Pilgrim Baxter & Associates of Wayne, Pa., a subsidiary of United Asset Management Corp. of Boston, has filed a proxy with the SEC seeking to merge its PBHG International Fund into the PBHG Global Technology and Communications Fund. The consolidation is pending shareholder approval.
The PBHG International Fund, since its inception in June 1994, has under-performed its benchmark, the Morgan Stanley Capital International Europe, Australia and Far East Index, according to the SEC filing.
Besides because of poor performance, the fund is being merged because of decreased assets. Pilgrim has advised the fund's board of directors that it believes the fund will not be able to attract "sufficient assets for continued long-term viability," according to the filing. Assets in the fund have dropped from $21.3 million in 1997 to approximately $9.5 million currently, according to the filing.
The PBHG Global Technology and Communications Fund is a new fund, begun in June. The fund has assets of $96 million, according to Morningstar. Pilgrim chose to merge the international fund with the Global Technology and Communications Fund because of their similar investment objectives, according to the filing.