What this means to the future of retirement saving.
NEWARK, N.J.--(BUSINESS WIRE)--July 23, 2008--Following a tradition of innovation within the variable annuity industry, Prudential Annuities, the domestic annuity business for Prudential Financial, Inc. (NYSE:PRU) today introduced three new turnkey asset allocation investment options. Two of the new portfolios incorporate alternative asset classes as part of their core holdings. The new portfolios, which involve relationships with new and existing investment subadvisor firms, will further strengthen the company’s innovative investment platform – now featuring 18 asset allocation options .
“We’re continuing to expand our investment options to provide broad flexibility that can work in tandem with our guarantees to give annuity investors opportunities to maximize and protect their retirement income,” said Timothy Cronin, chief investment officer for Prudential Annuities. “The two new alternative strategy portfolios were custom designed to deliver our investors strategies that are not available from any other variable annuity manufacturer.”
Prudential Annuities’ position as a leader in offering alternative investment strategies is reflected in the new Advanced Series Trust (AST) Academic Strategies Asset Allocation Portfolio and AST Schroders Multi-Asset World Strategies Portfolio. These additions allow Prudential Annuities to help financial professionals provide investors with more options to diversify with non-traditional asset classes that don’t necessarily move in step with stocks and bonds. By increasing its offering to four portfolios with uncorrelated asset classes, the firm is enhancing the alternative investment strategy focus that it began in 2006.
“Including alternative asset classes provides opportunities for diversification that can potentially increase expected return, while striving to lower overall volatility within a portfolio,” Cronin said. “Similar alternative asset classes have traditionally been used by institutions and endowment managers, but until recently, have generally not been made available to annuity investors.”
AST Academic Strategies Asset Allocation Portfolio offers the latest research and strategies used by leading endowment fund managers to provide exposure to traditional investments with a full range of non-traditional asset classes. Quantitative Management Associates, an investment manager of equity and asset allocation portfolios for institutional and retail clients, and Prudential Investments LLC, work in consultation with Advanced Quantitative Consulting (AQC) to determine the overall asset allocation strategy. AQC was founded by Dr. Christopher C. Geczy and Dr. Jeffrey F. Jaffe. In addition to their work at AQC, Dr. Geczy is an Adjunct Associate Professor of Finance at The Wharton School and Dr. Jaffe is an Associate Professor of Finance at The Wharton School.
Schroders’ U.S. registered investment advisers will manage Prudential’s AST Schroders Multi-Asset World Strategies Portfolio. Schroders is a London-based asset manager with approximately $259 billion in assets managed globally. With an established global perspective on world markets (and providing the most international exposure of all of Prudential Annuities’ alternative strategy portfolios), Schroders employs a disciplined flexible global asset allocation approach using traditional and alternative strategies in managing an all-weather core portfolio, while emphasizing the management of risk and volatility.
The third new option is the AST Focus Four Plus Portfolio. This portfolio provides exposure to four distinct quantitative equity market strategies managed by First Trust Advisors L.P. and exposure to the “core plus” fixed income strategy of Western Asset Management Company and Western Asset Management Company Limited. The AST Focus Four Plus Portfolio’s use of these strategies and asset classes is designed to increase investment diversification and lower expected volatility.
“These new asset allocation options demonstrate our ability to provide innovative investment strategies for Americans in or approaching The Retirement Red Zone®—the critical investment window five years before and after retirement,” Cronin continued.
Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $631 billion of assets under management as of March 31, 2008, has operations in the United States, Asia, Europe, and Latin America. Leveraging its heritage of life insurance and asset management expertise, Prudential is focused on helping approximately 50 million individual and institutional customers grow and protect their wealth. The company’s well-known Rock symbol is an icon of strength, stability, expertise and innovation that has stood the test of time. Prudential's businesses offer a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds, investment management, and real estate services. For more information, please visit http://www.news.prudential.com/.
Guarantees are backed by the claims-paying ability of the issuing company and do not apply to the underlying investment accounts in the variable annuity.
Investors should consider the contract and underlying portfolios’ investment objectives, risks, charges and expenses carefully before investing. This and other important information are contained in the prospectuses, which can be obtained from your financial professional. You should read the prospectuses carefully before investing.
Variable annuities are appropriate for long term investing and designed for retirement purposes. Investment return and principal value of an investment will fluctuate so that an investor’s unit values, when redeemed, may be worth more or less than their original cost. Withdrawals or surrenders may be subject to surrender charges. Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59½, may be subject to an additional 10% federal income tax penalty. Withdrawals, for tax purposes, are deemed to be gains out first. Withdrawals can reduce the living benefit, death benefit and account value.
Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Your licensed financial professional can provide you with complete details.
Asset allocation does not ensure a profit or protect against loss. No assurance can be given that a portfolio’s objectives will be achieved. Alternative investments are speculative and include a high degree of risk. An investor could lose all or a substantial amount of his/her investment. Alternative investments are suitable only for suitable, long-term investors who are willing to forgo liquidity and put capital at risk for an indefinite period of time.
Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ, or by Prudential Annuities Life Assurance Corporation, Shelton, CT. All are distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Wachovia Corporation is the majority owner and Prudential Financial, indirectly through subsidiaries, is a minority owner of Wachovia Securities, LLC. Prudential Annuities is a business unit of Prudential Financial.
“Prudential Annuities” is a business division of Prudential Financial, Inc. Reference to Prudential Annuities as the “Highest Daily Company” is for marketing purposes only and does not mean that Prudential Annuities is a corporation or any other legal entity organized under State or Federal law.
Prudential Financial, the Rock logo, and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.
Prudential Investments LLC and Quantitative Management Associates LLC, an investment manager of equity and asset allocation strategies for institutional and retail clients, are both Prudential Financial companies.
Schroder Investment Management North America Inc. and its London-based affiliate, Schroder Investment Management North America Limited are the Investment Advisors to the Prudential AST Schroders Multi-Asset World Strategies Portfolio. Schroders plc is the parent company of these entities along with various other subsidiaries and collectively are referred to as “Schroders”.
IFS-A151321 Ed. 07/2008