Selecting investment options for a retirement plan is one of the most important tasks of a plan fiduciary. The Principal Financial Group® makes available a comprehensive and extensive set of choices. This flexibility can help you and your client build an investment lineup that meets the needs of the plan and its participants.
When you work with Principal®, you benefit from our outcome-based retirement investment expertise through:
- Access to institutional-quality1 investment options through global investment management
- Streamlined investing for participants thanks to our asset allocation expertise
- Recognized retirement leadership2 backing a retirement-focused investment platform
1Sub-advisors for Principal investment options are selected using our proprietary due diligence process that provides a rigorous and disciplined framework for identifying, hiring, and retaining premier investment managers within each asset class and investment style. It is characterized by the comprehensive and continuous review of all investment managers based on our specific investment guidelines.
2Based on rankings for: Defined Benefit: No. 1 for total number of clients, PLANSPONSOR DB Administration survey, May 2015; Nonqualified: No. 1 provider of nonqualified deferred compensation plans, total number of Section 409A plans and non-governmental 457 plans, PLANSPONSOR 2017 NQDC Recordkeeping Survey, June 2017.
- Registered and non-registered investment products
- More than 85 sub-advised investment options managed by 50 institutional-quality managers (Sub-Advised Investment Options)1
- More than 4,500 outside mutual funds (Mutual Fund Network)2
- Among the most comprehensive set of asset allocation choices in the industry
- Investment fiduciary support and services
1March 31, 2017.
2As of Dec. 31, 2016.
Our investment platform has four main components:
- Sub-Advised Investment Options. Sub-Advised Investment Options are the foundation of our investment platform because we design them specifically for retirement plans. They cover a wide range of asset classes and focus on long-term growth, paying special attention to the amount of risk taken for the potential returns. We have more than 85 Sub-Advised Investment Options managed by 50 institutional-quality managers.1,2,3
- Asset Allocation Choices. We have created one of the most comprehensive ranges of asset allocation choices in the industry. It includes
- Two unique types of target date investment options
- Target risk investment options
- Educational service combining target date and risk in allocation models
- Independent investment advisory services
- Mutual Fund Network. This is a vast menu of investment options featuring more than 4,500 outside mutual funds from over 215 fund families.4
- Fixed Income Investment Options. Our spectrum of fixed income investment options includes total return, Guaranteed Interest5 and stable value investment options, each with unique characteristics to help meet a variety of plan goals.
About target date investment options:
Target date portfolios are managed toward a particular target date, or the approximate date the investor is expected to start withdrawing money from the portfolio. As each target date portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investments and reducing exposure to typically more aggressive investments. Neither the principal nor the underlying assets of target date portfolios are guaranteed at any time, including the target date. Investment risk remains at all times. Neither asset allocation nor diversification can assure a profit or protect against a loss in down markets. Be sure to see the relevant prospectus or offering document for full discussion of a target date investment option including determination of when the portfolio achieves its most conservative allocation.
1Sub-Advised Investment Options include Separate Accounts available through a group annuity contract with Principal Life Insurance Co. Principal Funds Distributor mutual funds are distributed by Principal Funds Distributor, Inc. Principal Global Investors Trust Company Collective Investment Funds (CITs) available through a participation agreement with the Trust Company. The managers used within our sub-advised investment options can change at any time. Review each investment option for applicable investment manager or investment manager defined by ERISA.
2Sub-advisors for Principal® sub-advised investment options are selected using our proprietary due diligence process that provides a rigorous and disciplined framework for identifying, hiring and retaining premier investment managers within each asset class and investment style. It is characterized by the comprehensive and continuous review of all investment managers based on our specific investment guidelines.
3As of March 31, 2017.
4As of Dec. 31, 2016.
5Guarantees are supported by the General Account of Principal Life, but participants do not participate in the investment experience or performance of the General Account. Guarantees are based upon the claims-paying ability of the issuing insurance company. Guarantees do not apply to the stable value investment options.
Before directing retirement funds to a separate account, investors should carefully consider the investment objectives, risks, charges and expenses of the separate account as well as their individual risk tolerance, time horizon and goals. For additional information contact us at 800-547-7754 or by visiting principal.com.
Carefully consider the Fund’s objectives, risks, charges, and expenses. Contact your financial professional or visit principal.com for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing.
Investing involves risk, including possible loss of principal.
Asset allocation and diversification does not ensure a profit or protect against a loss. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. These risks are magnified in emerging markets.
There is no guarantee that a target date investment will provide adequate income at or through retirement.
This document is not a recommendation and is not intended to be taken as a recommendation. This material was prepared for general distribution and is not directed to a specific individual.
Investment manager/sub-advisor means either the Investment Adviser or Sub-Advisor to the investment option or the underlying asset(s). Principal Life Insurance Company is the Investment Manager as defined by ERISA, with regard to the assets of the Separate Accounts. The trustee of any Collective Investment Trust is the Investment Manager as defined by ERISA, with regard to the assets of the CIT.
Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Principal Securities Inc., (800) 547-7754, Member SIPC and/or independent broker/dealers. Principal Funds Distributor, Principal Securities and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. Investment options may not be available in all states or U.S. commonwealths. Separate Accounts are available through a group annuity contract with Principal Life Insurance Company. See the group annuity contract for the full name of the Separate Account. Principal Life Insurance Company reserves the right to defer payments or transfers from Principal Life Separate Accounts as permitted by the group annuity contracts providing access to the Separate Accounts or as required by applicable law. Such deferment will be based on factors that may include situations such as: unstable or disorderly financial markets; investment conditions which do not allow for orderly investment transactions; or investment, liquidity, and other risks inherent in real estate (such as those associated with general and local economic conditions). If you elect to allocate funds to a Separate Account, you may not be able to immediately withdraw them.
For our Sub-Advised Investment Options, Principal Life provides support to cover the following fiduciary concerns:
- Qualified Default Investment Alternatives (QDIA)
- Prudent monitoring and selection
We make available optional 3(21) and 3(38) fiduciary services provided separately by Wilshire Associates Incorporated (Wilshire®) – an independent third-party firm – for which Wilshire agrees to act as a fiduciary to your plan.
Wilshire® is a registered service mark of Wilshire Associates Incorporated, Santa Monica, California. All other trade names, trademarks, and/or service marks are the property of their respective holders.
Wilshire is not an affiliate of any member company of the Principal Financial Group®.
Principal Life does not act as an ERISA 3(21) or 3(38) fiduciary under the Wilshire-provided fiduciary services.
Here are our core investment platform marketing materials:
Investment fiduciary support and services (PQ10428)
This brochure describes the investment fiduciary support and services available for a retirement plan with services provided by Principal.
Fixed income investment options (PQ8614)
This brochure discusses the role of fixed income in a retirement plan lineup and provides details about the investment options available.
Flexible asset allocation choices (PQ10004C)
This brochure provides detailed information about the asset allocation choices available.