SELECTED CAPITAL PRESERVATION TRUST
SELECTED U.S. GOVERNMENT INCOME FUND
124 East Marcy Street
Santa Fe, New Mexico 87501
1-800-243-1575
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NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
TO BE HELD September 6, 1995
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Enclosed are your Proxy Statement and Proxy for a special meeting
(the "Special Meeting") of the shareholders of the Selected U.S.
Government Income Fund (the "Fund") of Selected Capital Preservation
Trust (the "Trust") to be held at the office of the Fund, 124 East Marcy
Street, Santa Fe, New Mexico, on Wednesday, September 6, 1995, at 9:00
a.m. Mountain Daylight Savings Time ("MDST") to consider amending the
Fund's investment objective to eliminate short-term capital gains as one
of the investment objectives of the Fund.
The proposal is described in the attached Proxy Statement which
should be read carefully. Only shareholders of record on July 14, 1995
will be entitled to vote at the Special Meeting.
BY ORDER OF THE BOARD OF TRUSTEES
Louis R. Proyect
Secretary
July 31, 1995
SHAREHOLDERS OF RECORD AT THE CLOSE OF BUSINESS ON JULY 14,
1995 ARE ENTITLED TO VOTE AT THE SPECIAL MEETING. WHILE WE WOULD
LIKE VERY MUCH TO HAVE EACH OF YOU AT THE MEETING, WE REALIZE THIS
MAY NOT BE POSSIBLE. HOWEVER, WHETHER OR NOT YOU ATTEND THE
MEETING, YOUR VOTE IS IMPORTANT.
TO SECURE REPRESENTATION OF THE MOST SHARES POSSIBLE AND TO
SAVE THE EXPENSE OF FURTHER MAILINGS, PLEASE MARK YOUR
PREFERENCES, SIGN, DATE AND RETURN THE PROXY STUB IN THE ENCLOSED
ENVELOPE OR CALL 1-800-243-1575 AND ENTER FUNCTION 2 MONDAY
THROUGH FRIDAY BETWEEN 8:00 A.M. AND 4:00 P.M. MDST. IF YOU VOTE BY
TELEPHONE, YOU WILL BE ASKED FOR IDENTIFICATION, AND YOUR VOTE WILL
BE CONFIRMED BY MAIL. YOU MAY ALSO TRANSMIT YOUR PROXY BY
FACSIMILE TO 1-505-982-7004 AT ANY TIME BEFORE THE MEETING. YOU
MAY REVOKE YOUR PROXY AT ANY TIME BY MAIL, FAX OR TELEPHONE BEFORE
THE SPECIAL MEETING OR BY VOTING IN PERSON IF YOU ATTEND THE
MEETING.
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SELECTED CAPITAL PRESERVATION TRUST
SELECTED U.S. GOVERNMENT INCOME FUND
124 East Marcy Street
Santa Fe, New Mexico 87501
1-800-243-1575
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PROXY STATEMENT
July 31, 1995
This Proxy Statement is furnished in connection with the
solicitation of proxies by the Board of Trustees of Selected Capital
Preservation Trust (the "Trust") to be used at the special meeting of the
shareholders (the "Special Meeting") of the Selected U.S. Government
Income Fund (the "Fund") to be held at the office of the Fund, 124 East
Marcy Street, Santa Fe, New Mexico on Wednesday, September 6, 1995 at
9:00 a.m. Mountain Daylight Savings Time and at any adjournment thereof,
for the purpose of considering an amendment to the Fund's investment
objective.
This Proxy Statement and the accompanying Proxy are first being
sent to shareholders of the Fund on or about July 31, 1995. The expenses
of preparing, printing and mailing the Notice, Proxy Statement and Proxy
and of soliciting proxies and holding the Special Meeting will be borne by
the Fund and is not anticipated to exceed $10,000.
Proxies are solicited by mail. Additional solicitations may be made
by telephone, telegraph or personal contact by officers of the Trust and by
officers and employees of Selected/Venture Advisers, L.P., the Fund's
investment adviser and principal underwriter (the "Manager"). A Proxy
vote which has been phoned in, executed and sent by facsimile or executed
and returned by mail may be revoked by any shareholder prior to the voting
of the Proxy at the Special Meeting. Proxies may be revoked by telephone,
1-800-243-1575 (function 2), by facsimile to 1-505-982-7004 or by
writing to the Secretary of the Trust at the offices of the Fund, 124 East
Marcy Street, Santa Fe, New Mexico, 87501. Proxies may also be revoked
by voting in person at the Special Meeting.
Shares represented by Proxies will be voted in accordance with the
instruction received. In the absence of any instruction, such shares will
be voted for the approval of the proposal. The Board of Trustees knows of
no other matters to be brought before the Special Meeting. If, however,
other matters are properly presented for consideration, Proxies not
otherwise limited will be voted in accordance with the judgment of the
persons named in the Proxy, acting pursuant to the discretionary authority
contained therein.
Shareholders of record at the close of business on July 14, 1995 (the
"Record Date") will be entitled to one vote for each share and a fractional
vote for each fractional share held. On the Record Date, there were
outstanding ________________ shares of the Fund.
PROPOSED AMENDMENT OF THE FUND'S INVESTMENT OBJECTIVE
Currently, the Fund's Investment Objective is stated as follows:
...to obtain current income and short-term capital gains consistent
with preservation of capital by investing primarily in U.S. Government
Securities of varying maturities.
It is proposed to eliminate the words "and short-term capital gains"
so that the investment objective would read as follows:
...to obtain current income consistent with preservation of capital
by investing primarily in U.S. Government Securities of varying
maturities.
This change was proposed by the Manager and approved by the Board
of Trustees to be effective October 1, 1995. To be effective, the change
must be approved by the affirmative vote of the holders of the lesser of
(i) 67% or more of the shares of the Fund present in person or represented
by proxy at the meeting if the holders of more than 50%
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of the outstanding shares of the Fund eligible to vote at the meeting are
present in person or represented by proxy or (ii) more than 50% of the
outstanding shares of the Fund eligible to vote at this meeting.
The Manager assumed investment responsibility for the Fund on May
1, 1993 and has now had over two years' experience in managing the Fund.
The Manager believes, and the Board of Trustees concur, that it will be
beneficial to the shareholders for the Fund to invest for current income
through holdings of U.S. Government Securities without engaging in
concerted portfolio trading to achieve short-term capital gains.
Therefore, obtaining short-term gains in themselves should not be a
required objective of the Fund. There is no tax advantage to the
shareholders to include short-term gains as a stated goal of the Fund
because there is no difference in the tax treatment of dividends from
interest income or short-term capital gains.
When the Fund was initiated, the former manager utilized futures
and options trading as a significant part of its investment approach.
These techniques can produce material short-term gains or losses. While
the Fund will continue to be able to utilize these techniques when deemed
appropriate, the current Manager does not intend to utilize these
derivatives to a significant extent and currently is not utilizing them at
all. Therefore, the attempt to provide short-term gains either by
significant portfolio trading or by investments in options and futures are
not expected to be important factors in the Fund's performance. The
change in the Fund's investment objective will not prohibit the Fund from
trading for short-term capital gains when the Manager deems such trading
to be advantageous for the Fund. The Manager and your Trustees are
committed to seeking current income through conservative investment
policies consistent with preservation of capital.
The Trustees urge you to vote FOR the proposal.
CERTAIN SHAREHOLDERS OF THE FUND
The following table sets forth, as of July 14, 1995, the shares of the
Fund beneficially owned by each of the Trustees of the Trust and by the
Trustees and Officers of the Trust as a group. As of such date, the
Trustees and Officers as a group owned 3.68% of the shares of the Fund
outstanding. To the Trust's knowledge, as of July 14, 1995, no person was
the beneficial owner of more than five percent (5%) of the Fund's
outstanding shares.
Name Shares Owned
---- ------------
Floyd A. Brown -
Martin H. Proyect 11,171.435
William G. Cole 122.420
Shelby M.C. Davis -
Robert J. Greenebaum 183.347
Walter E. Hoadley 1,751.324
William P. Barr -
James J. McMonagle -
Larry J. B. Robinson 18,470.463
All directors and officers as a group 31,698.989
SHAREHOLDER MEETINGS
The Trust is not required to hold annual shareholder meetings but it
will hold special meetings as required or deemed desirable. Since the
Trust does not hold regular meetings of shareholders, the anticipated date
of the next special shareholders meeting cannot be provided. Any
shareholder proposal which may properly be included in the proxy
solicitation material for a special meeting must be received by the Trust
no later than four months prior to the date proxy statements are mailed to
shareholders.
SHAREHOLDER REPORTS
A shareholder may, without charge, receive a copy of the annual
report for the year ended December 31, 1994 by calling toll free
1-800-243-1575.
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SELECTED CAPITAL PRESERVATION TRUST
SELECTED U.S. GOVERNMENT INCOME FUND
Proxy Solicited on Behalf of the Board of Trustees
The undersigned acknowledges receipt of the Proxy Statement and
hereby appoints Louis R. Proyect and Martin H. Proyect, and each of them,
the proxies of the undersigned with full power of substitution to vote at
the Special Meeting of Shareholders of Selected Capital Preservation
Trust's Selected U.S. Government Income Fund to be held at the office of
the Fund, 124 East Marcy Street, Santa Fe, New Mexico, on Wednesday,
September 6, 1995 at 9:00 a.m. Mountain Daylight Savings Time ("MDST"),
and at any adjournments thereof, all of said Fund's shares the undersigned
is entitled to vote as set forth below:
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VOTING INSTRUCTIONS
YOU MAY CAST YOUR VOTE BY ONE OF THE CONVENIENT METHODS LISTED BELOW.
1. BY PHONE: CALL TOLL FREE 1-800-243-1575 AND ENTER FUNCTION 2.
OPERATORS WILL TAKE YOUR VOTE MONDAY THROUGH FRIDAY BETWEEN 8:00
a.m. AND 4:00 p.m. MDST. YOU WILL RECEIVE CONFIRMATION OF YOUR
VOTE.
2. BY FACSIMILE: TRANSMIT EXECUTED PROXY STUB TOLL FREE TO
1-505-982-7004 AT ANY TIME DAY OR NIGHT PRIOR TO THE SPECIAL
MEETING.
3. BY MAIL: MAIL YOUR EXECUTED PROXY STUB IN THE ENCLOSED
POSTAGE-PAID ENVELOPE.
IF YOU HAVE ANY QUESTIONS, CALL 1-800-243-1575. WE APPRECIATE YOUR PROMPT
RESPONSE.
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IF YOU ARE VOTING BY MAIL OR FAX, PLEASE RETURN THIS BOTTOM PORTION
WITH YOUR VOTE AND RETAIN THE TOP PORTION. AN ENVELOPE IS ENCLOSED
FOR MAILING. IF YOU ARE FAXING YOUR PROXY, PLEASE USE BLACK INK
WHEN MARKING THIS BALLOT.
TO VALIDATE YOUR PROXY, THIS STUB MUST BE PROPERLY EXECUTED, DATED
AND RETURNED.
This proxy will be voted as specified herein. If no specification is
made, it will be voted FOR the proposal.
1. PROPOSED AMENDMENT OF INVESTMENT OBJECTIVE.
FOR AGAINST ABSTAIN
/_/ /_/ /_/
PLEASE MARK, SIGN, DATE AND RETURN THIS PROXY STUB, USING THE
ENCLOSED ENVELOPE.
Date:_____________________________, 1995 NOTE: Signature(s) should match
name(s) as printed on this
proxy. If shares are
held in name of custodian
for a minor or as trustee,
executor, or adminis-
______________________________ trator, this proxy must be
Signature signed by such custodian,
trustee, executor or
administrator, as the
_____________________________ case may be. Please
Signature indicate such fiduciary
title.
