STATEMENT OF ADDITIONAL INFORMATION
MAY 1, 1996
PRUCO LIFE FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT
VARIABLE ANNUITY CONTRACTS
The DISCOVERY PREFERRED(SM) Annuity Contract* (the "Contract") is an individual
variable annuity contract issued by the Pruco Life Insurance Company ("Pruco
Life"), a stock life insurance company that is a wholly-owned subsidiary of The
Prudential Insurance Company of America ("The Prudential") and is funded through
the Pruco Life Flexible Premium Variable Annuity Account (the "Account"). The
Contract is purchased by making an initial purchase payment of $10,000 or more;
subsequent payments must be $1,000 or more.
This statement of additional information is not a prospectus and should be read
in conjunction with the Contract's prospectus, dated May 1, 1996, which is
available without charge upon written request to the Pruco Life Insurance
Company, 213 Washington Street, Newark, New Jersey 07102-2992, or by telephoning
(800) 445-4571.
PRUCO LIFE INSURANCE COMPANY
213 Washington Street
Newark, New Jersey 07102-2992
Telephone: (800) 445-4571
*DISCOVERY PREFERRED is a service mark of The Prudential.
DISCOP-1B Ed 5-96
Catalog No. 64M6294
<PAGE>
CONTENTS
PAGE
OTHER INFORMATION CONCERNING THE ACCOUNT..................................... 1
PRINCIPAL UNDERWRITER.................................................. 1
DETERMINATION OF SUBACCOUNT UNIT VALUES................................ 1
IRS REQUIRED DISTRIBUTIONS ON DEATH OF OWNER........................... 1
PERFORMANCE INFORMATION................................................ 1
COMPARATIVE PERFORMANCE INFORMATION.................................... 5
<PAGE>
OTHER INFORMATION CONCERNING THE ACCOUNT
PRINCIPAL UNDERWRITER
Pruco Securities Corporation ("Prusec"), an indirectly wholly-owned subsidiary
of The Prudential, performs all sales and distribution functions regarding the
Contracts and may be deemed to be the "principal underwriter" of the Account
under the Investment Company Act of 1940.
DETERMINATION OF SUBACCOUNT UNIT VALUES
The value for each Subaccount Unit is computed as of the end of each "valuation
period" as defined in the prospectus (also referred to in this section as
"business day"). On any given business day the value of a Unit in each
subaccount will be determined by multiplying the value of a Unit of that
subaccount for the preceding business day by the net investment factor for that
subaccount for the current business day. The net investment factor for any
business day is determined by dividing the value of the assets of the subaccount
for that day by the value of the assets of the subaccount for the preceding
business day (ignoring, for this purpose, changes resulting from new purchase
payments and withdrawals), and subtracting from the result the daily equivalent
of the 1.4% annual charge for administrative expenses and mortality and expense
risks. (See CHARGES, FEES, AND DEDUCTIONS in the prospectus.) The value of the
assets of a subaccount is determined by multiplying the number of shares of The
Prudential Series Fund, Inc. (the "Series Fund") held by that subaccount by the
net asset value of each share and adding the value of dividends declared by the
Series Fund but not yet paid.
IRS REQUIRED DISTRIBUTIONS ON DEATH OF OWNER
If the Contract owner dies before the entire interest in the Contract is
distributed, the value of the Contract must be distributed to the designated
beneficiary as described in this section so that the Contract qualifies as an
annuity under the Internal Revenue Code.
If the death occurs on or after the annuity date, the remaining portion of the
interest in the Contract must be distributed at least as rapidly as under the
method of distribution being used as of the date of death. If the death occurs
before the annuity date, the entire interest in the Contract must be distributed
within 5 years after date of death. However, if an annuity payment option is
selected by the designated beneficiary and if annuity payments begin within 1
year of the owner's death, the value of the Contract may be distributed over the
beneficiary's life or a period not exceeding the beneficiary's life expectancy.
The owner's designated beneficiary is the person to whom ownership of the
Contract passes by reason of death, and must be a natural person. Special
additional rules apply to Contracts issued in conjunction with plans subject to
Section 457 of the Code. For Contracts purchased in connection with a tax
favored plan where the owner's spouse is the beneficiary, annuity payments need
only begin on or before April 1 of the calendar year following the calendar year
in which the owner would have attained age 70 1/2 or in some instances the
remaining interest in the Contract may be rolled over to an IRA owned by the
spouse.
If any portion of the Contract owner's interest is payable to (or for the
benefit of) the surviving spouse of the owner, the Contract may be continued
with the surviving spouse as the owner. This rule does not apply to Contracts
issued in connection with tax favored plans other than IRAs.
PERFORMANCE INFORMATION
The tables that follow provide performance information for each subaccount
through December 31, 1995. The performance information is based on historical
experience and does not indicate or represent future performance.
1
<PAGE>
AVERAGE ANNUAL TOTAL RETURN
The DISCOVERY PREFERRED Annuity is a new contract. The returns shown below were
calculated using historical investment returns of the portfolios of the Series
Fund. All fees, expenses and charges associated with the DISCOVERY PREFERRED
Annuity and the Series Fund have been reflected in these returns, as if the
Contract had existed from the inception date of each Series Fund portfolio.
Table 1 below shows the average annual rates of total return on hypothetical
investments of $1,000 for periods ended December 31, 1995 in each subaccount
other than the Money Market Subaccount. These figures assume withdrawal of the
investments at the end of the period other than to effect an annuity under the
Contract.
TABLE 1
AVERAGE ANNUAL TOTAL RETURN
================================================================================
FROM DATE
PORTFOLIO
ONE YEAR FIVE YEARS TEN YEARS ESTABLISHED
SERIES FUND DATE ENDED ENDED ENDED THROUGH
PORTFOLIOS ESTABLISHED 12/31/95 12/31/95 12/31/95 12/31/95
================================================================================
DIVERSIFIED BOND 6/83 12.77 8.20 7.87 8.65
- --------------------------------------------------------------------------------
CONSERVATIVE 6/83 9.35 8.92 8.55 9.10
BALANCED
- --------------------------------------------------------------------------------
FLEXIBLE MANAGED 5/83 16.12 11.64 9.98 10.15
- --------------------------------------------------------------------------------
HIGH YIELD BOND 2/87 9.64 15.62 N/A 7.08
- --------------------------------------------------------------------------------
STOCK INDEX 10/87 28.88 14.33 N/A 14.07
- --------------------------------------------------------------------------------
EQUITY INCOME 2/88 13.73 14.43 N/A 12.34
- --------------------------------------------------------------------------------
EQUITY 6/83 23.18 16.99 13.24 13.14
- --------------------------------------------------------------------------------
PRUDENTIAL JENNISON 5/95 N/A N/A N/A 16.96
- --------------------------------------------------------------------------------
SMALL CAPITALIZATION 5/95 N/A N/A N/A 12.33
STOCK
- --------------------------------------------------------------------------------
GLOBAL 9/88 7.98 9.41 N/A 7.76
- --------------------------------------------------------------------------------
NATURAL RESOURCES 5/88 18.87 10.71 N/A 10.69
================================================================================
The average annual rates of total return shown above are computed by finding the
average annual compounded rates of return over the periods shown that would
equate the initial amount invested to the withdrawal value, in accordance with
the following formula: P(1+T)"- ERA. In the formula, P is a hypothetical
investment of $1,000; T is the average annual total return; " is the number of
years; and ERA is the withdrawal value at the end of the periods shown. These
figures assume deduction of the maximum withdrawal charge that may be applicable
to a particular period. The rates of return for the Prudential Jennison and
Small Capitalization Stock portfolios are for an eight month period and are not
annualized.
2
<PAGE>
NON-STANDARD TOTAL RETURN
Table 2 below shows the average annual rates of return as in Table 1, but
assumes that the investments are not withdrawn at the end of the period or that
the Contract owner annuitizes at the end of the period.
TABLE 2
AVERAGE ANNUAL TOTAL RETURN ASSUMING NO WITHDRAWAL
================================================================================
FROM DATE
PORTFOLIOS
ONE YEAR FIVE YEARS TEN YEARS ESTABLISHED
SERIES FUND DATE ENDED ENDED ENDED THROUGH
PORTFOLIO ESTABLISHED 12/31/95 12/31/95 12/31/95 12/31/95
================================================================================
DIVERSIFIED BOND 6/83 19.07 8.42 7.87 8.65
- --------------------------------------------------------------------------------
CONSERVATIVE 6/83 15.65 9.13 8.55 9.10
BALANCED
- --------------------------------------------------------------------------------
FLEXIBLE MANAGED 5/83 22.42 11.83 9.98 10.15
- --------------------------------------------------------------------------------
HIGH YIELD BOND 2/87 15.94 15.79 N/A 7.08
- --------------------------------------------------------------------------------
STOCK INDEX 10/87 35.18 14.50 N/A 14.07
- --------------------------------------------------------------------------------
EQUITY INCOME 2/88 20.03 14.61 N/A 12.34
- --------------------------------------------------------------------------------
EQUITY 6/83 29.48 17.15 13.24 13.14
- --------------------------------------------------------------------------------
PRUDENTIAL JENNISON 5/95 N/A N/A N/A 23.26
- --------------------------------------------------------------------------------
SMALL CAPITALIZATION 5/95 N/A N/A N/A 18.63
STOCK
- --------------------------------------------------------------------------------
GLOBAL 9/88 14.28 9.62 N/A 7.76
- --------------------------------------------------------------------------------
NATURAL RESOURCES 5/88 25.17 10.91 N/A 10.69
================================================================================
3
<PAGE>
Table 3 shows the cumulative total return for the portfolios, assuming no
withdrawal.
TABLE 3
CUMULATIVE TOTAL RETURN ASSUMING NO WITHDRAWAL
================================================================================
FROM DATE
PORTFOLIOS
ONE YEAR FIVE YEARS TEN YEARS ESTABLISHED
SERIES FUND DATE ENDED ENDED ENDED THROUGH
PORTFOLIOS ESTABLISHED 12/31/95 12/31/95 12/31/95 12/31/95
================================================================================
DIVERSIFIED BOND 6/83 19.07 49.78 113.32 183.73
- --------------------------------------------------------------------------------
CONSERVATIVE 6/83 15.65 54.79 127.12 198.96
BALANCED
- --------------------------------------------------------------------------------
FLEXIBLE MANAGED 5/83 22.42 74.90 158.81 238.00
- --------------------------------------------------------------------------------
HIGH YIELD BOND 2/87 15.94 108.12 N/A 83.27
- --------------------------------------------------------------------------------
STOCK INDEX 10/87 35.18 96.82 N/A 194.39
- --------------------------------------------------------------------------------
EQUITY INCOME 2/88 20.03 97.73 N/A 149.74
- --------------------------------------------------------------------------------
EQUITY 6/83 29.48 120.69 246.69 372.06
- --------------------------------------------------------------------------------
PRUDENTIAL JENNISON 5/95 N/A N/A N/A 23.26
- --------------------------------------------------------------------------------
SMALL CAPITALIZATION 5/95 N/A N/A N/A 18.63
STOCK
- --------------------------------------------------------------------------------
GLOBAL 9/88 14.28 58.31 N/A 72.29
- --------------------------------------------------------------------------------
NATURAL RESOURCES 5/88 25.17 67.82 N/A 117.84
================================================================================
MONEY MARKET SUBACCOUNT YIELD
The "yield" and "effective yield" figures for the Money Market Subaccount shown
below were calculated using historical investment returns of the Money Market
Portfolio of the Series Fund. All fees, expenses and charges associated with the
DISCOVERY PREFERRED Annuity and the Series Fund have been reflected.
The "yield" and "effective yield" of the Money Market Subaccount for the seven
days ended December 31, 1995 were 5.5493% and 5.7031% respectively.
The yield is computed by determining the net change, exclusive of capital
changes, in the value of a hypothetical pre-existing account having a balance of
one accumulation unit of the Money Market Subaccount at the beginning of the
period, subtracting a hypothetical charge reflecting deductions from contract
owner accounts, and dividing the difference by the value of the subaccount at
the beginning of the base period to obtain the base period return, and then
multiplying the base period return by (365/7), with the resulting figure carried
to the nearest ten-thousandth of 1%.
The deduction referred to above consists of the 1.25% charge for mortality and
expense risks and the 0.15% charge for administration. It does not reflect the
withdrawal charge.
The effective yield is obtained by taking the base period return, adding 1,
raising the sum to a power equal to 365 divided by 7, and subtracting 1 from the
result, according to the following formula: Effective Yield - ((base period
return + 1) 365/7) - 1.
The yields on amounts held in the Money Market Subaccount will fluctuate on a
daily basis. Therefore, the stated yields for any given period are not an
indication of future yields.
4
<PAGE>
COMPARATIVE PERFORMANCE INFORMATION
Reports or advertising may include comparative performance information,
including, but not limited to: (1) comparisons to market indices such as the Dow
Jones Industrial Average, the Standard & Poor's 500 Index, the Value Line
Composite Index, the Russell 2000 Index, the Morgan Stanley World Index, the
Lehman Brothers bond indices; (2) comparisons to other investments, such as
certificates of deposit; (3) performance rankings assigned by services such as
Morningstar, Inc. and Variable Annuity Research and Data Services (VARDS), and
Lipper Analytical Services, Inc.; (4) data presented by analysts such as Dow
Jones, A.M. Best, The Bank Rate Monitor National Index; and (5) data in
publications such as The Wall Street Journal, Times, Forbes, Barrons, Fortune,
Money Magazine, and Financial World.
5
<PAGE>
FLEXIBLE PREMIUM VARIABLE ANNUITY ACCOUNT
VARIABLE ANNUITY CONTRACTS
PRUCO LIFE INSURANCE COMPANY
213 Washington Street
Newark, New Jersey 07102-2992
Telephone: (800) 445-4571
<TABLE>
<CAPTION>
ANNUALIZED RATES OF RETURN
AVG POLICY SIZE 1000 $0.00 ANNUAL CHG
EQUITY PRUDENTIAL
DISCOVERY PREFERRED BOND EQUITY FLEXIBLE CONS HIDIV INCOME NATR GLOBAL JENNISON SMCAP STIX
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1 YEAR % OF RETURN 19.07% 29.48% 22.42% 15.65% 20.03% 15.94% 25.17% 14.28% N/A N/A 35.18%
ERV(ENDING REDEEMABLE VALUE) 1190.67 1294.82 1224.19 1156.54 1200.29 1159.41 1251.74 1142.82 N/A N/A 1351.76
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 N/A N/A 0.00
ERV LESS ADMIN CHARGE 1190.67 1294.82 1224.19 1156.54 1200.29 1159.41 1251.74 1142.82 N/A N/A 1351.76
ROR BEFORE LOAD 19.07% 29.48% 22.42% 15.65% 20.03% 15.94% 25.17% 14.28% N/A N/A 35.18%
CHARGE-FREE AMOUNT 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 N/A N/A 100.00
AMT SUBJ TO LOAD 900.00 900.00 900.00 900.00 900.00 900.00 900.00 900.00 N/A N/A 900.00
1ST YEAR SALE CHARGE 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% 7.00% N/A N/A 7.00%
AMT OF LOAD 63.00 63.00 63.00 63.00 63.00 63.00 63.00 63.00 N/A N/A 63.00
ERV LESS ADMIN CHG & LOAD 1127.67 1231.82 1161.19 1093.54 1137.29 1096.41 1188.74 1079.82 N/A N/A 1288.76
=================================================================================================================================
RETURN W/SALES LOAD AND ADM CHG 12.77% 23.18% 16.12% 9.35% 13.73% 9.64% 18.87% 7.98% N/A N/A 28.88%
</TABLE>
ANNUALIZED RATES OF RETURN $0.00
AVG POLICY SIZE 1000
<TABLE>
<CAPTION>
EQUITY PRUDENTIAL
DISCOVERY PREFERRED BOND EQUITY FLEXIBLE CONS HIDIV INCOME NATR GLOBAL JENNISON SMCAP STIX
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
5 YR RATE OF RETURN
YEARS IN EXISTENCE 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 0.00 0.00 5.00
'90(OR INCEPT) TO '91 ROR 14.83% 24.27% 23.69% 17.43% 25.74% 37.24% 8.77% 9.84% N/A N/A 27.93%
'90 TO '91 ERV 1148.32 1242.72 1236.92 1174.25 1257.37 1372.45 1087.73 1098.44 N/A N/A 1279.34
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 N/A N/A 0.00
'90 TO '91 ERV LESS ADMIN CHG 1148.32 1242.72 1236.92 1174.25 1257.37 1372.45 1087.73 1098.44 N/A N/A 1279.34
'91(OR INCEPT) TO '92 ROR 5.69% 12.58% 6.11% 5.47% 8.60% 15.90% 5.81% -4.77% N/A N/A 5.64%
'91 TO '92 ERV 1213.67 1399.11 1312.49 1238.44 1365.53 1590.72 1150.90 1046.06 N/A N/A 1351.46
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 N/A N/A 0.00
'91 TO '92 ERV LESS ADMIN CHG 1213.67 1399.11 1312.49 1238.44 1365.53 1590.72 1150.90 1046.06 N/A N/A 1351.46
'92(OR INCEPT) TO '93 ROR 8.62% 20.19% 13.98% 10.65% 20.59% 17.62% 23.42% 41.17% N/A N/A 8.16%
'92 TO '93 ERV 1318.25 1681.58 1496.02 1370.39 1646.74 1871.08 1420.47 1476.74 N/A N/A 1461.71
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 N/A N/A 0.00
'92 TO '93 ERV LESS ADMIN CHG 1318.25 1681.58 1496.02 1370.39 1646.74 1871.08 1420.47 1476.74 N/A N/A 1461.71
'93(OR INCEPT) TO '94 ROR -4.57% 1.36% -4.50% -2.34% 0.04% -4.06% -5.62% -6.20% N/A N/A -0.39%
'93 TO '94 ERV 1257.98 1704.40 1428.66 1338.37 1647.34 1795.04 1340.66 1385.24 N/A N/A 1456.04
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 N/A N/A 0.00
'93 TO '94 ERV LESS ADMIN CHG 1257.98 1704.40 1428.66 1338.37 1647.34 1795.04 1340.66 1385.24 N/A N/A 1456.04
'94(OR INCEPT) TO '95 ROR 19.07% 29.48% 22.42% 15.65% 20.03% 15.94% 25.17% 14.28% N/A N/A 35.18%
'94 TO '95 ERV 1497.84 2206.90 1748.95 1547.88 1977.29 2081.19 1678.17 1583.08 N/A N/A 1968.21
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 N/A N/A 0.00
'94 TO '95 ERV LESS ADMIN CHG 1497.84 2206.90 1748.95 1547.88 1977.29 2081.19 1678.17 1583.08 N/A N/A 1968.21
ANNUALIZED ROR BEFORE LOAD 8.42% 17.15% 11.83% 9.13% 14.61% 15.79% 10.91% 9.62% N/A N/A 14.50%
CHARGE-FREE AMOUNT 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 N/A N/A 500.00
AMT SUBJ TO LOAD 500.00 500.00 500.00 500.00 500.00 500.00 500.00 500.00 N/A N/A 500.00
5TH (OR INCEPTION) SALE CHARGE 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% 3.00% N/A N/A 3.00%
AMT OF LOAD 15.00 15.00 15.00 15.00 15.00 15.00 15.00 15.00 N/A N/A 15.00
ERV LESS LOAD 1482.84 2191.90 1733.95 1532.88 1962.29 2066.19 1663.17 1568.08 N/A N/A 1953.21
====================================================================================================================================
ANN.5YR RET W/LOAD AND ADM CHG 8.20% 16.99% 11.64% 8.92% 14.43% 15.62% 10.71% 9.41% N/A N/A 14.33%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUALIZED RATES OF RETURN
DISCOVERY PREFERRED
EQUITY PRUDENTIAL
10 YR RATE OF RETURN BOND EQUITY FLEXIBLE CONS INCOME HIYLD NATR GLOBAL JENNISON SMCAP STIX
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
YEARS IN EXISTENCE 10.00 10.00 10.00 10.00 7.86 8.85 7.67 7.28 0.67 0.67 8.20
'84 TO '85 ERV LESS ADMIN CHG 1,000.00 1,000.00 1,000.00 1,000.00 N/A N/A N/A N/A N/A N/A N/A
'85 TO '86 ROR 12.88% 13.51% 13.82% 12.60% N/A N/A N/A N/A N/A N/A N/A
'85 TO '86 ERV 1,128.78 1,135.10 1,138.21 1,125.98 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'85 TO '86 ERV LESS ADMIN CHG 1,128.78 1,135.10 1,138.21 1,125.98 N/A N/A N/A N/A N/A N/A N/A
'86 TO '87 ROR -1.09% 0.26% -3.18% 0.14% N/A N/A N/A N/A N/A N/A N/A
'86 TO '87 ERV 1,116.51 1,138.03 1,102.01 1,127.50 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'86 TO '87 ERV LESS ADMIN CHG 1,116.51 1,138.03 1,102.01 1,127.50 N/A N/A N/A N/A N/A N/A N/A
'87(OR INCEPT) TO '88 ROR 6.70% 15.44% 11.27% 8.67% N/A N/A N/A N/A N/A N/A N/A
'87 TO '88 ERV 1,191.33 1,313.73 1,226.22 1,225.24 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'87 TO '88 ERV LESS ADMIN CHG 1,191.33 1,313.73 1,226.22 1,225.24 N/A N/A N/A N/A N/A N/A N/A
'88(OR INCEPT) TO '89 ROR 11.92% 27.94% 20.09% 15.37% N/A N/A N/A N/A N/A N/A N/A
'88 TO '89 ERV 1,333.39 1,680.80 1,472.61 1,413.58 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'88 TO '89 ERV LESS ADMIN CHG 1,333.39 1,680.80 1,472.61 1,413.58 N/A N/A N/A N/A N/A N/A N/A
'89(OR INCEPT) TO '90 ROR 6.81% -6.54% 0.49% 3.80% N/A N/A N/A N/A N/A N/A N/A
'89 TO '90 ERV 1,424.21 1,570.95 1,479.81 1,467.32 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'89 TO '90 ERV LESS ADMIN CHG 1,424.21 1,570.95 1,479.81 1,467.32 N/A N/A N/A N/A N/A N/A N/A
'90(OR INCEPT) TO '91 ROR 14.83% 24.27% 23.69% 17.43% N/A N/A N/A N/A N/A N/A N/A
'90 TO '91 ERV 1,635.45 1,952.25 1,830.40 1,723.00 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'90 TO '91 ERV LESS ADMIN CHG 1,635.45 1,952.25 1,830.40 1,723.00 N/A N/A N/A N/A N/A N/A N/A
'91(OR INCEPT) TO '92 ROR 5.69% 12.58% 6.11% 5.47% N/A N/A N/A N/A N/A N/A N/A
'91 TO '92 ERV 1,728.53 2,197.94 1,942.23 1,817.18 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'91 TO '92 ERV LESS ADMIN CHG 1,728.53 2,197.94 1,942.23 1,817.18 N/A N/A N/A N/A N/A N/A N/A
'92(OR INCEPT) TO '93 ROR 8.62% 20.19% 13.98% 10.65% N/A N/A N/A N/A N/A N/A N/A
'92 TO '93 ERV 1,877.47 2,641.69 2,213.82 2,010.80 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'92 TO '93 ERV LESS ADMIN CHG 1,877.47 2,641.69 2,213.82 2,010.80 N/A N/A N/A N/A N/A N/A N/A
'93(OR INCEPT) TO '94 ROR -4.57% 1.36% -4.50% -2.34% N/A N/A N/A N/A N/A N/A N/A
'93 TO '94 ERV 1,791.63 2,677.54 2,114.14 1,963.82 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'93 TO '94 ERV LESS ADMIN CHG 1,791.63 2,677.54 2,114.14 1,963.82 N/A N/A N/A N/A N/A N/A N/A
'94(OR INCEPT) TO '95 ROR 19.07% 29.48% 22.42% 15.65% N/A N/A N/A N/A N/A N/A N/A
'94 TO '95 ERV 2,133.24 3,466.95 2,588.11 2,271.23 N/A N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
'94 TO '95 ERV LESS ADMIN CHG 2,133.24 3,466.95 2,588.11 2,271.23 N/A N/A N/A N/A N/A N/A N/A
ANNUALIZED ROR BEFORE LOAD 7.87% 13.24% 9.98% 8.55% N/A N/A N/A N/A N/A N/A N/A
CHARGE-FREE AMOUNT 1,000.00 1,000.00 1,000.00 1,000.00 N/A N/A N/A N/A N/A N/A N/A
AMT SUBJ TO LOAD 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
10TH YEAR SALE CHARGE 0.00% 0.00% 0.00% 0.00% N/A N/A N/A N/A N/A N/A N/A
AMT OF LOAD 0.00 0.00 0.00 0.00 N/A N/A N/A N/A N/A N/A N/A
ERV LESS LOAD 2,133.24 3,466.95 2,588.11 2,271.23 N/A N/A N/A N/A N/A N/A N/A
===============================================================================================================================
ANN.10YR RET W/LOAD AND ADM CHG 7.87% 13.24% 9.98% 8.55% N/A N/A N/A N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
ANNUALIZED RATES OF RETURN
DISCOVERY PREFERRED
EQUITY
SINCE INCEPTION RATE OF RETURN BOND EQUITY FLEXIBLE CONS INCOME
<S> <C> <C> <C> <C> <C>
YEARS IN EXISTENCE 12.56 12.57 12.60 12.58 7.86
INCEPT. TO '83 ROR 1.84% -2.18% -1.09% 1.21% N/A
INCEPT. TO '83 ERV 1018.39 978.16 989.06 1012.08 N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A
INCEPT. TO 83 ERV LESS ADMIN CHG 1018.39 978.16 989.06 1012.08 N/A
'83 (OR INCEPT) TO '84 ROR 11.64% 6.24% 6.32% 8.92% N/A
'83 TO '84 ERV 1136.95 1039.16 1051.59 1102.38 N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A
'83 TO '84 ERV LESS ADMIN CHG 1136.95 1039.16 1051.59 1102.38 N/A
'84 TO '85 ROR 16.98% 31.03% 24.19% 19.40% N/A
'84 TO '85 ERV 1330.06 1361.61 1305.95 1316.29 N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A
'84 TO '85 ERV LESS ADMIN CHG 1330.06 1361.61 1305.95 1316.29 N/A
'85 TO '86 ROR 12.88% 13.51% 13.82% 12.60% N/A
'85 TO '86 ERV 1501.34 1545.56 1486.45 1482.11 N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A
'85 TO '86 ERV LESS ADMIN CHG 1501.34 1545.56 1486.45 1482.11 N/A
'86(OR INCEPT) TO '87 ROR -1.09% 0.26% -3.18% 0.14% N/A
'86 TO '87 ERV 1485.02 1549.55 1439.17 1484.12 N/A
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 N/A
'86 TO '87 ERV LESS ADMIN CHG 1485.02 1549.55 1439.17 1484.12 N/A
'87(OR INCEPT) TO '88 ROR 6.70% 15.44% 11.27% 8.67% 9.98%
'87 TO '88 ERV 1584.54 1788.79 1601.38 1612.77 1099.77
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00
'87 TO '88 ERV LESS ADMIN CHG 1584.54 1788.79 1601.38 1612.77 1099.77
'88(OR INCEPT) TO '89 ROR 11.92% 27.94% 20.09% 15.37% 20.97%
'88 TO '89 ERV 1773.49 2288.59 1923.15 1860.68 1330.38
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00
'88 TO '89 ERV LESS ADMIN CHG 1,773.49 2,288.59 1,923.15 1,860.68 1,330.38
'89(OR INCEPT) TO '90 ROR 6.81% -6.54% 0.49% 3.80% -5.06%
'89 TO '90 ERV 1,894.28 2,139.02 1,932.56 1,931.42 1,263.06
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00
'89 TO '90 ERV LESS ADMIN CHG 1,894.28 2,139.02 1,932.56 1,931.42 1,263.06
'90(OR INCEPT) TO '91 ROR 14.83% 24.27% 23.69% 17.43% 25.74%
'90 TO '91 ERV 2,175.24 2,658.20 2,390.42 2,267.97 1,588.13
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00
'90 TO '91 ERV LESS ADMIN CHG 2,175.24 2,658.20 2,390.42 2,267.97 1,588.13
'91(OR INCEPT) TO '92 ROR 5.69% 12.58% 6.11% 5.47% 8.60%
'91 TO '92 ERV 2,299.04 2,992.73 2,536.45 2,391.94 1,724.75
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00
'91 TO '92 ERV LESS ADMIN CHG 2,299.04 2,992.73 2,536.45 2,391.94 1,724.75
'92(OR INCEPT) TO '93 ROR 8.62% 20.19% 13.98% 10.65% 20.59%
'92 TO '93 ERV 2,497.15 3,596.95 2,891.14 2,646.80 2,079.94
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00
'92 TO '93 ERV LESS ADMIN CHG 2,497.15 3,596.95 2,891.14 2,646.80 2,079.94
'93(OR INCEPT) TO '94 ROR -4.57% 1.36% -4.50% -2.34% 0.04%
'93 TO '94 ERV 2,382.97 3,645.76 2,760.96 2,584.96 2,080.69
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00
'93 TO '94 ERV LESS ADMIN CHG 2,382.97 3,645.76 2,760.96 2,584.96 2,080.69
'94(OR INCEPT) TO '95 ROR 19.07% 29.48% 22.42% 15.65% 20.03%
'94 TO '95 ERV 2,837.34 4,720.62 3,379.95 2,989.60 2,497.43
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00
'94 TO '95 ERV LESS ADMIN CHG 2,837.34 4,720.62 3,379.95 2,989.60 2,497.43
ANNUALIZED ROR BEFORE LOAD 8.65% 13.14% 10.15% 9.10% 12.34%
CHARGE-FREE AMOUNT 1,300.00 1,300.00 1,300.00 1,300.00 800.00
AMT SUBJ TO LOAD (300.00) (300.00) (300.00) (300.00) 200.00
10TH OR INCEPTION SALE CHARGE 0.00% 0.00% 0.00% 0.00% 0.00%
AMT OF LOAD 0.00 0.00 0.00 0.00 0.00
ERV LESS LOAD 2,837.34 4,720.62 3,379.95 2,989.60 2,497.43
===================================================================================================
ANNUALIZED SINCE INCEPTION 8.65% 13.14% 10.15% 9.10% 12.34%
RETURN W/LOAD AND ADM CHG
</TABLE>
<TABLE>
<CAPTION>
ANNUALIZED RATES OF RETURN
DISCOVERY PREFERRED
PRUDENTIAL
SINCE INCEPTION RATE OF RETURN HIYLD NATR GLOBAL JENNISON SMCAP STIX
<S> <C> <C> <C> <C> <C> <C>
YEARS IN EXISTENCE 8.85 7.67 7.28 0.67 0.67 8.20
INCEPT. TO '83 ROR N/A N/A N/A N/A N/A N/A
INCEPT. TO '83 ERV N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE N/A N/A N/A N/A N/A N/A
INCEPT. TO 83 ERV LESS ADMIN CHG N/A N/A N/A N/A N/A N/A
'83 (OR INCEPT) TO '84 ROR N/A N/A N/A N/A N/A N/A
'83 TO '84 ERV N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE N/A N/A N/A N/A N/A N/A
'83 TO '84 ERV LESS ADMIN CHG N/A N/A N/A N/A N/A N/A
'84 TO '85 ROR N/A N/A N/A N/A N/A N/A
'84 TO '85 ERV N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE N/A N/A N/A N/A N/A N/A
'84 TO '85 ERV LESS ADMIN CHG N/A N/A N/A N/A N/A N/A
'85 TO '86 ROR N/A N/A N/A N/A N/A N/A
'85 TO '86 ERV N/A N/A N/A N/A N/A N/A
ANNUAL ADMIN CHARGE N/A N/A N/A N/A N/A N/A
'85 TO '86 ERV LESS ADMIN CHG N/A N/A N/A N/A N/A N/A
'86(OR INCEPT) TO '87 ROR -6.03% N/A N/A N/A N/A 7.06%
'86 TO '87 ERV 939.66 N/A N/A N/A N/A 1070.56
ANNUAL ADMIN CHARGE 0.00 N/A N/A N/A N/A 0.00
'86 TO '87 ERV LESS ADMIN CHG 939.66 N/A N/A N/A N/A 1070.56
'87(OR INCEPT) TO '88 ROR 11.61% 4.43% 8.15% N/A N/A 13.86%
'87 TO '88 ERV 1048.77 1044.34 1081.47 N/A N/A 1218.99
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 N/A N/A 0.00
'87 TO '88 ERV LESS ADMIN CHG 1048.77 1044.34 1081.47 N/A N/A 1218.99
'88(OR INCEPT) TO '89 ROR -3.40% 33.76% 17.19% N/A N/A 29.13%
'88 TO '89 ERV 1013.11 1396.93 1267.34 N/A N/A 1574.08
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 N/A N/A 0.00
'88 TO '89 ERV LESS ADMIN CHG 1,013.11 1,396.93 1,267.34 N/A N/A 1,574.08
'89(OR INCEPT) TO '90 ROR -13.08% -7.08% -14.12% N/A N/A -4.98%
'89 TO '90 ERV 880.59 1,298.07 1,088.34 N/A N/A 1,495.72
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 N/A N/A 0.00
'89 TO '90 ERV LESS ADMIN CHG 880.59 1,298.07 1,088.34 N/A N/A 1,495.72
'90(OR INCEPT) TO '91 ROR 37.24% 8.77% 9.84% N/A N/A 27.93%
'90 TO '91 ERV 1,208.57 1,411.95 1,195.48 N/A N/A 1,913.54
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 N/A N/A 0.00
'90 TO '91 ERV LESS ADMIN CHG 1,208.57 1,411.95 1,195.48 N/A N/A 1,913.54
'91(OR INCEPT) TO '92 ROR 15.90% 5.81% -4.77% N/A N/A 5.64%
'91 TO '92 ERV 1,400.78 1,493.95 1,138.47 N/A N/A 2,021.41
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 N/A N/A 0.00
'91 TO '92 ERV LESS ADMIN CHG 1,400.78 1,493.95 1,138.47 N/A N/A 2,021.41
'92(OR INCEPT) TO '93 ROR 17.62% 23.42% 41.17% N/A N/A 8.16%
'92 TO '93 ERV 1,647.66 1,843.88 1,607.20 N/A N/A 2,186.30
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 N/A N/A 0.00
'92 TO '93 ERV LESS ADMIN CHG 1,647.66 1,843.88 1,607.20 N/A N/A 2,186.30
'93(OR INCEPT) TO '94 ROR -4.06% -5.62% -6.20% N/A N/A -0.39%
'93 TO '94 ERV 1,580.70 1,740.28 1,507.62 N/A N/A 2,177.83
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 N/A N/A 0.00
'93 TO '94 ERV LESS ADMIN CHG 1,580.70 1,740.28 1,507.62 N/A N/A 2,177.83
--------------------
'94(OR INCEPT) TO '95 ROR 15.94% 25.17% 14.28% 23.26% 18.63% 35.18%
--------------------
'94 TO '95 ERV 1,832.68 2,178.38 1,722.94 1,232.60 1,186.28 2,943.89
ANNUAL ADMIN CHARGE 0.00 0.00 0.00 0.00 0.00 0.00
'94 TO '95 ERV LESS ADMIN CHG 1,832.68 2,178.38 1,722.94 1,232.60 1,186.28 2,943.89
ANNUALIZED ROR BEFORE LOAD 7.08% 10.69% 7.76% 36.76% 29.14% 14.07%
CHARGE-FREE AMOUNT 900.00 800.00 800.00 100.00 100.00 900.00
AMT SUBJ TO LOAD 100.00 200.00 200.00 900.00 900.00 100.00
10TH OR INCEPTION SALE CHARGE 0.00% 0.00% 0.00% 7.00% 7.00% 0.00%
AMT OF LOAD 0.00 0.00 0.00 63.00 63.00 0.00
--------------------
ERV LESS LOAD 1,832.68 2,178.38 1,722.94 1,169.60 1,123.28 2,943.89
--------------------
=======================================================================================================
ANNUALIZED SINCE INCEPTION 7.08% 10.69% 7.76% 26.43% 19.01% 14.07%
RETURN W/LOAD AND ADM CHG
</TABLE>
The amounts for the Prudential Jennison and Small
Capitalization Stock portfolios are not annualized.
Since these two portfolios have been in existence
for less than one year, annualizing these rates of
return would represent predicting future returns, which
is not allowable.
<PAGE>
CUMULATIVE TOTAL
<TABLE>
<CAPTION>
A B C
5 YEAR 10 YEAR SINCE INCEPT D E=(A/D)-1 F=(B/D)-1 G=(C/D)-1
------ -------- ------------ -------- --------- --------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
DIBOND 1,497.84 2,133.24 2,837.34 1,000.00 49.78% 113.32% 183.73%
FLXMGD 1,748.95 2,588.11 3,379.95 1,000.00 74.90% 158.81% 238.00%
CONSBL 1,547.88 2,271.23 2,989.60 1,000.00 54.79% 127.12% 198.96%
HIYLD 2,081.19 N/A 1,832.68 1,000.00 108.12% N/A 83.27%
EQINC 1,977.29 N/A 2,497.43 1,000.00 97.73% N/A 149.74%
EQUITY 2,206.90 3,466.95 4,720.62 1,000.00 120.69% 246.69% 372.06%
PRUJEN N/A N/A 1,232.60 1,000.00 N/A N/A 23.26%
SMCAP N/A N/A 1,186.28 1,000.00 N/A N/A 18.63%
GLOBAL 1,583.08 N/A 1,722.94 1,000.00 58.31% N/A 72.29%
NATR 1,678.17 N/A 2,178.38 1,000.00 67.82% N/A 117.84%
STIX 1,968.21 N/A 2,943.89 1,000.00 96.82% N/A 194.39%
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UNIT VALUES FOR THE LAST DAY OF EVERY QUARTER SINCE INCEPTION FOR THE DISCOVERY PREFERRED PRODUCT
EQUITY PRUDENTIAL
Discovery Preferred BOND EQUITY FLEXIBLE CONS INCOME HIYLD NATR GLOBAL JENNISON SMCAP STIX
08- 06- 27- 02- 19- 23- 01- 19- 01- 01- 19-
INCEPTION DATE Jun-83 Jun-83 May-83 Jun-83 Feb-88 Feb-87 May-88 Sep-88 May-95 May-95 Oct-87
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WHOLE YEARS SINCE
INCEPTION 12.56 12.57 12.60 12.58 7.86 8.85 7.67 7.28 0.67 0.67 8.20
INCEPTION UNIT VALUE 0.99691 1.00241 1.00055 1.00433 0.99730 0.99968 0.99248 0.99848 1.00866 1.00155 0.80241
30-Jun-83 1.00263 1.02679 1.01734 1.01299 N/A N/A N/A N/A N/A N/A N/A
30-Sep-83 1.00221 0.99430 1.00020 1.01349 N/A N/A N/A N/A N/A N/A N/A
31-Dec-83 1.01524 0.98052 0.98960 1.01646 N/A N/A N/A N/A N/A N/A N/A
1984 31-Mar-84 1.02483 0.93939 0.95325 1.01058 N/A N/A N/A N/A N/A N/A N/A
30-Jun-84 1.01481 0.93879 0.94094 1.01408 N/A N/A N/A N/A N/A N/A N/A
30-Sep-84 1.07700 1.01820 1.01641 1.06609 N/A N/A N/A N/A N/A N/A N/A
31-Dec-84 1.13344 1.04166 1.05217 1.10715 N/A N/A N/A N/A N/A N/A N/A
1985 31-Mar-85 1.14693 1.13396 1.11480 1.14910 N/A N/A N/A N/A N/A N/A N/A
30-Jun-85 1.22545 1.20728 1.18925 1.21910 N/A N/A N/A N/A N/A N/A N/A
30-Sep-85 1.24580 1.14585 1.15613 1.20697 N/A N/A N/A N/A N/A N/A N/A
31-Dec-85 1.32595 1.36489 1.30667 1.32199 N/A N/A N/A N/A N/A N/A N/A
1986 31-Mar-86 1.39617 1.56581 1.49289 1.45306 N/A N/A N/A N/A N/A N/A N/A
30-Jun-86 1.41615 1.61916 1.51806 1.48001 N/A N/A N/A N/A N/A N/A N/A
30-Sep-86 1.44380 1.49015 1.42426 1.44133 N/A N/A N/A N/A N/A N/A N/A
31-Dec-86 1.49670 1.54928 1.48727 1.48853 N/A N/A N/A N/A N/A N/A N/A
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1987 31-Mar-87 1.50981 1.89171 1.66405 1.60555 N/A 1.01369 N/A N/A N/A N/A N/A
30-Jun-87 1.47264 1.93723 1.66394 1.61439 N/A 1.00140 N/A N/A N/A N/A N/A
30-Sep-87 1.41678 2.03502 1.69972 1.64360 N/A 0.97037 N/A N/A N/A N/A N/A
31-Dec-87 1.48043 1.55328 1.43996 1.49055 N/A 0.93936 N/A N/A N/A N/A 0.85903
1988 31-Mar-88 1.53083 1.70189 1.52976 1.55714 1.00261 1.00061 N/A N/A N/A N/A 0.89961
30-Jun-88 1.54510 1.80991 1.58515 1.60014 1.06050 1.01172 1.03529 N/A N/A N/A 0.95207
30-Sep-88 1.57378 1.74919 1.57737 1.60085 1.07351 1.02977 0.98911 1.00586 N/A N/A 0.95209
31-Dec-88 1.57964 1.79310 1.60226 1.61975 1.09680 1.04843 1.03649 1.07983 N/A N/A 0.97813
1989 31-Mar-89 1.58916 1.89391 1.65606 1.66209 1.15356 1.06436 1.14379 1.12695 N/A N/A 1.04210
30-Jun-89 1.70938 2.05540 1.78591 1.74620 1.24706 1.08803 1.19978 1.12363 N/A N/A 1.12827
30-Sep-89 1.71664 2.24480 1.87424 1.81710 1.32515 1.06159 1.30537 1.23424 N/A N/A 1.24262
31-Dec-89 1.76801 2.29411 1.92421 1.86874 1.32679 1.01279 1.38643 1.26541 N/A N/A 1.26306
1990 31-Mar-90 1.74036 2.23452 1.86609 1.85217 1.27222 0.96666 1.36374 1.15976 N/A N/A 1.21953
30-Jun-90 1.79428 2.28777 1.94849 1.91803 1.30917 1.01715 1.34251 1.21030 N/A N/A 1.28772
30-Sep-90 1.80617 1.92439 1.79859 1.85419 1.16547 0.91553 1.31886 1.05289 N/A N/A 1.10713
31-Dec-90 1.88843 2.14418 1.93362 1.93978 1.25965 0.88031 1.28831 1.08669 N/A N/A 1.20018
</TABLE>
<PAGE>
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1991 31-Mar-91 1.93178 2.54567 2.09639 2.05976 1.39732 1.01671 1.34342 1.13425 N/A N/A 1.36794
30-Jun-91 1.95982 2.56785 2.08739 2.08381 1.42269 1.09665 1.37433 1.12538 N/A N/A 1.35821
30-Sep-91 2.06514 2.56182 2.21584 2.16161 1.49197 1.15554 1.42385 1.18030 N/A N/A 1.42369
31-Dec-91 2.16852 2.66461 2.39173 2.27779 1.58384 1.20818 1.40133 1.19366 N/A N/A 1.53544
1992 31-Mar-92 2.13280 2.80715 2.30848 2.25419 1.56248 1.28975 1.41778 1.13553 N/A N/A 1.49022
30-Jun-92 2.21191 2.82116 2.32396 2.28251 1.59376 1.32878 1.49407 1.18434 N/A N/A 1.51129
30-Sep-92 2.29772 2.84539 2.42547 2.33042 1.65912 1.37870 1.52718 1.12607 N/A N/A 1.55168
31-Dec-92 2.29194 2.99994 2.53785 2.40230 1.72009 1.40033 1.48272 1.13674 N/A N/A 1.62200
1993 31-Mar-93 2.38331 3.26576 2.67136 2.51212 1.90917 1.48145 1.64306 1.23501 N/A N/A 1.68565
30-Jun-93 2.44112 3.35731 2.74531 2.57282 1.97475 1.54887 1.79214 1.28352 N/A N/A 1.68585
30-Sep-93 2.50972 3.47413 2.88087 2.65282 2.03732 1.56716 1.79092 1.44096 N/A N/A 1.72162
31-Dec-93 2.48943 3.60562 2.89273 2.65826 2.07432 1.64713 1.83001 1.60476 N/A N/A 1.75431
1994 31-Mar-94 2.41065 3.50093 2.74236 2.57788 2.03262 1.63845 1.77246 1.53641 N/A N/A 1.68051
30-Jun-94 2.37820 3.51204 2.71640 2.57864 2.03906 1.61797 1.77290 1.53198 N/A N/A 1.68075
30-Sep-94 2.38221 3.69953 2.80194 2.62899 2.15338 1.61477 1.95626 1.59646 N/A N/A 1.75506
30-Dec-94 2.37561 3.65455 2.76248 2.59615 2.07507 1.58019 1.72719 1.50533 N/A N/A 1.74751
1995 31-Mar-95 2.47253 3.96481 2.88190 2.70647 2.19764 1.65780 1.89112 1.49401 N/A N/A 1.90917
30-Jun-95 2.64432 4.23140 3.07708 2.83189 2.35171 1.71894 1.98953 1.63630 1.12463 1.06531 2.08204
30-Sep-95 2.69911 4.59096 3.26051 2.92589 2.47267 1.76307 2.07082 1.75970 1.22724 1.18855 2.23815
31-Dec-95 2.82857 4.73200 3.38181 3.00254 2.49069 1.83209 2.16200 1.72032 1.24327 1.18812 2.36221
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
UNIT VALUES FOR THE LAST DAY OF EVERY YEAR SINCE INCEPTION FOR THE DISCOVERY PREFERRED PRODUCT
Discovery Preferred DIBOND EQUITY FLXMGD CONSBL EQINC HIYLD NATR GLOBAL PRUJEN SMCAP STIX
INCEPTION DATE 08-Jun-83 06-Jun-83 27-May-83 02-Jun-83 19-Feb-88 23-Feb-87 01-May-88 19-Sep-88 01-May-95 01-May-95 19-Oct-87
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
WHOLE YEARS SINCE
INCEPTION 12.00 12.00 12.00 12.00 7.00 8.00 7.00 7.00 0.00 0.00 8.00
INCEPTION UNIT VALUE 0.99691 1.00241 1.00055 1.00433 0.99730 0.99968 0.99248 0.99848 1.00866 1.00155 0.80241
31-Dec-83 1.01524 0.98052 0.98960 1.01646 N/A N/A N/A N/A N/A N/A N/A
31-Dec-84 1.13344 1.04166 1.05217 1.10715 N/A N/A N/A N/A N/A N/A N/A
31-Dec-85 1.32595 1.36489 1.30667 1.32199 N/A N/A N/A N/A N/A N/A N/A
31-Dec-86 1.49670 1.54928 1.48727 1.48853 N/A N/A N/A N/A N/A N/A N/A
31-Dec-87 1.48043 1.55328 1.43996 1.49055 N/A 0.93936 N/A N/A N/A N/A 0.85903
31-Dec-88 1.57964 1.79310 1.60226 1.61975 1.09680 1.04843 1.03649 1.07983 N/A N/A 0.97813
31-Dec-89 1.76801 2.29411 1.92421 1.86874 1.32679 1.01279 1.38643 1.26541 N/A N/A 1.26306
31-Dec-90 1.88843 2.14418 1.93362 1.93978 1.25965 0.88031 1.28831 1.08669 N/A N/A 1.20018
31-Dec-91 2.16852 2.66461 2.39173 2.27779 1.58384 1.20818 1.40133 1.19366 N/A N/A 1.53544
31-Dec-92 2.29194 2.99994 2.53785 2.40230 1.72009 1.40033 1.48272 1.13674 N/A N/A 1.62200
31-Dec-93 2.48943 3.60562 2.89273 2.65826 2.07432 1.64713 1.83001 1.60476 N/A N/A 1.75431
30-Dec-94 2.37561 3.65455 2.76248 2.59615 2.07507 1.58019 1.72719 1.50533 N/A N/A 1.74751
31-Dec-95 2.82857 4.73200 3.38181 3.00254 2.49069 1.83209 2.16200 1.72032 1.24327 1.18812 2.36221
</TABLE>
