<Page>

                                 UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                   FORM 10-Q

(Mark One)

/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the quarterly period ended June 30, 2003

                                       OR

/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

For the transition period from _______________________ to ______________________

Commission file number: 0-23885

                     PRUDENTIAL SECURITIES STRATEGIC TRUST
--------------------------------------------------------------------------------
             (Exact name of Registrant as specified in its charter)

Delaware                                          13-7075398
--------------------------------------------------------------------------------
(State or other jurisdiction of        (I.R.S. Employer Identification No.)
incorporation or organization)

One New York Plaza, 13th Floor, New York, New York           10292
--------------------------------------------------------------------------------
(Address of principal executive offices)                  (Zip Code)

Registrant's telephone number, including area code (212) 778-7866

                                      N/A
--------------------------------------------------------------------------------
Former name, former address and former fiscal year, if changed since last report

   Indicate by check CK whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _CK_  No __

   Indicate by check CK whether the Registrant is an accelerated filer (as
defined in Rule 12b-2 of the Securities Exchange Act of 1934). Yes __  No _CK

<Page>

                         PART I. FINANCIAL INFORMATION
                          ITEM I. FINANCIAL STATEMENTS
                     PRUDENTIAL SECURITIES STRATEGIC TRUST
                          (a Delaware Business Trust)
                       STATEMENTS OF FINANCIAL CONDITION
                                  (Unaudited)
<Table>
<Caption>
                                                                         June 30,      December 31,
                                                                           2003            2002
---------------------------------------------------------------------------------------------------
<S>                                                                     <C>            <C>
ASSETS
Cash in commodity trading accounts                                      $8,361,200      $8,527,359
Net unrealized gain (loss) on open futures contracts                      (170,772)         56,102
Net unrealized gain on open forward contracts                                6,968              --
Other receivable                                                             2,640           1,335
                                                                        ----------     ------------
Total assets                                                            $8,200,036      $8,584,796
                                                                        ----------     ------------
                                                                        ----------     ------------
LIABILITIES AND TRUST CAPITAL
Liabilities
Redemptions payable                                                     $  164,405      $   40,817
Accounts payable                                                               432              --
Management fees payable                                                     10,003           9,132
Incentive fees                                                               1,787              --
                                                                        ----------     ------------
Total liabilities                                                          176,627          49,949
                                                                        ----------     ------------
Commitments

Trust capital
Limited interests (85,188.905 and 96,797.855 interests outstanding)      7,943,128       8,449,304
General interests (861 and 980 interests outstanding)                       80,281          85,543
                                                                        ----------     ------------
Total trust capital                                                      8,023,409       8,534,847
                                                                        ----------     ------------
Total liabilities and trust capital                                     $8,200,036      $8,584,796
                                                                        ----------     ------------
                                                                        ----------     ------------

Net asset value per limited and general interest ('Interests')          $    93.24      $    87.29
                                                                        ----------     ------------
                                                                        ----------     ------------
---------------------------------------------------------------------------------------------------
                 The accompanying notes are an integral part of these statements.
</Table>

                                       2

<Page>

                     PRUDENTIAL SECURITIES STRATEGIC TRUST
                          (a Delaware Business Trust)
                       Condensed Schedules of Investments
                                  (Unaudited)
<Table>
<Caption>
                                                  June 30, 2003                     December 31, 2002
                                         --------------------------------    --------------------------------
                                         Net Unrealized                      Net Unrealized
                                          Gain (Loss)                         Gain (Loss)
                                           as a % of       Net Unrealized      as a % of       Net Unrealized
Futures Contracts                        Trust Capital      Gain (Loss)      Trust Capital      Gain (Loss)
-------------------------------------------------------------------------------------------------------------
<S>                                      <C>               <C>               <C>               <C>
Futures contracts purchased:
  Stock indices                                              $ (146,652)                         $  (36,059)
  Interest rates                                                     --                             261,040
  Currencies                                                     14,962                              90,669
  Commodities                                                  (150,972)                            (36,719)
                                                           --------------                      --------------
     Net unrealized gain (loss) on
     futures contracts purchased              (3.52)%          (282,662)           3.27%            278,931
                                                           --------------                      --------------
Futures contracts sold:
  Stock indices                                                 120,048                               1,004
  Interest rates                                                     --                            (175,554)
  Currencies                                                     (8,033)                            (48,279)
  Commodities                                                      (125)
                                                           --------------                      --------------
     Net unrealized gain (loss) on
     futures contracts sold                    1.39%            111,890           (2.61)           (222,829)
                                             ------        --------------        ------        --------------
     Net unrealized gain (loss) on
     futures contracts                        (2.13)%        $ (170,772)           0.66%         $   56,102
                                             ------        --------------        ------        --------------
                                             ------        --------------        ------        --------------
Forward currency contracts purchased:          0.16%         $   13,023           (0.04)%        $   (3,158)
Forward currency contracts sold:              (0.07)             (6,055)           0.04               3,158
                                             ------        --------------        ------        --------------
     Net unrealized gain on forward
     contracts                                 0.09%         $    6,968               0%         $        0
                                             ------        --------------        ------        --------------
                                             ------        --------------        ------        --------------
Settlement Currency--Futures Contracts
  British pound                                0.06%         $    4,803           (1.03)%        $  (87,605)
  Canadian dollar                              0.18              14,841           (0.42)            (36,264)
  Euro                                        (1.67)           (134,351)           1.58             134,838
  Hong Kong dollar                             0.02               1,898              --                  --
  Japanese yen                                 0.41              32,899           (0.21)            (17,576)
  Australian dollar                            0.75              60,507            0.03               2,770
  Swiss franc                                  0.00                 185            0.20              16,844
  Swedish krona                                  --                  --            0.00                (164)
  U.S. dollar                                 (1.88)           (151,554)           0.51              43,259
                                             ------        --------------        ------        --------------
     Total                                    (2.13)%        $ (170,772)           0.66%         $   56,102
                                             ------        --------------        ------        --------------
                                             ------        --------------        ------        --------------
Settlement Currency--Forward Contracts
  Swiss franc                                  0.09%         $    6,968              --%         $       --
  U.S. dollar                                    --                  --            0.00                   0
                                             ------        --------------        ------        --------------
     Total                                     0.09%         $    6,968            0.00%         $        0
                                             ------        --------------        ------        --------------
                                             ------        --------------        ------        --------------
-------------------------------------------------------------------------------------------------------------
                      The accompanying notes are an integral part of these statements.
</Table>

                                       3

<Page>

                     PRUDENTIAL SECURITIES STRATEGIC TRUST
                          (a Delaware Business Trust)
                            STATEMENTS OF OPERATIONS
                                  (Unaudited)
<Table>
<Caption>
                                                  Six months ended             Three months ended
                                                      June 30,                      June 30,
                                              -------------------------     -------------------------
                                                 2003           2002           2003           2002
-----------------------------------------------------------------------------------------------------
<S>                                           <C>            <C>            <C>            <C>
REVENUES
Net realized gain on commodity
  transactions                                $1,095,451     $  886,484     $  679,295     $  911,324
Change in net unrealized gain/loss on open
  commodity positions                           (219,906)       533,198        (66,443)       263,493
Interest income                                   55,050         91,331         27,172         46,019
                                              ----------     ----------     ----------     ----------
                                                 930,595      1,511,013        640,024      1,220,836
                                              ----------     ----------     ----------     ----------
EXPENSES
Commissions                                      306,041        343,051        151,614        171,303
Management fees                                   55,772         62,517         30,468         31,253
Incentive fees                                     1,787             --          1,787             --
                                              ----------     ----------     ----------     ----------
                                                 363,600        405,568        183,869        202,556
                                              ----------     ----------     ----------     ----------
Net income                                    $  566,995     $1,105,445     $  456,155     $1,018,280
                                              ----------     ----------     ----------     ----------
                                              ----------     ----------     ----------     ----------
ALLOCATION OF NET INCOME
Limited interests                             $  561,314     $1,094,384     $  451,590     $1,008,092
                                              ----------     ----------     ----------     ----------
                                              ----------     ----------     ----------     ----------
General interests                             $    5,681     $   11,061     $    4,565     $   10,188
                                              ----------     ----------     ----------     ----------
                                              ----------     ----------     ----------     ----------
NET INCOME PER WEIGHTED AVERAGE LIMITED
  AND GENERAL INTERESTS
Net income per weighted average limited
  and general interests                       $     6.22     $     9.93     $     5.18     $     9.37
                                              ----------     ----------     ----------     ----------
                                              ----------     ----------     ----------     ----------
Weighted average number of limited and
  general interests outstanding                   91,146        111,277         88,113        108,708
                                              ----------     ----------     ----------     ----------
                                              ----------     ----------     ----------     ----------
-----------------------------------------------------------------------------------------------------
</Table>

                     STATEMENT OF CHANGES IN TRUST CAPITAL
                                  (Unaudited)
<Table>
<Caption>
                                                               LIMITED        GENERAL
                                              INTERESTS       INTERESTS      INTERESTS       TOTAL
-----------------------------------------------------------------------------------------------------
<S>                                          <C>              <C>            <C>           <C>
Trust capital--December 31, 2002               97,777.855     $8,449,304      $85,543      $8,534,847
Net income                                                       561,314        5,681         566,995
Redemptions                                   (11,727.950)    (1,067,490)     (10,943)     (1,078,433)
                                             ------------     ----------     ---------     ----------
Trust capital--June 30, 2003                   86,049.905     $7,943,128      $80,281      $8,023,409
                                             ------------     ----------     ---------     ----------
                                             ------------     ----------     ---------     ----------
-----------------------------------------------------------------------------------------------------
                  The accompanying notes are an integral part of these statements.
</Table>

                                       4

<Page>

                     PRUDENTIAL SECURITIES STRATEGIC TRUST
                          (a Delaware Business Trust)
                         NOTES TO FINANCIAL STATEMENTS
                                 JUNE 30, 2003
                                  (Unaudited)

A. General

   These financial statements have been prepared without audit. In the opinion
of Prudential Securities Futures Management Inc. (the 'Managing Owner'), the
financial statements contain all adjustments (consisting of only normal
recurring adjustments) necessary to state fairly the financial position of
Prudential Securities Strategic Trust (the 'Trust') as of June 30, 2003 and
December 31, 2002 and the results of its operations for the six and three months
ended June 30, 2003 and 2002. However, the operating results for the interim
periods may not be indicative of the results expected for the full year.

   Certain information and footnote disclosures normally included in annual
financial statements prepared in accordance with accounting principles generally
accepted in the United States of America have been omitted. It is suggested that
these financial statements be read in conjunction with the financial statements
and notes thereto included in the Trust's Annual Report on Form 10-K filed with
the Securities and Exchange Commission for the year ended December 31, 2002.

   In February 2003, Prudential Financial, Inc. ('Prudential') and Wachovia
Corp. ('Wachovia') announced an agreement to combine each company's respective
retail securities brokerage and clearing operations within a new firm, which
will be headquartered in Richmond, Virginia. Under the agreement, Prudential
will have a 38% ownership interest in the new firm and Wachovia will own 62%.
The transaction, which includes the securities brokerage, securities clearing,
and debt capital markets operations of Prudential Securities Incorporated
('PSI'), but does not include the equity sales, trading and research operations
or commodity brokerage and derivative operations of PSI (which were renamed
Prudential Equity Group, Inc. upon closing), closed July 1, 2003. The Managing
Owner, as well as the commodity broker, will continue to be indirect wholly
owned subsidiaries of Prudential.

   As of January 31, 2003 Gamma was terminated as a trading manager to the
Trust. On February 11, 2003 the Managing Owner and the Trust entered into an
advisory agreement with Graham Capital Management, L.P. ('Graham') to manage a
portion of the Trust's assets. Pursuant to the advisory agreement, Graham is to
be paid a monthly management fee equal to 1/6 of 1% (approximately 2% annually)
and an incentive fee of 20% of the 'New High Net Trading Profits' on the portion
of Trust assets allocated to Graham, the same as was paid to Gamma. Graham does
not have to recoup Gamma's cumulative trading losses before earning any
incentive fees. The Trust did not incur commissions and management fees from the
period February 1, 2003 to February 13, 2003 on the portion of assets
unallocated to trading (i.e. the portion of assets previously managed by Gamma).
The advisory agreement may be terminated for a variety of reasons, including at
the discretion of the Managing Owner.

B. Related Parties

   The Managing Owner is a wholly-owned subsidiary of Prudential Equity Group,
Inc. ('PEG'), which, in turn, is an indirect wholly-owned subsidiary of
Prudential Financial, Inc. The Managing Owner or its affiliates perform services
for the Trust, which include, but are not limited to: brokerage services;
accounting and financial management; registrar, transfer and assignment
functions; investor communications; printing and other administrative services.
Except for costs related to brokerage services, PEG or its affiliates bear the
costs of these services, as well as the Trust's routine operational,
administrative, legal and auditing costs, and costs paid to organize the Trust
and offer its Interests.

   The costs charged to the Trust for brokerage services for the six months
ended June 30, 2003 and 2002 were $306,041 and $343,051, respectively, and for
the three months ended June 30, 2003 and 2002 were $151,614 and $171,303,
respectively.

   The Trust's assets are maintained either in trading or cash accounts at PEG
or, for margin purposes, with the various exchanges on which the Trust is
permitted to trade. PEG credits the Trust monthly with 80% of the interest it
earns on the average net assets in the Trust's accounts and retains the
remaining 20%.

                                       5

<Page>

   The Trust, acting through its trading managers, executes over-the-counter,
spot, forward and/or option foreign exchange transactions with PEG. PEG 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
PEG and the Trust pursuant to a line of credit. PEG may require that collateral
be posted against the marked-to-market position of the Trust.

   As of June 30, 2003, a non-U.S. affiliate of the Managing Owner owned 116.497
limited interests of the Trust.

C. Derivative Instruments and Associated Risks

   The Trust is exposed to various types of risks associated with the derivative
instruments and related markets in which it invests. These risks include, but
are not limited to, risk of loss from fluctuations in the value of derivative
instruments held (market risk) and the inability of counterparties to perform
under the terms of the Trust's investment activities (credit risk).

Market Risk

   Trading in futures and forward contracts (including foreign exchange)
involves entering into contractual commitments to purchase or sell a particular
commodity at a specified date and price. The gross or face amount of the
contracts, which is typically many times that of the Trust's net assets being
traded, significantly exceeds the Trust's future cash requirements since the
Trust intends to close out its open positions prior to settlement. As a result,
the Trust is generally subject only to the risk of loss arising from the change
in the value of the contracts. As such, the Trust considers the 'fair value' of
its futures and forwards to be the net unrealized gain or loss on the contracts.
The market risk associated with the Trust's commitments to purchase commodities
is limited to the gross or face amount of the contracts held. However, when the
Trust enters into a contractual commitment to sell commodities, it must make
delivery of the underlying commodity at the contract price and then repurchase
the contract at prevailing market prices or settle in cash. Since the repurchase
price to which a commodity can rise is unlimited, entering into commitments to
sell commodities exposes the Trust to unlimited risk.

   Market risk is influenced by a wide variety of factors, including government
programs and policies, political and economic events, the level and volatility
of interest rates, foreign currency exchange rates, the diversification effects
among the derivative instruments the Trust holds and the liquidity and inherent
volatility of the markets in which the Trust trades.

Credit Risk

   When entering into futures and forward contracts, the Trust is exposed to
credit risk that the counterparty to the contract will not meet its obligations.
The counterparty for futures contracts traded on United States and most foreign
futures exchanges is the clearinghouse associated with the particular exchange.
In general, clearinghouses are backed by their corporate members who are
required to share any financial burden resulting from the non-performance by one
of their members and, as such, should significantly reduce this credit risk. In
cases where the clearinghouse is not backed by the clearing members (i.e., some
foreign exchanges), it is normally backed by a consortium of banks or other
financial institutions. On the other hand, if the Trust enters into forward
transactions, the sole counterparty is PEG, the Trust's commodity broker. The
Trust has entered into a master netting agreement with PEG and, as a result,
when applicable, presents unrealized gains and losses on open forward positions
as a net amount in the statements of financial condition. The amount at risk
associated with counterparty non-performance of all of the Trust's contracts is
the net unrealized gain included in the statements of financial condition;
however, counterparty nonperformance on only certain of the Trust's contracts
may result in greater loss than nonperformance on all of the Trust's contracts.
There can be no assurance that any counterparty, clearing member or
clearinghouse will meet its obligations to the Trust.

   The Managing Owner attempts to minimize both credit and market risks by
requiring the Trust and its trading managers to abide by various trading
limitations and policies. The Managing Owner monitors compliance with these
trading limitations and policies which, include, but are not limited to,
executing and clearing all trades with creditworthy counterparties; 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.
Additionally, pursuant to the

                                       6

<Page>

advisory agreements among the Trust, the Managing Owner and each trading
manager, the Trust shall automatically terminate a trading manager if the net
asset value allocated to that trading manager declines by 33 1/3% from the value
at the beginning of any year or since the initial allocation of assets to that
trading manager. Furthermore, the Second Amended and Restated Declaration of
Trust and Trust Agreement provides that the Trust will liquidate its positions,
and eventually dissolve, if the Trust experiences a decline in the net asset
value of 50% from the value at the beginning of any year or since the
commencement of trading activities. In each case, the decline in net asset value
is after giving effect for distributions and redemptions. The Managing Owner may
impose additional restrictions (through modifications of trading limitations and
policies) upon the trading activities of the trading managers as it, in good
faith, deems to be in the best interest of the Trust.

   PEG, when acting as the Trust's futures commission merchant in accepting
orders for the purchase or sale of domestic futures contracts, is required by
Commodity Futures Trading Commission ('CFTC') regulations to separately account
for and segregate as belonging to the Trust all assets of the Trust relating to
domestic futures trading and is not allowed to commingle such assets with other
assets of PEG. At June 30, 2003, such segregated assets totalled $2,611,983.
Part 30.7 of the CFTC regulations also requires PEG to secure assets of the
Trust related to foreign futures trading, which totalled $5,578,445 at June 30,
2003. There are no segregation requirements for assets related to forward
trading.

   As of June 30, 2003, substantially all of the Trust's open futures contracts
and forward contracts mature within one year.

D. Financial Highlights

<Table>
<Caption>
                                                      For the Six Months      For the Three Months
                                                        ended June 30,           ended June 30,
                                                      ------------------      ---------------------
                                                       2003        2002         2003          2002
                                                      ------      ------      ---------      ------
<S>                                                   <C>         <C>         <C>            <C>
Performance per Interest
  Net asset value, beginning of period                $87.29      $82.31       $ 88.16       $83.13
                                                      ------      ------      ---------      ------
  Net realized gain and change in net unrealized
     gain/loss on commodity transactions                9.31       13.14          6.85        10.94
  Interest income                                        .60         .82           .31          .42
  Expenses                                             (3.96)      (3.64)        (2.08)       (1.86)
                                                      ------      ------      ---------      ------
  Increase for the period                               5.95       10.32          5.08         9.50
                                                      ------      ------      ---------      ------
  Net asset value, end of period                      $93.24      $92.63       $ 93.24       $92.63
                                                      ------      ------      ---------      ------
                                                      ------      ------      ---------      ------
Total return                                            6.82%      12.54%         5.76%       11.43%
Ratio to average net assets (annualized)
  Interest income                                       1.33%       1.95%         1.35%        1.93%
  Expenses, including 0.04% and 0.09% of
     Incentive fees for the six months and three
     months, respectively, ended June 30, 2003          8.76%       8.68%         9.11%        8.64%
</Table>

      These financial highlights represent the overall results of the Trust for
the six and three months ended June 30, 2003 and 2002. An individual limited
owner's actual results may differ depending on the timing of redemptions.

                                       7

<Page>

                     PRUDENTIAL SECURITIES STRATEGIC TRUST
                          (a Delaware Business Trust)
      ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
                           AND RESULTS OF OPERATIONS

Liquidity and Capital Resources

   The Trust commenced operations on May 1, 1996 with gross proceeds of
$12,686,200 allocated to commodities trading. Additional Interests were offered
monthly at the then current net asset value per Interest until the continuous
offering period expired on January 31, 1998. Additional contributions made
during the continuous offering period totalled $51,242,700 including $375,000 of
contributions from the Managing Owner.

   The Trust Agreement provides that an Interest holder may redeem its Interests
as of the last day of any month at the then current net asset value per
Interest. Redemptions of limited interests for the six and three months ended
June 30, 2003 were $1,067,490 and $333,570, respectively. Redemptions of general
interests for the six and three months ended June 30, 2003 were $10,943 and
$3,359, respectively. Redemptions of limited and general interests from May 1,
1996 (commencement of operations) to June 30, 2003 were $54,393,197 and
$437,956, respectively. Future redemptions will impact the amount of funds
available for investment in commodity contracts in subsequent periods.

   At June 30, 2003, 100% of the Trust's net assets were allocated to
commodities trading. A significant portion of the net assets of the Trust was
held in cash, which was used as margin for the Trust's trading in commodities.
Inasmuch as the sole business of the Trust is to trade in commodities, the Trust
continues to own such liquid assets to be used as margin. PEG credits the Trust
monthly with 80% of the interest it earns on the average net assets in these
accounts and retains the remaining 20%.

   The commodities contracts are subject to periods of illiquidity because of
market conditions, regulatory considerations and other reasons. For example,
commodity exchanges limit fluctuations in 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 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 Trust from promptly liquidating its commodity
futures positions.

   Since the Trust's business is to trade futures and forward 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 Trust'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 relationships among the contracts held. The inherent uncertainty of the
Trust's speculative trading, as well as the development of drastic market
occurrences, could result in monthly losses considerably beyond the Trust's
experience to date and could ultimately lead to a loss of all or substantially
all of investors' capital. The Managing Owner attempts to minimize these risks
by requiring the Trust's trading managers to abide by various trading
limitations and policies, which include limiting margin amounts, trading only in
liquid markets and permitting the use of stop loss provisions. See Note C to the
financial statements for a further discussion of the credit and market risks
associated with the Trust's futures and forward contracts.

   The Trust does not have, nor does it expect to have, any capital assets.

Results of Operations

   The net asset value per Interest as of June 30, 2003 was $93.24, an increase
of 6.82% from the December 31, 2002 net asset value per Interest of $87.29, and
an increase of 5.76% from the March 31, 2003 net asset value per Interest of
$88.16. Past performance is not necessarily indicative of future results.

   The Trust's gross trading gains before commissions and related fees were
$876,000 and $613,000 during the six and three months ended June 30, 2003,
compared to trading gains of $1,420,000 and $1,175,000 for the corresponding
period in the prior year. Due to the nature of the Trust's trading activities, a
period to

                                       8

<Page>

period comparison of its trading results is not meaningful. However, a detailed
discussion of the Trust's current quarter trading results is presented below.

Quarterly Market Overview

   In the U.S., the beginning of the second quarter of 2003 saw few signs of
relief from a sluggish economy with a growth rate of 2.4 percent. Nominal GDP
continued to trend downward in hand with falling consumer and producer prices
and interest rates. Concerns about the slump in American telecom and internet
industries, accounting fraud and the largest budget deficit the U.S. has ever
faced have hampered investments in the U.S. Despite resolution to the war in
Iraq, consumer and business confidence remained tepid. Companies desiring to
improve profits remained unwilling to make big capital spending commitments or
increase their workforces and inventories. Orders to U.S. factories for
big-ticket items and production figures fell in April. In June, the unemployment
rate jumped to a nine-year high of 6.4 percent. Payroll slashes in manufacturing
and information industries generated the greatest job losses. As companies
attempted to do more with leaner workforces, overall productivity rose and
provided support for household income. The rise in income, combined with low
interest rates, reduced taxes, and availability of substantial home equity
spurred gains in consumer spending and increased sales of new homes. Toward the
end of the quarter, manufacturing rose slightly, but still indicated that the
sector shrank for the fourth straight month. Meanwhile, new orders for durable
goods, machinery, automobiles, electrical equipment, home supplies and computers
increased, reversing previous downward trends.

   Global economies remained weak in the second quarter of 2003 and were further
hampered by the decline of the U.S. dollar which made overseas goods more
expensive, thus curtailing demand. In May, Germany, Italy and the Netherlands
reported an unexpected contraction in their economies during the first three
months of the year with Germany and Netherlands experiencing a second quarter of
negative growth. The European Union stated that overall economic growth had
stalled and consequently, applied pressure on the central banks to ease interest
rates. Business investment dropped sharply while domestic demand remained bleak.
The Japanese economy continued to stumble as other Asian economies began to
recover from the effects of the SARS outbreak. Furthermore, fears of deflation
loomed over already troubled global economies.

   Indices: Despite economic data indicating the worst is not yet over, global
equity markets surged in the second quarter of 2003. Spurred by the easing of
geopolitical tensions, massive short covering, excess liquidity, some positive
first quarter earnings reports, and optimism that economic recovery is near,
investors flocked toward equities. A rally in Japanese stocks was fueled
primarily by foreign mutual funds, hedge funds and other non-Japanese
institutional investors who invested more than ten times as much as local
investors in June. The Japanese Nikkei, London FTSE, Dow Jones Industrial
Average, NASDAQ and S&P 500 all ended the quarter higher.

   Interest rates: Fixed income markets in May witnessed a drop in interest
rates of developed countries due to the U.S. Federal Reserve (the 'Fed')
deflation talk as well as institutions and hedge funds borrowing to purchase
longer maturities, possible Fed purchases of longer maturities, hedging by
mortgage investors as rates fell, and central banks buying dollars and investing
in Treasuries. The decline in interest rates led to gains in German, Japanese,
U.S. Treasury and Eurodollar bond prices. In June, the market reacted with
disappointment to the Fed's quarter point cut in short-term interest rates and
as a result, intermediate and long-term rates rose. Investors in Japan moved
capital into the equity markets at the expense of U.S. Treasury and Japanese
bonds. Concern about deteriorating public finances in most large economies and a
renewed interest in equities in hopes of an economic recovery resulted in
falling bond prices through the quarter and the subsequent rising of long-term
rates.

   Currencies: In the foreign exchange markets, the U.S. dollar moved sharply
lower against most major currencies during the quarter. Investors shifted their
focus from the war in Iraq to concerns about U.S. economic health with its
widening current account deficit and lower relative interest rate resulting in
the dollar's three-year low against the Canadian and Australian dollar and
four-year low against the Euro. The reversal of the U.S.'s strong dollar policy
by Treasury Secretary Snow led to a further sell off of the greenback leading to
a 4.5-year low against the Swiss franc.

   Energies: Energy price declines began in March and continued as the war in
Iraq became inevitable. Because supplies were secured and unthreatened by the
war, the prices of crude oil, unleaded gasoline and London gas oil were down in
April of 2003. Natural gas prices were largely unaffected by events in the

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Middle East, Nigeria and Venezuela. In order to stave off the declining prices
and correct an oversupply as crude demand reached a seasonal low, OPEC members
agreed to cut current output by seven percent in April. Toward the end of the
quarter, energy prices, in general, were higher due to Nigeria's general
worker's strike, low U.S. oil inventory levels and expectations of U.S. economic
growth.

Quarterly Trust Performance

   The following is a summary of performance for the major sectors in which the
Trust traded:

   Currencies (+): The U.S. dollar fell against many foreign currencies amid
concerns of a weak U.S. economy. Canadian and Australian dollar and euro
strengthened this quarter resulting in net gains for long Canadian dollar,
Australian dollar and euro positions.

   Indices (+): Long positions in the mini S&P, S&P 500 and U.S. dollar indices
led to net gains as U.S. equity markets rose throughout the quarter.

   Energies (-): Nigeria's general worker's strike, low U.S. oil inventory
levels and expectation of economic growth led to rising energy prices toward the
end of the quarter. Short positions in natural gas and light crude oil resulted
in net losses.

   Metals (-): Declines in manufacturing resulted in falling base metal prices.
Long positions in copper, aluminum and nickel resulted in net losses.

   Grains (-): Corn and wheat prices continued to decline due to ideal weather
conditions and a strong harvest resulting in net losses for long positions.

   Interest rates (-): Weak global economies, fears of deflation and renewed
interest in equities resulted in falling global bond prices. Long U.S. Treasury,
British and European bond positions led to net losses.

   Softs (-): Net losses in short cotton positions resulted from unfavorable
weather conditions and high volatility in cotton markets.

   Decreases in the overall average net asset levels of the Trust have led to
corresponding decreases in interest earned, as well as commissions and
management fees incurred by the Trust, which are largely based on the level of
net assets. The Trust's average net asset levels were lower during the six and
three months ended June 27, 2003 as compared to the corresponding periods in the
prior year, primarily due to redemptions offset in part by favorable trading
performance in 2003.

   Interest income is earned on the equity balances held at PEG and, therefore,
varies monthly according to interest rates, trading performance and redemptions.
Interest income decreased by $36,000 and $19,000 for the six and three months
ended June 30, 2003 as compared to the corresponding periods in 2002. This
decrease was primarily due to lower interest rates during 2003 as compared to
2002, as well as the decline in average net asset levels as discussed above.

   Commissions are calculated on the Trust's net asset value at the beginning of
each month and, therefore, vary according to trading performance and
redemptions. Commissions decreased by $37,000 and $20,000 for the six and three
months ended June 30, 2003 as compared to the corresponding periods in 2002.
This decrease was due to the decline in average net asset levels as discussed
above and, to a lesser extent, the change in trading advisors as discussed
further in Note A.

   Prior to January 31, 2003 all trading decisions were made by Bridgewater
Associates, Inc. and Gamma Capital Management, LLC ('Gamma'). Gamma was
terminated as a trading advisor to the Trust on January 31, 2003 and replaced
with Graham Capital Management, L.P. on February 11, 2003. Management fees are
calculated on the 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 $7,000 and $1,000 for the six and
three months ended June 30, 2003 as compared to the corresponding periods in
2002. This decrease was due to the decline in average net asset levels as
discussed above and, to a lesser extent, the change in trading advisors as
discussed further in Note A.

   Incentive fees are based on the 'New High Net Trading Profits' generated by
each trading manager, as defined in the advisory agreements among the Trust, the
Managing Owner and each trading manager. Incentive fees of $2,000 were incurred
during the six and three months ended June 30, 2003. No incentive fees were
incurred during the six and three months ended June 30, 2002.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

   Information regarding quantitative and qualitative disclosures about market
risk is not required pursuant to Item 305(e) of Regulation S-K.

ITEM 4. CONTROLS AND PROCEDURES

   As of the end of the period covered by this report, the Managing Owner
carried out an evaluation, under the supervision and with the participation of
the officers of the Managing Owner, including the Managing Owner's Chief
Executive Officer and Chief Financial Officer, of the effectiveness of the
design and operation of the Trust's disclosure controls and procedures. Based
upon that evaluation, the Managing Owner's Chief Executive Officer and Chief
Financial Officer concluded that the Trust's disclosure controls and procedures
are effective.

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                           PART II. OTHER INFORMATION

Item 1. Legal Proceedings--There are no material legal proceedings pending by or
        against the Trust or the Managing Owner

Item 2. Changes in Securities--None

Item 3. Defaults Upon Senior Securities--None

Item 4. Submission of Matters to a Vote of Security Holders--None

Item 5. Other information--Effective May 2003, Ronald J. Ivans was elected by
        the Board of Directors of Prudential Securities Futures Management Inc.
        as Chief Financial Officer and Treasurer replacing Steven Weinreb.

Item 6. Exhibits and Reports on Form 8-K:

        (a) Exhibits

            3.1
            and
            4.1--Second Amended and Restated Declaration of Trust and Trust
                 Agreement of the Trust dated as of December 14, 1995
                 (incorporated by reference to Exhibit 3.1 to 4.1 to the Trust's
                 Registration Statement on Form S-1, File No. 33-80443)

            4.2--Subscription Agreement (incorporated by reference to
                 Exhibit 4.2 to the Trust's Registration Statement on
                 Form S-1, File No. 33-80443)

            4.3--Request for Redemption (incorporated by reference to
                 Exhibit 4.3 to the Trust's Registration Statement on
                 Form S-1, File No. 33-80443)

           31.1--Certification pursuant to Exchange Act Rules 13a-14 and
                 15d-14 (filed herewith)

           31.2--Certification pursuant to Exchange Act Rules 13a-14 and
                 15d-14 (filed herewith)

           32.1--Certification pursuant to 18 U.S.C. Section 1350 as
                 adopted pursuant to Section 906 of the SARBANES-OXLEY
                 Act of 2002 (furnished herewith)

           32.2--Certification pursuant to 18 U.S.C. Section 1350 as
                 adopted pursuant to Section 906 of the SARBANES-OXLEY
                 Act of 2002 (furnished herewith)

        (b) Reports on Form 8-K--None

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                                   SIGNATURES

   Pursuant to the requirements of the Securities Exchange Act of 1934, the
Trust has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.

PRUDENTIAL SECURITIES STRATEGIC TRUST

By: Prudential Securities Futures Management Inc.
A Delaware corporation, Managing Owner

     By: /s/ Ronald J. Ivans                      Date: August 14, 2003
     ----------------------------------------
     Ronald J. Ivans
     Chief Financial Officer

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