Prudential 2002 Annual Report Download - page 13

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not just from one company, but from the entire investment industry.
The funds employ a rigorous investment management research
process to select and monitor investment managers as sub-advisors.
In 2002, we added to the lineup with the Strategic Partners Mid-Cap
Value Fund, which combines the skills of two premier value
managers, Harris Associates and Mercury Advisors.
Extending the benefits of
discretionary portfolio management
Three years of declining stock prices have made it harder than
ever for investors to make the right financial decisions. In an envi-
ronment where more and more people are looking to delegate the
daily management of their investments to professionals with in-
depth knowledge of the financial markets, discretionary portfolio
management is an increasingly popular service.
At Prudential Financial, we offer a range of such services for
individuals who prefer to have a professional manage a portfolio
on their behalf. Traditionally, products like these were reserved for
very high-net-worth investors. In 2002, we created new products
that opened the door to many more clients.
We introduced Fundamental Choice, an investment program
that offers full-time portfolio management for accounts as little as
$25,000. Combining extensive risk profiling, fundamental equity
research and quantitative analysis, the program helps clients take
a disciplined, risk-managed approach to creating a customized
equity portfolio.
We launched Jennison Multi-Strategy Portfolios. These indi-
vidually managed accounts enable investors to diversify in more
than one asset class or investment style for an unusually low
minimum investment of $100,000.
These new products reinforce our commitment to help clients
grow and protect their wealth through objective advice and disci-
plined planning. Their appeal to both moderate-net-worth and
high-net-worth investors also means they have the potential to be
valuable asset-gathering tools for the company.
Prudential Financial 2002 Annual Report 11
Riding the
real estate wave
Real estate was one of the very few
bright spots in 2002’s struggling
economy. N ational sales volume
was up 3.2 percent for the year,
and home prices reached record
highs— the average home price
was up 7.9 percent year-over-year.
Prudential Real Estate turned
in record numbers of its own that
far surpassed the national averages.
The group, which now numbers over
1,600 independently owned and
operated offices and approximately
44,000 sales professionals, ended
2002 with 13 percent year-over-year
sales volume growth. And its average
home sale price of nearly $237,000
was more than $34,000 higher than
the national average.
Selling larger life insurance policies
Percent of our U.S. life insurance portfolio by face amount
26%
9%
28%
7%
35%
48%
11%
35%
1997
2002
Less than $50,000 to $100,000 to More than
$50,000 $100,000 $250,000 $250,000