Board of Directors Approves Proposed Policy Changes for Two Piper Capital Open-End Funds; Merger of a Third.MINNEAPOLIS--(BUSINESS WIRE)--June 19, 1996--Piper Capital Management Incorporated announced today that the board of directors for its Institutional Government Income Portfolio, Equity Strategy Fund and Institutional Government Adjustable Portfolio mutual funds has approved a number of proposals. Specifically, the board has approved restructuring Institutional Government Income Portfolio as an intermediate bond fund and re-opening the fund to new investors; restructuring Equity Strategy Fund as a small company growth fund; and merging Institutional Government Adjustable Portfolio into the Adjustable Rate Mortgage This article is about the US mortgage type. For an international perspective, see Variable rate mortgage. An adjustable rate mortgage (ARM) is a mortgage loan where the interest rate on the note is periodically adjusted based on an index. Securities Fund, a similar Piper Capital fund. These plans are each subject to shareholder approval. "Piper Capital proposed these plans to the board of each fund to better meet our clients' needs for diversification," said Paula Meyer, director of marketing. "This reorganization will provide clients with a more complete family of investment options that will help fulfill their investment goals." The proposed changes for each of the three funds are as follows: Restructure Institutional Government Income Portfolio as an Intermediate Bond Fund and re-open it to investors. Shareholders will be asked to approve discontinuance Cessation; ending; giving up. The discontinuance of a lawsuit, also known as a dismissal or a non-suit, is the voluntary or involuntary termination of an action. DISCONTINUANCE, pleading. A chasm or interruption in the pleading. 2. of the fund's policy limiting investments to U.S. government securities. If this proposal is approved, the investment strategy of the Institutional Government Income Portfolio would be revised to include a broad range of debt securities. These securities include: U.S. government securities (including U.S. government mortgage-related securities); privately issued mortgage-related securities; corporate fixed income securities; asset-backed securities Asset-backed security A security that is collateralized by loans, leases, receivables, or installment contracts on personal property, not real estate. asset-backed security A debt security collateralized by specific assets. and Yankee bonds Yankee bonds Foreign bonds denominated in U.S. dollars and issued in the United States by foreign banks and corporations. These bonds are usually registered with the SEC. Such as, bonds issued by originators with roots in Japan are called Samurai bonds. . The fund, which has been closed to new investors since June 14, 1994, would be re-opened under the name Piper Funds Inc. - Intermediate Bond Fund. The fund would have a $250 minimum investment and maintain its investment objective of high current income consistent with preservation of capital Preservation of Capital An investment strategy whose primary goal is to prevent the loss of an investment's total value. Notes: For investors using the capital preservation strategy to achieve their goal, they must ensure their portfolio is producing a return that is at . Worth Bruntjen, who has been primarily responsible for the day-to-day management of the fund since its inception in 1988, would be joined by co-managers Bruce Salvog and David Steele
David Stanley Steele (born: 29 September 1941 in Bradeley, Staffordshire), was an English international cricketer. . Together they would share responsibility for implementing the new investment strategy. Restructure the Equity Strategy Fund as a new Small Company Growth Fund. Shareholders will be asked to approve a new investment objective for the fund of long-term capital appreciation. The Equity Strategy Fund, managed by Ed Nicoski since its inception in 1987, has an objective of high total investment return consistent with prudent investment risk. If shareholders approve this proposal, the fund's investment strategy will be revised to that of a small company growth fund, investing primarily in common stocks of small companies with a $500 million average market capitalization Market Capitalization A measure of a public company's size. Market capitalization is the total dollar value of all outstanding shares. It's calculated by multiplying the number of shares times the current market price. This term is often referred to as market cap. . The fund currently invests in common stocks of companies representing a number of economic sectors. In addition, the fund would be renamed Piper Funds Inc. - Small Company Growth Fund. Sandra Shrewsbury would head the team responsible for day-to-day management. Merge Institutional Government Adjustable Portfolio into Adjustable Rate Mortgage Securities Fund (ARMS). Shareholders will be asked to approve the merger of the two funds which will be accomplished by a sale of the assets of Institutional Government Adjustable Portfolio to the ARMS Fund in exchange for ARMS Fund shares. If this plan is approved, shareholders will receive shares of the ARMS Fund in exchange for their shares of Institutional Government Adjustable Portfolio. The exchange would be on a net asset value basis and shareholders would incur no sales charges Sales Charge A commission or fee paid by an investor at the time of purchasing mutual fund shares. The charge is paid to a mutual fund salesperson or financial advisor and is intended to provide compensation for the financial salesperson's efforts in assisting their client select . The two funds have similar investment objectives (current income consistent with low volatility of principal) and are managed by Tom McGlinch. Piper Capital proposed the reorganization because Institutional Government Adjustable Portfolio has been unable to attract and retain sufficient assets for its continued operation to be economically feasible. Piper Capital anticipates that proxy statements Proxy Statement A document containing the information that a company is required by the SEC to provide to shareholders so they can make informed decisions about matters that will be brought up at an annual stockholder meeting. explaining these proposed changes will be mailed to shareholders during August. Founded in 1985, Piper Capital Management Incorporated is a money management company with approximately $9 billion under management. Piper Capital Management has offices in Minneapolis, Denver and Seattle. It is a subsidiary of Piper Jaffray Piper Jaffray & Co. (NYSE: PJC), often shortened to just Piper Jaffray or PiperJaffray, is a U.S. middle-market investment banking firm based in Minneapolis, Minnesota and is a focused on delivering financial advice, investment products and transaction execution Companies Inc., whose other subsidiaries include Piper Jaffray Inc., a retail brokerage and capital markets company, fund distributor, and NASD NASD See: National Association of Securities Dealers NASD See National Association of Securities Dealers (NASD). member; and Piper Trust Company, a provider of trust services to individuals and institutions. CONTACT: Marta von Loewenfeldt Corp. Comm See comms. . 612/342-6584 |
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