The Principal Trust Target Date Collective Investment Funds Exceed $1 billion in Assets
Surpasses milestone in less than two years
February 10, 2011 (Des Moines, IA) - The Principal TrustSM Target Date Collective Investment Funds, launched July 2009 by Principal Trust Company, recently exceeded $1 billion in assets. The funds are a target date investment series developed exclusively for qualified retirement plans through a collective investment trust.
“We’re pleased with the funds’ strong returns and growth,” said Art Bacci, president and CEO of Principal Trust Company and Principal Bank. “We launched these funds because financial professionals and their plan sponsor clients wanted additional choices. The growth in this fund series demonstrates continued strong demand for this type of investment option that includes passively managed underlying assets.”
Full range of asset allocation choices
The Principal Trust Target Date Funds series is one of two target date options—along with Principal LifeTime Funds—available from the Principal Financial Group®. They are part of a suite of asset allocation products and services that is among the most comprehensive in the industry. Other choices include:
- Principal Strategic Asset Management Portfolios—a target-risk option
- The Principal Managed Account ProgramSM—ongoing independent investment advice through Ibbotson Associates
- RetireViewSM—an educational asset allocation service
For more information about the Principal Trust Target Date Collective Investment Funds, visit http://www.principal.com/rates.htm
About the Principal LifeTime Funds
Principal LifeTime Funds invest in underlying Principal Funds and each is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. Investors choose the portfolio most closely matching their approximate retirement date. As each Principal LifeTime portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investment options and reducing exposure to typically more aggressive investment options. The portfolio continues to be managed for approximately 15 years beyond the original target date. It is expected that within 10 to 15 years after its target year, the allocation will match that of the Principal LifeTime Strategic Income investment. Principal LifeTime portfolios assume the value of the investor's account will be withdrawn gradually during retirement.
Neither the principal nor the underlying assets of the Principal LifeTime investment options are guaranteed at any time, including the target date. Investment risk remains at all times.
Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be obtained from your local representative or by contacting us as 800.547.7754. Please read the prospectus carefully before investing.
Your investment’s returns and principal values will fluctuate so the value, when redeemed, may be worth more or less than the original costs. Additionally, there is no guarantee these investment options will provide adequate income at or through retirement.
About Principal Trust Company
Delaware Charter Guarantee & Trust Company, conducting business as Principal TrustSM Company (“Principal Trust”) is a member of the Principal Financial Group®. The Principal TrustSM Target Date Funds, is a series of collective investment funds maintained by Principal Trust, as trustee, under the Plan and Declaration of Trust of Principal TrustSM Target Date Collective Investment Funds, as amended from time to time (“Trust”). Principal Management Corporation (“PMC”), an affiliate of Principal Trust, provides nondiscretionary advisory services to Principal Trust with respect to the Principal Trust Target Date Funds. Principal Trust and PMC are fiduciaries subject to the Employee Retirement Income Security Act of 1974, as amended.
Principal Trust Target Date Funds are available only to qualified plans and governmental 457(b) plans. They are not mutual funds and are not registered with the Securities and Exchange Commission, the State of Delaware or any other regulatory body. Principal Trust Target Date Funds are not guaranteed by Principal Trust, PMC, any of their affiliates, the FDIC or any other governmental agency.
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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 $318.8 billion in assets under management and serves some 19.1 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.
Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, 800.547.7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor Registered Representative are offered through Princor®. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392.
- Principal TrustSM Target Date Collective Investment Funds (Principal Trust Target Date Funds)
- "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 Dec. 31, 2010.