-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, D5O2i3PiLt9/hkm37s6lloiXOpI0IXaTly3oBnm5ZgB7Xtloz9UC6Hyp0NIP37Pm upvPL2ncBgOUKB5EAVQScQ== 0000898733-98-000680.txt : 19981023 0000898733-98-000680.hdr.sgml : 19981023 ACCESSION NUMBER: 0000898733-98-000680 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19981022 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRUDENTIAL EQUITY FUND CENTRAL INDEX KEY: 0000356683 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 133104589 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 002-75128 FILM NUMBER: 98729234 BUSINESS ADDRESS: STREET 1: 100 MULBERRY STREET CITY: NEWARK STATE: NJ ZIP: 07102 BUSINESS PHONE: 9733677473 MAIL ADDRESS: STREET 1: 100 MULBERRY STREET CITY: NEWARK STATE: NJ ZIP: 07102 FORMER COMPANY: FORMER CONFORMED NAME: PRUDENTIAL BACHE EQUITY FUND INC DATE OF NAME CHANGE: 19920603 FORMER COMPANY: FORMER CONFORMED NAME: CHANCELLOR EQUITY FUND INC DATE OF NAME CHANGE: 19830509 497 1 PRUDENTIAL EQUITY FUND, INC Prudential Mutual Funds Supplement dated October 21, 1998 New Pricing Structure for Class C shares Effective on November 2, 1998, Class C shares of the Prudential Mutual Funds will be sold with a 1% initial sales charge and will be subject to a contingent deferred sales charge of 1% of the lesser of the amount invested or the redemption proceeds if redeemed within 18 months of purchase. In connection with the sale of Class C shares, the Distributor will pay dealers, financial advisers and other persons who sell Class C shares a sales commission of up to 2% of the purchase price at the time of sale. Class C shares issued before November 2, 1998 will not be affected by the new pricing structure described above and will continue to be subject to a contingent deferred sales charge of 1% on redemptions within one year of purchase. Waiver of Initial Sales Charge--Class A Shares The paragraph under 'Alternative Purchase Plan--Class A Shares--Reduction and Waiver of Initial Sales Charges--Benefit Plans' is amended to read in its entirety as follows: Benefit Plans. Class A shares may be purchased at NAV, without payment of an initial sales charge, by pension, profit-sharing or other employee benefit plans qualified under Section 401 of the Internal Revenue Code, deferred compensation and annuity plans under Sections 457 and 403 (b)(7) of the Internal Revenue Code and non-qualified deferred compensation plans that are sponsored by any employer that has a tax qualified benefit plan with Prudential (collectively, Benefit Plans), provided that the Benefit Plan has existing assets of at least $1 million invested in shares of Prudential Mutual Funds (excluding money market funds other than those acquired pursuant to the exchange privilege) or 250 eligible employees or participants. In the case of Benefit Plans whose accounts are held directly with the Transfer Agent or Prudential Securities and for which the Transfer Agent or Prudential Securities does individual account recordkeeping (Direct Account Benefit Plans) and Benefit Plans sponsored by Prudential, Prudential Securities or its subsidiaries (Prudential Securities or Subsidiary Prototype Benefit Plans), Class A shares may be purchased at NAV by participants who are repaying loans made from such plans to the participant. Waiver of Initial Sales Charge--Class C Shares Benefit Plans. Class C shares may be purchased at NAV, without payment of an initial sales charge, by Benefit Plans (as defined above). In the case of Benefit Plans whose accounts are held directly with the Transfer Agent or Prudential Securities and for which the Transfer Agent or Prudential Securities does individual account recordkeeping (Direct Account Benefit Plans) and Benefit Plans sponsored by Prudential, Prudential Securities or its subsidiaries (Prudential Securities or Subsidiary Prototype Benefit Plans), Class C shares may be purchased at NAV by participants who are repaying the loans made from such plans to the participant. Prudential Retirement Plans. The initial sales charge will be waived with respect to purchases of Class C shares by qualified and non-qualified retirement and deferred compensation plans participating in the PruArray Plan and other plans for which Prudential provides administrative or recordkeeping services. Investments of Redemption Proceeds from Other Investment Companies. Investors may purchase Class C shares at NAV, without the initial sales charge, with the proceeds from the redemption of shares of any unaffiliated registered investment company which were not held through an account with any Prudential affiliate. Such purchases must be made within 60 days of the redemption. Investors eligible for this waiver include: (i) investors purchasing shares through an account at Prudential Securities Incorporated; (ii) investors purchasing shares through an ADVANTAGE Account or an Investor Account with Pruco Securities Corporation; and (iii) investors purchasing shares through other Dealers. This waiver is not available to investors who purchase shares directly from the Transfer Agent. You must notify the Transfer Agent directly or through your Dealer if you are entitled to this waiver and provide the Transfer Agent with such supporting documents as it may deem appropriate. Waiver of Class C Contingent Deferred Sales Charges Prudential Retirement Plans. The CDSC will be waived on redemptions from qualified and non-qualified retirement and deferred compensation plans that participate in the PruArray Program and other plans for which Prudential provides administrative or recordkeeping services. The CDSC will also be waived on redemptions from Benefit Plans sponsored by Prudential and its affiliates to the extent that the redemption proceeds are invested in The Guaranteed Investment Account, a group annuity insurance product issued by Prudential, the Guaranteed Insulated Separate Account, a separate account offered by Prudential, and units of The Stable Value Fund, an unaffiliated bank collective fund. Other Benefit Plans. The CDSC will be waived on redemptions from Benefit Plans holding shares through a Dealer not affiliated with Prudential and for whom the Dealer provides administrative or recordkeeping services. Minimum Initial Investment for Class C Shares The minimum initial investment for Class C shares has been lowered to $2,500. The minimum initial investment for purchases made through the Automatic Investment Plan is $50. Expense Table--Example The following replaces the information on Class C shares under 'Fund Expenses--Example': Example You would pay the following expenses on a $1,000 investment in Class C shares, assuming (1) 5% annual return and (2) redemption at the end of each time period or (3) no redemption at the end of each time period:
Fund 1 Year 3 Years 5 Years 10 Years - ------------------------------------------------------------- ------ ------- ------- -------- Global Utility Fund, Inc. (Redemption) $ 40 $71 $ 115 $236 Global Utility Fund, Inc. (No Redemption) 30 71 115 236 Nicholas-Applegate Growth Equity Fund (Redemption) 42 78 126 260 Nicholas-Applegate Growth Equity Fund (No Redemption) 32 78 126 260 Prudential Active Balanced Fund (Redemption) 40 73 118 243 Prudential Active Balanced Fund (No Redemption) 30 73 118 243 Prudential Balanced Fund (Redemption) 39 70 113 232 Prudential Balanced Fund (No Redemption) 29 70 113 232 Prudential California Series (Redemption) 35 56 89 183 Prudential California Series (No Redemption) 25 56 89 183 Prudential California Income Series (Redemption) 34 55 87 180 Prudential California Income Series (No Redemption) 24 55 87 180 Prudential Developing Markets Equity Fund (Redemption) 48 94 154 315 Prudential Developing Markets Equity Fund (No Redemption) 38 94 154 315 Prudential Global Series (Redemption) 41 76 124 255
Fund 1 Year 3 Years 5 Years 10 Years - ------------------------------------------------------------- ------ ------- ------- -------- Prudential Global Series (No Redemption) $ 31 $76 $ 124 $255 Prudential Latin America Equity Fund (Redemption) 48 94 154 315 Prudential Latin America Equity Fund (No Redemption) 38 94 154 315 Prudential Distressed Securities Fund, Inc. (Redemption) 40 72 117 240 Prudential Distressed Securities Fund, Inc. (No Redemption) 30 72 117 240 Prudential Diversified Bond Fund, Inc. (Redemption) 34 54 87 178 Prudential Diversified Bond Fund, Inc. (No Redemption) 24 54 87 178 Prudential Emerging Growth Fund, Inc. (Redemption) 42 78 127 262 Prudential Emerging Growth Fund, Inc. (No Redemption) 32 78 127 262 Prudential Equity Fund, Inc. (Redemption) 36 61 98 201 Prudential Equity Fund, Inc. (No Redemption) 26 61 98 201 Prudential Equity Income Fund (Redemption) 37 63 101 208 Prudential Equity Income Fund (No Redemption) 27 63 101 208 Prudential Europe Growth Fund, Inc. (Redemption) 41 76 124 255 Prudential Europe Growth Fund, Inc. (No Redemption) 31 76 124 255 Prudential Florida Series (Redemption) 34 54 87 178 Prudential Florida Series (No Redemption) 24 54 87 178 Prudential Global Genesis Fund, Inc. (Redemption) 46 91 148 303 Prudential Global Genesis Fund, Inc. (No Redemption) 36 91 148 303 Prudential Global Limited Maturity Portfolio (Redemption) 40 71 114 235 Prudential Global Limited Maturity Portfolio (No Redemption) 30 71 114 235 Prudential Government Income Fund, Inc. (Redemption) 35 56 89 183 Prudential Government Income Fund, Inc. (No Redemption) 25 56 89 183 Prudential High Yield Fund, Inc. (Redemption) 33 50 80 164 Prudential High Yield Fund, Inc. (No Redemption) 23 50 80 164 Prudential High Income Series (Redemption) 33 51 82 167 Prudential High Income Series (No Redemption) 23 51 82 167 Prudential High Yield Total Return Fund, Inc. (Redemption) 35 57 91 187 Prudential High Yield Total Return Fund, Inc. (No Redemption) 25 57 91 187 Prudential Insured Series (Redemption) 34 53 84 172 Prudential Insured Series (No Redemption) 24 53 84 172 Prudential Intermediate Global Income Fund, Inc. (Redemption) 40 72 117 241 Prudential Intermediate Global Income Fund, Inc. (No Redemption) 30 72 117 241 Prudential Intermediate Series (Redemption) 40 72 116 238 Prudential Intermediate Series (No Redemption) 30 72 116 238 Prudential International Bond Fund, Inc. (Redemption) 42 79 129 265 Prudential International Bond Fund, Inc. (No Redemption) 32 79 129 265 Prudential International Stock Series (Redemption) 45 87 142 291 Prudential International Stock Series (No Redemption) 35 87 142 291 Prudential Jennison Growth Fund (Redemption) 39 67 109 224 Prudential Jennison Growth Fund (No Redemption) 29 67 109 224 Prudential Jennison Growth & Income Fund (Redemption) 43 82 133 274 Prudential Jennison Growth & Income Fund (No Redemption) 43 82 133 274
Fund 1 Year 3 Years 5 Years 10 Years - ------------------------------------------------------------- ------ ------- ------- -------- Prudential Maryland Series (Redemption) $ 38 $67 $ 108 $222 Prudential Maryland Series (No Redemption) 28 67 108 222 Prudential Massachusetts Series (Redemption) 37 63 101 209 Prudential Massachusetts Series (No Redemption) 27 63 101 209 Prudential Michigan Series (Redemption) 36 60 97 199 Prudential Michigan Series (No Redemption) 26 60 97 199 Prudential Mid-Cap Value Fund (Redemption) 42 78 127 261 Prudential Mid-Cap Value Fund (No Redemption) 32 78 127 261 Prudential Mortgage Income Fund, Inc. (Redemption) 37 63 101 209 Prudential Mortgage Income Fund, Inc. (No Redemption) 27 63 101 209 Prudential National Municipals Fund, Inc. (Redemption) 34 53 85 174 Prudential National Municipals Fund, Inc. (No Redemption) 24 53 85 174 Prudential Natural Resources Fund, Inc. (Redemption) 43 81 132 271 Prudential Natural Resources Fund, Inc. (No Redemption) 33 81 132 271 Prudential New Jersey Series (Redemption) 34 52 83 171 Prudential New Jersey Series (No Redemption) 24 52 83 171 Prudential New York Series (Redemption) 34 53 85 174 Prudential New York Series (No Redemption) 24 53 85 174 Prudential North Carolina Series (Redemption) 36 61 98 201 Prudential North Carolina Series (No Redemption) 26 61 98 201 Prudential Ohio Series (Redemption) 35 57 91 187 Prudential Ohio Series (No Redemption) 25 57 91 187 Prudential Pacific Growth Fund, Inc. (Redemption) 42 79 128 264 Prudential Pacific Growth Fund, Inc. (No Redemption) 32 79 128 264 Prudential Pennsylvania Series (Redemption) 34 54 87 178 Prudential Pennsylvania Series (No Redemption) 24 54 87 178 Prudential Real Estate Securities Fund (Redemption) 42 77 124 256 Prudential Real Estate Securities Fund (No Redemption) 32 77 124 256 Prudential Small-Cap Quantum Fund, Inc. (Redemption) 40 71 115 237 Prudential Small-Cap Quantum Fund, Inc. (No Redemption) 30 71 115 237 Prudential Small Company Value Fund, Inc. (Redemption) 40 71 115 236 Prudential Small Company Value Fund, Inc. (No Redemption) 30 71 115 236 Prudential Structured Maturity Fund, Inc. (Redemption) 36 60 96 197 Prudential Structured Maturity Fund, Inc. (No Redemption) 26 60 96 197 Prudential Utility Fund, Inc. (Redemption) 36 59 95 195 Prudential Utility Fund, Inc. (No Redemption) 26 59 95 195 Prudential 20/20 Focus Fund (Redemption) 40 71 115 236 Prudential 20/20 Focus Fund (No Redemption) 30 71 115 236 The Global Total Return Fund, Inc. (Redemption) 40 72 116 239 The Global Total Return Fund, Inc. (No Redemption) 30 72 116 239
Shareholder Guide The following replaces information under 'Shareholder Guide--Alternative Purchase Plan': The following is provided to assist you in determining which method of purchase best suits your individual circumstances and is based on current fees and expenses being charged to the Funds. Equity Funds If you intend to hold your investment in a Fund for less than 4 years and do not qualify for a reduced sales charge on Class A shares, since Class A shares are subject to an initial sales charge of 5% and Class B shares are subject to a CDSC of 5% which declines to zero over a 6-year period, you should consider purchasing Class C shares over either Class A or Class B shares. If you intend to hold your investment for longer than 4 years, but less than 5 years, and do not qualify for a reduced sales charge on Class A shares, you should consider purchasing Class B or Class C shares over Class A shares. This is because the sales charge plus the cumulative annual distribution-related fee on Class A shares would exceed those of the Class B and Class C shares if you redeem your investment during this time period. In addition, more of your money would be invested initially in the case of Class C shares, because of the relatively low initial sales charge, and all of your money would be invested initially in the case of Class B shares, which are sold at NAV. If you intend to hold your investment for longer than 5 years, you should consider purchasing Class A shares over either Class B or Class C shares. This is because the maximum sales charge plus the cumulative annual distribution-related fee on Class A shares would be less than those of the Class B and Class C shares. If you qualify for a reduced sales charge on Class A shares, it may be more advantageous for you to purchase Class A shares over either Class B or Class C shares regardless of how long you intend to hold your investment. However, unlike Class B shares, you would not have all of your money invested initially because the sales charge on Class A shares is deducted at the time of purchase. If you do not qualify for a reduced sales charge on Class A shares and you purchase Class B or Class C shares, you would have to hold your investment for more than 6 years in the case of Class B shares and for more than 5 years in the case of Class C shares for the higher cumulative annual distribution-related fee on those shares plus, in the case of Class C shares, the 1% initial sales charge to exceed the initial sales charge plus the cumulative annual distribution-related fees on Class A shares. This does not take into account the time value of money, which further reduces the impact of the higher Class B or Class C distribution-related fee on the investment, fluctuations in NAV, the effect of the return on the investment over this period of time or redemptions when the CDSC is applicable. Tax-Exempt Bond Funds If you intend to hold your investment in a Fund for less than 3 years and do not qualify for a reduced sales charge on Class A shares, since Class A shares are subject to a maximum initial sales charge of 3% and Class B shares are subject to a CDSC of 5% which declines to zero over a 6 year period, you should consider purchasing Class C shares over either Class A or Class B shares. If you intend to hold your investment for more than 3 years, but less than 4 years, or for more than 5 years, but less than 6 years, you should consider purchasing Class A shares, because the maximum 3% initial sales charge plus the cumulative annual distribution-related fee on Class A shares would be lower than: (i) the contingent-deferred sales charge plus the cumulative annual distribution-related fee on Class B shares; and (ii) the 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares. If you intend to hold your investment for more than 4 years, but less than 5 years, you may consider purchasing Class A or Class B shares because: (i) the maximum 3% initial sales charge plus the cumulative annual distribution-related fee on Class A shares and (ii) the contingent-deferred sales charge plus the cumulative annual distribution-related fee on Class B shares would be lower than the 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares. If you intend to hold your investment for more than 6 years and do not qualify for a reduced sales charge on Class A shares, since Class B shares convert to Class A shares approximately 7 years after purchase and because all of your money would be invested initially in the case of Class B shares, you should consider purchasing Class B shares over either Class A or Class C shares. If you qualify for a reduced sales charge on Class A shares, it may be more advantageous for you to purchase Class A shares over either Class B or Class C shares regardless of how long you intend to hold your investment. However, unlike Class B shares, you would not have all of your money invested initially because the sales charge on Class A shares is deducted at the time of purchase. If you do not qualify for a reduced sales charge on Class A shares and you purchase Class C shares, you would have to hold your investment for more than 3 years for the 1% initial sales charge plus the higher cumulative annual distribution-related fee on the Class C shares to exceed the initial sales charge plus cumulative annual distribution-related fees on Class A shares. This does not take into account the time value of money, which further reduces the impact of the higher Class C distribution-related fee on the investment, fluctuations in NAV, the effect of the return on the investment over this period of time or redemptions when the CDSC is applicable. Taxable Bond Funds (except Government Income, Structured Maturity, Global Limited Maturity and Intermediate Global Income Funds) If you intend to hold your investment in the Fund for less than 4 years and do not qualify for a reduced sales charge on Class A shares, since Class A shares are subject to a maximum initial sales charge of 4% and Class B shares are subject to a CDSC of 5% which declines to zero over a 6-year period, you should consider purchasing Class C shares over either Class A or Class B shares. If you intend to hold your investment for more than 4 years, but less than 5 years, and do not qualify for a reduced sales charge on Class A shares, the sales charges and cumulative annual distribution-related fees would be approximately the same for Class A, Class B and Class C shares. However, you should consider purchasing Class B shares over Class A shares or Class C shares because all of your money would be invested initially in the case of Class B shares. If you intend to hold your investment for longer than 5 years, you should consider purchasing Class A shares over either Class B or Class C shares. This is because the maximum sales charge plus the cumulative annual distribution-related fee on Class A shares would be less than those of the Class B and Class C shares. If you qualify for a reduced sales charge on Class A shares, it may be more advantageous for you to purchase Class A shares over either Class B or Class C shares regardless of how long you intend to hold your investment. However, unlike Class B shares, you would not have all of your money invested initially because the sales charge on Class A shares is deducted at the time of purchase. If you do not qualify for a reduced sales charge on Class A shares and you purchase Class B or Class C shares, you would have to hold your investment for more than 6 years in the case of Class B shares and for more than 5 years in the case of Class C shares for the higher cumulative annual distribution-related fee on those shares plus, in the case of Class C shares, the 1% initial sales charge to exceed the initial sales charge plus cumulative annual distribution-related fees on Class A shares. This does not take into account the time value of money, which further reduces the impact of the higher Class B or Class C distribution-related fee on the investment, fluctuations in NAV, the effect of the return on the investment over this period of time or redemptions when the CDSC is applicable. Government Income Fund If you intend to hold your investment in the Fund for less than 4 years and do not qualify for a reduced sales charge on Class A shares, since Class A shares are subject to a maximum initial sales charge of 4% and Class B shares are subject to a CDSC of 5% which declines to zero over a 6 year period, you should consider purchasing Class C shares over either Class A or Class B shares. If you intend to hold your investment for more than 4 years, but less than 5 years, you may consider purchasing Class A shares or Class C shares because: (i) the maximum 4% initial sales charge plus the cumulative annual distribution-related fee on Class A shares; and (ii) the maximum 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares would be lower than the contingent-deferred sales charge plus the cumulative annual distribution-related fee on Class B shares. If you intend to hold your investment for longer than 5 years, you should consider purchasing Class A shares over either Class B or Class C shares. This is because the maximum sales charge plus the cumulative annual distribution-related fee on Class A shares would be less than those of the Class B and Class C shares. If you qualify for a reduced sales charge on Class A shares, it may be more advantageous for you to purchase Class A shares over either Class B or Class C shares regardless of how long you intend to hold your investment. However, unlike Class B shares, you would not have all of your money invested initially because the sales charge on Class A shares is deducted at the time of purchase. If you do not qualify for a reduced sales charge on Class A shares and you purchase Class B or Class C shares, you would have to hold your investment for more than 5 years for the higher cumulative annual distribution-related fee on those shares plus, in the case of Class C shares, the 1% initial sales charge to exceed the initial sales charge plus cumulative annual distribution-related fee on Class A shares. This does not take into account the time value of money, which further reduces the impact of the higher Class B or Class C distribution-related fee on the investment, fluctuations in NAV, the effect of the return on the investment over this period of time or redemptions when the CDSC is applicable. Structured Maturity Fund If you intend to hold your investment in the Fund for less than 2 years and do not qualify for a reduced sales charge on Class A shares, since Class A shares are subject to a maximum initial sales charge of 3.25% and Class B shares are subject to a CDSC of 3% which declines to zero over a 4 year period, you should consider purchasing Class C shares over either Class A or Class B shares. If you intend to hold your investment for more than 2 years, but less than 3 years, you may consider purchasing Class B or Class C shares because: (i) the contingent-deferred sales load plus the cumulative annual distribution-related fee on Class B shares; and (ii) the maximum 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares would be lower than the maximum 3.25% initial sales charge plus the cumulative annual distribution-related fee on Class A shares. In addition, more of your money would be invested initially in the case of Class C shares, because of the relatively low initial sales charge, and all of your money would be invested initially in the case of Class B shares, which are sold at NAV. If you intend to hold your investment for more than 3 years, but less than 4 years, you may consider purchasing Class A shares because the maximum 3.25% initial sales charge plus the cumulative annual distribution-related fee on Class A shares would be lower than: (i) the contingent-deferred sales charge plus the cumulative annual distribution-related fee on Class B shares; and (ii) the maximum 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares. If you intend to hold your investment for more than 4 years, but less than 5 years, you may consider purchasing Class A or Class B shares because the maximum 3.25% initial sales charge plus the cumulative annual distribution-related fee on Class A shares and the cumulative annual distribution-related fee on Class B shares would be less than the maximum 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares. If you intend to hold your investment for longer than 5 years, you should consider purchasing Class A shares over either Class B or Class C shares. This is because the maximum sales charge plus the cumulative annual distribution-related fee on Class A shares would be less than the cumulative annual distribution-related fee on Class B shares and less than the initial sales charge plus the cumulative annual distribution-related fee on Class C shares. If you qualify for a reduced sales charge on Class A shares, it may be more advantageous for you to purchase Class A shares over either Class B or Class C shares regardless of how long you intend to hold your investment. However, unlike Class B shares, you would not have all of your money invested initially because the sales charge on Class A shares is deducted at the time of purchase. If you do not qualify for a reduced sales charge on Class A shares and you purchase Class C shares, you would have to hold your investment for more than 3 years for the higher cumulative annual distribution-related fee on the Class C shares plus the 1% initial sales charge to exceed the initial sales charge plus cumulative annual distribution-related fees on Class A shares. This does not take into account the time value of money, which further reduces the impact of the higher Class C distribution-related fee on the investment, fluctuations in NAV, the effect of the return on the investment over this period of time or redemptions when the CDSC is applicable. Global Limited Maturity and Intermediate Global Income Funds If you intend to hold your investment in the Fund for less than 2 years and do not qualify for a reduced sales charge on Class A shares, since Class A shares are subject to a maximum initial sales charge of 3% and Class B shares are subject to a CDSC of 3% which declines to zero over a 4 year period, you should consider purchasing Class C shares over either Class A or Class B shares. If you intend to hold your investment for more than 2 years, but less than 3 years, you may consider purchasing Class B or Class C shares because: (i) the contingent-deferred sales load plus the cumulative annual distribution-related fee on Class B shares; and (ii) the maximum 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares would be lower than the maximum 3% initial sales charge plus the cumulative annual distribution-related fee on Class A shares. In addition, more of your money would be invested initially in the case of Class C shares, because of the relatively low initial sales charge, and all of your money would be invested initially in the case of Class B shares, which are sold at NAV. If you intend to hold your investment for more than 3 years, but less than 4 years, you may consider purchasing Class A shares because the maximum 3% initial sales charge plus the cumulative annual distribution-related fee on Class A shares would be lower than: (i) the contingent-deferred sales charge plus the cumulative annual distribution-related fee on Class B shares; and (ii) the maximum 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares. If you intend to hold your investment for more than 4 years, but less than 5 years, you may consider purchasing Class A or Class B shares because the maximum 3% initial sales charge plus the cumulative annual distribution-related fee on Class A shares and the cumulative annual distribution-related fee on Class B shares would be less than the maximum 1% initial sales charge plus the cumulative annual distribution-related fee on Class C shares. If you intend to hold your investment for longer than 5 years, you should consider purchasing Class A shares over either Class B or Class C shares. This is because the maximum sales charge plus the cumulative annual distribution-related fee on Class A shares would be less than the cumulative annual distribution-related fee on Class B shares and less than the initial sales charge plus the cumulative annual distribution-related fee on Class C shares. If you qualify for a reduced sales charge on Class A shares, it may be more advantageous for you to purchase Class A shares over either Class B or Class C shares regardless of how long you intend to hold your investment. However, unlike Class B shares, you would not have all of your money invested initially because the sales charge on Class A shares is deducted at the time of purchase. If you do not qualify for a reduced sales charge on Class A shares and you purchase Class C shares, you would have to hold your investment for more than 3 years for the higher cumulative annual distribution-related fee on the Class C shares plus the 1% initial sales charge to exceed the initial sales charge plus cumulative annual distribution-related fee on Class A shares. This does not take into account the time value of money, which further reduces the impact of the higher Class C distribution-related fee on the investment, fluctuations in NAV, the effect of the return on the investment over this period of time or redemptions when the CDSC is applicable. Listed below are the names of the Prudential Mutual Funds and the dates of the Prospectuses to which this supplement relates.
Name of Fund Prospectus Date - ---------------------------------------------- ---------------------------------------------- Global Utility Fund, Inc. December 2, 1997 Nicholas-Applegate Fund, Inc. March 4, 1998 Prudential Balanced Fund September 29, 1998 Prudential California Municipal Fund California Income Series October 30, 1997 California Income Series October 30, 1997 (Revised as of June 1, 1998) California Series October 30, 1997 Prudential Developing Markets Fund Prudential Developing Markets Equity Fund June 26, 1998 Prudential Latin America Equity Fund June 26, 1998 Prudential Distressed Securities Fund, Inc. January 29, 1998 Prudential Diversified Bond Fund, Inc. March 4, 1998 Prudential Diversified Bond Fund, Inc. March 4, 1998 (Revised as of June 1, 1998) Prudential Emerging Growth Fund, Inc. December 30, 1997 Prudential Emerging Growth Fund, Inc. December 30, 1997 (Revised as of October 14, 1998) Prudential Equity Fund, Inc. February 27, 1998 Prudential Equity Fund, Inc. February 27, 1998 (Revised as of June 1, 1998) Prudential Equity Income Fund, Inc. December 30, 1997 Prudential Equity Income Fund, Inc. December 30, 1997 (Revised as of June 1, 1998) Prudential Europe Growth Fund, Inc. July 1, 1998 Prudential Europe Growth Fund, Inc. July 1, 1998 (Revised as of October 14, 1998) Prudential Global Genesis Fund, Inc. July 31, 1998 Prudential Global Limited Maturity Fund, Inc. December 30, 1997 Prudential Government Income Fund, Inc. April 30, 1998 Prudential High Yield Fund, Inc. March 3, 1998 Prudential High Yield Fund, Inc. March 3, 1998 (Revised as of June 1, 1998) Prudential High Yield Total Return Fund, Inc. March 16, 1998 Prudential High Yield Total Return Fund, Inc. March 16, 1998 (Revised as of June 1, 1998) Prudential Intermediate Global Income Fund, Inc. March 4, 1998 Prudential International Bond Fund, Inc. March 4, 1998 Prudential Mid-Cap Value Fund May 7, 1998 Prudential Mortgage Income Fund, Inc. March 3, 1998 Prudential Municipal Bond Fund July 1, 1998 Prudential Municipal Series Fund Florida Series October 30, 1997 Maryland Series October 30, 1997 Massachusetts Series October 30, 1997 Michigan Series October 30, 1997 New Jersey Series October 30, 1997 New York Series October 30, 1997 North Carolina Series October 30, 1997 Ohio Series October 30, 1997 Pennsylvania Series October 30, 1997
Name of Fund Prospectus Date - ---------------------------------------------- ---------------------------------------------- Prudential National Municipals Fund, Inc. March 4, 1998 Prudential Natural Resources Fund, Inc. July 31, 1998 Prudential Pacific Growth Fund, Inc. December 31, 1997 Prudential Real Estate Securities Fund March 20, 1998 Prudential Real Estate Securities Fund March 20, 1998 (Revised as of June 1, 1998) Prudential Small-Cap Quantum Fund, Inc. June 26, 1998 Prudential Small Company Value Fund, Inc. December 2, 1997 Prudential Small Company Value Fund, Inc. December 2, 1997 (Revised as of October 14, 1998) Prudential Structured Maturity Fund, Inc. March 4, 1998 Prudential Utility Fund, Inc. March 3, 1998 Prudential Utility Fund, Inc. March 3, 1998 (Revised as of June 1, 1998) Prudential World Fund, Inc. Global Series January 7, 1998 Global Series January 7, 1998 (Revised as of June 1, 1998) International Stock Series January 7, 1998 International Stock Series January 7, 1998 (Revised as of June 1, 1998) Prudential 20/20 Focus Fund May 22, 1998 Prudential 20/20 Focus Fund May 22, 1998 (Revised as of October 14, 1998) The Global Total Return Fund, Inc. March 4, 1998 The Global Total Return Fund, Inc. March 4, 1998 (Revised as of June 1, 1998) The Prudential Investment Portfolios, Inc. Prudential Active Balanced Fund August 6, 1998 Prudential Jennison Growth Fund August 6, 1998 Prudential Jennison Growth & Income Fund August 6, 1998
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