105 0 Kommentare PGIM announces enhancements to target date funds

PGIM,¹ the $1.27 trillion global investment management business of Prudential Financial, Inc. (NYSE: PRU), has announced plans to enhance its suite of target date funds (TDFs) to better serve shareholders, including defined contribution (DC) plan participants, and their retirement outcomes. Primary enhancements to the suite of mutual funds and collective investment trusts (CITs) include:

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20231010975942/en/

“By reducing fund expenses and integrating financial wellness into the conversation, we believe our platform can help deliver the retirement income investors need.” --Michael Miller, Head of PGIM DC Solutions (Photo: Business Wire)

New name: Currently branded as the Prudential Day One Funds, the funds will be renamed the PGIM Target Date Funds

Lower fees: PGIM is lowering the net expense ratio for the target date mutual funds from 0.40% to 0.25%.² In addition, the expense ratio for the institutional share class of the CITs is expected to drop from 0.34% to 0.19%.³

Adjustments to underlying investments: PGIM will replace select underlying actively managed equity strategies with passively managed equity strategies. This move allows PGIM to offer a thoughtful blend of active and passive management to keep investment expenses low, while providing the ability to add value and mitigate risks with active management.

The overarching investment objective and glidepath of the TDFs will remain the same, and their performance profile is not expected to change. These enhancements will become effective on or around Dec. 11, 2023.

PGIM Target Date Funds: Designed to help achieve successful retirement outcomes
PGIM’s TDF glidepath is designed to combat three of the greatest risks participants face during their lifetime.

“Whether it’s not saving enough, retiring during a period of market volatility, or experiencing high inflation during retirement – each of these scenarios can be potentially life-altering to the average American worker,” explained Jeremy Stempien, portfolio manager and strategist, PGIM DC Solutions.

To address these risks, the funds take a differentiated investment approach versus comparable TDFs, with:

Higher-than-average exposure to growth assets earlier in the accumulation stage,
Lower-than-average equity exposure around retirement,
An increased allocation to asset classes like TIPS, commodities and real estate during the retirement years, which have historically performed well during inflationary periods.

PGIM RetireWell Solutions

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