Day One IncomeFlex Target Glidepath

Because even relatively modest increases in living expenses can diminish purchasing power in retirement, we believe most participants need to invest with exposure to equity markets. As a result, each Day One IncomeFlex Target Fund adjusts its asset allocation as it approaches, and up until 10 years before, its target date, when the IncomeFlex Target guarantee is activated and asset allocation stabilizes at 60% to equity and nontraditional and 40% to fixed-income investments.

Asset Class Mix:

Prudential Day One IncomeFlex Target Funds Glidepath

Glidepath of years to retirement to equity exposure

Glidepath of years to retirement to equity exposure

Glidepath of years to retirement to equity exposure

97% allocation before 40 years of retirement

97% - Because addressing longevity risk is so important, the glidepath starts with a 97% allocation to domestic and foreign equities, as well as commodities and real estate (non-traditional investments) to help provide potential for growth.

30 years before retirement

As the target date approaches, exposure to equities decreases.

Retirement Red Zone with 60% allocation before 10 years of retirement

60% - Ten years prior to the fund’s target date, we enter The Retirement Red Zone®. The asset allocation stabilizes at 60% to equity and non-traditional and 40% to fixed-income investments.

As shown in the illustration above, each target date fund’s asset allocation follows a glidepath that becomes more conservative as the applicable target date approaches by reducing exposure to equity investments and increasing exposure to fixed-income investments. The glidepath continues to adjust allocations in this manner up until approximately 10 years prior to the target date, at which point the asset allocation of each target date fund will be similar to that of the Day One IncomeFlex Target Balanced Fund, which maintains a static asset allocation.

Each Fund’s underlying asset allocation is reviewed periodically to determine whether the glidepath (or, in the case of the Day One IncomeFlex Target Balanced Fund, the prescribed asset allocation) and underlying funds in which such Fund invests remain suitable to meet the Fund’s investment objective. As a result of this review, the glidepath and/or the allocation of the Fund’s assets among the underlying funds may be modified.

Asset allocation does not assure a profit or protect against a loss in declining markets.

Allocations as of January 2, 2018.

The target date is the approximate date when investors plan to retire and may begin withdrawing their money. The asset allocation of the target date funds will become more conservative until the date which is ten years prior to 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 retirement income.

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.