PGIM TARGET DATE FUNDS
Solving for the right risks at the right time.
With a focus on meeting the income needs of participants, our target date strategy aims to provide participants with income for 30 years beyond retirement. Available in multiple vehicle structures to address a variety of plan needs, PGIM Target Date funds seek to solve for the right risks at the right time to achieve better retirement outcomes for defined contribution plan participants.
PGIM TARGET DATE 2020 FUND (MUTUAL FUND): WINNER OF 2024 LSEG LIPPER FUND AWARD
Please see disclosures for important information regarding the LSEG Lipper Fund Award.
KEY FEATURES
The three-stage glidepath, designed with the intent to help improve retirement outcomes by solving for the right risks at the right time, seeks to address the key risks that we believe pose the greatest challenges to an individual's retirement over their lifetime:
- Not taking enough risk in order to accumulate assets early in an individual’s career
- Protecting those assets against substantial market drawdowns as individuals transition toward retirement
- Preserving the purchasing power of their assets from the eroding effects of inflation during the retirement years
Our target date funds are available in cost-efficient vehicle structures, combining both passive and actively managed strategies. Their active/passive design adds value in areas where greater alpha opportunities exist and helps to reduce overall costs.
Our target date funds invest in a combination of equity, fixed income, and non-traditional asset classes.
| EQUITY | NON-TRADITIONAL | FIXED INCOME |
|---|---|---|
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Provides the potential for growth and diversification
Asset classes include:
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Allows for capital appreciation, with a low correlation to stocks and bonds, as well as a potential hedge against inflation
Asset classes include:
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Exposure, through multiple sectors, helps lower volatility
Asset classes include:
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*Direct real estate is utilized in the CIT vehicle, while real estate is implemented via global REITs in the Mutual Fund vehicle.
Explore The Glidepath
Designed to solve for the right risks at the right time, the PGIM Target Date funds offer a glidepath that addresses the risks faced by participants during the Accumulation, Preservation, and Inflation Protection stages of retirement planning.
EXPLORE OUR FUNDS
The PGIM target date funds were formerly known as The Prudential Day One target date fund series. The name change was effective on or about 12/11/2023 for the mutual funds and effective 12/6/2023 for the CITs.
MUTUAL FUND FACT SHEETS
PGIM Target Date Income Fund
Seeks a balance between preservation and conservation of capital.
COLLECTIVE INVESTMENT TRUST (CIT) FACT SHEETS
PGIM FAST FACTS
$1.4 Trn
total assets under management¹100+
clients with more than $1 billion in DC plan AUM²$177 Bn
total DC assets under management³Top 10
global asset manager for DC plans⁴
1) AUM as of 9/30/2024. PGIM is the investment management business of Prudential Financial, Inc. (PFI). PFI is the 12th largest investment manager (out of 411 firms surveyed) in terms of worldwide institutional assets under management based on Pensions & Investments’ Top Money Managers list published June 2024. This ranking represents institutional client assets under management by PFI as of 12/31/2023. Participation in the P&I ranking is voluntary and open to managers that have any kind of U.S. institutional tax-exempt AUM. Managers self-report their data via a survey. P&I sends the survey to previously identified managers and to any new managers asking to participate in the survey/ranking. No compensation is required to participate in the ranking. 2) Based on PGIM client list as of 3/31/24, compared to Pensions & Investments’ Top U.S. Plan Sponsors list as of 9/30/2023. 3) As of 9/30/2024. Total DC AUM includes assets under management by PGIM and its affiliates for defined contribution investment purposes only and includes assets held in Prudential’s general account that supports DC retirement accounts. AUM for PGIM DC Solutions is $1.3B as of 9/30/24.4) PFI is the 10th largest investment manager (out of 411 firms surveyed) in terms of U.S. defined contribution assets under management based on Pensions & Investments' Top DC Money Managers list published June 2024. This ranking represents U.S. defined contribution assets under management by PFI as of 12/31/2023. Participation in the P&I ranking is voluntary and open to managers that have any kind of U.S. institutional tax-exempt AUM. Managers self-report their data via a survey. P&I sends the survey to previously identified managers and to any new managers asking to participate in the survey/ranking. No compensation is required to participate in the ranking.
Lipper Award: Class R6 total return ranking for the 1-year period: 111 out of 139 funds; 5-year period: 50 out of 126 as of 11/30/2023. Inception date: Class R6: 12/13/2016. Lipper Funds category rankings are based on total return, do not take sales charges into account, and are calculated against all funds in each fund’s respective Lipper category. Lipper total return ranking for the 1-, 3-, and 5-year periods as of 3/31/2024 for the Mixed-Asset Target 2020 Fund category were: 118 out of 131, 6 out of 126, and 54 out of 120, respectively. Past performance is no guarantee of future results.
The LSEG Lipper Fund Awards, granted annually, highlight funds and fund companies that have excelled in delivering consistently strong risk-adjusted performance relative to their peers. The LSEG Lipper Fund Awards are based on the Lipper Leader for Consistent Return rating, which is an objective, quantitative, risk-adjusted performance measure calculated over 36, 60 and 120 months. The fund with the highest Lipper Leader for Consistent Return (Effective Return) value in each eligible classification wins the LSEG Lipper Fund Award. For more information, see lipperfundawards.com. Although LSEG Lipper makes reasonable efforts to ensure the accuracy and reliability of the data used to calculate the awards, their accuracy is not guaranteed. LSEG Lipper Fund Awards, ©2024 LSEG. All rights reserved. Used under license.
Risks—Investing involves risk. Some investments have more risk than others. The investment return and principal value will fluctuate, and investors’ shares, when sold, may be worth more or less than the original cost. Fixed income investments are subject to interest rate risk, and their value will decline as interest rates rise. Asset allocation and diversification do not assure a profit or protect against loss in declining markets. There is no guarantee a Fund’s objectives will be achieved. The risks associated with each fund are explained more fully in each fund’s respective prospectus. TIPS may experience greater losses than other fixed income securities with similar durations. 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.
This material is being provided for informational or educational purposes only and does not take into account the investment objectives or financial situation of any client or prospective clients. The information is not intended as investment advice and is not a recommendation. Clients seeking information regarding their particular investment needs should contact their financial professional.
The target date is the approximate year in which investors plan to retire. The funds are designed for investors who will either withdraw all of their assets upon retirement or who will gradually withdraw assets from the fund over a moderate time period following retirement. Each fund invests in underlying funds that provide exposure to fixed income, equity and non-traditional asset classes. The asset allocation of the target date funds will become more conservative as the target date approaches and for ten years after 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 income through retirement.
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 Fund offers no assurance that the Fund will provide adequate income to meet an investor’s retirement or financial goals. The Fund’s equity exposure may result in investment volatility that could reduce an investor’s available retirement assets at a time when the investor needs to withdraw funds.
PGIM Target Date Funds may be offered as: (i) collective investment trust funds offered by Great Gray Trust Company LLC (ii) registered mutual funds offered through Prudential Investment Management Services LLC (PIMS), Newark, NJ, a Prudential Financial company.
For Mutual Funds: Consider a fund’s investment objectives, risks, charges and expenses carefully before investing. The prospectus and summary prospectus contain this and other information about the fund. Contact your financial professional or call (877) 275-9786 for a prospectus and summary prospectus. Read them carefully before investing.
Important Information about the PGIM Target Date CITs offered by Great Gray Trust Company, LLC:
Great Gray Trust Company, LLC Collective Investment Funds (“Great Gray Funds”) are bank collective investment funds; they are not mutual funds. Great Gray Trust Company, LLC serves as the Trustee of the Great Gray Funds and maintains ultimate fiduciary authority over the management of, and investments made in, the Great Gray Funds. PGIM DC Solutions LLC has been retained to manage the assets. Great Gray Funds and their units are exempt from registration under the Investment Company Act of 1940 and the Securities Act of 1933, respectively.
Investments in the Great Gray Funds are not bank deposits or obligations of and are not insured or guaranteed by Great Gray Trust Company, LLC, any other bank, the FDIC, the Federal Reserve, or any other governmental agency. The Great Gray Funds are commingled investment vehicles, and as such, the values of the underlying investments will rise and fall according to market activity; it is possible to lose money by investing in the Great Gray Funds.
Participation in Collective Investment Trust Funds is limited primarily to qualified retirement plans and certain state or local government plans and is not available to IRAs, health and welfare plans and, in certain cases, Keogh (H.R. 10) plans. Collective Investment Trust Funds may be suitable investments for plan fiduciaries seeking to construct a well-diversified retirement savings program. Investors should consider the investment objectives, risks, charges, and expenses of any pooled investment fund carefully before investing. The Additional Fund Information and Principal Risk Definitions (PRD) contains this and other information about a Collective Investment Trust Fund and is available at www.greatgray.com/principalriskdefinitions or ask for a copy free of charge by contacting Great Gray Trust Company, LLC at (866) 427-6885.
Past performance is not a guarantee or indicator of future performance.
PGIM, PGIM DC Solutions logo and the Rock design are service marks of PFI and its related entities, registered in many jurisdictions worldwide.
For Financial Professional use only. Not for use with the Public.
© 2023 PGIM DC Solutions. All Rights Reserved.
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