Principal Funds Announces New Global Equity Mutual Funds
November 13, 2007 (Des Moines, Iowa) — In today's global economy, approximately two-thirds of the world's market capitalization lies outside the U.S.1 Investors without international exposure may be disadvantaged at best, and at worst, risk missing out on potential growth. Yet while international equity investing by institutional investors skyrocketed in 2007 (17 percent exposure on average), many individual investors remain underexposed to international equities.
To help financial professionals and their clients address the need for greater international investment opportunities, Principal Funds announces the addition of two new offerings to its international line-up:
- Principal Global Real Estate Securities Fund - a new fund focused on investing in equity securities of U.S. and non-U.S. companies principally engaged in the real estate industry. (Class A - POSAX; Class C - POSCX)
- Principal International Growth Fund - an existing fund with new retail share classes, investing in common stocks and other securities of companies domiciled in any of the nations of the world that may be poised for above-average growth. (New share classes include Class A - PIRAX; Class C - PIRCX).
The Principal Funds retail international offerings also include two existing mutual funds, Principal Diversified International Fund and Principal International Emerging Markets Fund. The funds are sub-advised by Principal Global Investors, LLC, a leading global asset manager and a member of the Principal Financial Group® (NYSE: PFG), and its affiliate, Principal Real Estate Investors, LLC.
According to Ralph Eucher, president of Principal Funds, with so much of the global stock market located outside the U.S., "A whole new world of investment opportunity exists beyond the boundaries of the United States. The chance to offer investors potential for added diversification through international investing is simply too big to ignore."
"Location, location, location" takes on new global meaning
With the global real estate market estimated to reach $1 trillion by 2010, the new Principal Global Real Estate Securities Fund is poised to leverage expanding opportunities in Asia and Europe. More than 30 countries have adapted the American invention -- the real estate investment trust (REIT) -- to their own local laws and regulations. The addition of real estate securities to an investment portfolio can provide investors with a number of potential advantages including inflation hedge, additional source of diversification and liquidity, and higher investment returns.
"U.S. investors know that the value of property hinges on location. Investors worldwide are coming to the same conclusion and now have the whole world to choose from," Eucher said.
Where in the world is opportunity?
"Some investment opportunities are found abroad, and nowhere else," Eucher says. The Principal International Growth Fund allows investors to step outside the U.S. to diversify internationally and gain exposure to well-known companies in fast growing economies.
Not all global managers created the same
Few asset managers have the top-notch domestic and international capabilities of Principal Global Investors to cover multiple regions of the globe successfully. With a large global footprint and world-class expertise in equities, fixed income and real estate, Principal Global Investors manages $244.9 billion in assets for institutional investors, including 10 of the 25 largest U.S. pension plans2, and individuals. With more than 1,300 employees including approximately 500 investment professionals, Principal Global Investors trades during daylight hours in the local currencies of 29 countries.
According to Tim Dunbar, executive director of equities at Principal Global Investors, "where other investment firms stop, our analysts really go to work, taking the top 20 percent of the investment universe and filtering it further. Our focus is to find the best companies to invest in anywhere in the world, unlike many country or sector-focused investment approaches."
For more information about these and other Principal Funds, financial professionals should call 800-787-1621, or visit www.principalfunds.com.
International investing involves increased risks due to currency fluctuations, political or social instability, and differences in accounting standards. Real estate investment options are subject to some risks inherent in real estate and real estate investment trusts (REITs), such as risks associated with general and local economic conditions. Investing in REITs involves special risks, including interest rate fluctuation, credit risks, and liquidity risks, including interest conditions on real estate values and occupancy rates.
About the Principal Financial Group
The Principal Financial Group® (The Principal®)3 is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies and national network of financial professionals. A member of the Fortune 500, the Principal Financial Group has $306 billion in assets under management4 and serves some 18.1 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
About Principal Funds
Principal Funds is a leading provider of mutual fund solutions for individual investors and retirement plans, with approximately $64.4 billion5 in assets under management. Principal Funds is backed by the extensive asset management capabilities of Principal Global Investors and other leading subadvisors and has special expertise in asset allocation solutions. Including target risk and target date funds, Principal Funds is the 5th largest manager of lifecycle funds in the industry.*6 Principal Funds are sold through a nationwide network of financial professionals associated with brokerage and financial planning firms. Principal Funds Distributor, Inc. and Principal Global Investors are both members of the Principal Financial Group.
About Principal Global Investors
Principal Global Investors is a diversified asset management organization and a member of the Principal Financial Group®, with expertise in equities, fixed income and real estate investments, as well as specialized overlay and advisory services. Principal Global Investors manages $244.9 billion in assets primarily for retirement plans and other institutional clients.7
Before investing, you should carefully consider a fund's investment objectives, risks, charges, and expenses. Contact your financial professional, visit www.principalfunds.com, or call 800-222-5852 to obtain a prospectus containing this and other information. Read the prospectus carefully before investing.
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.
Principal Investors Fund, 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 Investors Fund, Inc. are collectively referred to as Principal Funds.
Principal Trust Company is the trade name of Delaware Charter Guarantee & Trust Company a member of the Principal Financial Group, Des Moines, IA 50392.
1) Of the more than $50 trillion global stock market, two-thirds is outside the U.S. (Source: S&P Citigroup Global Equity Indices.)
2) Pensions & Investments, Jan. 25, 2007
3) "The Principal Financial Group" and "The Principal" are registered trademarks of Principal Financial Services, Inc., a member of the Principal Financial Group.
4) As of September 30, 2007.
5) As of 9/30/07. Includes Principal Investors Fund, Inc. and Principal Variable Contracts Fund, Inc. assets
6) As of June 30, 2007. Source: FRC Mutual Fund Lifecycle Report
7) As of Sept. 30, 2007. Principal Global Investors is the asset management arm of the Principal Financial Group® (The Principal® and includes the asset management operations of the following subsidiaries of The Principal: Principal Global Investors, LLC; Principal Real Estate Investors, LLC; Spectrum Asset Management, Inc.; Post Advisory Group, LLC; Columbus Circle Investors, Edge Asset Management, Inc.; Principal Global Investors (Europe) Limited; Principal Global Investors (Singapore) Ltd.; Principal Global Investors (Australia) Ltd.; and the majority owned affiliates of Principal International, Inc.
