Prudential's (PRU) Asset Management Arm Unveils New Buffer ETFs

Core Insights - Prudential Financial Inc.'s asset management arm, PGIM, has launched two new buffer ETF series aimed at providing limited downside risk to investors during market uncertainty [1][2] - The introduction of these ETFs is expected to enhance PGIM's asset management fees and contribute to growth in assets under management [2] - PGIM's investment strategies have shown strong performance, with over 80% of its assets under management outperforming their benchmarks over the past five and ten years [2] Group 1: Product Launch and Features - PGIM has launched the PGIM U.S. Large-Cap Buffer 12 ETF and PGIM U.S. Large-Cap Buffer 20 ETF, which offer exposure to an ETF tracking the S&P 500 Index with embedded buffer options of 12% and 20% [1][3] - These buffer ETFs limit upside potential to a predetermined level while providing downside protection against the first 12% or 20% of losses over one year, making them attractive for investors seeking less volatility [3] Group 2: Financial Outlook and Performance - The asset management fees are expected to grow due to an anticipated 2.2% year-over-year increase in assets under management and administration in 2023 [2] - PGIM's investment strategies have yielded positive results, with 83% of its assets exceeding benchmarks in the one-year period [2] - The uneven global economic conditions are expected to drive demand for products that offer downside protection as the market approaches 2024 [2] Group 3: Market Performance - Prudential's shares have increased by 14.7% over the past three months, outperforming the industry growth of 12.3% [4]