<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: 811-04864
Exact name of registrant as specified in charter: Prudential Value Fund
Address of principal executive offices: Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Name and address of agent for service: Ms. Maria Master
Gateway Center 3,
100 Mulberry Street,
Newark, New Jersey 07102
Registrant's telephone number, including area code: 973-367-3028
Date of fiscal year end: 10/31/03
Date of reporting period: 04/30/03
</Table>
<Page>
Item 1 -- Reports to Stockholders
<Page>
SEMIANNUAL REPORT
April 30, 2003
PRUDENTIAL
Value Fund
FUND TYPE
Large-capitalization stock
OBJECTIVE
Capital appreciation
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 Financial
<Page>
Prudential Value Fund
Performance at a Glance
FUND OBJECTIVE
The Prudential Value Fund's (the Fund) investment objective is capital
appreciation. There can be no assurance that the Fund will achieve its
investment objective.
<Table>
<Caption>
Cumulative Total Returns(1) As of 4/30/03
Six Months One Year Five Years Ten Years Since Inception(2)
Class A 3.17% -18.73% -14.76% 109.62% 223.78%
Class B 2.83 -19.32 -17.89 94.44 259.62
Class C 2.83 -19.32 -17.89 N/A 75.35
Class Z 3.30 -18.52 -13.68 N/A 53.51
S&P 500 Index(3) 4.47 -13.30 -11.54 151.37 ***
Russell 1000
Value Index(4) 5.25 -13.01 -2.44 166.79 ****
Lipper Multi-Cap
Value Funds Avg.(5) 5.40 -15.54 -0.31 148.60 *****
</Table>
Average Annual Total Returns1 As of 3/31/03
One Year Five Years Ten Years Since Inception(2)
Class A -30.98% -5.30% 6.44% 8.34%
Class B -31.43 -5.16 6.19 7.79
Class C -29.26 -5.22 N/A 5.76
Class Z -27.15 -4.07 N/A 5.24
S&P 500 Index(3) -24.75 -3.76 8.53 ***
Russell 1000
Value Index(4) -22.79 -2.03 9.24 ****
Lipper Multi-Cap
Value Funds Avg.(5) -24.00 -1.86 8.32 *****
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. (1) Source: 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 annually, 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. (2) Inception dates: Class A, 1/22/90; Class B,
1/22/87; Class C, 8/1/94; and Class Z, 3/1/96. (3) The Standard & Poor's 500
Composite Stock Price Index (S&P 500 Index) is an unmanaged index of 500
stocks of large U.S. companies. It gives a broad look at how stock prices
have performed in the United States. (4) The Russell 1000 Value Index is an
unmanaged index comprising those securities in the Russell 1000 Index with a
lesser-than-average growth orientation. Companies in this index generally
have low price-to-book and price/earnings ratios, higher dividend yields, and
lower forecasted growth values. (5) The Lipper Multi-
<Page>
www.prudential.com (800) 225-1852
Semiannual Report April 30, 2003
Cap Value Funds Average (Lipper Average) represents returns based on an
average return of all funds in the Lipper Multi-Cap Value Funds category for
the periods noted. Funds in the Lipper Average typically have a below-average
price/earnings ratio, price-to-book ratio, and three-year sales-per-share
growth value, compared to the S&P SuperComposite 1500 Index. Investors cannot
invest directly in an index. The returns for the S&P 500 Index, the Russell
1000 Value 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. ***S&P 500 Index Since
Inception cumulative total returns as of 4/30/03 are 273.08% for Class A,
395.35% for Class B, 133.10% for Class C, and 59.96% for Class Z. S&P 500
Index Since Inception average annual total returns as of 3/31/03 are 9.85%
for Class A, 9.86% for Class B, 9.26% for Class C, and 5.67% for Class Z.
**** Russell 1000 Value Index Since Inception cumulative total returns as of
4/30/03 are 300.41% for Class A, 421.61% for Class B, 144.28% for Class C,
and 73.56% for Class Z. Russell 1000 Value Index Since Inception average
annual total returns as of 3/31/03 are 10.40% for Class A, 10.18% for Class
B, 9.78% for Class C, and 6.73% for Class Z. *****Lipper Average Since
Inception cumulative total returns as of 4/30/03 are 266.39% for Class A,
364.46% for Class B, 122.79% for Class C, and 60.72% for Class Z. Lipper
Average Since Inception average annual total returns as of 3/31/03 are 9.49%
for Class A, 9.16% for Class B, 8.47% for Class C, and 5.48% for Class Z.
1
<Page>
(LOGO) Prudential Financial 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 Value Fund 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 Value Fund
2
<Page>
Prudential Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited)
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
LONG-TERM INVESTMENTS 92.7%
Common Stocks
- -------------------------------------------------------------------------------------
Aerospace & Defense 5.2%
246,700 General Dynamics Corp. $ 15,312,669
183,000 Northrop Grumman Corp. 16,094,850
270,000 Raytheon Co. 8,081,100
----------------
39,488,619
- -------------------------------------------------------------------------------------
Banks 1.6%
296,000 Mellon Financial Corp. 7,829,200
100,800 PNC Financial Services Group 4,425,120
----------------
12,254,320
- -------------------------------------------------------------------------------------
Chemicals 3.1%
338,800 Dow Chemical Co. 11,058,432
190,000 E.I. du Pont de Nemours & Co. 8,080,700
337,522 Lyondell Chemical Co. 4,910,945
----------------
24,050,077
- -------------------------------------------------------------------------------------
Commercial Services & Supplies 1.3%
440,100 Waste Management, Inc. 9,558,972
- -------------------------------------------------------------------------------------
Communications Equipment 1.3%
1,007,896 3Com Corp.(a) 5,241,059
163,900 Harris Corp. 4,680,984
----------------
9,922,043
- -------------------------------------------------------------------------------------
Computers & Peripherals 1.8%
860,021 Hewlett-Packard Co. 14,018,343
- -------------------------------------------------------------------------------------
Containers & Packaging 1.3%
215,800 Temple-Inland, Inc.(b) 9,775,740
- -------------------------------------------------------------------------------------
Diversified Financials 11.4%
158,900 American Express Co. 6,015,954
772,300 Citigroup, Inc. 30,312,775
167,600 Goldman Sachs Group, Inc.(b) 12,720,840
278,800 J.P. Morgan Chase & Co. 8,182,780
</Table>
See Notes to Financial Statements 3
<Page>
Prudential Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
235,400 Lehman Brothers Holdings, Inc. $ 14,823,138
278,800 Merrill Lynch & Co., Inc. 11,444,740
135,600 Principal Financial Group 3,945,960
----------------
87,446,187
- -------------------------------------------------------------------------------------
Diversified Telecommunication Services 4.1%
403,000 AT&T Corp. 6,871,150
423,210 BellSouth Corp. 10,787,623
375,500 Verizon Communications, Inc. 14,036,190
----------------
31,694,963
- -------------------------------------------------------------------------------------
Electric Utilities 2.8%
90,500 Dominion Resources, Inc. 5,355,790
86,600 DTE Energy Co. 3,491,712
255,700 FirstEnergy Corp. 8,624,761
211,700 TXU Corp. 4,217,064
----------------
21,689,327
- -------------------------------------------------------------------------------------
Electronic Equipment & Instruments 1.0%
2,470,600 Solectron Corp.(a)(b) 7,881,214
- -------------------------------------------------------------------------------------
Energy Equipment & Services 9.1%
273,900 Baker Hughes, Inc. 7,669,200
647,200 ENSCO International, Inc. 16,438,880
665,500 GlobalSantaFe Corp. 14,081,980
540,900 Halliburton Co. 11,580,669
106,900 Nabors Industries Ltd.(a) 4,190,480
285,000 Schlumberger Ltd. (Netherlands) 11,950,050
105,700 Weatherford International Ltd. (Bermuda)(a) 4,252,311
----------------
70,163,570
- -------------------------------------------------------------------------------------
Food Products 3.7%
664,100 ConAgra Foods, Inc. 13,946,100
298,900 Kraft Foods, Inc. (Class A) 9,236,010
307,700 Sara Lee Corp. 5,163,206
----------------
28,345,316
</Table>
4 See Notes to Financial Statements
<Page>
Prudential Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
Healthcare Providers & Services 2.0%
260,300 HCA, Inc. $ 8,355,630
457,900 Tenet Healthcare Corp.(a) 6,795,236
----------------
15,150,866
- -------------------------------------------------------------------------------------
Hotels Restaurants & Leisure 1.3%
590,500 McDonald's Corp. 10,097,550
- -------------------------------------------------------------------------------------
Household Products 1.4%
209,200 Kimberly-Clark Corp. 10,411,884
- -------------------------------------------------------------------------------------
Industrial Conglomerates 1.6%
181,600 General Electric Co. 5,348,120
420,400 Tyco International Ltd. 6,558,240
----------------
11,906,360
- -------------------------------------------------------------------------------------
Insurance 7.7%
213,000 Allstate Corp. 8,049,270
138,700 American International Group, Inc. 8,037,665
355,900 Hartford Financial Services Group, Inc. 14,506,484
96,900 St. Paul Co., Inc.(b) 3,327,546
275,753 Travelers Property Casualty Corp. (Class A) 4,475,471
253,800 XL Capital Ltd. (Class A) 20,887,740
----------------
59,284,176
- -------------------------------------------------------------------------------------
Machinery 1.1%
289,400 Navistar International Corp.(a) 8,074,260
- -------------------------------------------------------------------------------------
Media 7.4%
334,500 AOL Time Warner, Inc.(a) 4,575,960
247,400 EchoStar Communications Corp. (Class A)(a)(b) 7,412,104
312,800 General Motors Corp. (Class H Stock)(a) 3,691,040
1,067,000 Liberty Media Corp. (Series A)(a) 11,737,000
114,200 New York Times Co. (Class A) 5,296,596
712,058 News Corp. Ltd., ADR (Australia) 16,704,880
36,500 Omnicom Group, Inc. 2,259,350
124,200 Viacom, Inc. (Class B)(a) 5,391,522
----------------
57,068,452
</Table>
See Notes to Financial Statements 5
<Page>
Prudential Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
Metals & Mining 1.0%
222,600 Freeport-McMoRan Copper & Gold, Inc. (Class B) $ 3,853,206
142,800 Newmont Mining Corp. 3,858,456
----------------
7,711,662
- -------------------------------------------------------------------------------------
Multiline Retail 0.8%
199,300 Federated Department Stores, Inc. 6,102,566
- -------------------------------------------------------------------------------------
Office Electronics 1.0%
794,300 Xerox Corp.(a)(b) 7,831,798
- -------------------------------------------------------------------------------------
Oil & Gas 5.6%
134,925 Apache Corp. 7,724,456
233,500 Exxon Mobil Corp. 8,219,200
458,500 Occidental Petroleum Corp. 13,686,225
33,800 Royal Dutch Petroleum Co. (Netherlands) 1,381,744
185,300 Total Fina Elf S.A., ADR (France) 12,174,210
----------------
43,185,835
- -------------------------------------------------------------------------------------
Paper & Forest Products 3.8%
218,200 Boise Cascade Corp. 5,012,054
461,500 International Paper Co. 16,498,625
151,400 Weyerhaeuser Co. 7,507,926
----------------
29,018,605
- -------------------------------------------------------------------------------------
Pharmaceuticals 4.6%
331,500 Bristol-Myers Squibb Co. 8,466,510
192,500 Merck & Co., Inc. 11,199,650
273,420 Pfizer, Inc. 8,407,665
171,119 Wyeth 7,448,810
----------------
35,522,635
- -------------------------------------------------------------------------------------
Railroads 0.5%
68,750 Union Pacific Corp. 4,092,000
- -------------------------------------------------------------------------------------
Semiconductor Equipment & Products 1.3%
5,669,215 Agere Systems, Inc. (Class B)(a) 9,694,358
</Table>
6 See Notes to Financial Statements
<Page>
Prudential Value Fund
Portfolio of Investments as of April 30, 2003 (Unaudited) Cont'd.
<Table>
<Caption>
Shares Description Value (Note 1)
- ------------------------------------------------------------------------------------------
Software 0.6%
92,200 Synopsys, Inc.(a) $ 4,484,608
- -------------------------------------------------------------------------------------
Specialty Retail 0.9%
693,500 Toys 'R' Us, Inc.(a) 7,108,375
- -------------------------------------------------------------------------------------
Tobacco 1.6%
325,400 Altria Group, Inc. 10,009,304
141,100 Loews Corp. - Carolina Group 2,593,418
----------------
12,602,722
- -------------------------------------------------------------------------------------
Wireless Telecommunication Services 0.8%
1,787,300 Sprint Corp. (PCS Group)(a) 6,255,550
----------------
Total long-term investments (cost $723,268,829) 711,892,953
----------------
SHORT-TERM INVESTMENT 9.9%
- -------------------------------------------------------------------------------------
Mutual Fund
76,450,489 Prudential Core Investment Fund-Taxable Money
Market Series(c)
(cost $76,450,489; Note 3) 76,450,489
----------------
Total Investments 102.6%
(cost $799,719,318; Note 5) 788,343,442
Liabilities in excess of other assets (2.6%) (20,292,960)
----------------
Net Assets 100% $ 768,050,482
----------------
----------------
</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, see Note 4.
ADR--American Depository Receipt.
See Notes to Financial Statements 7
<Page>
Prudential Value Fund
Statement of Assets and Liabilities (Unaudited)
<Table>
<Caption>
April 30, 2003
- ----------------------------------------------------------------------------------------
ASSETS
Investments, at value including securities on loan of
$20,879,486 (cost $799,719,318) $ 788,343,442
Cash 98,633
Receivable for investments sold 10,575,430
Dividends and interest receivable 1,175,387
Receivable for Fund shares sold 182,547
Tax reclaim receivable 33,418
Receivable for securities lending 26,124
Prepaid expenses and other assets 20,077
-----------------
Total assets 800,455,058
-----------------
LIABILITIES
Payable to broker for collateral for securities on loan
(Note 4) 22,082,108
Payable for investments purchased 7,295,143
Payable for Fund shares reacquired 1,328,909
Accrued expenses 1,024,128
Management fee payable 348,180
Distribution fee payable 286,973
Securities lending rebate payable 23,817
Withholding taxes payable 15,318
-----------------
Total liabilities 32,404,576
-----------------
NET ASSETS $ 768,050,482
-----------------
-----------------
Net assets were comprised of:
Shares of beneficial interest, at par $ 617,443
Paid-in capital in excess of par 927,625,935
-----------------
928,243,378
Undistributed net investment income 2,458,200
Accumulated net realized loss on investments (151,275,220)
Net unrealized depreciation on investments (11,375,876)
-----------------
Net assets, April 30, 2003 $ 768,050,482
-----------------
-----------------
</Table>
8 See Notes to Financial Statements
<Page>
Prudential 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
($504,595,273 / 40,456,857 shares of beneficial interest
issued and outstanding) $12.47
Maximum sales charge (5% of offering price) .66
----------------
Maximum offering price to public $13.13
----------------
----------------
Class B:
Net asset value, offering price and redemption price per
share ($211,997,808 / 17,150,402 shares of beneficial
interest issued and outstanding) $12.36
----------------
----------------
Class C:
Net asset value and redemption price per share
($21,133,496 / 1,709,678 shares of beneficial interest
issued and outstanding) $12.36
Sales charge (1% of offering price) .12
----------------
Offering price to public $12.48
----------------
----------------
Class Z:
Net asset value, offering price and redemption price per
share ($30,323,905 / 2,427,339 shares of beneficial
interest issued and outstanding) $12.49
----------------
----------------
</Table>
See Notes to Financial Statements 9
<Page>
Prudential Value Fund
Statement of Operations (Unaudited)
<Table>
<Caption>
Six Months
Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
NET INVESTMENT INCOME
Dividends (net of foreign withholding taxes of $13,336) $ 7,812,222
Income from securities loaned, (net) 38,721
Interest 8,342
----------------
Total income 7,859,285
----------------
Expenses
Management fee 2,202,730
Distribution fee--Class A 632,449
Distribution fee--Class B 1,119,759
Distribution fee--Class C 107,166
Transfer agent's fees and expenses 992,000
Reports to shareholders 136,000
Custodian's fees and expenses 99,000
Registration fees 50,000
Legal fees and expenses 22,000
Audit fee 14,000
Trustees' fees 10,000
Insurance 8,000
Miscellaneous 8,757
----------------
Total expenses 5,401,861
----------------
Net investment income 2,457,424
----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
Net realized loss on investment transactions (56,864,099)
Net change in unrealized appreciation/(depreciation) on
investments 77,963,566
----------------
Net gain on investments 21,099,467
----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 23,556,891
----------------
----------------
</Table>
10 See Notes to Financial Statements
<Page>
Prudential Value 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 income $ 2,457,424 $ 5,426,340
Net realized loss on investments and foreign
currency transactions (56,864,099) (90,774,290)
Net change in unrealized appreciation
(depreciation) of investments 77,963,566 (89,288,445)
-------------- ----------------
Net increase (decrease) in net assets
resulting from operations 23,556,891 (174,636,395)
-------------- ----------------
Dividends and distributions (Note 1)
Dividends from net investment income
Class A (3,629,646) (4,302,044)
Class Z (313,603) (562,409)
-------------- ----------------
(3,943,249) (4,864,453)
-------------- ----------------
Distributions from net realized gains
Class A -- (63,947,693)
Class B -- (37,197,176)
Class C -- (2,861,741)
Class Z -- (5,853,100)
-------------- ----------------
-- (109,859,710)
-------------- ----------------
Fund share transactions (net of share
conversions)
(Note 6)
Proceeds from shares sold 32,916,695 144,192,974
Net asset value of shares issued in
reinvestment of dividends and
distributions 3,644,984 107,139,107
Cost of shares reacquired (100,777,630) (328,410,307)
-------------- ----------------
Net decrease in net assets from Fund share
transactions (64,215,951) (77,078,226)
-------------- ----------------
Total decrease (44,602,309) (366,438,784)
NET ASSETS
Beginning of period 812,652,791 1,179,091,575
-------------- ----------------
End of period(a) $ 768,050,482 $ 812,652,791
-------------- ----------------
-------------- ----------------
(a) Includes undistributed net investment
income of $ 2,458,200 $ 3,944,025
-------------- ----------------
</Table>
See Notes to Financial Statements 11
<Page>
Prudential Value Fund
Notes to Financial Statements (Unaudited)
Prudential Value Fund (the 'Fund') is registered under the Investment
Company Act of 1940 as a diversified, open-end, management investment company.
The investment objective of the Fund is capital appreciation. It seeks to
achieve this objective by investing primarily in common stocks and convertible
securities that provide investment income returns above those of the Standard &
Poor's 500 Composite Stock Price Index or the NYSE Composite Index.
Note 1. Accounting Policies
The following is a summary of significant accounting policies followed by the
Fund in the preparation of its financial statements.
Securities Valuation: Securities traded on an exchange and Nasdaq
National Market securities are valued at the last closing 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 in the over-the-counter
market, including securities listed on exchanges whose primary market is
believed to be over-the-counter, are valued at market value using prices
provided by an independent pricing agent or principal market maker. Securities
for which reliable market quotations are not readily available or for which the
pricing agent or market maker does not provide a valuation or methodology, or
provides a valuation or methodology that, in the judgement of the subadviser,
does not represent fair value, are valued at fair value by a Valuation Committee
appointed by the Board of Trustees, in consultation with the Manager or
subadviser.
Investment in mutual funds are vauled at their 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 United States financial institutions, it is the Fund's policy
that its custodian or designated subcustodians under triparty repurchase
agreements, as the case may be, take possession of the underlying collateral
securities, the value of which exceeds the principal amount of the repurchase
transaction, including accrued interest. To the extent that any repurchase
transaction exceeds one business day, the value of the collateral is
marked-to-market on a daily basis to ensure the adequacy of the collateral. If
the seller defaults and the value of the collateral declines or if bankruptcy
proceedings are commenced with respect to the seller of the security,
realization of the collateral by the Fund may be delayed or limited.
12
<Page>
Prudential Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
Securities Transactions and Net Investment Income: Securities
transactions are recorded on the trade date. Realized and unrealized gains
(losses) on sales of portfolio securities are calculated on the identified cost
basis. Dividend income is recorded on the ex-dividend date and interest income
is recorded on the accrual basis. The Fund amortizes premiums and discounts on
purchases of debt securities as adjustments to interest income. 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) 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.
Taxes: It is the Fund's policy to meet the requirements of the Internal
Revenue Code applicable to regulated investment companies and to distribute all
of its taxable net income and capital gains, if any, to shareholders. Therefore,
no federal income tax provision is required.
Withholding taxes on foreign dividends have been provided for in
accordance with the Fund's understanding of the applicable country's tax rates.
Dividends and Distributions: The Fund expects to pay dividends of net
investment income and distributions of net realized capital and currency gains,
if any, annually. Dividends and distributions 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.
Securities Lending: The Fund 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. During the time the securities are on loan, the
Fund will continue to receive the interest and dividends or amounts equivalent
thereto, on the loaned securities while receiving a fee from the borrower or
earning interest on the investment of the cash collateral. Loans are subject to
termination at the option of the borrower or the Fund. Upon termination of the
loan, the borrower will return to the lender securities identical to the loaned
securities. The Fund may pay reasonable finders', administrative and custodial
fees in connection with a loan of its securities and may share the interest
earned on the collateral with the borrower. The Fund bears the risk of delay in
recovery of, or even loss of rights in, the securities loaned should the
borrower of the securities fail financially.
13
<Page>
Prudential Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
Note 2. Agreements
The Fund has a management agreement with Prudential Investments, LLC ('PI').
Pursuant to this agreement, PI has responsibility for all investment advisory
services and supervises the subadvisers' performance of such services. Pursuant
to a subadvisory agreement between PI and Jennison Associates LLC ('Jennison'),
Deutsche Asset Management Inc. ('Deutsche Asset') and Victory Capital
Management, Inc. ('Victory'), from November 1, 2002 through December 12, 2002,
Deutsche Asset and Victory assumed the day-to-day management responsibilities
with Jennison retaining approximately half of the assets and Deutsche Asset and
Victory each assuming approximately 25% of assets. Effective as of the close of
business December 12, 2002, the Board of Trustees approved a reallocation of all
assets of the Fund from Deutsche Asset and Victory to Jennison. Jennison is now
responsible for managing 100% of the Fund's assets. PI pays for the services of
Jennison, the compensation of officers of the Fund, occupancy and certain
clerical and bookkeeping costs of the Fund. The Fund bears all other costs and
expenses.
The management fee paid to PI is computed daily and payable monthly at an
annual rate of .60 of 1% of the Fund's average daily net assets up to $500
million, .50 of 1% of the next $500 million, .475 of 1% of the next $500 million
and .45 of 1% of the average daily net assets in excess of $1.5 billion.
The Fund has a distribution agreement with Prudential Investment
Management Services LLC ('PIMS'), which acts as the distributor of the Class A,
Class B, Class C and Class Z shares. The Fund compensates PIMS for distributing
and servicing the Fund's Class A, Class B and Class C shares, pursuant to plans
of distribution (the 'Class A, B and C Plans'), regardless of expenses actually
incurred. The distribution fees are accrued daily and payable monthly. No
distribution or service fees are paid to PIMS as distributor of the Class Z
shares of the Fund.
Pursuant to the Class A, B and C Plans, the Fund compensates PIMS for
distribution-related activities at an annual rate of up to .30 of 1%, 1% and 1%,
of the average daily net assets of the Class A, B and C shares, respectively.
Such expenses under the Plans were .25 of 1%, 1% and 1% of the average daily net
assets of the Class A, B and C shares for the six months ended April 30, 2003,
respectively.
PIMS has advised the Fund that it has received approximately $55,900 and
$2,800 in front-end sales charges resulting from sales of Class A shares 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.
14
<Page>
Prudential Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
PIMS has advised the Fund that for the six months ended April 30, 2003, it
received approximately $178,700 and $1,800 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 Fund, along with other affiliated registered investment companies (the
'Funds'), is a party to a syndicated credit agreement ('SCA') with a group of
banks. For the six months ended April 30, 2003, the amount of the commitment was
$800 million and allows the Funds to increase the commitment to $1 billion, if
necessary. Interest on any borrowings under the SCA will be incurred 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 is May 2, 2003.
The Fund 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 Fund's transfer
agent. During the six months ended April 30, 2003, the Fund incurred fees of
approximately $647,800 for the services of PMFS. As of April 30, 2003,
approximately $105,200 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 Fund pays networking fees to affiliated and unaffiliated
broker/dealers. These networking fees are payments made to broker/dealers that
clear mutual fund transactions through a national clearing system. The Fund
incurred approximately $74,000 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
$64,800 for the six months ended April 30, 2003. As of April 30, 2003,
approximately $10,400 of such fees were due to PSI. These amounts are included
in transfer agent's fees and expenses in the Statement of Operations.
PSI is the securities lending agent for the Fund. For the six months ended
April 30, 2003, PSI has been compensated approximately $12,900 for these
services of which approximately $580 is payable at April 30, 2003.
15
<Page>
Prudential Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
The Fund invests in the Taxable Money Market Series (the 'Series'), a
portfolio of Prudential Core Investment Fund, pursuant to an exemptive order
received from the Securities and Exchange Commission. The Series is a money
market fund registered under the Investment Company Act of 1940, as amended, and
managed by PI. As of April 30, 2003, the Fund earned income from the Series of
approximately $198,600 and $38,700, respectively, by investing its excess cash
and collateral from securities lending.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended April 30, 2003 were $478,363,981 and $567,523,234,
respectively.
As of April 30, 2003, the Fund had securities on loan with an aggregate
market value of $20,879,486. The Fund received $22,082,108 in cash as collateral
for securities on loan which was used to purchase highly liquid short-term
investments in accordance with the Fund's securities lending procedures.
Note 5. Distributions and Tax Information
As of October 31, 2002, the Fund had a capital loss carryforward for federal
income tax purposes of approximately $84,270,000 which 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 Fund's investments and
the net unrealized depreciation as of April 30, 2003 were as follows:
Total Net
Unrealized
Tax Basis Appreciation Depreciation Depreciation
- ------------ ------------ ------------ ------------
$806,200,464 $ 41,293,227 $ 61,150,249 $(19,857,022)
The difference between book basis is primarily attributable to the
difference in the treatment of wash sale losses for book and tax purposes.
Note 6. Capital
The Fund 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
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
16
<Page>
Prudential Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
years after purchase. A special exchange privilege is also available for
shareholders who qualify to purchase Class A shares at net asset value or Class
Z shares. Class Z shares are not subject to any sales or redemption charge and
are offered exclusively for sale to a limited group of investors.
The Fund has authorized an unlimited number of shares of beneficial
interest at $.01 par value divided into four classes, designated Class A, Class
B, Class C and Class Z.
Transactions in shares of beneficial interest were as follows:
<Table>
<Caption>
Class A Shares Amount
- ---------------------------------------------------------- ----------- -------------
Six months ended April 30, 2003:
Shares sold 1,452,309 $ 17,848,096
Shares issued in reinvestment of dividends and
distributions 265,713 3,337,361
Shares reacquired (5,094,533) (62,249,829)
----------- -------------
Net increase (decrease) in shares outstanding before
conversion (3,376,511) (41,064,372)
Shares issued upon conversion from Class B 1,372,634 16,358,054
----------- -------------
Net increase (decrease) in shares outstanding (2,003,877) $ (24,706,318)
----------- -------------
----------- -------------
<Caption>
Class A
- ----------------------------------------------------------
Year ended October 31, 2002:
Shares sold 5,260,561 $ 79,965,297
Shares issued in reinvestment of dividends and
distributions 4,041,024 62,797,511
Shares reacquired (13,615,945) (198,415,787)
----------- -------------
Net increase (decrease) in shares outstanding before
conversion (4,314,360) (55,652,979)
Shares issued upon conversion from Class B 3,857,723 57,299,651
----------- -------------
Net increase (decrease) in shares outstanding (456,637) $ 1,646,672
----------- -------------
----------- -------------
<Caption>
Class B
- ----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 657,657 $ 7,993,484
Shares reacquired (2,247,247) (27,304,114)
----------- -------------
Net increase (decrease) in shares outstanding before
conversion (1,589,590) (19,310,630)
Shares reacquired upon conversion into Class A (1,383,200) (16,358,054)
----------- -------------
Net increase (decrease) in shares outstanding (2,972,790) $ (35,668,684)
----------- -------------
----------- -------------
Year ended October 31, 2002:
Shares sold 2,348,863 $ 34,521,419
Shares issued in reinvestment of dividends and
distributions 2,277,194 35,228,187
Shares reacquired (5,471,858) (75,693,521)
----------- -------------
Net increase (decrease) in shares outstanding before
conversion (845,801) (5,943,915)
Shares reacquired upon conversion into Class A (3,888,117) (57,299,651)
----------- -------------
Net increase (decrease) in shares outstanding (4,733,918) $ (63,243,566)
----------- -------------
----------- -------------
</Table>
17
<Page>
Prudential Value Fund
Notes to Financial Statements (Unaudited) Cont'd.
<Table>
<Caption>
Class C Shares Amount
- ---------------------------------------------------------- ----------- -------------
Six months ended April 30, 2003:
Shares sold 185,957 $ 2,271,982
Shares reacquired (366,987) (4,491,703)
----------- -------------
Net increase (decrease) in shares outstanding (181,030) $ (2,219,721)
----------- -------------
----------- -------------
Year ended October 31, 2002:
Shares sold 560,206 $ 7,855,437
Shares issued in reinvestment of dividends and
distributions 182,198 2,818,597
Shares reacquired (764,351) (10,528,977)
----------- -------------
Net increase (decrease) in shares outstanding (21,947) $ 145,057
----------- -------------
----------- -------------
<Caption>
Class Z
- ----------------------------------------------------------
Six months ended April 30, 2003:
Shares sold 391,532 $ 4,803,133
Shares issued in reinvestment of dividends and
distributions 24,473 307,623
Shares reacquired (552,237) (6,731,984)
----------- -------------
Net increase (decrease) in shares outstanding (136,232) $ (1,621,228)
----------- -------------
----------- -------------
Year ended October 31, 2002:
Shares sold 1,471,778 $ 21,850,821
Shares issued in reinvestment of dividends and
distributions 404,551 6,294,812
Shares reacquired (3,177,415) (43,772,022)
----------- -------------
Net increase (decrease) in shares outstanding (1,301,086) $ (15,626,389)
----------- -------------
----------- -------------
</Table>
18
<Page>
SEMIANNUAL REPORT
APRIL 30, 2003
PRUDENTIAL
VALUE FUND
- --------------------------------------------------------------------------------
FINANCIAL HIGHLIGHTS
<Page>
Prudential Value Fund
Financial Highlights (Unaudited)
<Table>
<Caption>
Class A
----------------
Six Months Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 12.17
----------------
Income from investment operations
Net investment income .05
Net realized and unrealized gain (loss) on investment
transactions .34
----------------
Total from investment operations .39
----------------
Less distributions
Dividends from net investment income (.09)
Dividends in excess of net investment income --
Distributions from net realized gains --
----------------
Total distributions (.09)
----------------
Net asset value, end of period $ 12.47
----------------
----------------
TOTAL RETURN(a): 3.17%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $504,595
Average net assets (000) $510,152
Ratios to average net assets:
Expenses, including distribution and service (12b-1)
fees(b) 1.16%(d)
Expenses, excluding distribution and service (12b-1) fees .91%(d)
Net investment income .85%(d)
For Class A, B, C and Z shares:
Portfolio turnover rate(e) 63%
</Table>
- ------------------------------
(a) Total return of shares 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.
(b) The distributor of the Fund 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.
(c) Calculated based upon average shares outstanding during the period.
(d) Annualized.
(e) Portfolio turnover for periods of less than one full year is not annualized.
20 See Notes to Financial Statements
<Page>
Prudential Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class A
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(c) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 16.09 $ 18.49 $ 18.12 $ 18.63 $ 21.00
- ---------------- ---------------- ---------------- ---------------- ----------------
.11 .16 .31 .33 .45
(2.43) (1.22) 2.49 .58 (.49)
- ---------------- ---------------- ---------------- ---------------- ----------------
(2.32) (1.06) 2.80 .91 (.04)
- ---------------- ---------------- ---------------- ---------------- ----------------
(.10) (.12) (.25) (.33) (.44)
-- -- -- (.03) --
(1.50) (1.22) (2.18) (1.06) (1.89)
- ---------------- ---------------- ---------------- ---------------- ----------------
(1.60) (1.34) (2.43) (1.42) (2.33)
- ---------------- ---------------- ---------------- ---------------- ----------------
$ 12.17 $ 16.09 $ 18.49 $ 18.12 $ 18.63
- ---------------- ---------------- ---------------- ---------------- ----------------
- ---------------- ---------------- ---------------- ---------------- ----------------
(16.56)% (6.21)% 17.60% 5.03% (.65)%
$516,702 $690,433 $634,991 $619,469 $638,547
$657,772 $714,431 $571,048 $653,798 $655,776
1.04% 1.08% 1.16% 1.02% .91%
.79% .83% .91% .77% .66%
.74% .83% 1.83% 1.71% 2.19%
72% 179% 64% 17% 22%
</Table>
See Notes to Financial Statements 21
<Page>
Prudential Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
----------------
Six Months Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 12.02
----------------
Income from investment operations
Net investment income (loss) .01
Net realized and unrealized gain (loss) on investment
transactions .33
----------------
Total from investment operations .34
----------------
Less distributions
Dividends from net investment income --
Dividends in excess of net investment income --
Distributions from net realized gains --
----------------
Total distributions --
----------------
Net asset value, end of period $ 12.36
----------------
----------------
TOTAL RETURN(a): 2.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $211,998
Average net assets (000) $225,808
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 1.91%(d)
Expenses, excluding distribution and service (12b-1) fees .91%(d)
Net investment income (loss) .11%(d)
</Table>
- ------------------------------
(a) 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.
(b) Less than $.005 per share.
(c) Calculated based upon average shares outstanding during the period.
(d) Annualized.
22 See Notes to Financial Statements
<Page>
Prudential Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class B
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(c) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 15.92 $ 18.38 $ 18.06 $ 18.57 $ 20.93
- ---------------- ---------------- ---------------- ---------------- ----------------
(--)(b) .03 .20 .19 .29
(2.40) (1.22) 2.46 .58 (.48)
- ---------------- ---------------- ---------------- ---------------- ----------------
(2.40) (1.19) 2.66 .77 (.19)
- ---------------- ---------------- ---------------- ---------------- ----------------
-- (.05) (.16) (.19) (.28)
-- -- -- (.03) --
(1.50) (1.22) (2.18) (1.06) (1.89)
- ---------------- ---------------- ---------------- ---------------- ----------------
(1.50) (1.27) (2.34) (1.28) (2.17)
- ---------------- ---------------- ---------------- ---------------- ----------------
$ 12.02 $ 15.92 $ 18.38 $ 18.06 $ 18.57
- ---------------- ---------------- ---------------- ---------------- ----------------
- ---------------- ---------------- ---------------- ---------------- ----------------
(17.21)% (6.93)% 16.71% 4.25% (1.35)%
$ 241,923 $ 395,833 $ 639,755 $1,006,346 $1,299,962
$ 347,114 $ 529,705 $ 778,722 $1,200,663 $1,391,826
1.79% 1.83% 1.91% 1.77% 1.66%
.79% .83% .91% .77% .66%
(.01)% .12% 1.13% .98% 1.44%
</Table>
See Notes to Financial Statements 23
<Page>
Prudential Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
----------------
Six Months Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 12.02
----------------
Income from investment operations
Net investment income (loss) --(b)
Net realized and unrealized gain (loss) on investment
transactions .34
----------------
Total from investment operations .34
----------------
Less distributions
Dividends from net investment income --
Dividends in excess of net investment income --
Distributions from net realized gains --
----------------
Total distributions --
----------------
Net asset value, end of period $ 12.36
----------------
----------------
TOTAL RETURN(a): 2.83%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 21,133
Average net assets (000) $ 21,611
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 1.91%(e)
Expenses, excluding distribution and service (12b-1) fees .91%(e)
Net investment income (loss) .10%(e)
</Table>
- ------------------------------
(a) 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.
(b) Less than $.005 per share.
(c) Less than .005%.
(d) Calculated based upon average shares outstanding during the period.
(e) Annualized.
24 See Notes to Financial Statements
<Page>
Prudential Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class C
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(d) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 15.92 $ 18.38 $ 18.06 $ 18.57 $ 20.93
-------- -------- -------- -------- --------
(--)(b) .02 .19 .19 .30
(2.40) (1.21) 2.47 .58 (.49)
-------- -------- -------- -------- --------
(2.40) (1.19) 2.66 .77 (.19)
-------- -------- -------- -------- --------
-- (.05) (.16) (.19) (.28)
-- -- -- (.03) --
(1.50) (1.22) (2.18) (1.06) (1.89)
-------- -------- -------- -------- --------
(1.50) (1.27) (2.34) (1.28) (2.17)
-------- -------- -------- -------- --------
$ 12.02 $ 15.92 $ 18.38 $ 18.06 $ 18.57
-------- -------- -------- -------- --------
-------- -------- -------- -------- --------
(17.21)% (6.93)% 16.71%
4.25% (1.35)%
$ 22,728 $ 30,459 $ 28,032 $ 33,685 $ 37,988
$ 29,071 $ 31,358 $ 27,782 $ 36,981 $ 31,345
1.79% 1.83% 1.91% 1.77% 1.66%
.79% .83% .91% .77% .66%
0%(c) .08% 1.10% .98% 1.47%
</Table>
See Notes to Financial Statements 25
<Page>
Prudential Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
----------------
Six Months Ended
April 30, 2003
- ----------------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
Net asset value, beginning of period $ 12.21
--------
Income from investment operations
Net investment income .08
Net realized and unrealized gain (loss) on investment
transactions .32
--------
Total from investment operations .40
--------
Less distributions
Dividends from net investment income (.12)
Dividends in excess of net investment income --
Distributions from net realized gains --
--------
Total distributions (.12)
--------
Net asset value, end of period $ 12.49
--------
--------
TOTAL RETURN(a): 3.30%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 30,324
Average net assets (000) $ 30,823
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees .91%(c)
Expenses, excluding distribution and service (12b-1) fees .91%(c)
Net investment income 1.10%(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 a
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 Value Fund
Financial Highlights (Unaudited) Cont'd.
<Table>
<Caption>
Class Z
- ----------------------------------------------------------------------------------------------------------
Year Ended October 31,
- ----------------------------------------------------------------------------------------------------------
2002(b) 2001 2000 1999 1998
- ----------------------------------------------------------------------------------------------------------
$ 16.14 $ 18.52 $ 18.13 $ 18.64 $ 21.00
- ---------------- ---------------- ---------------- ---------------- ----------------
.14 .28 .35 .38 .52
(2.43) (1.30) 2.50 .58 (.51)
- ---------------- ---------------- ---------------- ---------------- ----------------
(2.29) (1.02) 2.85 .96 .01
- ---------------- ---------------- ---------------- ---------------- ----------------
(.14) (.14) (.28) (.38) (.48)
-- -- -- (.03) --
(1.50) (1.22) (2.18) (1.06) (1.89)
- ---------------- ---------------- ---------------- ---------------- ----------------
(1.64) (1.36) (2.46) (1.47) (2.37)
- ---------------- ---------------- ---------------- ---------------- ----------------
$ 12.21 $ 16.14 $ 18.52 $ 18.13 $ 18.64
- ---------------- ---------------- ---------------- ---------------- ----------------
- ---------------- ---------------- ---------------- ---------------- ----------------
(16.34)% (5.98)% 17.94% 5.28% (.40)%
$ 31,300 $ 62,366 $153,246 $136,529 $142,918
$ 58,256 $ 69,810 $141,384 $144,747 $103,474
.79% .83% .91% .77% .66%
.79% .83% .91% .77% .66%
.98% 1.11% 2.07% 1.97% 2.49%
</Table>
See Notes to Financial Statements 27
<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
Trustees
Saul K. Fenster
Delayne Dedrick Gold
Robert F. Gunia
Douglas H. McCorkindale
W. Scott McDonald, Jr.
Thomas T. Mooney
Stephen P. Munn
David R. Odenath, Jr.
Richard A. Redeker
Judy A. Rice
Robin B. Smith
Louis A. Weil, III
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
Maria G. Master, 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 PBEAX 74438J105
Class B PBQIX 74438J204
Class C PEICX 74438J303
Class Z PEIZX 74438J402
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>
(LOGO) Prudential Financial
Fund Symbols Nasdaq CUSIP
Class A PBEAX 74438J105
Class B PBQIX 74438J204
Class C PEICX 74438J303
Class Z PEIZX 74438J402
MF131E2 IFS-A080881
<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 Value Fund
By: /s/ Maria Master
-----------------------
Maria Master
Secretary of Prudential 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 Value Fund
Date: July 8 2003
By: /s/ Grace C. Torres
--------------------
Grace C. Torres,
Treasurer and Principal Financial Officer of Prudential Value Fund
Date: July 8, 2003
Attached hereto as an exhibit are the certifications pursuant to
Section 906 of the Sarbanes-Oxley Act.