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Principal Funds

Principal LifeTime Funds: Investment Process

Managing Risk over a Lifetime of Investing


When it comes to saving for retirement, managing risk can be critical. But many investors find it a challenge to properly diversify, let alone address specific risks as they age. You can help take some of the pressure off by considering a well-diversified, professionally managed target date series option.

We were among the first to make available a target date mutual fund series and we're currently the largest mutual fund provider of active multi-managed target date choices and the fourth largest provider of target date lifecycle funds in the United States.1 Highly diversified, our target date series is made available as a single investment option and based on a targeted retirement date.

Our target date series is multi-managed – meaning we select premier investment managers in their specialty, which helps avoid any management-firm bias. It also provides exposure to investment managers that may only be available to institutional investors.

Videos: Watch the videos featuring Jeff Tyler, Portfolio Manager, to learn more about our LifeTime portfolios.


Meet Jeff Tyler, Portfolio Manager (2:27)

Target date glide paths (4:08)

Drivers of change to portfolios (2:05)

Features of LifeTime (2:55)

About Principal LifeTime Funds

The Principal LifeTime Funds, which are target date funds, invest in underlying Principal Funds. Each Principal LifeTime Fund is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. As each Principal LifeTime portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investment options and reducing exposure to typically more aggressive investment options. The asset allocation for each Principal LifeTime Fund is regularly re-adjusted within a time frame that extends 10-15 years beyond the target date, at which point it reaches its most conservative allocation. Principal LifeTime portfolios assume the value of the investor's account will be withdrawn gradually during retirement. Neither the principal nor the underlying assets of the Principal LifeTime Funds are guaranteed at any time, including the target date. Investment risk remains at all times.


1 Based on the data from most recent Strategic Insight Lifecycle Fund Data Report, 4th Quarter 2013. "Active multi-managed target date funds" describes the underlying assets.

Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost.

Asset allocation and diversification do 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 investment options are subject to interest rate risk, and their value will decline as interest rates rise.

International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.

Risk is magnified in emerging markets, which may lack established legal, political, business or social structures to support securities markets.

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To obtain a prospectus, download online or call Sales Support at 1.800.787.1621

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. For more information about our funds, including their full names, please see the Principal Funds, Inc. prospectus or call Sales Support at 1.800.787.1621.

Investing involves risk, including possible loss of principal.

Principal Funds are distributed by Principal Funds Distributor, Inc.

Not FDIC Insured - May Lose Value - No Bank Guarantee

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