Note to Financial Professionals: This letter is for use without a prospectus. Reproduce this letter on your appropriate letterhead and send it to clients. The content below has been approved by compliance and cannot be changed.
(insert date)
Dear (insert client’s name),
These are difficult times for equity investors. The protracted market downturn, which has been exacerbated by corporate accountability issues, may have caused you to doubt the efficacy of equities and your Target program. The Target program is still a powerful tool that can help you reach your long-term goals.
Past investment experience is not necessarily predictive of future results. There are few guarantees when it comes to investing. However, as your financial professional, I believe that the more information I can provide you, the better. You can then place events in the proper context and make informed investment decisions.
Today the broad market outlook remains uncertain—even the financial pundits can’t agree where the major indexes will finish the year. Yet past experience tells us that patience can pay off. Historically, those who retained a long-term perspective, stayed the course, and remained invested through periods of market volatility stood a greater opportunity of realizing additional gains when stock prices rose than those who abandoned their plans.
This strategy may work for you now because Target is a structured long-term investment program. I believe current equity prices present a buying opportunity, as investors who cannot withstand volatility leave the market. That’s why it’s important for you to consider investing regularly in your Target account. Doing so will allow you to purchase more shares at lower cost, which may leave you favorably positioned for the future.
Your best bulwark during times of uncertainty is a well-diversified, professionally managed asset allocation strategy with clearly defined investment objectives—that’s your Target program. Sometimes it is good to revisit the reasons why you invest. When you examine them objectively, you will find them just as valid now as they were when you originally opened your Target account.
You are not alone at this difficult time. The investment professionals handling your allocations are constantly analyzing the market for you and will respond appropriately as conditions warrant. I am also here to answer your questions and provide guidance with your financial needs and tolerance for risk uppermost in my mind.
If you are considering a change in your Target allocations or have concerns about the current market conditions, please contact me. I look forward to our discussion.
Sincerely,
(insert FA’s name)
Title
Securities products and investment advisory services are distributed through Prudential Investment Management Services LLC (PIMS), Three Gateway Center, 14TH Floor, Newark, NJ 07102-4077, and offered by Prudential Securities Incorporated, 199 Water Street, New York, NY 10292, and Pruco Securities Corporation, 751 Broad Street, Newark, NJ 07102-3777. All are Prudential Financial companies and member SIPC.
Prudential Financial is a service mark of The Prudential Insurance Company of America, Newark, NJ, and its affiliates.
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IFS-A072877 Ed. 07/2002