<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.