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Intended for Financial Professional and Institutional Plan Sponsor Use

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Prudential Day One® Target Date Funds
Will the Next 10 Years Look Like the Last 10 Years?

Markets have been kind in the past decade, providing stronger than average returns with lower than average volatility and drawdowns. However, as we look forward toward a changing market environment, many are concerned about how a market pullback could affect their most vulnerable plan participants – those nearing retirement. Retiring in a declining market can have a potentially devastating impact on participants’ retirement outcomes and on retirement plans overall.

The time to re-evaluate your target date fund selection is now. Looking at how TDFs have performed during market pullbacks over the last decade may provide insights into how they may perform in a more significant and protracted decline.

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See how the Prudential Day One® Target Date Funds have been performing
during the recent volatility.

 

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Source: PGIM, Morningstar as of 6/30/2019. Periods beginning prior to 2013 represent Prudential Day One Target Date 2010 Vintage and its Morningstar Category. Periods beginning between 2014 and 2017 represent performance of Prudential Day One Target Date 2015 Vintage and its Morningstar Category. Periods beginning 2018 and later represent performance of Prudential Day One Target Date 2020 Vintage and its Morningstar Category. These hypothetical investment scenarios are for illustrative purposes only and are not a representation of actual client experience. Calculated by PGIM Investments using data from Morningstar. All rights reserved. Used with permission. An investment cannot be made directly into an index.

The S&P 500 Index is a market-weighted index of 500 of the largest U.S. stocks in a variety of industry sectors. An investment cannot be made directly in an index. Past performance is no guarantee of future results.

The performance quoted represents past performance. The investment return and principal value will fluctuate so that an investor's shares, when redeemed, may be worth more or less than the original cost. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. For the most recent performance of the Day One Funds separate accounts, please visit the Day One Funds separate account performance page.

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 and 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 as the target date approaches and for 10 years after 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. 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 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. PRIAC is solely responsible for its own contractual obligations and financial condition.

The Day One Funds, as insurance company separate accounts, 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, 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 insurance regulators. Therefore, investors are generally not entitled to the protections of the federal securities laws.

© 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: 1027963-00003-00 Ed. 04/2020