<PAGE>
SEMIANNUAL REPORT APRIL 30, 2000
Prudential Pacific Growth Fund, Inc.
Fund Type Global stock
Objective Long-term growth of capital
(GRAPHIC)
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.
(LOGO)
<PAGE>
Build on the Rock
Investment Goals and Style
The Prudential Pacific Growth Fund invests primarily in
stocks of companies in the Pacific Basin, selecting a
diversified portfolio aimed at long-term growth of
capital. The Fund is subject to all of the risks
associated with foreign investing, including currency,
political and social risks, and potential illiquidity.
There can be no assurance that the Fund will achieve its
investment objective.
Geographic Concentration
Expressed as a percentage of
net assets as of 4/30/00
52.9% Japan
9.1 Hong Kong
8.3 Taiwan
7.4 South Korea
4.6 India
4.4 Singapore
2.6 Australia
2.1 Other Asia
8.6 Cash & Equivalents
Ten Largest Holdings
Expressed as a percentage of
net assets as of 4/30/00
2.7% Samsung Electronics
Electronics
2.4 Sumitomo Bakelite Co., Ltd.
Chemicals
2.3 Terumo Corp.
Medical Products & Services
2.3 Tokyo Electron, Ltd.
Electronic Components
2.1 Trend Micro, Inc.
Computer Software & Services
2.1 NTT DoCoMo, Inc.
Telecommunications
2.1 ITO EN, Ltd.
Food & Beverage
2.0 Infosys Technologies, Ltd.
Computer Software & Services
1.8 Olympus Optical Co., Ltd.
Commercial Services
1.8 Avex, Inc.
Audiovisual
<PAGE>
www.prudential.com (800) 225-1852
Performance at a Glance
Cumulative Total Returns1 As of 4/30/00
Six One Five Since
Months Year Years Inception2
Class A 3.32% 27.42% 13.65% 75.15%
Class B 2.95 26.46 9.86 65.68
Class C 2.95 26.46 9.86 -2.24
Class Z 3.54 27.79 N/A 3.59
Lipper Pacific Region
Fund Avg.3 11.92 40.95 24.61 ***
Average Annual Total Returns1 As of 4/30/00
One Five Since
Year Years Inception2
Class A 21.05% 1.55% 6.78%
Class B 21.46 1.71 6.72
Class C 24.19 1.69 -0.57
Class Z 27.79 N/A 0.85
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 LLC 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 charge 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 B shares will automatically
convert to Class A shares, on a quarterly basis,
approximately seven years after purchase. Class C shares
are subject to 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 and service (12b-1) fees.
2 Inception dates: Class A and B, 7/24/92; Class C,
8/1/94; Class Z, 3/1/96.
3 Lipper average returns are for all funds in each share
class for the six-month, one-, and five-year
periods in the Pacific Region Fund category. The Lipper
average is unmanaged. Pacific Region funds
concentrate investments in equity securities with primary
trading markets or operations in the Western Pacific
Basin region or a single country within this region.
*** Lipper Since Inception returns are 98.53% for Class A
and B, 9.56% for Class C, and 13.60% for Class Z, based
on all funds in each share class.
1
<PAGE>
(LOGO)
June 15, 2000
Dear Shareholder,
During the six months ended April 30, 2000, Pacific
Region stocks first rose and then dropped very sharply.
After markets in the United States and Europe went into a
steep decline in March 2000, foreign investors withdrew
funds from the Pacific markets as well. The reversal gave
up much of the advances from earlier in the period. Over
the entire six months, the Prudential Pacific Growth
Fund's Class A shares returned 3.32%--a 1.85% loss to
those paying the one-time Class A share sales charge
during the period. The return was in line with the
overall market indexes.
Most of the Fund's gains came from the telecommunications
and technology stocks that were the market favorites, but part of
its assets had been in natural resources stocks.
Consequently, the Fund didn't perform as well in the
reporting period as funds that were more focused in Japan
and in technology, but it didn't fall as much at the end
of the reporting period either. The Fund's blend of large- and small-
company stocks also hurt its relative performance.
Overall, it trailed the 11.92% Lipper Pacific Region Fund
Average.
Prudential recommends that investors diversify their
holdings. Recently, industry and sector factors have
overwhelmed regional ones. The rise and fall of
technology and telecommunications stocks have dominated
markets the world over. Nonetheless, it was only a year
ago that regional factors had a greater impact, and we
saw periods over the past several years when leadership
alternated among U.S., European, and Pacific Region
stocks. Setting a diversified asset allocation plan and
sticking to it is the best buffer against market
volatility.
Sincerely,
John R. Strangfeld, President
Prudential Pacific Growth Fund, Inc.
2
<PAGE>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2000
Investment Adviser's Report
Six months ago, the Pacific Region appeared to be
bouncing back from the recession of 1997-1998. Since
then, although the economic news has been generally good,
political uncertainties have arisen throughout the area,
including the recent death of Japan's Prime Minister
Keizo Obuchi. In addition, the global bull market in
telecommunications and technology stocks drove much of
the Pacific Region stock advances in 1999, and all the
markets in the region were caught by the steep correction
in 2000.
Our holdings, which were diversified around several
themes, averaged a return essentially in line with the
Morgan Stanley Capital International (MSCI) Pacific
Index, but trailed the Lipper Average of Pacific Region
Funds over the six months ended April 30. Many funds
included in the average were focused in Japan or in
technology, and outpaced our return during the narrowly
focused market in 1999. We began to make up ground in
2000.
In the narrow rising market, our telecommunications and
technology holdings were among the largest contributors to our
return. These included Tokyo Electron, Ltd. (see Comments
on Largest Holdings); Infosys Technologies, Ltd.
(customized software); Canon, Inc. (optical equipment,
including medical); Japan Telecom Co., Ltd. (a new
addition to the Fund); NTT DoCoMo, Inc. (mobile
telecommunications services); Samsung Electronics (our
largest holding at period end); and Olympus Optical Co.,
Ltd. Of these, all but Infosys (India) and Samsung
(Korea) are Japan-based. All had high returns--over 30%--in
the half-year, even after the correction began.
Among the major contributors in other sectors, Daifuku
Co., Ltd. (Japan) was our fifth largest holding at the
beginning of the period. It supplies
automated distribution equipment, and is benefiting from
the growth of
e-commerce and computer-based supply chain management. We
took some profits on this stock. Daikin Industries, Ltd.
(Japan) makes air-conditioning equipment as well as other
industrial machinery. Its stock rose 94% (in U.S.
3
<PAGE>
Prudential Pacific Growth Fund, Inc.
Holdings expressed as a percentage of the Fund's net
assets
Comments on Largest Holdings As of 4/30/00
2.7% Samsung Electronics (South Korea)/Electronics
South Korea's largest electronics company and the world's
second-largest manufacturer
of DRAM (computer memory) chips. Also makes flat panel
computer displays, cellular handsets, and a wide variety
of consumer electronics products. Its largest businesses
are growing profitably. Its shares rose 47% (in U.S.
dollars) over our reporting period, making
a substantial contribution to our return.
2.4% Sumitomo Bakelite Co., Ltd. (Japan)/Chemicals
A processor of synthetic resins, its business is focusing
increasingly on electronic parts, such as printed circuit
boards and semiconductor sealings for electronic components. It
had solid stock price gains over our reporting period, as
investors recognized the benefits
of its corporate restructuring and the strength of its
electronics business.
2.3% Terumo Corp. (Japan)/Medical Products & Services
Manufactures a broad range of medical instruments and
supplies. Sales have been increasing steadily over the
past five years.
2.3% Tokyo Electron, Ltd. (Japan)/Electronic Components
The world's second-largest supplier of semiconductor
manufacturing equipment and the dominant supplier to
Japanese markets. By history and culture, it is a preferred supplier
in the Japanese market. Its shares more than doubled over
our reporting period, making it the largest contributor
to our return for the period.
2.1% Trend Micro, Inc. (Japan)/Computer Software &
Services
Makes an excellent antivirus program for the servers that
run computer networks,
and is expanding into network management software. It has
partnerships with major manufacturers such as Hewlett-
Packard, Microsoft, Lucent Technologies, and Sun
Microsystems.
Holdings are subject to change.
4
<PAGE>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2000
dollars), and we took some profits here, too. Hutchinson
Whampoa, Ltd. is a conglomerate that alone makes up
almost a quarter of Hong Kong's total stock market
capitalization (the total value of outstanding stocks).
It was a large holder of a U.K. wireless company, Orange,
which was acquired by Mannesman, which was in turn
purchased during this reporting period by Vodafone.
Hutchinson's wireless interests contributed substantially
to its return and to our performance.
What hurt
On the negative side, our exposure in several smaller
markets--Australia, Indonesia, and the Philippines--hurt
our return. The latter two became less attractive to
investors because of growing instability. We have reduced
our exposure to the smaller markets in general and to
these three in particular. At period end, our Japan
holdings comprised 53% of our net assets, and our
exposure in Indonesia and the Philippines was below 1%.
Australia, which had been a defensive haven when
investors fled other Pacific Region markets, suffered as
investors rebalanced their Asian holdings. Moreover, we
had focused on natural resources and financial stocks,
which were out-of-favor sectors during this period. We
have sold most of our natural resources holdings,
including the Australian mining companies Pasminco, Ltd.,
Rio Tinto, Ltd., and Western Mining Corp. Holdings, Inc.
All of these companies hurt our performance.
However, the largest negative impacts on our return came
from two Japanese financial holdings: Toyo Trust &
Banking Co., Ltd. and Nichiei Co., Ltd. Toyo Trust &
Banking had been among our largest investments at the
beginning of the period and had tripled in price shortly
before then; it corrected sharply during this period, and
we reduced the size of our position. We sold all of our
shares in Nichiei Co., Ltd., a loan company whose shares
began to fall when it came under government review for
its collection methods.
5
<PAGE>
Prudential Pacific Growth Fund, Inc.
Semiannual Report April 30, 2000
The markets beat up little guys
We were also hurt by the smaller companies among our
Japanese holdings, as investors in Japan focused on
larger firms. Companies such as Nichiei Co., Ltd.; Fancl
Corp. (a direct-sale cosmetics company); and Trend Micro,
Inc. (see Comments on Largest Holdings) had significant
negative impacts on our return. For many, we believe the
recent downturn was just a correction from a prior run to
very expensive levels. We believe many of the small
Japanese firms among our holdings have strong long-term
growth potential, and we are staying with them. Many are
entrepreneurial, customer-focused, and profit-making.
Looking Ahead
We have increased our holdings in Japan, home to several
global technology leaders, where many businesses finally
seem serious about restructuring. We have also increased
our focus on China-related stocks--both Taiwan- and Hong
Kong-listed stocks that do extensive business in China.
For example, we have increased our holdings in the Hong
Kong firms China Telecom, Ltd. and Cable & Wireless HKT,
Ltd.
Prudential Pacific Growth Fund Management Team
6
<PAGE>
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2000 (Unaudited)
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
<C> <S> <C> <C>
------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 91.4%
Common Stocks
-------------------------------------------------------------------------------------
Australia 2.6%
104,800 Broken Hill Proprietary Co., Ltd. $ 1,129,166
232,500 Computershare, Ltd. 949,182
903,855 PowerLan, Ltd. 858,199
128,100 Solution 6 Holdings, Ltd.(a) 392,283
201,800 Telstra Corp., Ltd. 865,472
173,600 Westpac Banking Corp. 1,108,679
--------------
5,302,981
-------------------------------------------------------------------------------------
Hong Kong 9.1%
967,400 Cable & Wireless HKT, Ltd. 2,279,026
213,000 Cheung Kong (Holdings), Ltd. 2,543,137
298,000 China Telecom, Ltd. 2,152,018
220,000 Citic Pacific, Ltd. 1,008,319
221,600 Hutchison Whampoa, Ltd. 3,229,035
2,868,000 Kingboard Chemical Holdings, Ltd. 1,095,401
1,142,000 QPL International Holdings, Ltd.(a) 1,612,746
196,000 SmarTone Telecommunications Holdings, Ltd. 613,978
240,000 Sun Hung Kai Properties, Ltd. 1,902,634
184,300 Television Broadcasts, Ltd. 1,259,947
288,000 The Wharf (Holdings), Ltd. 597,135
--------------
18,293,376
-------------------------------------------------------------------------------------
India 4.6%
23,500 Hindustan Lever, Ltd. 1,289,350
21,500 ICICI Bank, Ltd. (ADR)(a) 370,875
21,696 Infosys Technologies, Ltd. 4,026,062
9,800 NIIT, Ltd. 458,007
17,100 Ranbaxy Laboratories, Ltd. (GDR) 326,268
24,000 Satyam Computer Services, Ltd. 1,715,464
30,200 Videsh Sanchar Nigam, Ltd. (GDR) 573,800
32,700 Zee Telefilms, Ltd. 531,890
--------------
9,291,716
</TABLE>
See Notes to Financial Statements 7
<PAGE>
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
------------------------------------------------------------------------------------------
<C> <S> <C> <C>
Japan 52.9%
26,400 Avex, Inc. $ 3,641,211
3,050 Bellsystem 24, Inc. 2,108,998
122,000 C. Uyemura & Co., Ltd. 2,450,616
53,000 Canon, Inc. 2,423,586
208,000 Daifuku Co., Ltd. 2,054,392
116,000 Daikin Industries, Ltd. 2,206,609
180,000 Ebara Corp. 2,081,089
24,700 Fancl Corp. 3,596,510
20,300 Fanuc, Ltd. 2,127,150
2,500 Funai Electric Co., Ltd. 1,388,503
34,000 Global-Dining, Inc. 2,360,455
22,000 Goldcrest Co., Ltd. 2,392,854
16,800 Hirose Electric Co., Ltd. 2,030,991
42,500 ITO EN, Ltd. 4,209,479
44 Japan Telecom Co., Ltd. 2,240,119
6,400 Kadokawa Shoten Publishing Co., Ltd. 1,036,749
717,000 Kawasaki Steel Corp. 1,115,024
17,000 Murata Manufacturing Co., Ltd. 3,304,638
127,000 NEC Corp. 3,456,262
14,000 Nintendo Co., Ltd. 2,332,685
155 Nippon Telegraph & Telephone Corp. (NTT) 1,922,614
117,000 Nomura Securities Co., Ltd. 2,945,848
127 NTT DoCoMo, Inc. 4,243,914
226,000 Olympus Optical Co., Ltd. 3,707,044
2,000 Oracle Corp. 1,610,664
16,900 Ryohin Keikaku Co., Ltd. 3,136,582
16,000 Seven-Eleven Japan Co., Ltd 1,969,823
110,000 Skylark Co., Ltd. 3,197,260
3,200 Softbank Corp. 787,929
6,400 Softbank Corp.-New 1,581,783
15,100 Sony Corp. 1,734,620
15,100 Sony Corp. - New(a) 1,747,200
444,000 Sumitomo Bakelite Co., Ltd. 4,886,754
15,000 TDK Corp. 2,009,164
152,000 Terumo Corp. 4,600,944
205,000 Tokio Marine & Fire Insurance Co., Ltd. 2,000,093
</TABLE>
8 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
------------------------------------------------------------------------------------------
<C> <S> <C> <C>
28,000 Tokyo Electron, Ltd. $ 4,564,288
231,000 Toyo Trust & Banking Co., Ltd. 844,626
28,500 Trend Micro, Inc. 4,273,813
33,400 Uni-Charm Corp. 2,263,149
40,500 United Arrows, Ltd. 2,099,417
15,900 World Co., Ltd. 1,195,112
12,200 World Co., Ltd. - New(a) 917,005
--------------
106,797,566
-------------------------------------------------------------------------------------
Korea 7.4%
147,100 Hyundai Electronics Industries Co. 2,332,922
6,600 Jusung Engineering Co., Ltd.(a) 344,942
61,140 L.G. Chemical, Ltd. 1,404,884
5,000 LG Home Shopping, Inc. 398,288
21,500 Medidas Co., Ltd. 315,792
94,970 Samsung Corp. 1,078,281
23,070 Samsung Electro-Mechanics Co. 1,569,529
20,011 Samsung Electronics 5,409,597
98,900 Shinhan Bank 949,119
4,300 SK Telecom Co., Ltd. 1,143,050
--------------
14,946,404
-------------------------------------------------------------------------------------
The Philippines 0.4%
239,000 Manila Electric Co. 'B' 428,388
3,524,400 SM Prime Holdings, Inc. 460,985
--------------
889,373
-------------------------------------------------------------------------------------
Singapore 4.4%
157,833 DBS Group Holdings, Ltd. 2,173,117
129,800 Elec & Eltek International Co., Ltd. 282,964
98,000 Natsteel Electronics, Ltd. 562,690
83,300 Oversea-Chinese Banking Corp., Ltd. 571,016
118,083 Overseas Union Bank, Ltd. 539,634
106,000 Sembcorp Logistics, Ltd. 658,308
424,000 Sembcorp Industries, Ltd. 447,153
45,900 Singapore Press Holdings, Ltd. 898,207
653,000 Singapore Technologies Engineering, Ltd. 918,209
</TABLE>
See Notes to Financial Statements 9
<PAGE>
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Shares Description Value (Note 1)
------------------------------------------------------------------------------------------
<C> <S> <C> <C>
521,000 Singapore Telecommunications, Ltd. $ 750,914
14,000 ST Assembly Test Services, Ltd.(a) 59,058
58,128 United Overseas Bank, Ltd. 405,275
47,000 Venture Manufacturing, Ltd. 550,738
--------------
8,817,283
-------------------------------------------------------------------------------------
Taiwan 8.3%
512,000 Acer, Inc.(a) 1,071,025
366,000 Advanced Semiconductor Engineering, Inc. GDR(a) 1,172,348
103,000 Ambit Microsystems Corp. 952,737
174,599 Asustek Computer, Inc.(a) 1,934,599
1,193,000 Chinatrust Commercial Bank 986,530
218,739 Compal Electronics, Inc. 561,236
107,000 Compeq Manufacturing Co., Ltd. 591,044
270,000 Far Eastern Textile, Ltd. 414,774
98,000 Hon Hai Precision Industry Co., Ltd.(a) 944,926
295,000 Macronix International Co., Ltd.(a) 891,894
203,369 Phoenixtec Power Co., Ltd.(a) 485,241
1,483,640 Taishin International Bank(a) 771,037
451,643 Taiwan Semiconductor Manufacturing Co.(a) 2,908,111
921,000 United Microelectronics Corp., Ltd. 3,115,656
--------------
16,801,158
-------------------------------------------------------------------------------------
Thailand 1.7%
61,500 Advanced Info Service Public Co., Ltd.(a) 720,583
140,900 BEC World Public Co., Ltd. 925,391
32,750 Siam Cement Public Co., Ltd.(a) 757,126
936,000 Thai Farmers Bank Public Co., Ltd.(a) 983,581
--------------
3,386,681
--------------
Total common stocks (cost $149,334,142) 184,526,538
--------------
</TABLE>
10 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Units Description Value (Note 1)
<C> <S> <C> <C>
------------------------------------------------------------------------------------------
Warrants(a)
-------------------------------------------------------------------------------------
Indonesia
834,300 PT Bank Pan Indonesia Tbk
expiring July 2002 @ IDR650 (cost $0) $ 13,201
--------------
Rights(a)
-------------------------------------------------------------------------------------
Korea
660 Jusung Engineering Co., Ltd.
expiring May 2000 @ SKW16,800 (cost $0) 23,433
--------------
Total long-term investments (cost $149,334,142) 184,563,172
--------------
SHORT-TERM INVESTMENTS 4.6%
<CAPTION>
Principal
Amount
(000)
<C> <S> <C> <C>
-------------------------------------------------------------------------------------
United States
U.S. Government Securities 0.1%
United States Treasury Bill,
$ 100(b) 5.9275%, 9/21/00 (cost $97,645) 97,573
-------------------------------------------------------------------------------------
Repurchase Agreement 4.5%
Joint Repurchase Agreement Account,
9,176 5.712%, 5/1/00 (cost $9,176,000; Note 5) 9,176,000
--------------
Total short-term investments (cost $9,273,645) 9,273,573
--------------
Total Investments 96.0% (cost $158,607,787; Note 4) 193,836,745
Other assets in excess of liabilities 4.0% 8,109,645
--------------
Net Assets 100% $ 201,946,390
--------------
--------------
</TABLE>
--------------------------------------------------------------------------------
(a) Non-income producing security.
(b) Pledged as initial margin with a broker for financial futures contracts.
ADR--American Depository Receipt.
GDR--Global Depository Receipt.
See Notes to Financial Statements 11
<PAGE>
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
The industry classification of portfolio holdings and other assets shown as a
percentage of net assets as of April 30, 2000 was as follows:
<TABLE>
<S> <C> <C>
Electronic Components.................................................. 17.7%
Electronics............................................................ 6.9
Telecommunications..................................................... 6.7
Computer Software & Services........................................... 6.6
Repurchase Agreement................................................... 4.5
Chemicals.............................................................. 4.3
Real Estate............................................................ 3.6
Commercial Banking..................................................... 3.3
Diversified Industries................................................. 3.0
Financial Services..................................................... 2.9
Commercial Services.................................................... 2.9
Restaurants............................................................ 2.8
Medical Products & Services............................................ 2.4
Broadcasting & Publishing.............................................. 2.3
Telephones............................................................. 2.1
Food & Beverage........................................................ 2.1
Machinery & Equipment.................................................. 2.0
Retail................................................................. 1.8
Cosmetics/Toiletries................................................... 1.8
Computers.............................................................. 1.8
Audio/Visual........................................................... 1.8
Office Equipment & Supplies............................................ 1.2
Internet............................................................... 1.2
Paper.................................................................. 1.1
Diversified Operations................................................. 1.1
Utility Communications................................................. 1.0
Insurance.............................................................. 1.0
Convenience Stores..................................................... 1.0
Apparel................................................................ 1.0
Engineering & Construction............................................. 0.7
Steel - Producers...................................................... 0.6
</TABLE>
12 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2000 (Unaudited) Cont'd.
<TABLE>
<S> <C> <C>
Consumer Products...................................................... 0.6
Electrical Services.................................................... 0.5
Building Materials & Components........................................ 0.4
Energy Equipment & Services............................................ 0.3
Cellular Communications................................................ 0.3
Utilities-Electric & Gas............................................... 0.2
Textiles............................................................... 0.2
Medical Technology..................................................... 0.2
U.S. Government Securities............................................. 0.1
-----
96.0
Other assets in excess of liabilities.................................. 4.0
-----
100.0%
-----
-----
</TABLE>
See Notes to Financial Statements 13
<PAGE>
Prudential Pacific Growth Fund, Inc.
Statement of Assets and Liabilities (Unaudited)
<TABLE>
<CAPTION>
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $158,607,787) $ 193,836,745
Foreign currency, at value (cost $8,633,654) 8,431,085
Cash 158,577
Receivable for investments sold 2,764,945
Receivable for Fund shares sold 705,002
Dividends and interest receivable 278,664
Deferred expenses and other assets 11,263
--------------
Total assets 206,186,281
--------------
LIABILITIES
Payable for investments purchased 2,534,785
Payable for Fund shares reacquired 809,422
Withholding taxes payable 624,460
Management fee payable 127,535
Distribution fee payable 105,176
Accrued expenses 38,513
--------------
Total liabilities 4,239,891
--------------
NET ASSETS $ 201,946,390
--------------
--------------
Net assets were comprised of:
Common stock, at par $ 14,407
Paid-in capital in excess of par 180,086,714
--------------
180,101,121
Distributions in excess of net investment income (1,276,667)
Accumulated net realized loss on investments (11,334,526)
Net unrealized appreciation on investments and foreign
currencies 34,456,462
--------------
Net assets, April 30, 2000 $ 201,946,390
--------------
--------------
</TABLE>
14 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Statement of Assets and Liabilities (Unaudited) Cont'd.
<TABLE>
<CAPTION>
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share
($55,784,731 / 3,906,100 shares of common stock issued and
outstanding) $14.28
Maximum sales charge (5% of offering price) .75
--------------
Maximum offering price to public $15.03
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($101,712,139 / 7,384,910 shares of common stock issued and
outstanding) $13.77
--------------
--------------
Class C:
Net asset value and redemption price per share
($9,013,860 / 654,437 shares of common stock issued and
outstanding) $13.77
Sales charge (1% of offering price) .14
--------------
Offering price to public $13.91
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($35,435,660 / 2,461,550 shares of common stock issued and
outstanding) $14.40
--------------
--------------
</TABLE>
See Notes to Financial Statements 15
<PAGE>
Prudential Pacific Growth Fund, Inc.
Statement of Operations (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended
April 30, 2000
<S> <C> <C>
----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Dividends (net of foreign withholding taxes of $117,398) $ 904,726
Interest 65,807
--------------
Total income 970,533
--------------
Expenses
Management fee 811,718
Distribution fee--Class A 68,016
Distribution fee--Class B 561,737
Distribution fee--Class C 39,445
Transfer agent's fees and expenses 233,000
Custodian's fees and expenses 181,000
Registration fees 37,000
Reports to shareholders 36,000
Audit fee and expenses 18,000
Legal fees and expenses 14,000
Directors' fees and expenses 8,000
Miscellaneous 192
--------------
Total operating expenses 2,008,108
Loan interest expense 7,454
--------------
Total expenses 2,015,562
--------------
Net investment loss (1,045,029)
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS,
FOREIGN CURRENCY TRANSACTIONS
Net realized gain on:
Investment transactions 17,124,658
Foreign currency transactions 490,635
Financial futures transactions 242,555
--------------
17,857,848
--------------
Net change in unrealized appreciation/depreciation on:
Investments (5,194,648)
Foreign currencies (1,131,020)
Financial futures (33,625)
--------------
(6,359,293)
--------------
Net gain on investments and foreign currencies 11,498,555
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 10,453,526
--------------
--------------
</TABLE>
16 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Statement of Changes in Net Assets (Unaudited)
<TABLE>
<CAPTION>
Six Months
Ended Year Ended
April 30, 2000 October 31, 1999
<S> <C> <C> <C>
------------------------------------------------------------------------------------
INCREASE IN NET ASSETS
Operations
Net investment loss $ (1,045,029) $ (1,077,809)
Net realized gain on investments and foreign
currency transactions 17,857,848 18,139,435
Net change in unrealized
appreciation/depreciation on investments
and foreign currencies (6,359,293) 47,723,236
-------------- ----------------
Net increase in net assets resulting from
operations 10,453,526 64,784,862
-------------- ----------------
Dividends and distributions (Note 1):
Dividends from net investment income
Class A (542,046) (200,274)
Class B (682,203) (82,000)
Class C (40,257) (1,966)
Class Z (511,187) (143,977)
-------------- ----------------
(1,775,693) (428,217)
-------------- ----------------
Distributions in excess of net investment
income
Class A (180,225) --
Class B (367,487) --
Class C (23,546) --
Class Z (151,015) --
-------------- ----------------
(722,273) --
-------------- ----------------
Fund share transactions (net of share
conversions)
(Note 6)
Net proceeds from shares sold 364,135,264 413,445,094
Net asset value of shares issued in
reinvestment of dividends and
distributions 2,368,241 412,010
Cost of shares reacquired (380,004,267) (381,886,447)
-------------- ----------------
Net increase (decrease) in net assets from
Fund share transactions (13,500,762) 31,970,657
-------------- ----------------
Total increase (decrease) (5,545,202) 96,327,302
NET ASSETS
Beginning of period 207,491,592 111,164,290
-------------- ----------------
End of period(a) $ 201,946,390 $ 207,491,592
-------------- ----------------
-------------- ----------------
(a) Includes undistributed net investment
income of $ -- $ 1,775,693
-------------- ----------------
</TABLE>
See Notes to Financial Statements 17
<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 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 Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Securities Valuation: Securities traded on an exchange and NASDAQ
National Market System are valued at the last sale price on such exchange system
or, if there was no sale on such day, at the mean between the last bid and asked
prices, or at the bid price in the absence of an asked price. Corporate bonds
(other than convertible) and U.S. government securities are valued on the basis
of valuations provided by an independent pricing agent or principal market
maker. Convertible debt securities are valued at the mean between the last
reported bid and asked prices provided by principal market makers. Options are
valued at the mean between the most recently quoted bid and asked prices on the
exchange on which they are traded. Futures contracts and options thereon are
valued at their last sale prices as of the close of trading on the applicable
commodities exchange or, if there was no sale on such day, at the mean between
the most recently quoted bid and asked prices. Securities for which reliable
market quotations are not readily available are valued by the Valuation
Committee or Board of Directors in consultation with the manager or subadvisor.
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.
Repurchase Agreements: 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.
18
<PAGE>
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
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 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 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 period. Accordingly, realized foreign currency gains (losses) are
included in the reported net realized gain on investment transactions.
Net realized gains or losses on foreign currency transactions represent
net foreign exchange gains or 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 period end exchange rates are reflected as a component of
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 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.
Financial Futures Contracts: A financial futures contract is an
agreement to purchase (long) or sell (short) an agreed amount of securities at a
set price for delivery on a future date. Upon entering into a financial futures
contract, the Fund is required to pledge to the broker an amount of cash and/or
other assets equal to a certain percentage of the contract amount. This amount
is known as the 'initial margin.' Subsequent payments, known as 'variation
margin,' are made or received by the Fund each day, depending on the daily
fluctuations in the value of the underlying security. Such variation margin is
recorded for financial statement purposes on a daily basis as
19
<PAGE>
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
unrealized gain or loss. When the contract expires or is closed, the gain or
loss is realized and is presented in the statement of operations as net realized
gain (loss) on financial futures contracts.
The Fund invests in financial futures contracts in order to hedge existing
portfolio securities, or securities the Fund intends to purchase, against
fluctuations in value. Under a variety of circumstances, the Fund may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss. The use of futures transactions involves the risk of imperfect
correlation in movements in the price of futures contracts and the underlying
assets.
Securities Transactions and Net 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. Expenses are recorded on the accrual
basis which may require the use of certain estimates by management.
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.
Taxes: It is the Fund's policy 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.
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.
Reclassification of Capital Accounts: The Fund accounts for and reports
distributions to shareholders in accordance with the American Institute of
Certified Public Accountants' 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 distributions in excess of net investment income
and increase accumulated
20
<PAGE>
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
net realized loss on investments by $490,635 for differences in the treatment
for book and tax purposes of certain transactions involving foreign securities,
currencies and withholding taxes. Net investment income, net realized gains and
net assets were not affected by this change.
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 furnishes investment advisory services in
connection with the management of the Fund. PIFM pays for the services of PIC,
the compensation of officers of the Fund, occupancy and certain clerical and
bookkeeping costs of the Fund. The Fund bears all other costs and expenses.
The management fee paid PIFM 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 a distribution agreement with Prudential Investment
Management Services LLC ('PIMS'), which acts as the distributor of the Class A,
Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for
distributing and servicing the Fund's Class A, Class B and Class C shares,
pursuant to plans of distribution, (the 'Class A, Class B and Class C Plans'),
regardless of expenses actually incurred by them. The distribution fees are
accrued daily and payable monthly. No distribution or service fees are paid to
PIMS as distributor of the Class Z shares of the Fund.
Pursuant to the Class A, Class B and Class C Plans, the Fund compensates
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 Class A, Class B and Class C Plans were
.25%, 1% and 1%, respectively, of the average daily net assets of the Class A,
Class B and Class C shares for the six months ended April 30, 2000.
PIMS has advised the Fund that it received approximately $36,700 and
$18,700 in front-end sales charges resulting from sales of Class A and Class C
shares, respectively, during the six months ended April 30, 2000. From these
fees,
21
<PAGE>
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
PIMS paid such sales charges to affiliated broker-dealers, which in turn paid
commissions to salespersons and incurred other distribution costs.
PIMS has advised the Fund that for the six months ended April 30, 2000, it
received approximately $127,900 and $5,100 in contingent deferred sales charges
imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PIMS, PIFM and PIC are wholly owned subsidiaries of The Prudential
Insurance Company of America ('Prudential').
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. During the six months ended April 30, 2000,
the Fund incurred fees of approximately $203,000 for the services of PMFS. As of
April 30, 2000, approximately $34,000 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 six months ended April 30, 2000 were $142,999,391 and $149,854,954,
respectively.
The federal income tax basis of the Fund's investments at April 30, 2000
was $160,623,720 and accordingly, net unrealized appreciation for federal income
tax purposes was $33,213,025 (gross unrealized appreciation--$43,284,563; gross
unrealized depreciation--$10,071,538).
For federal income tax purposes, the Fund had a capital loss carryforward
as of October 31, 1999 of approximately $28,532,000 which 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.
Note 5. Joint Repurchase Agreement Account
The Fund, 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 April 30, 2000, the Fund
had a 1.1% undivided interest in the repurchase agreements in the joint account.
The undivided interest for the Fund represents $9,176,000 in principal amount.
As of such date,
22
<PAGE>
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
each repurchase agreement in the joint account and the collateral therefore were
as follows:
ABN AMRO Incorporated, 5.72%, in the principal amount of $160,000,000,
repurchase price $160,076,267, due 5/1/00. The value of the collateral including
accrued interest was $163,200,995.
Bear, Stearns & Co. Inc., 5.72%, in the principal amount of $160,000,000,
repurchase price $160,076,267, due 5/1/00. The value of the collateral including
accrued interest was $166,727,544.
Credit Suisse First Boston Corp., 5.75%, in the principal amount of
$160,000,000, repurchase price $160,076,667, due 5/1/00. The value of the
collateral including accrued interest was $165,506,481.
Morgan (J.P.) Securities Inc., 5.72%, in the principal amount of
$210,000,000, repurchase price $210,100,100, due 5/1/00. The value of the
collateral including accrued interest was $214,200,036.
Salomon Smith Barney, Inc., 5.65%, in the principal amount of
$162,577,000, repurchase price $162,653,547, due 5/1/00. The value of the
collateral including accrued interest was $165,893,849.
Note 6. Capital
The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are
sold with an initial sales charge of up to 5%. Class B shares are sold with a
contingent deferred sales charge which declines from 5% to zero depending upon
the period of time the shares are held. 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 seven years after purchase. A special exchange
privilege is also available for shareholders who qualify 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 Fund has authorized 2 billion shares of common stock at $.001 par
value per share divided into four classes, designated Class A, Class B, Class C
and Class Z common stock each consisting of 500 million authorized shares.
23
<PAGE>
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
Transactions in shares of common stock were as follows:
<TABLE>
<CAPTION>
Class A Shares Amount
---------------------------------------------------------- ----------- -------------
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 10,895,407 $ 162,702,568
Shares issued in reinvestment of distributions 43,973 661,352
Shares reacquired (10,733,537) (162,412,239)
----------- -------------
Net increase in shares outstanding before conversion 205,843 951,681
Shares issued upon conversion from Class B 179,373 2,774,066
----------- -------------
Net increase in shares outstanding 385,216 $ 3,725,747
----------- -------------
----------- -------------
Year ended October 31, 1999:
Shares sold 11,346,118 $ 134,170,719
Shares issued in reinvestment of distributions 20,322 188,589
Shares reacquired (10,664,886) (126,529,666)
----------- -------------
Net increase in shares outstanding before conversion 701,554 7,829,642
Shares issued upon conversion from Class B 343,160 4,472,184
----------- -------------
Net increase in shares outstanding 1,044,714 $ 12,301,826
----------- -------------
----------- -------------
<CAPTION>
Class B
----------------------------------------------------------
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 2,920,477 $ 42,391,300
Shares issued in reinvestment of distributions 68,317 993,335
Shares reacquired (3,400,402) (49,482,894)
----------- -------------
Net decrease in shares outstanding before conversion (411,608) (6,098,259)
Shares reacquired upon conversion into Class A (186,030) (2,774,066)
----------- -------------
Net decrease in shares outstanding (597,638) $ (8,872,325)
----------- -------------
----------- -------------
Year ended October 31, 1999:
Shares sold 5,245,557 $ 59,201,089
Shares issued in reinvestment of distributions 8,624 77,617
Shares reacquired (5,390,404) (58,251,940)
----------- -------------
Net decrease in shares outstanding before conversion (136,223) 1,026,766
Shares reacquired upon conversion into Class A (355,605) (4,472,184)
----------- -------------
Net decrease in shares outstanding (491,828) $ (3,445,418)
----------- -------------
----------- -------------
</TABLE>
24
<PAGE>
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C Shares Amount
---------------------------------------------------------- ----------- -------------
Six months ended April 30, 2000:
<S> <C> <C>
Shares sold 2,011,521 $ 29,183,661
Shares issued in reinvestment of distributions 3,739 54,375
Shares reacquired (1,884,686) (27,461,862)
----------- -------------
Net increase in shares outstanding 130,574 $ 1,776,174
----------- -------------
----------- -------------
Year ended October 31, 1999:
Shares sold 3,334,684 $ 37,227,569
Shares issued in reinvestment of distributions 215 1,933
Shares reacquired (2,999,313) (33,491,014)
----------- -------------
Net increase in shares outstanding 335,586 $ 3,738,488
----------- -------------
----------- -------------
<CAPTION>
Class Z
----------------------------------------------------------
<S> <C> <C>
Six months ended April 30, 2000:
Shares sold 8,624,940 $ 129,857,735
Shares issued in reinvestment of distributions 43,539 659,179
Shares reacquired (9,274,353) (140,647,272)
----------- -------------
Net decrease in shares outstanding (605,874) $ (10,130,358)
----------- -------------
----------- -------------
Year ended October 31, 1999:
Shares sold 15,314,574 $ 182,845,717
Shares issued in reinvestment of distributions 15,420 143,871
Shares reacquired (13,617,992) (163,613,827)
----------- -------------
Net increase in shares outstanding 1,712,002 $ 19,375,761
----------- -------------
----------- -------------
</TABLE>
Note 7. Borrowings
The Fund, along with other affiliated registered investment companies (the
'Funds'), entered into a syndicated credit agreement ('SCA') with an
unaffiliated lender. The maximum commitment under the SCA is $1 billion.
Interest on any such borrowings will be at market rates. The purpose of the
agreement is to serve as an alternative source of funding for capital share
redemptions. The Funds pay a commitment fee of .080 of 1% of the unused portion
of the credit facility. The commitment fee is accrued and paid quarterly on a
pro rata basis by the Funds. The expiration date of the SCA is March 9, 2001.
Prior to March 9, 2000, the commitment fee was .065 of 1% of the unused portion
of the credit facility.
The Fund utilized the line of credit during the six months ended April 30,
2000. The average daily balance the Fund had outstanding during the period was
approximately $3,341,917 at a weighted average interest rate of approximately
6.80%.
25
<PAGE>
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited)
<TABLE>
<CAPTION>
Class A(a)
----------------
Six Months Ended
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 14.01
--------
Income from investment operations
Net investment income (loss) (.04)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .52
--------
Total from investment operations .48
--------
Less distributions
Distributions from net investment income (.16)
Distributions in excess of net investment income (.05)
Distributions from net realized gains --
--------
Total distributions (.21)
--------
Net asset value, end of period $ 14.28
--------
--------
TOTAL RETURN(b) 3.32%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 55,785
Average net assets (000) $ 54,712
Ratios to average net assets:
Total expenses 1.49%(c)
Operating expenses, including distribution fees 1.49%(c)
Operating expenses, excluding distribution fees 1.24%(c)
Net investment income (loss) (.59)%(c)
For Class A, B, C and Z shares:
Portfolio turnover rate 71%
</TABLE>
------------------------------
(a) Calculated based upon weighted average shares outstanding during the period.
(b) 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.
(c) Annualized.
26 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class A(a)
----------------------------------------------------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 9.14 $ 12.22 $ 15.86 $ 15.75 $ 16.90
-------- -------- -------- ---------------- ----------------
(.04) .06 .02 .07 .04
4.99 (1.88) (3.31) .23 (1.09)
-------- -------- -------- ---------------- ----------------
4.95 (1.82) (3.29) .30 (1.05)
-------- -------- -------- ---------------- ----------------
(.08) -- -- -- --
-- (.40) -- (.19) --
-- (.86) (.35) -- (.10)
-------- -------- -------- ---------------- ----------------
(.08) (1.26) (.35) (.19) (.10)
-------- -------- -------- ---------------- ----------------
$ 14.01 $ 9.14 $ 12.22 $ 15.86 $ 15.75
-------- -------- -------- ---------------- ----------------
-------- -------- -------- ---------------- ----------------
55.11% (15.53)% (21.32)% 1.97% (6.23)%
$ 49,338 $ 22,624 $ 35,860 $113,585 $ 98,998
$ 31,281 $ 26,845 $ 73,942 $106,148 $101,920
1.72% 1.70% 1.48% 1.37% 1.46%
1.72% 1.70% 1.42% 1.37% 1.46%
1.47% 1.45% 1.17% 1.12% 1.21%
(.34)% .63% .14% .44% .26%
104% 94% 81% 91% 54%
</TABLE>
See Notes to Financial Statements 27
<PAGE>
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class B(a)
----------------
Six Months Ended
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 13.50
----------------
Income from investment operations
Net investment loss (.10)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .51
----------------
Total from investment operations .41
----------------
Less distributions
Distributions from net investment income (.09)
Distributions in excess of net investment income (.05)
Distributions from net realized gains --
----------------
Total distributions (.14)
----------------
Net asset value, end of period $ 13.77
----------------
----------------
TOTAL RETURN(b) 2.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $101,712
Average net assets (000) $112,965
Ratios to average net assets:
Total expenses 2.24%(c)
Operating expenses, including distribution fees 2.24%(c)
Operating expenses, excluding distribution fees 1.24%(c)
Net investment loss (1.35)%(c)
</TABLE>
------------------------------
(a) Calculated based upon weighted average shares outstanding during the period.
(b) 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.
(c) Annualized)
28 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class B(a)
----------------------------------------------------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 8.79 $ 11.77 $ 15.40 $ 15.38 $ 16.62
---------------- -------- ---------------- ---------------- ----------------
(.12) (.01) (.09) (.04) (.08)
4.84 (1.82) (3.19) .25 (1.06)
---------------- -------- ---------------- ---------------- ----------------
4.72 (1.83) (3.28) .21 (1.14)
---------------- -------- ---------------- ---------------- ----------------
(.01) -- -- -- --
-- (.29) -- (.19) --
-- (.86) (.35) -- (.10)
---------------- -------- ---------------- ---------------- ----------------
(.01) (1.15) (.35) (.19) (.10)
---------------- -------- ---------------- ---------------- ----------------
$ 13.50 $ 8.79 $ 11.77 $ 15.40 $ 15.38
---------------- -------- ---------------- ---------------- ----------------
---------------- -------- ---------------- ---------------- ----------------
54.28% (16.32)% (21.84)% 1.36% (6.82)%
$107,769 $ 74,457 $128,694 $327,315 $344,313
$ 85,193 $ 91,983 $244,462 $357,548 $568,771
2.47% 2.45% 2.23% 2.12% 2.21%
2.47% 2.45% 2.17% 2.12% 2.21%
1.47% 1.45% 1.17% 1.12% 1.21%
(1.09)% (.12)% (.61)% (.25)% (.55)%
</TABLE>
See Notes to Financial Statements 29
<PAGE>
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C(a)
----------------
Six Months Ended
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $13.50
-------
Income from investment operations
Net investment loss (.10)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .51
-------
Total from investment operations .41
-------
Less distributions
Distributions from net investment income (.09)
Distributions in excess of net investment income (.05)
Distributions from net realized gains --
-------
Total distributions (.14)
-------
Net asset value, end of period $13.77
-------
-------
TOTAL RETURN(b) 2.95%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $9,014
Average net assets (000) $7,932
Ratios to average net assets:
Total expenses 2.24%(c)
Operating expenses, including distribution fees 2.24%(c)
Operating expenses, excluding distribution fees 1.24%(c)
Net investment loss (1.32)%(c)
</TABLE>
------------------------------
(a) Calculated based upon weighted average shares outstanding during the period.
(b) 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.
(c) Annualized.
30 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class C(a)
-----------------------------------------------------------------------------------------------------------
Year Ended October 31,
-----------------------------------------------------------------------------------------------------------
1999 1998 1997 1996 1995
-----------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
$ 8.79 $11.77 $15.40 $ 15.38 $ 16.62
------- ------- ------- -------- -------
(.12) (.01) (.09) (.04) (.08)
4.84 (1.82) (3.19) .25 (1.06)
------- ------- ------- -------- -------
4.72 (1.83) (3.28) .21 (1.14)
------- ------- ------- -------- -------
(.01) -- -- -- --
-- (.29) -- (.19) --
-- (.86) (.35) -- (.10)
------- ------- ------- -------- -------
(.01) (1.15) (.35) (.19) (.10)
------- ------- ------- -------- -------
$13.50 $ 8.79 $11.77 $ 15.40 $ 15.38
------- ------- ------- -------- -------
------- ------- ------- -------- -------
54.28% (16.32)% (21.84)% 1.36% (6.82)%
$7,073 $1,654 $2,932 $ 12,360 $ 2,443
$3,103 $2,276 $6,557 $ 6,402 $ 1,624
2.47% 2.45% 2.23% 2.12% 2.21%
2.47% 2.45% 2.17% 2.12% 2.21%
1.47% 1.45% 1.17% 1.12% 1.21%
(1.09)% (.12)% (.61)% (.25)% (.43)%
</TABLE>
See Notes to Financial Statements 31
<PAGE>
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class Z(a)
----------------
Six Months Ended
April 30, 2000
----------------------------------------------------------------------------------------
<S> <C> <C>
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 14.12
--------
Income from investment operations
Net investment income (loss) (.03)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .54
--------
Total from investment operations .51
--------
Less distributions
Distributions from net investment income (.18)
Distributions in excess of net investment income (.05)
Distributions from net realized gains --
--------
Total distributions (.23)
--------
Net asset value, end of period $ 14.40
--------
--------
TOTAL RETURN(b) 3.54%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 35,436
Average net assets (000) $ 42,039
Ratios to average net assets:
Total expenses 1.24%(c)
Operating expenses, including distribution fees 1.24%(c)
Operating expenses, excluding distribution fees 1.24%(c)
Net investment income (loss) (.34)%(c)
</TABLE>
------------------------------
(a) Calculated based upon weighted average shares outstanding during the period.
(b) 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. Total returns for periods of less than a full year are not
annualized.
(c) Annualized.
(d) Commencement of offering of Class Z shares.
32 See Notes to Financial Statements
<PAGE>
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
<TABLE>
<CAPTION>
Class Z(a)
---------------------------------------------------------------------------------------
March 1, 1996(d)
Year Ended September 30, Through
---------------------------------------------------------- October 31,
1999 1998 1997 1996
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
$ 9.17 $ 12.28 $ 15.89 $ 16.57
---------------- ---------------- ---------------- ----------
-- .08 .06 .11
5.06 (1.89) (3.32) (.79)
---------------- ---------------- ---------------- ----------
5.06 (1.81) (3.26) (.68)
---------------- ---------------- ---------------- ----------
(.11) -- -- --
-- (.44) -- --
-- (.86) (.35) --
---------------- ---------------- ---------------- ----------
(.11) (1.30) (.35) --
---------------- ---------------- ---------------- ----------
$ 14.12 $ 9.17 $ 12.28 $ 15.89
---------------- ---------------- ---------------- ----------
---------------- ---------------- ---------------- ----------
56.05% (15.36)% (21.02)% (4.09)%
$ 43,311 $ 12,429 $ 19,520 $ 37,288
$ 22,811 $ 15,099 $ 31,945 $ 33,868
1.47% 1.45% 1.23% 1.12%(c)
1.47% 1.45% 1.17% 1.12%(c)
1.47% 1.45% 1.17% 1.12%(c)
(.03)% .82% .39% .68%(c)
</TABLE>
See Notes to Financial Statements 33
<PAGE>
<PAGE>
Prudential Pacific Growth Fund, Inc.
Prudential Mutual Fund Family
Prudential offers a broad range of mutual funds designed
to meet your individual needs. For information about
these funds, contact your financial adviser or call us at
(800) 225-1852. Read the prospectus carefully before you
invest or send money.
STOCK FUNDS
Prudential Emerging Growth Fund, Inc.
Prudential Equity Fund, Inc.
Prudential Equity Income Fund
The Prudential Investment Portfolios, Inc.
Prudential Jennison Growth Fund
Prudential Jennison Growth & Income Fund
Prudential Real Estate Securities Fund
Prudential Sector Funds, Inc.
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Technology Fund
Prudential Utility Fund
Prudential Small-Cap Quantum Fund, Inc.
Prudential Small Company Value Fund, Inc.
Prudential Stock Index Fund
Prudential Tax-Managed Funds
Prudential Tax-Managed Equity Fund
Prudential 20/20 Focus Fund
Nicholas-Applegate Fund, Inc.
Nicholas-Applegate Growth Equity Fund
Target Funds
Large Capitalization Growth Fund
Large Capitalization Value Fund
Small Capitalization Growth Fund
Small Capitalization Value Fund
Asset Allocation/Balanced Funds
Prudential Balanced Fund
Prudential Diversified Funds
Conservative Growth Fund
Moderate Growth Fund
High Growth Fund
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund
GLOBAL FUNDS
Global Stock Funds
Prudential Developing Markets Fund
Prudential Developing Markets Equity Fund
Prudential Latin America Equity Fund
Prudential Europe Growth Fund, Inc.
Prudential Global Genesis Fund, Inc.
Prudential Natural Resources Fund, Inc.
Prudential Pacific Growth Fund, Inc.
Prudential World Fund, Inc.
Prudential Global Growth Fund
Prudential International Value Fund
Prudential Jennison International Growth Fund
Global Utility Fund, Inc.
Target Funds
International Equity Fund
Global Bond Funds
Prudential Global Total Return Fund, Inc.
Prudential International Bond Fund, Inc.
<PAGE>
www.prudential.com (800) 225-1852
BOND FUNDS
Taxable Bond Funds
Prudential Diversified Bond Fund, Inc.
Prudential Government Income Fund, Inc.
Prudential Government Securities Trust
Short-Intermediate Term Series
Prudential High Yield Fund, Inc.
Prudential High Yield Total Return Fund, Inc.
Prudential Structured Maturity Fund, Inc.
Income Portfolio
Target Funds
Total Return Bond Fund
Tax-Exempt Bond Funds
Prudential California Municipal Fund
California Series
California Income Series
Prudential Municipal Bond Fund
High Income Series
Insured Series
Prudential Municipal Series Fund
Florida Series
Massachusetts Series
New Jersey Series
New York Series
North Carolina Series
Ohio Series
Pennsylvania Series
Prudential National Municipals Fund, Inc.
MONEY MARKET FUNDS
Taxable Money Market Funds
Cash Accumulation Trust
Liquid Assets Fund
National Money Market Fund
Prudential Government Securities Trust
Money Market Series
U.S. Treasury Money Market Series
Prudential Special Money Market Fund, Inc.
Money Market Series
Prudential MoneyMart Assets, Inc.
Tax-Free Money Market Funds
Prudential Tax-Free Money Fund, Inc.
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>
Prudential Pacific Growth Fund, Inc.
Getting the Most from Your Prudential Mutual Fund
When you invest through Prudential Mutual Funds, you
receive financial advice from a Prudential Securities
Financial Advisor or Pruco Securities registered
representative. Your advisor or representative can
provide you with the following services:
There's No Reward Without Risk; but Is This Risk Worth
It?
Your financial advisor or registered representative can
help you match the reward you seek with the risk you can
tolerate. Risk can be difficult to gauge--sometimes even
the simplest investments bear surprising risks. The
educated investor knows that markets seldom move in just
one direction. There are times when a market sector or
asset class will lose value or provide little in the way
of total return. Managing your own expectations is easier
with help from someone who understands the markets and
who knows you!
Keeping Up With the Joneses
A financial advisor or registered representative can help
you wade through the numerous available mutual funds to
find the ones that fit your individual investment profile
and risk tolerance. While the newspapers and popular
magazines are full of advice about investing, they are
aimed at generic groups of people or representative
individuals--not at you personally. Your financial advisor
or registered representative will review your investment
objectives with you. This means you can make financial
decisions based on the assets and liabilities in your
current portfolio and your risk tolerance--not just based
on the current investment fad.
Buy Low, Sell High
Buying at the top of a market cycle and selling at the
bottom are among the most common investor mistakes. But
sometimes it's difficult to hold on to an investment when
it's losing value every month. Your financial advisor or
registered representative can answer questions when
you're confused or worried about your investment, and
should remind you that you're investing for the long
haul.
<PAGE>
www.prudential.com (800) 225-1852
For More Information
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Trustees
Delayne Dedrick Gold
Robert F. Gunia
Robert E. LaBlanc
David R. Odenath, Jr.
Robin B. Smith
Stephen Stoneburn
John R. Strangfeld
Nancy H. Teeters
Clay T. Whitehead
Officers
John R. Strangfeld, President
Robert F. Gunia, Vice President
David R. Odenath, Jr., Vice President
Grace C. Torres, Treasurer
Robert C. Rosselot, Secretary
William V. Healey, Assistant 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
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
194 Wood Avenue South
Iselin, NJ 08830
Independent Accountants
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell
125 Broad Street
New York, NY 10004
Fund Symbols NASDAQ CUSIP
Class A PRPAX 743941106
Class B PRPBX 743941205
Class C PRPCX 743941304
Class Z PPGZX 743941403
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.
The accompanying financial statements as
of April 30, 2000, were not audited and, accordingly, no
opinion is expressed on them.
<PAGE>
BULK RATE
U.S. POSTAGE
PAID
Permit 6807
New York, NY
(LOGO)
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
MF157E2 743941106 743941205 743941304 743941403
(LOGO) Printed on Recycled Paper
