PGIM CUSTOM HARVEST GLOBAL EQUITY PLUSPGIMCUSTOMHARVESTGLOBALEQUITYPLUS

The strategy seeks to: 

• Provide broad global equity exposure.
• Minimize or reduce taxes by capturing capital losses that may be used to offset capital gains inside or outside the portfolio.

After-tax performance, tax alpha and after-tax excess returns are shown for the maximum federal tax rate of 40.8%. After-tax returns decrease as the investor’s tax rate decreases. An investor should evaluate the after-tax performance shown above in light of the investor’s applicable tax rate; the tax rate shown above is used for illustrative purposes only, results will vary by investor.

¹ Excess Return is the return of the Strategy minus the return of the benchmark. Accounts in the composite could be subject to different limitations.

² Tax Alpha equals after-tax excess return minus pre-tax excess return. i.e., the [Strategy’s after-tax return less after-tax benchmark return] minus [the Strategy’s pre-tax return less pre-tax benchmark return] and may be calculated on a gross or net basis. 

ETFs and allocations subject to change. Allocations shown represent the targeted regional allocations of a newly incepted PGIM Custom Harvest 
Global Equity Plus portfolio upon initial funding at 12/31/2024. Underlying individual regional ETFs are expected to change based on individual client 
circumstance, restrictions, and trading due to on-going loss harvesting, however expected region exposure should remain inline with the MSCI ACWI ex-US 
index weights.

Past performance does not guarantee future results and current performance may be lower or higher than the past performance data quoted. The investment return and principal value will fluctuate and securities, when sold, may be worth more or less than their original cost.

Global Equity Plus composite began April 1, 2017 and is benchmarked to the MSCI ACWI Index. All performance is total return. 3 Year, 5 Year and Since Inception performance is annualized. Net returns inclusive of combined 3% management and advisory fee. Both gross and net returns reflect underlying ETF expenses and trading costs but do not reflect the reinvestment of dividends.

Download the PGIM Custom Harvest Global Equity Plus Composite presentation for fee information and criteria for composite performance creation.

Source: PGIM Custom Harvest. Actual holdings and percentage allocation in individual client portfolios may vary and are subject to change.

PGIM Custom Harvest invests client portfolios in ETFs that generally invest in equity securities. Clients will be subject to the risks associated with equity securities, which include the rapid decline of market values due to general market conditions or company-specific factors. To the extent that a particular regional ETF is a significant portion of the portfolio, factors impacting that region could cause the portfolio’s value to fluctuate more widely than a more diversified portfolio. Investing in securities issued by foreign entities carries potential foreign exposure considerations, including but not limited to the risk of: (1) political and financial instability, (2) less liquidity, (3) lack of uniform accounting, auditing and financial reporting standards, and (4) increased price volatility. Global economies and financial markets are becoming increasingly interconnected, which increases the possibilities that conditions in one country or region might adversely impact issuers in a different country or region. Foreign investments also are subject to the risk of fluctuations in the value of the U.S. dollar against the currencies in which such investments are denominated.  Foreign investing risk is increased for securities issuers and markets in emerging markets countries. Emerging markets tend to have economic, political and legal systems that are less developed and less stable than those of the United States and other developed countries. In addition, securities markets in emerging markets could be relatively illiquid and subject to extreme price volatility.  Securities in emerging markets also are subject to the risk of fluctuations in the value of the U.S. dollar against the currencies in which such investments are denominated.

The Smart Capture Investment Process seeks to provide the strategy with exposure aligned with the benchmark while generating capital losses that may be used to offset taxable gains. PGIM Custom Harvest does not seek to outperform the benchmark and thus, client portfolios may underperform other forms of active management. PGIM Custom Harvest monitors ETFs through-out the day in an attempt to help maximize loss capture, not manage risk. There is no guarantee losses will be harvested in any given year. There is no guarantee that process objectives will be met.

The MSCI ACWI ex US Index captures large and mid cap representation across 22 Developed Markets and 24 Emerging Markets countries. With 2,307 constituents, the index covers approximately 85% of the global investable equity opportunity set outside of the US. Alpha: refers to excess returns earned on an investment above the benchmark return.

PGIM Custom Harvest does not provide tax advice. We work with outside accounting firms and tax counsel that provide guidance and updates on relevant tax law, and we have reviewed the tax treatment of our transaction structures with those professional advisors. Based on those reviews, PGIM Custom Harvest is satisfied that our structures support the desired tax results, but each client must consult their own legal and tax advisors regarding the tax treatment of the transactions effected in their account. Such transactions include ETFs. Federal, state and local tax laws are subject to change. PGIM Custom Harvest is not responsible for providing clients updates on any changes in tax laws, rules or statutes. Clients remain fully responsible for their own tax position and client is solely liable for any tax consequences and associated costs resulting from any investment in the Strategy.

The composite includes all discretionary accounts that are managed by PGIM Custom Harvest in accordance with its PGIM Custom Harvest Global Equity Plus Strategy that are not subject to client-imposed restrictions significantly impairing PGIM Custom Harvest’s ability to implement the strategy. Accounts with assets custodied in a non-margin account are included in the composite for periods from and after January 1, 2023, but excluded from the composite for periods prior to that date. The inclusion of non-margin accounts starting January 1, 2023 is consistent with recent investment process changes made by PGIM Custom Harvest and is designed to have PGIM Custom Harvest’s current account base more fully reflected in the composite. A new account is included in composite at beginning of first full month after initial trades have been implemented. A terminated account is removed at end of the last full month it was under PGIM Custom Harvest’s discretion.

The Strategy’s after-tax returns are calculated using actual before-tax returns for client accounts in the Strategy’s composite that have been adjusted to estimate the benefits of using tax losses harvested to offset capital gains (inside or outside of the portfolio) and adding such benefits to portfolio returns. While the calculation is based on the actual transactions that occurred in each client account and an assumed federal tax rate, the adjustments did not occur in each client account. The after-tax return calculations are illustrated using the highest federal marginal income tax rate of 40.8% applicable to  short-term capital gains and a 23.8% long-term capital gains rate. The calculation assumes that dividend income received in each account will be taxed at the assumed income tax rate applied to short-term capital gains.

The after-tax returns are subject to the limitations of the specific calculation methodology applied and the tax rate assumptions made. The after-tax returns shown may not reflect a client’s actual after-tax performance due to differences in the tax rate assumed on page 1 and other circumstances. As examples, clients with lower applicable tax rates, capital loss carryforwards or no capital gains outside the portfolio are likely to experience lower levels of after-tax returns. In addition, estimated tax benefits relating to a tax loss harvesting transaction are added to portfolio returns in the same year as the transaction, even though the tax benefits do not become available until the following tax year. 

PGIM Custom Harvest has approximated after-tax returns for the benchmark by adjusting the Index’s monthly price returns by its dividend yield after applying a 32.3% tax rate, which assumes that half of dividends are taxed at the 23.8% rate applicable to qualified dividends and the other half at the 40.8% rate for ordinary income. Benchmark after-tax returns are provided for informational purposes only and are not intended as a measure of PGIM Custom Harvest’s tax alpha compared to the benchmark. Significant differences between the calculation methodologies for Strategy and benchmark after-tax returns limit comparability between the returns. For example, the benchmark returns do not include the after-tax impact of capital gains, and different rates have been applied to dividend income.

The availability of tax alpha is highly dependent upon the initial date and time of investment as well as market direction and security volatility during the investment period. Tax loss harvesting outcomes may vary greatly for clients who invest on different days, weeks, months and all other time periods. A client’s tax alpha will depend on the client’s individual circumstances, which are outside of PGIM Custom Harvest’s knowledge and control.

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 investment strategies described herein are those of PGIM Custom Harvest. These materials are being provided for illustrative and informational purposes only. The information contained herein is obtained from multiple sources that are believed to be reliable. However, such information has not been verified, and may be different from the information included in documents and materials created by the sponsor firm in whose investment program a client participates. Some sponsor firms may require that these materials are preceded or accompanied by investment profiles or other documents or materials prepared by such sponsor firms, which will be provided upon a client’s request. For additional information, documents and/or materials, please speak to your Financial Advisor.

The investment strategies described herein are those of PGIM Custom Harvest LLC. PGIM Custom Harvest is a registered investment adviser and a Prudential Financial company. 

Investment Products: Are not insured by the FDIC or any other federal government agency, may lose value, and are not a deposit of or guaranteed by any bank or any bank affiliate.