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Intended for Financial Professional and Institutional Plan Sponsor Use
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The Glidepath
Solving for the Right Risks at the Right Time
The Prudential Day One® Funds follow a glidepath specifically designed to address the risks that pose the greatest danger to an individuals retirement: not accumulating enough assets, protecting those assets when they are at the greatest risk, and shielding them from the eroding effects of inflation.
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Preservation Stage
During the Preservation Stage, the Prudential Day One Glidepath is designed to lower equity exposure when you have the most to lose and don't have time to recover losses.
During the Preservation Stage, the Prudential Day One Glidepath is designed to lower equity exposure when you have the most to lose and don't have time to recover losses.
Does not represent actual glidepath. For illustrative purposes only
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Risk: Significant Market Declines
As participants near retirement, there is less time to recover from significant losses.
Even with identical average returns and annual withdrawal rates, two portfolios could result in very different outcomes over 30 years in retirement due to the timing of market downturns.
Solution: Reducing Volatility
To mitigate the risk of significant market declines, the Prudential Day One Funds reduce equity exposure and increase fixed income exposure in the 10 years leading up to and 10 years beyond the target date.
To mitigate the risk of significant market declines, the Prudential Day One Funds reduce equity exposure and increase fixed income exposure in the 10 years leading up to and 10 years beyond the target date.
Source: PGIM Investments. Chart is for illustrative purposes only and does not represent any particular security.
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Investment Vehicles
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This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice as defined by the Department of Labor’s Fiduciary rule or otherwise. This information is not a recommendation about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.
The target date is the approximate date when investors plan to retire and may begin withdrawing their money. The asset allocation of the target date funds will become more conservative until the date which is ten years prior to the target date by lessening the equity exposure and increasing the exposure in fixed income investments. The principal value of an investment in a target date fund is not guaranteed at any time, including the target date. There is no guarantee that the fund will provide adequate retirement income.
A target-date fund should not be selected solely based on age or retirement date. Before investing, participants should carefully consider the fund's investment objectives, risks, charges and expenses, as well as their age, anticipated retirement date, risk tolerance, other investments owned, and planned withdrawals.
The stated asset allocation may be subject to change. It is possible to lose money in a target date fund, including losses near and following retirement. Investments in the Funds are not deposits or obligations of any bank and are not insured or guaranteed by any governmental agency or instrumentality.
Prudential Day One Funds may be offered as: (i) insurance company separate accounts available under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, a Prudential Financial company, (ii) collective investment trust funds established by Prudential Trust Company, as trustee, a Pennsylvania trust company located in Scranton, PA and a Prudential Financial company, and (iii) registered mutual funds offered through Prudential Investment Management Services LLC (PIMS), Newark, NJ, a Prudential Financial company. Each of PRIAC and Prudential Trust Company is solely responsible for its own contractual obligations and financial condition. Offers of the collective investment trust funds may only be made by sales officers of Prudential Trust Company.
The Prudential Day One IncomeFlex Target® Funds were designed for use with Prudential IncomeFlex Target, an in-plan guaranteed retirement income product, and are available as insurance company separate accounts under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT. PRIAC does not guarantee the investment performance or return on contributions to those separate accounts. PRIAC is solely responsible for its financial condition and contractual obligations. Availability and terms may vary by jurisdiction, subject to regulatory approvals. Guarantees are based on claims-paying ability of the insurance company and are subject to certain limitations, terms and conditions. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Contract form #GA-2020-TGWB4-0805. For more information, participants should access the participant service center or call 1-877-778-2100 for a copy of the Prudential IncomeFlex Target Important Considerations before investing. PRIAC is a Prudential Financial company.
Please note that the Prudential Day One IncomeFlex Target Funds follow a different glidepath than the Day One Funds.
The Day One Funds, as insurance company separate accounts or collective investment trusts, are investment vehicles available only to qualified retirement plans, such as 401(k) plans and government plans, and their participants. Unlike mutual funds, The Day One Funds, as insurance company separate accounts or collective investment trusts, are exempt from Securities and Exchange Commission registration under both the Securities Act of 1933 and the Investment Company Act of 1940, but are subject to oversight by state banking or insurance regulators, as applicable. Therefore, investors are generally not entitled to the protections of the federal securities laws.
For Mutual Funds: Consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus and the summary prospectus contain this and other information about the fund. Contact your financial professional or call (877) 275-9786 for a prospectus and the summary prospectus. Read them carefully before investing.
© 2019 Prudential Financial, Inc., and its related entities. Prudential, the Prudential logo, the Rock symbol, Prudential Day One, and Bring Your Challenges are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.
For Compliance Use Only: 1014582-00001-00 Ed. 12/2018