Prudential Retirement is now offering defined contribution plans its guaranteed income solution with American Century Investments' line-up of target-date funds Prudential IncomeFlex Target with LIVESTRONG Portfolios available immediately. Prudential Retirement is a business unit of Prudential Financial, Inc. PRU.
“Prudential Retirement is pleased to be able to help place more and more American workers on a secure path to and through retirement by increasing the number of target-date fund platforms that can be used to meet their guaranteed lifetime income needs,” said Srinivas Reddy, senior vice president of Prudential Retirement's Institutional Income. “We are happy to welcome American Century Investments, a leading privately held investment management firm, to an impressive list of fund partners offering income guarantees that already includes T. Rowe Price, Fidelity, J.P. Morgan and Vanguard. These income guarantees combined with the benefits of target-date funds offer investors protection from market downturns and help protect their future retirement income.”1
LIVESTRONG Portfolios are diversified, time-based portfolios that automatically adjust as their target goal date approaches. A portfolio target date is the approximate year when investors plan to start withdrawing their money. The principal value of the investment is not guaranteed at any time, including at the target date. Each target-date portfolio seeks the highest total return consistent with its asset mix. Each year, the asset mix and weightings are adjusted to be more conservative. In general, as the target year approaches, the portfolio's allocation becomes more conservative by decreasing the allocation to stocks and increasing the allocation to bonds and money market instruments. By the time each fund reaches its target year, its target asset mix will become fixed and will match that of the LIVESTRONG Income Portfolio.
“We're delighted to partner with Prudential Retirement to combine our established LIVESTRONG Portfolios with their guaranteed lifetime income product,” Peter Cieszko, chief client officer, Americans, American Century Investments, said. “This is a natural evolution of our partnership as a defined contribution investment only provider.”
Serving investment professionals, institutions, corporations and individual investors, American Century Investments offers a variety of actively managed investment disciplines through an array of products including mutual funds, institutional separate accounts, commingled trusts and sub-advisory accounts. The company's 1,300 employees serve clients from offices in New York; London; Hong Kong; Mountain View, Calif. and Kansas City, Mo.
LIVESTRONG is a registered trademark of the LIVESTRONG Foundation. American Century Investment Services, Inc. has entered into an agreement with the Foundation for rights to use the LIVESTRONG name. For more information about the foundation, visit LIVESTRONG.org
Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of over 3.5 million participants and annuitants. Prudential Retirement has $251.6 billion in retirement account values as of September 30, 2012. Retirement products and services, including IncomeFlex Target, are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or its affiliates.
Prudential Financial, Inc. PRU, a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential's diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential's iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit http://www.news.prudential.com/.
1Guarantees are based on the claims-paying ability of the insurance company and are subject to certain imitations, terms, and conditions. Withdrawals or transfers (other than transfers between Active IncomeFlex Target Funds) proportionately reduce guaranteed values prior to locking in. After Lock-in withdrawals in excess of the Lifetime Annual Withdrawal Amount will reduce future guaranteed withdrawals proportionately.
Prudential IncomeFlex Target® Funds are 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. Participants should consider the objectives, risks, charges, and expenses of the Funds and guarantee features before purchasing this product. The principal value of Target date funds is not guaranteed at any time; including the target date. Like all variable investments, these funds may lose value. Availability and terms may vary by jurisdiction, subject to regulatory approvals. For this and other information, participants should access the participant website or call 877-778- 2100 for a copy of the Prudential IncomeFlexTarget Important Considerations before investing.
Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Contract form # GA-2020-TGWB4- 0805 or state variation.
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