January 2, 2013 (PLANSPONSOR.com) - Prudential Retirement added American Century Investments’ line-up of target-date funds to its guaranteed income solution for defined contribution (DC) plans.
Prudential IncomeFlex Target with LIVESTRONG Portfolios is available immediately. LIVESTRONG Portfolios are diversified, time-based portfolios that automatically adjust as their target goal date approaches – 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.
As the target year approaches, the portfolio’s allocation generally 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.
“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. “These income guarantees combined with the benefits of target-date funds offer investors protection from market downturns and help protect their future retirement income.”