PGIM cuts fees on target-date funds

PGIM, Prudential Financial’s investment management unit, said Tuesday that it’s lowering the fees on its target-date funds and collective investment trusts.

The target-date series, the Prudential Day One Funds, has been renamed the PGIM Target Date Funds, and the funds’ net expense ratio will be cut to 0.25% from 0.40%.

The expense ratio on the institutional share class of PGIM’s collective investment trusts will drop to 0.19% from 0.34%.

PGIM also announced that it will adjust the funds’ underlying investments by replacing some actively managed equity strategies with passively managed strategies. The glide path and investment objective of the target-date series won’t change, the fund company said.

[More: 2022 was rough year for near-retirees in target-date funds]

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