For the fiscal year ended September 30, 2000.
File number: 811-07343
The Prudential Investment Portfolios, Inc.
PRUDENTIAL MUTUAL FUNDS
Supplement dated July 12, 2000
Statement of Additional Information
The following supplements the information contained in the Statement
of Additional Information under "Purchase, Redemption and Pricing
of Fund Shares - Reduction and Waiver of Initial Sales Charge -
Class A Shares."
Class A shares may be purchased at NAV without payment of a
sales charge by (a) Prudential Securities Incorporated
(Prudential Securities) for deposit in a unit investment trust
(Trust) which it organized and sponsored and (b) the Trust
itself. Additionally, unit holders of the Trust may elect to
purchase Class A shares of the Fund at NAV with proceeds from
cash distributions from the Trust under circumstances described in the
prospectus of the Trust. At the termination date of the Trust, a unit
holder may invest the proceeds from the termination of his units in shares of
the Fund at NAV, provided: (i) that the investment in the Fund is effected
within 30 days of such termination; and (ii) that the unit holder or his
dealer provides the Distributor with a letter which: (a) identifies the name,
address and telephone number of the dealer who sold to the unit holder
the units to be redeemed; and (b) states that the investment in the Fund
is being funded exclusively by the proceeds from the redemption of units
of the Trust. Investment in Fund shares and reinvestments of Trust
distributions shall be subject to 12b-1 fees.
Listed below are the names of the Prudential mutual funds,
and the dates of the
Statements of Additional Information to which this Supplement relates:
Name of Fund Date
Prudential Equity Fund, Inc. March 1, 2000
Prudential U.S. Emerging Growth Fund, Inc. January 20,
2000
(formerly Prudential Emerging Growth Fund, Inc.)
The Prudential Investment Portfolios, Inc.- December 2, 1999
Prudential Jennison Growth Fund
T: \george\supplements\EQF.US.JEN 6-30-00
For the fiscal year ended September 30, 2000.
File number: 811-07343
The Prudential Investment Portfolios, Inc.
SUB-ITEM 77D
Policies With Respect to Security Investment
Prudential Mutual Funds
Supplement dated August 30, 2000
The following information supplements the Prospectus of
each of the Funds listed below.
ANNUAL OR SPECIAL MEETING OF SHAREHOLDERS
(All Funds except Prudential Balanced Fund, Prudential Global
Genesis Fund, Inc. and Prudential International Bond Fund, Inc.)
On August 22, 2000, subject to shareholder approval, the
Board of Directors/Trustees approved the proposals summarized
below. The proposals will be submitted for approval by shareholders
of the Funds at an Annual or Special Meeting of Shareholders
scheduled to be held on December 14, 2000.
Election of Directors/Trustees
All Funds, except Prudential Diversified Funds, Prudential Europe
Growth Fund, Inc., Prudential Natural Resources Fund, Inc., Prudential
Pacific Growth Fund, Inc. and Prudential World Fund, Inc. The Board of
Directors/Trustees approved a proposal to elect Saul F. Fenster,
Delayne Dedrick Gold, Robert F. Gunia, Douglas H. McCorkindale,
W. Scott McDonald, Thomas T. Mooney, Stephen P. Munn, David R.
Odenath, Jr., Richard A. Redeker, Robin B. Smith, John R. Strangfeld,
Louis A. Weil, III and Clay T. Whitehead as Directors/Trustees of each
of the Funds.
Prudential Europe Growth Fund, Inc., Prudential Natural Resources
Fund, Inc., Prudential Pacific Growth Fund, Inc. and Prudential World Fund,
Inc. The Board of Directors approved a proposal to elect Delayne Dedrick Gold,
Robert F. Gunia, Robert E. LaBlanc, David R. Odenath, Jr., Robin B. Smith,
Stephen Stoneburn, John R. Strangfeld, Nancy H. Teeters and Clay T. Whitehead
as Directors of each of the Funds.
How the Fund is Managed - Manager
All Funds. The Board of Directors/Trustees approved a proposal under
which the Board may authorize Prudential Investments Fund Management LLC
(PIFM or the Manager), subject to certain conditions, to enter into or amend
subadvisory agreements without obtaining further shareholder approval. One of
the conditions is that shareholders must first approve the grant of this
ongoing authority to the Board of Directors/Trustees. The implementation of
this proposal also is conditioned upon the receipt of exemptive relief from
the Securities and Exchange Commission.
Subject to the satisfaction of these two conditions, which cannot be
assured, the Manager would be permitted, with Board approval, to employ new
subadvisers for a Fund (including subadvisers affiliated with PIFM), change
the terms of a Fund's subadvisory agreements or enter into new subadvisory
agreements with existing subadvisers. Shareholders of a Fund would continue
to have the right to terminate a subadvisory agreement for a Fund at any
time by a vote of the majority of the outstanding voting securities of the
Fund. Shareholders would be notified of any subadviser changes or other
material amendments to subadvisory agreements that occur under these
arrangements.
The Board of Directors/Trustees also approved a new investment advisory
contract with PIFM. If shareholders approves this new contract, PIFM
would be permitted to allocate and reallocate a Fund's assets among the
Fund's subadvisers, including The Prudential Investment Corporation (PIC),
Jennison Associates LLC (Jennison) and unaffiliated subadvisers, without
obtaining further shareholder approval.
How the Fund is Managed - Investment Adviser(s)
All Funds except Prudential Real Estate Securities Fund. The Board
of Directors/Trustees approved an interim subadvisory agreement with
Jennison, a direct, wholly-owned subsidiary of PIC, to manage up to 100%
of the total assets of each Fund as designated by the Manager. Jennison
has served as an investment adviser to investment companies since 1990.
Its address is 466 Lexington Avenue, New York, NY 10017. As of
June 30, 2000, Jennison managed approximately $63.5 billion in assets.
PIFM, the Fund's Manager, has responsibility for all investment advisory
services, supervises Jennison and pays Jennison for its services.
The Board of Directors/Trustees also approved a new subadvisory agreement
with Jennison to manage up to 100% of the total assets of each Fund as
designated by the Manager and subject to Board approval. This agreement
would take effect only after shareholder approval.
Borrowing
All Funds. If approved by shareholders, each applicable
Fund's investment restriction regarding borrowing would be modified to
allow borrowing of up to 33-1/3% of a Fund's total assets and to delete
the requirement that such borrowing can be made only from banks.
Investment in Securities of Other Investment Companies
All Funds. If approved by shareholders, each applicable
Fund's investment restriction regarding the purchase of shares of
investment companies would be modified to permit each Fund to invest in
the shares of other registered investment companies as permitted under
applicable law or by an order of the Commission. To the extent that a Fund
does invest in securities of other investment companies, shareholders may
be subject to duplicate management and advisory fees.
Securities Lending
All Funds. If approved by shareholders, each applicable Fund's
investment restriction regarding securities lending would be modified to permit
each Fund to make loans of portfolio securities in amounts up to 33-1/3% of the
Fund's total assets and as permitted by an order of the Commission.
How the Fund is Managed - Portfolio Manager(s)
Prudential Equity Fund, Inc.
Jeffrey P. Siegel, Bradley L. Goldberg, CFA, and David A. Kiefer,
CFA, are the portfolio managers of the Fund effective August 24, 2000.
Mr. Siegel is an Executive Vice President of Jennison since June 1999.
Previously he was at TIAA-CREF from 1988-1999, where he held positions as a
portfolio manager and analyst. Prior to joining TIAA-CREF, Mr. Siegel was an
analyst for Equitable Capital Management and held positions at Chase Manhattan
Bank and First Fidelity Bank. Mr. Siegel earned a B.A. from Rutgers University.
Mr. Goldberg, an Executive Vice President of Jennison, joined Jennison in 1974
where he also serves as Chairman of the Asset Allocation Committee. Prior to
joining Jennison, he served as Vice President and Group Head in the Investment
Research Division of Bankers Trust Company. He earned a B.S. from the
University of Illinois and an M.B.A. from New York University. Mr. Goldberg
holds a Chartered Financial Analyst (C.F.A.) designation. Mr. Kiefer is a
Senior Vice President of Jennison since August 2000. Previously, he was a
Managing Directorof PIC and has been +with Prudential since 1986. Mr. Kiefer
earned a B.S. from Princeton University and an M.B.A. from Harvard Business
School. He holds a Chartered Financial Analyst (C.F.A.) designation.
Prudential 20/20 Focus Fund
Bradley L. Goldberg, CFA is the portfolio manager of the value sleeve of
the Fund effective September 2000. Mr. Goldberg's professional background
is discussed above.
Prudential Equity Income Fund
Thomas Kolefas, CFA and Bradley L. Goldberg, CFA, are the portfolio
managers of the Fund. Mr. Kolefas has managed the Fund since May 2000.
Mr. Kolefas is a Senior Vice President of Jennison since September 2000.
Previously, he was a Managing Director and Senior Portfolio Manager of PIC.
He joined Prudential in May 2000 from Loomis Sayles Co., L.P., where he
headed the Large/Mid Cap Value Team. Prior to 1996, Mr. Kolefas was employed
by Mackay Shields Financial as a portfolio manager for five years. Mr. Kolefas
earned a B.S. and an M.B.A. from New York University and holds a Chartered
Financial Analyst (C.F.A.) designation. Mr. Goldberg is expected to begin
managing the portfolio in September 2000. His professional background is
discussed above.
Prudential Sector Funds, Inc. - Prudential Utility Fund
David A. Kiefer, CFA, Eric S. Philo, CFA, and Shaun Hong are the
portfolio managers of the Fund effective September 2000. Mr. Kiefer has
managed the Fund since 1994; his professional background is discussed above.
Eric S. Philo joined Jennison in May 1996 after 13 years with Goldman, Sachs
& Company. At Goldman, Mr. Philo initially followed a variety of companies
and industries, including capital goods, retailing, specialty and industrial
chemicals, defense electronics, and printing. During his last nine years there,
he followed publishing and media companies. While at Goldman, he was elected to
Institutional Investor's All-Star Team every year since 1987 and was elected to
The Wall Street Journal All-Star Stock Picking Team annually since its inception
in 1993, ranking number one in his sector in 1994 and 1995. Mr. Philo is the
primary author of a piece on publishing and the Internet entitled
CyberPublishing:A New Frontier in Content Liquidity (July 1995). He earned a
B.A. from George Washington University and an M.B.A from Columbia University
Graduate School of Business. He holds a CFA designation. Shaun Hong is a
Vice President of Jennison since September 2000. Previously he was a Vice
President and equity research analyst of PIC. Prior to Prudential, Mr. Hong
was employed as an analyst at Equinox Capital Management following the utility,
consumer products, commodities and technology sectors from 1994-1999. Mr. Hong
earned a B.S. from Carnegie Mellon University. He holds a CFA designation.
OTHER MATTERS
(Prudential Balanced fund, Prudential Global Genesis Fund, Inc. and
Prudential International Bond Fund, Inc.)
Shareholders of Prudential Balanced Fund, Prudential Global Genesis
Fund, Inc. and Prudential International Bond Fund, Inc. are each expected to
vote on a proposal to reorganize or merge their Fund into another Prudential
mutual fund prior to the shareholder meetings described above. If
shareholders of these Funds do not approve the proposed reorganization or
merger, shareholders of each Fund will likely be solicited to vote on the
matters described above under "ANNUAL OR SPECIAL MEETING OF SHAREHOLDERS".
Listed below are the names of the Prudential Mutual Funds and the
dates of the Prospectus to which this Supplement relates.
Name of the Fund
Prospectus Date
Prudential Balanced Fund October 4,
1999
Prudential Diversified Funds
October 13, 1999
Prudential Equity Fund, Inc.
March 1, 2000
Prudential Equity Income Fund January 20,
2000
Prudential Europe Growth Fund, Inc.
June 30, 2000
Prudential Global Total Return Fund, Inc. March 8,
2000
Prudential Index Series Fund
November 18, 1999
Prudential Stock Index Fund
Prudential International Bond Fund, Inc. March 8,
2000
Prudential Natural Resources Fund, Inc. July 31,
2000
Prudential Pacific Growth Fund, Inc.
January 19, 2000
Prudential Real Estate Securities Fund June 2,
2000
Prudential Sector Funds, Inc.
March 30, 2000
Prudential Financial Services Fund
Prudential Health Sciences Fund
Prudential Technology Fund
Prudential Small Company Fund, Inc.
November 29, 1999
Prudential Tax-Managed Funds December
30, 1999
Prudential Tax-Managed Equity Fund
Prudential Tax-Managed Small-Cap Fund, Inc. May 31,
2000
Prudential U.S. Emerging Growth Fund, Inc.
January 20, 2000
Prudential Utility Fund (a series of February 1,
2000
Prudential Sector Funds, Inc.)
Prudential 20/20 Focus Fund
March 31, 2000
Prudential World Fund, Inc.
Prudential Global Growth Fund February 2,
2000
Prudential International Value Fund
February 2, 2000
Prudential Jennison International Growth Fund January 10,
2000
The Prudential Investment Portfolios, Inc.
Prudential Active Balanced Fund December
2, 1999
Prudential Jennison Equity Opportunity Fund December
2, 1999
Prudential Jennison Growth Fund December
2, 1999
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