Centurion Funds of Phoenix, Ariz. has filed a proxy statement with the Securities and Exchange Commission seeking to do a one-for-three reverse split in its Centurion U.S. Contra Fund.

In a reverse split, a fund reduces the number of its shares outstanding and increases the net-asset value of individual shares. In the proposed split, three shares will be combined into one.

The proposal has been approved by the fund's Board of Directors but has yet to be approved by the fund's shareholders.

The reverse split is being proposed to prevent the fund's net asset value from falling below $1.00 and to attract investors, according to the filing. The fund's net asset value has been decreasing since the fund's inception, in 1998. As of Nov. 21, it was $5.56. The proposed one-for-three reverse split would increase the net asset value to approximately $16.68, based on the Nov. 21 value. As of that date, the fund had 7,155,216 shares outstanding.

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