Asset Allocation: Investment Process: Principal LifeTime Funds
The simple, professionally managed investment solutions of the Principal LifeTime Funds are designed to assist you in making asset allocation decisions before and during retirement.* All you need to do is choose a Principal LifeTime Fund based on an identified time horizon (such as an approximate retirement date) and your assets will be allocated accordingly.
Asset allocations for each fund are set, managed, and systematically adjusted by the experienced professionals at Principal Global Investors and Principal Management Corporation. These seasoned teams provide the asset allocation strategy for each of the funds by:
- Using a proprietary investment process to arrive at fund allocations.
- Providing ongoing professional rebalancing.
- Offering continual portfolio adjustment services.
Premier Investment Managers
The Principal LifeTime portfolios are "fund-of-funds" investments - mutual funds that are built with allocations to other Principal Funds. These funds are managed by portfolio managers from the premier investment firms listed below, as well as by asset allocation specialists. For you, this means investing with confidence, knowing you have access to broad choices and more options for diversification.
The sub-advisors that manage the underlying funds:
|AllianceBernstein||AQR Capital Management||Barrow Hanley|
|Causeway||Cliffwater||Colonial First State Asset Management|
|Columbus Circle Investors||Credit Suisse||DDJ Capital Management|
|Dimensional Fund Advisors||Edge Asset Management||Finisterre Capital|
|Guggenheim||Herndon Capital Management||Jennison Associates|
|JP Morgan Asset Management||LA Capital||Loomis Sayles|
|Mellon Capital Management||Neuberger Berman||PIMCO|
|Post Advisory Group||Principal Global Investors||Principal Real Estate Investors|
|Reaves Asset Management||Robert W. Baird & Co.||Spectrum Asset Management|
|Stone Harbor Investment Partners||Symphony Asset Management||T. Rowe Price|
|Tortoise Capital Advisors||TS&W||Vaughan Nelson|
|Wellington Management||Westwood Asset Management||William Blair & Company|
|York Capital Management|
Helping You Manage Your Fiduciary Responsibility
All of the managers listed above are subject to the stringent selection criteria and ongoing oversight of our due diligence process which helps us identify, hire, monitor, and retain premier investment talent.
We are committed to evaluating the affiliated and unaffiliated firms so we can:
- Identify stable, well-managed investment firms with top talent.
- Monitor the firms to identify any adverse changes in their organizations, investment process, or performance results.
This process assures that all portfolio managers of our funds are evaluated regularly against high expectations.
*Asset allocation /diversification does not guarantee a profit or protect against a loss.
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 Fund 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 timeframe that extends 10-15 years beyond the target date, at which point it reaches its most conservative allocation. Principal LifeTime Funds 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.
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.
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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.
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