News Column

Prudential Annuities Launches Prudential Premier Investment

April 28, 2014

Latest innovation offers tax advantages combined with growth opportunities, diversification



NEWARK, N.J.--(BUSINESS WIRE)-- Combining the power of tax deferral with investment flexibility, Prudential Annuities, the domestic annuity business of Prudential Financial, Inc. (NYSE:PRU), today announced the launch of Prudential Premier Investment Variable Annuities.

Designed to help investors address the increasing tax pressures on their investments, Prudential Premier Investment offers tax-deferred asset growth potential and tax-free transfers between the portfolios. “An estimated 77 percent of Americans will have paid more taxes in 2013 than they did in the previous tax year1,” according to Bruce Ferris, president of Prudential Annuities Distributors. “Prudential Premier Investment fills a market need by helping investors more efficiently manage their taxes and grow their wealth.”

In addition to tax-deferred asset growth potential, Prudential Premier Investment offers investors the opportunity to create a strategy to help save for the future, better navigate dynamic market cycles, and provide for beneficiaries. Key features include:

  • Tax advantages through the power of tax-deferred growth potential and tax-free transfers between portfolios.
  • Maximum investment flexibility to mix and match using three unconstrained investing approaches: managed, guided and customized.
  • Exclusive investments from leading brand name and boutique managers.
  • Legacy protection with an optional Return of Purchase Payments Death Benefit, available for an additional fee.
  • Lower cost and complexity as compared to traditional VAs with optional living benefits.
  • Innovative “pro growth” fee structure charged partially on premiums.
  • Product flexibility offering B share and fully liquid C share classes.

    “In today’s market environment, strong demand, concern over rising taxes, and innovation have fueled industry growth and enhanced the sustainability of the industry's solutions,” said Ferris. “Prudential Premier Investment represents our latest innovation, and is another example of the range of solutions we are offering Americans seeking retirement income certainty.”

    Prudential Premier Investment offers investors the opportunity to build a fully customized portfolio by providing access to a broad choice of unique, carefully selected investment options from brand-name and boutique managers. The line-up includes individual investment options, as well as custom-built asset allocation portfolios. Clients have access to traditional equity and fixed income options, domestic and global strategies and alternative assets, which provide additional diversification.

    “Prudential Annuities’ investment discipline and approach have become a hallmark of our business,” said Timothy Cronin, Chief Investment Officer for Prudential Annuities. “We have earned a reputation for our careful selection of managers and wide array of portfolios spanning multiple strategies, styles and sectors—balanced with access to more than 100 investment professionals who develop and monitor our exclusive investment platform. Today’s launch reinforces our unwavering commitment to choice, flexibility and oversight.”

    Prudential Financial, Inc. (NYSE: PRU), a financial services leader, 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 and investment management. 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/.

    All references to income certainty and guarantees are backed by the claims-paying ability of the issuing company. If a withdrawal in excess of the guaranteed income amount reduces the account value to zero, no further amount would be payable and the contract terminates.

    Investors should consider the features of the contract and the underlying portfolios' investment objectives, policies, management, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectus, which can be obtained from your financial professional. Please read the prospectus carefully before investing.

    Variable annuities are issued by Pruco Life Insurance Company (in New York, by Pruco Life Insurance Company of New Jersey), Newark, NJ (main office) and distributed by Prudential Annuities Distributors, Inc., Shelton, CT. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Prudential Annuities is a business of Prudential Financial, Inc.

    Annuity contracts contain exclusions, limitations and terms for keeping them in force. Your licensed financial professional can provide you with complete details.

    A variable annuity is a long-term investment designed for retirement purposes. Investment returns and the principal value of an investment will fluctuate so that an investor’s units, when redeemed, may be worth more or less than the original investment. Withdrawals or surrenders may be subject to contingent deferred sales charges.

    Variable annuities offered by Prudential Financial companies are available at a total annual insurance cost of 0.55% to 1.95%, with additional fees related to the professionally managed investment options. Return of Premium Death Benefit is available for an additional annual fee of 0.30%.

    Asset allocation does not ensure a profit or protect against a loss. Diversification does not assure against loss in a declining market.

    The Prudential Premier Investment Variable Annuity offers certain subaccounts that invest in underlying Portfolios that are subject to a predetermined mathematical formula applicable to benefits that are not available with this Annuity. Before you allocate to these subaccounts, you should consider the impact the formula will have on each Portfolio’s risk profile, expenses and performance.

    Please note that if you are investing in this Annuity through a tax-advantaged retirement plan (such as an Individual Retirement Account or 401(k) plan), you will get no additional tax advantage through the Annuity itself. If you are investing through a tax-advantaged plan, you should work with your financial professional and tax adviser to determine whether the features of this Annuity, such as the optional Return of Purchase Payments Death Benefit, the annuitization options and the investment options, make the Annuity an appropriate investment for you.

    Prudential Annuities and its distributors and representatives do not provide tax, accounting, or legal advice. Please consult your own attorney or accountant.

    The optional Return of Purchase Payments Death Benefit may not be available in every state and has certain investment restrictions. Fees charged for the death benefit are in addition to fees and charges associated with the basic annuity.

    Issued on P-OB/IND(5/14), P-OC/IND(5/14), P-RID-ROP(5/14), et al. or state variation thereof.

    0260841-00001-00

    1 Tax Policy Center. January 2013



    Prudential Financial, Inc.

    Lisa M. Bennett, 973-802-2894

    lisa.bennett@prudential.com

    Source: Prudential Financial, Inc.


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