Prudential Target Date Funds Ensure Highest Value At Maturity

July 10, 2006 ( - Prudential Retirement is now offering retirement investment options which guarantee protection of principal and guarantee investment gains despite market fluctuations.

According to a Prudential press release, the investor must hold on to the funds until maturity to get the best value of the option.

“Every business day, each of the four Capital Guarantee Funds reports a ‘Net Unit Value’ (NUV), representing the current value of the investment. The funds also have what is known as a ‘Guaranteed Maturity Unit Value’ (GMUV), which is simply the highest daily NUV attained by each fund during its lifetime,” said Scott Sleyster, executive vice president, Prudential Retirement, in the release. “If you are invested in any of the funds at the time of maturity, you are guaranteed to receive the highest value the fund ever achieved (the GMUV), regardless of the current market value or when you invested in the fund,” he added.

The new funds are available in four target maturity dates – 2010, 2015, 2020 and 2025 – and are a mix of equity and fixed income investments.

Additional benefits of the offering, according to the release, include:

  • The confidence of having Prudential Retirement Insurance and Annuity Company (PRIAC) act as a fiduciary for the selection and monitoring of the Funds’ sub-advisor, Trajectory Asset Management LLC;
  • Portfolio management from Trajectory Asset Management LLC, including automatic asset allocation and rebalancing;
  • The flexibility to buy or sell units at any time; and
  • The choice of multiple maturity dates and the ability to invest in more than one fund at the same time, mixing and matching maturity dates to help fulfill more complex investment strategies.

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