Principal Funds Expands Principal LifeTime Portfolios
March 25, 2008 (Des Moines, Iowa) — Principal Funds, the fourth largest manager of target-date lifecycle mutual funds1, added five new portfolios to its popular Principal LifeTime funds series.
Originally offered in 10-year increments, the new portfolios provide Principal LifeTime funds at five-year intervals from 2010 through 2055.
Principal LifeTime funds are a series of target-date investment options that provide an asset allocation choice for investors who prefer to not actively manage their asset allocation.
"Lifecycle funds are a strong choice for most investors. With the addition of five-year increments, Principal LifeTime funds offer an even greater level of choice and flexibility for investors," said Michael Finnegan, Principal Funds chief investment officer. "These professionally managed portfolios are designed to help withstand the kind of market volatility we're experiencing today."
Asset allocation funds automatically rebalance as investors get closer to the target retirement dates. The automatic rebalancing results in longer retention rates of asset allocation funds compared to traditional equity or fixed income funds, according to the DALBAR Quantitative Analysis of Investor Behavior 2007 report. Asset allocation funds are designed to help limit investor losses due to fear-based selling in a down market, the report said.
Available Principal LifeTime Funds now include:
- Principal LifeTime 2010
- Principal LifeTime 2015
- Principal LifeTime 2020
- Principal LifeTime 2025
- Principal LifeTime 2030
- Principal LifeTime 2035
- Principal LifeTime 2040
- Principal LifeTime 2045
- Principal LifeTime 2050
- Principal LifeTime 2055
- Principal LifeTime Strategic Income (designed for investors who are approximately 15 years beyond retirement)
At this time, the five-year increments are available in share classes designed for retirement plan use and institutional class shares.
About Principal Funds
Principal Funds is a leading provider of mutual fund solutions for individual investors and retirement plans, with more than $63 billion2 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 fifth largest manager of target-date and target-risk lifecycle funds in the industry.3 Principal Funds are sold through a nationwide network of financial professionals associated with brokerage and financial planning firms. Principal Global Investors is a member of the Principal Financial Group®.
About the Principal Financial Group
The Principal Financial Group® (The Principal®)4is 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. A member of the Fortune® 500, the Principal Financial Group has $311.1 billion in assets under management5 and serves some 18.6 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.
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.
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1) As of December 31, 2007. Source: Financial Research Corporation Mutual Fund Lifecycle Report 4Q07
2) As of December 31, 2007. Includes Principal Investors Fund, Inc. and Principal Variable Contracts Fund, Inc. assets
3) As of December 31, 2007. Source: Financial Research Corporation Mutual Fund Lifecycle Report 4Q07
4) "The Principal Financial Group" and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
5)
As of December 31, 2007
