New Prudential, Dimensional Funds Partnership Brings Retirement Income To Managed Accounts

Prudential is moving to extend its leadership in the retirement income space through a new three-way strategic partnership.

On Tuesday, the insurance giant revealed plans to collaborate with asset management giant Dimensional Fund Advisors and Fiduciary Exchange, an insurance technology platform that integrates the brokerage, insurance and advisory ecosystems, to offer protected lifetime income strategies within managed accounts.

“Working with Dimensional and FIDx to bring protected lifetime income strategies to managed accounts is a key step in advancing Prudential’s commitment to expanding access to retirement security for more people,” Ann Nanda, head of future growth initiatives at Prudential Retirement Strategies, said in a statement Tuesday.

Prudential is among the top players in the US individual annuity space. According to figures from Limra, it achieved $11.32 billion in total annuity sales during the third quarter, making it the 10th largest seller out of all the providers tracked by Limra. Over the same period, its variable annuity sales of $6.33 billion placed it 5th in the category, while its fixed annuity sales reached $4.99 billion, ranking 15th​.

The collaboration expands Prudential’s existing retirement income offerings, including its MyRock Advisor Variable Annuity, already available to RIAs through FIDx. It also deepens the annuity giant's relationship with Dimensional, which provides the index underlying a RILA suite currently offered by Prudential.

“We are committed to delivering the best possible investment experience to financial professionals and their clients,” said Savina Rizova, co-chief investment officer and global head of research at Dimensional.

Last July, Dimensional expanded its managed accounts business by launching a UMA platform aimed at independent advisors.The partnership will FIDx’s Insurance Overlay marketplace to address the evolving needs of retirement investors and the RIAs who serve them.

Rich Romano, CEO of FIDx, highlighted how his firm's platform helps simplify the way retirement solutions are distributed to the industry.

"Our Insurance Overlay marketplace lets advisors easily add longevity, income and protection directly to a managed account, enabling them to remain focused on helping clients achieve their retirement goals,” he said.

In December, Allianz Life announced a separate partnership with Empower, a top player in the retirement plan space, to incorporate a fixed index annuity offering into Empower's managed accounts platform.