Shareholders recently approved the closing of the $600 million Prudential Institutional Liquidity Portfolio (PILP) Money Market Series. Prudential Investments, which recently changed its name from Jennison Dryden, said in a statement, "The Fund is closing to new investors, effective immediately. Existing investors may continue to purchase shares of the Fund, but only through March 17, 2010. After this date, the Fund will no longer accept purchase orders, except purchases made through dividend reinvestments. Please see the supplement to the Fund's prospectus for more information."
The SEC filing explains, "At a recent meeting, the Board of Directors of Prudential Institutional Liquidity Portfolio, Inc. determined that it was in the best interest of shareholders for the Institutional Money Market Series (the Fund) to cease operations. Accordingly, the Board approved a proposal to redeem all of the outstanding shares of the Fund. Under the proposal, shareholders of the Fund will receive payments equivalent to the net asset value of their shares as of the redemption date. The redemption is scheduled to take place on or about March 24, 2010 and payments will be sent to shareholders as soon as practicable thereafter. At any time prior to the Redemption Date, shareholders may redeem their shares and receive the net asset value thereof, pursuant to the procedures set forth in the Prospectus."
PILP had two major classes, the $370 million Series A (PIMXX) and the $230 million Series I (PLPXX). Prudental continues to manage the $2.5 billion Prudential CAT Liquid Assets MM (PLQXX), the $202 million Prudential Dryden GST Money Mkt A (PBGXX), the $653 million Prudential MoneyMart Assets A (PMBXX), and the $188 million Prudential MoneyMart Assets Z (PMZXX). Prudential was the 39th largest money fund manager with $4.1 billion in assets as of Jan. 31, 2010, according to Crane Data's Money Fund Intelligence XLS.
We recently wrote in our "People" News that former Prudential Financial Managing Director and Head of Short-Term Fixed Income Joe Tully recently accepted early retirement. Tully previously oversaw the money market fund assets, which are now managed by Joseph D'Angelo, Manolita Brasil, and Robert Browne.
Prudential Financial recently sold its stake in Wachovia Securities (which contained the old Prudential brokerage). The brokerage historically was one of the largest investors in the Pru money market funds, so this may at least partially explain the retreat. Prudential's money fund assets have declined from a peak of $5.5 billion in March 2009.
