Dec. 13, 2002-- Prudential Financial Inc. (PRU) said it will restructure its domestic mutual funds into two fund families.
According to Richard Miller, a vice president of the company's funds group, 32 of the 37 existing equity and fixed-income Prudential mutual funds, which are sub-advised by Prudential Investment Management's public equity and fixed-income asset management businesses, including Jennison Associates and Prudential Fixed Income and Quantitative Management, will be known as the `Jennison/Dryden' funds. The 37 funds presently comprise about $20.9 billion in assets.
The five remaining Prudential funds, which are sub-advised wholly or in part by non-proprietary managers, will be moved into the company's 'Strategic Partners' family. Strategic Partners presently comprises 13 funds. Upon the completion of this restructuring, Strategic Partners will consist of 18 portfolios. The aforementioned 13 Strategic Partners funds presently comprise about $1.3 billion in assets.
Those five funds moving to 'Strategic Partners' are: Prudential Equity Fund (PBQAX), Prudential International Value Fund (PISAX), Prudential Europe Growth Fund (PRAEX), Prudential Pacific Growth Fund (PRPAX) and Prudential Real Estate Securities (PURAX).
In addition, Miller noted, the Prudential Value Fund (PBEAX), currently co-managed by Jennison Associates and two other sub-advisors, will become solely managed by Jennison, and will be renamed the Jennison Value Fund. Similarly, the Prudential Jennison Growth Fund (PJFAX) will have all its assets allocated solely to Jennison and will be renamed the Jennison Growth Fund.
The `Dryden' name relates to John Fairfield Dryden, founder of The Prudential Insurance Company of America.
Concerning the decision to drop the 'Prudential' name from these funds, Miller commented that most people probably associate the `Prudential' name with insurance, and not asset management. "Jennison has established quite a strong reputation in both the institutional and retail marketplaces," Miller said. "We wanted to provide them with more recognition and visibility."
The fund restructurings are expected to close on or about June 30, 2003.