Address your clients’ biggest investment concerns—generating income, inflation, and market volatility—with our Principal Portfolio Construction StrategiesSM.
Research shows today’s investors want to generate income (58%), protect their purchasing power (31%), and manage volatility (45%).* Principal Portfolio Construction Strategies are designed to address specific client concerns through evolving conditions.
If you’re looking to generate income, fight inflation, or manage volatility, our outcome-oriented strategies are designed to help.
Inflation is a “silent killer” that eats away at your purchasing power over time without you even realizing it. It can be doubly damaging for retirees no longer earning salaries. The Principal Diversified Real Asset Fund strategically allocates among multiple strategies and premier managers to target broad inflationary and market concerns.
Investors need income. But to get it, they may be taking on more risk than they’re comfortable with. The Principal Global Diversified Income Fund takes a yield-focused approach with both fixed-income and equity investments. It aims for consistent cash income with capital appreciation potential and lower risk in a variety of market conditions.
Research has shown that defending your portfolio against volatility may be more critical to building your wealth over the long term than achieving the highest returns. The Principal Global Multi-Strategy Fund uses an innovative blend of strategies to help defend portfolios against volatility.
*Principal Financial Well-Being Index, Fourth Quarter 2015.
The Principal Diversified Real Asset Fund uses fixed-income investments that are subject to interest rate risk; as interest rates rise their value will decline. The U.S. government does not guarantee the principal or coupon payments of non-U.S. Treasury bonds. Investments in natural resource industries can be affected by disease, embargoes, international/political/economic developments, variations in the commodities markets/weather and other factors. Investing in derivatives entails specific risks regarding liquidity, leverage and credit that may reduce returns and/or increase volatility.
The Principal Global Diversified Income Fund uses fixed-income investments that are subject to interest rate risk; as interest rates rise their value will decline. Lower-rated securities are subject to additional credit and default risks, as are mortgage-backed securities, which carry pre-payment risk and increased risk due to real estate exposure. International investing involves greater risks such as currency fluctuations, political/social instability, and differing accounting standards. These risks are magnified in emerging markets, which have increased liquidity risk. Equity investments involve greater risk, including higher volatility, than fixed-income investments.
The Principal Global Multi-Strategy Fund utilizes alternative strategies such as arbitrage, leverage, derivatives and shorting securities. Long/short investing does not guarantee lower risk associated with equity markets, capitalization, sector swings or other factors and may have higher turnover with additional tax consequences. Short selling risks include investment loss and added costs to cover short positions. International investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Use of alternative strategies may magnify risk. Securities such as bonds, equities, international and emerging market securities, and currencies are subject to risks associated with market and interest rate movements. The Fund is non-diversified and may be more susceptible to price volatility if the Fund does not meet its objective. Investors should not expect significant outperformance during market rallies. Additional risks are included in the Fund’s prospectus.