Oct. 16, 2002 -- Principal Financial Grp (PFG) plans to eliminate two small mutual funds that invest overseas by merging them into a larger international fund.
The company is seeking shareholder approval to combine the Pacific Basin and European Equity funds with Principal International/A (PRWLX).
The Pacific Basin and European Equity funds had total assets of about $9.2 million at the end of last month. Both have generated "limited' sales and are unlikely to grow, Principal said in a regulatory filing. The International fund had approximately $236 million in assets on Sept. 30.
The "catalyst" for the proposed merger is a recent agreement to sell most of its BT Financial Group, Principal said. A unit of the group that oversees the funds to be eliminated will stop managing them at the end of this month. Principal agreed to sell most of the group to Westpac Banking, an Australian bank, in August.