UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number: 811-06391
Exact name of registrant as specified in charter: Prudential Pacific Growth Fund
Address of principal executive offices: Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Name and address of agent for service: Mr Jonathan D. Shain
Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Registrant's telephone number, including area code: 973-802-6469
Date of fiscal year end: 10/31/03
Date of reporting period: 04/30/03
Item 1 -- Reports to Stockholders
SEMIANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
PACIFIC GROWTH FUND, INC.
FUND TYPE
Global stock
OBJECTIVE
Long-term growth of capital
This report is not authorized for distribution
to prospective investors unless preceded or
accompanied by a current prospectus.
The views expressed in this report and information
about the Fund's portfolio holdings are for the
period covered by this report and are subject to
change thereafter.
Prudential Financial is a service mark of
The Prudential Insurance Company of America,
Newark, NJ, and its affiliates. PRUDENTIAL FINANCIAL (LOGO)
Prudential Pacific Growth Fund, Inc.
Performance at a Glance
FUND OBJECTIVE
The investment objective of the Prudential Pacific
Growth Fund (the Fund) is long-term growth of
capital. There can be no assurance that the Fund will
achieve its investment objective.
Cumulative Total Returns1 As of 4/30/03
Six Months One Year Five Years Ten Years Since Inception2
Class A -8.95% -20.74% -37.98% -43.65% -26.41%
Class B -9.37 -21.32 -40.71 -47.99 -32.50
Class C -9.32 -21.34 -40.39 N/A -59.96
Class Z -8.93 -20.58 -37.70 N/A -56.69
MSCI AC Pacific Free Price Index3 -4.98 -20.97 -25.94 -44.87 ***
MSCI AC Asia Pacific Free Gross Index4 -3.93 -19.42 -20.79 -37.19 ****
Lipper Pacific Region Funds Avg.5 -6.57 -22.12 -17.32 -17.37 *****
Average Annual Total Returns1 As of 3/31/03
One Year Five Years Ten Years Since Inception2
Class A -25.82% -10.74% -5.34% -3.37%
Class B -26.30 -10.80 -5.61 -3.68
Class C -23.98 -10.71 N/A -10.20
Class Z -21.76 -9.73 N/A -11.25
MSCI AC Pacific Free Price Index3 -20.30 -6.60 -4.54 ***
MSCI AC Asia Pacific Free Gross Index4 -17.71 -5.29 -3.28 ****
Lipper Pacific Region Funds Avg.5 -21.74 -5.36 -1.55 *****
Past performance is not indicative of future results.
Principal value and investment return will fluctuate
so that an investor's shares, when redeemed, may be
worth more or less than their original cost. 1Source:
Prudential Investments LLC, Lipper Inc., and
Micropal. The cumulative total returns do not take
into account applicable sales charges. The average
annual total returns do take into account applicable
sales charges. Without the distribution and service
(12b-1) fee waiver of 0.05% for Class A shares, the
returns would have been lower. The Fund charges a
maximum front-end sales charge of 5% for Class A
shares in most circumstances, and a 12b-1 fee of up
to 0.30% annually. In some circumstances, Class A
shares may not be subject to a front-end sales
charge, but may be subject to a 1% contingent
deferred sales charge (CDSC) for the first year.
Class B shares are subject to a declining CDSC of 5%,
4%, 3%, 2%, 1%, and 1% for the first six years
respectively after purchase, and a 12b-1 fee of 1.00%
annually. Approximately seven years after purchase,
Class B shares will automatically convert to Class A
shares on a quarterly basis. Class C shares are
subject to a front-end sales charge of 1%, a CDSC of
1% for shares redeemed within 18 months of purchase,
and a 12b-1 fee of 1.00% annually. Class Z shares are
not subject to a sales charge or 12b-1 fee. The
returns in the tables above do not reflect the
deduction of taxes that a shareholder would pay on
fund distributions or following the redemption of
fund shares. 2Inception dates: Class A and Class B,
7/24/92; Class C, 8/1/94; and Class Z, 3/1/96. 3The
Morgan Stanley Capital International (MSCI) All
Country (AC) Pacific Free Price Index is an
unmanaged,
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2003
free float-adjusted market capitalization index that
is designed to measure the equity market performance
in the following countries: Australia, China, Hong
Kong, Indonesia, Japan, Korea, Malaysia, New Zealand,
the Philippines, Singapore, Taiwan, and Thailand.
4The MSCI AC Asia Pacific Free Gross Index is an
unmanaged, weighted index comprising approximately
950 securities listed on the stock exchanges of
Australia, China, Hong Kong, India, Indonesia, Japan,
Malaysia, Pakistan, the Philippines, Singapore, South
Korea, Sri Lanka, Taiwan, and Thailand.5 The Lipper
Pacific Region Funds Average (Lipper Average)
represents returns based on an average return of all
funds in the Lipper Pacific Region Funds category for
the periods noted. Funds in the Lipper Average
concentrate investments in equity securities with
primary trading markets or operations concentrated in
the Western Pacific Basin region or in a single
country within this region. Investors cannot invest
directly in an index. The returns for the MSCI
Indexes and the Lipper Average would be lower if they
included the effects of sales charges, operating
expenses of a mutual fund, or taxes. Returns for the
Lipper Average reflect the deduction of operating
expenses of a mutual fund, but not sales charges or
taxes. ***MSCI AC Pacific Free Price Index Since
Inception cumulative total returns as of 4/30/03 are
-20.21% for Class A and Class B, -52.61% for Class C,
and -51.39% for Class Z. MSCI AC Pacific Free Price
Index Since Inception average annual total returns as
of 3/31/03 are -2.23% for Class A and Class B, -8.41%
for Class C, and -9.86% for Class Z. ****MSCI AC Asia
Pacific Free Gross Index Since Inception cumulative
total returns as of 4/30/03 are -8.15% for Class A
and Class B, -46.74% for Class C, and -45.99% for
Class Z. MSCI AC Asia Pacific Free Gross Index Since
Inception average annual total returns as of 3/31/03
are -0.93% for Class A and Class B, -7.17% for Class
C, and -8.52% for Class Z. *****Lipper Average Since
Inception cumulative total returns as of 4/30/03 are
1.79% for Class A and Class B, -36.08% for Class C,
and -38.48% for Class Z. Lipper Average Since
Inception average annual total returns as of 3/31/03
are -0.34% for Class A and Class B, -5.64% for Class
C, and -7.46% for Class Z.
PRUDENTIAL FINANCIAL (LOGO) June 16, 2003
DEAR SHAREHOLDER,
After fighting in Iraq ended in April 2003, U.S.
consumer confidence rose significantly and a more
optimistic tone pervaded the financial markets.
Major stock market indexes have continued to
improve, even as the long-standing bond market
rally persisted. While we welcome these
developments, it is important to remember that a wise
investor plans for tomorrow's needs today regardless
of the direction of financial markets.
Whether you are investing for your retirement, your
children's education, or for a new home for your
family, Prudential mutual funds offer advantages that
may help you reach your financial goals. Experienced
asset managers, working closely with research
analysts, employ time-tested investment processes
that were honed under a variety of market conditions.
We recommend that you consult a financial
professional who can help you strike the right
balance between your desire to obtain a particular
return from an investment and your tolerance for
risk.
I was named president of the Prudential Pacific
Growth Fund, Inc. in March 2003. On behalf of the
Prudential Financial family, I would like to thank
you for your continued confidence in Prudential
mutual funds. We look forward to serving your future
investment needs.
Sincerely,
Judy A. Rice, President
Prudential Pacific Growth Fund, Inc.
2
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited)
Shares Description Value (Note 1)
----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 96.6%
Common Stocks
-------------------------------------------------------------------------------------
Australia 19.0%
25,000 Australia & New Zealand Banking Group, Ltd. $ 291,663
112,000 BHP Billiton, Ltd. 633,357
10,000 Commonwealth Bank of Australia 170,275
300,000 Lihir Gold, Ltd.(a) 245,841
450,000 M.I.M. Holdings, Ltd. 478,546
28,300 National Australia Bank, Ltd. 575,349
104,000 Newcrest Mining, Ltd. 426,125
260,000 Qantas Airways, Ltd. 517,205
91,000 QBE Insurance Group, Ltd. 486,140
27,000 Rio Tinto, Ltd. 536,759
58,000 Santos, Ltd. 210,435
41,000 Suncorp-Metway, Ltd. 291,612
69,321 TABCORP Holdings, Ltd. 459,656
165,000 WMC, Ltd. 450,021
37,000 Woodside Petroleum, Ltd. 265,246
--------------
6,038,230
-------------------------------------------------------------------------------------
Hong Kong 16.6%
680,000 Aluminium Corp. of China, Ltd. 118,579
580,000 Beijing Datang Power Generation Co., Ltd. 228,682
990,000 Brilliance China Automotive Holdings, Ltd. 231,028
220,000 Cathay Pacific Airways, Ltd. 265,161
36,000 Cheung Kong (Holdings), Ltd. 198,947
206,000 China Merchants Holdings International Co., Ltd. 162,443
80,000 China Mobile (Hong Kong), Ltd. 160,532
480,000 China Petroleum & Chemical Corp. (Sinopec) 94,781
215,000 CLP Holdings, Ltd. 879,402
257,000 CNOOC, Ltd. 337,765
438,000 Cosco Pacific, Ltd. 370,661
190,000 Esprit Holdings, Ltd. 372,738
420,000 Hong Kong & China Gas Co., Ltd. 495,445
230,000 Hong Kong Electric Holdings, Ltd. 928,959
234,000 Huaneng Power International, Inc.(Class H) 222,027
See Notes to Financial Statements 3
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
Shares Description Value (Note 1)
----------------------------------------------------------------------------------------
198,000 Li & Fung, Ltd. $ 222,142
--------------
5,289,292
-------------------------------------------------------------------------------------
Japan 40.7%
3,000 Advantest Corp. 100,621
13,000 Bridgestone Corp. 147,485
14,000 Canon, Inc. 565,823
12,000 Daito Trust Construction Co., Ltd. 228,912
40,500 Denso Corp. 577,310
98 East Japan Railway Co. 443,736
9,000 Eisai Co., Ltd. 158,855
21,000 Fuji Photo Film Co., Ltd. 535,301
2,200 Funai Electric Co., Ltd. 221,365
22,600 Honda Motor Co., Ltd. 748,533
35,000 Kao Corp. 638,311
8,700 Kyocera Corp. 424,568
3,300 Mabuchi Motor Co., Ltd. 246,545
36,000 Matsushita Electric Industrial Co., Ltd. 286,768
143,000 Mazda Motor Corp. 251,803
123,000 Nikko Cordial Corp. 330,035
4,200 Nintendo Co., Ltd. 328,224
186 Nippon Telegraph & Telephone Corp. 651,920
70,800 Nissan Motor Co., Ltd. 543,200
128 NTT DoCoMo, Inc. 264,028
85,000 Osaka Gas Co., Ltd. 245,891
55,000 Ricoh Co., Ltd. 843,493
18,000 Secom Co., Ltd. 419,588
12,500 Shin-Etsu Chemical Co., Ltd. 374,182
9,000 Showa Corp. 83,842
5,000 Sony Corp. 121,583
32,000 Takeda Chemical Industries, Ltd. 1,172,564
145,000 Tokyo Gas Co., Ltd. 471,742
57,900 Toyota Motor Corp. 1,310,834
18,000 Yamato Transport Co., Ltd. 201,342
--------------
12,938,404
4 See Notes to Financial Statements
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
Shares Description Value (Note 1)
----------------------------------------------------------------------------------------
Malaysia 3.0%
28,200 British American Tobacco Malaysia Berhad $ 282,000
265,000 Magnum Corp. Berhad 165,276
75,000 Perusahaan Otomobil Nasional Berhad 124,342
235,000 Public Bank Berhad 148,421
105,000 Resorts World Berhad 230,724
--------------
950,763
-------------------------------------------------------------------------------------
New Zealand 1.3%
265,000 Carter Holt Harvey, Ltd. 241,611
5,443 Fisher & Paykel Healthcare Corp., Ltd. 32,729
54,400 Telecom Corp. of New Zealand, Ltd. 145,753
--------------
420,093
-------------------------------------------------------------------------------------
Singapore 3.2%
89,000 Keppel Corp., Ltd. 223,553
144,000 Neptune Orient Lines, Ltd.(a) 98,941
207,000 SembCorp Industries, Ltd. 137,565
64,000 Singapore Airlines, Ltd. 340,617
40,000 United Overseas Bank, Ltd. 234,287
--------------
1,034,963
-------------------------------------------------------------------------------------
South Korea 7.1%
5,800 Hyundai Motor Co., Ltd. 137,004
1,600 NCsoft Corp.(a) 139,589
5,700 POSCO 480,864
2,470 Samsung Electronics Co., Ltd. 620,041
84,560 Samsung Heavy Industries Co., Ltd.(a) 374,430
1,850 Shinsegae Co., Ltd. 220,782
2,000 SK Telecom Co., Ltd. 278,189
--------------
2,250,899
-------------------------------------------------------------------------------------
Taiwan 4.9%
172,000 Evergreen Marine Corp. 105,095
70,000 Hon Hai Precision Industry Co., Ltd. 218,876
156,000 Lite-On Technology Corp. 138,726
27,000 MediaTek, Inc. 220,740
See Notes to Financial Statements 5
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
Shares Description Value (Note 1)
----------------------------------------------------------------------------------------
122,000 Quanta Computer, Inc. $ 213,483
100,000 Synnex Technology International Corp. 117,613
180,000 Taiwan Styrene Monomer Corp.(a) 118,244
560,000 United Microelectronics Corp. 321,285
132,000 Wan Hai Lines, Ltd. 106,781
--------------
1,560,843
-------------------------------------------------------------------------------------
Thailand 0.8%
120,000 PTT Public Co., Ltd. 125,962
42,000 Siam Cement Public Co., Ltd. 124,423
--------------
250,385
--------------
Total long-term investments (cost $32,593,995) 30,733,872
--------------
SHORT-TERM INVESTMENT 2.9%
Principal
Amount
(000)
-------------------------------------------------------------------------------------
Repurchase Agreement
$ 928 Joint Repurchase Agreement Account,
1.357%, 5/1/03
(cost $928,000; Note 5) 928,000
--------------
Total Investments 99.5%
(cost $33,521,995; Note 6) 31,661,872
Other assets in excess of liabilities 0.5% 160,582
--------------
Net Assets 100% $ 31,822,454
--------------
--------------
------------------------------
(a) Non-income producing security.
6 See Notes to Financial Statements
Prudential Pacific Growth Fund, Inc.
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
The industry classification of portfolio holdings and other assets in excess of
liabilities shown as a percentage of net assets as of April 30, 2003 was as
follows:
Automotive............................................................. 13.1%
Electronic Components.................................................. 11.2
Mining................................................................. 10.6
Electrical Utilities................................................... 7.1
Electronics............................................................ 5.7
Telecommunication Services............................................. 4.7
Banks.................................................................. 4.5
Drugs & Healthcare..................................................... 4.3
Gas Utilities.......................................................... 3.8
Airlines............................................................... 3.5
Oil & Gas Exploration/Production....................................... 3.2
Transportation......................................................... 3.0
Diversified Operations................................................. 2.8
Hotels, Restaurants & Leisure.......................................... 2.7
Building & Construction................................................ 2.3
Chemicals.............................................................. 2.2
Cosmetics & Toiletries................................................. 2.0
Financial Services..................................................... 2.0
Insurance.............................................................. 1.5
Apparel & Textiles..................................................... 1.2
Leisure & Tourism...................................................... 1.0
Tobacco................................................................ 0.9
Computer Networks...................................................... 0.8
Paper & Forest Products................................................ 0.8
Merchandising.......................................................... 0.7
Real Estate Investment Trust........................................... 0.6
Software............................................................... 0.4
Other.................................................................. 2.9
-----
99.5
Other assets in excess of liabilities.................................. 0.5
-----
100.0%
-----
-----
See Notes to Financial Statements 7
Prudential Pacific Growth Fund, Inc.
Statement of Assets and Liabilities (Unaudited)
April 30, 2003
----------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $33,521,995) $ 31,661,872
Foreign currency, at value (cost $1,091,660) 1,097,837
Cash 222,670
Receivable for investments sold 614,834
Receivable for Fund shares sold 273,965
Dividends and interest receivable 147,934
Other assets 6,821
--------------
Total assets 34,025,933
--------------
LIABILITIES
Payable for Fund shares reacquired 1,324,991
Payable for investments purchased 608,674
Accrued expenses 220,657
Management fee payable 19,838
Withholding taxes payable 17,357
Distribution fee payable 11,962
--------------
Total liabilities 2,203,479
--------------
NET ASSETS $ 31,822,454
--------------
--------------
Net assets were comprised of:
Shares of common stock, at par $ 5,409
Paid-in capital in excess of par 79,796,346
--------------
79,801,755
Net investment loss (259,765)
Accumulated net realized loss on investments and foreign
currency transactions (45,865,654)
Net unrealized depreciation on investments and foreign
currencies (1,853,882)
--------------
Net assets, April 30, 2003 $ 31,822,454
--------------
--------------
8 See Notes to Financial Statements
Prudential Pacific Growth Fund, Inc.
Statement of Assets and Liabilities (Unaudited) Cont'd.
April 30, 2003
----------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share
($22,240,434 / 3,710,414 shares of common stock issued and
outstanding) $5.99
Maximum sales charge (5% of offering price) .32
--------------
Maximum offering price to public $6.31
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($7,151,009 / 1,275,887 shares of common stock issued and
outstanding) $5.60
--------------
--------------
Class C:
Net asset value and redemption price per share
($1,642,643 / 291,602 shares of common stock issued and
outstanding) $5.63
Sales charge (1% of offering price) .06
--------------
Offering price to public $5.69
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($788,368 / 131,055 shares of common stock issued and
outstanding) $6.02
--------------
--------------
See Notes to Financial Statements 9
Prudential Pacific Growth Fund, Inc.
Statement of Operations (Unaudited)
Six Months
Ended
April 30, 2003
----------------------------------------------------------------------------------------
NET INVESTMENT LOSS
Income
Dividends (net of foreign withholding taxes of $29,474) $ 318,107
Interest 8,647
--------------
Total income 326,754
--------------
Expenses
Management fee 130,957
Distribution fee--Class A 29,321
Distribution fee--Class B 44,300
Distribution fee--Class C 9,541
Custodian's fees and expenses 129,000
Transfer agent's fees and expenses 113,000
Registration fee 35,000
Reports to shareholders 34,000
Audit fees 20,000
Legal fees and expenses 20,000
Directors' fees 3,000
Miscellaneous 17,937
--------------
Total operating expenses 586,056
Loan interest expense (Note 8) 463
--------------
Total expenses 586,519
--------------
Net investment loss (259,765)
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
AND FOREIGN CURRENCY TRANSACTIONS
Net realized loss on:
Investment transactions (net of Thailand capital gains taxes
of $7,030) (2,354,010)
Foreign currency transactions (75,372)
--------------
(2,429,382)
--------------
Net change in unrealized appreciation (depreciation) on:
Investments (314,404)
Foreign currencies 29,166
--------------
(285,238)
--------------
Net loss on investments and foreign currencies (2,714,620)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (2,974,385)
--------------
--------------
10 See Notes to Financial Statements
Prudential Pacific Growth Fund, Inc.
Statement of Changes in Net Assets (Unaudited)
Six Months Year
Ended Ended
April 30, 2003 October 31, 2002
-------------------------------------------------------------------------------------
DECREASE IN NET ASSETS
Operations
Net investment loss $ (259,765) $ (358,225)
Net realized loss on investments and foreign
currency transactions (2,429,382) (2,604,272)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currencies (285,238) 2,817,924
-------------- ----------------
Net decrease in net assets resulting from
operations (2,974,385) (144,573)
-------------- ----------------
Fund share transactions (net of share
conversions)
(Note 7)
Net proceeds from shares sold 32,329,136 69,583,170
Cost of shares reacquired (36,462,650) (78,760,338)
-------------- ----------------
Net decrease in net assets from Fund share
transactions (4,133,514) (9,177,168)
-------------- ----------------
Total decrease (7,107,899) (9,321,741)
NET ASSETS
Beginning of period 38,930,353 48,252,094
-------------- ----------------
End of period $ 31,822,454 $ 38,930,353
-------------- ----------------
-------------- ----------------
See Notes to Financial Statements 11
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited)
Prudential Pacific Growth Fund, Inc. (the 'Fund') is registered under the
Investment Company Act of 1940 as a diversified, open-end management investment
company. The Fund was incorporated in Maryland on August 14, 1991 and commenced
investment operations on July 24, 1992. The investment objective of the Fund is
to seek long-term capital growth by investing primarily in common stocks, common
stock equivalents and other securities of companies doing business in or
domiciled in the Pacific Basin region.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange
(whether domestic or foreign) are valued at the last sale price on such exchange
on the day of valuation or, if there was no sale on such day, at the mean
between the last reported bid and asked prices or at the last bid price on such
day in the absence of an asked price. Securities traded via NASDAQ are valued at
the official closing price provided by NASDAQ. Securities that are actively
traded in the over-the-counter market, including securities listed on exchanges
whose primary market is believed to be over-the-counter, are valued at market
value using prices provided by an independent pricing agent or principal market
maker (if available, otherwise a principal market maker or a primary market
dealer). Securities for which reliable market quotations are not readily
available or for which the pricing agent or market maker does not provide a
valuation or methodology, or provides a valuation or methodology that, in the
judgment of the manager or subadviser, does not represent fair value, are valued
by a Valuation Committee appointed by the Board of Trustees, in consultation
with the manager and applicable subadviser.
Short-term securities which mature in more than 60 days are valued at
current market quotations. Short-term securities which mature in 60 days or less
are valued at amortized cost, which approximates market value.
Repurchase Agreements: In connection with transactions in repurchase
agreements with United States financial institutions, it is the Fund's policy
that its custodian or designated subcustodians under triparty repurchase
agreements, as the case may be, take possession of the underlying collateral
securities, the value of which exceeds the principal amount of the repurchase
transaction, including accrued interest. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of
12
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
the collateral. If the seller defaults and the value of the collateral declines
or if bankruptcy proceedings are commenced with respect to the seller of the
security, realization of the collateral by the Fund may be delayed or limited.
Foreign Currency Translation: The books and records of the Fund are
maintained in U.S. dollars. Foreign currency amounts are translated into U.S.
dollars on the following basis:
(i) market value of investment securities, other assets and
liabilities--at the current daily rates of exchange;
(ii) purchases and sales of investment securities, income and expenses--at
the rate of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange
rates and market values at the close of the period, the Fund does not isolate
that portion of the results of operations arising as a result of changes in the
foreign exchange rates from the fluctuations arising from changes in the market
prices of securities held at the end of the period. Similarly, the Fund does not
isolate the effect of changes in foreign exchange rates from the fluctuations
arising from changes in the market prices of portfolio securities sold during
the period. Accordingly, realized foreign currency gains (losses) are included
in the reported net realized gains (losses) on investment transactions.
Net realized gains (losses) on foreign currency transactions represent net
foreign exchange gains (losses) from forward currency contracts, disposition of
foreign currencies, currency gains (losses) realized between the trade and
settlement dates on security transactions, and the difference between the
amounts of interest, dividends and foreign taxes recorded on the Fund's books
and the U.S. dollar equivalent amounts actually received or paid. Net currency
gains (losses) from valuing foreign currency denominated assets and liabilities
(other than investments) at period end exchange rates are reflected as a
component of unrealized appreciation (depreciation) on investments and foreign
currencies.
Foreign security and currency transactions may involve certain
considerations and risks not typically associated with those of domestic origin
as a result of, among other factors, the possibility of political and economic
instability or the level of governmental supervision and regulation of foreign
securities markets.
Forward Currency Contracts: A forward currency contract is a commitment
to purchase or sell a foreign currency at a future date at a negotiated forward
rate. The Fund enters into forward currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings or on specific receivables and payables denominated in a foreign
currency. The contracts
13
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
are valued daily at current forward exchange rates and any unrealized gain or
loss is included in net unrealized appreciation or depreciation on investments.
Gain (loss) is realized on the settlement date of the contract equal to the
difference between the settlement value of the original and renegotiated forward
contracts. This gain (loss), if any, is included in net realized gain (loss) on
foreign currency transactions. Risks may arise upon entering into these
contracts from the potential inability of the counterparties to meet the terms
of their contracts.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized and unrealized gains
(losses) from security and currency transactions are calculated on the
identified cost basis. Dividend income is recorded on the ex-dividend date and
interest income, including amortization of premium and accretion of discount on
debt securities, as required, is recorded on the accrual basis. Expenses are
recorded on the accrual basis which may require the use of certain estimates by
management.
Net investment income (loss) (other than distribution fees which are
charged directly to the respective Class) and unrealized and realized gains and
losses are allocated daily to each class of shares based upon the relative
proportion of net assets of each class at the beginning of the day.
Dividends and Distributions: The Fund expects to pay dividends of net
investment income and distributions of net realized capital and currency gains,
if any, annually. Dividends and distributions to shareholders, which are
determined in accordance with federal income tax regulations and which may
differ from generally accepted accounting principles, are recorded on the
ex-dividend date. Permanent book/tax differences relating to income and gains
are reclassified to paid in capital when they arise.
Taxes: For federal income tax purposes, it is the Fund's policy to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable net income
and capital gains, if any, to shareholders. Therefore, no federal income tax
provision is required.
Withholding taxes on foreign dividends, interest and capital gains have
been provided for in accordance with the Fund's understanding of the applicable
country's tax rules and rates.
Note 2. Agreements
The Fund has a management agreement with Prudential Investments LLC ('PI').
Pursuant to this agreement, PI has responsibility for all investment advisory
services and supervises the subadviser's performance of such services. PI has
entered into a subadvisory agreement with Jardine Fleming International
Management, Inc. ('JF').
14
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
The subadvisory agreement provides that JF furnishes investment advisory
services in connection with the management of the Fund. In connection therewith,
JF is obligated to keep certain books and records of the Fund. PI paid for the
services of JF, the compensation of officers of the Fund, occupancy and certain
clerical and bookkeeping costs of the Fund. The Fund bears all other costs and
expenses.
The management fee paid to PI is computed daily and payable monthly at an
annual rate of .75 of 1% of the average daily net assets of the Fund.
The Fund has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS'), which acts as the distributor of the Class A,
Class B, Class C and Class Z shares of the Fund. The Fund compensates PIMS for
distributing and servicing the Fund's Class A, Class B and Class C shares,
pursuant to plans of distribution, (the 'Class A, Class B and Class C Plans'),
regardless of expenses actually incurred by them. The distribution fees are
accrued daily and payable monthly. No distribution or service fees are paid to
PIMS as distributor of the Class Z shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for
distribution-related activities at an annual rate of up to .30 of 1%, 1% and 1%
of the average daily net assets of the Class A, B and C shares, respectively.
Such expenses under the Class A, Class B and Class C Plans were .25%, 1% and 1%,
respectively, of the average daily net assets of the Class A, Class B and Class
C shares for the six months ended April 30, 2003.
PIMS has advised the Fund that it received approximately $5,500 and $9,100
in front-end sales charges resulting from sales of Class A and Class C shares,
respectively, during the six months ended April 30, 2003. From these fees, PIMS
paid such sales charges to dealers, which in turn paid commissions to
salespersons and incurred other distribution costs.
PIMS has advised the Fund that for the year six months ended April 30,
2003, it received approximately $9,800 and $6,100 in contingent deferred sales
charges imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PIMS and PI are indirect, wholly-owned subsidiaries of Prudential
Financial, Inc. ('Prudential').
Note 3. Other Transactions With Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), an affiliate of PI and an
indirect, wholly-owned subsidiary of Prudential, serves as the Fund's transfer
agent. During the six months ended April 30, 2003, the Fund incurred fees of
approximately $85,500 for the services of PMFS. As of April 30, 2003
approximately $13,900 of such fees were due to PMFS.
15
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
The Fund pays networking fees to affiliated and unaffiliated
broker/dealers. These networking fees are payments made to broker/dealers that
clear mutual fund transactions through a national clearing system. The Fund
incurred approximately $15,100 in total networking fees, of which the amount
paid to Prudential Securities, Inc. ('PSI'), an affiliate of PI and an indirect,
wholly-owned subsidiary of Prudential was approximately $12,000 for the six
months ended April 30, 2003. As of April 30, 2003, approximately $1,900 of such
fees were due to PSI. These amounts are included in transfer agent's fees and
expenses in the Statement of Operations.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term
investments,for the six months ended April 30, 2003 were $23,485,712 and
$26,967,995, respectively.
Note 5. Joint Repurchase Agreement Account
The Fund, along with other affiliated registered investment companies, transfers
uninvested cash into a single joint account, the daily aggregate balance of
which is invested in one or more repurchase agreements collateralized by U.S.
Treasury or federal agency obligations. As of April 30, 2003, the Fund had a
..37% undivided interest in the repurchase agreements in the joint account. The
undivided interest for the Fund represents $928,000 in principal amount. As of
such date, each repurchase agreements in the joint account and the collateral
therefor were as follows:
Bank of America, 1.36%, in the principal amount of $83,551,000, repurchase
price $83,554,156, due 05/01/03. The value of the collateral including accrued
interest was $85,222,020.
Credit Suisse First Boston, 1.35%, in the principal amount of $83,550,000,
repurchase price $83,553,133, due 05/01/03. The value of the collateral
including accrued interest was $85,224,740.
Greenwich Capital Markets, Inc., 1.36% in the principal amount of
$83,551,000, repurchase price $83,554,156, due 05/01/03. The value of the
collateral including accrued interest was $85,224,454.
Note 6. Tax Information
For federal income tax purposes, the Fund had a capital loss carryforward as of
October 31, 2002 of approximately $43,057,000 of which $6,178,000 expires in
2006 and $34,269,000 expires in 2009 and $2,610,000 expires in 2010.
Accordingly, no capital gains distributions are expected to be paid to
shareholders until net gains have been realized in excess of such carryforward.
16
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
The United States federal income tax basis of the Fund's investments and
the net unrealized depreciation as of April 30, 2003 were as follows:
Total Net
Unrealized
Tax Basis Appreciation Depreciation Depreciation
------------------ ------------------- ------------------- -------------------
$33,901,429 $1,314,753 $3,554,310 $2,239,557
The difference between book basis and tax basis is primarily attributable
to deferred losses on wash sales.
Note 7. Capital
The Fund offers Class A, Class B, Class C and Class Z shares. Class A shares are
sold with an initial sales charge of up to 5%. Certain investors who purchase $1
million or more of Class A shares are subject to a 1% contingent deferred sales
charge during the first 12 months. Class B shares are sold with a contingent
deferred sales charge which declines from 5% to zero depending upon the period
of time the shares are held. Class C shares are sold with a front-end sales
charge of 1% and a contingent deferred sales charge of 1% during the first 18
months. Class B shares will automatically convert to Class A shares on a
quarterly basis approximately seven years after purchase. A special exchange
privilege is also available for shareholders who qualify to purchase Class A
shares at net asset value. Class Z shares are not subject to any sales or
redemption charge and are offered exclusively for sale to a limited group of
investors.
The Fund has authorized 2 billion shares of common stock at $.001 par
value per share divided into four classes, designated Class A, Class B, Class C
and Class Z common stock each consisting of 500 million authorized shares.
Transactions in shares of common stock were as follows:
Class A Shares Amount
---------------------------------------------------------- ----------- -------------
Six months ended April 30, 2003:
Shares sold 2,028,389 $ 12,641,495
Shares reacquired (2,384,557) (15,024,108)
----------- -------------
Net increase (decrease) in shares outstanding before
conversion (356,168) (2,382,613)
Shares issued upon conversion from Class B 257,973 1,580,045
----------- -------------
Net increase (decrease) in shares outstanding (98,195) $ (802,568)
----------- -------------
----------- -------------
Year ended October 31, 2002:
Shares sold 4,523,111 $ 32,181,123
Shares reacquired (5,307,798) (38,302,857)
----------- -------------
Net increase (decrease) in shares outstanding before
conversion (784,687) (6,121,734)
Shares issued upon conversion from Class B 400,877 2,914,264
----------- -------------
Net increase (decrease) in shares outstanding (383,810) $ (3,207,470)
----------- -------------
----------- -------------
17
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
Class B
----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 820,105 $ 4,792,540
Shares reacquired (1,021,079) (6,059,245)
----------- -------------
Net increase (decrease) in shares outstanding before
conversion (200,974) (1,266,705)
Shares reacquired upon conversion into Class A (275,840) (1,580,045)
----------- -------------
Net increase (decrease) in shares outstanding (476,814) $ (2,846,750)
----------- -------------
----------- -------------
Year ended October 31, 2002:
Shares sold 2,022,298 $ 13,450,177
Shares reacquired (2,371,964) (15,924,703)
----------- -------------
Net increase (decrease) in shares outstanding before
conversion (349,666) (2,474,526)
Shares reacquired upon conversion into Class A (425,682) (2,914,264)
----------- -------------
Net increase (decrease) in shares outstanding (775,348) $ (5,388,790)
----------- -------------
----------- -------------
Class C
----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 1,202,955 $ 7,044,926
Shares reacquired (1,242,732) (7,357,202)
----------- -------------
Net increase (decrease) in shares outstanding (39,777) $ (312,276)
----------- -------------
----------- -------------
Year ended October 31, 2002:
Shares sold 1,098,902 $ 7,349,768
Shares reacquired (1,102,949) (7,435,970)
----------- -------------
Net increase (decrease) in shares outstanding (4,047) $ (86,202)
----------- -------------
----------- -------------
Class Z
----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 1,269,392 $ 7,850,175
Shares reacquired (1,277,882) (8,022,095)
----------- -------------
Net increase (decrease) in shares outstanding (8,490) $ (171,920)
----------- -------------
----------- -------------
Year ended October 31, 2002:
Shares sold 2,321,128 $ 16,602,102
Shares reacquired (2,349,153) (17,096,808)
----------- -------------
Net increase (decrease) in shares outstanding (28,025) $ (494,706)
----------- -------------
----------- -------------
Note 8. Borrowings
The Fund, along with other affiliated registered investment companies (the
'Funds'), is a party to a syndicated credit agreement ('SCA') with a group of
banks. For the six months ended April 30, 2003, the SCA provides for a
commitment of $800 million and allows the Funds to increase the commitment to $1
billion, if necessary. Interest on any borrowings will be at market rates. The
Funds pay a commitment fee of .08 of 1% of the unused portion of the SCA. The
commitment fee is accrued and paid
18
Prudential Pacific Growth Fund, Inc.
Notes to Financial Statements (Unaudited) Cont'd.
quarterly on a pro rata basis by the Funds. The expiration date of the SCA is
May 2, 2003. On May 2, 2003, the SCA was renewed under the same terms and
conditions ('May 2003 renewal'). The expiration date of the May 2003 renewal is
April 30, 2004.
The Fund utilized the line of credit during the six months ended April 30,
2003. The average daily balance for the 3 days the Fund had outstanding during
the six months was approximately $3,331,000 at a weighted average interest rate
of approximately 1.78%.
19
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited)
Class A(a)
----------------
Six Months Ended
April 30, 2003
----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 6.59
--------
Income/loss from investment operations
Net investment income (loss) (.04)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions (.56)
--------
Total from investment operations (.60)
--------
Less distributions
Dividends from net investment income --
Distributions in excess of net investment income --
Distributions from net realized gains --
--------
Total distributions --
--------
Net asset value, end of period $ 5.99
--------
--------
TOTAL RETURN(b) (8.95)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 22,240
Average net assets (000) $ 23,651
Ratios to average net assets:
Total expenses(c) 3.13%(d)
Operating expenses, including distribution and service
(12b-1) fees(c) 3.13%(d)
Operating expenses, excluding distribution and service
(12b-1) fees 2.88%(d)
Net investment income (loss) (1.24)%(d)
For Class A, B, C and Z shares:
Portfolio turnover rate(e) 71%
------------------------------
(a) Calculated based upon weighted average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for less than one year are not annualized.
(c) The distributor of the Fund contractually agreed to limit its distribution
and service (12b-1) fees to .25 of 1% of the average daily net assets of the
Class A shares.
(d) Annualized.
(e) Not annualized for periods of less than one full year.
20 See Notes to Financial Statements
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
Class A(a)
----------------------------------------------------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------------------------------------------------
2002 2001 2000 1999 1998
----------------------------------------------------------------------------------------------------------
$ 6.83 $ 9.70 $ 14.01 $ 9.14 $ 12.22
-------- -------- -------- -------- --------
(.03) (.09) (.09) (.04) .06
(.21) (2.78) (4.01) 4.99 (1.88)
-------- -------- -------- -------- --------
(.24) (2.87) (4.10) 4.95 (1.82)
-------- -------- -------- -------- --------
-- -- (.16) (.08) --
-- -- (.05) -- (.40)
-- -- -- -- (.86)
-------- -------- -------- -------- --------
-- -- (.21) (.08) (1.26)
-------- -------- -------- -------- --------
$ 6.59 $ 6.83 $ 9.70 $ 14.01 $ 9.14
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
(3.51)% (29.59)% (29.82)% 55.11% (15.53)%
$ 25,106 $ 28,615 $ 50,141 $ 49,338 $ 22,624
$ 29,077 $ 34,919 $ 53,389 $ 31,281 $ 26,845
2.39% 2.60% 1.60% 1.72% 1.70%
2.39% 2.58% 1.57% 1.72% 1.70%
2.14% 2.33% 1.32% 1.47% 1.45%
(.48)% (1.12)% (.70)% (.34)% .63%
155% 158% 93% 104% 94%
See Notes to Financial Statements 21
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
Class B(a)
----------------
Six Months Ended
April 30, 2003
----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 6.19
-------
Income/loss from investment operations
Net investment loss (.06)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions (.53)
-------
Total from investment operations (.59)
-------
Less distributions
Dividends from net investment income --
Distributions in excess of net investment income --
Distributions from net realized gains --
-------
Total distributions --
-------
Net asset value, end of period $ 5.60
-------
-------
TOTAL RETURN(b) (9.37)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $7,151
Average net assets (000) $8,933
Ratios to average net assets:
Total expenses 3.88%(c)
Operating expenses, including distribution and service
(12b-1) fees 3.88%(c)
Operating expenses, excluding distribution and service
(12b-1) fees 2.88%(c)
Net investment loss (2.08)%(c)
------------------------------
(a) Calculated based upon weighted average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for less than one year are not annualized.
(c) Annualized.
22 See Notes to Financial Statements
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
Class B(a)
----------------------------------------------------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------------------------------------------------
2002 2001 2000 1999 1998
----------------------------------------------------------------------------------------------------------
$ 6.45 $ 9.30 $ 13.50 $ 8.79 $ 11.77
-------- -------- -------- ---------------- --------
(.09) (.15) (.19) (.12) (.01)
(.17) (2.70) (3.87) 4.84 (1.82)
-------- -------- -------- ---------------- --------
(.26) (2.85) (4.06) 4.72 (1.83)
-------- -------- -------- ---------------- --------
-- -- (.09) (.01) --
-- -- (.05) -- (.29)
-- -- -- -- (.86)
-------- -------- -------- ---------------- --------
-- -- (.14) (.01) (1.15)
-------- -------- -------- ---------------- --------
$ 6.19 $ 6.45 $ 9.30 $ 13.50 $ 8.79
-------- -------- -------- ---------------- --------
-------- -------- -------- ---------------- --------
(4.03)% (30.72)% (30.40)% 54.28% (16.32)%
$ 10,840 $ 16,314 $ 51,004 $107,769 $ 74,457
$ 14,322 $ 28,834 $ 96,019 $ 85,193 $ 91,983
3.14% 3.35% 2.35% 2.47% 2.45%
3.14% 3.33% 2.32% 2.47% 2.45%
2.14% 2.33% 1.32% 1.47% 1.45%
(1.32)% (1.90)% (1.43)% (1.09)% (.12)%
See Notes to Financial Statements 23
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
Class C(a)
----------------
Six Months Ended
April 30, 2003
----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 6.22
-------
Income/loss from investment operations
Net investment loss (.06)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions (.53)
-------
Total from investment operations (.59)
-------
Less distributions
Dividends from net investment income --
Distributions in excess of net investment income --
Distributions from net realized gains --
-------
Total distributions --
-------
Net asset value, end of period $ 5.63
-------
-------
TOTAL RETURN(b) (9.32)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $1,643
Average net assets (000) $1,924
Ratios to average net assets:
Total expenses 3.88%(c)
Operating expenses, including distribution and service
(12b-1) fees 3.88%(c)
Operating expenses, excluding distribution and service
(12b-1) fees 2.88%(c)
Net investment loss (1.99)%(c)
------------------------------
(a) Calculated based upon weighted average shares outstanding during the period.
(b) Total return does not consider the effects of sales loads. Total return is
calculated assuming a purchase of shares on the first day and a sale on the
last day of each period reported and includes reinvestment of dividends and
distributions. Total returns for less than one year are not annualized.
(c) Annualized.
24 See Notes to Financial Statements
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
Class C(a)
----------------------------------------------------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------------------------------------------------
2002 2001 2000 1999 1998
----------------------------------------------------------------------------------------------------------
$ 6.49 $ 9.30 $13.50 $ 8.79 $11.77
------- ------- ------- ------- -------
(.08) (.15) (.19) (.12) (.01)
(.19) (2.66) (3.87) 4.84 (1.82)
------- ------- ------- ------- -------
(.27) (2.81) (4.06) 4.72 (1.83)
------- ------- ------- ------- -------
-- -- (.09) (.01) --
-- -- (.05) -- (.29)
-- -- -- -- (.86)
------- ------- ------- ------- -------
-- -- (.14) (.01) (1.15)
------- ------- ------- ------- -------
$ 6.22 $ 6.49 $ 9.30 $13.50 $ 8.79
------- ------- ------- ------- -------
------- ------- ------- ------- -------
(4.16)% (30.29)% (30.40)% 54.28% (16.32)%
$2,061 $2,176 $6,040 $7,073 $1,654
$2,299 $3,035 $7,376 $3,103 $2,276
3.14% 3.35% 2.35% 2.47% 2.45%
3.14% 3.33% 2.32% 2.47% 2.45%
2.14% 2.33% 1.32% 1.47% 1.45%
(1.23)% (1.90)% (1.42)% (1.09)% (.12)%
See Notes to Financial Statements 25
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
Class Z(a)
----------------
Six Months Ended
April 30, 2003
----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 6.61
-------
Income/loss from investment operations
Net investment income (loss) (.03)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions (.56)
-------
Total from investment operations (.59)
-------
Less distributions
Dividends from net investment income --
Distributions in excess of net investment income --
Distributions from net realized gains --
-------
Total distributions --
-------
Net asset value, end of period $ 6.02
-------
-------
TOTAL RETURN(b) (8.93)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 788
Average net assets (000) $ 702
Ratios to average net assets:
Total expenses 2.88%(c)
Operating expenses 2.88%(c)
Net investment income (loss) (.88)%(c)
------------------------------
(a) Calculated based upon average weighted shares outstanding during the period.
(b) Total return is calculated assuming a purchase of shares on the first day
and a sale on the last day of each period reported and includes reinvestment
of dividends and distributions. Total returns for less than one year are not
annualized.
(c) Annualized.
26 See Notes to Financial Statements
Prudential Pacific Growth Fund, Inc.
Financial Highlights (Unaudited) Cont'd.
Class Z(a)
----------------------------------------------------------------------------------------------------------
Year Ended October 31,
----------------------------------------------------------------------------------------------------------
2002 2001 2000 1999 1998
----------------------------------------------------------------------------------------------------------
$ 6.85 $ 9.75 $ 14.12 $ 9.17 $ 12.28
------- ------- -------- -------- --------
(.01) (.07) (.06) -- .08
(.23) (2.83) (4.08) 5.06 (1.89)
------- ------- -------- -------- --------
(.24) (2.90) (4.14) 5.06 (1.81)
------- ------- -------- -------- --------
-- -- (.18) (.11) --
-- -- (.05) -- (.44)
-- -- -- -- (.86)
------- ------- -------- -------- --------
-- -- (.23) (.11) (1.30)
------- ------- -------- -------- --------
$ 6.61 $ 6.85 $ 9.75 $ 14.12 $ 9.17
------- ------- -------- -------- --------
------- ------- -------- -------- --------
(3.50)% (29.89)% (29.75)% 56.05% (15.36)%
$ 922 $1,147 $ 3,767 $ 43,311 $ 12,429
$1,068 $2,107 $ 33,479 $ 22,811 $ 15,099
2.14% 2.35% 1.35% 1.47% 1.45%
2.14% 2.33% 1.32% 1.47% 1.45%
(.18)% (.86)% (.40)% (.03)% .82%
See Notes to Financial Statements 27
www.prudential.com (800) 225-1852
FOR MORE INFORMATION
Prudential Mutual Funds
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
(800) 225-1852
Directors
Delayne Dedrick Gold
Robert F. Gunia
Robert E. La Blanc
Judy A. Rice
Robin B. Smith
Stephen Stoneburn
Clay T. Whitehead
Officers
Judy A. Rice, President
Robert F. Gunia, Vice President
Grace C. Torres, Treasurer
Marguerite E.H. Morrison, Chief Legal Officer
and Assistant Secretary
Jonathan D. Shain, Secretary
Maryanne Ryan, Anti-Money Laundering
Compliance Officer
Manager
Prudential Investments LLC
Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
Investment Adviser
JF International Management Inc.
21st Floor, Charter House
8 Connaught Road, Central
Hong Kong
Distributor
Prudential Investment
Management Services LLC
Gateway Center Three, 14th Floor
Newark, NJ 07102-4077
Custodian
State Street Bank and Trust Company
One Heritage Drive
North Quincy, MA 02171
Transfer Agent
Prudential Mutual Fund Services LLC
PO Box 8098
Philadelphia, PA 19101
Independent Auditors
PricewaterhouseCoopers LLP
1177 Avenue of the Americas
New York, NY 10036
Legal Counsel
Sullivan & Cromwell LLP
125 Broad Street
New York, NY 10004-2498
Fund Symbols Nasdaq CUSIP
------------ ------ -----
Class A PRPAX 743941106
Class B PRPBX 743941205
Class C PRPCX 743941304
Class Z PPGZX 743941403
The views expressed in this report and
information about the Fund's portfolio holdings
are for the period covered by this report and
are subject to change thereafter.
The accompanying financial statements as of
April 30, 2003, were not audited and, accordingly,
no auditor's opinion is expressed on them.
Mutual funds are not insured by the FDIC or any
federal government agency, are not a deposit of or
guaranteed by any bank or any bank affiliate, and may
lose value.
PRUDENIAL FINANCIAL (LOGO)
Fund Symbols Nasdaq CUSIP
------------ ------ -----
Class A PRPAX 743941106
Class B PRPBX 743941205
Class C PRPCX 743941304
Class Z PPGZX 743941403
MF157E2 IFS-A080882
Item 2 -- Code of Ethics -- Not required in this filing
Item 3 -- Audit Committee Financial Expert -- Not required in this filing
Item 4 -- Principal Accountant Fees and Services -- Not required in this
filing
Item 5 -- Reserved
Item 6 -- Reserved
Item 7 -- Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies -- Not required in this filing
Item 8 -- Reserved
Item 9 -- Controls and Procedures
(a) It is the conclusion of the registrant's principal executive
officer and principal financial officer that the effectiveness of
the registrant's current disclosure controls and procedures (such
disclosure controls and procedures having been evaluated within
90 days of the date of this filing) provide reasonable assurance
that the information required to be disclosed by the registrant
has been recorded, processed, summarized and reported within the
time period specified in the Commission's rules and forms and
that the information required to be disclosed by the registrant
has been accumulated and communicated to the registrant's
principal executive officer and principal financial officer in
order to allow timely decisions regarding required disclosure.
(b) There have been no significant changes in the registrant's
internal controls or in other factors that could significantly
affect these controls subsequent to the date of their evaluation,
including any corrective actions with regard to significant
deficiencies and material weaknesses.
Item 10 -- Exhibits
(a) Code of Ethics -- Not required in this filing
(b) Certifications pursuant to Section 302 of the Sarbanes-Oxley
Act -- Attached hereto
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, the registrant has duly
caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
Prudential Pacific Growth Fund
By: /s/ Jonathan D. Shain
------------------------
Jonathan D. Shain
Secretary of Prudential Pacific Growth Fund
Date: July 8, 2003
Pursuant to the requirements of the Securities Exchange Act of 1934
and the Investment Company Act of 1940, this report has been signed
below by the following persons on behalf of the registrant and in
the capacities and on the dates indicated.
By: /s/ Judy A. Rice
-------------------------
Judy A. Rice,
President of Prudential Pacific Growth Fund
Date: July 8 2003
By: /s/ Grace C. Torres
--------------------------
Grace C. Torres,
Treasurer and Principal Financial Officer of Prudential
Pacific Growth Fund
Date: July 8, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.