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THE TARGET PORTFOLIO TRUST SM
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SUPPLEMENT TO PROSPECTUS DATED MAY 1, 1999
(AS REVISED ON MAY 27, 1999)
How the Trust is Managed
The section entitled 'How the Trust is Managed' is amended as follows.
The first paragraph under 'Small Capitalization Growth Portfolio' is amended
to read in its entirety as follows:
Sawgrass Asset Management, L.L.C. (Sawgrass) and Fleming Asset Management
USA (Fleming USA) are the Advisers for the Small Capitalization Growth
Portfolio. For their services as Advisers, Sawgrass and Fleming USA each
receive a fee from PIFM at the annual rate of .40% of the average daily
net assets of the portion of the Portfolio it manages. PIFM pays both
Sawgrass and Fleming USA out of the management fee it receives from the
Portfolio. Prior to September 1, 1999 (August 26, 1999 in the case of the
Portfolio segment managed by Fleming USA), each Adviser to the Portfolio
received a fee from PIFM at the annual rate of .30% of the average daily
net assets of their respective Portfolio segments. Because PIFM pays each
Adviser, the increase in the fee paid to the Portfolio's Advisers did not
affect the total expenses of the Portfolio or the Target Program fee.
Rather, the increase in the fee paid to the Advisers reduced the amount of
the management fee retained by PIFM with respect to the Portfolio.
The fourth and fifth paragraphs under 'Small Capitalization Growth Portfolio'
are amended to read in their entirety as follows:
Fleming USA is a division of Robert Fleming, Inc., the U.S. equity asset
management affiliate of Robert Fleming Holdings (Flemings Group).
Globally, the Flemings Group manages over $115 billion of assets on behalf
of private investors, companies, institutions, governments and central
banks. Approximately half of its assets under management are pension funds
for institutions. The balance of its assets under management are in open-
and
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closed-end pooled investment vehicles. Fleming USA's address is 320 Park
Avenue, New York, NY 10022.
Since August 1999, the assets of the Portfolio have been managed by a team
of portfolio managers. Eytan M. Shapiro, a Director and portfolio manager
of Fleming USA, is responsible for the day-to-day management of the
Portfolio's assets. Mr. Shapiro has been with Fleming USA since 1992 and
with the Flemings Group since 1985. The other members of the team are
Timothy R. V. Parton, Christopher M. V. Jones and T. Gary Lieberman. Mr.
Parton, a Director and portfolio manager with Fleming USA, has been with
Fleming USA since 1990 and with the Flemings Group since 1986. Mr. Jones,
a Director and portfolio manager of Fleming USA, as well as Chief
Investment Officer of its Small Cap Equity Group, joined Fleming USA in
1986 and began his career with the Flemings Group in 1982. Mr. Lieberman
is a Vice President and analyst with Fleming USA and has been with the
firm since 1995. Prior to joining Fleming USA, Mr. Lieberman was an
analyst with Saloman Brothers Asset Management.
The first paragraph under 'Small Capitalization Value Portfolio' is amended
to read in its entirety as follows:
Lazard Asset Management (Lazard) and Wood, Struthers & Winthrop Management
Corp. (WSW) are the Advisers for the Small Capitalization Value Portfolio.
For their services as Advisers, Lazard and WSW each receive a fee from
PIFM at the annual rate of .40% of the average daily net assets of the
portion of the Portfolio it manages. PIFM pays both Lazard and WSW out of
the management fee it receives from the Portfolio. Prior to September 1,
1999, Lazard and WSW each received a fee from PIFM at the annual rate of
.30% of the average daily net assets of their respective Portfolio
segments. Because PIFM pays each Adviser, this increase in the fee paid to
Lazard and WSW did not affect the total expenses of the Portfolio or the
Target Program fee. Rather, the increase in the fee paid to the Advisers
reduced the amount of the management fee retained by PIFM with respect to
the Portfolio.
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The third paragraph under 'International Bond Portfolio' is amended to read
in its entirety as follows:
Christopher A. Moth, Senior Portfolio Manager of Investment Strategy at
DIAL, has headed the team managing the Portfolio since August 1999. Mr.
Moth has been with DIAL since 1992. The other members of the portfolio
management team are W. Hywel Morgan, Joanna Bates and John Kirk, all of
whom are Senior Portfolio Managers with DIAL. Mr. Morgan has been with
DIAL since 1994. Ms. Bates has been with DIAL since 1997. Prior to joining
DIAL, Ms. Bates was an Associate Director at Hill Samuel Investment
Management. Mr. Kirk has been with DIAL since September 1998. Prior
thereto, Mr. Kirk was a Director and Vice President with the Royal Bank of
Canada in London.
How to Buy, Sell and Exchange Shares of the Trust
The section entitled 'How to Buy, Sell and Exchange Shares of the Trust' is
amended as follows.
The last sentence under 'Introduction' is amended to read in its entirety as
follows:
Participants in these programs would not have to pay the Target Program
fee, but may have to pay different fees charged by their broker-dealer or
financial adviser, in addition to their proportionate share of the
expenses of the Portfolios in which they invest.
The date of this Supplement is August 27, 1999
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