Consumer Fund Analytics

Transcription

1 Financial Professional Guide Consumer Fund Analytics Customized Portfolio Analysis For Your Clients IFS-A Ed. 09/2008

2 Making The Right Choice. Asset allocation is perhaps the most important, yet difficult decision when it comes to choosing investment options. Prudential Annuities SM can help. Our investment platform provides you with options that are as simple or sophisticated as you want them to be. We provide four diverse asset allocation strategies, including alternatives, in addition to over 100 individual subaccounts. You have the flexibility to combine our asset allocation portfolios to help lower volatility and increase potential return. Consumer Fund Analytics (CFA) is a portfolio analysis tool that evaluates different investment strategies available within our annuity products. You can create a customized portfolio analysis profile for your client to ensure the selected investment options match up to their investment goals. This brochure walks you through the different features available with CFA, which are highlighted below, and how to use them. n Individual and combined performance of selected investment options and index benchmark comparisons n Morningstar TM quartile rankings and star ratings 1 n Risk/Return analysis of individual and combined portfolios n Asset allocation compositions of equity style and fixed income positions n Top 20 holdings, equity sector and regional exposure analysis n Individual portfolio statistics To run a customized CFA illustration for your client or for any questions on our investment choices, please contact our National Sales Desk at May not be available with all products.

3 annuity features and benefits Inception date: Based on either the longest common start date or selected start date. Performance of the selected portfolio based on the underlying investment options. Choose the comparable index based upon investment objectives. Compare combined portfolio performance to your selected benchmark index performance. Past performance does not guarantee future results. Please note: Although the subaccounts and initial allocation depicted in this historical illustration may represent the holding within an asset allocation model, the holdings may not represent the current allocation of that particular model. Our asset allocation models are actively managed, as such, the holdings are subject to change. Additionally, the portfolio shown is not intended to represent the performance of any asset allocation model, which would be lower due to the additional fees associated with these models. For our most recent standardized and non-standardized sub-account performance please call our National Sales Desk at

4 Optional living benefits Based on the ranking of the subaccounts total return relative to other subaccounts in its category. 1st Quartile Ranking = top 25% 2nd Quartile Ranking = 26% to 50% 3rd Quartile Ranking = 51% to 75% 4th Quartile Ranking = 76% to 100% Morningstar Star Ratings are based on a subaccount s monthly performance which places more emphasis on downward variations and rewarding consistent performance. Star ratings based on subaccounts in the same category. HHHHH - top 10% HHHH - next 22.5% HHH - next 35% HH - next 22.5% H - bottom 10% Morningstar Ratings are proprietary and do not rank portfolios with less than three years history. In addition, Morningstar rating metrics are not predictive measures and do not constitute a buy/sell recommendation. May not be available with all products. 2

5 annuity features and benefits This chart depicts the risk and the return for the selected individual subaccounts, and the combined portfolio. Risk is measured by standard deviation, a measure indicating the range of returns. A higher standard deviation indicates the range of returns may be wider, which implies greater volatility, while a lower standard deviation indicates that the range of returns may be narrower, which implies less volatility. The returns shown are average annual non-standardized returns. The standard deviation and return depicted are since 10/31/99. Mix and match any of our investment choices to build the optimal portfolio for your client. Then view the historical risk and return of the combined portfolio plotted on the efficient frontier. Please note that there are additional types of risks that may apply to certain investment options such as credit, interest rate, currency fluctuations, economic, political instability and volatility. 3

6 Optional living benefits This classic pie chart shows the various asset classes that comprise the selected portfolio. Gain a detailed breakdown of the selected portfolio including the percentages in each asset type and equity and fixed income compositions. The composition of the selected subaccounts represents the apportioning of investment assets among stocks, bonds, and cash. The equity and fixed income composition breakdown represent 100% of their respective asset allocation. Portfolio composition is subject to change. 4

7 The top 20 holdings can help point out household company names that your client may be familiar with. Use these sections to determine if the constructed portfolio is overweight in any sector or region. Holding of the subaccounts are subject to change and may not be representative of the current holdings. The Top 20 Holdings are the 20 largest aggregated holdings of the selected subaccounts as of the end of the stated period. The performance figures for these holdings do not reflect the performance of the selected subaccounts. Holdings are not recommendations to buy or sell any security. Different sectors represent different types of issuers, which may be impacted by changing economic conditions. 5

8 one corporate drive shelton, connecticut This brochure does not constitute investment advice. Asset allocation does not ensure a profit or protect against losses. No assurance can be given that a portfolio s objectives will be achieved. Non-Standardized Returns- Non standardized returns are net of all underlying charges but do not reflect deduction of the annual maintenance fee and the contingent deferred sales charges, except where noted. Standardized Returns- Standardized returns, in accordance with SEC rules, are calculated from inception of the subaccount and for the application periods assuming a $1,000 investment made at the beginning of the application period. Standardized returns reflect deduction of all underlying subaccount fees and charges. Variable annuities are appropriate for long-term investing and designed for retirement purposes. Investment return and principal value of an investment will fluctuate so that an investor s unit values, when redeemed, may be worth more or less than their original cost. Withdrawals or surrenders may be subject to contingent deferred sales charge (CDSC). Withdrawals and distributions of taxable amounts are subject to ordinary income tax and, if made prior to age 59 ½, may be subject to an additional 10% federal income tax penalty. Withdrawals, for tax purposes, are deemed to be gains out first. Withdrawals can reduce the living benefit, death benefit and account value. Investors should consider the contract and the underlying portfolios investment objectives, risks, charges and expenses carefully before investing. This and other important information is contained in the prospectuses, which can be obtained by contacting the National Sales Desk. Your clients should read the prospectuses 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, or by Prudential Annuities Life Assurance Corporation, Shelton, CT. Prudential Annuities Distributors, Inc., Shelton, CT, distributes all. All are Prudential Financial companies and each is solely responsible for its own financial condition and contractual obligations. Wachovia Corporation is the majority owner and Prudential Financial, indirectly through subsidiaries, is a minority owner of Wachovia Securities, LLC. Prudential Annuities is a business division of Prudential Financial, Inc. Reference to Prudential Annuities as the Highest Daily Company is for marketing purposes only, and does not mean that Prudential Annuities is a corporation or any other legal entity organized under State or Federal law. Prudential, Prudential Financial, the Rock logo and the Rock Prudential logo are registered service marks of The Prudential Insurance Company of America and its affiliates. To run a customized CFA illustration for your client or for any questions on our investment choices, please contact our National Sales Desk at ANNUITIES: NOT FDIC OR GOVERNMENT AGENCY INSURED MAY LOSE VALUE NOT BANK OR CREDIT UNION GUARANTEED WO # IFS-A ORD Ed. 09/2008