The Managed Assets Consulting Services (MACS) program is a discretionary, comprehensive, customized advisory program, where the investment decisions are granted to a third party-in the case of MACS, you grant discretion to the selected manager(s). The program offers a powerful combination of professional money management and flexibility supported by a foundation of proprietary research.
The MACS program provides you with access to a network of affiliated and unaffiliated investment managers, across a spectrum of asset classes, who are usually available only to large institutional investors. Each manager has been thoroughly screened by experienced investment analysts from Prudential Investments, LLC's Strategic Investment Research Group (SIRG) and is subject to ongoing monitoring to ensure high investment standards.
Prudential Financial Planning Services (PFPS) offers two types of MACS programs-Separately Managed Accounts and Diversified Multi-Strategy Portfolios.
Separately Managed Accounts
Separately Managed Accounts (SMA) offer an investment advisory program that is generally only available to large institutions and very wealthy investors. A SMA is an investment account that is owned by an individual investor and managed by a professional investment manager. In contrast to mutual funds (which are professionally managed on behalf of many mutual-fund holders), these managed accounts are personalized investment portfolios tailored to the specific needs of the individual investor. The accounts give you access to a broad universe of investment managers, screened and researched by SIRG, from more than 40 firms, and to more than 75 investment strategies across the spectrum of major asset classes, i.e., Core Fixed Income to U.S. Large Cap Growth.
The guidance of an experienced Prudential financial professional is crucial in developing an asset allocation plan that is right for you. He or she will help you define your investment strategy based upon your financial goals, preferences, and attitude toward risk tolerance. Based upon your objectives, a customized asset allocation is then developed. Once your personalized asset allocation has been developed and, depending on your investment amount, you may choose a complete asset allocation strategy (more than one SMA) or a single investment manager (one SMA) for a specific asset class.
Diversified Multi-Strategy Portfolios
A Diversified Multi-Strategy Portfolio (DMSP) is a sophisticated investment strategy that seeks to limit market exposure by combining Separately Managed Accounts and Exchange-Traded Funds (ETFs) into a single diversified account.
The DMSP program offers you a choice of nine model portfolios. The portfolios, screened and researched by SIRG, reflect a specific range of risk tolerances-conservative, moderate, and aggressive-and offer varying degrees of diversification. The portfolios can be customized to meet your unique investment needs.
The process of choosing which DMSP is right for you begins with your Prudential financial professional. He or she will help you define your investment policy, preferences, and attitude toward risk tolerance. Once your profile has been determined, you can choose the model portfolio that works best for you.
Some of the benefits of MACS Accounts include:
Professional Management
MACS accounts offer you access to the experience and resources of investment managers who tailor the portfolio to your financial objectives. Based upon your investment objectives, you will select a manager(s) from a network of affiliated and unaffiliated investment managers.
Direct Ownership of Securities
You own the securities purchased by the investment manager, which can help you manage any tax-consequences.* A benefit of owning the securities outright is you are not subject to gains earned by other shareholders.
- Managing tax consequences. The cost basis for each security in your portfolio is established at the time of purchase. This enables you to coordinate year-end tax management with your financial professional, tax professional and investment manager.
- Customizing your portfolio. You may request that your investment manager exclude certain securities or industries from your portfolio, such as companies in which you already have a large exposure to or those that you wish not to invest in at all.
Transparency of Holdings
You know exactly what securities are being held in your account and when those securities are purchased or sold.
Research-Screened Mutual Funds (available only with SMAs)
Mutual Funds can help complete your asset allocation and provide diversification. Mutual funds available in the MACs program are classified by actual holdings. To reduce portfolio overlap, you can choose mutual funds whose investments are not substantially similar to the asset style of those purchased by the investment manager.
A Single Asset Based Program Fee
You pay a single annualized program fee, based on your assets under management. The fee, which is payable quarterly, covers investmentcounseling, portfolio activity and other ongoing program expenses.
- A Disciplined Process
Investing in the MACS program begins with an in-depth fact-finding questionnaire administered by your Prudential financial professional. The questionnaire focuses on your financial goals, time horizon, investment preferences, and attitude toward risk tolerance. The resulting financial analysis will allow you to determine your financial objectives, appropriate investment guidelines, and investment manager search criteria.
Upon completion of your financial analysis, your Prudential financial professional will help you select investment managers who will assist you in achieving your financial goals.
A More Precise Asset Allocation
Our broad, yet highly selective, menu of investment managers and mutual funds enables you to precisely target your financial goals. This precision helps you obtain a more diversified and effective asset allocation strategy. Diversification can lead to more consistent returns, lower volatility, and a greater chance of achieving your financial objectives.
Rigorous Professional Research
SIRG uses analytical tools to evaluate the quality and integrity of an investment manager. Criteria include, but are not limited to, the experience and stability of the manager's investment team, a consistent and verifiable five-year performance record, and the manager's commitment to compliance and ethics. This research enables you to select managers with confidence, and ongoing oversight helps make sure that your managers maintain the high standards that led to their selection.
Comprehensive Reporting-Quarterly Performance Report
Every quarter, you will receive a Performance Report. The Performance Report helps you and your Prudential financial professional review performance data in relation to your specific goals. It can help you fine-tune your investment strategy as your goals evolve and the markets change.
The Performance Report can also help you:
- Keep up with market developments
- Measure progress toward your goals
- Evaluate your asset allocation
- Monitor performance of investments
- Review activity in your account and monitor tax implications
Additional Information
Diversification does not assure a profit or protect against loss in declining markets.
Investing involves risks. The investment return and principal value will fluctuate and shares when sold may be worth more or less than the original cost. Past performance is not a guarantee of future results. Since no one manager/investment program is suitable for all types of investors, this material is provided for informational purposes only. We need to review your investment objectives, risk tolerance, and liquidity needs before introducing suitable manager/investment programs. There is no assurance the portfolios will achieve their objectives.
Mutual fund investing involves risk. Some mutual funds have more risk than others. The investment return and principal value will fluctuate and shares, when sold may be worth more or less than the original cost. There is no assurance a Fund's objectives will be achieved. The risks associated with each fund are explained more fully in each fund's respective prospectus.
Consider a fund's investment objectives, risks, charges, and expenses carefully before investing. The prospectus contains this and other information about the fund. Contact your Prudential financial professional for a prospectus and read it carefully before investing.
* Neither Prudential nor its financial professionals offer legal, tax, or accounting advice. Please consult with your own advisors regarding your particular situation.
Strategic Investment Research Group (SIRG), is a unit of Prudential Investments, LLC and a research unit of Prudential Financial.
Securities products and services are offered through: Pruco Securities, LLC, and Prudential Investment Management Services, LLC, both members SIPC and located in Newark, NJ, or Prudential Annuities Distributors, Inc., located in Shelton, CT. Investment advisory services are offered through Prudential Financial Planning Services, a division of Pruco Securities, LLC. All are Prudential Financial companies. Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities. Site for U.S. persons only.
Prudential Financial, its affiliates, and their licensed financial professionals do not render tax or legal advice. Please consult with your tax and legal advisors regarding your personal circumstances.
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