Products January 2, 2013

Pioneer Offers Share Class for DC Plans

Pioneer Investments launched a low-cost share class designed for inclusion in certain qualified defined contribution (DC) retirement plans.
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Pioneer’s Class K shares are designed for DC plans that are precluded from investing in mutual fund shares with Rule 12b-1 fees or sub-transfer agency fees as part of the expense ratio.   

“The retirement plan market is rapidly moving toward lower-cost share classes,” said Joe Kringdon, executive vice president and head of U.S. retail sales and marketing. “This new share class offers no 12b-1 or shareholder servicing fees, and is available specifically for 401(k) and other qualified group retirement plans.”   

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The Pioneer mutual funds that now offer Class K shares, along with their estimated total expense ratios, are:  

  • Pioneer Fundamental Growth Fund (PFGKX) – 0.71%;  
  • Pioneer Oak Ridge Small Cap Growth Fund (ORIKX) – 0.92%;  
  • Pioneer Equity Income Fund (PEQKX) – 0.66%;  
  • Pioneer Strategic Income Fund (STRKX) – 0.62%;  
  • Pioneer Bond Fund (PBFKX) – 0.56%; and  
  • Pioneer Multi-Asset Ultrashort Income Fund (MAUKX) – 0.43%. 

Class K shares are intended for 401(k) and other Employee Retirement Income Security Act (ERISA)-defined contribution plans that trade omnibus with the fund at the plan sponsor level. For qualified plans, there are no minimum purchase requirements. Class K shares also will be available to certain direct institutional investors with an initial investment of at least $5 million.

Products January 2, 2013

Prudential Debuts LIVESTRONG Portfolios

Prudential Retirement added American Century Investments’ line-up of target-date funds to its guaranteed income solution for defined contribution (DC) plans.
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Prudential IncomeFlex Target with LIVESTRONG Portfolios is available immediately. LIVESTRONG Portfolios are diversified, time-based portfolios that automatically adjust as their target goal date approaches—the approximate year investors plan to start withdrawing their money.

The principal value of the investment is not guaranteed at any time, including at the target date. Each target-date portfolio seeks the highest total return consistent with its asset mix. The asset mix and weightings are adjusted annually to be more conservative.

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As the target year approaches, the portfolio generally becomes more conservative by decreasing the investment in stocks, and increasing bonds and money market instruments. By the time each fund reaches its target year, its target asset mix will become fixed and will match that of the LIVESTRONG Income Portfolio.

“Prudential Retirement is pleased to be able to help place more and more American workers on a secure path to and through retirement by increasing the number of target-date fund platforms that can be used to meet their guaranteed lifetime income needs,” said Srinivas Reddy, senior vice president of Prudential Retirement’s institutional income. “These income guarantees combined with the benefits of target-date funds offer investors protection from market downturns and help protect their future retirement income.”

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