Prudential to Merge Two Funds
January 1, 2001
Prudential Funds of Newark, N.J. has filed a proxy statement with the Securities and Exchange Commission of Washington D.C. seeking to merge its Prudential Government Securities Trust into the Prudential Government Income Fund.
The firm wants to merge the funds due to the Prudential Government Securities Trust's inability to attract investors and build an investment portfolio that can maintain its objective at a reasonable cost to its shareholders, according to the filing. Prudential Government Securities Trust's board of directors has approved the merger, however, it still requires the approval of the fund's shareholders.
Prudential Government Securities Trust was launched in September 1982. As of September 30, 2000 the fund had $115 million in total net assets. Prudential Government Income Fund was launched in April 1985 and as of September 20, 2000 it had $1.1 billion in total net assets, according to the SEC filing.