Prudential Day One Funds Review

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You probably have seen Prudential Day One Funds advertisement from financial magazine or newspaper. This article will review these Prudential target date mutual funds.

Target Date Funds

If you have a 401k account, you might find target date mutual funds as part of the fund selection. These balanced funds are popular among any investors. You can also invest in individual retirement account (IRA), or regular investment account. If you invest in it, the fund will adjust its assets between stocks & bonds. These funds will adjust their assets based on your retirement year target.

Investment Ad:

A Target Date Fund That Understands Your Life Has No Target Date.
Prudential Day One Funds. 
DAY ONE 
Prudential Day One Funds and Prudential Day One IncomeFlex Target Funds are insurance company separate accounts issued by Prudential Retirement Insurance and Annuity Company.
Combined Strength in Asset Management and Retirement
  • A top ten global asset manager
  • Asset manager for 24 of the 25 largest retirement plans – both public and private
  • 5th largest defined contribution, 7th largest defined benefit asset manager
  • 138-year heritage of disciplined risk management, 88-year focus on better retirement outcomes
The real challenge of retirement is not preparing for a specific date to stop working. 
Prudential Day One FundsThe real challenge is longevity – preparing for all the days to come. 
After all, there’s no target date for how long you’ll live. With Americans enjoying longer, healthier lives, one in four people age 65 will see their 96th birthday. One in three babies born today will live to 100. 
Prudential designed our Day One Funds to help people prepare for retirements that could last up to 30 years or more:
  • We modeled Day One Funds on the assumption that investors might well live to age 95.
  • We based our asset allocation strategies on real savings rates and employer contributions for 850,000 actual retirement plan participants.
  • We incorporated our deep understanding of investing behaviors in The Retirement Red Zone, the critical planning years before and after you retire.
  • We developed investment strategies that take advantage of both traditional and non-traditional investments, such as Treasury Inflation Protected Securities, commodities and private real estate.
  • A version of the Day One Funds is available for use with Prudential IncomeFlex Target, our in-plan guaranteed retirement income solution. 
Participants will need retirement income for all the years they have to live. Prudential Day One Funds can help them prepare for every one of them. To learn more, visit Prudential.com/DayOneFunds. 
Prudential – Bring Your Challenges

Mutual Funds Review

According to its website, Prudential claimed that this Day One Funds are designed to help workplace plan participants prepare for retirements that could last up to 30 years or more. The fund is classified in four categories. The first one is 2060-2045 funds, the second is 2040-2025 funds, next is 2020-2010 funds and the last is day one income fund.

Prudential Day One 2015 Fund

This Prudential Day One 2015 fund is classified in the Balanced Lifestage category. It has total net assets of $4.65 million. The fund was incepted in June 2009. It has annual expense ratio of 0.77%. As of June 28, 2013, the name of the Target Milestones Funds was rebranded as the Prudential Day One Funds.

More: Top Mutual Funds

The portfolio composition of this fund is 54% in fixed income, 29% in domestic equity, 9% in non-traditional and 8% in international equity.

Prudential Day One 2060 Fund

This Prudential Day One 2060 fund was formerly known as Target Milestones 2060 Fund. It is in the category of Balanced Lifestage. It was incepted in May 2013. This Prudential fund also has 0.76% annual expense ratio. According to the website, this fund may be suitable for investors who can tolerate a potentially high level of account balance fluctuation.

The top portfolio composition is Equity & Non-traditional (97%). The remaining 3% is invested in Fixed Income.

Prudential Day One Income Fund

The Prudential Day One Income Fund is managed by PRIAC (Prudential Retirement Insurance and Annuity Company). The total net assets are $2.7 million. The annual expense ratio is 0.77%. It was first introduced to public in June 2009.

As of the third quarter of 2013, the portfolio composition is 65% in fixed income, 20% in domestic equity, 9% in non-traditional and 6% in international equity.

Last Word

  • Target date fund is a good choice for passive investors
  • Please avoid any sales load fund. If possible, find index fund.

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