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Updates to total investment expense

It’s that time of year when we make the annual updates to net and gross total investment expenses for Principal Funds Inc. mutual funds and Principal Life Insurance Company Separate Accounts.

Clients will receive a report that relates to their organization’s retirement plan lineup (plus any Separate Accounts on their group annuity contract, if applicable) and shows the changes. This report will be added to their online documents on the plan sponsor website on March 11.

What’s the impact?

This update applies to the investment expense ratio component for some of our Sub-Advised Investment Options. The values are based on the information in the March 1 prospectus. (Or, for our Separate Accounts, the Notice of Management Fees on the employer website and will be reflected in next quarter’s fact sheets.)

Keep in mind

  • Some of your clients may notice some slight changes in the total investment expenses compared to last month.
  • When net total investment expense is displayed on mutual fund materials, it’s coming from the prospectus. (For our Separate Accounts, it’s coming from the Notice of Management Fees on the employer website, and will be reflected in next quarter’s fact sheets.)
  • If contractual caps or expense waiver dates apply, they’ll be displayed too — along with the net total investment expense.

For details, use the Investment Data Reporting Tool.

Questions? We’re here to help. If you’d like more information about the updates, please contact your Principal® representative.

For financial professional use only. Not for distribution to the public.

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.

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.

Investing involves risk, including possible loss of principal.

Sub-Advised Investment Options include Separate Accounts available through a group annuity contract with Principal Life Insurance Company and mutual funds available through the Principal Funds, Inc.

Differences may also be shown due to the fund family choosing to pay certain expenses that would normally be payable by the fund. Returns displayed are based on net total investment expense.

Insurance products and plan administrative services provided through Principal Life Insurance Co. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker-dealers. Principal Life, Principal Funds Distributor, Inc. and Principal Securities are members of the Principal Financial Group®, Des Moines, Iowa 50392. Certain investment options and contract riders 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.

© 2018 Principal Financial Services, Inc.
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