<Page>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
<Table>
Investment Company Act file number: 811-03981
Exact name of registrant as specified in charter: Prudential World Fund
- Global Growth Fund
- International Value Fund
- Jennison International Value 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
</Table>
<Page>
Item 1 - Reports to Stockholders
SEMIANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
GLOBAL GROWTH FUND
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. (LOGO)
Prudential World Fund, Inc. Prudential Global Growth Fund
Performance at a Glance
FUND OBJECTIVE
The investment objective of the Prudential
Global 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 5.19% -14.56% -16.96% 76.04% 88.78%
Class B 4.94 -14.97 -19.68 64.56 361.36
Class C 4.84 -15.14 -19.87 N/A 25.53
Class Z 5.33 -14.34 -15.96 N/A 18.97
MSCI World Index3 3.62 -14.58 -19.52 66.95 ***
Lipper Global Funds Avg.4 1.81 -16.75 -15.51 79.88 ****
<Table>
<Caption>
Average Annual Total Returns1 As of 3/31/03
One Year Five Years Ten Years Since Inception2
Class A -25.98% -4.96% 5.30% 4.21%
Class B -26.34 -5.58 4.59 8.16
Class C -26.51 -5.63 N/A 1.58
Class Z -25.82 -4.75 N/A 1.15
MSCI World Index3 -24.34 -5.68 4.84 ***
Lipper Global Funds Avg.4 -24.99 -4.90 4.90 ****
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 and Lipper Inc. 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 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, 1/22/90; Class B, 5/15/84; Class C,
8/1/94; and Class Z, 3/1/96. 3The Morgan
Stanley Capital International (MSCI) World
Index is an unmanaged, weighted index of
performance of approximately 1,500 securities
listed on stock exchanges of Australia, Canada,
Europe, the Far East, and the United States.
4The Lipper Global Funds Average (Lipper
Average) represents returns based on an average
return of all funds in the Lipper Global Funds
category for the periods noted. Funds in the
Lipper Global Funds Average invest at least 25%
of their portfolios in securities traded
outside the United States and may own U.S.
securities as
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2003
well. Investors cannot invest directly in an
index. The returns for the MSCI World Index 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
World Index Since Inception cumulative total
returns as of 4/30/03 are 85.08% for Class A,
543.39% for Class B, 46.61% for Class C, and
19.18% for Class Z. MSCI World Index Since
Inception average annual total returns as of
3/31/03 are 4.11% for Class A, 9.89% for Class
B, 3.49% for Class C, and 1.29% for Class Z.
****Lipper Average Since Inception cumulative
total returns as of 4/30/03 are 122.28% for
Class A, 642.00% for Class B, 53.61% for Class
C, and 25.89% for Class Z. Lipper Average Since
Inception average annual total returns as of
3/31/03 are 5.10% for Class A, 10.32% for Class
B, 3.79% for Class C, and 1.87% for Class Z
1
(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 World
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 World Fund, Inc./Prudential Global Growth Fund
2
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited)
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 96.2%
Common Stocks 94.8%
- -------------------------------------------------------------------------------------
Australia 3.9%
440,100 Amcor, Ltd. $ 2,287,781
957,831 BHP Billition, Ltd. 5,416,508
256,215 CRA, Ltd. 5,093,550
----------------
12,797,839
- -------------------------------------------------------------------------------------
Finland 1.6%
312,360 Nokia Oyj 5,284,683
- -------------------------------------------------------------------------------------
France 2.7%
66,413 Total SA 8,708,740
- -------------------------------------------------------------------------------------
Germany 1.9%
136,560 Deutsche Boerse AG(b) 6,400,843
- -------------------------------------------------------------------------------------
Hong Kong 3.9%
2,556,000 Cathay Pacific Airways, Ltd. 3,080,683
3,903,130 China Merchants Holdings 3,077,843
8,492,100 China Oilfield Services, Ltd., Ser. H 1,796,624
5,554,000 Cosco Pacific, Ltd. 4,700,111
----------------
12,655,261
- -------------------------------------------------------------------------------------
Italy 2.9%
232,400 Eni SpA 3,312,008
246,284 Riunione Adriatica di Sicurta SpA 3,551,102
95,847 Tod's SpA 2,800,351
----------------
9,663,461
- -------------------------------------------------------------------------------------
Japan 5.0%
14,400 Funai Electric Co., Ltd. 1,448,935
132,300 Lawson, Inc. 4,060,188
1,105,000 Mitsubishi Corp.(b) 6,569,218
136,500 Sohgo Security Services Co., Ltd. 1,696,235
753,700 Tokyo Gas Co., Ltd. 2,452,085
----------------
16,226,661
</Table>
See Notes to Financial Statements 3
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
Mexico 1.6%
5,961,200 Grupo Financiero BBVA Bancomer, SA de CV, Ser.
B(a) $ 5,183,904
- -------------------------------------------------------------------------------------
Netherlands 1.6%
176,300 ING Groep NV(b) 2,862,725
38,000 Unilever NV 2,393,933
----------------
5,256,658
- -------------------------------------------------------------------------------------
South Korea 1.7%
22,300 Samsung Electronics Co., Ltd. 5,597,942
- -------------------------------------------------------------------------------------
Spain 3.7%
152,741 Banco Popular Espanol SA 7,404,740
413,559 Telefonica, SA(a) 4,573,788
----------------
11,978,528
- -------------------------------------------------------------------------------------
Switzerland 1.5%
4,775 Serono SA 2,591,167
48,800 UBS AG 2,315,329
----------------
4,906,496
- -------------------------------------------------------------------------------------
Taiwan 1.7%
4,011,000 Taiwan Semiconductor Manufacturing Co., Ltd.(a) 5,499,879
- -------------------------------------------------------------------------------------
United Kingdom 13.8%
434,500 Bunzl PLC 3,128,452
65,100 Diageo PLC 722,080
717,499 Exel PLC 6,880,460
1,035,845 GKN PLC 3,410,413
1,224,600 Hilton Group PLC 2,994,544
141,600 HSBC Holdings PLC 1,551,371
103,800 Reckitt Benckiser PLC 1,830,689
305,700 Royal Bank Scotland Group PLC 8,017,685
2,740,000 Signet Group PLC 3,678,534
1,101,600 Tesco PLC 3,486,054
4,728,876 Vodafone Group PLC 9,334,044
----------------
45,034,326
</Table>
4 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
United States 47.3%
113,100 Accenture, Ltd., Class A(a) $ 1,811,862
52,800 Allergan, Inc. 3,709,200
36,600 American International Group, Inc. 2,120,970
147,200 Amgen, Inc.(a) 9,024,832
47,300 Analog Devices, Inc.(a) 1,566,576
79,700 AstraZeneca PLC (ADR) 3,177,639
133,600 Bed Bath & Beyond, Inc.(a) 5,278,536
143,500 BJ Services Co.(a) 5,239,185
111,100 Boise Cascade Corp. 2,551,967
269,000 Cisco Systems, Inc.(a) 4,045,760
185,583 Citigroup, Inc. 7,284,133
74,700 Clear Channel Communications, Inc.(a) 2,921,517
28,000 Colgate-Palmolive Co. 1,600,760
54,500 Comcast Corp., Class A(a)(b) 1,739,095
86,600 Comcast Corp., Class A Special(a)(b) 2,603,196
35,600 Electronic Arts, Inc.(a)(b) 2,110,012
83,800 Forest Laboratories, Inc.(a) 4,334,136
75,200 Gilead Sciences, Inc.(a) 3,469,728
77,500 Goldman Sachs Group, Inc. 5,882,250
89,500 International Paper Co. 3,199,625
43,300 Kohl's Corp.(a) 2,459,440
119,000 MedImmune, Inc.(a) 4,197,130
225,800 Microsoft Corp. 5,773,706
96,100 Morgan Stanley 4,300,475
65,200 Omnicare, Inc. 1,729,104
68,600 Omnicom Group, Inc. 4,246,340
15,200 P.F. Chang's China Bistro, Inc.(a) 636,880
203,560 Pfizer, Inc. 6,259,470
121,600 SAP AG (ADR)(b) 3,102,016
150,100 Smith International, Inc.(a) 5,337,556
22,400 Starbucks Corp.(a) 526,176
122,800 Target Corp. 4,106,432
200,700 Telefonos de Mexico SA de CV Ser. L (ADR) 6,063,147
164,100 Texas Instruments, Inc. 3,034,209
155,500 The Bank of New York Co., Inc. 4,112,975
25,200 The Procter & Gamble Co. 2,264,220
</Table>
See Notes to Financial Statements 5
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
2,400 Unibanco - Uniao de Bancos Brasileiros S.A. (ADR) $ 43,560
141,000 Univision Communications, Inc., Class A(a)(b) 4,269,480
272,250 USA Interactive, Inc.(a)(b) 8,153,887
38,400 Viacom, Inc., Class B(a)(b) 1,666,944
94,900 Wal-Mart Stores, Inc. 5,344,768
81,800 Weatherford International, Ltd.(a) 3,290,814
----------------
154,589,708
----------------
Total common stocks (cost $283,184,846) 309,784,929
----------------
Preferred Stocks 1.4%
- -------------------------------------------------------------------------------------
Germany
12,542 Porsche AG (cost $5,067,368) 4,618,970
----------------
Total long-term investments (cost $288,252,214) 314,403,899
----------------
SHORT-TERM INVESTMENT 9.4%
- -------------------------------------------------------------------------------------
Mutual Fund
30,649,206 Prudential Core Investment Fund - Taxable Money
Market Series(c)
(cost $30,649,206) 30,649,206
----------------
Total Investments 105.6%
(cost $318,901,420; Note 5) 345,053,105
Liabilities in excess of other assets (5.6%) (18,365,878)
----------------
Net Assets 100% $ 326,687,227
----------------
----------------
</Table>
- ------------------------------
(a) Non-income producing security.
(b) Security or portion thereof, on loan, see Note 4.
(c) Represents security, or portion thereof, purchased with cash collateral
received for securities on loan.
6 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
The industry classification of portfolio holdings and other assets (net) shown
as a percentage of net assets as of April 30, 2003 was as follows:
Short-Term Investments 9.4%
Banks 8.8
Diversified Financials 8.2
Biotechnology 5.9
Pharmaceuticals 5.4
Media 5.3
Energy Equipment & Services 4.8
Semiconductor Equipment & Products 4.8
Oil & Gas 3.7
Multiline Retail 3.6
Software 3.4
Diversified Telecommunication Services 3.3
Metals & Mining 3.2
Communications Equipment 2.9
Wireless Telecommunication Services 2.9
Specialty Retail 2.7
Internet & Catalog Retail 2.5
Food & Drug Retailing 2.3
Air Freight & Couriers 2.1
Trading Companies & Distributors 2.0
Paper & Forest Products 1.8
Household Products 1.7
Insurance 1.7
Commercial Services & Supplies 1.5
Automobiles 1.4
Transportation Infrastructure 1.4
Hotels, Restaurants & Leisure 1.3
Auto Components 1.0
Airlines 0.9
Industrial Conglomerates 0.9
Textiles & Apparel 0.9
Gas Utilities 0.8
Containers & Packaging 0.7
Food Products 0.7
IT Consulting & Catalog Services 0.6
Healthcare Equipment & Supplies 0.5
Household Durables 0.4
Beverages 0.2
-----
105.6
Liabilities in excess of other assets (5.6)
-----
100.0%
-----
-----
See Notes to Financial Statements 7
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Statement of Assets and Liabilities (Unaudited)
April 30, 2003
- -----------------------------------------------------------------------------
ASSETS
Investments, at value, including securities on loan of
$29,801,773 (cost $318,901,420) $ 345,053,105
Foreign currency, at value (cost $8,678,321) 8,931,311
Receivable for investments sold 3,523,143
Dividends and interest receivable 1,124,306
Receivable for Series shares sold 291,562
Foreign tax reclaim receivable 222,037
Receivable for securities lending income 28,208
Other assets 10,990
--------------
Total assets 359,184,662
--------------
LIABILITIES
Payable to custodian 61,321
Payable to broker for collateral for securities on loan 27,884,934
Payable for Series shares reacquired 2,335,726
Payable for investments purchased 1,201,791
Accrued expenses 586,567
Management fee payable 195,981
Withholding taxes payable 118,589
Distribution fee payable 88,888
Securities lending rebate payable 22,115
Payable to securities lending agent 1,523
--------------
Total liabilities 32,497,435
--------------
NET ASSETS $ 326,687,227
--------------
--------------
Net assets were comprised of:
Common stock, at par $ 310,231
Paid-in capital in excess of par 483,354,130
--------------
483,664,361
Net investment loss (91,637)
Accumulated net realized loss on investments and foreign
currency transactions (183,313,189)
Net unrealized appreciation on investments and foreign
currencies 26,427,692
--------------
Net assets, April 30, 2003 $ 326,687,227
--------------
--------------
8 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Statement of Assets and Liabilities (Unaudited) Cont'd.
<Table>
<Caption>
April 30, 2003
- ---------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share ($223,825,635
/ 20,837,664 shares of common stock issued and
outstanding) $10.74
Maximum sales charge (5% of offering price) .57
--------------
Maximum offering price to public $11.31
--------------
--------------
Class B:
Net asset value, offering price and redemption price per
share ($57,764,469 / 5,910,077 shares of common stock
issued and outstanding) $9.77
--------------
--------------
Class C:
Net asset value and redemption price per share ($12,055,165 /
1,236,527 shares of common stock issued and outstanding) $9.75
Sales charge (1% of offering price) .10
--------------
Offering price to public $9.85
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per
share ($33,041,958 / 3,038,815 shares of common stock
issued and outstanding) $10.87
--------------
--------------
</Table>
See Notes to Financial Statements 9
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Statement of Operations (Unaudited)
<Table>
<Caption>
Six Months
Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
NET INVESTMENT LOSS
Income
Dividends (net of foreign withholding taxes of $282,268) $ 2,577,007
Interest 8,704
Income from securities lending (net) 85,952
--------------
Total income 2,671,663
--------------
Expenses
Management fee 1,201,241
Distribution fee--Class A 269,630
Distribution fee--Class B 229,592
Distribution fee--Class C 57,805
Transfer agent's fees and expenses 648,000
Custodian's fees and expenses 145,000
Reports to shareholders 134,000
Registration fees 33,000
Audit fees 19,000
Legal fees 15,000
Directors' fees 5,000
Miscellaneous 6,032
--------------
Total expenses 2,763,300
--------------
Net investment loss (91,637)
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN
CURRENCY TRANSACTIONS
Net realized gain (loss) on:
Investments (13,286,069)
Foreign currency transactions 420,244
--------------
(12,865,825)
--------------
Net change in unrealized appreciation on:
Investments 28,790,152
Foreign currencies 231,520
--------------
29,021,672
--------------
Net gain on investments and foreign currencies 16,155,847
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 16,064,210
--------------
--------------
</Table>
10 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Statement of Changes in Net Assets (Unaudited)
<Table>
<Caption>
Six Months Year
Ended Ended
April 30, 2003 October 31, 2002
- ------------------------------------------------------------------------------------
DECREASE IN NET ASSETS
Operations
Net investment loss $ (91,637) $ (1,396,717)
Net realized loss on investments and foreign
currency transactions (12,865,825) (74,555,483)
Net change in unrealized appreciation on
investments and foreign currencies 29,021,672 3,647,687
-------------- ----------------
Net increase (decrease) in net assets
resulting from operations 16,064,210 (72,304,513)
-------------- ----------------
Series share transactions (net of share
conversions) (Note 6)
Proceeds from shares sold 31,166,392 87,551,827
Cost of shares reacquired (60,256,814) (169,079,854)
-------------- ----------------
Net decrease in net assets from Series share
transactions (29,090,422) (81,528,027)
-------------- ----------------
Total decrease (13,026,212) (153,832,540)
NET ASSETS
Beginning of period 339,713,439 493,545,979
-------------- ----------------
End of period $ 326,687,227 $ 339,713,439
-------------- ----------------
-------------- ----------------
</Table>
See Notes to Financial Statements 11
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited)
Prudential World Fund, Inc. (the 'Fund') is registered under the
Investment Company Act of 1940, as an open-end, diversified management
investment company and currently consists of three series: Prudential Global
Growth Fund (the 'Series'), Prudential International Value Fund and Jennison
International Growth Fund. The financial statements of the other series are not
presented herein. The Series commenced investment operations in May, 1984. The
investment objective of the Series is to seek long-term capital growth, with
income as a secondary objective, by investing in a diversified portfolio of
securities consisting of marketable securities of U.S. and non-U.S. issuers.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Series in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange or
Nasdaq are valued at the last sale price on such exchange or system 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 that are actively traded in the
over-the-counter market, including listed securities for which the primary
market is believed by Prudential Investments LLC ('PI or Manager'), in
consultation with the subadviser, 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 valuation methodology, or provides a valuation methodology that, in
the judgment of the Manager or subadviser, does not represent fair value, are
valued at fair value by a Valuation Committee appointed by the Board of
Directors, in consultation with the Manager or subadviser.
Investments in mutual funds are valued at the net asset value as of the
close of the New York Stock Exchange on the date of valuation.
Short-term securities which mature in more than 60 days are valued based
upon 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 U.S. financial institutions, it is the Series' 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
12
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
collateral is marked-to-market on a daily basis to ensure the adequacy of 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 Series may be delayed or limited.
Foreign Currency Translation: The books and records of the Series 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 Series are presented at the foreign
exchange rates and market values at the close of the period, the Series 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 period end. Similarly, the Series does not
isolate the effect of changes in foreign exchange rates from the fluctuations
arising from changes in the market prices of long-term portfolio securities sold
during the period. Accordingly, these realized foreign currency gains (losses)
are included in the reported net realized gains (losses) on investment
transactions.
Net realized losses on foreign currency transactions represent net foreign
exchange gains or losses from holdings of foreign currencies, currency gains or
losses realized between the trade and settlement dates on security transactions,
and the difference between the amounts of dividends, interest and foreign taxes
recorded on the Series' books and the U.S. dollar equivalent amounts actually
received or paid. Net unrealized currency gains and losses from valuing foreign
currency denominated assets and liabilities (other than investments) at period
end exchange rates are reflected as a component of net unrealized appreciation
on investments and foreign currencies.
Foreign security and currency transactions depreciation and risks not
typically associated with those of domestic origin as a result of, among other
factors, the possibility of political and economic instability and 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 Series 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
13
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
specific receivables and payables denominated in a foreign currency. The
contracts are valued daily at current exchange rates and any unrealized gain or
loss is included in net unrealized appreciation or depreciation on foreign
currencies. Gain or 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 or 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.
Forward currency contacts involve elements of both market and credit risk
in excess of the amounts reflected on the Statement of Assets and Liabilities.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized gains and losses from
investment and currency transactions are calculated on the identified cost
basis. Dividend income is recorded on the ex-dividend date, and interest income
is recorded on an accrual basis. Expenses are recorded on the accrual basis
which may require the use of certain estimates by management.
Net investment income or loss, other than distribution fees, and
unrealized and realized gains or 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 Series expects to pay dividends of net
investment income and distributions of net realized capital and currency gains,
if any, annually. Dividends and distributions are recorded on the ex-dividend
date.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
Taxes: For federal income tax purposes, each series in the Fund is
treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable income 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.
Securities Lending: The Series may lend its portfolio securities to
qualified institutions. The loans are secured by collateral in an amount equal
to at least the market value at all times of the loaned securities plus any
accrued interest and dividends. Loans are subject to termination at the option
of the borrower or the
14
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
Series. Upon termination of the loan, the borrower will return to the Series
securities identical to the loaned securities. The Series may bear the risk of
delay in recovery of, or even loss of rights in, the securities loaned should
the borrower of the securities fail financially. The Series recognizes income,
net of any rebate, for lending its securities in the form of fees or it retains
a portion of interest on the investment of any cash received as collateral. The
Series also continues to receive interest and dividends on the securities loaned
and recognizes any gain or loss in the market price of the securities loaned
that may occur during the term of the loan.
Note 2. Agreements
The Series has a management agreement with PI. Pursuant to this agreement, PI
has responsibility for all investment advisory services and supervises the
subadvisor's performance of such services. PI has entered into a subadvisory
agreement with Jennison Associates LLC ('Jennison'). The subadvisory agreement
provides that Jennison furnish investment advisory services in connection with
the management of the Series. PI pays for the services of Jennison, the cost of
compensation of officers and employees of the Series, occupancy and certain
clerical and bookkeeping costs of the Series. The Series 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 the Series' average daily net assets.
The Series has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS'), which acts as the distributor of the Class A,
B, C and Z shares of the Series. The Series compensates PIMS for distributing
and servicing the Series' Class A, Class B and Class C shares, pursuant to plans
of distribution, (the 'Class A, B and 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 for the Class Z
shares of the Series.
Pursuant to the Class A Plan, the Series compensates PIMS with respect to
Class A shares, for distribution-related activities at an annual rate of up to
..30 of 1% of the average daily net assets of the Class A shares. Pursuant to the
Class B and C Plans, the Series compensates PIMS for distribution-related
activities at the annual rate of .75 of 1% of the average daily net assets of
Class B shares up to the level of average daily net assets as of February 26,
1986, plus 1% of the average daily net assets in excess of such level of the
Class B shares, and 1% of average daily net assets of Class C shares. Payments
made pursuant to the Plans were .25 of 1%, .75 of 1% and 1% of the average daily
net assets of Class A, B and C shares, respectively, for the six months ended
April 30, 2003.
15
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
PIMS has advised the Series that for the six months ended April 30, 2003,
it received approximately $16,400 and $3,400 in front-end sales charges
resulting from sales of Class A and Class C shares, respectively. From these
fees, PIMS paid such sales charges to affiliated broker-dealers, which in turn
paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Series that during the six months ended April 30,
2003, it received approximately $47,300 and $200 in contingent deferred sales
charges imposed upon certain redemptions by Class B and C shareholders,
respectively.
PI, PIMS, and Jennison are indirect, wholly-owned subsidiaries of
Prudential Financial, Inc. ('Prudential').
The Series, 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 quarterly on a pro rata basis by the Funds.
The expiration date of the SCA is May 2, 2003. The Series did not borrow any
amounts pursuant to the SCA during the six months ended April 30, 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.
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 Series' transfer
agent. During the six months ended April 30, 2003, the Series incurred fees of
approximately $425,000 for the services of PMFS. As of April 30, 2003,
approximately $67,800 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations also include certain out-of-pocket
expenses paid to nonaffiliates.
The Series 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 Series
incurred approximately $49,500 in total networking fees, of which the amount
relating to the services of Prudential Securities, Inc. ('PSI'), an affiliate of
PI and an indirect, wholly-owned subsidiary of Prudential, was approximately
$39,500 for the six months ended April 30, 2003. As of April 30, 2003,
approximately $6,300 of such fees were due to PSI. These amounts are included in
transfer agent's fees and expenses in the Statement of Operations.
16
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
PSI is the securities lending agent for the Series. For the six months
ended April 30, 2003, PSI has been compensated approximately $28,700 for these
services of which approximately $1,500 is payable at period end.
The Series invests in the Taxable Money Market Series, a portfolio of
Prudential Core Investment Fund, pursuant to an exemptive order received from
the Securities and Exchange Commission. The Taxable Money Market Series is a
money market mutual fund registered under the Investment Company Act of 1940, as
amended, and managed by PI. For the six months ended April 30, 2003, the Series
earned income from the Taxable Money Market Series of approximately $40,500 and
$286,000 by investing its excess cash and collateral received from securities
lending, respectively.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 2003 were $105,619,521 and $136,021,701,
respectively.
As of April 30, 2003, the Series had securities on loan with an aggregate
market value of $29,801,773. The Fund received $27,884,934 in cash as collateral
for securities on loan which was used to purchase highly liquid short-term
investments in accordance with Series' securities lending procedures.
Note 5. Tax Information
For federal income tax purposes, the Series had a capital loss carryforward at
October 31, 2002, of approximately $168,826,700, of which $95,156,900 expires in
2009 and $73,669,800 expires in 2010. Accordingly, no capital gains distribution
is expected to be paid to shareholders until net gains have been realized in
excess of such carryfoward.
The United States federal income tax basis of the Series' investments and
the net unrealized appreciation as of April 30, 2003 were as follows:
Total Net
Unrealized
Tax Basis Appreciation Depreciation Appreciation
- ------------ ------------ ------------ ------------
$291,393,237 $ 46,040,336 $(21,544,143) $ 24,496,193
The difference between book basis and tax basis is primarily attributable
to the wash sales and other costs basis adjustments.
Note 6. Capital
The Series offers Class A, Class B, Class C and Class Z shares. Class A shares
are sold with a front-end sales charge of up to 5%. Class B shares are sold with
a
17
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
contingent deferred sales charge which declines from 5% to zero depending on 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 periods 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.
There are 500 million authorized shares of $.01 par value common stock,
divided equally into four classes, designated Class A, Class B, Class C and
Class Z common stock.
Transactions in shares of common stock were as follows:
<Table>
<Caption>
Class A Shares Amount
- -------------------------------------------------------- ------------ -------------
Six months ended April 30, 2003:
Shares sold 1,949,161 $ 19,641,240
Shares reacquired (3,717,763) (37,678,622)
------------ -------------
Net decrease in shares outstanding before conversion (1,768,602) (18,037,382)
Shares issued upon conversion from Class B 738,750 7,330,648
------------ -------------
Net decrease in shares outstanding (1,029,852) $ (10,706,734)
------------ -------------
------------ -------------
Year ended October 31, 2002:
Shares sold 4,346,549 $ 52,196,038
Shares reacquired (9,029,142) (107,379,582)
------------ -------------
Net decrease in shares outstanding before conversion (4,682,593) (55,183,544)
Shares issued upon conversion from Class B 1,634,990 19,966,253
------------ -------------
Net decrease in shares outstanding (3,047,603) $ (35,217,291)
------------ -------------
------------ -------------
<Caption>
Class B
- --------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 247,200 $ 2,309,910
Shares reacquired (1,133,610) (10,554,182)
------------ -------------
Net decrease in shares outstanding before conversion (886,410) (8,244,272)
Shares reacquired upon conversion into Class A (810,837) (7,330,648)
------------ -------------
Net decrease in shares outstanding (1,697,247) $ (15,574,920)
------------ -------------
------------ -------------
</Table>
18
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
<Table>
<Caption>
Class B Shares Amount
- -------------------------------------------------------- ------------ -------------
Year ended October 31, 2002:
Shares sold 990,875 $ 11,070,227
Shares reacquired (3,194,031) (33,784,498)
------------ -------------
Net decrease in shares outstanding before conversion (2,203,156) (22,714,271)
Shares reacquired upon conversion into Class A (1,787,584) (19,966,253)
------------ -------------
Net decrease in shares outstanding (3,990,740) $ (42,680,524)
------------ -------------
------------ -------------
<Caption>
Class C
- --------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 148,805 $ 1,375,841
Shares reacquired (255,564) (2,364,259)
------------ -------------
Net decrease in shares outstanding (106,759) $ (988,418)
------------ -------------
------------ -------------
Year ended October 31, 2002:
Shares sold 694,302 $ 7,308,297
Shares reacquired (774,969) (8,266,673)
------------ -------------
Net decrease in shares outstanding (80,667) $ (958,376)
------------ -------------
------------ -------------
<Caption>
Class Z
- --------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 765,090 $ 7,839,401
Shares reacquired (946,298) (9,659,751)
------------ -------------
Net decrease in shares outstanding (181,208) $ (1,820,350)
------------ -------------
------------ -------------
Year ended October 31, 2002:
Shares sold 1,442,935 $ 16,977,265
Shares reacquired (1,667,949) (19,649,101)
------------ -------------
Net decrease in shares outstanding (225,014) $ (2,671,836)
------------ -------------
------------ -------------
</Table>
19
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited)
<Table>
<Caption>
Class A
----------------
Six Months Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE(a):
Net asset value, beginning of period $ 10.21
----------------
Income from investment operations
Net investment income (loss) --(c)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .53
----------------
Total from investment operations .53
----------------
Less distributions
Distributions in excess of net investment income --
Distributions from net realized capital gains --
----------------
Total distributions --
----------------
Net asset value, end of period $ 10.74
----------------
----------------
TOTAL RETURN(b): 5.19%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $223,826
Average net assets (000) $217,492
Ratios to average net assets:
Expenses, including distribution and service (12b-1
fees)(f) 1.64%(d)
Expenses, excluding distribution and service (12b-1 fees) 1.39%(d)
Net investment income (loss) .04%(d)
For Class A, B, C and Z shares:
Portfolio turnover rate(e) 34%
</Table>
- ------------------------------
(a) Based on average shares outstanding.
(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 periods of less than a full year are not
annualized.
(c) Less than $.005 per share.
(d) Annualized.
(e) Not annualized for periods of less than one full year.
(f) The distributor of the Series has contractually agreed to reduce its
distribution and service (12b-1) for Class A shares to .25 of 1% of the
average net assets of Class A shares.
20 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class A
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 12.23 $ 21.35 $ 21.19 $ 16.16 $ 17.27
- ---------------- ---------------- ---------------- ---------------- ----------------
(.01) .01 (.09) (.05) (.02)
(2.01) (5.83) 2.25 5.82 .82
- ---------------- ---------------- ---------------- ---------------- ----------------
(2.02) (5.82) 2.16 5.77 .80
- ---------------- ---------------- ---------------- ---------------- ----------------
-- -- (.19) (.14) (.11)
-- (3.30) (1.81) (.60) (1.80)
- ---------------- ---------------- ---------------- ---------------- ----------------
-- (3.30) (2.00) (.74) (1.91)
- ---------------- ---------------- ---------------- ---------------- ----------------
$ 10.21 $ 12.23 $ 21.35 $ 21.19 $ 16.16
- ---------------- ---------------- ---------------- ---------------- ----------------
- ---------------- ---------------- ---------------- ---------------- ----------------
(16.52)% (30.87)% 9.80% 36.83% 5.71%
$223,191 $304,777 $396,870 $339,620 $251,018
$284,046 $353,879 $415,035 $298,009 $260,774
1.46% 1.37% 1.27% 1.32% 1.38%
1.21% 1.12% 1.02% 1.07% 1.13%
(.18)% .06% (.38)% (.27)% (.14)%
67% 72% 82% 59% 61%
</Table>
See Notes to Financial Statements 21
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
----------------
Six Months Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE(a):
Net asset value, beginning of period $ 9.31
--------
Income from investment operations
Net investment loss (.02)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .48
--------
Total from investment operations .46
--------
Less distributions
Distributions in excess of net investment income --
Distributions from net realized capital gains --
--------
Total distributions --
--------
Net asset value, end of period $ 9.77
--------
--------
TOTAL RETURN(b): 4.94%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 57,764
Average net assets (000) $ 61,732
Ratios to average net assets:
Expenses, including distribution and service (12b-1 fees) 2.14%(c)
Expenses, excluding distribution and service (12b-1 fees) 1.39%(c)
Net investment loss (.45)%(c)
</Table>
- ------------------------------
(a) Based on average shares outstanding.
(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 periods of less than a full year are not
annualized.
(c) Annualized.
22 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 11.23 $ 20.00 $ 19.98 $ 15.26 $ 16.42
- ---------------- ---------------- ---------------- ---------------- ----------------
(.08) (.08) (.24) (.17) (.13)
(1.84) (5.39) 2.12 5.51 .78
- ---------------- ---------------- ---------------- ---------------- ----------------
(1.92) (5.47) 1.88 5.34 .65
- ---------------- ---------------- ---------------- ---------------- ----------------
-- -- (.05) (.02) (.01)
-- (3.30) (1.81) (.60) (1.80)
- ---------------- ---------------- ---------------- ---------------- ----------------
-- (3.30) (1.86) (.62) (1.81)
- ---------------- ---------------- ---------------- ---------------- ----------------
$ 9.31 $ 11.23 $ 20.00 $ 19.98 $ 15.26
- ---------------- ---------------- ---------------- ---------------- ----------------
- ---------------- ---------------- ---------------- ---------------- ----------------
(17.10)% (31.27)% 8.94% 36.00% 4.95%
$ 70,804 $130,201 $288,418 $310,458 $274,248
$109,004 $195,461 $355,100 $297,322 $312,569
2.00% 2.00% 1.96% 1.99% 2.06%
1.21% 1.12% 1.02% 1.07% 1.13%
(.73)% (.58)% (1.07)% (.96)% (.82)%
</Table>
See Notes to Financial Statements 23
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
----------------
Six Months Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE(a):
Net asset value, beginning of period $ 9.30
--------
Income from investment operations
Net investment income loss (.03)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .48
--------
Total from investment operations .45
--------
Less distributions
Distributions in excess of net investment income --
Distributions from net realized capital gains --
--------
Total distributions --
--------
Net asset value, end of period $ 9.75
--------
--------
TOTAL RETURN(b): 4.84%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 12,055
Average net assets (000) $ 11,657
Ratios to average net assets:
Expenses, including distribution and service (12b-1 fees) 2.39%(d)
Expenses, excluding distribution and service (12b-1 fees) 1.39%(d)
Net investment loss (.72)%(d)
</Table>
- ------------------------------
(a) Based on average shares outstanding.
(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 periods of less than a full year are not
annualized.
(c) Distribution in excess of net investment income was $.001.
(d) Annualized.
24 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 11.24 $ 19.99 $ 19.97 $ 15.25 $ 16.41
-------- -------- -------- -------- --------
(.10) (.09) (.24) (.18) (.14)
(1.84) (5.36) 2.11 5.51 .78
-------- -------- -------- -------- --------
(1.94) (5.45) 1.87 5.33 .64
-------- -------- -------- -------- --------
-- -- (.04) (.01) --(c)
-- (3.30) (1.81) (.60) (1.80)
-------- -------- -------- -------- --------
-- (3.30) (1.85) (.61) (1.80)
-------- -------- -------- -------- --------
$ 9.30 $ 11.24 $ 19.99 $ 19.97 $ 15.25
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
(17.26)% (31.17)% 8.89% 35.94% 4.90%
$ 12,490 $ 16,006 $ 21,377 $ 14,184 $ 10,698
$ 14,897 $ 18,330 $ 18,886 $ 11,866 $ 10,286
2.21% 2.12% 2.02% 2.07% 2.13%
1.21% 1.12% 1.02% 1.07% 1.13%
(.92)% (.68)% (1.11)% (1.02)% (.90)%
</Table>
See Notes to Financial Statements 25
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
----------------
Six Months Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE(a):
Net asset value, beginning of period $ 10.32
--------
Income from investment operations
Net investment income (loss) .01
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .54
--------
Total from investment operations .55
--------
Less distributions
Distributions in excess of net investment income --
Distributions from net realized capital gains --
--------
Total distributions --
--------
Net asset value, end of period $ 10.87
--------
--------
TOTAL RETURN(b): 5.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 33,042
Average net assets (000) $ 32,105
Ratios to average net assets:
Expenses, including distribution and service (12b-1 fees) 1.39%(c)
Expenses, excluding distribution and service (12b-1 fees) 1.39%(c)
Net investment income (loss) .28%(c)
</Table>
- ------------------------------
(a) Based on average shares outstanding.
(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 periods of less than a full year are not
annualized.
(c) Annualized.
26 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Global Growth Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 12.35 $ 21.46 $ 21.29 $ 16.23 $ 17.35
-------- -------- -------- -------- --------
.01 .05 (.02) -- .02
(2.04) (5.86) 2.23 5.84 .82
-------- -------- -------- -------- --------
(2.03) (5.81) 2.21 5.84 .84
-------- -------- -------- -------- --------
-- -- (.23) (.18) (.16)
-- (3.30) (1.81) (.60) (1.80)
-------- -------- -------- -------- --------
-- (3.30) (2.04) (.78) (1.96)
-------- -------- -------- -------- --------
$ 10.32 $ 12.35 $ 21.46 $ 21.29 $ 16.23
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
(16.50)% (30.57)% 9.97% 37.25% 5.97%
$ 33,228 $ 42,562 $ 70,956 $ 48,430 $ 36,338
$ 40,960 $ 54,387 $ 77,989 $ 42,312 $ 41,799
1.21% 1.12% 1.02% 1.07% 1.13%
1.21% 1.12% 1.02% 1.07% 1.13%
.08% .32% (.08)% (.02)% .12%
</Table>
See Notes to Financial Statements 27
This Page Intentionally Left Blank
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
Jennison Associates LLC
466 Lexington Avenue
New York, NY 10017
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 PRGAX 743969107
Class B PRGLX 743969206
Class C PRGCX 743969305
Class Z PWGZX 743969404
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.
(LOGO)
Fund Symbols Nasdaq CUSIP
Class A PRGAX 743969107
Class B PRGLX 743969206
Class C PRGCX 743969305
Class Z PWGZX 743969404
MF115E2 IFS-A080885
<Page>
SEMIANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
INTERNATIONAL VALUE FUND
FUND TYPE
International 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)
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Performance at a Glance
FUND OBJECTIVE
The investment objective of the Prudential
International Value 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
<Table>
<Caption>
Six Months One Year Five Years Ten Years Since Inception2
Class A -2.29% -21.16% -23.54% N/A 2.19%
Class B -2.63 -21.75 -26.44 N/A -2.88
Class C -2.69 -21.78 -26.39 N/A -2.81
Class Z -2.20 -21.04 -22.68 54.58% 81.83
MSCI EAFE(R) Index3 1.81 -16.27 -24.73 21.72 ***
Lipper International Funds Avg.4 0.92 -17.88 -23.62 42.34 ****
</Table>
Average Annual Total Returns1 As of 3/31/03
<Table>
<Caption>
One Year Five Years Ten Years Since Inception2
Class A -31.78% -7.87% N/A -2.06%
Class B -32.27 -7.79 N/A -2.04
Class C -30.11 -7.80 N/A -2.18
Class Z -28.00 -6.70 3.71% 4.85
MSCI EAFE(R) Index3 -23.59 -7.13 1.96 ***
Lipper International Funds Avg.4 -24.60 -6.93 2.94 ****
</Table>
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 and Lipper Inc. 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, B, and C, 9/23/96; Class Z, 11/5/92.
3The Morgan Stanley Capital International (MSCI)
EAFE(R) Index is an unmanaged, weighted index of
performance that reflects stock price movements in
Europe, Australasia, and the Far East. 4The Lipper
International Funds Average (Lipper Average)
represents returns based on an average return of all
funds in the Lipper International Funds category.
Funds in
<Page>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2003
he Lipper Average invest their assets in securities
with primary trading markets outside the United
States. Investors cannot invest directly in an index.
The returns for the MSCI EAFE(R) Index 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
EAFE(R) Index Since Inception cumulative total returns
as of 4/30/03 are -10.01% for Class A, B, and C, and
51.43% for Class Z. MSCI EAFE(R) Index Since Inception
average annual total returns as of 3/31/03 are -3.02%
for Class A, B, and C, and 3.13% for Class Z.
****Lipper Average Since Inception cumulative total
returns as of 4/30/03 are -1.46% for Class A, B, and
C, and 68.99% for Class Z. Lipper Average Since
Inception average annual total returns as of 3/31/03
are -1.94% for Class A, B, and C, and 4.00% for Class Z.
1
<Page>
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 World 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 World Fund, Inc./Prudential International Value Fund
2
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited)
<Table>
<Caption>
Shares Description Value (Note 1)
- -----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 97.2%
Common Stocks
- -------------------------------------------------------------------------------------
Australia 2.8%
393,198 Foster's Group, Ltd. $ 1,101,923
146,549 National Australia Bank, Ltd. 2,979,396
393,909 News Corp., Ltd. 2,804,144
267,177 Westpac Banking Corp., Ltd. 2,659,080
--------------
9,544,543
- -------------------------------------------------------------------------------------
Finland 1.6%
325,965 Nokia Oyj 5,514,861
- -------------------------------------------------------------------------------------
France 8.5%
184,809 Aventis SA 9,386,297
329,636 AXA 5,006,764
43,272 Lafarge SA 2,907,153
91,923 Total SA 12,053,868
--------------
29,354,082
- -------------------------------------------------------------------------------------
Germany 6.0%
132,613 Bayer AG 2,419,737
177,350 Bayerische Motoren Werke (BMW) AG 5,911,951
67,817 Deutsche Bank AG 3,507,187
189,299 E.ON AG 9,060,846
--------------
20,899,721
- -------------------------------------------------------------------------------------
Hong Kong 2.8%
477,000 Cheung Kong Holdings, Ltd. 2,636,052
385,000 Hong Kong Electric Holdings, Ltd. 1,554,997
12,010,000 PetroChina Co., Ltd. (Class H) 2,741,077
365,000 Sun Hung Kai Properties, Ltd. 1,712,901
271,500 Swire Pacific, Ltd. (Class A) 1,072,208
--------------
9,717,235
- -------------------------------------------------------------------------------------
Ireland 0.7%
153,858 CRH PLC 2,362,669
</Table>
See Notes to Financial Statements 3
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- -----------------------------------------------------------------------------------------
Italy 3.9%
505,204 Eni SpA $ 7,199,827
788,183 Telecom Italia SpA 6,438,764
--------------
13,638,591
- -------------------------------------------------------------------------------------
Japan 13.4%
42,810 Acom Co., Ltd. 1,202,528
325,000 Canon, Inc. 13,135,167
160,000 Fuji Photo Film Co., Ltd. 4,078,484
136,200 Honda Motor Co., Ltd. 4,511,068
62,000 Hoya Corp. 3,665,101
40,300 Nintendo Co., Ltd. 3,149,388
1,466 Nippon Telegraph and Telephone Corp. 5,138,253
1,393 NTT DoCoMo, Inc. 2,873,369
22,200 Rohm Co., Ltd. 2,287,758
21,200 SMC Corp. 1,596,311
20,000 SONY Corp. 486,332
119,600 Takeda Chemical Industries, Ltd. 4,382,458
--------------
46,506,217
- -------------------------------------------------------------------------------------
Netherlands 9.5%
438,572 ABN AMRO Holdings N.V. 7,410,221
52,612 Heineken N.V. 1,953,448
513,386 ING Groep N.V. 8,336,262
323,887 Koninklijke (Royal) Philips Electronics N.V. 6,025,505
346,002 Koninklijke Ahold N.V. 1,583,167
331,428 Reed Elsevier N.V. 3,772,713
118,488 TPG N.V. 1,848,613
65,501 VNU N.V. 1,900,578
--------------
32,830,507
- -------------------------------------------------------------------------------------
Portugal 0.1%
109,152 Electricidade de Portugal SA 197,338
- -------------------------------------------------------------------------------------
South Korea 1.9%
31,100 Kookmin Bank (ADR) 856,805
63,900 POSCO (ADR) 1,313,145
</Table>
4 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- -----------------------------------------------------------------------------------------
36,098 Samsung Electronics Co., Ltd. (GDR) $ 4,512,250
--------------
6,682,200
- -------------------------------------------------------------------------------------
Spain 4.1%
882,475 Banco Santander Central Hispano SA 6,933,291
653,392 Telefonica SA 7,226,228
--------------
14,159,519
- -------------------------------------------------------------------------------------
Switzerland 12.7%
63,365 Nestle SA 12,917,808
200,373 Novartis AG 7,903,823
88,089 Roche Holdings AG 5,605,014
120,675 Swiss Re 7,883,068
204,284 UBS AG 9,692,306
--------------
44,002,019
- -------------------------------------------------------------------------------------
United Kingdom 29.2%
1,469,952 Barclays PLC 10,155,074
877,149 BP PLC 5,558,550
307,993 British America Tobacco PLC 2,953,500
862,344 Cadbury Schweppes PLC 4,803,174
85,721 Centrica PLC 227,769
654,255 Compass Group PLC 3,011,511
844,949 Diageo PLC 9,372,057
523,506 GlaxoSmithKline PLC 10,492,142
660,485 Hilton Group PLC 1,615,100
493,971 HSBC Holdings PLC 5,411,951
435,947 Kingfisher PLC 1,703,560
892,971 Lloyds TSB Group PLC 5,872,894
568,290 Prudential PLC 3,478,674
1,083,336 Shell Transport & Trading Co. PLC 6,488,581
228,816 Smith & Nephew PLC (ADR) 1,525,906
109,370 Smiths Group PLC 1,169,417
1,109,965 Tesco PLC 3,512,525
1,001,988 Unilever PLC 9,848,783
4,981,792 Vodafone Group PLC 9,833,259
</Table>
See Notes to Financial Statements 5
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- -----------------------------------------------------------------------------------------
214,406 Wolseley PLC $ 2,073,181
243,389 WPP Group PLC 1,732,008
--------------
100,839,616
--------------
Total long-term investments (cost $415,443,491) 336,249,118
--------------
SHORT-TERM INVESTMENT 1.1%
<Caption>
Principal
Amount
(000)
- -----------------------------------------------------------------------------------------
Repurchase Agreement
$ 3,997 Joint Repurchase Agreement Account,
1.356%, 5/1/03
(cost $3,997,000; Note 6) 3,997,000
--------------
Total Investments 98.3%
(cost $419,440,491; Note 5) 340,246,118
Other assets in excess of liabilities 1.7% 5,779,954
--------------
Net Assets 100% $ 346,026,072
--------------
--------------
</Table>
- ------------------------------
(a) Non-income producing security.
ADR--American Depository Receipt.
GDR--Global Depository Receipt.
6 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
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:
<Table>
Banks..................................................................... 16.0%
Drugs & Healthcare........................................................ 11.4
Telecommunications........................................................ 10.7
Oil & Gas Services........................................................ 9.8
Electronics............................................................... 9.6
Food Products & Services.................................................. 9.4
Insurance................................................................. 4.7
Beverages................................................................. 3.6
Utilities................................................................. 3.2
Financial Services........................................................ 3.1
Automotive................................................................ 3.0
Media..................................................................... 3.0
Leisure................................................................... 2.5
Building Products......................................................... 1.5
Real Estate............................................................... 1.3
Tobacco................................................................... 0.9
Diversified Manufacturing................................................. 0.8
Chemicals................................................................. 0.7
Distribution/Wholesale.................................................... 0.6
Transport Services........................................................ 0.5
Retail.................................................................... 0.5
Steel & Metals............................................................ 0.4
Repurchase Agreement...................................................... 1.1
-----
98.3
Other assets in excess of liabilities..................................... 1.7
-----
100.0%
-----
-----
</Table>
See Notes to Financial Statements 7
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Statement of Assets and Liabilities (Unaudited)
<Table>
<Caption>
April 30, 2003
- ----------------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $419,440,491) $ 340,246,118
Foreign currency, at value (cost $2,195,808) 2,245,256
Cash 832
Dividends and interest receivable 2,239,300
Receivable for investments sold 1,697,596
Foreign tax reclaim receivable 693,860
Receivable for Series shares sold 168,873
Other assets 3,579
--------------
Total assets 347,295,414
--------------
LIABILITIES
Payable for investments purchased 469,836
Management fee payable 270,938
Withholding taxes payable 251,295
Accrued expenses 238,808
Distribution fee payable 38,465
--------------
Total liabilities 1,269,342
--------------
NET ASSETS $ 346,026,072
--------------
--------------
Net assets were comprised of:
Common stock, at par $ 252,077
Paid-in capital in excess of par 482,610,943
--------------
482,863,020
Undistributed net investment income 1,752,101
Accumulated net realized loss on investments and foreign
currency transactions (59,543,162)
Net unrealized depreciation on investments and foreign
currencies (79,045,887)
--------------
Net assets, April 30, 2003 $ 346,026,072
--------------
--------------
</Table>
8 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Statement of Assets and Liabilities (Unaudited) Cont'd.
<Table>
<Caption>
April 30, 2003
- ----------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share
($39,723,724 / 2,896,341 shares of common stock issued and
outstanding) $13.72
Maximum sales charge (5% of offering price) .72
--------------
Maximum offering price to public $14.44
--------------
--------------
Class B:
Net asset value, offering price and redemption price per share
($32,039,181 / 2,400,200 shares of common stock issued and
outstanding) $13.35
--------------
--------------
Class C:
Net asset value and redemption price per share
($6,643,258 / 497,170 shares of common stock issued and
outstanding) $13.36
Sales charge (1% of offering price) .13
--------------
Offering price to public $13.49
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per share
($267,619,909 / 19,414,036 shares of common stock issued
and outstanding) $13.78
--------------
--------------
</Table>
See Notes to Financial Statements 9
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Statement of Operations (Unaudited)
<Table>
<Caption>
Six Months
Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Income
Dividends (net of foreign withholding taxes of $637,385) $ 4,686,556
Interest 11,902
--------------
Total income 4,698,458
--------------
Expenses
Management fee 1,665,097
Distribution fee--Class A 47,437
Distribution fee--Class B 167,301
Distribution fee--Class C 34,053
Transfer agent's fees and expenses 441,000
Custodian's fees and expenses 200,000
Reports to shareholders 97,000
Registration fees 40,000
Audit fee 20,000
Legal fees 16,000
Directors' fees 6,000
Miscellaneous 8,860
--------------
Total expenses 2,742,748
--------------
Net investment income 1,955,710
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENT AND FOREIGN
CURRENCY TRANSACTIONS
Net realized loss on:
Investment transactions (16,344,429)
Foreign currency transactions (53,349)
--------------
(16,397,778)
--------------
Net change in unrealized appreciation (depreciation) on:
Investments 6,918,238
Foreign currencies 114,468
--------------
7,032,706
--------------
Net loss on investments and foreign currencies (9,365,072)
--------------
NET DECREASE IN NET ASSETS RESULTING FROM OPERATIONS $ (7,409,362)
--------------
--------------
</Table>
10 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Statement of Changes in Net Assets (Unaudited)
<Table>
<Caption>
Six Months Year
Ended Ended
April 30, 2003 October 31, 2002
- ------------------------------------------------------------------------------------
DECREASE IN NET ASSETS
Operations
Net investment income $ 1,955,710 $ 2,116,150
Net realized loss on investment and foreign
currency transactions (16,397,778) (40,887,219)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currencies 7,032,706 (18,606,126)
-------------- ----------------
Net decrease in net assets resulting from
operations (7,409,362) (57,377,195)
-------------- ----------------
Dividends and distributions (Note 1)
Dividends from net investment income
Class A (107,003) --
Class B -- --
Class C -- --
Class Z (1,514,375) (466,174)
-------------- ----------------
(1,621,378) (466,174)
-------------- ----------------
Distributions from net realized capital
gains
Class A -- (2,397,272)
Class B -- (2,425,149)
Class C -- (495,578)
Class Z -- (13,929,255)
-------------- ----------------
-- (19,247,254)
-------------- ----------------
Series share transactions (net of share
conversions)
(Note 7)
Net proceeds from shares sold 91,243,399 796,892,186
Net asset value of shares issued in
reinvestment of dividends and
distributions 1,610,139 19,394,241
Cost of shares reacquired (93,919,541) (809,545,413)
-------------- ----------------
Net increase (decrease) in net assets from
Series share transactions (1,066,003) 6,741,014
-------------- ----------------
Total decrease (10,096,743) (70,349,609)
NET ASSETS
Beginning of period 356,122,815 426,472,424
-------------- ----------------
End of period(a) $ 346,026,072 $ 356,122,815
-------------- ----------------
-------------- ----------------
- ------------------------------
(a) Includes undistributed net investment
income of: $ 1,752,101 $ 1,417,769
-------------- ----------------
-------------- ----------------
</Table>
See Notes to Financial Statements 11
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited)
Prudential World Fund, Inc. (the 'Fund') is registered under the
Investment Company Act of 1940, as an open-end, diversified management
investment company and currently consists of three series: Prudential
International Value Fund (the 'Series'), Prudential Global Growth Fund, and the
Prudential Jennison International Growth Fund. These financial statements relate
to Prudential International Value Fund. The financial statements of the other
Series are not presented herein. The investment objective of the Series is to
achieve long-term growth of capital. Income is a secondary objective. The Series
seeks to achieve its objective primarily through investment in common stock and
preferred stock of foreign companies of all sizes.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund and the Series in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange 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 listed securities for which the primary market is believed by
Prudential Investments LLC ('PI' or 'Manager'), in consultation with the
subadviser, 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
valuation methodology, or provides a valuation methodology that, in the judgment
of the Manager or subadviser, does not represent fair value, are valued at fair
value by a Valuation Committee appointed by the Board of Directors, in
consultation with the Manager or 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 U.S. financial institutions, it is the Fund's policy that its
custodian or designated subcustodians, as the case may be under triparty
repurchase agreements, take possession of the underlying 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
12
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
collateral is marked-to-market on a daily basis to maintain the accuracy of 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 Series may be delayed or limited.
Foreign Currency Translation: The books and records of the Series 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 closing 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 Series are presented at the foreign
exchange rates and market values at the close of the period, the Series 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 Series
does not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of long-term 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 holdings of foreign currencies, currency
gains (losses) realized between the trade and settlement dates on security
transactions, and the difference between the amounts of dividends, interest and
foreign taxes recorded on the Series' books and the U.S. dollar equivalent
amounts actually received or paid. Net unrealized 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 net
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 and 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 Series enters into forward currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings or an
13
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
specific receivables and payables denominated in a foreign currency. The
contracts are valued daily at current exchange rates and any unrealized gain or
loss is included in net unrealized appreciation or depreciation on foreign
currencies. Gain or 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 or 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.
Forward currency contracts involve elements of both market and credit risk
in excess of the amounts reflected on the Statement of Assets and Liabilities.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized gains (losses) on sales of
securities are calculated on the identified cost basis. Dividend income is
recorded on the ex-dividend date; interest income 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 Series 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.
Taxes: For federal income tax purposes, each series in the Fund is
treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable net
investment income to shareholders. For this reason, no federal income tax
provision is required.
Withholding taxes on foreign dividends have been provided for in
accordance with the Series' understanding of the applicable country's tax rules
and rates. Withholding taxes are recorded, net of reclaimable amounts, at the
time the related income is earned.
Note 2. Agreements
The Fund has a management agreement with PI. Pursuant to this agreement, PI has
responsibility for all investment advisory services and supervises the
subadviser's performance of such services. PI has a subadvisory agreement with
Bank of Ireland
14
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
Asset Management. PI pays for the services of the subadviser, the compensation
of officers and employees 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 PI is computed daily and payable monthly at an
annual rate of 1% of the average daily net assets up to $300 million and .95 of
1% of average daily net assets in excess of $300 million of the Series.
The Series 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 Series. The Series compensates PIMS
for distributing and servicing the Series' Class A, Class B and Class C shares,
pursuant to plans of distribution (the 'Class A, B and C Plans'), regardless of
expenses actually incurred by PIMS. 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 Series.
Pursuant to the Class A, B and C Plans, the Series 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 Plans were .25 of 1%, 1% and 1% of the average daily net
assets of the Class A, B and C shares respectively, for the six months ended
April 30, 2003.
PIMS has advised the Series that they received approximately $4,700 and
$800 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 affiliated broker-dealers, which in turn
paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Series that for the six months ended April 30, 2003,
it received approximately $31,500 and $3,800 in contingent deferred sales
charges imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PI and PIMS are indirect, wholly-owned subsidiaries of Prudential
Financial, Inc. ('Prudential').
The Series, 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 quarterly on a pro rata basis by the Funds.
The purpose of the SCA is to serve as an alternative source of funding for
capital share redemptions. The expiration date of the SCA was May 2, 2003. The
Series did not borrow any amounts pursuant to the
15
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
SCA during the six months ended April 30, 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.
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 and
during the six months ended April 30, 2003, the Series incurred fees of
approximately $404,000 for the services of PMFS. As of April 30, 2003,
approximately $65,500 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to nonaffiliates.
The Series 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 Series
incurred approximately $28,100 in total networking fees, of which the amount
relating to the services of Prudential Securities, Inc. ('PSI'), an affiliate of
PI and an indirect, wholly-owned subsidiary of Prudential, was approximately
$17,100 for the six months ended April 30, 2003. As of April 30, 2003,
approximately $2,700 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 aggregated $18,765,482 and $25,062,087,
respectively.
Note 5. Tax Information
For federal income tax purposes, the Series had a capital loss carryforward as
of October 31, 2002 of approximately $34,787,000 which 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.
The United States federal income tax basis of the Series' investments and
the net unrealized depreciation as of April 30, 2003 were as follows:
<Table>
<Caption>
Total Net
Unrealized
Tax Basis Appreciation Depreciation Depreciation
- -------------- ------------- --------------- ------------- ---
$427,798,943 $9,714,634 $97,267,459 $87,552,825
</Table>
The difference between book basis and tax basis was attributable to
deferred losses on wash sales.
16
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 6. Joint Repurchase Agreement Account
The Fund, along with other affiliated registered investment companies, transfers
uninvested cash balances 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 Series
had a 1.59% undivided interest in the repurchase agreements in the joint
account. The undivided interest for the Series represents $3,997,000 in the
principal amount. As of such date, each repurchase agreement in the joint
account and the collateral therefore 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 7. Capital
The Series offers Class A, Class B, Class C and Class Z shares. Class A shares
are sold with a front-end 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 on 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 qualified 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.
There are 500 million authorized shares of $.01 par value common stock,
divided equally into four classes, designated Class A, Class B, Class C and
Class Z common stock.
17
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
Transactions in shares of common stock were as follows:
<Table>
<Caption>
Class A Shares Amount
- -------------------------------------------------------- ----------- ---------------
Six months ended April 30, 2003:
Shares sold 1,670,943 $ 22,302,906
Shares issued in reinvestment of dividends and
distributions 7,343 103,529
Shares reacquired (1,755,096) (23,671,282)
----------- ---------------
Net increase (decrease) in shares outstanding before
conversion (76,810) (1,264,847)
Shares issued upon conversion from Class B 59,437 767,942
----------- ---------------
Net increase (decrease) in shares outstanding (17,373) $ (496,905)
----------- ---------------
----------- ---------------
Year ended October 31, 2002:
Shares sold 4,664,376 $ 75,081,728
Shares issued in reinvestment of dividends and
distributions 127,760 2,220,484
Shares reacquired (5,072,529) (82,501,605)
----------- ---------------
Net increase (decrease) in shares outstanding before
conversion (280,393) (5,199,393)
Shares issued upon conversion from Class B 113,009 1,807,034
----------- ---------------
Net increase (decrease) in shares outstanding (167,384) $ (3,392,359)
----------- ---------------
----------- ---------------
<Caption>
Class B
- --------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 151,978 $ 1,969,206
Shares reacquired (435,756) (5,678,433)
----------- ---------------
Net increase (decrease) in shares outstanding before
conversion (283,778) (3,709,227)
Shares reacquired upon conversion into Class A (60,971) (767,942)
----------- ---------------
Net increase (decrease) in shares outstanding (344,749) $ (4,477,169)
----------- ---------------
----------- ---------------
Year ended October 31, 2002:
Shares sold 435,761 $ 6,815,124
Shares issued in reinvestment of dividends and
distributions 136,035 2,319,402
Shares reacquired (985,799) (15,343,842)
----------- ---------------
Net increase (decrease) in shares outstanding before
conversion (414,003) (6,209,316)
Shares reacquired upon conversion into Class A (115,606) (1,807,034)
----------- ---------------
Net increase (decrease) in shares outstanding (529,609) $ (8,016,350)
----------- ---------------
----------- ---------------
</Table>
18
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
<Table>
<Caption>
Class C Shares Amount
- -------------------------------------------------------- ----------- ---------------
Six months ended April 30, 2003:
Shares sold 296,380 $ 3,874,948
Shares reacquired (371,100) (4,867,094)
----------- ---------------
Net increase (decrease) in shares outstanding (74,720) $ (992,146)
----------- ---------------
----------- ---------------
Year ended October 31, 2002:
Shares sold 487,499 $ 7,181,876
Shares issued in reinvestment of dividends and
distributions 28,277 482,684
Shares reacquired (608,755) (9,226,588)
----------- ---------------
Net increase (decrease) in shares outstanding (92,979) $ (1,562,028)
----------- ---------------
----------- ---------------
<Caption>
Class Z
- --------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 4,710,287 $ 63,096,339
Shares issued in reinvestment of dividends and
distributions 106,399 1,506,610
Shares reacquired (4,432,046) (59,702,732)
----------- ---------------
Net increase (decrease) in shares outstanding 384,640 $ 4,900,217
----------- ---------------
----------- ---------------
Year ended October 31, 2002:
Shares sold 42,669,909 $ 707,813,458
Shares issued in reinvestment of dividends and
distributions 823,591 14,371,671
Shares reacquired (42,079,768) (702,473,378)
----------- ---------------
Net increase (decrease) in shares outstanding 1,413,732 $ 19,711,751
----------- ---------------
----------- ---------------
</Table>
19
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited)
<Table>
<Caption>
Class A
-------------------
Six Months Ended
April 30, 2003(b)
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 14.08
--------
Income from investment operations:
Net investment income .07
Net realized and unrealized gain (loss) on investment and
foreign currency transactions (.39)
--------
Total from investment operations (.32)
--------
Less distributions:
Dividends from net investment income (.04)
Distributions from net realized capital gains --
--------
Total distributions (.04)
--------
Net asset value, end of period $ 13.72
--------
--------
TOTAL RETURN(a) (2.29)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $39,724
Average net assets (000) $38,264
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees(c) 1.74%(d)
Expenses, excluding distribution and service (12b-1)
fees 1.49%(d)
Net investment income 1.06%(d)
For Class A, B, C and Z shares:
Portfolio turnover rate(e) 6%
</Table>
- ------------------------------
(a) Total return does not consider the effect 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 periods of less than one full year are not
annualized.
(b) Calculated based upon average shares outstanding during the period.
(c) The distributor of the Series contractually agreed to limit its distribution
and services (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
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class A
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(b) 2001 2000(b) 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 17.29 $ 22.08 $ 22.42 $ 18.33 $ 18.24
-------- -------- -------- -------- --------
.07 .13 .19 .27 .27
(2.53) (4.01) .71 3.97 .40
-------- -------- -------- -------- --------
(2.46) (3.88) .90 4.24 .67
-------- -------- -------- -------- --------
-- -- (.17) (.15) (.18)
(.75) (.91) (1.07) -- (.40)
-------- -------- -------- -------- --------
(.75) (.91) (1.24) (.15) (.58)
-------- -------- -------- -------- --------
$ 14.08 $ 17.29 $ 22.08 $ 22.42 $ 18.33
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
(15.07)% (18.25)% 3.92% 23.30% 3.85%
$ 41,011 $ 53,269 $ 72,185 $ 61,036 $ 47,237
$ 49,279 $ 63,061 $ 67,362 $ 52,732 $ 44,708
1.64% 1.60% 1.52% 1.61% 1.62%
1.39% 1.35% 1.27% 1.36% 1.37%
.42% .62% .84% 1.35% 1.28%
35% 115% 33% 21% 15%
</Table>
See Notes to Financial Statements 21
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
-------------------
Six Months Ended
April 30, 2003(b)
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 13.71
--------
Income from investment operations:
Net investment income (loss) .02
Net realized and unrealized gain (loss) on investment and
foreign currency transactions (.38)
--------
Total from investment operations (.36)
--------
Less distributions:
Dividends from net investment income --
Distributions from net realized capital gains --
--------
Total distributions --
--------
Net asset value, end of period $ 13.35
--------
--------
TOTAL RETURN(a): (2.63)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $32,039
Average net assets (000) $33,737
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 2.49%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.49%(c)
Net investment income (loss) .23%(c)
</Table>
- ------------------------------
(a) Total return does not consider the effect 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 periods of less than one full year are not
annualized.
(b) Calculated based upon average shares outstanding during the period.
(c) Annualized.
22 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(b) 2001 2000(b) 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 16.99 $ 21.88 $ 22.23 $ 18.18 $ 18.13
-------- -------- -------- ---------------- --------
(.05) (.03) .02 .12 .10
(2.48) (3.95) .71 3.94 .43
-------- -------- -------- ---------------- --------
(2.53) (3.98) .73 4.06 .53
-------- -------- -------- ---------------- --------
-- -- (.01) (.01) (.08)
(.75) (.91) (1.07) -- (.40)
-------- -------- -------- ---------------- --------
(.75) (.91) (1.08) (.01) (.48)
-------- -------- -------- ---------------- --------
$ 13.71 $ 16.99 $ 21.88 $ 22.23 $ 18.18
-------- -------- -------- ---------------- --------
-------- -------- -------- ---------------- --------
(15.77)% (18.93)% 3.22% 22.34% 3.05%
$ 37,636 $ 55,620 $ 86,451 $101,043 $ 93,896
$ 49,420 $ 74,063 $ 99,106 $ 98,842 $ 98,444
2.39% 2.35% 2.27% 2.36% 2.37%
1.39% 1.35% 1.27% 1.36% 1.37%
(.33)% (.13)% .07% .59% .53%
</Table>
See Notes to Financial Statements 23
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
-------------------
Six Months Ended
April 30, 2003(b)
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 13.73
--------
Income from investment operations:
Net investment income (loss) .02
Net realized and unrealized gain (loss) on investment and
foreign currency transactions (.39)
--------
Total from investment operations (.37)
--------
Less distributions:
Dividends from net investment income --
Distributions from net realized capital gains --
--------
Total distributions --
--------
Net asset value, end of period $ 13.36
--------
--------
TOTAL RETURN(a) (2.69)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 6,643
Average net assets (000) $ 6,867
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 2.49%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.49%(c)
Net investment income (loss) .24%(c)
</Table>
- ------------------------------
(a) Total return does not consider the effect 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 periods of less than one full year are not
annualized.
(b) Calculated based upon average shares outstanding during the period.
(c) Annualized.
24 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(b) 2001 2000(b) 1999 1998
- ----------------------------------------------------------------------------------------------------------
$17.00 $ 21.88 $ 22.23 $ 18.18 $ 18.13
------- -------- -------- -------- --------
(.05) (.03) .02 .11 .10
(2.47) (3.94) .71 3.95 .43
------- -------- -------- -------- --------
(2.52) (3.97) .73 4.06 .53
------- -------- -------- -------- --------
-- -- (.01) (.01) (.08)
(.75) (.91) (1.07) -- (.40)
------- -------- -------- -------- --------
(.75) (.91) (1.08) (.01) (.48)
------- -------- -------- -------- --------
$13.73 $ 17.00 $ 21.88 $ 22.23 $ 18.18
------- -------- -------- -------- --------
------- -------- -------- -------- --------
(15.70)% (18.89)% 3.22% 22.34% 3.05%
$7,850 $ 11,306 $ 17,755 $ 18,078 $ 14,271
$9,978 $ 14,599 $ 18,082 $ 15,815 $ 14,345
2.39% 2.35% 2.27% 2.36% 2.37%
1.39% 1.35% 1.27% 1.36% 1.37%
(.34)% (.15)% .07% .59% .53%
</Table>
See Notes to Financial Statements 25
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
-------------------
Six Months Ended
April 30, 2003(b)
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 14.17
----------
Income from investment operations:
Net investment income .09
Net realized and unrealized gain (loss) on investment and
foreign currency transactions (.40)
----------
Total from investment operations (.31)
----------
Less distributions:
Dividends from net investment income (.08)
Distributions from net realized capital gains --
----------
Total distributions (.08)
----------
Net asset value, end of period $ 13.78
----------
----------
TOTAL RETURN(a) (2.20)%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 267,620
Average net assets (000) $ 258,794
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 1.49%(c)
Expenses, excluding distribution and service (12b-1)
fees 1.49%(c)
Net investment income 1.33%(c)
</Table>
- ------------------------------
(a) 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 periods of less than one
full year are not annualized.
(b) Calculated based upon average shares outstanding during the period.
(c) Annualized.
26 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential International Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(b) 2001 2000(b) 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 17.39 $ 22.15 $ 22.48 $ 18.38 $ 18.28
- ---------------- ---------------- ---------------- ---------------- ----------------
.11 .20 .25 .31 .30
(2.55) (4.05) .71 3.99 .41
- ---------------- ---------------- ---------------- ---------------- ----------------
(2.44) (3.85) .96 4.30 .71
- ---------------- ---------------- ---------------- ---------------- ----------------
(.03) -- (.22) (.20) (.21)
(.75) (.91) (1.07) -- (.40)
- ---------------- ---------------- ---------------- ---------------- ----------------
(.78) (.91) (1.29) (.20) (.61)
- ---------------- ---------------- ---------------- ---------------- ----------------
$ 14.17 $ 17.39 $ 22.15 $ 22.48 $ 18.38
- ---------------- ---------------- ---------------- ---------------- ----------------
- ---------------- ---------------- ---------------- ---------------- ----------------
(14.91)% (18.08)% 4.24% 23.62% 4.08%
$269,625 $306,278 $405,340 $353,292 $254,577
$308,825 $375,390 $391,289 $308,917 $258,322
1.39% 1.35% 1.27% 1.36% 1.37%
1.39% 1.35% 1.27% 1.36% 1.37%
.68% .89% 1.09% 1.59% 1.53%
</Table>
See Notes to Financial Statements 27
<Page>
This Page Intentionally Left Blank
<Page>
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
Bank of Ireland
Asset Management (U.S.) Limited
75 Holly Hill Lane
Greenwich, CT 06830
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 PISAX 743969503
Class B PISBX 743969602
Class C PCISX 743969701
Class Z PISZX 743969800
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.
<Page>
PRUDENTIAL FINANCIAL (LOGO)
Fund Symbols Nasdaq CUSIP
- ------------ ------ -----
Class A PISAX 743969503
Class B PISBX 743969602
Class C PCISX 743969701
Class Z PISZX 743969800
MF115E4 IFS-A080884
SEMIANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
JENNISON INTERNATIONAL GROWTH FUND
FUND TYPE
Global/International 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. (LOGO)
Prudential World Fund, Inc. Prudential Jennison International Growth Fund
Performance at a Glance
FUND OBJECTIVE
The Prudential Jennison International Growth
Fund (the Fund) seeks 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 Since Inception2
Class A 1.34% -19.19% -62.10%
Class B 0.82 -19.74 -63.00
Class C 0.82 -19.74 -63.00
Class Z 1.33 -19.11 -61.90
MSCI EAFE(R) Index3 1.81 -16.27 -40.60
Lipper International Funds Avg.4 0.92 -17.88 -43.09
Average Annual Total Returns1 As of 3/31/03
One Year Since Inception2
Class A -32.77% -30.76%
Class B -33.18 -30.53
Class C -31.06 -30.30
Class Z -28.90 -29.39
MSCI EAFE(R) Index3 -23.59 -18.07
Lipper International Funds Avg.4 -24.60 -19.71
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 and Lipper Inc. 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 date:
3/1/2000. 3The Morgan Stanley Capital
International (MSCI) EAFE(R) Index is an
unmanaged, weighted index of performance that
reflects stock price movements in Europe,
Australasia, and the Far East. 4The Lipper
International Funds Average (Lipper Average)
represents returns based on
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2003
an average return of all funds in the Lipper
International Funds category. Funds in the
Lipper Average invest their assets in
securities with primary trading markets outside
the United States. Investors cannot invest
directly in an index. The returns for the MSCI
EAFE(R) Index 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.
1
(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 World
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 World Fund, Inc./Prudential Jennison International Growth Fund
2
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited)
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 96.9%
COMMON STOCKS 95.0%
- -------------------------------------------------------------------------------------
Austria 1.5%
12,980 Erste Bank der oesterreichischen Sparkassen AG $ 1,027,035
- -------------------------------------------------------------------------------------
Bermuda 1.7%
13,500 XL Capital, Ltd. (Class 'A' Shares) 1,111,050
- -------------------------------------------------------------------------------------
Brazil 1.6%
57,000 Petroleo Brasileiro SA (ADR) 1,057,350
600 Unibanco - Uniao de Bancos Brasileiros SA (ADR) 10,890
--------------
1,068,240
- -------------------------------------------------------------------------------------
Finland 3.5%
139,361 Nokia Oyj 2,357,788
- -------------------------------------------------------------------------------------
France 4.3%
11,500 Sanofi-Synthelabo SA 685,977
9,400 Societe Television Francaise 1 264,043
8,848 Total SA 1,160,239
108,000 Wanadoo(a) 737,632
--------------
2,847,891
- -------------------------------------------------------------------------------------
Germany 2.7%
14,200 Muenchener Rueckversicherungs-Gesellschaft AG 1,418,325
3,910 SAP AG 400,575
--------------
1,818,900
- -------------------------------------------------------------------------------------
Hong Kong 7.9%
2,849,352 Convenience Retail Asia, Ltd.(a) 617,435
571,006 Esprit Holdings, Ltd. 1,120,187
874,000 Fountain Set (Holdings), Ltd. 593,944
905,900 Johnson Electric Holdings, Ltd. 975,703
716,400 Li & Fung, Ltd. 803,752
926,000 Techtronic Industries Co., Ltd. 1,157,641
--------------
5,268,662
</Table>
See Notes to Financial Statements 3
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
Israel 0.9%
12,500 Teva Pharmaceutical Industries, Ltd. (ADR) $ 583,750
- -------------------------------------------------------------------------------------
Italy 9.1%
582,700 Banca Nazionale del Lavoro SpA(a) 944,226
86,590 Banca Popolare di Verona E Novara Scrl 1,176,042
71,100 Eni SpA 1,013,269
1,500,000 Olivetti SpA(a) 1,702,459
42,424 Tod's SpA 1,239,497
--------------
6,075,493
- -------------------------------------------------------------------------------------
Japan 15.3%
47,000 Nidec Copal Corp. 729,079
156,000 Nikko Exchange Traded Index Fund TOPIX(a) 1,049,069
12,000 Nintendo Co., Ltd. 937,783
28,300 Nitto Denko Corp. 813,928
499 NTT DoCoMo, Inc. 1,029,297
57,000 Shionogi & Co., Ltd. 676,773
59,000 Shiseido Co., Ltd. 538,747
29,100 Softbank Corp. 326,234
39,545 Square Enix Co., Ltd. 636,978
210,400 Tokyo Gas Co., Ltd. 684,515
155,200 TOPIX ETF(a) 1,047,594
157 Yahoo Japan Corp.(a) 1,764,045
--------------
10,234,042
- -------------------------------------------------------------------------------------
Mexico 1.8%
1,378,400 Grupo Financiero BBVA Bancomer SA de CV
(Class 'B' Shares)(a) 1,198,667
- -------------------------------------------------------------------------------------
Netherlands 8.3%
62,600 ASM International NV(a) 853,238
27,500 IHC Caland NV 1,419,413
95,600 ING Groep NV 1,552,335
150,500 Reed Elsevier NV 1,713,172
--------------
5,538,158
</Table>
4 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
Norway 1.0%
173,300 Tandberg ASA(a) $ 673,606
- -------------------------------------------------------------------------------------
Russia 1.4%
5,263 YUKOS (ADR) 921,025
- -------------------------------------------------------------------------------------
South Korea 2.1%
45,700 Kookmin Bank (ADR) 1,259,035
14,700 Kookmin Credit Card Co., Ltd.(a) 163,938
--------------
1,422,973
- -------------------------------------------------------------------------------------
Spain 4.4%
21,425 Banco Popular Espanol, SA 1,038,664
58,500 Gamesa Corporacion Tecnologica, SA(a) 1,199,304
64,848 Telefonica SA 717,191
--------------
2,955,159
- -------------------------------------------------------------------------------------
Sweden 1.2%
269,000 Skandia Forsakrings AB 782,694
- -------------------------------------------------------------------------------------
Switzerland 6.2%
8,100 Centerpulse AG(a) 1,770,737
34 Lindt & Spruengli AG 230,126
21,100 Nobel Biocare Holding AG 1,166,777
19,800 UBS AG 939,416
--------------
4,107,056
- -------------------------------------------------------------------------------------
United Kingdom 20.1%
26,200 AstraZeneca PLC 1,028,011
251,600 Barclays PLC 1,738,163
367,839 Capita Group PLC 1,490,324
937,100 COLT Telecom Group PLC(a) 658,997
47,200 Diageo PLC 523,536
101,200 Exel PLC 970,458
94,500 NDS Group PLC (ADR)(a) 1,214,325
125,696 Reckitt Benckiser PLC 2,216,863
</Table>
See Notes to Financial Statements 5
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ----------------------------------------------------------------------------------------
409,769 Tesco PLC $ 1,296,729
1,156,290 Vodafone Group PLC 2,282,331
--------------
13,419,737
--------------
Total common stocks (cost $60,756,982) 63,411,926
--------------
PREFERRED STOCKS 1.9%
- -------------------------------------------------------------------------------------
Germany 1.9%
3,361 Porsche AG (cost $1,069,109) 1,237,789
--------------
Total long-term investments (cost $61,826,091) 64,649,715
--------------
SHORT-TERM INVESTMENT 3.3%
- -------------------------------------------------------------------------------------
Mutual Fund
2,236,325 Prudential Core Investment Fund - Taxable Money
Market Series (Note 3)
(cost $2,236,325) 2,236,325
--------------
Total Investments 100.2%
(cost $64,062,416; Note 5) 66,886,040
Liabilities in excess of other assets (0.2%) (150,579)
--------------
Net Assets 100% $ 66,735,461
--------------
--------------
</Table>
- ------------------------------
(a) Non-income producing security.
ADR--American Depository Receipt.
6 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
The industry classification of portfolio holdings shown as a percentage of net
assets as of April 30, 2003 was as follows:
Commercial Banks 14.0%
Oil & Gas 6.2
Diversified Financials 5.7
Insurance 5.0
Wireless Telecommunication Services 5.0
Software 4.8
Diversified Telecommunication Services 4.6
Pharmaceuticals 4.5
Healthcare Equipment & Supplies 4.4
Internet Software & Services 4.2
Communications Equipment 3.5
Household Products 3.3
Media 3.0
Food & Drug Retailing 2.9
Electrical Equipment 2.7
Textiles & Apparel 2.7
Commercial Services & Supplies 2.2
Machinery 2.1
Automobiles 1.9
Electrical Utilities 1.8
Household Durables 1.7
Specialty Retail 1.7
Air Freight & Couriers 1.5
Semiconductor Equipment & Products 1.3
Distributors 1.2
Leisure Equipment & Products 1.1
Electronic Equipment & Instruments 1.0
Gas Utilities 1.0
Beverages 0.8
Personal Products 0.8
Food Products 0.3
Cash & Equivalents 3.3
-----
100.2
Liabilities in excess of other assets (0.2)
-----
100.0%
-----
-----
See Notes to Financial Statements 7
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Statement of Assets and Liabilities (Unaudited)
April 30, 2003
- ------------------------------------------------------------------------------
ASSETS
Investments, at value (cost $64,062,416) $ 66,886,040
Foreign currency, at value (cost $482,153) 483,043
Cash 2,973
Receivable for investments sold 3,952,617
Receivable for Series shares sold 290,689
Interest and dividends receivable 289,789
Tax reclaim receivable 74,593
Other assets 332
--------------
Total assets 71,980,076
--------------
LIABILITIES
Payable for investments purchased 4,582,733
Accrued expenses 390,048
Payable for Series shares reacquired 154,669
Management fee payable 44,724
Distribution fee payable 39,639
Withholding taxes payable 32,802
--------------
Total liabilities 5,244,615
--------------
NET ASSETS $ 66,735,461
--------------
--------------
Net assets were comprised of:
Common stock, at par $ 179,157
Paid-in capital in excess of par 262,124,984
--------------
262,304,141
Net investment loss (315,462)
Accumulated net realized loss on investments (198,070,075)
Net unrealized appreciation on investments and foreign
currencies 2,816,857
--------------
Net assets, April 30, 2003 $ 66,735,461
--------------
--------------
8 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Statement of Assets and Liabilities (Unaudited) Cont'd.
<Table>
<Caption>
April 30, 2003
- ---------------------------------------------------------------------------------------
Class A:
Net asset value and redemption price per share ($18,229,444 /
4,813,494 shares of common stock issued and outstanding) $3.79
Maximum sales charge (5% of offering price) .20
--------------
Maximum offering price to public $3.99
--------------
--------------
Class B:
Net asset value, offering price and redemption price per
share ($33,622,762 / 9,098,244 shares of common stock
issued and outstanding) $3.70
--------------
--------------
Class C:
Net asset value and redemption price per share ($12,037,482 /
3,257,262 shares of common stock issued and outstanding) $3.70
Sales charge (1% of offering price) .04
--------------
Offering price to public $3.74
--------------
--------------
Class Z:
Net asset value, offering price and redemption price per
share ($2,845,773 / 746,654 shares of common stock issued
and outstanding) $3.81
--------------
--------------
</Table>
See Notes to Financial Statements 9
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Statement of Operations (Unaudited)
Six Months
Ended
April 30, 2003
- -------------------------------------------------------------------------------
NET INVESTMENT LOSS
Income
Dividends (net of foreign withholding taxes of $97,355) $ 630,222
--------------
Expenses
Management fee 286,622
Distribution fee--Class A 22,274
Distribution fee--Class B 167,844
Distribution fee--Class C 60,762
Transfer agent's fees and expenses 177,000
Custodian's fees and expenses 86,000
Reports to shareholders 75,000
Registration fees 30,000
Audit fee 20,000
Legal fees 15,000
Directors' fees 3,000
Miscellaneous 2,182
--------------
Total expenses 945,684
--------------
Net investment loss (315,462)
--------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND
FOREIGN CURRENCY TRANSACTIONS
Net realized loss on:
Investment transactions (10,483,261)
Foreign currency transactions (41,070)
--------------
(10,524,331)
--------------
Net change in unrealized appreciation (depreciation) on:
Investments 11,174,180
Foreign currencies (9,020)
--------------
11,165,160
--------------
Net gain on investments and foreign currencies 640,829
--------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 325,367
--------------
--------------
10 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Statement of Changes in Net Assets (Unaudited)
<Table>
<Caption>
Six Months Year
Ended Ended
April 30, 2003 October 31, 2002
- -------------------------------------------------------------------------------------
INCREASE (DECREASE) IN NET ASSETS
Operations
Net investment loss $ (315,462) $ (1,062,825)
Net realized loss on investment and foreign
currency transactions (10,524,331) (48,161,809)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currencies 11,165,160 36,013,631
-------------- ----------------
Net increase (decrease) in net assets
resulting from operations 325,367 (13,211,003)
-------------- ----------------
Series share transactions (net of conversions)
(Note 6)
Net proceeds from shares sold 20,077,004 65,511,488
Cost of shares reacquired (30,094,426) (89,611,659)
-------------- ----------------
Net decrease in net assets from Series share
transactions (10,017,422) (24,100,171)
-------------- ----------------
Total decrease (9,692,055) (37,311,174)
NET ASSETS
Beginning of period 76,427,516 113,738,690
-------------- ----------------
End of period $ 66,735,461 $ 76,427,516
-------------- ----------------
-------------- ----------------
</Table>
See Notes to Financial Statements 11
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited)
Prudential World Fund, Inc. (the 'Fund') is registered under the
Investment Company Act of 1940, as an open-end, diversified management
investment company and currently consists of three series: Prudential Jennison
International Growth Fund (the 'Series'), Prudential International Value Fund
and Prudential Global Growth Fund. These financial statements relate to
Prudential Jennison International Growth Fund. The financial statements of the
other Series are not presented herein. The Series commenced investment
operations in March 2000. The investment objective of the Series is to achieve
long-term growth of capital. The Series seeks to achieve its objective primarily
through investment in equity-related securities of foreign issuers.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund and the Series in the preparation of its financial statements.
Securities Valuation: Securities listed on a securities exchange 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 listed securities for which the primary market is believed by
Prudential Investments LLC ('PI' or 'Manager'), in consultation with the
subadviser, 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
valuation methodology, or provides a valuation methodology that, in the judgment
of the Manager or subadviser, does not represent fair value, are valued at fair
value by a Valuation Committee appointed by the Board of Directors, in
consultation with the Manager or subadviser.
Investments in mutual funds are valued at the net asset value as of the
close of the New York Stock Exchange on the date of valuation.
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 U.S. financial institutions, it is the Fund's policy that its
custodian or designated subcustodians, as the case may be under triparty
repurchase agreements, take possession of the underlying collateral securities,
the value of which
12
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
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
maintain the adequacy of 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 Series may
be delayed or limited.
Foreign Currency Translation: The books and records of the Series 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 closing 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 Series are presented at the foreign
exchange rates and market values at the close of the period, the Series 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 Series
does not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of long-term 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 holdings of foreign currencies, currency
gains (losses) realized between the trade and settlement dates on security
transactions, and the difference between the amounts of dividends, interest and
foreign taxes recorded on the Series' books and the U.S. dollar equivalent
amounts actually received or paid. Net unrealized 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 net
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 and the level of governmental supervision and regulation of foreign
securities markets.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized gains (losses) on sales of
securities are
13
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
calculated on the identified cost basis. Dividend income is recorded on the
ex-dividend date and interest income 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 Series 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.
Income distributions and capital gain distributions are determined in
accordance with income tax regulations which may differ from generally accepted
accounting principles.
Taxes: For federal income tax purposes, each series in the Fund is
treated as a separate taxpaying entity. It is the intent of the Series to
continue to meet the requirements of the Internal Revenue Code applicable to
regulated investment companies and to distribute all of its taxable net
investment income and capital gains, if any, to its shareholders. For this
reason, no federal income tax provision is required.
Withholding taxes on foreign dividends, interest and capital gains have
been provided for in accordance with the Series' understanding of the applicable
country's tax rules and rates. Withholding taxes are recorded, net of
reclaimable amounts, at the time the related income is earned.
Note 2. Agreements
The Fund has a management agreement with PI. Pursuant to this agreement, PI has
responsibility for all investment advisory services and supervises the
subadviser's performance of such services. PI has a subadvisory agreement with
Jennison. PI pays for the services of Jennison, the compensation of officers and
employees 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 PI is computed daily and payable monthly, at an
annual rate of .85 of 1% of the average daily net assets of the Series up to and
including $300 million, .75 of 1% of the average daily net assets in excess of
$300 million up to and including $1.5 billion and .70 of 1% of the Series'
average daily net assets over $1.5 billion.
14
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
The Series has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS') which acts as the distributor of Class A, Class
B, Class C and Class Z shares of the Series. The Series compensates PIMS for
distributing and servicing the Series' Class A, Class B and Class C shares,
pursuant to plans of distribution, (the 'Class A, B and C Plans'), regardless of
expenses actually incurred by PIMS. 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 Series.
Pursuant to the Class A, B and C Plans, the Series 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 Plans were .25 of 1%, 1% and 1% of the average daily net
assets of the Class A, B and C shares respectively, for the six months ended
April 30, 2003.
PIMS has advised the Series that they received approximately $7,900 and
$2,700 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 affiliated broker-dealers, which in turn
paid commissions to salespersons and incurred other distribution costs.
PIMS has advised the Series that for the six months ended April 30, 2003
it received approximately $102,900 and $14,300 in contingent deferred sales
charges imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PI, PIMS and Jennison are indirect, wholly-owned subsidiaries of
Prudential Financial, Inc.('Prudential').
The Series, 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 quarterly on a pro rata basis by the Funds.
The purpose of the SCA is to serve as an alternative source of funding for
capital share redemptions. The expiration date of the SCA was May 2, 2003. The
Series did not borrow any amounts pursuant to the SCA during the six months
ended April 30, 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.
15
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
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 and during the six months ended April 30, 2003 the Series incurred fees of
approximately $136,600 for the services of PMFS. As of April 30, 2003
approximately $21,900 of such fees were due to PMFS. Transfer agent fees and
expenses in the Statement of Operations include certain out-of-pocket expenses
paid to nonaffiliates.
The Series 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 Series
incurred approximately $23,200 in total networking fees, of which the amount
relating to the services of Prudential Securities, Inc. ('PSI'), an affiliate of
PI and an indirect, wholly-owned subsidiary of Prudential, was approximately
$22,400 for the six months ended April 30, 2003. As of April 30, 2003,
approximately $3,500 of such fees were due to PSI. These amounts are included in
transfer agent's fees and expenses in the Statement of Operations.
The Series invests in the Taxable Money Market Series, a portfolio of the
Prudential Core Investment Fund, pursuant to an exemptive order received from
the Securities and Exchange Commission. The Taxable Money Market Series is a
money market mutual fund registered under the Investment Company Act of 1940, as
amended, and managed by PI. For the six months ended April 30, 2003, the Series
earned income from the Taxable Money Market Series of approximately $16,100 by
investing its excess cash.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 2003 aggregated $63,170,955 and $73,874,742,
respectively.
Note 5. Tax Information
For federal income tax purposes, the Series had a capital loss carryforward as
of October 31, 2002 of approximately $182,479,000 of which $13,222,000 expires
in 2008, $120,080,000 expires in 2009 and $49,177,000 expires in 2010.
Accordingly, no capital gains distribution is expected to be paid to
shareholders until net gains have been realized in excess of such carryforward.
The United States federal income tax basis of the Series' investments and
the net unrealized depreciation as of April 30, 2003 were as follows:
16
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
Total Net
Unrealized
Tax Basis Appreciation Depreciation Depreciation
- ----------- ------------ ------------ ------------
$66,999,331 $ 5,897,795 $ 6,011,086 $113,291
The difference between book and tax basis was attributable to deferred
losses on wash sales.
Note 6. Capital
The Series offers Class A, Class B, Class C and Class Z shares. Class A shares
are sold with a front-end 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 on 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 qualified 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.
There are 500 million authorized shares of $.01 par value common stock,
divided equally into four classes, designated Class A, Class B, Class C and
Class Z common stock.
Transactions in shares of common stock were as follows:
<Table>
<Caption>
Class A Shares Amount
- ---------------------------------------------------------- ----------- ------------
Six months ended April 30, 2003:
Shares sold 3,145,096 $ 11,353,007
Shares reacquired (3,568,339) (12,945,381)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (423,243) (1,592,374)
Shares issued upon conversion from Class B 45,972 163,271
----------- ------------
Net increase (decrease) in shares outstanding (377,271) $ (1,429,103)
----------- ------------
----------- ------------
Year ended October 31, 2002:
Shares sold 5,760,989 $ 23,875,076
Shares reacquired (7,260,271) (30,715,355)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (1,499,282) (6,840,279)
Shares issued upon conversion from Class B 92,759 396,172
----------- ------------
Net increase (decrease) in shares outstanding (1,406,523) $ (6,444,107)
----------- ------------
----------- ------------
</Table>
17
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Notes to Financial Statements (Unaudited) Cont'd.
<Table>
<Caption>
Class B Shares Amount
- ---------------------------------------------------------- ----------- ------------
Six months ended April 30, 2003:
Shares sold 619,069 $ 2,204,021
Shares reacquired (1,585,611) (5,595,936)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (966,542) (3,391,915)
Shares reacquired upon conversion into Class A (47,033) (163,271)
----------- ------------
Net increase (decrease) in shares outstanding (1,013,575) $ (3,555,186)
----------- ------------
----------- ------------
Year ended October 31, 2002:
Shares sold 1,569,069 $ 6,533,010
Shares reacquired (4,057,237) (17,047,487)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (2,488,168) (10,514,477)
Shares reacquired upon conversion into Class A (94,269) (396,172)
----------- ------------
Net increase (decrease) in shares outstanding (2,582,437) $(10,910,649)
----------- ------------
----------- ------------
<Caption>
Class C
- ----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 1,235,375 $ 4,342,276
Shares reacquired (1,772,494) (6,262,481)
----------- ------------
Net increase (decrease) in shares outstanding (537,119) $ (1,920,205)
----------- ------------
----------- ------------
Year ended October 31, 2002:
Shares sold 3,700,300 $ 15,321,706
Shares reacquired (5,465,127) (23,137,185)
----------- ------------
Net increase (decrease) in shares outstanding (1,764,827) $ (7,815,479)
----------- ------------
----------- ------------
<Caption>
Class Z
- ----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 598,296 $ 2,177,700
Shares reacquired (1,459,094) (5,290,628)
----------- ------------
Net increase (decrease) in shares outstanding (860,798) $ (3,112,928)
----------- ------------
----------- ------------
Year ended October 31, 2002:
Shares sold 4,547,627 $ 19,781,696
Shares reacquired (4,323,334) (18,711,632)
----------- ------------
Net increase (decrease) in shares outstanding 224,293 $ 1,070,064
----------- ------------
----------- ------------
</Table>
18
<Page>
SEMI ANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
JENNISON INTERNATIONAL GROWTH FUND
- -------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights April 30, 2003 (Unaudited)
<Table>
<Caption>
Class A
-------------------
Six Months Ended
April 30, 2003
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 3.74
--------
Income (loss) from investment operations:
Net investment loss (.01)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .06
--------
Total from investment operations .05
--------
Net asset value, end of period $ 3.79
--------
--------
TOTAL RETURN(b) 1.34%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $18,229
Average net assets (000) $17,967
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees(e) 2.31%(c)
Expenses, excluding distribution and service (12b-1)
fees 2.06%(c)
Net investment loss (.40)%(c)
For Class A, B, C and Z shares:
Portfolio turnover rate(f) 96%
</Table>
- ------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effect 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 periods less than one full year are not
annualized.
(c) Annualized.
(d) Less than $.005 per share.
(e) The distributor of the Series contractually agreed to limit its distribution
and service (12b-1) fees to .25 of 1% of the average net assets of the Class
A shares.
(f) Not annualized for periods of less than one full year.
20 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Class A
- ----------------------------------------------------------------
Year Ended October 31, March 1, 2000(a)
- ------------------------------------- Through
2002 2001 October 31, 2000
- ----------------------------------------------------------------
$ 4.37 $ 7.91 $ 10.00
-------- -------- --------
(.02) (.06) (--)(d)
(.61) (3.48) (2.09)
-------- -------- --------
(.63) (3.54) (2.09)
-------- -------- --------
$ 3.74 $ 4.37 $ 7.91
-------- -------- --------
-------- -------- --------
(14.42)% (44.68)% (21.00)%
$ 19,414 $ 28,860 $ 75,354
$ 25,360 $ 47,713 $ 85,757
1.88% 1.73% 1.56%(c)
1.63% 1.48% 1.31%(c)
(.56)% (.86)% (--)(c)
108% 63% 61%
</Table>
See Notes to Financial Statements 21
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Class B
-------------------
Six Months Ended
April 30, 2003
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 3.66
--------
Income (loss) from investment operations:
Net investment loss (.02)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .06
--------
Total from investment operations .04
--------
Net asset value, end of period $ 3.70
--------
--------
TOTAL RETURN(b) .82%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $33,623
Average net assets (000) $33,847
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 3.06%(c)
Expenses, excluding distribution and service (12b-1)
fees 2.06%(c)
Net investment loss (1.18)%(c)
</Table>
- ------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effect 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 periods less than one full year are not
annualized.
(c) Annualized.
22 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Class B
- ----------------------------------------------------------------
Year Ended October 31, March 1, 2000(a)
- ------------------------------------- Through
2002 2001 October 31, 2000
- ----------------------------------------------------------------
$ 4.32 $ 7.87 $ 10.00
-------- -------- ----------------
(.07) (.11) (.05)
(.59) (3.44) (2.08)
-------- -------- ----------------
(.66) (3.55) (2.13)
-------- -------- ----------------
$ 3.66 $ 4.32 $ 7.87
-------- -------- ----------------
-------- -------- ----------------
(15.05)% (45.04)% (21.40)%
$ 37,059 $ 54,810 $131,919
$ 49,086 $ 87,731 $147,626
2.63% 2.48% 2.31%(c)
1.63% 1.48% 1.31%(c)
(1.30)% (1.60)% (.78)%(c)
</Table>
See Notes to Financial Statements 23
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Class C
-------------------
Six Months Ended
April 30, 2003
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 3.66
--------
Income (loss) from investment operations:
Net investment loss (.02)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .06
--------
Total from investment operations .04
--------
Net asset value, end of period $ 3.70
--------
--------
TOTAL RETURN(b) .82%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $12,037
Average net assets (000) $12,253
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 3.06%(c)
Expenses, excluding distribution and service (12b-1)
fees 2.06%(c)
Net investment loss (1.19)%(c)
</Table>
- ------------------------------
(a) Commencement of investment operations.
(b) Total return does not consider the effect 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 periods less than one full year are not
annualized.
(c) Annualized.
24 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Class C
- ----------------------------------------------------------------
Year Ended October 31, March 1, 2000(a)
- ------------------------------------- Through
2002 2001 October 31, 2000
- ----------------------------------------------------------------
$ 4.32 $ 7.87 $ 10.00
-------- -------- --------
(.08) (.12) (.05)
(.58) (3.43) (2.08)
-------- -------- --------
(.66) (3.55) (2.13)
-------- -------- --------
$ 3.66 $ 4.32 $ 7.87
-------- -------- --------
-------- -------- --------
(15.05)% (45.04)% (21.40)%
$ 13,906 $ 24,004 $ 64,362
$ 19,770 $ 41,057 $ 79,138
2.63% 2.48% 2.31%(c)
1.63% 1.48% 1.31%(c)
(1.33)% (1.61)% (.74)%(c)
</Table>
See Notes to Financial Statements 25
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
-------------------
Six Months Ended
April 30, 2003
- -----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 3.76
-------
Income (loss) from investment operations:
Net investment income (loss) (.01)
Net realized and unrealized gain (loss) on investment and
foreign currency transactions .06
-------
Total from investment operations .05
-------
Net asset value, end of period $ 3.81
-------
-------
TOTAL RETURN(b) 1.33%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 2,846
Average net assets (000) $ 3,932
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees 2.06%(c)
Expenses, excluding distribution and service (12b-1)
fees 2.06%(c)
Net investment income (loss) (.48)%(c)
</Table>
- ------------------------------
(a) Commencement of investment operations.
(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 periods less than one full
year are not annualized.
(c) Annualized.
26 See Notes to Financial Statements
<Page>
Prudential World Fund, Inc. Prudential Jennison International
Growth Fund
Financial Highlights April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
- ----------------------------------------------------------------
Year Ended October 31, March 1, 2000(a)
- ------------------------------------- Through
2002 2001 October 31, 2000
- ----------------------------------------------------------------
$ 4.39 $ 7.92 $ 10.00
------- -------- --------
(.02) (.06) .01
(.61) (3.47) (2.09)
------- -------- --------
(.63) (3.53) (2.08)
------- -------- --------
$ 3.76 $ 4.39 $ 7.92
------- -------- --------
------- -------- --------
(14.35)% (44.50)% (20.90)%
$6,049 $ 6,065 $ 19,703
$7,665 $ 13,805 $ 22,320
1.63% 1.48% 1.31%(c)
1.63% 1.48% 1.31%(c)
(.22)% (.59)% .23%(c)
</Table>
See Notes to Financial Statements 27
This Page Intentionally Left Blank
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
Jennison Associates LLC
466 Lexington Avenue
New York, NY 10017
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 PJRAX 743969859
Class B PJRBX 743969867
Class C PJRCX 743969875
Class Z PJIZX 743969883
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.
(LOGO)
Fund Symbols Nasdaq CUSIP
Class A PJRAX 743969859
Class B PJRBX 743969867
Class C PJRCX 743969875
Class Z PJIZX 743969883
MF190E2 IFS-A080883
<Page>
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
<Page>
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 World Fund
By: /s/ Jonathan D. Shain
-----------------------
Jonathan D. Shain
Secretary of Prudential World Fund (Global Growth Fund,
International Value Fund and Jennison International Value 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 and Principal Executive Officer of Prudential World
Fund (Global Growth Fund, International Value Fund and
Jennison International Value Fund)
Date: July 8 2003
By: /s/ Grace C. Torres
--------------------
Grace C. Torres,
Treasurer and Principal Financial Officer of Prudential World
Fund (Global Growth Fund, International Value Fund and
Jennison International Value Fund)
Date: July 8, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.