<PAGE>
                                                          1998
--------------------------------------------------------------------------------
Prudential Securities                                     Annual
Aggressive Growth Fund L.P.                               Report


<PAGE>
               PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
 
        LETTER TO LIMITED PARTNERS FOR THE YEAR ENDED DECEMBER 31, 1998
 
                                       1
 <PAGE>
<PAGE>
PricewaterhouseCoopers (LOGO)
 
                                   PricewaterhouseCoopers LLP
                                   1177 Avenue of the Americas
                                   New York, NY 10036
                                   Telephone (212) 596 8000
                                   Facsimile (212) 596 8910
 
                       Report of Independent Accountants
 
January 26, 1999
 
To the General Partner and
Limited Partners of
Prudential Securities Aggressive Growth Fund L.P.
 
In our opinion, the accompanying statements of financial condition and the
related statements of operations and changes in partners' capital present
fairly, in all material respects, the financial position of Prudential
Securities Aggressive Growth Fund L.P. at December 31, 1998 and 1997, and the
results of its operations for each of the three years in the period ended
December 31, 1998 in conformity with generally accepted accounting principles.
These financial statements are the responsibility of the general partner; our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates made by the
general partner, and evaluating the overall financial statement presentation. We
believe that our audits provide a reasonable basis for the opinion expressed
above.
 
/s/ PricewaterhouseCoopers LLP
 
                                       2
<PAGE>
               PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
                            (a limited partnership)
                       STATEMENTS OF FINANCIAL CONDITION
<TABLE>
<CAPTION>
                                                                               December 31,
                                                                        ---------------------------
                                                                            1998            1997
<S>                                                                     <C>              <C>
---------------------------------------------------------------------------------------------------
ASSETS
Equity in commodity trading accounts:
Cash                                                                     $1,440,981      $1,811,247
U.S. Treasury bills, at amortized cost                                    4,312,089       5,035,022
Net unrealized gain on open commodity positions                             203,654         131,368
                                                                        ------------     ----------
Net equity                                                                5,956,724       6,977,637
Organizational costs, net                                                        --           1,341
                                                                        ------------     ----------
Total assets                                                             $5,956,724      $6,978,978
                                                                        ------------     ----------
                                                                        ------------     ----------
 
LIABILITIES AND PARTNERS' CAPITAL
Liabilities
Redemptions payable                                                      $  280,222      $  597,404
Accrued expenses                                                             69,230          73,381
Management fees payable                                                       9,806          11,503
Options, at market                                                            2,856           3,725
                                                                        ------------     ----------
Total liabilities                                                           362,114         686,013
                                                                        ------------     ----------
 
Commitments
Partners' capital
Limited partners (51,636.285 and 65,699.974 units outstanding)            5,538,514       6,230,001
General partner (523 and 664 units outstanding)                              56,096          62,964
                                                                        ------------     ----------
Total partners' capital                                                   5,594,610       6,292,965
                                                                        ------------     ----------
Total liabilities and partners' capital                                  $5,956,724      $6,978,978
                                                                        ------------     ----------
                                                                        ------------     ----------
Net asset value per limited and general partnership unit ('Units')       $   107.26      $    94.83
                                                                        ------------     ----------
                                                                        ------------     ----------
---------------------------------------------------------------------------------------------------
                 The accompanying notes are an integral part of these statements.
</TABLE>
                                       3
<PAGE>
               PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
                            (a limited partnership)
                            STATEMENTS OF OPERATIONS
 
<TABLE>
<CAPTION>
                                                                    Year ended December 31,
                                                            ----------------------------------------
                                                               1998           1997           1996
<S>                                                         <C>            <C>            <C>
----------------------------------------------------------------------------------------------------
REVENUES
Net realized gain on commodity transactions                 $1,192,535     $  393,201     $1,575,922
Change in net unrealized gain on open commodity
  positions                                                     79,210        (40,219)      (415,076)
Interest income                                                313,707        452,931        491,688
                                                            ----------     ----------     ----------
                                                             1,585,452        805,913      1,652,534
                                                            ----------     ----------     ----------
EXPENSES
Commissions                                                    482,849        622,043        801,140
Other transaction fees                                          12,473         48,740         61,589
Management fees                                                122,340        155,528        201,323
Incentive fees                                                  76,578         19,952         21,247
General and administrative expenses                            140,849        158,710        163,232
Amortization of organizational costs                             1,156          2,906          4,221
                                                            ----------     ----------     ----------
                                                               836,245      1,007,879      1,252,752
                                                            ----------     ----------     ----------
Net income (loss)                                           $  749,207     $ (201,966)    $  399,782
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
ALLOCATION OF NET INCOME (LOSS)
Limited partners                                            $  741,707     $ (199,983)    $  401,458
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
General partner                                             $    7,500     $   (1,983)    $   (1,676)
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
NET INCOME (LOSS) PER WEIGHTED
AVERAGE UNIT
Net income (loss) per weighted average Unit                 $    12.46     $    (2.44)    $     3.40
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
Weighted average number of Units outstanding                    60,116         82,842     $  117,670
                                                            ----------     ----------     ----------
                                                            ----------     ----------     ----------
----------------------------------------------------------------------------------------------------
</TABLE>
 
                   STATEMENTS OF CHANGES IN PARTNERS' CAPITAL
<TABLE>
<CAPTION>
                                                              LIMITED       GENERAL
                                               UNITS         PARTNERS       PARTNER         TOTAL
<S>                                         <C>             <C>             <C>          <C>
----------------------------------------------------------------------------------------------------
Partners' capital--December 31, 1995        132,262.992     $11,704,062     $195,066     $11,899,128
Net income (loss)                                    --         401,458       (1,676)        399,782
Redemptions                                 (39,727.491)     (3,213,246)    (103,503)     (3,316,749)
                                            -----------     -----------     --------     -----------
Partners' capital--December 31, 1996         92,535.501       8,892,274       89,887       8,982,161
Net loss                                             --        (199,983)      (1,983)       (201,966)
Redemptions                                 (26,171.527)     (2,462,290)     (24,940)     (2,487,230)
                                            -----------     -----------     --------     -----------
Partners' capital--December 31, 1997         66,363.974       6,230,001       62,964       6,292,965
Net income                                           --         741,707        7,500         749,207
Redemptions                                 (14,204.689)     (1,433,194)     (14,368)     (1,447,562)
                                            -----------     -----------     --------     -----------
Partners' capital--December 31, 1998         52,159.285     $ 5,538,514     $ 56,096     $ 5,594,610
                                            -----------     -----------     --------     -----------
                                            -----------     -----------     --------     -----------
----------------------------------------------------------------------------------------------------
                  The accompanying notes are an integral part of these statements.
</TABLE>
                                       4
<PAGE>
               PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
                            (a limited partnership)
                         NOTES TO FINANCIAL STATEMENTS
 
A. General
 
   Prudential Securities Aggressive Growth Fund L.P. (the 'Partnership') is a
Delaware limited partnership which was formed on February 17, 1993 and will
terminate on December 31, 2013 unless ended sooner under the provisions of the
Amended and Restated Agreement of Limited Partnership (the 'Partnership
Agreement'). On August 2, 1993, the Partnership completed its initial offering
having raised $10,388,300 from the sale of 102,383 limited partnership units and
1,500 general partnership units (collectively, 'Units') and commenced
operations. The Partnership continued to offer Units on a monthly basis until
the continuous offering was terminated on January 31, 1995. Additional
contributions raised through the continuous offering resulted in additional net
proceeds to the Partnership of $9,988,243. The Partnership was formed to engage
in the speculative trading of a portfolio consisting primarily of commodity
futures, forward and options contracts. The general partner is Prudential
Securities Futures Management Inc. (the 'General Partner'), a wholly owned
subsidiary of Prudential Securities Incorporated ('PSI'), which, in turn, is a
wholly owned subsidiary of Prudential Securities Group Inc. ('PSGI'). PSI was
the principal underwriter of the limited partnership units and is the commodity
broker ('Commodity Broker') of the Partnership. The General Partner is required
to maintain at least a 1% interest in the Partnership as long as it is acting as
the Partnership's general partner.
 
   The General Partner generally maintains not less than 75% of the net asset
value in interest-bearing U.S. Government obligations (primarily U.S. Treasury
bills), a significant portion of which is utilized for margin purposes for the
Partnership's commodity trading activities. The remaining 25% is held in cash in
the Partnership's commodity trading accounts.
 
   All trading decisions for the Partnership since October 1, 1997 are made by
Eagle Trading Systems, Inc. ('Eagle') and Welton Investment Corporation ('WIC'),
independent commodity trading managers. Eagle replaced Sjo, Inc. ('Sjo') as a
trading manager effective October 1, 1997. Eagle receives management fees at the
same rate as did Sjo (a monthly fee on traded assets equal to a 2% annual rate).
In addition, Eagle earns a quarterly incentive fee equal to 23% of New High Net
Trading Profits (as defined in the Advisory Agreement among the Partnership, the
General Partner and Eagle) as compared to a monthly incentive fee of 15% paid to
Sjo. Eagle, WIC and Sjo are collectively referred to as the 'Trading Managers.'
The General Partner retains the authority to override trading instructions that
violate the Partnership's trading policies.
 
B. Summary of Significant Accounting Policies
 
Basis of accounting
 
   The books and records of the Partnership are maintained on the accrual basis
of accounting in accordance with generally accepted accounting principles.
 
   The preparation of financial statements in conformity with generally accepted
accounting principles requires the General Partner to make estimates and
assumptions that affect the reported amounts of liabilities at the date of the
financial statements and the reported amounts of expenses during the reporting
period. Actual results could differ from those estimates.
 
   Commodity futures and forward transactions are reflected in the accompanying
statements of financial condition on trade date. The difference between the
original contract amount and market value is reflected as net unrealized gain or
loss. Option transactions are reflected in the statements of financial condition
at market value which is inclusive of the net unrealized gain or loss. The
market value of each contract is based upon the closing quotation on the
exchange, clearing firm or bank on, or through, which the contract is traded.
 
   To the extent practicable, the Partnership invests a significant portion of
its net asset value in U.S. Treasury bills which are often used to fulfill
margin requirements. U.S. Treasury bills are carried at amortized cost, which
approximates market value. Interest earned on these obligations accrues for the
benefit of the Partnership. See Note D for additional discussion on interest
income.
 
                                       5
<PAGE>
   The weighted average number of Units outstanding was computed for purposes of
disclosing net income (loss) per weighted average Unit. The weighted average
Units are equal to the number of Units outstanding at year end, adjusted
proportionately for Units redeemed based on their respective time outstanding
during the year.
 
   The Partnership has elected not to provide a Statement of Cash Flows as
permitted by Statement of Financial Accounting Standards No. 102, 'Statement of
Cash Flows--Exemption of Certain Enterprises and Classification of Cash Flows
from Certain Securities Acquired for Resale.'
 
Income taxes
 
   The Partnership is not required to provide for, or pay, any Federal or state
income taxes. Income tax attributes that arise from the Partnership's operations
are passed directly to the individual partners. The Partnership may be subject
to other state and local taxes in jurisdictions in which it operates.
 
Profit and loss allocations, distributions, and redemptions
 
   Net realized profits or losses for tax purposes are allocated first to
partners who redeem Units to the extent the amounts received on redemption are
greater than or are less than the amounts paid for the redeemed Units by the
partners. Net realized profits or losses remaining after these allocations are
allocated to each partner in proportion to such partner's capital account at
year-end. Net income or loss for financial reporting purposes is allocated
monthly to all partners on a pro rata basis based on each partner's number of
Units outstanding during the month.
 
   Distributions (other than on redemptions of Units) are made at the sole
discretion of the General Partner on a pro rata basis in accordance with the
respective capital accounts of the partners. No distributions have been made
since inception.
 
   The Partnership Agreement provides that a partner may redeem Units as of the
last business day of any full calendar quarter at the then current net asset
value per Unit reduced by each Unit's pro rata portion of unamortized
organizational costs.
 
New Accounting Guidance
 
   In June 1998, the Financial Accounting Standards Board issued Statement No.
133, Accounting for Derivative Instruments and Hedging Activities ('SFAS 133'),
which the Partnership is required to adopt effective January 1, 2000. SFAS 133
establishes accounting and reporting standards for derivative instruments and
for hedging activities and requires that an entity recognize all derivatives as
assets or liabilities measured at fair value. The Partnership does not believe
the effect of adoption will be material.
 
C. Costs, Fees and Expenses
 
Organizational and offering costs
 
   The Partnership was responsible for all of its organizational and offering
expenses, subject to a limitation of 2% of the gross proceeds to the
Partnership. Costs in excess of the 2% limitation were the responsibility of the
General Partner and/or its affiliates. Offering costs were charged directly to
partners' capital. Costs incurred to organize the Partnership were considered
deferred organizational costs and were capitalized and amortized over a 60-month
period which concluded during 1998. As of December 31, 1997, the accumulated
amortization of such costs was $25,648. During the years ended December 31, 1998
and 1997, organizational costs were reduced by each redeeming Unit's pro rata
portion of the unamortized balance in the amount of $185 and $910, respectively.
 
Commissions
 
   The General Partner, on behalf of the Partnership, entered into an agreement
with PSI to act as Commodity Broker whereby the Partnership pays a fixed monthly
fee for brokerage services rendered. The monthly fee equals 2/3 of 1% (8% per
annum) of the Partnership's net asset value as of the first day of each month.
In addition, the Partnership is obligated to pay the National Futures
Association, exchange and clearing fees incurred in connection with the
Partnership's commodity trading activities.
 
                                       6
<PAGE>
Management and incentive fees
 
   The Partnership pays each Trading Manager a monthly management fee of 1/6 of
1% (2% per annum) of the portion of the Partnership's net asset value allocated
to that Trading Manager as of the last day of each month. In addition, the
Partnership pays WIC a monthly incentive fee equal to 15% and Eagle a quarterly
incentive fee equal to 23% of the 'New High Net Trading Profits' (as defined in
the Advisory Agreement among the Partnership, the General Partner and each
Trading Manager).
 
   See Note A for further information concerning a change in Trading Managers
which resulted in a change to incentive fees during 1997.
 
General and administrative fees
 
   In addition to the costs, fees and expenses previously discussed, the
Partnership reimburses the General Partner and its affiliates for actual
Partnership operating expenses payable by, or allocable to, the Partnership. The
amount of reimbursement from the Partnership is limited by the provisions of the
Partnership Agreement. The Partnership also pays amounts directly to unrelated
parties for certain operating expenses.
 
D. Related Parties
 
   The General Partner and its affiliates perform services for the Partnership,
which include but are not limited to: brokerage services; accounting and
financial management; registrar; transfer and assignment functions; investor
communications; printing services and other administrative services. The costs
incurred for these services for the three years ended December 31, 1998 were:
 
<TABLE>
<CAPTION>
                                             1998        1997        1996
                                           --------    --------    --------
<S>                                        <C>         <C>         <C>
  Commissions                              $482,849    $622,043    $801,140
  General and administrative                 69,627      92,905      96,039
                                           --------    --------    --------
                                           $552,476    $714,948    $897,179
                                           --------    --------    --------
                                           --------    --------    --------
</TABLE>
 
   Expenses payable to the General Partner and its affiliates (which are
included in accrued expenses) as of December 31, 1998 and 1997 were $16,583 and
$19,078, respectively.
 
   The Partnership's assets are maintained either in trading or cash accounts
with PSI or, for margin purposes, with the various exchanges on which the
Partnership is permitted to trade.
 
   The Partnership, acting through its Trading Managers, executes
over-the-counter, spot, forward and/or option foreign exchange transactions with
PSI. PSI then engages in back-to-back trading with an affiliate,
Prudential-Bache Global Markets Inc. ('PBGM'). PBGM attempts to earn a profit on
such transactions. PBGM keeps its prices on foreign currency competitive with
other interbank currency trading desks. All over-the-counter currency
transactions are conducted between PSI and the Partnership pursuant to a line of
credit. PSI may require that collateral be posted against the marked-to-market
position of the Partnership.
 
   In addition to interest earned on approximately 75% of Partnership assets
invested in U.S. Treasury bills, PSI credits the Partnership monthly with 100%
of the interest it earns on the average remaining equity balances in the
Partnership's accounts (approximately 25% of Partnership assets).
 
   As of December 31, 1998, a non-U.S. affiliate of the General Partner owns
299.772 limited partnership units of the Partnership.
 
E. Income Taxes
 
   There have been no differences between the tax basis and book basis of
partners' capital from the commencement of operations through December 31, 1998.
 
F. Credit and Market Risk
 
   Since the Partnership's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk).
 
   Futures, forward and options contracts involve varying degrees of off-balance
sheet risk; and changes in the level or volatility of interest rates, foreign
currency exchange rates or the market values of the contracts
 
                                       7
<PAGE>
(or commodities underlying the contracts) frequently result in changes in the
Partnership's unrealized gain (loss) on open commodity positions reflected in
the statements of financial condition. The Partnership's exposure to market risk
is influenced by a number of factors including the relationships among the
contracts held by the Partnership as well as the liquidity of the markets in
which the contracts are traded.
 
   Futures and options contracts are traded on organized exchanges and are thus
distinguished from forward contracts which are entered into privately by the
parties. The credit risks associated with futures and options contracts are
typically perceived to be less than those associated with forward contracts,
because exchanges typically provide clearinghouse arrangements in which the
collective credit (subject to certain limitations) of the members of the
exchanges is pledged to support the financial integrity of the exchange. On the
other hand, the Partnership must rely solely on the credit of its broker (PSI)
with respect to forward transactions. The Partnership presents unrealized gains
and losses on open forward positions as a net amount in the statements of
financial condition because it has a master netting agreement with PSI.
 
   The General Partner attempts to minimize both credit and market risks by
requiring the Partnership's Trading Managers to abide by various trading
limitations and policies. The General Partner monitors compliance with these
trading limitations and policies which include, but are not limited to,
executing and clearing all trades with creditworthy counterparties (currently,
PSI is the sole counterparty or broker); limiting the amount of margin or
premium required for any one commodity or all commodities combined; and
generally limiting transactions to contracts which are traded in sufficient
volume to permit the taking and liquidating of positions. The General Partner
may impose additional restrictions (through modifications of such trading
limitations and policies) upon the trading activities of the Trading Managers as
it, in good faith, deems to be in the best interests of the Partnership.
 
   PSI, when acting as the Partnership's futures commission merchant in
accepting orders for the purchase or sale of domestic futures and options
contracts, is required by Commodity Futures Trading Commission ('CFTC')
regulations to separately account for and segregate as belonging to the
Partnership all assets of the Partnership relating to domestic futures and
options trading and is not to commingle such assets with other assets of PSI. At
December 31, 1998, such segregated assets totalled $3,858,606. Part 30.7 of the
CFTC regulations also requires PSI to secure assets of the Partnership related
to foreign futures and options trading which totalled $2,207,274 at December 31,
1998. There are no segregation requirements for assets related to forward
trading.
 
   As of December 31, 1998, the Partnership's open futures, forward and options
contracts mature within six months.
 
   At December 31, 1998 and 1997, gross contract amounts of open futures,
forward and options contracts are:
 
<TABLE>
<CAPTION>
                                                      1998            1997
                                                  ------------    ------------
<S>                                               <C>             <C>
Financial Futures and Options Contracts:
  Commitments to purchase                         $24,959,772     $31,963,286
  Commitments to sell                              13,403,515       3,430,271
Currency Futures and Options Contracts:
  Commitments to purchase                             913,406       1,371,557
  Commitments to sell                                 413,435       7,726,254
Currency Forward Contracts:
  Commitments to purchase                             112,012         173,921
  Commitments to sell                                      --       8,190,630
Other Futures Contracts:
  Commitments to purchase                                  --          48,400
  Commitments to sell                               2,069,906       3,413,653
</TABLE>
 
   The gross contract amounts represent the Partnership's potential involvement
in a particular class of financial instrument (if it were to take or make
delivery on an underlying futures, forward or options contract). The gross
contract amounts significantly exceed the future cash requirements as the
Partnership intends to close out open positions prior to settlement and thus is
generally subject only to the risk of loss arising from the change in the value
of the contracts. As such, the Partnership considers the 'fair value' of its
futures, forward and options contracts to be the net unrealized gain or loss on
the contracts (plus premiums on options). Thus, the amount at risk associated
with counterparty nonperformance of all contracts is the net
 
                                       8
<PAGE>
unrealized gain included in the statements of financial condition. The market
risk associated with the Partnership's commitments to purchase commodities is
limited to the gross contract amounts involved, while the market risk associated
with its commitments to sell is unlimited since the Partnership's potential
involvement is to make delivery of an underlying commodity at the contract
price; therefore, it must repurchase the contract at prevailing market prices.
 
   At December 31, 1998 and 1997, the fair value of open futures, forward and
options contracts was:
 
<TABLE>
<CAPTION>
                                                    1998                       1997
                                           -----------------------    -----------------------
<S>                                        <C>         <C>            <C>         <C>
                                            Assets     Liabilities     Assets     Liabilities
                                           --------    -----------    --------    -----------
Futures Contracts:
  Domestic exchanges
     Financial                             $ 43,125     $      --     $  4,438     $      --
     Currencies                              13,010        14,225       77,423        20,787
     Other                                   21,750         6,870      107,158            --
  Foreign exchanges
     Financial                              241,300         1,536       33,537         2,970
     Other                                   19,112            --        6,400        48,400
Forwards Contracts:
     Currencies                                  --       112,012      170,173       195,604
Options Contracts:
  Domestic exchanges
     Financial                                   --           656           --         3,725
     Currencies                                  --         2,200           --            --
                                           --------    -----------    --------    -----------
                                           $338,297     $ 137,499     $399,129     $ 271,486
                                           --------    -----------    --------    -----------
                                           --------    -----------    --------    -----------
</TABLE>
 
   The following table presents the average fair value of futures, forward and
options contracts during the years ended December 31, 1998 and 1997,
respectively.
 
<TABLE>
<CAPTION>
                                                    1998                       1997
                                           -----------------------    -----------------------
<S>                                        <C>         <C>            <C>         <C>
                                            Assets     Liabilities     Assets     Liabilities
                                           --------    -----------    --------    -----------
Futures Contracts:
  Domestic exchanges
     Financial                             $ 36,225     $   1,646     $ 16,325     $     851
     Currencies                              85,720        10,733      103,491         8,945
     Other                                   44,956         6,368        8,243         2,066
  Foreign exchanges
     Financial                              186,161        12,847      168,893        33,150
     Other                                    9,158        35,223          492        18,981
Forwards Contracts:
     Currencies                             109,098       185,611       53,084        67,321
Options Contracts:
  Domestic exchanges
     Financial                                   --        15,042           --        24,578
     Currencies                                  --         2,672        2,215         6,673
  Foreign exchanges
     Financial                                   --            20        3,787         2,501
                                           --------    -----------    --------    -----------
                                           $471,318     $ 270,162     $356,530     $ 165,066
                                           --------    -----------    --------    -----------
                                           --------    -----------    --------    -----------
</TABLE>
                                       9
<PAGE>
   The following table presents the trading revenues from futures, forward and
options contracts during the three years ended December 31, 1998:
 
<TABLE>
<CAPTION>
                                              1998         1997         1996
                                           ----------    --------    ----------
<S>                                        <C>           <C>         <C>
Futures Contracts:
  Domestic exchanges
     Financial                             $  250,541    $138,719    $      500
     Currencies                              (161,730)    (64,498)      212,798
     Other                                    165,562      37,086         1,840
  Foreign exchanges
     Financial                              1,496,944     267,972       893,976
     Currencies                                --           --            3,036
     Other                                    (41,749)    (92,775)       --
Forwards Contracts:
     Currencies                              (459,553)    (25,431)       --
Options Contracts:
  Domestic exchanges
     Financial                                 74,225      89,241        64,312
     Currencies                               (52,495)     34,794        --
  Foreign exchanges
     Financial                                 --         (32,126)      (15,616)
                                           ----------    --------    ----------
                                           $1,271,745    $352,982    $1,160,846
                                           ----------    --------    ----------
                                           ----------    --------    ----------
</TABLE>
                                       10
<PAGE>
               PRUDENTIAL SECURITIES AGGRESSIVE GROWTH FUND L.P.
                            (a limited partnership)
               MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                      CONDITION AND RESULTS OF OPERATIONS
 
Liquidity and Capital Resources
 
   The Partnership commenced trading operations on August 2, 1993 with net
proceeds of $10,180,534. The Partnership continued to offer Units on a monthly
basis until the continuous offering was terminated on January 31, 1995.
Additional contributions raised through the continuous offering resulted in
additional net proceeds to the Partnership of $9,988,243.
 
   At December 31, 1998, 100% of the Partnership's net assets were allocated to
commodities trading. A significant portion of the net asset value was held in
U.S. Treasury bills (which represented approximately 73% of the net asset value
prior to redemptions payable) and cash, which are used as margin for the
Partnership's trading in commodities. Inasmuch as the sole business of the
Partnership is to trade in commodities, the Partnership continues to own such
liquid assets to be used as margin.
 
   The commodity contracts are subject to periods of illiquidity because of
market conditions, regulatory considerations and other reasons. For example,
commodity exchanges limit fluctuations in certain commodity futures contract
prices during a single day by regulations referred to as 'daily limits.' During
a single day no trades may be executed at prices beyond the daily limit. Once
the price of a futures contract for a particular commodity has increased or
decreased by an amount equal to the daily limit, positions in the commodity can
neither be taken nor liquidated unless traders are willing to effect trades at
or within the daily limit. Commodity futures prices have occasionally moved the
daily limit for several consecutive days with little or no trading. Such market
conditions could prevent the Partnership from promptly liquidating its commodity
futures positions.
 
   Since the Partnership's business is to trade futures, forward and options
contracts, its capital is at risk due to changes in the value of these contracts
(market risk) or the inability of counterparties to perform under the terms of
the contracts (credit risk). The Partnership's exposure to market risk is
influenced by a number of factors including the volatility of interest rates and
foreign currency exchange rates, the liquidity of the markets in which the
contracts are traded and the relationship among the contracts held. The inherent
uncertainty of the Partnership's speculative trading as well as the development
of drastic market occurrences could result in monthly losses considerably beyond
the Partnership's experience to date and could ultimately lead to a loss of all
or substantially all of investors' capital. The General Partner attempts to
minimize these risks by requiring the Partnership's Trading Managers to abide by
various trading limitations and policies. See Note F to the financial statements
for a further discussion on the credit and market risks associated with the
Partnership's futures, forward and options contracts.
 
   Redemptions by limited partners and the General Partner for the year ended
December 31, 1998 were $1,433,194 and $14,368, respectively. Redemptions
recorded from the commencement of operations in August 1993 through December 31,
1998 were $14,124,220 for the limited partners and $142,811 for the General
Partner. Future redemptions will impact the amount of funds available for
investments in commodity contracts in subsequent periods.
 
   The Partnership does not have, nor does it expect to have, any capital
assets.
 
Results of Operations
 
   The net asset value per Unit as of December 31, 1998 was $107.26, an increase
of 13.11% from the December 31, 1997 net asset value per Unit of $94.83, which
was a decrease of 2.31% from the December 31, 1996 net asset value per Unit of
$97.07. The MAR (Managed Account Reports) Fund/Pool Index, which tracked the
performance of 281 and 315 futures funds in 1998 and 1997, returned 6.57% and
9.34%, respectively. Past performance is not necessarily indicative of future
results.
 
   During 1998, the Partnership accumulated profits in the energy, financial,
grain, and index sectors which were partially offset by losses in the currency
and metal sectors.
 
   The Partnership profited significantly from positions in the financial
sector, which provided various opportunities throughout the year. Events in the
Far East drove sector performance as investors moved from stocks to bonds in
search of higher quality investments. Japanese government bond positions (JGBs)
 
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particularly profited the Partnership as investors reacted throughout the year
to news concerning the Japanese government's economic stimulus package. Rising
concerns in the third quarter regarding the soundness of Japanese banks and the
devaluation of the Russian ruble drove investors out of stocks and back into
bonds. In the fourth quarter, market volatility forced the Partnership to close
many financial sector positions and limit exposure.
 
   Global stock market activity across the board added profits to the
Partnership. For example, in the first quarter, gains were achieved from
positions in the NASDAQ (U.S.), CAC 40 (France), DAX (Germany), and IBEX (Spain)
indices.
 
   Volatility throughout the year made for an unprofitable currency sector.
Although Canadian dollar positions provided gains, the Partnership experienced
currency sector losses as trends in European and Japanese currencies failed to
materialize.
 
   Interest income is earned on the Partnership's investment in U.S. Treasury
bills (approximately 75% of its net asset value) and on the remaining 25% of its
net asset value which receives an interest credit from PSI. Interest income
varies monthly according to interest rates, trading performance and redemptions.
Interest income decreased by approximately $139,000 for the year ended December
31, 1998 as compared to 1997. Approximately $54,000 of the decline in interest
income relates to an interest income adjustment recorded during the three months
ended September 30, 1997. Additionally, decreases in interest income also
resulted from a decline in interest rates during 1998 and from redemptions
during 1997 and 1998 which reduced the Partnership's net assets, including its
investments in U.S. Treasury bills. Interest income decreased by approximately
$39,000 for the year ended December 31, 1997 as compared to 1996 primarily as a
result of redemptions during 1996 and 1997 which reduced the Partnership's net
assets.
 
   Commissions are calculated on the Partnership's net asset value as of the
first day of each month and, therefore, vary according to trading performance
and redemptions. Commissions decreased by approximately $139,000 for the year
ended December 31, 1998 as compared to 1997 and approximately $179,000 for the
year ended December 31, 1997 as compared to 1996 primarily due to the effect of
redemptions on the monthly net asset values.
 
   Other transaction fees consist of National Futures Association, exchange and
clearing fees which are based on the number of trades the Trading Managers
execute. Other transaction fees decreased by approximately $36,000 for the year
ended December 31, 1998 as compared to 1997 and decreased approximately $13,000
for the year ended December 31, 1997 as compared to 1996. These declines were
due to a decline in trading volume resulting from lower average net asset values
caused by redemptions. In addition, the October 1997 replacement of Sjo, Inc.
with Eagle Trading Systems, Inc. as a trading manager to the Partnership led to
lower transaction fees as a result of the different trading strategies executed
by the respective trading managers.
 
   All trading decisions are currently being made by Eagle and WIC. Management
fees are calculated on the portion of the Partnership's net asset value
allocated to each Trading Manager at the end of each month and, therefore, are
affected by trading performance and redemptions. Management fees decreased by
approximately $33,000 for the year ended December 31, 1998 as compared to 1997
and approximately $46,000 for the year ended December 31, 1997 as compared to
1996 for the same reasons commissions decreased as described above.
 
   Incentive fees are based on the New High Net Trading Profits generated by
each Trading Manager, as defined in the Advisory Agreement between the
Partnership, the General Partner and each Trading Manager. During the years
ended December 31, 1998, 1997 and 1996 the Partnership paid incentive fees of
approximately $77,000, $20,000 and $21,000 as a result of trading profits
generated by one of the Partnership's Trading Managers during each year; Eagle
in 1998, WIC in 1997 and Sjo in 1996.
 
   General and administrative expenses decreased by approximately $18,000 for
the year ended December 31, 1998 as compared to 1997 and approximately $5,000
for the year ended December 31, 1997 as compared to 1996. These expenses include
reimbursements of costs incurred by the General Partner on behalf of the
Partnership in addition to accounting, audit, tax and legal fees as well as
printing and postage costs related to reports sent to limited partners.
 
                                       12
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New Accounting Guidance
 
   In June 1998, the Financial Accounting Standards Board issued Statement No.
133, Accounting for Derivative Instruments and Hedging Activities ('SFAS 133'),
which the Partnership is required to adopt effective January 1, 2000. SFAS 133
establishes accounting and reporting standards for derivative instruments and
for hedging activities and requires that an entity recognize all derivatives as
assets or liabilities measured at fair value. The Partnership does not believe
the effect of adoption will be material.
 
Year 2000 Risk
 
   Investment funds, like financial and business organizations and individuals
around the world, depend on the smooth functioning of computer systems. The year
2000, however, holds the potential for a significant disruption in the operation
of these systems. Many computer systems in use today cannot distinguish the year
2000 from the year 1900 because of the way in which dates are encoded. This is
commonly known as the 'Year 2000 Problem.' The Partnership could be adversely
affected if computer systems used by it or any third party with whom it has a
material relationship do not properly perform date comparisons and calculations
concerning dates on or after January 1, 2000, which in turn could have a
negative impact on the handling or determination of trades and prices and the
services provided to the Partnership.
 
   The Partnership has engaged third parties to perform primarily all of the
services it needs. Accordingly, the Partnership's Year 2000 problems, if any,
are not its own but those that center around the ability of the General Partner,
Prudential Securities Incorporated, its trading managers and any other third
party with whom the Partnership has a material relationship (individually, as
'Service Provider,' and collectively, the 'Service Providers') to address and
correct problems that may cause their systems not to function as intended as a
result of the Year 2000 Problem.
 
   The Partnership has received assurances from its General Partner and
Prudential Securities Incorporated that they anticipate being able to continue
their operations without any material adverse impact from the Year 2000 Problem.
Although other Service Providers, such as the Partnership's trading managers,
have not made similar representations to the Partnership, the Partnership has no
reason to believe that these Service Providers will not take steps necessary to
avoid any material adverse impact on the Partnership, though there can be no
assurance that this will be the case. The costs or consequences of incomplete or
untimely resolution of the Year 2000 Problem by the Service Providers, or by
governments, exchanges, clearing houses, regulators, banks and other third
parties, are unknown to the Partnership at this time, but could have a material
adverse impact on the operations of the Partnership. The General Partner will
promptly notify the Partnership's limited owners in the event it determines that
the Year 2000 Problem will have a material adverse impact on the Partnership's
operations.
 
   The Partnership has considered various alternatives as a contingency plan. If
the Year 2000 Problems are systemic, for example, the federal government, the
banking system, exchanges or utilities are affected materially, there may be no
adequate contingency plan for the Partnership to follow other than to suspend
operations. If the Year 2000 Problems are related to one or more of the other
Service Providers selected by the Partnership, the Partnership believes that
each such Service Provider is prepared to address any Year 2000 Problems which
arise that could have a material adverse impact on the Partnership's operations.
 
Inflation
 
   Inflation has had no material impact on operations or on the financial
condition of the Partnership from inception through December 31, 1998.
 
                                       13
<PAGE>
--------------------------------------------------------------------------------
 
   I hereby affirm that, to the best of my knowledge and belief, the information
contained herein relating to Prudential Securities Aggressive Growth Fund L.P.
is accurate and complete.
 
     PRUDENTIAL SECURITIES FUTURES
     MANAGEMENT INC.
     (General Partner)
 
     By: Barbara J. Brooks
     Chief Financial Officer
--------------------------------------------------------------------------------
 
                                       14
<PAGE>
                               OTHER INFORMATION
 
   The actual round-turn equivalent of brokerage commissions paid per contract
for the year ended December 31, 1998 was $68.
 
   The Partnership's Annual Report on Form 10-K as filed with the Securities and
Exchange Commission is available to limited partners without charge upon written
request to:
 
        Prudential Securities Aggressive Growth Fund L.P.
        P.O. Box 2016
        Peck Slip Station
        New York, New York 10272-2016
 
                                       15
<PAGE>
Peck Slip Station                                   BULK RATE
P.O. Box 2016                                      U.S. POSTAGE
New York, NY 10272                                    PAID
                                                  Automatic Mail
AGGGROWTH/17217-4