PGIM Glide Path
Intended for Financial Professional and Institutional Plan Sponsor Use.

Solving for the Right Risks at the Right Time

Our Differentiated Glidepath

A Glidepath Design to Address Risk at Every Stage

The Prudential Day One® Funds follow a glidepath that becomes more conservative as the applicable target date approaches by reducing exposure to equity investments and increasing exposure to fixed-income investments. The glidepath continues to adjust allocations in this manner for approximately 10 years past the target date.

The Day One Funds’ three stage glidepath is specifically designed to address the risks that pose the greatest danger to an individual’s retirement:

  • Not accumulating enough assets
  • Protecting those assets when they are at the greatest risk
  • Protecting them from the eroding effects of inflation

For illustrative purposes only. Not representative of the funds’ actual glidepath or the IncomeFlex Target glidepath. For more information about IncomeFlex, please see the IncomeFlex tab.

Risk: Not Taking Enough Risk

In spite of their great ability to take risk simply by virtue of their age, young investors (in their 20s) have showed an extreme degree of risk aversion caused by two massive drawdowns over the past 15 years.

The S&P 500® Index is an unmanaged index that includes 500 leading companies in the leading industries of the U.S. economy, capturing 75% coverage of U.S. equities.

Source: Morningstar as of 12/31/16. Calculated by PGIM Investments LLC using data from Morningstar. All rights reserved. Used with permission. Indexes and category averages are unmanaged and do not take into account fees and expenses. You cannot invest directly in an index or category average. Stocks are represented by the S&P 500 TR USD.

Solution: Greater Equity Exposure in Early Years

Within long-dated vintages, the Prudential Day One Funds provide among the highest exposures in the industry to assets like equities, real estate, and commodities.

Source: Unique risks associated with real estate and commodities may cause these investments to react differently to market conditions than traditional investments. Commodities may be speculative and more volatile than investments in more traditional equity and debt securities.

Addressing Accumulation Risk Video

 

 

Key Features of the Prudential Day One Funds

Designed with Cost in Mind

The Day One Funds are available in cost effective vehicle structures, combining both passive index funds and actively managed strategies

Based on Real Data

The Day One Funds asset allocation strategies are based on real savings rates and employer contributions for 850,000 actual plan participants1

Diversification with a Purpose

The Day One Funds use both traditional investments and non-traditional ones such as commodities and real estate

1Source: Prudential Retirement


These materials are for informational or educational purposes only. The information is not intended as investment advice and is not a recommendation about managing or investing your retirement savings. In providing these materials Prudential Financial, and its affiliates and subsidiaries, are not acting as your fiduciary as defined by the Department of Labor. Please consult with a qualified investment professional if you wish to obtain investment advice.


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.


The Prudential Day One Funds may be offered as mutual funds. You should consider the investment objectives, risks, charges and expenses of each fund carefully before investing. The prospectus and the summary prospectus contain this and other information about the fund. Contact your financial professional for a prospectus and the summary prospectus. Read them carefully before investing.


Shares of the registered mutual funds are offered through Prudential Investment Management Services LLC (PIMS), Newark, NJ, a Prudential Financial company.


Prudential Day One Funds may also 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, and (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. 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 Day One Funds, as insurance company separate accounts or collective investment trust funds, 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 trust funds, 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.


Please note that the Prudential Day One IncomeFlex Target Funds follow a different glidepath than the Day One Funds. 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.


© 2017 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.


0299921-00002-00 Ed. 06/2017