Two Prudential funds modify fee waiver agreements to lower fees

By Toni Weeks

San Diego, Jan. 26 - The Prudential Absolute Return Bond Fund and the Prudential Jennison Select Growth Fund announced in a 497 filing with the Securities and Exchange Commission that they have renegotiated fee waivers with the funds' investment adviser.

The Absolute Return Bond Fund entered into a new agreement with the adviser to limit various fees to 0.85% of the fund's average daily net assets. Previously, the adviser had agreed to limit the fees to 1.05% of the average daily net assets. The net result is that the net annual fund operating expenses were decreased to 1.1%, 1.85%, 0.85% and 0.85% for class A, class C, class Q and class Z shares, respectively. The old fees were 0.2% higher. The new fee waiver agreement expires Feb. 28, 2013.

The Prudential Jennison Select Growth Fund entered into an agreement with the adviser to limit fees to 0.99% of the fund's average daily net assets. Previously, the existing fee waiver agreement concerned only the 12b-1 distribution fees for class A shares, which were limited to 0.25% of the fund's class A average daily net assets. As a result of the new fee waiver, net annual fund operating expenses for each of the seven classes of shares were decreased by 0.47% of the fund's daily net assets. The new fees are 1.24% for class A shares; 1.99% for class B, class C, class M and class X shares; 1.49% for class L shares; and 0.99% for class Z shares. The new fee waiver agreement expires June 30, 2013.

Newark, N.J.-based Prudential Investments LLC is the investment adviser to the two funds.

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