Prudential: In Newark, Anchor Institutions Prove Model for Revitalizing Cities

"Newark has quite a lot to offer as a blueprint for other cities," writes Lata Reddy.

Prudential Financial is No. 15 on the DiversityInc Top 50 Companies list


How does a city impacted by decades of crime, poverty, unemployment and divestment rise again?

The answer can be found in a place often overlooked by many — New Jersey's largest city, Newark.

Crime is at a 50-year low; 3,000 jobs have been added in the last year; more than $2 billion in commercial investments have been made; and downtown is booming with new residential developments, a jazz museum and a Whole Foods. Once-crumbling art deco buildings are being restored, barren land now hosts farmers' markets. Most importantly, Newark's resurgence has been led by one guiding principle — to benefit the diverse community that already calls the city home.

"Newark has been positioned for decades at the nexus of inequality and opportunity," writes Lata Reddy, senior vice president, Diversity, Inclusion & Impact at Prudential Financial, in an op-ed. "However, once-intractable problems are beginning to shift."

In "Newark on the Rise: A Model of Inclusive Economic Growth," Reddy writes that the key driver of the city's resurgence is a unique model spearheaded by the city's anchor institutions — which includes deep-rooted businesses like Prudential. While other cities' redevelopment plans have often displaced or overlooked lower-income communities, Newark business leaders have adopted Mayor Ras Baraka's "Hire Local, Buy Local, Live Local" strategy, creating "pathways of opportunity" for residents through capital investment and catalytic philanthropy.

"Cities like Newark play a role in being either accelerators or barriers to mobility, and we have learned a lot working with the community—through successes and failures—to advance inclusive growth," Reddy writes. "Newark has quite a lot to offer as a blueprint for other cities."

Reddy cites four lessons that other cities can learn to create growth and opportunity for all residents. By reimagining anchor institutions, connecting people and places, strengthening intermediaries, and building amenities, stakeholders in a city's future can create the infrastructure necessary to create inclusive growth that preserves a city's character and history—while securing its future.

To learn more, read "Newark on the Rise: A Model of Inclusive Economic Growth."

To speak with Lata Reddy about how Prudential is redefining the role of an anchor institution, contact Caitrin O'Sullivan.

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Prudential: Divorce Compounds Retirement Risk

Strengthened education to help consumers build and protect retirement income needed, Prudential's Kent Sluyter says.

Originally Published by Prudential Financial, Inc.

Divorced Americans are at greater risk of not being able to maintain their standard of living in retirement, according to new research conducted by the Center for Retirement Research at Boston College with the support of Prudential Financial, Inc.

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Prudential: PGIM Real Estate enters San Francisco Bay Area Multifamily Joint Venture with CityView Managed Client

PGIM Real Estate, acting on behalf of an institutional real estate investor, is the real estate investment business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc.

Originally Published by Prudential Financial.

PGIM Real Estate has formed a joint venture with a public pension fund client of CityView to acquire a 50 percent interest in a portfolio of five Class A multifamily properties in the San Francisco Bay Area. The portfolio is valued at approximately $500 million. PGIM Real Estate, acting on behalf of an institutional real estate investor, is the real estate investment business of PGIM, the $1 trillion global investment management businesses of Prudential Financial, Inc.

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Prudential: Stable Value Funds a New Trend in College Savings

Why are an increasing number of states making stable value the conservative investment option in their 529 plans?

Originally Published by Prudential.

For years, many 529 plans offered money market funds as their conservative investment option. Now, they're increasingly replacing them with stable value funds, investment vehicles wrapped in insurance contracts that guarantee a specific minimum return. A new white paper from Prudential Financial, Inc., "529 Plans: Assessing the Stable Value Option", examines why.

Plans in 26 states currently include a stable value fund. Among the recent converts are Iowa's College Savings Iowa plan and Connecticut's CHET Advisor plan, both of which jettisoned money market funds in favor of stable value offerings in 2017. Indiana's CollegeChoice 529 Direct Savings Plan made the same change to stable value in late 2016.

The growing interest in stable value may be explained by the fact that some administrators of 529 plans are familiar with its use in state-sponsored 403(b) and 457 retirement savings plans. Stable value funds have been highly popular for decades in the defined contribution retirement plan market, where they account for more than $700 billion in total retirement plan assets.

With their relatively short investment horizons, many participants in 529 plans place a premium on protecting their principal. At the same time, they appreciate seeing their account grow in value. Stable value addresses these twin priorities with:

  • Book-value guarantees that help assure access to principal and accumulated interest, regardless of financial market conditions
  • Crediting-rate formulas that can smooth out the impact of market volatility on investment returns
  • Returns that historically have outperformed those of the most common conservative investment option, money market funds, helping put 529 plan participants closer to achieving their investment goals

As 529 plans become increasingly popular, many plan administrators may find adding a stable value option to their investment lineup a competitive necessity—especially in the wake of recent tax law changes.

Under the Tax Cuts and Jobs Act of 2017, qualified uses for 529 plan assets have been expanded to include not just postsecondary education but also qualified K-12 expenses—up to $10,000 per year. With that change, some parents may find themselves tapping their 529 assets sooner than anticipated. If so, their keen focus on principal guarantees—and the appeal of stable value funds—may only be heightened.

New York Red Bulls Sign 12 Players from Special Olympics New Jersey Red Bulls and Prudential Partner on Unified Program

"This program promotes wellness in our community—physical, social, emotional—inspiring us to find ways to overcome challenges and become powerful forces for change."

Originally Published by Prudential Financial, Inc.

The New York Red Bulls, in partnership with Prudential Financial, Inc., have signed 12 athletes from Special Olympics New Jersey to two-game contracts, the club announced. Prudential Financial is the proud presenting partner of the Red Bulls Special Olympics Unified Team.

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