Principal Funds Addresses Need for Diversified Income in Retirement
Fund seeks income through diversification; white paper examines retirement income strategies
January 27 , 2010 (Des Moines, IA) - With nearly 76 million Baby Boomers nearing or beginning their retirement, the need for customized and well-executed retirement income strategies has never been greater. The Principal Global Diversified Income Fund, with a one-year track record of strong performance since its December 2008 launch, seeks cash income through a diversified, yield-focused investment strategy.
"By 2014, it is projected that more money will flow out of qualified retirement plans than into them because of retiring Baby Boomers," said Mike Finnegan, Principal Funds chief investment officer and portfolio advisor of the Principal Global Diversified Income Fund. "For financial professionals and their clients the discussion is shifting from accumulation of assets to converting their savings into a stable income stream that is designed to last a lifetime."
The Principal Global Diversified Income Fund is designed to complement more traditional yield-producing investments with specialized asset classes. The fund uses a multi-manager, multi-disciplined approach and active rebalancing.
Asset classes and target allocations in the fund include:
- High-yield bonds - 35 percent
- Preferred securities - 20 percent
- Global real estate securities - 15 percent
- Master limited partnerships (MLPs) - 10 percent
- Global value equity - 10 percent
- Emerging markets debt - 10 percent
For more information about the Principal Global Diversified Income Fund, including performance numbers, visit www.principalfunds.com/PGBAX.
New white paper for financial professionals available
A new Principal Funds white paper written for financial professionals examines diversified yield strategies and the impact of a global diversified income portfolio in a traditional portfolio. The paper, "Retirement Income Strategies - Why Diversification Matters," is available at www.principalfunds.com/diversifiedretirementincome.
About Principal Funds
Principal Funds is a leading provider of mutual funds, with more than $54.1 billion in assets under management. Principal Funds brings expertise in global investment management, asset allocation and retirement leadership to financial professionals and investors. Including its target-risk and target-date offerings, Principal Funds is the fifth-largest manager of lifecycle funds in the industry. The companies that make up Principal Funds are members of the Principal Financial Group®. For more information, visit www.principalfunds.com.
About the Principal Financial Group
The Principal Financial Group® (The Principal®) 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. A member of the Fortune 500, the Principal Financial Group has $280.4 billion in assets under management 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.
Before investing, you should carefully consider a fund's investment objectives, risks, charges, and expenses. Contact your financial professional, visit 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 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.
Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Lower-rated securities are subject to additional credit and default risks. Risks associated with preferred securities differ from risks inherent with other investments. In particular, in the event of bankruptcy, a company's preferred securities are senior to common stock but subordinated to all other types of corporate debt.
International investing involves increased risks due to currency fluctuations, political or social instability, and differences in accounting standards, these risks are magnified in emerging markets. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration.
- Cerulli Associates, Tiburon Strategic Advisors.
- Allocations for high-yield bonds, preferred securities and global real estate strategies may range +/- 10 percent; other allocations range +/- 5 percent.
- As of September 30, 2009. Includes all share classes of the Principal Funds, Inc and Principal Variable Contracts Fund, Inc.
- FRC Mutual Fund Lifecycle Report 3Q09.
- The Principal Financial Group and The Principal are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
- As of September 30, 2009.