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