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PRUDENTIAL GOVERNMENT SECURITIES TRUST
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(Short-Intermediate Term Series)
Supplement Dated August 24, 2000
Prospectus Dated January 31, 2000
The Board of Trustees of Prudential Government Securities Trust (the Fund)
has recently approved a proposal to exchange the assets and liabilities of
Short-Intermediate Term Series (the Series) of the Fund for shares of Prudential
Government Income Fund, Inc. (Government Income Fund). Class A and Class Z
shares of the Series would be exchanged at net asset value for the respective
Class A and Class Z shares of equivalent value of Government Income Fund.
The transfer has been approved by the Trustees of the Fund and by the Board
of Directors of Government Income Fund and is subject to approval by the
shareholders of the Series. The shareholders' meeting is scheduled to occur in
December 2000. It is anticipated that a proxy statement/prospectus relating to
the transaction will be mailed to the Series' shareholders in early November
2000.
Under the terms of the proposal, shareholders of the Series would become
shareholders of Government Income Fund. No sales charges would be imposed on the
proposed transfer. The Fund anticipates obtaining an opinion of its counsel or a
ruling from the Internal Revenue Service that the transaction will not result in
gain or loss to shareholders of the Series for federal income tax purposes.
Effective immediately, the Fund will no longer accept orders to purchase or
exchange into shares of any class, except for (1) certain Retirement and
Employee Plans (excluding IRA accounts) that are currently shareholders, and
successor or related programs and plans, (2) investors who have executed a
Letter of Intent prior to August 24, 2000, (3) shareholders who have elected to
reinvest dividends and/or distributions and (4) current shareholders
participating in automatic investment plans. The current exchange privilege
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of obtaining shares of other Prudential Mutual Funds and the current redemption
rights will remain in effect until the transaction is consummated.
The investment objective of Government Income Fund is to seek high current
return. The Government Income Fund normally invests at least 65% of its total
assets in U.S. Government securities, including U.S. Treasury bills, notes,
bonds, strips and other debt securities issued by the U.S. Treasury and
obligations, including mortgage-related securities, issued or guaranteed by the
U.S. Government, its agencies or instrumentalities.
