Srinivas Reddy, senior vice president of Prudential Retirement’s institutional income

Prudential Retirement adds American Century funds to guaranteed income solution

Prudential Retirement is now offering defined contribution plans its guaranteed income solution with American Century Investments’ line-up of target-date funds.

Prudential IncomeFlex Target with Livestrong Portfolios are available immediately.

“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,” says Srinivas Reddy (pictured), senior vice president of Prudential Retirement’s institutional income. “We are happy to welcome American Century Investments, a leading privately held investment management firm, to an impressive list of fund partners offering income guarantees that already includes T. Rowe Price, Fidelity, JP Morgan and Vanguard. These income guarantees combined with the benefits of target-date funds offer investors protection from market downturns and help protect their future retirement income.”

Livestrong Portfolios are diversified, time-based portfolios that automatically adjust as their target goal date approaches. A portfolio target date is 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. In general, as the target year approaches, the portfolio’s allocation 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.

“We’re delighted to partner with Prudential Retirement to combine our established Livestrong Portfolios with their guaranteed lifetime income product,” says Peter Cieszko, chief client officer, Americans, American Century Investments. “This is a natural evolution of our partnership as a defined contribution investment only provider.”

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