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RetireView asset category enhancements

The diversification needs of today’s participants require flexibility to allow for greater asset allocation. Beginning June 23 we’re enhancing our RetireView® service for plan sponsors in a few ways:

  1. An increase from two to as many as four investment options per RetireView asset category .
  2. The flexibility to modify the asset allocation or weighting flexibility within the asset category, when using two or more investment options in that category (i.e., customizing allocation percentages vs. splitting evenly).

This additional flexibility results in changing the maximum number of investment options in a plan’s RetireView model from 18 to 24. For plans allowing partial allocations, the maximum number of standalone investment options that a participant can contribute to while also contributing according to a RetireView model is changing from 12 to 6.

Tell me more

If you’re not already familiar with our RetireView service, take a look through this brochure . It includes some background while outlining benefits for both plan sponsors and participants.

Questions?

Contact your Principal® representative or the Advisor Support Team at 800.952.3343, option 4.

Morningstar Investment Management LLC is not an affiliate of any company of the Principal Financial Group.

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 investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments. Asset allocation does not ensure a profit or protect against a loss. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. Review the RetireView Terms and Conditions for a full discussion of the features of this service, including rebalancing and automatic age adjustment of the populated models.

Investing involves risk, including possible loss of principal

Risk/age tolerance models are created by Morningstar Investment Management LLC. Morningstar begins by analyzing asset classes and constructs long-term expected returns, standard deviations, and correlation coefficients. These form the inputs for the mean-variance optimization, a statistical technique. Because forecasting is a critical and pivotal step in the asset allocation process, Morningstar develops proprietary capital market forecasts for each asset class using a combination of historical data, current market information and additional analysis. Each forecast becomes an input in portfolio creation.

The risk tolerance models (models) are intended to be used as an additional information source for retirement plan participants making investment allocation decisions. Pursuant to the Department of Labor Definition of Investment Education, such models (taken alone or in conjunction with this document) do not constitute investment advice for purposes of the Employee Retirement Income Security Act (ERISA), and there is no agreement or understanding between Morningstar and us or any plan or plan fiduciary, or any participant who uses this Service, under which the latter receives information, recommendations or advice concerning investments that are to be used for any investment decisions relating to the plan. Accordingly, neither we nor Morningstar are a fiduciary with respect to your plan sponsor's plan for purposes of this Service, including the features of rebalancing and aging. Following an asset allocation model does not ensure a profit or protect against a loss. Performance of the individual models may fluctuate and will be influenced by many factors. In applying particular asset allocation models to their individual situations, participants or beneficiaries should consider their other assets, income and investments (e.g., equity in a home, Social Security benefits, IRA investments, savings accounts and interests in other qualified and nonqualified plans) in addition to their interests in the plan.

Insurance products and plan administrative services provided through Principal Life Insurance Co. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker-dealers. Principal Life, and Principal Securities® are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths.

For additional information visit us at principal.com.

© 2017 Principal Financial Services, Inc. | 04/2017 | t1704250965

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