Prudential 2011 Annual Report Download - page 45

Assets Under Management
The following tables set forth assets under management by asset class and source as of the dates indicated and net additions, excluding
money market activity, by source for the periods indicated. In managing our business, we analyze assets under management, which do not
correspond to U.S. GAAP assets, because the principal source of revenues are fees based on assets under management.
December 31,
2011 2010 2009
(in billions)
Assets Under Management (at fair market value):
Institutional customers:
Equity ........................................................................................ $ 44.2 $ 51.3 $ 47.9
Fixed income ................................................................................... 197.2 160.4 120.3
Real estate ..................................................................................... 27.7 23.6 20.2
Institutional customers(1)(2) ................................................................... 269.1 235.3 188.4
Retail customers:
Equity ........................................................................................ 70.8 72.7 58.2
Fixed income ................................................................................... 45.7 27.0 24.6
Real estate ..................................................................................... 1.4 1.5 1.6
Retail customers(3) .......................................................................... 117.9 101.2 84.4
General account:
Equity ........................................................................................ 4.2 4.1 3.7
Fixed income ................................................................................... 226.6 195.8 179.3
Real estate ..................................................................................... 1.3 0.9 1.0
General account ............................................................................ 232.1 200.8 184.0
Total assets under management ............................................................................ $619.1 $537.3 $456.8
Year ended December 31,
2011 2010 2009
(in billions)
Net additions, excluding money market activity:
Third party:
Institutional customers(4) ....................................................................... $16.7 $28.6 $13.0
Retail customers ............................................................................... 3.5 6.4 6.1
Affiliated:
Institutional customers .......................................................................... (2.8) (1.5) (0.6)
Retail customers ............................................................................... 14.4 1.9 (1.4)
General account ............................................................................... 14.3 0.5 (5.1)
Total net additions, excluding money market activity .......................................................... $46.1 $35.9 $12.0
(1) Consists of third party institutional assets and group insurance contracts.
(2) As of December 31, 2011, 2010, and 2009, includes $29.7 billion, $17.7 billion, and $4.0 billion, respectively, of assets under management relatedto
investment-only stable value products.
(3) Consists of: (a) individual mutual funds and both variable annuities and variable life insurance assets in our separate accounts; (b) funds invested in
proprietary mutual funds through our defined contribution plan products; and (c) third-party sub-advisory relationships. Fixed annuities and the fixed-
rate accounts of both variable annuities and variable life insurance are included in the general account.
(4) As of December 31, 2011, 2010, and 2009, includes $10.0 billion, $10.2 billion, and $0.7 billion, respectively, of net additions related to investment-
only stable value products.
2011 to 2010 Annual Comparison. Assets under management were $619.1 billion at December 31, 2011, an increase of $81.8 billion
from December 31, 2010. Institutional assets under management increased $33.8 billion from 2010 to 2011 driven by market appreciation
of $19.7 billion, as well as net additions of $16.7 billion from third party clients, primarily from positive flows into fixed income accounts,
including $10.0 billion of net additions associated with investment-only stable value products. Retail assets under management increased
$16.7 billion from 2010 to 2011 primarily from a net increase in affiliated assets under management of $14.1 billion, primarily from
variable annuity assets rebalancing into a fixed income fund, as well as net additions of $3.5 billion from third party clients. General
account assets increased $31.3 billion primarily driven by $15.2 billion in net additions from the acquisition of the Star and Edison
Businesses and fixed income market appreciation of $17.2 billion.
2010 to 2009 Annual Comparison. Assets under management were $537.3 billion at December 31, 2010, an increase of $80.5 billion
from December 31, 2009. Institutional assets under management increased $46.9 billion from 2009 to 2010 driven by market appreciation
of $20.6 billion, as well as net additions of $28.6 billion from third party clients, primarily from positive flows into fixed income accounts,
including $10.2 billion of net additions associated with investment-only stable value products. Retail assets under management increased
$16.8 billion from 2009 to 2010 driven primarily by market appreciation of $10.9 billion, as well as third-party net additions of $6.4
billion, primarily from positive net flows into equity accounts from existing clients. General account assets increased $16.8 billion driven
by market appreciation.
Prudential Financial, Inc. 2011 Annual Report 43