Prudential Tries Novel Diversification Tactic

Prudential Investments of Newark, N.J., has introduced three unusual sector funds that mix enhanced index investing with active management. The funds, introduced May 26, are the Prudential Technology Fund, the Prudential Health Sciences Fund and the Prudential Financial Services Fund.

Fifty percent of the assets in each fund will be managed as enhanced index funds and 50 percent will be actively managed. The index in each fund contains stocks selected from the Standard & Poor's SuperComposite 1500 Index, which combines the S&P 500, S&P 400 and S&P 600 indices and represents 87 percent of the total market capitalization in the U.S.