Prudential Retirement adds guarantees to J.P. Morgan SmartRetirement Target Date Strategies and Fidelity VIP Freedom Funds

Published on Thursday, 02 February 2012 10:40 Written by TradersHuddle Staff

NEWARK, N.J.-( Business Wire )-

Prudential Retirement is now offering J.P. Morgan SmartRetirement Target Date Strategies and Fidelity VIP (Variable Insurance Product) Freedom Funds in its line-up of target-date funds with a guaranteed lifetime income component. Prudential Retirement is a business unit of Prudential Financial, Inc. (NYSE: PRU).

“These income guarantees combined with the benefits of target-date funds offer investors protection from market downturns and help protect their future retirement income,” said Srinivas Reddy, senior vice president of Prudential Retirement’s Institutional Income. “We are thrilled to add J.P. Morgan SmartRetirement Target Date Strategies and Fidelity VIP Freedom Funds to an impressive roster of target-date funds that already includes Vanguard and T. Rowe Price.”

The target-date funds in the J.P. Morgan Asset Management and Fidelity Investment line-ups adjust their asset mix as investors’ approach their target retirement date. Ten years before the target date of the selected fund, the guaranteed minimum withdrawal benefit (GMWB) is automatically activated, guaranteeing a minimum withdrawal amount for the participant’s entire life.

“Now is the time to change investment plan design to increase the probability of better outcomes for participants,” said Michael Falcon, Head of Retirement, J.P. Morgan Asset Management. “We believe our partnership between Prudential Retirement and J.P. Morgan SmartRetirement strategies will help move the industry in the right direction in addressing participants’ critical need for lifetime income.”

“We are delighted that Prudential has selected the Fidelity VIP Freedom Funds for its program,” said Scott Couto, CFA, president, Fidelity Financial Advisor Solutions. “The quality of our fund family provides a strong foundation for Prudential’s guarantees.”

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 3.6 million participants and annuitants. Prudential Retirement has $214.7 billion in retirement account values as of September 30, 2011.

Prudential Financial, Inc. (NYSE: PRU), a financial services leader with approximately $871 billion of assets under management as of September 30, 2011, 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, investment management, and real estate services. 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 http://www.news.prudential.com/.

*Target date funds do not guarantee principal, including at the target date.

The Commingled Pension Trust Fund SmartRetirement of JPMorgan Chase Bank N.A. is a collective trust fund established and maintained by JPMorgan Chase Bank, N.A. under a declaration of trust. The fund is not required to file a prospectus or registration statement with the SEC, and accordingly, neither is available. The fund is available only to certain qualified retirement plans and governmental plans and is not offered to the general public. Units of the fund are not bank deposits and are not insured or guaranteed by any bank, government entity, the FDIC or any other type of deposit insurance. You should carefully consider the investment objectives, risk, charges, and expenses of the fund before investing.

The JPMorgan SmartRetirement strategies referred to above are offered as Commingled Pension Trust Fund SmartRetirement of JPMorgan Chase Bank, N.A.

J.P. Morgan Asset Management is the marketing name for the asset management business of JPMorgan Chase & Co. Those businesses include, but are not limited to, J.P. Morgan Investment Management Inc., Security Capital Research & Management Incorporated and J.P. Morgan Alternative Asset Management, Inc.

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.

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. The principal value of Target date funds is not guaranteed at any time; including the target date. 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.

For this and other information, participants should access the participant website or call 877-778- 2100 for a copy of the Prudential IncomeFlex Target Important Considerations before investing.

Prudential, the Prudential logo and the Rock symbol are service marks of Prudential Financial, Inc. and its related entities, registered in many jurisdictions worldwide.

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Prudential Financial, Inc.Josh Stoffregen973-802-3996 office973-204-2450 mobilejosh.stoffregen@prudential.comorDawn Kelly973-802-7134 office201-406-7248 This e-mail address is being protected from spambots. You need JavaScript enabled to view it.