PDF Retirement Goal℠ 2040 Fund First Quarter 2019 A Prudential ...

Retirement Goal 2040 Fund

A Prudential Retirement Separate Account - Target Date Funds

First Quarter 2019 Fund Fact Sheet

Key Facts - Fund

MANAGER:

Prudential Retirement

Insurance and Annuity

Company (PRIAC)

FUND CATEGORY:

Balanced-Target Date

PRIMARY BENCHMARK:

Retirement Goal 2040

Primary Benchmark

SECONDARY BENCHMARK:

Retirement Goal 2040

Secondary Benchmark

NET ASSETS:

$252.4 Million

INCEPTION DATE:

11/30/2002

NET EXPENSE RATIO (Before Contract Charges):

1.11%

OVERALL MORNINGSTAR RATINGTM: OVERALL # OF FUNDS IN

MORNINGSTAR CATEGORY:

194

Overall Morningstar Rating as of quarter ending 03/31/2019. The Morningstar Rating shown is for this expense ratio only and assumes no contract charges are imposed. Other expense ratios may have different performance characteristics. ?2019 Morningstar, Inc. All Rights Reserved.

Morningstar Volatility Rank As of 03/31/2019

INVES TMENT

LOW

MODERATE

CATEGORY

HIGH

In the past, this investment has shown a relatively moderate range of price fluctuations relative to other investments. This investment may experience larger or smaller price declines or price increases depending on market conditions. Some of this risk may be offset by owning other investments with different portfolio make-ups or investment strategies.

Annual Performance

Primary

Fund

Benchmark

2018

-7.62%

-5.51%

2017

16.01%

18.01%

2016

7.42%

8.30%

2015

-0.22%

0.42%

2014

5.16%

7.69%

Secondary Benchmark

-3.21%

17.78%

10.03%

1.37%

12.23%

Multiple assumptions were used in the modeling of the glidepath, applying a disciplined and strategically focused process to construct long-term asset allocations. The principal value of an investment in any Fund is not guaranteed at any time, including at or after the target date. It is possible to lose money investing in securities, including losses near and following retirement. There is also no guarantee that the Funds will provide adequate retirement income. A target date fund should not be selected based solely on age or retirement date, is not a guaranteed investment, and the stated asset allocation may be subject to change.

DESCRIPTION/OBJECTIVE The Retirement Goal Funds (the "Funds") are a family of seven multi-asset class, multi-manager investment portfolios offering a range of distinct risk/return characteristics. This family is based on the "life-cycle" approach to investing - that different bond/stock mixes are appropriate for individuals at different stages of their lives. The Funds are "Fund of funds" that invest in Underlying Funds that are actively managed insurance company separate accounts. Six of the funds are managed to specific target dates, 2010, 2020, 2030, 2040, 2050, and 2060. Because the target date Funds are structured in ten year increments, each Fund is designed to accommodate a retirement or withdrawal date approximately five years before or five years after the stated target date of the Fund. The target date of a fund is the approximate year in which investors plan to retire or begin to withdraw funds. The asset allocations of each target date fund change annually as the fund progresses along a predetermined glidepath. The asset allocation of each target date fund will become more conservative as the target date approaches by lessening equity exposure and increasing fixed income exposure until each fund's asset allocation stabilizes approximately five years after the target date with an asset allocation equal to approximately 75% fixed income, 25% equity. The Funds' asset allocation strategy allows investors to remain in a single Retirement Goal Fund through every life stage. The target date Funds are designed for participants planning to retire in or near the target year. In addition to anticipated retirement date, however, relevant factors for target date Fund selection may include age, risk tolerance, other investments owned, and planned withdrawals. Each Retirement Goal Fund's investment objective is to consistently outperform its custom benchmark over full market cycles. The custom benchmark is designed to evolve over time, in accordance with the changes in the Fund's asset allocations as dictated by the Funds' glidepath.

There is no assurance the objectives will be met.

Performance(%)

As of 03/31/2019

Cumulative Returns

Average Annual Total Returns

Fund Primary Benchmark

Secondary Benchmark

QTD 11.70 10.68

11.25

YTD 11.70 10.68

11.25

1 Year 3.75 5.59

8.61

3 Year 8.65 9.92

11.11

5 Year 5.90 7.28

9.28

10 Year 11.60 12.58

13.86

Since Inception NA ---

---

Morningstar RatingTM

# of Funds in Category

194

156

96

Fund Fees Reflected in Performance. All performance results are net of the highest management for this Fund (currently 1.08%). Fund performance is also net of other Fund operating expenses 0.03% for the prior calendar year. Such Fund operating expenses may reflect the benefit of a commission recapture program. Fee waivers of 0.00% are in place for this Fund. Actual performance shown reflects the imposition of the foregoing expenses and the benefit of any fee waivers or commission recaptures. Performance Risks. Before investing, investors should carefully consider the investment objectives, risks, charges and expenses of this Fund and other plan investment options. The performance quoted represents past performance. The investment value and return will fluctuate so that an investment, when redeemed, may be worth more or less than original cost. Past performance does not guarantee future results. Current performance may be lower or higher than the performance data quoted. For performance data current to the most recent month end, please call 1-877-778-2100. It is possible to lose money investing in securities. The Separate Account. Your retirement plan purchases units of a Separate Account established and made available as an investment option under group variable annuity contracts issued by Prudential Retirement Insurance and Annuity Company ("PRIAC"), Hartford CT. The Separate Account holds the investment securities, and associated voting rights belong to the Separate Account. Pursuant to CFTC Rule 4.5, PRIAC has claimed an exclusion from registration as a commodity pool operator with respect to the Fund. The Funds are not part of the Manager of Managers program. The selection or termination of the Fund on a retirement plan's investment line-up is the sole responsibility of each retirement plan fiduciary As defined by ERISA Section 3(38), PRIAC is the "investment manager" with respect to the Separate Account. Possibility of Contract Charges Your retirement plan may have agreed to contract charges. If so, these would reduce the performance (and possibly the Morningstar ratings) shown above. Any contract charges are included in the expense ratio shown in your statement and in the performance shown in your statement. The Fund fees and contract charges compensate us for the distribution and servicing associated with your plan. Other plan investment options may generate more or less revenue for us than the fees associated with this Fund. If the aggregate revenue from your plan exceeds our associated costs, we earn a profit. Otherwise, we incur a loss. Other plans investing in the Fund may have lower fees, but these are not available to your plan in order to compensate us for distribution and plan servicing. Prudential Retirement Separate Account Fund of Funds Products These Fund of funds are not part of the Manager-ofManagers program, and therefore, PRIAC does not assume any responsibility with respect to the selection, monitoring, or replacement of the underlying investment options. Selection or termination of the Fund on a retirement plan's investment line-up is the sole responsibility of each retirement plan's fiduciary. Miscellaneous. Frequent exchanging of investment options may harm long-term investors. Your plan and/or the Fund may have policies to detect and deter potentially abusive exchanges. The policies may require us to modify or terminate investment exchange privileges. Benchmarks are unmanaged and cannot be invested in directly. See User Guide for benchmark definitions. Primary Benchmark: The custom benchmark for the Fund is a pro rata combination of the benchmarks for the Fund's underlying asset classes, based on the normal asset allocation for each Fund. The benchmark reflects the weighted average of the Fund's U.S. stock/international stock/bond/cash allocation, as represented by the Russell 3000 Index, the MSCI EAFE Index, the Bloomberg Barclays U.S. Aggregate Bond Index and the Citigroup 3-Month T-Bill Index, respectively. Because the asset allocation of each Fund changes over time, the custom benchmark allocations also change over time. MSCI has not approved, reviewed or produced this report, makes no express or implied warranties or representations and is not liable whatsoever for any data in the report. You may not redistribute the MSCI data or use it as a basis for other indices or investment products. Certain information contained in this product or report is derived by PGIM, Inc. in part from MSCI's EAFE, Emerging MarketsTM, Europe ex U.K., Japan Net Dividend, Pacific Ex Japan Net Dividend and/or United Kingdom Net Dividend Index (the "Index Data"). However, MSCI has not reviewed this product or report, and MSCI does not endorse or express any opinion regarding this product or report or any analysis or other information contained herein or the author or source of any such information or analysis. Neither MSCI nor any third party involved in or related to the computing or compiling of the Index Data makes any express or implied warranties, representations or guarantees concerning the Index Data or any information or data derived there from, and in no event shall MSCI or any third party have any liability for any direct, indirect, special, punitive, consequential or any other damages (including lost profits) relating to any use of this information. Any use of the Index Data requires a direct license from MSCI. None of the Index Data is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Secondary Benchmark: The custom benchmark for the Fund is a pro rata combination of the benchmarks for the Fund's underlying asset classes, based on the normal asset allocation for each Fund. The benchmark reflects the weighted average of the Fund's U.S. stock/international stock/bond/cash allocation, as represented by the S&P 500 Index, the Bloomberg Barclays U.S. Aggregate Bond Index and the Citigroup 3-Month T-Bill Index, respectively. Because the asset allocation of each Fund changes over time, the custom benchmark allocations also change over time.

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Retirement Goal 2040 Fund

A Prudential Retirement Separate Account - Target Date Funds

First Quarter 2019 Fund Fact Sheet

Asset Class Mix

As of 03/31/2019

Glidepath and asset allocations are as of the calendar quarter referenced above and based on a retirement age of 65. The asset allocation changes over time. PRIAC may change the Glidepath, asset allocations and Underlying Funds.

GLIDEPATH

Retirement Goal 2040 Target Retirement Dates: 2036 - 2045

77% Equity/23% Fixed Income

DOMESTIC EQUITY 58% Large Cap Blend / AJO Fund 8% Large Cap Growth / American Century Fund 11% Large Cap Value Fund (sub-advised by Wellington Management) 14% Mid Cap Growth / Artisan Partners Fund 7% Mid Cap Value / Cooke & Bieler Fund 4% Small Cap Growth II Fund (managed by Wellington) 7% Small Cap Value / Ceredex Fund 7% FIXED INCOME 23% Core Bond Enhanced Index / PGIM Fund 4% High Grade Bond / GSAM Fund 19%

INTERNATIONAL EQUITY 19% International Blend / AQR Fund 10% International Growth / Artisan Partners Fund 3% International Value / LSV Asset Management Fund 6%

There is no assurance the objectives of the underlying separate accounts shown above will be met. All investing involves risk and there is no guarantee the Fund's objective will be achieved. An investment in a Retirement Goal Fund is subject to the risks of the investments of each underlying fund, which include: With respect to investment in equities, stock prices are more volatile than bond prices over the long term, and the value of such investment will fluctuate with changes in market conditions. Small- and mid-cap investments may be more volatile than large-cap investments, and investments in non-U.S. markets may be more volatile than domestic investments due to currency fluctuation and political uncertainty. Investments in emerging markets are subject to greater volatility and price declines. Fixed-income investments may fluctuate based on interest rate changes and are subject to the risk that the company may not be able to make timely payments of principal and interest. For more information, go to or call toll-free 1-877-778-2100. ? 2019 Prudential Financial, Inc. and its related entities. Prudential, the Prudential logo, the Rock symbol and Bring Your Challenges are service marks of Prudential Financial, Inc., and its related entities, registered in many jurisdictions worldwide.

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