Prudential adds Russell Investments’ institutional target date portfolios to its in-plan guaranteed income solution

Benefits of Prudential IncomeFlex® now available with Russell LifePoints® Institutional Target Date Funds

Business Wire


Prudential Retirement is now offering defined contribution plans its guaranteed income solution with Russell Investments’ line-up of institutional target-date portfolios. Prudential IncomeFlex Target® Russell LifePoints® Institutional Target Date Funds are available immediately. IncomeFlex Target is offered by Prudential Retirement Insurance and Annuity Company. Prudential Retirement is a business unit of Prudential Financial, Inc. (PRU).

“Prudential is pleased to be able to help place more and more American workers on a secure path to and through retirement by increasing their choice of target date fund families that can be used to meet their guaranteed lifetime income needs,” said Srinivas Reddy, head of Prudential Retirement’s Institutional Income and Capital Markets. “We are happy to welcome Russell Investments’ LifePoints Institutional Target Date Funds to the list of target date funds available with IncomeFlex. Our growing platform features Prudential Day One IncomeFlex Target® Funds as well as target date funds from American Century, Fidelity, J.P. Morgan, T. Rowe Price and Vanguard.”

Prudential created IncomeFlex Target specifically for defined contribution plans. This innovative solution provides participants with guaranteed lifetime income, sustained potential for growth, downside protection for retirement income and complete access to their market value.1 The market leader in this emerging space, IncomeFlex is currently offered in more than 7,000 retirement plans.2

The Russell LifePoints Institutional Target Date Funds invest across a broad range of asset classes: equity (U.S., non-U.S. and global), fixed income (U.S. and non-U.S.), and real assets (global listed infrastructure, global listed real estate and commodities) and use a blend of active and passive management. The portion that is actively managed is invested with a diversified mix of third-party advisors selected by Russell’s industry-recognized manager research process, and focuses on areas where Russell’s capital market insights indicate that there is the highest potential for active manager outperformance, including global equities, small cap equities and real assets. The asset allocation of these funds automatically becomes more conservative as the target goal approaches by lessening equity exposure and increasing exposure in fixed income type investments. Principal value is not guaranteed, including at the target date.

“We’re excited to partner with Prudential Retirement to combine our established multi-asset, multi-manager LifePoints Institutional Target Date Funds with their guaranteed lifetime income solution,” said Jeff Eng, director, retirement income solutions, at Russell Investments. “Interest in guaranteed income solutions is increasing among small- to mid-sized defined contribution plans, and this represents a significant opportunity to bring together the benefits of open architecture target date funds with a guaranteed income solution for the defined contribution plan market.”

Russell Investments is a global asset manager and one of only a few firms that offers actively managed multi-asset portfolios and services that include advice, investments and implementation. Russell stands with institutional investors, financial advisors and individuals working with advisors—using the firm’s core capabilities that extend across capital market insights, manager research, portfolio construction, portfolio implementation and indexes to help each achieve their desired investment outcomes. Headquartered in Seattle, Washington, Russell Investments has been building and managing multi-manager, multi-asset class portfolios for more than 30 years and has more than $256 billion* in assets under management (as of 12/31/2013).

Prudential Retirement delivers retirement plan solutions for public, private, and non-profit organizations. Services include state-of-the-art record keeping, administrative services, investment management, comprehensive employee investment education and communications, and trustee services. With over 85 years of retirement experience, Prudential Retirement helps meet the needs of over 3.8 million participants and annuitants. Prudential Retirement has $322.9 billion in retirement account values as of December 31, 2013. Retirement products and services are provided by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, or its affiliates.

Prudential Financial, Inc. (PRU), a financial services leader, has operations in the United States, Asia, Europe, and Latin America. Prudential’s diverse and talented employees are committed to helping individual and institutional customers grow and protect their wealth through a variety of products and services, including life insurance, annuities, retirement-related services, mutual funds and investment management. In the U.S., Prudential’s iconic Rock symbol has stood for strength, stability, expertise and innovation for more than a century. For more information, please visit

1 Guarantees are based on the claims-paying ability of the insurance company and are subject to certain imitations, terms, and conditions. Withdrawals or transfers (other than transfers between Active IncomeFlex Target Funds) proportionately reduce guaranteed values prior to locking in. After lock-in withdrawals in excess of the lifetime annual withdrawal amount will reduce future guaranteed withdrawals proportionately or eliminate them entirely.

2 Source: 2Q/2011 Book of Business, “State of Retirement,” Prudential Retirement.

Prudential IncomeFlex Target® Funds are separate accounts under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT. PRIAC does not guarantee the investment performance or return on contributions to those separate accounts. Participants should consider the objectives, risks, charges, and expenses of the funds and guarantee features before purchasing this product. Like all variable investments, these funds may lose value. Availability and terms may vary by jurisdiction, subject to regulatory approvals. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force. Contract form # GA-2020-TGWB4- 0805 or state variation.

*includes more than $74 billion of derivative overlay assets under management not included prior to June 30, 2013



Monique Reuben
(973) 802-3745


View Comments (0)