Asset Allocation: Investment Process: Principal LifeTime Funds

With the simple, professionally managed investment solutions of the Principal LifeTime Funds, clients can "set it and forget it." All you need to do is identify approximately when you want to retire, and your assets are allocated accordingly.

The Principal LifeTime Funds are managed by experts at Principal Global Investors, who provide the asset allocation strategy for each of the Funds, using a proprietary investment process to arrive at fund allocations and providing ongoing professional rebalancing and continual portfolio adjustment services.

Principal LifeTime Funds are funds-of-funds, investing in other Principal Funds. These funds are managed by portfolio managers from the premier investment firms listed below, as well as experienced asset allocation specialists.

Premier investment management firms that may be utilized in the Principal LifeTime Funds

Alliance Bernstein Investment Research	Mellon Capital Management
Columbus Circle Investors	Principal Global Investors
Edge Asset Management	Principal Real Estate Investors
Fidelity Investments	Spectrum Asset Management
JP Morgan Asset Management	T. Rowe Price Associates, Inc.
Lehman Brothers	Turner Investment Partners, Inc.
Los Angeles Capital Management	UBS Global Asset Management Inc.
Mazama Capital Management, Inc.	Westwood Management

All of the investment managers listed above are subject to the stringent selection process and ongoing monitoring of Principal Due Diligence Program^(sm).

Principal Due Diligence Logo

Our Due Diligence Program helps us identify, hire, monitor, and retain premier investment talent. We evaluate affiliated and unaffiliated firms so that we can:

Identify stable, well-managed investment firms with top talent.
Continuously monitor these firms to identify any adverse changes in their organizations, investment processes, or performance results.

This process assures that all portfolio managers of our funds are evaluated regularly against high expectations.

To obtain a prospectus, download online or call Customer Service at 1.800.222.5852

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 Customer Service at 1.800.222.5852.

A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.

This Web site was created and is maintained by Principal Funds Distributor, Inc. exclusively, and not by the Directors of the funds.

Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc., member of the Principal Financial Group^®. Principal Funds Distributor, Principal Shareholder Services, Principal Management Corporation and its affiliates, and Principal Funds, Inc. are collectively referred to as Principal Funds.

Not FDIC or NCUA/NCUSIF insured - May lose value - No bank guarantee - Not a deposit - Not insured by any federal government agency