News & Events
Principal Funds responds to the Merrill Lynch RIC Report
March 1, 2014
To support your goal of helping clients reap the benefits of attractive market environments and stay the course during challenging ones, Principal Funds has developed a piece providing insights derived from the current RIC Report. Contact your local wholesaler for a copy of Merrill Lynch RIC Report Meets Principal Funds Strategies.
March 1, 2014
Financial professionals and investors seek to mitigate idiosyncratic risk, or asset specific risk, through portfolio diversification. Once that is achieved, market risk still remains. Principal Funds believes the answer for combating market risk in portfolios, thereby reducing volatility, lies in creating a mix of assets and strategies that provide a purpose other than the investments used in a "long-only" or traditional asset mix. The purpose of an alternative investment strategy is to primarily hedge risk while seeking to achieve positive absolute returns or reduce losses during periods of extreme volatility, or what are commonly referred to as "tail events." Alternative Strategies: Addressing Market Risk – An Alternative Approach, a recent research report issued by Principal Funds discusses:
Asset allocation/diversification does not guarantee a profit or protect against a loss.
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