Pru Will Continue to Participate in the Money Fund Program
News summary by MFWire's editors
Prudential Financial will continue to take part in the Treasury Department's Temporary Guarantee Program for money market mutual funds.
The program was initially set to expire on December 18, but Treasury officials extended it through April.
Company Press Release
NEWARK, N.J. - (Business Wire) Prudential Financial, Inc. (NYSE:PRU) announced today that the retail mutual fund board of directors/trustees for the eligible JennisonDryden and Target mutual funds, and the Prudential Institutional Liquidity Portfolio, extended the funds’ participation in the U.S. Treasury Department’s Temporary Guarantee Program for Money Market Mutual Funds.
The program, developed in response to recent market volatility and temporary dislocations in credit markets, provides a temporary guarantee to a shareholder in a participating money market fund as of the close of business on September 19, 2008 up to the number of shares owned on that date. The Treasury Department recently extended the program until April 30, 2009, to support ongoing stability in the markets. The program had been set to expire on December 18, 2008.
The temporary guarantee is triggered if a participating fund's market-based net asset value “breaks the buck”—falls below $0.995—and the fund is liquidated. Any increase in the number of shares held in an account after the close of business on September 19, 2008, will not be guaranteed. If the number of shares held in an account fluctuates over the period, investors will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less. If a customer closes his or her fund account, any future investment in the fund through a new account will not be guaranteed.
Funds participating in the program include: MoneyMart Assets; Dryden Money Market Fund; Dryden Government Securities Trust/Money Market Series; Cash Accumulation Trust/Liquid Assets Fund; Target Portfolio Trust/U.S. Government Money Market Portfolio; and Prudential Institutional Liquidity Portfolio/Institutional Money Market Series. Prudential Fixed Income Management, which manages most of these funds, is among the nation’s most experienced fixed income managers and features one of the largest and most sophisticated research teams in the industry.
While the program provides coverage to the accounts of certain investors, each money market fund decides whether or not it wants to sign up. Investors cannot sign up for the program individually.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $602 billion of assets under management as of September 30, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.
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