<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: 811-4661
Exact name of registrant as specified in charter: Dryden Gobal Total Return Fund,
Inc.
Address of principal executive offices: Gateway Center 3
100 Mulberry Street
Newark, New Jersey 07102
Name and address of agent for service: Marguerite E.H. Morrison
Gateway Center 3
100 Mulberry Street
Newark, New Jersey 07102
Registrant's telephone number, including area code: 973-367-7525
Date of fiscal year end: December 31, 2003
Date of reporting period: June 30, 2003
</Table>
<Page>
Item 1 -- Reports to Stockholders
Dryden
Global Total Return Fund, Inc.
Formerly known as Prudential Global Total Return Fund, Inc.
JUNE 30, 2003 SEMIANNUAL REPORT
FUND TYPE OBJECTIVE
Global/international Total return made up of current income
bond and 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.
JennisonDryden is a service mark of
The Prudential Insurance Company
of America.
JennisonDrydenMutualFunds
Dear Shareholder, August 15, 2003
Stocks and bonds often move in opposite
directions. However, for a period during
the spring of 2003, both markets in the United
States rallied in tandem. Recently, signs of
stronger economic growth have helped sustain
the rise in equities but weighed heavily on
bonds. Regardless of the direction of financial
markets, it is important to remember that a
wise investor plans today for tomorrow's needs.
Current market activity should have little
impact on planning for your long-term
investment goals.
Whether you are investing for your retirement,
your children's education, or some other
purpose, JennisonDryden mutual funds offer the
experience, resources, and professional
discipline of three leading asset management
firms that can make a difference for you.
JennisonDryden equity funds are managed by
Jennison Associates and Quantitative
Management. Prudential Fixed Income manages the
JennisonDryden fixed income and money market
funds.
A diversified asset allocation strategy is a
disciplined approach to investing that
may help you make more consistent progress
toward your goals. We recommend
that you develop a personal asset allocation
strategy in consultation with a financial
professional who knows you, who understands
your reasons for investing, the time you have
to reach your goals, and the amount of risk you
are comfortable assuming. JennisonDryden mutual
funds offer a wide range of investment choices,
and your financial professional can help you
choose the appropriate funds to implement
your strategy.
I was named president of the Dryden Global
Total Return Fund, Inc. in March 2003. Thank
you for your confidence in JennisonDryden
mutual funds. We look forward to serving your
future investment needs.
Sincerely,
Judy A. Rice, President
Dryden Global Total Return Fund, Inc.
Dryden Global Total Return Fund, Inc. 1
Your Fund's Performance
Fund Objective
The Dryden Global Total Return Fund, Inc. (the
Fund) seeks total return made up of current
income and capital appreciation. There can be
no assurance that the Fund will achieve its
investment objective.
Cumulative Total Returns1 as of 6/30/03
Six Months One Year Five Years Ten Years Since Inception2
Class A 6.81% 13.38% 21.88% 86.97% 302.13%
Class B 6.40 12.50 18.44 N/A 43.28
Class C 6.41 12.61 18.55 N/A 43.42
Class Z 6.80 13.49 23.29 N/A 35.70
Citigroup WGBI-Unhedged3 7.11 16.51 38.25 87.87 ***
Lipper Global Income Funds Avg.4 8.38 15.75 32.57 89.45 ****
Average Annual Total Returns1 as of 6/30/03
One Year Five Years Ten Years Since Inception2
Class A 8.85% 3.19% 6.02% 8.28%
Class B 7.50 3.28 N/A 4.94
Class C 10.49 3.25 N/A 4.81
Class Z 13.49 4.28 N/A 4.97
Citigroup WGBI-Unhedged3 16.51 6.69 6.51 ***
Lipper Global Income Funds Avg.4 15.75 5.72 6.50 ****
Distributions and Yields1 as of 6/30/03
Total Distributions 30-Day
Paid for Six Months SEC Yield
Class A $0.15 0.90%
Class B $0.12 0.17
Class C $0.13 0.42
Class Z $0.16 1.19
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. Past performance numbers,
with the exception of six-month, one-, and
five-year returns, do not fully reflect the
higher operating expenses incurred since the
Fund commenced operations as an open-end mutual
fund on January 15, 1996. If these expenses had
been applied since the Fund's inception, past
performance returns would have been lower.
Prior to January 15, 1996, the Fund operated as
a closed-end fund with shares being traded on
the New York Stock Exchange. 1Source:
Prudential Investments LLC and Lipper Inc. The
cumulative total returns do not take into
account applicable sales charges. If reflected,
the applicable sales charges would reduce the
cumulative total return performance quoted. The
average annual total returns do take into
account applicable sales charges. Without the
distribution and service (12b-1) fee waiver of
0.05% and 0.25% for Class A and Class C shares
respectively, the returns for these classes
would have been lower. The Fund charges a
maximum front-end sales charge of 4% for Class
A shares 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
0.75% 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
2 Visit our website at www.jennisondryden.com
a 12b-1 fee of up to 1% annually. Class Z
shares are not subject to a sales charge or
12b-1 fee. The returns in the tables do not
reflect the deduction of taxes that a
shareholder would pay on fund distributions or
following the redemption of fund shares.
2Inception dates: Class A, 7/7/86; Class B and
Class C, 1/15/96; and Class Z, 3/17/97. 3The
Citigroup World Government Bond Index (WGBI)-
Unhedged (formerly known as the Salomon Smith
Barney World Government Bond Index-Unhedged) is
a market capitalization-weighted index
consisting of the government bond markets of 18
countries, which are selected based on market
capitalization and investability criteria. All
issues have a remaining maturity of at least
one year. 4The Lipper Global Income Funds
Average (Lipper Average) represents returns
based on an average return of all funds in the
Lipper Global Income Funds category for the
periods noted. Funds in the Lipper Average
invest primarily in U.S. dollar and non-U.S.
dollar debt securities of issuers located in at
least three countries, one of which may be the
United States. Investors cannot invest directly
in an index. The returns for the Citigroup
WGBI-Unhedged 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,
but not sales charges or taxes. ***Citigroup
WGBI-Unhedged Closest Month-End to Inception
cumulative total returns as of 6/30/03 are
270.58% for Class A, 49.44% for Class B and
Class C, and 48.58% for Class Z. Citigroup
WGBI-Unhedged Closest Month-End to Inception
average annual total returns as of 6/30/03 are
8.05% for Class A, 5.57% for Class B and Class
C, and 6.54% for Class Z. ****Lipper Average
Closest Month-End to Inception cumulative total
returns as of 6/30/03 are 263.16% for Class A,
55.43% for Class B and Class C, and 44.57% for
Class Z. Lipper Average Closest Month-End to
Inception average annual total returns as of
6/30/03 are 7.91% for Class A, 6.00% for Class
B and Class C, and 5.98% for Class Z.
Five Largest Issuers expressed as a percentage
of total investments as of 6/30/03
Japanese Government 18.6%
German Government 16.7
Canadian Government 6.8
United Kingdom Treasury 6.7
Italian Government 5.7
Issuers are subject to change.
Dryden Global Total Return Fund, Inc. 3
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Portfolio of Investments
as of June 30, 2003 (Unaudited)
<Table>
<Caption>
-----------------------------------------------------------------------------------
PRINCIPAL US$
AMOUNT (000) DESCRIPTION VALUE (NOTE 1)
LONG-TERM INVESTMENTS 93.2%
CANADA 6.8%
-----------------------------------------------------------------------------------
Canadian Government Bonds,
CAD 6,255 3.50%, 6/1/05 $ 4,644,329
10,465 4.50%, 9/1/07 7,963,027
3,075 4.25%, 9/1/08 2,307,014
---------------
14,914,370
EUROBONDS 34.4%
-----------------------------------------------------------------------------------
Bayerische Hypo - und Vereinsbank AG,
EUR 1,975 3.00%, 6/11/08 2,250,980
Belgian Government Bonds,
2,412 8.50%, 10/1/07 3,390,258
Brazilian Government Bonds,
300 11.50%, 4/2/09 349,328
Finnish Government Bonds,
1,915 3.00%, 7/4/08 2,199,749
French Government Bonds,
1,705 3.50%, 1/12/08 2,005,905
2,795 8.50%, 4/25/23 4,865,810
German Government Bonds,
14,820 2.50%, 3/18/05 17,126,063
4,690 3.00%, 4/11/08 5,399,224
3,916 5.375%, 1/4/10 5,025,327
6,970 5.50%, 1/4/31 8,960,474
Greek Government Bonds,
4,885 4.65%, 6/21/05 5,871,660
Italian Government Bonds,
7,005 6.75%, 7/1/07 9,250,817
1,990 5.00%, 5/1/08 2,489,971
530 5.50%, 11/1/10 686,042
Spanish Government Bonds,
4,785 5.35%, 10/31/11 6,151,328
---------------
76,022,936
HUNGARY 1.3%
-----------------------------------------------------------------------------------
Hungarian Government Bonds,
HUF 699,760 7.00%, 4/12/06 2,913,843
</Table>
See Notes to Financial Statements.
4 Visit our website at www.jennisondryden.com
<Page>
<Table>
-----------------------------------------------------------------------------------
PRINCIPAL US$
AMOUNT (000) DESCRIPTION VALUE (NOTE 1)
JAPAN 18.4%
-----------------------------------------------------------------------------------
Japanese Government Bonds,
JPY 823,000 0.30%, 9/20/07 $ 6,856,860
1,189,950 0.30%, 3/20/08 9,896,182
184,700 1.90%, 3/20/09 1,665,661
152,700 1.80%, 3/22/10 1,376,913
1,070,500 1.60%, 3/21/11 9,544,411
200,350 1.30%, 6/20/12 1,746,345
521,500 1.10%, 9/20/12 4,464,509
426,300 1.90%, 6/20/22 3,999,072
128,000 1.40%, 12/20/32 1,076,096
---------------
40,626,049
POLAND 1.5%
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Polish Government Bonds,
PLZ 11,885 8.50%, 6/12/05 3,246,747
UNITED KINGDOM 6.6%
-----------------------------------------------------------------------------------
United Kingdom Treasury Bonds,
GBP 2,510 8.50%, 12/7/05 4,624,401
4,805 5.00%, 9/7/14 8,422,059
1,000 4.25%, 6/7/32 1,573,417
---------------
14,619,877
UNITED STATES 24.2%
CORPORATE BONDS 2.2%
-----------------------------------------------------------------------------------
Chohung Bank, FRN,
USD 450 6.354%, 1/7/05 465,750
Fideicomiso Petacalco,
904 10.16%, 12/23/09 1,054,836
Korea Exchange Bank,
220 13.75%, 6/30/10 259,600
Oryx Energy Co.,
1,690 8.00%, 10/15/03 1,721,263
Safeway, Inc.,
1,245 6.05%, 11/15/03 1,263,698
---------------
4,765,147
</Table>
See Notes to Financial Statements.
Dryden Global Total Return Fund, Inc. 5
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Portfolio of Investments
as of June 30, 2003 (Unaudited) Cont'd.
<Table>
-----------------------------------------------------------------------------------
PRINCIPAL US$
AMOUNT (000) DESCRIPTION VALUE (NOTE 1)
UNITED STATES GOVERNMENT OBLIGATIONS 22.0%
-----------------------------------------------------------------------------------
United States Treasury Bonds,
USD 4,750 5.375%, 2/15/31 $ 5,348,761
3,320 11.25%, 2/15/15 5,657,486
United States Treasury Notes,
5,645 1.875%, 9/30/04 5,700,569
3,715 2.125%, 10/31/04 3,764,484
915 7.50%, 2/15/05 1,007,644
975 6.75%, 5/15/05 1,073,757
10,053 3.25%, 8/15/07 10,491,642
6,900 6.00%, 8/15/09 8,139,033
3,445 4.00%, 11/15/12 3,584,819
3,730 3.625%, 5/15/13 3,759,139
---------------
48,527,334
---------------
Total United States investments 53,292,481
---------------
Total long-term investments (cost US$194,072,037) 205,636,303
---------------
SHORT-TERM INVESTMENTS 5.6%
UNITED STATES GOVERNMENT OBLIGATIONS 0.3%
-----------------------------------------------------------------------------------
United States Treasury Bills,
800(b) 0.79%(a), 7/17/03 798,801
SHARES
-------------
MUTUAL FUND 5.3%
-----------------------------------------------------------------------------------
Prudential Core Investment Fund - Taxable Money
11,662,403 Market Series (Note 3) 11,662,403
---------------
Total short-term investments
(cost US$12,461,991) 12,461,204
---------------
TOTAL INVESTMENTS 98.8%
(COST US$206,534,028; NOTE 5) 218,097,507
Other assets in excess of liabilities 1.2% 2,663,205
---------------
NET ASSETS 100% $ 220,760,712
---------------
---------------
</Table>
See Notes to Financial Statements.
6 Visit our website at www.jennisondryden.com
<Page>
Portfolio securities are classified according to the security's currency
denomination.
(a) Percentage quoted represents yield-to-maturity as of purchase date.
(b) Pledged as initial margin on financial futures contracts.
CAD--Canadian Dollar.
EUR--Euro.
FRN--Floating Rate Note.
GBP--Pound Sterling.
HUF--Hungarian Krone.
JPY--Japanese Yen.
PLZ--Polish Zloty.
The industry classification of portfolio holdings and other assets shown as
a percentage of net assets as of June 30, 2003 was as follows:
Foreign Government Obligations......................................... 68.0%
U.S. Government Obligations............................................ 22.3
Banks.................................................................. 1.8
Oil.................................................................... 0.8
Food................................................................... 0.6
Assets in excess of other liabilities (including Taxable Money Market
Series).............................................................. 6.5
-----
100.0%
-----
-----
See Notes to Financial Statements.
Dryden Global Total Return Fund, Inc. 7
<Page>
Statement of Assets and Liabilities
as of June 30, 2003 (Unaudited)
<Table>
ASSETS
-----------------------------------------------------------------------------------
Investments, at value (cost $206,534,028) $218,097,507
Foreign currency, at value (cost $1,034,897) 1,013,900
Cash 3,795
Interest receivable 2,421,992
Unrealized appreciation on forward currency contracts 1,280,629
Receivable for Fund shares sold 46,102
Due from broker-variation margin 13,860
Other assets 10,745
------------
TOTAL ASSETS 222,888,530
------------
LIABILITIES
-----------------------------------------------------------------------------------
Unrealized depreciation on forward currency contracts 1,331,437
Accrued expenses and other liabilities 336,407
Payable for Fund shares reacquired 256,469
Management fee payable 141,506
Distribution fee payable 51,763
Withholding tax payable 10,236
------------
TOTAL LIABILITIES 2,127,818
------------
NET ASSETS $220,760,712
------------
------------
-----------------------------------------------------------------------------------
Net assets were comprised of:
Common stock, at par $ 294,116
Paid-in capital in excess of par 220,765,251
------------
221,059,367
Overdistribution of net investment income (5,372,203)
Accumulated net realized loss on investment and foreign currency
transactions (6,238,314)
Net unrealized appreciation on investments and foreign currencies 11,311,862
------------
Net assets, June 30, 2003 $220,760,712
------------
------------
</Table>
See Notes to Financial Statements.
8 Visit our website at www.jennisondryden.com
<Page>
<Table>
CLASS A
-----------------------------------------------------------------------------------
Net asset value and redemption price per share
($206,522,839 / 27,517,246 shares of common stock issued and outstanding) $7.51
Maximum sales charge (4% of offering price) .31
-----
Maximum offering price to public $7.82
-----
-----
CLASS B
-----------------------------------------------------------------------------------
Net asset value, offering price and redemption price per share
($8,254,049 / 1,097,768 shares of common stock issued and outstanding) $7.52
-----
-----
CLASS C
-----------------------------------------------------------------------------------
Net asset value and redemption price per share
($889,813 / 118,582 shares of common stock issued and outstanding) $7.50
Sales charge (1% of offering price) .08
-----
Offering price to public $7.58
-----
-----
CLASS Z
-----------------------------------------------------------------------------------
Net asset value, offering price and redemption price per share
($5,094,011 / 677,997 shares of common stock issued and outstanding) $7.51
-----
-----
</Table>
See Notes to Financial Statements.
Dryden Global Total Return Fund, Inc. 9
<Page>
Statement of Operations
Six Months Ended June 30, 2003 (Unaudited)
<Table>
NET INVESTMENT INCOME
-----------------------------------------------------------------------------------
Income
Interest (net of foreign withholding taxes of $80,609) $ 3,379,182
Dividends 79,994
-----------------
3,459,176
-----------------
Expenses
Management fee 844,502
Distribution fee--Class A 264,352
Distribution fee--Class B 40,144
Distribution fee--Class C 2,897
Transfer agent's fees and expenses 234,000
Custodian's fees and expenses 101,000
Reports to shareholders 90,000
Audit fee 21,000
Registration fees 20,000
Legal fees and expenses 17,000
Directors' fees 6,000
Miscellaneous 6,936
-----------------
TOTAL EXPENSES 1,647,831
-----------------
Net investment income 1,811,345
-----------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
-----------------------------------------------------------------------------------
Net realized gain (loss) on:
Investment transactions 12,883,030
Foreign currency transactions 2,332,831
Financial futures contracts transactions (324,440)
-----------------
14,891,421
-----------------
Net change in unrealized appreciation (depreciation) on:
Investments 607,825
Foreign currencies (2,573,375)
Financial futures contracts 167,531
-----------------
(1,798,019)
-----------------
Net gain on investments and foreign currencies 13,093,402
-----------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $14,904,747
-----------------
-----------------
</Table>
See Notes to Financial Statements.
10 Visit our website at www.jennisondryden.com
<Page>
Statement of Changes in Net Assets
For the Six Months and Year Ended Periods (Unaudited)
<Table>
<Caption>
-----------------------------------------------------------------------------------
SIX MONTHS YEAR
ENDED ENDED
JUNE 30, 2003 DECEMBER 31, 2002
INCREASE (DECREASE) IN NET ASSETS
-----------------------------------------------------------------------------------
OPERATIONS
Net investment income $ 1,811,345 $ 8,518,344
Net realized gain (loss) on investment and
foreign currency transactions 14,891,421 (2,236,405)
Net change in unrealized appreciation
(depreciation) on investments and foreign
currencies (1,798,019) 15,196,646
----------------- -----------------
Net increase in net assets resulting from
operations 14,904,747 21,478,585
----------------- -----------------
DIVIDENDS FROM NET INVESTMENT INCOME (NOTE 1)
Class A (4,060,642) (9,125,204)
Class B (128,297) (264,924)
Class C (14,535) (27,759)
Class Z (103,251) (234,572)
----------------- -----------------
(4,306,725) (9,652,459)
----------------- -----------------
FUND SHARE TRANSACTIONS (NET OF SHARE
CONVERSIONS) (NOTE 6)
Net proceeds from shares sold 10,385,911 11,254,043
Net asset value of shares issued in
reinvestment of dividends 2,072,811 4,545,936
Cost of shares reacquired (25,692,210) (42,051,649)
----------------- -----------------
Decrease in net assets from Fund share
transactions (13,233,488) (26,251,670)
----------------- -----------------
Total decrease (2,635,466) (14,425,544)
----------------- -----------------
NET ASSETS
---------------------------------------------------------------------------------------
Beginning of period 223,396,178 237,821,722
----------------- -----------------
End of period $ 220,760,712 $ 223,396,178
----------------- -----------------
----------------- -----------------
</Table>
See Notes to Financial Statements.
Dryden Global Total Return Fund, Inc. 11
<Page>
Notes to Financial Statements
(Unaudited)
Dryden Global Total Return Fund, Inc. (the 'Fund'), formerly known as Prudential
Global Total Return Fund, Inc., is an open-end, non-diversified management
investment company. The Fund's investment objective is to seek total return made
up of current income and capital appreciation. The Fund seeks to achieve this
objective by investing at least 65% of its total assets in income-producing debt
securities issued by the U.S. and foreign corporations and governments,
supranational organizations, semi-government entities or governmental agencies,
authorities or instrumentalities and short-term bank debt securities or bank
deposits. The Fund invests primarily in investment-grade securities denominated
in U.S. dollars and in foreign currencies.
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: In valuing the Fund's assets, quotations of foreign
securities in a foreign currency are converted to U.S. dollar equivalents at the
then current currency value. Securities traded in the over-the-counter market,
including securities listed on exchanges whose primary market is believed by
Prudential Investments LLC ('PI' or 'Manager'), in consultation with Prudential
Investment Management, Inc. ('PIM' or 'Subadviser'), to be over-the-counter, are
valued by an independent pricing agent or principal market maker. Securities
listed on a securities exchange are valued at the last sale price on such
exchange on the day of valuation or, if there was no sale on such day, at the
mean between the last reported bid and asked prices, or at the last bid price on
such day in the absence of an asked price. Securities traded via Nasdaq are
valued at the official closing price as provided by Nasdaq. Forward currency
exchange contracts are valued at the current cost of covering or offsetting the
contract on the day of valuation. Options on securities and indices traded on an
exchange are valued at the mean between the most recently quoted bid and asked
prices on such exchange. Futures contracts and options thereon traded on a
commodities exchange or board of trade are valued at the last sale price at the
close of trading on such exchange or board of trade or, if there was no sale on
the applicable commodities exchange or board of trade on such day, at the mean
between the most recently quoted bid and asked prices on such exchange or board
of trade or at the last bid price in the absence of an asked price. Securities
for which 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
12 Visit our website at www.jennisondryden.com
<Page>
represent fair value, are valued at fair value by a Valuation Committee
appointed by the Board of Directors, in consultation with the Manager or
Subadviser. Investments in mutual funds are valued at their net asset value as
of the close of the New York Stock Exchange on the date of the 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.
Foreign Currency Translation: The books and records of the Fund are maintained
in U.S. dollars. Foreign currency amounts are translated into U.S. dollars on
the following basis:
(i) market value of investment securities, other assets and liabilities--at the
current rates of exchange.
(ii) purchases and sales of investment securities, income and expenses-at the
rates of exchange prevailing on the respective dates of such transactions.
Although the net assets of the Fund are presented at the foreign exchange rates
and market values at the close of the period, the Fund does not isolate that
portion of the results of operations arising as a result of changes in the
foreign exchange rates from the fluctuations arising from changes in the market
prices of the securities held at the end of the period. Similarly, the Fund does
not isolate the effect of changes in foreign exchange rates from the
fluctuations arising from changes in the market prices of long-term debt
securities sold during the period. Accordingly, such realized foreign currency
gains or losses are included in the reported net realized gains or losses on
investment transactions.
Net realized gains or losses on foreign currency transactions represent net
foreign exchange gains or losses from sales and maturities of short-term
securities and forward currency contracts, disposition of foreign currencies,
currency gains or losses realized between the trade and settlement dates on
securities transactions, and the difference between the amounts of interest,
discount and foreign withholding taxes recorded on the Fund's books and the U.S.
dollar equivalent amounts actually received or paid. Net currency gains or
losses resulting from the valuing of foreign currency denominated assets
(excluding investments) and liabilities at year-end exchange rates are reflected
as a component of net unrealized appreciation or depreciation on investments and
foreign currencies.
Foreign security and currency transactions may involve certain considerations
and risks not typically associated with those of U.S. companies as a result of,
among
Dryden Global Total Return Fund, Inc. 13
<Page>
other factors, the possibility of political or economic instability and the
level of governmental supervision and regulation of foreign securities markets.
Financial Futures Contracts: A financial futures contract is an agreement to
purchase (long) or sell (short) an agreed amount of securities at a set price
for delivery on a future date. Upon entering into a financial futures contract,
the Fund is required to pledge to the broker an amount of cash and/or other
assets equal to a certain percentage of the contract amount. This amount is
known as the 'initial margin.' Subsequent payments, known as 'variation margin,'
are made or received by the Fund each day, depending on the daily fluctuations
in the value of the underlying security. Such variation margin is recorded for
financial statement purposes on a daily basis as unrealized gain or loss. When
the contract expires or is closed, the gain or loss is realized and is presented
in the Statement of Operations as net realized gain or loss on financial futures
contracts.
The Fund invests in financial futures contracts in order to hedge existing
portfolio securities, or securities the Fund intends to purchase, against
fluctuations in value caused by changes in prevailing interest rates. Should
interest rates move unexpectedly, the Fund may not achieve the anticipated
benefits of the financial futures contracts and may realize a loss. The use of
futures transactions involves the risk of imperfect correlation in movements in
the price of futures contracts, interest rates and the underlying hedged assets.
Forward Currency Contracts: A forward currency contract is a commitment to
purchase or sell a foreign currency at a future date at a negotiated forward
rate. The Fund enters into forward currency contracts in order to hedge its
exposure to changes in foreign currency exchange rates on its foreign portfolio
holdings or on specific receivables and payables denominated in a foreign
currency. The contracts are valued daily at current forward exchange rates and
any unrealized gain or loss is included in net unrealized appreciation or
depreciation on investments and foreign currencies. Gain or loss is realized on
the settlement date of the contract equal to the difference between the
settlement value of the original and renegotiated forward contracts. This gain
or loss, if any, is included in net realized gain or loss on foreign currency
transactions. Risks may arise upon entering into these contracts from the
potential inability of the counterparties to meet the terms of their contracts.
Financial futures contracts and forward currency contracts involve elements of
both market and credit risk in excess of the amounts reflected on the Statement
of Assets and Liabilities.
Security Transactions and Net Investment Income: Security transactions are
recorded on the trade date. Realized and unrealized gains or losses on sales of
securities are calculated on the identified cost basis. Dividend income is
recorded on the
14 Visit our website at www.jennisondryden.com
<Page>
ex-dividend date. Interest income, including amortization of premium and
accretion of discount on debt securities, as required is recorded on the accrual
basis. Expenses are recorded on the accrual basis which may require the use of
certain estimates by management.
Net investment income (other than distribution fees which are charged directly
to the respective class) and unrealized and realized gains or losses are
allocated daily to each class of shares based upon the relative proportion of
net assets of each class at the beginning of the day.
Dividends and Distributions: The Fund expects to pay dividends of net investment
income and distributions of net realized capital gains, if any, annually.
Dividends and distributions to shareholders, which are determined in accordance
with federal income tax regulations and which may differ from generally accepted
accounting principles, are recorded on the ex-dividend date. Permanent book/tax
differences relating to income and gains are reclassified to paid in capital
when they arise.
Taxes: It is the Fund's policy to continue to meet the requirements of the
Internal Revenue Code applicable to regulated investment companies and to
distribute all of its taxable net income and capital gains, if any, to
shareholders. Therefore, no federal income or excise tax provision is required.
Withholding taxes on foreign interest are recorded, net of reclaimable amounts,
at the time the related income is earned.
NOTE 2. AGREEMENTS
The Fund has a management agreement with PI. Pursuant to this agreement, PI has
responsibility for all investment advisory services and supervises the
Subadvisor's performance of such services. PI has entered into a subadvisory
agreement with PIM. The subadvisory agreement provides that the subadvisor will
furnish investment advisory services in connection with the management of the
Fund. In connection therewith, the Subadvisor is obligated to keep certain books
and records of the Fund. PI pays for the services of PIM, the cost of
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 accrued daily and payable monthly at an annual
rate of .75 of 1% of the Fund's average daily net assets up to $500 million, .70
of 1% of such assets between $500 million and $1 billion, and .65 of 1% of such
assets in excess of $1 billion.
Dryden Global Total Return Fund, Inc. 15
<Page>
The Fund has a distribution agreement with Prudential Investment Management
Services LLC ('PIMS'), which acts as the distributor of the Class A, B, C and Z
shares of the Fund. The Fund compensates PIMS for distributing and servicing the
Fund's Class A, Class B and Class C shares, pursuant to plans of distribution
(the 'Class A, B and C Plans'), regardless of expenses actually incurred by it.
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 .75 of 1% of the average
daily net assets of the Class A, B and C shares, respectively, for the six
months ended June 30, 2003.
PIMS has advised the Fund that it has received approximately $12,700 and $400 in
front-end sales charges resulting from sales of Class A and Class C shares,
respectively, during the six months ended June 30, 2003. From these fees, PIMS
paid a substantial part of such sales charges to dealers, which in turn paid
commissions to salespersons and incurred other distribution costs.
PIMS has advised the Fund that for the six months ended June 30, 2003, it
received approximately $9,900 and $20 in contingent deferred sales charges
imposed upon certain redemptions by Class B and Class C shareholders,
respectively.
PI, PIM and PIMS 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 June 30, 2003, the SCA provides for a commitment
of $800 million and allows the Funds to increase the commitment to $1 billion,
if necessary. Interest on any borrowings under the SCA will be at market rates.
The Funds pay a commitment fee of .08 of 1% of the unused portion of the SCA.
The commitment fee is accrued and paid quarterly and is allocated to the Funds
pro rata based on net assets. The purpose of the SCA is to serve as an
alternative source of funding for capital share redemptions. The expiration date
of the SCA was May 2, 2003. On May 2, 2003, the SCA was renewed under the same
terms and conditions ('May 2003 renewal'). The expiration date of the May 2003
renewal is April 30, 2004. The Fund did not borrow any amounts pursuant to the
SCA during the six months ended June 30, 2003.
16 Visit our website at www.jennisondryden.com
<Page>
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 June 30, 2003, the Fund incurred fees of
approximately $180,800 for the services of PMFS. As of June 30, 2003,
approximately $28,400 of such fees were due to PMFS.
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
$19,300 in total networking fees, of which the amount relating to the services
of Prudential Securities, Inc. ('PSI'), was approximately $14,600 for the six
months ended June 30, 2003. As of June 30, 2003, approximately $2,400 of such
fees were due to PSI. These amounts are included in transfer agent's fees and
expenses in the Statement of Operations.
Effective July 1, 2003, PSI became a division of Wachovia Securities LLC of
which Prudential holds a minority interest. Prior to July 1, 2003, PSI was an
indirect, wholly-owned subsidiary of Prudential.
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 mutual fund
registered under the Investment Company Act of 1940, as amended, and managed by
PI. During the six months ended June 30, 2003, the Fund earned $79,994 from the
Series by investing its excess cash.
NOTE 4. PORTFOLIO SECURITIES
Purchases and sales of investment securities, other than short-term investments
for the six months ended June 30, 2003, aggregated $266,313,273 and
$280,493,323, respectively.
During the six months ended June 30, 2003, the Fund entered into financial
futures contracts. Details of open contracts at June 30, 2003 are as follows:
<Table>
<Caption>
VALUE AT VALUE AT
NUMBER OF EXPIRATION TRADE JUNE 30, UNREALIZED
CONTRACTS TYPE DATE DATE 2003 DEPRECIATION
- --------- -------------------- ----------- ----------- ----------- ---------------
Short Position:
61 10-yr T-Notes Sep. 2003 $ 7,133,188 $ 7,163,688 $ (30,500)
Long Positions:
90 2-yr Euro-Schatz Sep. 2003 11,034,835 11,031,734 (3,101)
54 20-yr U.S. T-Bonds Sep. 2003 6,404,023 6,336,563 (67,460)
33 5-yr Eurodollars Sep. 2003 4,313,649 4,295,080 (18,569)
5 10-yr Jpn. Bonds Sep. 2003 6,008,744 5,894,648 (114,096)
---------------
$(233,726)
---------------
---------------
</Table>
Dryden Global Total Return Fund, Inc. 17
<Page>
At June 30, 2003, the Fund had outstanding forward currency contracts to
purchase and sell foreign currencies as follows:
<Table>
<Caption>
VALUE AT
FOREIGN CURRENCY CURRENT SETTLEMENT DATE UNREALIZED UNREALIZED
PURCHASE CONTRACTS VALUE PAYABLE APPRECIATION DEPRECIATION
- ----------------------------- ------------ ---------------- ------------- --------------
Australian Dollars,
expiring 7/30/03 $ 3,352,322 $ 3,333,013 $ 19,309 --
Canadian Dollars,
expiring 7/28/03 2,266,720 2,290,000 -- $ (23,280)
Danish Krones,
expiring 7/16/03 2,674,396 2,733,570 -- (59,174)
Euros,
expiring 7/02/03 34,717,308 35,427,517 -- (710,209)
expiring 8/04/03 21,419,822 21,384,822 35,000 --
expiring 8/04/03 5,560,230 5,570,000 -- (9,770)
Japanese Yen,
expiring 7/02/03 29,395,441 29,608,891 -- (213,450)
expiring 8/04/03 21,628,974 21,650,474 -- (21,500)
Polish Zloty,
expiring 7/16/03 2,423,846 2,449,173 -- (25,327)
Swedish Kronas,
expiring 7/10/03 5,397,993 5,599,423 -- (201,430)
Swiss Francs,
expiring 7/02/03 2,413,902 2,410,431 3,471 --
expiring 7/16/03 2,253,549 2,255,360 -- (1,811)
------------ ---------------- ------------- --------------
$133,504,503 $134,712,674 $ 57,780 $ (1,265,951)
------------ ---------------- ------------- --------------
------------ ---------------- ------------- --------------
</Table>
<Table>
<Caption>
VALUE AT
FOREIGN CURRENCY CURRENT SETTLEMENT DATE UNREALIZED UNREALIZED
SALE CONTRACTS VALUE RECEIVABLE APPRECIATION DEPRECIATION
- ----------------------------- ------------ ---------------- ------------- --------------
Canadian Dollars,
expiring 7/28/03 $ 12,043,968 $ 12,165,135 $ 121,167 --
Euros,
expiring 7/02/03 16,775,958 17,221,542 445,584 --
expiring 7/02/03 18,269,350 18,247,680 -- $ (21,670)
expiring 7/16/03 2,266,839 2,255,360 -- (11,479)
expiring 8/04/04 4,034,200 4,014,400 -- (19,800)
Hungarian Forint,
expiring 7/16/03 3,116,030 3,260,805 144,775 --
Japanese Yen,
expiring 7/02/03 30,564,247 30,664,369 100,122 --
expiring 8/04/04 3,232,189 3,240,000 7,811 --
New Zealand Dollars,
expiring 7/30/03 2,326,041 2,317,088 -- (8,953)
Polish Zloty,
expiring 7/16/03 4,885,907 5,010,965 125,058 --
</Table>
18 Visit our website at www.jennisondryden.com
<Page>
<Table>
<Caption>
VALUE AT
FOREIGN CURRENCY CURRENT SETTLEMENT DATE UNREALIZED UNREALIZED
SALE CONTRACTS VALUE RECEIVABLE APPRECIATION DEPRECIATION
- ----------------------------- ------------ ---------------- ------------- --------------
Pound Sterling,
expiring 7/30/03 $ 4,397,542 $ 4,433,920 $ 36,378 --
Swedish Kronas,
expiring 7/10/03 3,507,036 3,607,859 100,823 --
Swiss Francs,
expiring 7/02/03 2,413,902 2,458,986 45,084 --
expiring 7/16/03 2,860,374 2,956,421 96,047 --
expiring 7/16/03 2,414,780 2,411,196 -- $ (3,584)
------------ ---------------- ------------- --------------
$113,108,363 $114,265,726 $ 1,222,849 $ (65,486)
------------ ---------------- ------------- --------------
------------ ---------------- ------------- --------------
</Table>
NOTE 5. TAX INFORMATION
The United States federal income tax basis of the Fund's investments and the
net unrealized appreciation as of June 30, 2003 were as follows:
NET UNREALIZED
TAX BASIS APPRECIATION DEPRECIATION APPRECIATION
- ----------------- --------------- --------------- -----------------
$207,475,025 $11,780,243 $(1,157,761) $10,622,482
The differences between book and tax basis are primarily attributable to
deferred losses on wash sales and amortization premiums.
For federal income tax purposes, the Fund had a capital loss carryforward as of
December 31, 2002, of approximately $20,797,100, of which $326,200 expires in
2003, $1,656,500 expires in 2005, $73,000 expires in 2006, $2,595,200 expires in
2007, $5,073,500 expires in 2008, $3,490,900 expires in 2009 and $7,581,800
expires in 2010. Accordingly, no capital gains distribution is expected to be
paid to shareholders until net gains have been realized in excess of such
carryforward. The capital loss carryforward differs from the amount on the
Statement of Assets and Liabilities primarily due to the Fund electing to treat
post-October capital losses of approximately $36,000 as having occurred in the
current fiscal year.
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 4%. In some limited 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 for the first fiscal year.
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 B
shares will
Dryden Global Total Return Fund, Inc. 19
<Page>
automatically convert to Class A shares on a quarterly basis approximately seven
years after purchase. 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. A
special exchange privilege is also available for shareholders who qualify to
purchase Class A shares at net asset value. Class Z shares are not subject to
any sales or redemption charge and are offered exclusively for sale to a limited
group of investors.
There are 2 billion authorized shares of common stock at $.01 par value per
share, divided equally into Class A, B, C and Z shares.
Transactions in shares of common stock were as follows:
<Table>
<Caption>
CLASS A SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------
Six months ended June 30, 2003:
Shares sold 953,991 $ 7,101,606
Shares issued in reinvestment of dividends 249,793 1,849,973
Shares reacquired (3,074,755) (23,172,663)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (1,870,971) (14,221,084)
Shares issued upon conversion from Class B 52,341 408,191
----------- ------------
Net increase (decrease) in shares outstanding (1,818,630) $(13,812,893)
----------- ------------
----------- ------------
Year ended December 31, 2002:
Shares sold 1,084,773 $ 7,522,821
Shares issued in reinvestment of dividends and distributions 591,982 4,069,148
Shares reacquired (5,305,213) (36,528,145)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion (3,628,458) (24,936,176)
Shares issued upon conversion from Class B 70,097 487,465
----------- ------------
Net increase (decrease) in shares outstanding (3,558,361) $(24,448,711)
----------- ------------
----------- ------------
<Caption>
CLASS B
- ------------------------------------------------------------
Six months ended June 30, 2003:
Shares sold 243,388 $ 1,816,013
Shares issued in reinvestment of dividends 15,479 115,102
Shares reacquired (150,135) (1,113,540)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion 108,732 817,575
Shares issued upon conversion into Class A (52,341) (408,191)
----------- ------------
Net increase (decrease) in shares outstanding 56,391 $ 409,384
----------- ------------
----------- ------------
Year ended December 31, 2002:
Shares sold 322,255 $ 2,221,044
Shares issued in reinvestment of dividends and distributions 34,185 235,368
Shares reacquired (308,773) (2,129,635)
----------- ------------
Net increase (decrease) in shares outstanding before
conversion 47,667 326,777
Shares issued upon conversion into Class A (70,118) (487,465)
----------- ------------
Net increase (decrease) in shares outstanding (22,451) $ (160,688)
----------- ------------
----------- ------------
</Table>
20 Visit our website at www.jennisondryden.com
<Page>
<Table>
<Caption>
CLASS C SHARES AMOUNT
- ------------------------------------------------------------ ----------- ------------
Six months ended June 30, 2003:
Shares sold 32,321 $ 241,377
Shares issued in reinvestment of dividends 1,740 12,910
Shares reacquired (8,367) (62,870)
----------- ------------
Net increase (decrease) in shares outstanding 25,694 $ 191,417
----------- ------------
----------- ------------
Year ended December 31, 2002:
Shares sold 35,125 $ 241,946
Shares issued in reinvestment of dividends and distributions 3,604 24,792
Shares reacquired (51,402) (358,799)
----------- ------------
Net increase (decrease) in shares outstanding (12,673) $ (92,061)
----------- ------------
----------- ------------
<Caption>
CLASS Z
- ------------------------------------------------------------
Six months ended June 30, 2003:
Shares sold 164,260 $ 1,226,915
Shares issued in reinvestment of dividends 12,784 94,826
Shares reacquired (181,205) (1,343,137)
----------- ------------
Net increase (decrease) in shares outstanding (4,161) $ (21,396)
----------- ------------
----------- ------------
Year ended December 31, 2002:
Shares sold 182,499 $ 1,268,232
Shares issued in reinvestment of dividends and distributions 31,511 216,628
Shares reacquired (439,639) (3,035,070)
----------- ------------
Net increase (decrease) in shares outstanding (225,629) $ (1,550,210)
----------- ------------
----------- ------------
</Table>
Dryden Global Total Return Fund, Inc. 21
<Page>
Financial Highlights
(Unaudited)
<Table>
<Caption>
CLASS A
-----------------
SIX MONTHS ENDED
JUNE 30, 2003(B)
-----------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.17
-------
INCOME FROM INVESTMENT OPERATIONS
Net investment income .06
Net realized and unrealized gain (loss) on investment and
foreign currencies .43
-------
Total from investment operations .49
-------
LESS DISTRIBUTIONS
Dividends from net investment income (.15)
Distributions in excess of net investment income --
Distributions from net realized capital gains --
Tax return of capital distributions --
-------
Total distributions (.15)
-------
Net asset value, end of period $ 7.51
-------
-------
TOTAL RETURN(A): 6.81%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 206,523
Average net assets (000) $ 213,234
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 1.44%(c)
Expenses, excluding distribution and service (12b-1) fees 1.19%(c)
Net investment income 1.63%(c)
FOR CLASS A, B, C, AND Z SHARES:
Portfolio turnover rate 127%(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) Calculated based upon weighted average shares outstanding during the year.
(c) Annualized.
(d) Not annualized.
See Notes to Financial Statements.
22 Visit our website at www.jennisondryden.com
<Page>
<Table>
<Caption>
CLASS A
----------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
2002 2001(B) 2000 1999(B) 1998(B)
----------------------------------------------------------------------------------------------------
$ 6.80 $ 7.10 $ 7.26 $ 8.03 $ 7.88
------- ------- ------- ------- -------
.26 .32 .42 .44 .52
.41 (.33) (.18) (.75) .16
------- ------- ------- ------- -------
.67 (.01) .24 (.31) .68
------- ------- ------- ------- -------
(.30) (.24) -- (.33) (.35)
-- -- -- -- (.02)
-- -- -- -- (.16)
-- (.05) (.40) (.13) --
------- ------- ------- ------- -------
(.30) (.29) (.40) (.46) (.53)
------- ------- ------- ------- -------
$ 7.17 $ 6.80 $ 7.10 $ 7.26 $ 8.03
------- ------- ------- ------- -------
------- ------- ------- ------- -------
10.13% (.15)% 3.49% (3.95)% 8.92%
$210,353 $223,683 $208,101 $257,548 $158,932
$212,828 $226,129 $225,914 $166,940 $171,427
1.46% 1.52% 1.62% 1.75% 1.33%
1.21% 1.27% 1.37% 1.50% 1.18%
3.78% 4.50% 5.74% 6.00% 6.42%
252% 237% 436% 132% 46%
</Table>
See Notes to Financial Statements.
Dryden Global Total Return Fund, Inc. 23
<Page>
Financial Highlights
(Unaudited) Cont'd.
<Table>
<Caption>
CLASS B
-----------------
SIX MONTHS ENDED
JUNE 30, 2003(B)
-----------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.18
-----
INCOME FROM INVESTMENT OPERATIONS
Net investment income .03
Net realized and unrealized gain (loss) on investment and
foreign currencies .43
-----
Total from investment operations .46
-----
LESS DISTRIBUTIONS
Dividends from net investment income (.12)
Distributions in excess of net investment income --
Distributions from net realized capital gains --
Tax return of capital distributions --
-----
Total distributions (.12)
-----
Net asset value, end of period $ 7.52
-----
-----
TOTAL RETURN(A): 6.40%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 8,254
Average net assets (000) $ 8,095
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 2.19%(c)
Expenses, excluding distribution and service (12b-1) fees 1.19%(c)
Net investment income .84%(c)
</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) Calculated based upon weighted average shares outstanding during the year.
(c) Annualized.
See Notes to Financial Statements.
24 Visit our website at www.jennisondryden.com
<Page>
<Table>
<Caption>
CLASS B
----------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
2002 2001(B) 2000 1999(B) 1998(B)
----------------------------------------------------------------------------------------------------
$ 6.81 $ 7.10 $ 7.26 $ 8.03 $ 7.89
----- ----- ----- ----- -----
.21 .28 .37 .40 .46
.41 (.31) (.17) (.76) .16
----- ----- ----- ----- -----
.62 (.03) .20 (.36) .62
----- ----- ----- ----- -----
(.25) (.21) -- (.28) (.30)
-- -- -- -- (.02)
-- -- -- -- (.16)
-- (.05) (.36) (.13) --
----- ----- ----- ----- -----
(.25) (.26) (.36) (.41) (.48)
----- ----- ----- ----- -----
$ 7.18 $ 6.81 $ 7.10 $ 7.26 $ 8.03
----- ----- ----- ----- -----
----- ----- ----- ----- -----
9.28% (.49)% 2.82% (4.35)% 8.13%
$7,480 $7,241 $6,145 $7,810 $3,625
$7,461 $7,120 $6,821 $4,642 $3,048
2.21% 2.02% 2.12% 2.25% 1.93%
1.21% 1.27% 1.37% 1.50% 1.18%
3.02% 4.01% 5.24% 5.49% 5.86%
</Table>
See Notes to Financial Statements.
Dryden Global Total Return Fund, Inc. 25
<Page>
Financial Highlights
(Unaudited) Cont'd.
<Table>
<Caption>
CLASS C
-----------------
SIX MONTHS ENDED
JUNE 30, 2003(B)
-----------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $ 7.17
-----
INCOME FROM INVESTMENT OPERATIONS
Net investment income .04
Net realized and unrealized gain (loss) on investment and
foreign currencies .42
-----
Total from investment operations .46
-----
LESS DISTRIBUTIONS
Dividends from net investment income (.13)
Distributions in excess of net investment income --
Distributions from net realized capital gains --
Tax return of capital distributions --
-----
Total distributions (.13)
-----
Net asset value, end of period $ 7.50
-----
-----
TOTAL RETURN(A): 6.41%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $890
Average net assets (000) $779
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 1.94%(c)
Expenses, excluding distribution and service (12b-1) fees 1.19%(c)
Net investment income .99%(c)
</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) Calculated based upon weighted average shares outstanding during the year.
(c) Annualized.
See Notes to Financial Statements.
26 Visit our website at www.jennisondryden.com
<Page>
<Table>
<Caption>
CLASS C
----------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
2002 2001(B) 2000 1999(B) 1998(B)
----------------------------------------------------------------------------------------------------
$ 6.81 $ 7.10 $ 7.26 $ 8.03 $ 7.89
------- ------ ------ ------ ------
.22 .28 .36 .40 .46
.40 (.31) (.16) (.76) .16
------- ------ ------ ------ ------
.62 (.03) .20 (.36) .62
------- ------ ------ ------ ------
(.26) (.21) -- (.28) (.30)
-- -- -- -- (.02)
-- -- -- -- (.16)
-- (.05) (.36) (.13) --
------- ------ ------ ------ ------
(.26) (.26) (.36) (.41) (.48)
------- ------ ------ ------ ------
$ 7.17 $ 6.81 $ 7.10 $ 7.26 $ 8.03
------- ------ ------ ------ ------
------- ------ ------ ------ ------
9.37% (.49)% 2.82% (4.35)% 8.13%
$666 $719 $424 $561 $275
$741 $564 $482 $354 $220
1.96% 2.02% 2.12% 2.25% 1.93%
1.21% 1.27% 1.37% 1.50% 1.18%
3.28% 3.97% 5.29% 5.51% 5.84%
</Table>
See Notes to Financial Statements.
Dryden Global Total Return Fund, Inc. 27
<Page>
Financial Highlights
(Unaudited) Cont'd.
<Table>
<Caption>
CLASS Z
-----------------
SIX MONTHS ENDED
JUNE 30, 2003(B)
-----------------------------------------------------------------------------------
PER SHARE OPERATING PERFORMANCE:
NET ASSET VALUE, BEGINNING OF PERIOD $7.18
-----
INCOME FROM INVESTMENT OPERATIONS
Net investment income .07
Net realized and unrealized gain (loss) on investment and
foreign currencies .42
-----
Total from investment operations .49
-----
LESS DISTRIBUTIONS
Dividends from net investment income (.16)
Distributions in excess of net investment income --
Distributions from net realized capital gains --
Tax return of capital distributions --
-----
Total distributions (.16)
-----
Net asset value, end of period $ 7.51
-----
-----
TOTAL RETURN(A): 6.80%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000) $ 5,094
Average net assets (000) $ 4,958
Ratios to average net assets:
Expenses, including distribution and service (12b-1) fees 1.19%(c)
Expenses, excluding distribution and service (12b-1) fees 1.19%(c)
Net investment income 1.84%(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 weighted average shares outstanding during the year.
(c) Annualized.
See Notes to Financial Statements.
28 Visit our website at www.jennisondryden.com
<Page>
<Table>
<Caption>
CLASS Z
----------------------------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31,
----------------------------------------------------------------------------------------------------
2002 2001(B) 2000 1999(B) 1998(B)
----------------------------------------------------------------------------------------------------
$ 6.81 $ 7.10 $ 7.27 $ 8.03 $ 7.88
----- ----- ------ ------ -----
.27 .35 .43 .42 .52
.42 (.33) (.18) (.71) .17
----- ----- ------ ------ -----
.69 .02 .25 (.29) .69
----- ----- ------ ------ -----
(.32) (.25) -- (.34) (.36)
-- -- -- -- (.02)
-- -- -- -- (.16)
-- (.06) (.42) (.13) --
----- ----- ------ ------ -----
(.32) (.31) (.42) (.47) (.54)
----- ----- ------ ------ -----
$ 7.18 $ 6.81 $ 7.10 $ 7.27 $ 8.03
----- ----- ------ ------ -----
----- ----- ------ ------ -----
10.37% .10% 3.78% (3.74)% 9.07%
$4,897 $6,179 $ 10,551 $ 12,847 $2,435
$5,334 $9,591 $ 11,136 $ 4,604 $1,771
1.21% 1.27% 1.37% 1.50% 1.18%
1.21% 1.27% 1.37% 1.50% 1.18%
4.07% 4.84% 5.98% 6.11% 6.65%
</Table>
See Notes to Financial Statements.
Dryden Global Total Return Fund, Inc. 29
<Page>
Supplemental Proxy Information
A meeting of the Fund's shareholders was held on July 2, 2003, in conjunction
with shareholder meetings for certain other funds within the JennisonDryden
Mutual Fund complex. The meeting was held for the following purposes:
(1) To elect the following ten individuals to serve on the Fund's Board of
Directors to a term until the earlier to occur (a) the next meeting of
shareholders at which Board Members are elected and until their successors
are elected and qualified or (b) until their terms expire in accordance with
each Fund's retirement policy which generally calls for the retirement of
Directors on December 31 of the year in which they reach the age of 75.
- David E. Carson
- Robert E. La Blanc
- Douglas H. McCorkindale
- Stephen P. Munn
- Richard A. Redeker
- Robin B. Smith
- Stephen Stoneburn
- Clay T. Whitehead
- Judy A. Rice
- Robert F. Gunia
(2) To approve a proposal to permit the manager to enter into, or make material
changes to, subadvisory agreements without shareholder approval.
(3) To permit an amendment to the management contract between PI and the Fund.
(4) To approve changes to fundamental investment restrictions and policies.
The results of the proxy solicitation on the above matters were:
DIRECTOR/MANAGER/ VOTES VOTES
INVESTMENT RESTRICTION FOR AGAINST ABSTENTIONS
----------------------------- ----------- ---------- -----------
(1) David E. Carson 18,805,710 -- --
Robert E. La Blanc 18,799,600 -- --
Douglas H. McCorkindale 18,822,781 -- --
Stephen P. Munn 18,829,047 -- --
Richard A. Redeker 18,819,631 -- --
Robin B. Smith 18,801,504 -- --
Stephen Stoneburn 18,814,693 -- --
30 Visit our website at www.jennisondryden.com
<Page>
DIRECTOR/MANAGER/ VOTES VOTES
INVESTMENT RESTRICTION FOR AGAINST ABSTENTIONS
----------------------------- ----------- ---------- -----------
Clay T. Whitehead 18,815,361 -- --
Judy A. Rice 18,815,959 -- --
Robert F. Gunia 18,814,620 -- --
(2) Subadvisory agreement 14,420,706 2,729,875 854,500
(3) Amendment to management
contract 16,737,533 2,246,624 918,212
(4) Fundamental investment restrictions
(4a) Issuing senior securities,
borrowing money or pledging
assets 14,829,436 2,265,221 910,425
(4b) Buying and selling real
estate 15,028,661 2,114,129 862,292
(4c) Buying and selling
commodities and commodity
contracts 14,789,576 2,254,258 961,248
(4d) Fund concentration 15,017,177 2,018,667 969,237
(4e) Making loans 14,721,102 2,400,672 883,307
(4f) Other investment
restrictions, including
investing in securities of
other investment companies 14,987,332 2,087,424 930,326
A meeting of the Fund's shareholders was held on July 24, 2003, in conjunction
with shareholder meetings for certain other funds within the Prudential Mutual
Fund complex. The meeting was held for the following purposes:
(1) To approve amendments to the Fund's Articles of Incorporation.
The result of the proxy solicitation on the above matter was:
VOTES VOTES
FOR AGAINST ABSTENTIONS
----------- ---------- -----------
(1) Amendments to the Articles
of Incorporation 15,425,565 1,846,510 989,650
Dryden Global Total Return Fund, Inc. 31
MAIL TELEPHONE WEBSITE
Gateway Center Three (800) 225-1852 www.jennisondryden.com
100 Mulberry Street
Newark, NJ 07102-4077
DIRECTORS
David E.A. Carson - Robert F. Gunia - Robert E.
La Blanc - Douglas H. McCorkindale - Stephen P.
Munn - Richard A. Redeker - Judy A. Rice -
Robin B. Smith - Stephen D. Stoneburn - Clay T. Whitehead
OFFICERS
Judy A. Rice, President - Robert F. Gunia, Vice
President - Grace C. Torres, Treasurer -
Marguerite E.H. Morrison, Chief Legal Officer
and Assistant Secretary - Maryanne Ryan, Anti-
Money Laundering Compliance Officer
- ---------------------------------------------------------------------------
MANAGER Prudential Investments LLC Gateway Center Three
100 Mulberry Street
Newark, NJ 07102-4077
- ---------------------------------------------------------------------------
INVESTMENT ADVISER Prudential Investment Gateway Center Two
Management, Inc. 100 Mulberry Street
Newark, NJ 07102
- ---------------------------------------------------------------------------
DISTRIBUTOR Prudential Investment Gateway Center Three
Management Services LLC 14th Floor
100 Mulberry Street
Newark, NJ 07102-4077
- ---------------------------------------------------------------------------
CUSTODIAN State Street Bank One Heritage Drive
and Trust Company North Quincy, MA 02171
- ---------------------------------------------------------------------------
TRANSFER AGENT Prudential Mutual Fund PO Box 8098
Services LLC 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
- ---------------------------------------------------------------------------
Dryden Global Total Return Fund, Inc.
Share Class A B C Z
Nasdaq GTRAX PBTRX PCTRX PZTRX
CUSIP 26243L105 26243L204 26243L303 26243L402
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 June 30, 2003 were not
audited and, accordingly, no auditors' opinion is expressed on them.
Mutual Funds:
ARE NOT INSURED BY THE FDIC OR ANY FEDERAL
GOVERNMENT AGENCY
MAY LOSE VALUE
ARE NOT A DEPOSIT OF OR GUARANTEED BY ANY BANK OR
ANY BANK AFFILIATE
JennisonDrydenMutualFunds
Dryden Global Total Return Fund, Inc.
Share Class A B C Z
Nasdaq GTRAX PBTRX PCTRX PZTRX
CUSIP 26243L105 26243L204 26243L303 26243L402
MF169E2 IFS-A083142
<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 Sections 302 and 906 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.
Dryden Gobal Total Return Fund, Inc.
By: /s/ Marguerite E.H. Morrison
----------------------------------------------------------
Marguerite E.H. Morrison
Assistant Secretary
Date: August 26, 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
Date: August 26, 2003
By: /s/ Grace C. Torres
----------------------------------------------------------
Grace C. Torres
Treasurer and Principal Financial Officer
Date: August 26, 2003