Day One Funds IncomeFlex Target Glidepath

Engineered for In-Plan Guaranteed Income

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.

Prudential Day One IncomeFlex Target Funds Glidepath

An area chart shows an X axis labeled 'Years to retirement' and Y axis labeled 'Equity and non-traditional exposure percentage'. A sloping downward line begins at 97% on the Y axis and spans across -40 years, -30 years, -20 years, and -10 years. Once the line reaches the -10 year value on the X axis, a circle labeled '60%' denotes the Y axis value, which is the equity and non-traditional exposure percentage at 10 years prior to the retirement target date. The sloping downward line shows that as the target date approaches, equity exposure decreases. At 10 years prior to the fund's target date, we enter the Preservation Stage. 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 1, 2019.

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.

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 about managing or investing your retirement savings. Clients seeking information regarding their particular investment needs should contact a financial professional.

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 as the target date approaches and for 10 years after 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.

The Prudential Day One® target-date funds may be offered as: (i) insurance company separate accounts available under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company (PRIAC), Hartford, CT, a Prudential Financial company, and (ii) registered mutual funds offered through Prudential Investment Management Services LLC (PIMS), Newark, NJ, a Prudential Financial company. PRIAC is solely responsible for its own contractual obligations and financial condition.

The Prudential Day One® IncomeFlex Target® Funds were designed for use with Prudential IncomeFlex Target, an in-plan guaranteed retirement income product, and are available as insurance company 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. PRIAC is solely responsible for its financial condition and contractual obligations. Availability and terms may vary by jurisdiction, subject to regulatory approvals. Guarantees are based on claims-paying ability of the insurance company and are subject to certain limitations, terms and conditions. Annuity contracts contain exclusions, limitations, reductions of benefits and terms for keeping them in force.

Contract form #GA-2020-TGWB4-0805.

For more information, participants should access the participant service center or call 1-877-778-2100 for a copy of the Prudential IncomeFlex Target® Important Considerations before investing. PRIAC is a Prudential Financial company.

Please note that the Prudential Day One® IncomeFlex Target® Date Funds follow a different glidepath than the Day One Funds.

The Day One Funds, as insurance company separate accounts, are investment vehicles available only to qualified retirement plans, such as 401(k) plans and government plans, and their participants. Unlike mutual funds, the Day One Funds, as insurance company separate accounts, are exempt from Securities and Exchange Commission registration under both the Securities Act of 1933 and the Investment Company Act of 1940, but are subject to oversight by insurance regulators. Therefore, investors are generally not entitled to the protections of the federal securities laws.

FOR MUTUAL FUNDS: CONSIDER A FUND’S INVESTMENT OBJECTIVES, RISKS, CHARGES AND EXPENSES CAREFULLY BEFORE INVESTING. THE PROSPECTUS AND SUMMARY PROSPECTUS CONTAIN THIS AND OTHER INFORMATION ABOUT THE FUND. CONTACT YOUR FINANCIAL PROFESSIONAL OR CALL (877) 275-9786 FOR A PROSPECTUS AND SUMMARY PROSPECTUS. READ THEM CAREFULLY BEFORE INVESTING.

1019477
1019477-00001-00
03/2019
Prudential logo