What is the Prudential Guaranteed Income Fund?

The Prudential Guaranteed Income Fund is a stable value fund, which means it aims to provide capital preservation, liquidity, and a steady rate of return, rather than seeking capital appreciation.

The fund is a group annuity product issued by Prudential Retirement Insurance and Annuity Company (PRIAC), which means the amounts contributed are deposited into PRIAC's general account.

The fund offers a guaranteed income stream in retirement, with payment obligations and any guarantees specified in the group annuity contract being supported by the full faith and credit of PRIAC.

In 2022, Prudential Retirement Insurance and Annuity Company was renamed Empower Annuity Insurance Company, but the Prudential Guaranteed Income Fund continues to be issued by the new entity.

The Prudential Guaranteed Income Fund is listed on various financial platforms, such as Markets Insider, where investors can access its performance charts and key data.

The fund is also available through retirement services providers like BPAS, where it is known as the Prudential Guaranteed Fund (PGF).

The guaranteed interest rate for the Prudential Guaranteed Income Fund is announced in advance and is guaranteed for a six-month period.

The fund's objective is to provide a competitive rate of return, with the principal and accumulated interest being fully guaranteed by Prudential Retirement Insurance and Annuity Company.

The Prudential Guaranteed Income Fund invests in a broadly diversified fixed-income portfolio, which helps to mitigate market volatility and preserve capital.

Unlike some other stable value funds, the Prudential Guaranteed Income Fund does not invest in derivatives or engage in securities lending activities, which can introduce additional risks.

The fund's performance is not directly tied to the performance of the overall stock market, making it a potentially attractive option for investors seeking a more stable and predictable investment.

The Prudential Guaranteed Income Fund is part of the broader range of PGIM funds offered by Prudential, providing investors with access to a variety of investment options within the Prudential portfolio.