Compliance July 11, 2007

SEC Proposes INVESCO Market Timing Distribution

The Securities and Exchange Commission (SEC) has filed a proposed plan to distribute money in a Fair Fund as part of the agency’s market timing case against INVESCO Funds Group, Inc., AIM Advisors, Inc., and AIM Distributors, Inc.
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The Fair Fund is comprised of $325 million in disgorgement and civil penalties paid by INVESCO Funds Group, Inc., plus accumulated interest. Under the Distribution Plan, eligible investors would receive proportionate shares of the Fair Fund to compensate them for market timing during 2001-2003 in mutual funds for which INVESCO Funds Group, Inc served as the investment adviser.

Those who want to comment on the Distribution Plan may submit their comments, in writing, no later than August 6, 2007: to the Office of the Secretary, United States Securities and Exchange Commission, 100 F Street, N.E., Washington, DC 20549-1090; by using the Commission’s Internet comment form (http://www.sec.gov/litigation/admin.shtml); or by sending an e- mail to rule-comments@sec.gov.

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Comments submitted by e-mail or via the commission’s Web site should include Administrative Proceeding File Number 3-11701 on the subject line. Comments received will be publicly available.

The proposed distribution plan is available here.

Products July 11, 2007

Prudential Launches New In-Plan Lifetime Income Option

Through an arrangement with Morningstar Associates, LLC, Prudential Retirement has created an in-plan asset allocation option that provides a guaranteed withdrawal benefit.
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According to a Prudential product announcement, the IncomeFlex withdrawal benefit solution is integrated with the asset-allocation models that Morningstar currently creates for participants who chose Prudential’s GoalMaker program. With the addition of IncomeFlex to a plan, in addition to GoalMaker target-based portfolios, participants will have:

  • A guaranteed withdrawal benefit upon retirement,
  • Upside income potential and downside income protection,
  • Asset control and flexibility, including the ability to cancel at any time without a fee, and
  • An optimal spousal benefit without the need for annuitization.

“The integration of IncomeFlex into our GoalMaker program creates a legitimate lifetime solution,” said Jim Mallozzi, senior vice president, Prudential Retirement, in the announcement. “It offers unbiased asset-allocation modeling during the accumulation and distribution phases of retirement planning, complete with a guaranteed income stream once a participant leaves the workforce.’

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For more information, go to www.prudential.com.

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