Prudential Annuities, the domestic annuity business for Prudential Financial, Inc. has added two new asset allocation options.
The new portfolios are the AST New Discovery Asset Allocation Portfolio and AST Schroders Global Tactical portfolio. These changes bring the total number of asset allocation portfolios to 19. These portfolios span four diverse strategies, and can be selected as stand-alone options, or combined at the client's choice.
The AST New Discovery Asset Allocation Portfolio is part of Prudential Annuities' traditional strategy and will focus on seeking total return comprised of both capital appreciation and income. It is a multi-asset class portfolio, and provides exposure to a diversified mix of domestic and international equity securities, along with fixed-income securities. It is managed by seven different, boutique managers, and will also leverage the manpower of the Prudential Investments research team, which will manage the overall asset allocation among the seven managers.
The AST Schroders Global Tactical Portfolio is positioned in the tactical strategy, and combines attributes from a balanced fund and a tactical asset allocation strategy. It has exposure to international equities. It is managed by Schroders Investment Management.
Prudential Annuities also added sub-advisors to two already existing individual investment options: Emerald Advisers, Inc., for the AST Small Cap Growth Portfolio; and Jennison Associates, LLC, for the AST International Growth Portfolio.
Douglas McIntosh, vice president of Investment Management for Prudential Annuities, told Money Management Executive that Prudential aims to continuously expand investment options for financial advisers and their clients.
“We’re committed to bringing some of the lesser tapped, lesser known boutique asset managers into the hands of individuals,” he said.
He said that Prudential focuses on hiring subadvisors who practice “in a manner that we think is sustainable and compelling.”
“By sustainable, we mean do we have enough confidence into the three Ps: people, process and performance,” he said. “Will they continue to do what they’ve been doing in the same manner for a long time?”