Prudential Mutual Funds
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                   PROSPECTUS SUPPLEMENT DATED JULY 23, 1999

Shareholder Guide

The section entitled 'Shareholder Guide' is amended as follows:

   The second through the sixth paragraphs under 'Alternative Purchase
Plan--Class A Shares--Reduction and Waiver of Initial Sales Charges' are amended
to read in their entirety as follows:

     Benefit Plans. Certain group retirement and savings plans may purchase
     Class A shares without the initial sales charge if they meet the required
     minimum for amount of assets, average account balance or number of eligible
     employees. For more information about these requirements, call Prudential
     at (800) 353-2847.

   The following is added after the end of the first paragraph under
'Alternative Purchase Plan--Class A Shares--Reduction and Waiver of Initial
Sales Charges--Other Waivers':

         Class A shares may also be purchased at NAV by members of the Board of
   Directors of The Prudential Insurance Company of America.

         Broker-dealers, investment advisers or financial planners sponsoring
   fee-based programs (such as mutual fund 'wrap' or asset allocation programs
   and mutual fund 'supermarket' programs) may offer their clients more than one
   class of shares in the Fund(s) in connection with different pricing options
   for their programs. Investors should consider carefully any separate
   transaction and other fees charged by these programs in connection with
   investing in each available share class before selecting a share class.

   The first two paragraphs under 'Alternative Purchase Plan--Class B and Class
C Shares--Waiver of Initial Sales Charge--Class C Shares' are amended to read in
their entirety as follows:

     Benefit Plans. Certain group retirement plans may purchase Class C shares
     without the initial sales charge. For more information, call Prudential at
     (800) 353-2847.

MF990C8



   The first paragraph under 'Alternative Purchase Plan--Class Z Shares' is
amended to read in its entirety as follows:

     Benefit Plans. Certain group retirement plans may purchase Class Z shares
     if they meet the required minimum for amount of assets, average account
     balance or number of eligible employees. For more information about these
     requirements, call Prudential at (800) 353-2847.

     Mutual Fund Programs. Class Z shares can also be purchased by participants
     in any fee-based program or trust program sponsored by Prudential or an
     affiliate that includes the Fund(s) as an available option. Class Z shares
     can also be purchased by investors in certain programs sponsored by
     broker-dealers, investment advisers and financial planners who have
     agreements with Prudential Investments Advisory Group relating to:

      - Mutual fund 'wrap' or asset allocation programs, where the sponsor
        places Fund trades, links its clients' accounts to a master account in
        the sponsor's name and charges its clients a management, consulting or
        other fee for its services; or

      - Mutual fund 'supermarket' programs, where the sponsor links its clients'
        accounts to a master account in the sponsor's name and the sponsor
        charges a fee for its services.

            Broker-dealers, investment advisers or financial planners sponsoring
      these mutual fund programs may offer their clients more than one class of
      shares in the Fund(s) in connection with different pricing options for
      their programs. Investors should consider carefully any separate
      transaction and other fees charged by these programs in connection with
      investing in each available share class before selecting a share class.

         Other Types of Investors. Class Z shares are also available for
      purchase by the following categories of investors:

            - Certain participants in the MEDLEY Program (group variable annuity
              contracts) sponsored by Prudential for whom Class Z shares of the
              Prudential mutual funds are an available investment option;

            - Current and former Directors/Trustees of the Prudential mutual
              funds (including the Fund); and

            - Prudential, with an investment of $10 million or more.


   The second paragraph under 'How to Sell Your Shares--Waiver of Contingent
Deferred Sales Charges--Class B Shares' is amended to read in its entirety as
follows:

         The CDSC will also be waived in the case of a total or partial
   redemption in connection with certain distributions made without penalty
   under the Internal Revenue Code from a tax-deferred retirement plan, an IRA
   or Section 403(b) custodial account. For more information, call Prudential at
   (800) 353-2847.

         The CDSC will also be waived to the extent that the proceeds from
   shares redeemed are invested in Prudential mutual funds, Prudential's
   Guaranteed Interest Account, Prudential's Guaranteed Insulated Separate
   Account or The Stable Value Fund.

   The section entitled 'How to Sell Your Shares--Waiver of Contingent Deferred
Sales Charges--Class C Shares' is amended to read in its entirety as follows:

     Benefit Plans. The CDSC will be waived for redemptions by certain group
     retirement plans for which Prudential or brokers not affiliated with
     Prudential provide administrative or recordkeeping services. The CDSC will
     also be waived for certain redemptions by benefit plans sponsored by
     Prudential and its affiliates. For more information, call Prudential at
     (800) 353-2847.

   Listed below are the names of the Prudential mutual funds and the dates of
the prospectuses to which this supplement relates.

Name of Fund                                Prospectus Date
- ----------------------------------------    -------------------
Global Utility Fund, Inc.                   November 27, 1998
Prudential Balanced Fund                    September 29, 1998
Prudential Developing Markets Fund
  Prudential Developing Markets Equity
  Fund                                      June 26, 1998
  Prudential Latin America Equity Fund      June 26, 1998
Prudential Diversified Funds                October 5, 1998
  Prudential Diversified Conservative
  Growth Fund
  Prudential Diversified Moderate Growth
  Fund
  Prudential Diversified High Growth Fund



Name of Fund                                Prospectus Date
- ----------------------------------------    -------------------
Prudential Global Genesis Fund, Inc.        July 31, 1998
Prudential Natural Resources Fund, Inc.     July 31, 1998
Prudential Small Company Value Fund, Inc.   November 30, 1998
The Prudential Investment Portfolios, Inc.  August 6, 1998
  Prudential Active Balanced Fund
  Prudential Jennison Growth Fund
  Prudential Jennison Growth & Income
  Fund