Prudential Plans Fund Mergers
January 8, 2001
Prudential Funds of Newark, N.J. has filed a proxy statement with the Securities and Exchange Commission seeking to merge its Prudential Government Securities Trust into the Prudential Government Income Fund.
The proposed merger is due to Prudential Government Securities Trust's inability to attract investors and build an investment portfolio that can effectively pursue the Trust's objective at a reasonable cost to its shareholders, according to the filing. Prudential Government Securities Trust's Board of Directors has approved the merger. Shareholder approval is still required.
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.
Prudential Funds has also filed to merge its Connecticut Money Market Series and Massachusetts Money Market Series, both series of Prudential Municipal Series Fund, into the Prudential Tax-Free Money Fund.
The merger has been proposed because of the inability of the Connecticut Money Market Series and Massachusetts Money Market Series to attract investors, according to the filing. The number of shareholders of each series has been declining for a number of years, according to the filing.
Prudential Municipal Series Fund's board of trustees has approved the proposed merger. It still requires approval of the Series' shareholders.