
(Financial services)
124,460 Lucky Co., Ltd. ........ 3,493,729
(Chemicals)
27,400 Mando Machinery Corp.* 1,757,539
......................
(Automotive)
9,500 Pohang Iron & Steel Co., 817,472
Ltd. .................
(Metals)
74,932 Samsung Electronics Co., 12,040,624
Ltd.* .
(Electronics)
14,829 Samsung Electronics Co.,
Ltd. (New)* .......... 2,295,300
(Electronics)
9,160 Shinsegae Co.* ......... $ 781,006
(Merchandising)
2,778 Shinsegae Co.* (New) ... 234,309
(Merchandising)
44,540 Shinwon Corp.* ......... 1,752,738
(Merchandising) ------------
24,060,399
------------
Malaysia--10.9%
2,027,000 IJM Corporation Berhad* 6,727,950
......................
(Construction)
1,000 Kedah Cement Holdings 1,255
Berhad
(Building materials)
2,300,000 Kuala Lumpur Kepong 6,609,998
Berhad
(Miscellaneous
materials)
441,000 Malayasian Airline System 1,365,574
......................
(Transportation)
61,000 Pacific Chemical Berhad 235,802
......................
(Chemicals)
1,500 Pilecon Engineering 1,785
Berhad ...............
(Machinery &
engineering)
8,840,000 Renong Berhad .......... 13,525,683
(Infrastructure)
2,625,000 Resorts World Holdings 13,812,993
......................
(Leisure & tourism)
2,887,000 Technology Resources
Industries Berhad* ... 7,362,113
(Data processing &
reproduction)
305,166 Time Engineering Berhad 734,968
...................... ------------
(Engineering)
50,378,121
------------
</TABLE>
-7- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL PACIFIC GROWTH FUND, INC.
<TABLE>
<CAPTION>
Value
Shares Description (Note 1)
<C> <S> <C>
New Zealand--2.9%
3,601,100 Fletcher Challenge, Ltd. $ 9,684,802
......................
(Forest products &
paper)
2,560,000 Fletcher Forestry, Ltd. 3,580,131
...................... ------------
(Forest products &
paper)
13,264,933
------------
Singapore--14.7%
1,264,000 City Developments Ltd. 7,434,228
......................
(Real estate)
1,290,750 First Capital Corp. .... 3,425,459
(Construction)
659,000 Fraser & Neave, Ltd. ... 7,231,889
(Beverages & tobacco)
1,818,000 Hong Leong Finance, Ltd. 5,763,563
......................
(Financial services)
1,454,000 Overseas Union Bank .... 8,395,280
(Financial services)
1,528,750 Sembawang Maritime, Ltd. 6,414,566
......................
(Transportation)
474,000 Singapore Airlines Ltd. 4,555,731
......................
(Transportation)
1,144,000 United Overseas Bank, 11,897,863
Ltd. .................
(Financial services)
7,607,000 Wing Tai Holdings ...... 12,876,574
(Conglomerates) ------------
67,995,153
------------
Thailand--2.2%
181,601 Land & House Public Co., 3,204,506
Ltd.
(Construction &
housing)
2,722,800 Sahavirya Steel Industry* 7,029,795
...................... ------------
(Metals)
10,234,301
------------
Total common stocks
(cost $386,199,996).... 420,821,297
------------
Preferred Stocks--0.4%
Australia--0.1%
63,635 Bank of Melbourne, Ltd. $ 599,523
...................... ------------
(Financial services)
Korea--0.3%
8,200 Daewoo Securities Co., 161,343
Ltd. .................
(Financial services)
30,450 Mando Machinery Corp.* 1,038,499
...................... ------------
(Automotive)
1,199,842
------------
Total preferred stocks
(cost $1,820,848)...... 1,799,365
------------
Depository Receipts--1.9%
Indonesia--1.0%
121,900 PT Indonesia Satellite* 4,403,638
......................
(Telecommunications)
Korea--0.9%
145,400 Pohang Iron & Steel Co., 4,016,675
Ltd.* ------------
(Metals)
Total depository receipts
(cost $9,262,018)...... 8,420,313
------------
Convertible Loan Stocks--0.2%
Singapore
631,000 Sembawang Maritime, Ltd.
......................
(Transportation)
(cost $402,346).......... 878,023
------------
<CAPTION>
Units Warrants*--1.0%
- -----------
<C> <S> <C>
Australia
West Australian
Newspaper, Ltd.
214,071 expiring June '99 @ 60,691
A$5.00 ------------
(Publishing)
Japan--0.3%
Autobacs Seven Co.
150 expiring Mar. '96 @ 241,875
(YEN)8,231
(Merchandising)
Nissen Co., Ltd.
493 expiring Nov. '96 @ 588,763
(YEN)1,681 ...........
(Merchandising)
</TABLE>
-8- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL PACIFIC GROWTH FUND, INC.
<TABLE>
<CAPTION>
Value
Units Description (Note 1)
<C> <S> <C>
Japan--(cont'd.)
Nitori Co.
10,250 expiring Feb. '98 @ (YEN)
3,268.................. $ 605,035
------------
(Merchandising)
1,435,673
------------
Singapore--0.7%
Hong Leong Finance, Ltd.
190,200 expiring Nov. '98 @ 177,349
SGD3.25
(Financial services)
Singapore Finance
144,300 expiring June '99 @
SGD1.50 . 70,380
(Financial services)
United Overseas Bank,
Ltd.
600,000 expiring June '97 @
SGD3.34 . 3,141,587
(Financial services) ------------
3,389,316
------------
Total warrants
(cost $5,905,953)...... 4,885,680
------------
<CAPTION>
Principal
Amount
(000) Convertible Bond--0.4%
- -----------
<C> <S> <C>
India
Gujarat Ambuja Cement
US$ 1,350 3.50%, 6/30/99
(Building materials)
(cost $2,020,598)........ 1,741,500
------------
Total long-term
investments
(cost $405,611,759).... 438,546,178
------------
SHORT-TERM INVESTMENT--0.6%
Repurchase Agreement
Joint Repurchase Agreement Account,
2,957 5.93%, 5/1/95 (Note 5)
(cost $2,957,000)...... 2,957,000
------------
Total Investments--95.4%
(cost $408,568,759; Note
4)..................... 441,503,178
Other assets in excess of
liabilities--4.6%...... 21,318,859
------------
Net Assets--100%......... $462,822,037
------------
------------
</TABLE>
- ------------
* Non-income producing security.
-9- See Notes to Financial Statements.
<PAGE>
PRUDENTIAL PACIFIC GROWTH FUND, INC.
Statement of Assets and Liabilities
(Unaudited)
<TABLE>
<CAPTION>
April 30,
Assets
1995
--------------
<S>
<C>
Investments, at value (cost
$408,568,759)................................................ $ 441,503,178
Foreign currency (cost
$13,947,341)......................................................
13,936,724
Receivable for investments
sold.......................................................... 8,325,246
Receivable for Fund shares
sold.......................................................... 3,286,710
Dividends and interest
receivable........................................................
1,645,038
Deferred expenses and other
assets....................................................... 100,919
--------------
Total
assets.........................................................................
468,797,815
--------------
Liabilities
Payable for investments
purchased........................................................
2,561,312
Payable for Fund shares
reacquired.......................................................
1,998,072
Accrued expenses and other
liabilities................................................... 726,215
Distribution fee
payable.................................................................
313,978
Management fee
payable...................................................................
284,316
Deferred Thailand capital gains tax
liability............................................ 91,885
--------------
Total
liabilities....................................................................
5,975,778
--------------
Net
Assets.......................................................................
........ $ 462,822,037
--------------
--------------
Net assets were comprised of:
Common stock, at
par................................................................... $
31,258
Paid-in capital in excess of
par....................................................... 451,671,399
--------------
451,702,657
Accumulated net investment
loss........................................................ (896,214)
Accumulated net realized loss on investments and foreign currency
transactions......... (20,823,737)
Net unrealized appreciation on investments and foreign
currencies...................... 32,839,331
--------------
Net assets, April 30
,1995............................................................. $
462,822,037
--------------
--------------
Class A:
Net asset value and redemption price per share
($106,686,516 / 7,094,793 shares of common stock issued and
outstanding)............. $15.04
Maximum sales charge (5% of offering
price)............................................ .79
--------------
Maximum offering price to
public....................................................... $15.83
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($355,034,960 / 24,088,698 shares of common stock issued and
outstanding)............ $14.74
--------------
--------------
Class C:
Net asset value, offering price and redemption price per share
($1,100,561 / 74,694 shares of common stock issued and
outstanding).................. $14.74
--------------
--------------
</TABLE>
See Notes to Financial Statements.
-10-
<PAGE>
PRUDENTIAL PACIFIC GROWTH FUND, INC.
Statement of Operations
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
April 30,
Net Investment Income 1995
----------------
<S> <C>
Income
Dividends (net of foreign
withholding taxes of
$406,444)....................... $ 3,652,694
Interest.......................... 301,345
----------------
Total income.................... 3,954,039
----------------
Expenses
Management fee.................... 1,765,501
Distribution fee--Class A......... 116,707
Distribution fee--Class B......... 1,881,977
Distribution fee--Class C......... 5,198
Transfer agent's fees and
expenses.......................... 470,000
Custodian's fees and expenses..... 444,000
Reports to shareholders........... 135,000
Registration fees................. 67,000
Directors' fees................... 21,000
Amortization of organization
expense........................... 20,000
Audit fee......................... 19,000
Legal fees........................ 15,000
Miscellaneous..................... 15,628
----------------
Total expenses.................. 4,976,011
----------------
Net investment loss................. (1,021,972)
----------------
Realized and Unrealized Gain (Loss)
on Investment and Foreign Currency
Transactions
Net realized loss on:
Investment transactions (net of
Thailand capital gains tax of
$539,305)....................... (20,938,443)
Foreign currency transactions..... (1,090,810)
----------------
(22,029,253)
----------------
Net change in unrealized
appreciation/depreciation on:
Investments (net of deferred
Thailand capital gains tax of
$91,885)........................ (34,898,786)
Foreign currencies................ 1,114,752
----------------
(33,784,034)
----------------
Net loss on investments and
foreign currencies.............. (55,813,287)
----------------
Net Decrease in Net Assets
Resulting from Operations........... $ (56,835,259)
----------------
----------------
</TABLE>
PRUDENTIAL PACIFIC GROWTH FUND, INC.
Statement of Changes in Net Assets
(Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
Increase (Decrease) April 30, October 31,
in Net Assets 1995 1994
---------------- ----------------
<S> <C> <C>
Operations
Net investment loss... $ (1,021,972) $ (5,622,111)
Net realized gain
(loss) on investment
and foreign currency
transactions........ (22,029,253) 2,992,416
Net change in
unrealized
appreciation/depreciation
on investments and
foreign
currencies.......... (33,784,034) 24,029,033
---------------- ----------------
Net increase
(decrease) in net
assets resulting
from operations..... (56,835,259) 21,399,338
---------------- ----------------
Net equalization
credits............. 125,758 --
---------------- ----------------
Distributions in excess
of net investment
income (Note 1)
Class A............... -- (293,320)
Class B............... -- (658,425)
---------------- ----------------
-- (951,745)
---------------- ----------------
Distributions to
shareholders
from net realized
gains
Class A............... (575,474) (944,124)
Class B............... (2,780,214) (3,989,283)
Class C............... (5,693) --
---------------- ----------------
(3,361,381) (4,933,407)
---------------- ----------------
Fund share transactions
(net of
share conversions)
(Note 6)
Proceeds from shares
sold................ 416,535,662 520,354,132
Net asset value of
shares
issued to
shareholders
in reinvestment of
distributions....... 3,169,310 5,612,542
Cost of shares
reacquired............ (456,399,897) (297,243,493)
---------------- ----------------
Net increase
(decrease) in net
assets from Fund
share
transactions........ (36,694,925) 228,723,181
---------------- ----------------
Total increase
(decrease)............ (96,765,807) 244,237,367
Net Assets
Beginning of period..... 559,587,844 315,350,477
---------------- ----------------
End of period........... $ 462,822,037 $ 559,587,844
---------------- ----------------
---------------- ----------------
</TABLE>
See Notes to Financial Statements. See Notes to Financial Statements.
-11-
<PAGE>
PRUDENTIAL PACIFIC GROWTH FUND, INC.
Notes to Financial Statements
(Unaudited)
Prudential Pacific Growth Fund, Inc. (the ``Fund'') is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The Fund was incorporated in Maryland on August 14, 1991 and had no
operations other than the issuance of 5,000 shares each of Class A and Class B
common stock for $100,000 on May 6, 1992 to Prudential Mutual Fund Management,
Inc. (``PMF''). The Fund commenced investment operations on July 24, 1992. The
investment objective of the Fund is to seek long-term capital growth by
investing primarily in common stocks, common stock equivalents and other
securities of companies doing business in or domiciled in the Pacific Basin
region.
Note 1. Accounting The following is a summary
Policies of significant accounting pol-
icies followed by the Fund in the preparation of
its financial statements.
Securities 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.
Any securities or other assets for which current market quotations are not
readily available are valued at fair value as determined in good faith under
procedures established by and under the general supervision and responsibility
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.
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, takes
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 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 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, realized foreign
currrency gains (losses) are included in the reported net realized losses on
investment transactions.
Net realized losses on foreign currency transactions of $1,090,810 represent
net foreign exchange losses from forward currency contracts, 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 interest, dividends 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 at fiscal period end exchange rates are reflected as a component of
unrealized depreciation on investments and 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 and economic instability and
the level of governmental supervision and 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
foreign 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.
-12-
<PAGE>
Net investment income or loss (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.
Dividends and Distributions: The Fund expects to pay dividends of net investment
income and distributions of net realized capital and currency gains, if any,
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 due to timing differences concerning recognition of
income.
Taxes: It is the Fund's policy 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.
Withholding taxes on foreign dividends, interest and capital gains have been
provided for in accordance with the Fund's understanding of the applicable
country's tax rules and rates.
Deferred Organization Expenses: Approximately $200,000 of organization and
initial registration costs have been deferred and are being amortized over the
period of benefit not to exceed 60 months from the date the Fund commenced
investment operations.
Note 2. Agreements The Fund has a manage-
ment agreement with 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 cost of the subadviser's services, 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 .75 of 1% of the average daily net assets of the Fund.
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 with Prudential Securities Incorporated (``PSI''), which
acts as distributor of the Class B shares and Class C shares of the Fund
(collectively the ``Distributors''). The Fund compensates the Distributors 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.
Pursuant to the Class A, B and C Plans, the Fund compensates the Distributors
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 Class A plan were .25 of 1% of the average
daily net assets of the Class A shares for the six months ended April 30, 1995.
Such expenses under the Class B and Class C Plans were 1% of the average daily
net assets of both the Class B and Class C shares for the six months ended April
30, 1995.
PMFD has advised the Fund that it has received approximately $191,000 in
front-end sales charges resulting from sales of Class A shares during the six
months ended April 30, 1995. From these fees, PMFD paid such sales charges to
PSI and Pruco Securities Corporation, affiliated broker-dealers, which in turn
paid commissions to salespersons and incurred other distribution costs.
PSI has advised the Fund that for the six months ended April 30, 1995, it
received approximately $924,300 in contingent deferred sales charges imposed
upon certain redemptions by Class B and Class C shareholders.
PMFD is a wholly-owned subsidiary of PMF; PSI, PMF and PIC are (indirect)
wholly-owned subsidiaries of The Prudential Insurance Company of America
(``Prudential'').
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. During
the six months April 30, 1995, the Fund incurred fees of approximately $392,000
for the services of PMFS. As of April 30, 1995, approximately $65,000 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.
Note 4. Portfolio Purchases and sales of
Securities investment securities, other
than short-term investments, for the six months
ended April 30, 1995 were $144,179,127 and $193,739,115, respectively.
The United States federal income tax basis of the Fund's investments at April
30, 1995 was $408,727,163 and accordingly, net unrealized appreciation for
federal income
-13-
<PAGE>
tax purposes was $32,776,015 (gross unrealized appreciation--$50,400,474; gross
unrealized depreciation--$17,624,459).
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 April 30, 1995, the Fund had a .44% undivided interest in the
repurchase agreements in the joint account. The undivided interest for the Fund
represented $2,957,000 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. 5.92%, in the principal amount of $125,000,000, repurchase
price $125,061,667, due 5/1/95. The value of the collateral including accrued
interest is $127,647,875.
UBS Securities, Inc., 5.93%, in the principal amount of $100,000,000,
repurchase price $100,049,417, due 5/1/95. The value of the collateral including
accrued interest is $102,001,215.
Morgan Stanley and Co., Inc., 5.93%, in the principal amount of $225,000,000,
repurchase price $225,111,188, due 5/1/95. The value of the collateral including
accrued interest is $229,982,534.
CS First Boston Corp., 5.93%, in the principal amount of $225,000,000,
repurchase price $225,111,188, due 5/1/95. The value of the collateral including
accrued interest is $229,725,279.
Note 6. Capital The Fund currently offers
Class A, Class B and Class C shares. Class A
shares are sold with a front-end sales charge of up to 5%. 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. Class C shares are sold
with a contingent deferred sales charge of 1% during the first year. Commencing
in February 1995, Class B shares automatically convert to Class A shares on a
quarterly basis approximately seven years after purchase. A special exchange
privilege is also available for shareholders who qualified to purchase Class A
shares at net asset value.
The Fund has authorized 2 billion shares of common stock at $.001 par value
per share equally divided into three classes, designated Class A, Class B and
Class C common stock. Of the 31,258,185 shares of common stock is-
sued and outstanding at April 30, 1995, PMF owned 5,000
Class A shares and 5,000 Class B shares and Prudential owned 211,960 Class A
shares.
Transactions in shares of common stock for the six months ended April 30,
1995 and for the year ended October 31, 1994 were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
- ----------------------------- ----------- -------------
<S> <C> <C>
Six months ended
April 30, 1995:
Shares sold.................. 15,037,485 $ 217,368,052
Shares issued in reinvestment
of distributions........... 36,103 541,915
Shares reacquired............ (15,165,293) (221,501,053)
----------- -------------
Net decrease in shares
outstanding before
conversion................. (91,705) (3,591,086)
Shares issued upon conversion
from Class B............... 1,331,960 18,621,690
----------- -------------
Net increase in shares
outstanding................ 1,240,255 $ 15,030,604
----------- -------------
----------- -------------
Year ended October 31, 1994:
Shares sold.................. 8,481,016 $ 142,276,687
Shares issued in reinvestment
of distributions........... 68,502 1,139,181
Shares reacquired............ (6,691,379) (112,537,168)
----------- -------------
Net increase in shares
outstanding................ 1,858,139 $ 30,878,700
----------- -------------
----------- -------------
</TABLE>
-14-
<PAGE>
<TABLE>
<CAPTION>
Class B Shares Amount
- ----------------------------- ----------- -------------
<S> <C> <C>
Six months ended
April 30, 1995:
Shares sold.................. 12,829,376 $ 184,440,649
Shares issued in reinvestment
of distributions........... 177,755 2,621,885
Shares reacquired............ (15,233,323) (220,492,815)
----------- -------------
Net decrease in shares
outstanding before
conversion................. (2,226,192) (33,430,281)
Shares reacquired upon
conversion into Class A.... (1,357,212) (18,621,690)
----------- -------------
Net decrease in shares
outstanding................ (3,583,404) $ (52,051,971)
----------- -------------
----------- -------------
Year ended October 31, 1994:
Shares sold.................. 22,664,100 $ 375,017,028
Shares issued in reinvestment
of distributions........... 271,772 4,473,361
Shares reacquired............ (11,011,611) (182,353,187)
----------- -------------
Net increase in shares
outstanding................ 11,924,261 $ 197,137,202
----------- -------------
----------- -------------
<CAPTION>
Class C Shares Amount
- ----------------------------- ----------- -------------
<S> <C> <C>
Six months ended
April 30, 1995:
Shares sold.................. 1,039,554 $ 14,726,961
Shares issued in reinvestment
of distributions........... 373 5,510
Shares reacquired............ (1,008,418) (14,406,029)
----------- -------------
Net increase in shares
outstanding................ 31,509 $ 326,442
----------- -------------
----------- -------------
August 1, 1994 through
October 31, 1994*
Shares sold.................. 183,643 $ 3,060,417
Shares reacquired............ (140,458) (2,353,138)
----------- -------------
Net increase in shares
outstanding................ 43,185 $ 707,279
----------- -------------
----------- -------------
</TABLE>
- ------------
* Commencement of offering of Class C shares.
-15-
<PAGE>
PRUDENTIAL PACIFIC GROWTH FUND, INC.
Financial Highlights
(Unaudited)
<TABLE>
<CAPTION>
Class A
Class B
- -------------------------------------------------
- --------------------------------------
July 24,
Six Months Year Ended October
1992* Six Months
Ended 31,
Through Ended Year Ended October 31,
April 30, ---------------------
October 31, April 30, ------------------------
1995(D) 1994(D) 1993(D)
1992 1995(D) 1994(D) 1993(D)
---------- ------- ----------
- ----------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
<C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period.......................... $ 16.90 $ 16.10 $ 10.65
$ 10.00 $ 16.62 $ 15.94 $ 10.63
---------- ------- ----------
- ----------- ---------- ---------- ----------
Income from investment operations
Net investment income (loss)...... .02 (.08) (.01)
(.02) (.04) (.21) (.10)
Net realized and unrealized gain
(loss) on investment and foreign
currency transactions........... (1.78) 1.15 5.48
.67 (1.74) 1.13 5.43
---------- ------- ----------
- ----------- ---------- ---------- ----------
Total from investment
operations.................... (1.76) 1.07 5.47
.65 (1.78) .92 5.33
---------- ------- ----------
- ----------- ---------- ---------- ----------
Less distributions
Distributions in excess of net
investment income............... -- (.06) (.02)
-- -- (.03) (.02)
Distributions from net realized
gains........................... (.10) (.21) --
-- (.10) (.21) --
---------- ------- ----------
- ----------- ---------- ---------- ----------
Total distributions............. (.10) (.27) (.02)
-- (.10) (.24) (.02)
---------- ------- ----------
- ----------- ---------- ---------- ----------
Net asset value, end of period.... $ 15.04 $ 16.90 $ 16.10
$ 10.65 $ 14.74 $ 16.62 $ 15.94
---------- ------- ----------
- ----------- ---------- ---------- ----------
---------- ------- ----------
- ----------- ---------- ---------- ----------
TOTAL RETURN#..................... (10.40)% 6.67% 51.39%
6.50% (10.70)% 5.79% 50.17%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)... $106,687 $98,921 $ 64,353
$13,918 $355,035 $459,949 $250,997
Average net assets (000).......... $ 94,189 $92,233 $ 26,264
$12,884 $379,515 $404,506 $ 74,590
Ratios to average net assets:
Expenses, including distribution
fees.......................... 1.51%** 1.57% 1.63%
2.72%** 2.26%** 2.33% 2.37%
Expenses, excluding distribution
fees.......................... 1.26%** 1.33% 1.43%
2.52%** 1.26%** 1.33% 1.37%
Net investment income (loss).... .14%** (.50)% (.04)%
(.75)%** (.61)%** (1.27)% (.83)%
Portfolio turnover................ 31% 56% 44%
0% 31% 56% 44%
<CAPTION>
Class C
-------------------------
July 24, August 1,
1992* Six Months 1994@
Through Ended Through
October 31, April 30, October 31,
1992 1995(D) 1994(D)
----------- ---------- -----------
<S> <C> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of
period.......................... $ 10.00 $16.62 $ 16.68
----------- ----- -----
Income from investment operations
Net investment income (loss)...... (.04) (.04) (.06)
Net realized and unrealized gain
(loss) on investment and foreign
currency transactions........... .67 (1.74) --
----------- ----- -----
Total from investment
operations.................... .63 (1.78) (.06)
----------- ----- -----
Less distributions
Distributions in excess of net
investment income............... -- -- --
Distributions from net realized
gains........................... -- (.10) --
----------- ----- -----
Total distributions............. -- (.10) --
----------- ----- -----
Net asset value, end of period.... $ 10.63 $14.74 $ 16.62
----------- ----- -----
----------- ----- -----
TOTAL RETURN#..................... 6.30% (10.70)% (.36)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000)... $20,050 $1,101 $ 718
Average net assets (000).......... $16,025 $1,048 $ 458
Ratios to average net assets:
Expenses, including distribution
fees.......................... 3.52%** 2.26%** 3.00%**
Expenses, excluding distribution
fees.......................... 2.52%** 1.26%** 2.00%**
Net investment income (loss).... (1.55)%** (.44)%** (1.64)%**
Portfolio turnover................ 0% 31% 56%
</TABLE>
----------------
* Commencement of investment operations.
** Annualized.
@ Commencement of offering of Class C shares.
# 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.
(D) Calculated based upon weighted average shares outstanding during
the period.
See Notes to Financial Statements.
-16-
<PAGE>
The Prudential Mutual Fund Family
- -------------------------------------------------------------------------------
Prudential Mutual Fund Management offers a broad range of mutual funds designed
to meet your individual needs. We welcome you to review the investment options
available through our family of funds. For more information on the Prudential
Mutual Funds, including charges and expenses, contact your Prudential
Securities Financial Advisor or Pruco Securities Representative or telephone
the Funds at (800) 225-1852 for a free prospectus. Read the prospectus
carefully before you invest or send money.
Taxable Bond Funds
Prudential Adjustable Rate Securities Fund, Inc.
Prudential Diversified Bond Fund, Inc.
Prudential GNMA Fund, Inc.
Prudential Government Income Fund, Inc.
(formerly known as Prudential
Government Plus Fund)
Prudential Government Securities Trust
Intermediate Term Series
Prudential High Yield Fund, Inc.
Prudential Structured Maturity Fund, Inc.
Income Portfolio
Prudential U.S. Government Fund
The BlackRock Government Income Trust
Tax-Exempt Bond Funds
Prudential California Municipal Fund
California Series
California Income Series
Prudential Municipal Bond Fund
High Yield Series
Insured Series
Modified Term Series
Prudential Municipal Series Fund
Arizona Series
Florida Series
Georgia Series
Hawaii Income Series
Maryland Series
Massachusetts Series
Michigan Series
Minnesota Series
New Jersey Series
New York Series
North Carolina Series
Ohio Series
Pennsylvania Series
Prudential National Municipals Fund, Inc.
Global Funds
Prudential Europe Growth Fund, Inc.
Prudential Global Fund, Inc.
Prudential Global Genesis Fund, Inc.
Prudential Global Natural Resources Fund, Inc.
Prudential Intermediate Global Income Fund, Inc.
Prudential Pacific Growth Fund, Inc.
Prudential Short-Term Global Income Fund, Inc.
Global Assets Portfolio
Short-Term Global Income Portfolio
Global Utility Fund, Inc.
Equity Fundsx
Prudential Allocation Fund
(formerly known as Prudential FlexiFund)
Conservatively Managed Portfolio
Strategy Portfolio
Prudential Equity Fund, Inc.
Prudential Equity Income Fund
Prudential Growth Opportunity Fund, Inc.
Prudential IncomeVertibleR Fund, Inc.
Prudential Multi-Sector Fund, Inc.
Prudential Strategist Fund, Inc.
(formerly known as Prudential Growth Fund)
Prudential Utility Fund, Inc.
Nicholas-Applegate Fund, Inc.
Nicholas-Applegate Growth Equity Fund
Money Market Funds
- -Taxable Money Market Funds
Prudential Government Securities Trust
Money Market Series
U.S. Treasury Money Market Series
Prudential Special Money Market Fund
Money Market Series
Prudential MoneyMart Assets
- -Tax-Free Money Market Funds
Prudential Tax-Free Money Fund
Prudential California Municipal Fund
California Money Market Series
Prudential Municipal Series Fund
Connecticut Money Market Series
Massachusetts Money Market Series
New Jersey Money Market Series
New York Money Market Series
- -Command Funds
Command Money Fund
Command Government Fund
Command Tax-Free Fund
- -Institutional Money Market Funds
Prudential Institutional Liquidity Portfolio, Inc.
Institutional Money Market Series
<PAGE>
Directors
Stephen C. Eyre
Delayne D. Gold
Don G. Hoff
Harry A. Jacobs, Jr.
Sidney R. Knafel
Robert E. La Blanc
Thomas A. Owens, Jr.
Richard A. Redeker
Clay T. Whitehead
Officers
Richard A. Redeker, President
Robert F. Gunia, Vice President
Eugene S. Stark, Treasurer
Stephen M. Ungerman, Assistant Treasurer
S. Jane Rose, Secretary
Ellyn C. Acker, 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
Deloitte & Touche LLP
Two World Financial Center
New York, NY 10281
Legal Counsel
Shereff, Friedman, Hoffman & Goodman LLP
919 Third Avenue
New York, NY 10022
Prudential Mutual Funds
One Seaport Plaza
New York, NY 10292
Toll Free (800) 225-1852, Collect (908) 417-7555
The accompanying financial statements as of April 30, 1995 were not audited
and, accordingly, no opinion is expressed on them.
This report is not authorized for distribution to prospective investors unless
preceded or accompanied by a current prospectus.
743941106
743941205 Prudential Mutual Fund Management (LOGO) MF157E2
743941304 Cat. #444567Q<PAGE>
<PAGE>
How the Markets
Compare
Total Return by Market
Sector
as of 4/30/95
(CHART TO FOLLOW)
