The Markets April 25, 2007

Pru Joins SRI Movement with New Funds

Prudential Retirement has introduced three new institutional sub-advised funds that will be managed in a manner consistent with socially, ethically and morally responsible investing.
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According to a news release, the three funds – covering the Large Cap Value, Large Cap Growth and Fixed Income asset classes – will be run by existing sub-adviser partners within Prudential Retirement’s Manager-of-Managers program, which evaluates investment options based on nominal and risk-adjusted returns; downside risk; active management expertise; style consistency; and the overall reputation and capabilities of the investment-management firm.
The new funds will be screened to ensure they only invest in companies that avoid business practices that may be viewed as detrimental to society or in violation of religious teachings, according to the announcement. The funds will also be encouraged, consistent with their investment objectives, to invest in firms that respect human rights; demonstrate a commitment to the communities in which they operate; and exhibit leadership in the areas of diversity, environmental stewardship and corporate governance.
The three new funds and their sub-advisers are:
  • Morally Responsible Large Cap Value, Aronson + Johnson + Ortiz.
  • Morally Responsible Large Cap Growth, Turner Investment Partners,
  • Morally Responsible Core Plus Bond, PIMCO.
For more information, contact Ric Filippelli, director, Investment Products, at Prudential Retirement, at (860) 534.8443.
The Markets April 25, 2007

State Street’s Target Date Funds Re-allocated

In order to better generate retirement income for investors, the investment management arm of State Street Global Advisors has changed the asset allocations of its target date fund strategies.
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The Boston-based asset manager announced that the new asset class adjustments for its target date funds include:

  • Greater international exposure to its target date portfolios,
  • Treasury Inflation Protected Securities, credit bonds and stable value investments; and
  • An adjusted asset-allocation glide path to have a modest increase in the ending equity allocation in retirement.

“We regularly conduct reviews of our strategies, but these changes together address larger secular changes in the marketplace, most important of which are longer life expectancies and a changing retirement landscape particularly the transition to retirement and the early retirement years,” Gary Conway, vice president of the business development team at State Street, said, in a news release. “We believe the adjustments to our Target Retirement strategies successfully address these and other market changes.”

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