Prudential Annuities has made a new asset allocation portfolio available with its Prudential Premier Retirement variable annuities that offer the Highest Daily Lifetime Income v3.0 benefit.
The addition of the AST TM Legg Mason Diversified Growth Portfolio brings the total number of asset allocation portfolios available to 23, and was designed to appeal to investors seeking growth with a disciplined strategy for downside risk management.
Highlights of the new portfolio include:
• 85% equities and 15% fixed income
• Blends quantitative and fundamental strategies resulting in greater stability and return potential
• Risk-aware focus to help manage downside volatility while providing upside potential
• Diversified across multiple Legg Mason affiliated managers
“Our new asset allocation portfolio was designed to offer investors additional opportunities to achieve returns, while maintaining appropriate levels of risk,” says Timothy Cronin, Chief Investment Officer for Prudential Annuities. “It is through our innovative approach to risk management that we can offer investors access to a broad and complementary range of innovative investment strategies.”
There are also changes to the AST New Discovery and AST Advanced Strategies Asset Allocation Portfolios, highlighting Prudential’s commitment to emerging managers:
• Vision Capital Management will replace Brown Advisory in the Large-Cap Growth sleeve of the AST New Discovery Asset Allocation portfolio. Brown Advisory will remain on the investment platform and will manage a sleeve in the AST Advanced Strategies Portfolio.
• Longfellow Investment Management Co. LLC will replace the current subadvisor of the Core Plus Fixed Income sleeve of the AST New Discovery Asset Allocation Portfolio.
Other notable changes to Prudential Annuities’ single asset class portfolios, also effective today, include:
• AST Boston Partners Large-Cap Value Portfolio will replace AST Jennison Large-Cap Value Portfolio
• AST Small-Cap Growth Opportunities Portfolio will replace AST Federated Aggressive Growth Portfolio, and will be managed by RS Investment Management and Wellington Management.
• Lazard Asset Management LLC will replace Thornburg Investment Management, Inc. in the AST International Value Portfolio.
“Our industry continues to face growing demand from investors who seek solutions that offer income certainty in retirement,” says Bruce Ferris, president, Prudential Annuities Distributors. “Today's announcement allows financial professionals to offer their clients access to a broader range of investments and strategies to help meet their individual financial planning goals, and help ensure they can enjoy a successful retirement."