Prudential extends funds' use of guarantee program

NEWARK, N.J. - Prudential Financial Inc. on Friday said it has extended certain funds' participation in the Treasury Department's temporary guarantee program for money market mutual funds.

Prudential's eligible JennisonDryden and Target mutual funds and the Prudential Institutional Liquidity Portfolio will remain part of the program, which was developed in response to market volatility to guarantee holdings in participating money market funds as of Sept. 19.

The Treasury Department had extended the program to April 30 from its original expiration date of Dec. 18.

The guarantee is triggered if a participating fund's market-based net asset value falls below 0.995 cents — known as "breaking the buck" — and the fund is liquidated. The guarantee does not apply to shares bought after Sept. 19.

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 Financial stock added $7.42, or 35 percent, to $28.59 in afternoon trading. Analysts said earlier Thursday the company's capital and liquidity remain adequate, calming investors' concerns about the insurer's health.

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