Notes to Financial Statements (Unaudited)
PRUDENTIAL EUROPE INDEX FUND
31, 1999, PIFM subsidized $163,433 of the expenses of the Fund (1.55% of average
daily net assets, annualized, or $0.09 per share).
The Fund has a distribution agreement with PIMS, which acts as the distributor
of the Fund. No distribution or service fees are paid to PIMS as distributor of
the Fund.
PIFM, PIMS and PIC are wholly owned subsidiaries of The Prudential.
As of March 11, 1999, the Fund, along with other unaffiliated registered
investment companies (the 'Funds'), entered into a syndicated agreement ('SCA')
with an unaffiliated lender. The maximum commitment under the SCA is $1 billion.
The Funds pay a commitment fee at an annual rate of .065 of 1% on the unused
portion of the credit facility, which is accrued and paid quarterly on a pro
rata basis by the Funds. The SCA expires on March 9, 2000. Prior to March 11,
1999, the Funds had a credit agreement with a maximum commitment of
$200,000,000. The commitment fee was .055 of 1% on the unused portion of the
credit facility. The Fund did not borrow any amounts pursuant to either
agreement during the six months ended March 31, 1999. The purpose of the
agreements is to serve as an alternative source of funding for capital share
redemptions.
Note 3. Other Transactions With Affiliates
Prudential Mutual Fund Services LLC ('PMFS'), a wholly owned subsidiary of PIFM,
serves as the Company's transfer agent. During the six months ended March 31,
1999, the Fund incurred fees of approximately $1,800 for the services of PMFS.
As of March 31, 1999, approximately $400 of such fees were due to PMFS. Transfer
agent fees and expenses in the Statement of Operations include certain
out-of-pocket expenses paid to nonaffiliates.
Note 4. Portfolio Securities
Purchases and sales of investment securities, other than short-term investments,
for the six months ended March 31, 1999 were $1,936,525 and $249,378,
respectively.
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