Principal Funds Wins Four Lipper Fund Awards
Firm earns best Mixed-Asset Large Fund Group award and three individual awards
March 15, 2013 (Des Moines, Iowa) — Principal Funds received four 2013 Lipper Fund Awards based on asset class and individual fund performance, including the top award for Best Mixed-Asset Large Fund Group.
Principal Funds surpassed 39 well-known mutual fund firms to take home the top honor in the mixed-asset class large company category. The funds in this category include Principal Funds' target-date LifeTime Funds, target-risk SAM Portfolios(SAM Balanced, SAM Conservative Balanced and SAM Flexible Income) and the Principal Global Diversified Income Fund (PGDIX).
"We're honored to receive these prestigious awards, which we view as a testament to our asset allocation capabilities and ability to deliver solid, long-term performance for our shareholders," said Nora Everett, president and CEO of Principal Funds. "The awards recognize excellent work done by many people, including our asset allocation teams and those overseeing our due diligence process."
Lipper, a leading global research firm, presented the awards at a March 14 ceremony in New York City. The Lipper Fund Awards are part of the Thomson Reuters Awards for Excellence, a global family of awards that celebrate exceptional performance throughout the professional investment community.
In addition to the group award, Principal Funds won the following individual awards:
- Principal Global Real Estate Securities Fund (POSIX): best global real estate fund over the five-year period
- Principal LifeTime 2010 Fund (PTTIX): best mixed-asset target 2010 fund over the three-year period
- Principal LifeTime 2015 Fund (LTINX): best mixed-asset target 2015 fund over the three-year period
"We believe receiving this recognition for consistent, long-term performance validates our shareholder-focused investment philosophy and reflects the global investment management expertise of the Principal Financial Group®," said Everett.
For more information about the Lipper Fund Awards rankings and methodology, including rankings for the individual funds within the Lipper Mixed Asset Class-Large Company category, visit www.principalfunds.com/lipper.
About Principal LifeTime Funds:
The Principal LifeTime Funds, which are target-date funds, invest in underlying Principal Funds. Each Principal LifeTime Fund is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. As each Principal LifeTime Fund 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 asset allocation for each Principal LifeTime Fund is regularly re-adjusted within a timeframe that extends 10-15 years beyond the target date, at which point it reaches its most conservative allocation. Principal LifeTime Funds 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 Funds are guaranteed at any time, including the target date. Investment risk remains at all times.
About Lipper Methodology/Rankings for Other Time Periods:
Past performance is no guarantee of future results. Please see principal.com (Rates, Values & Performance), or call 800-222-5852 for current performance information. Principal Management Corp. was ranked No. 1 out of 40 eligible companies in Lipper's Mixed-Asset category for the three-year period ended 11/30/12. The lowest average decile rank of the three years' Consistent Return (effective return) measure of the eligible funds per asset class and group determine the asset class group award winner over the three-year period. Asset class group awards are given for the three-year period only. The funds did not win the awards for other time periods. The individual funds that made up the category may not have ranked number one in their categories. Lipper's large company universe is comprised of fund families with more than $43.5 billion in assets under management. Individual fund classification awards extend over 3, 5 and 10 years. The highest Lipper Leader for Consistent Return value within each eligible classification determines the fund classification winner over 3, 5 and 10 years. Principal Global Real Estate Securities Fund – 3 yrs: 2/92 funds; 5 yrs: 1/66 funds; 10 yrs: N/A. Principal LifeTime 2010 Fund – 3 yrs: 1/124 funds; 5 yrs: 40/106 funds; 10 yrs: N/A. Principal LifeTime 2015 Fund – 3 yrs: 1/109 funds; 5 yrs: N/A; 10 yrs: N/A.
About Principal Funds
Principal Funds is a leading provider of mutual funds, with $87.9 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 global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500®, the Principal Financial Group has $403.0 billion in assets under management and serves some 18.3 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.
Investors should carefully consider a fund's investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principalfunds.com, or calling 800-222-5852. 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.
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.
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.
Class I shares are available only to eligible investors, including various institutional investors and investors in certain mutual fund wrap or asset allocation programs. See the prospectus for eligibility requirements.
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.
- The Principal LifeTime 2060 Fund, which was incepted after the award date, was not included in the Best Mixed-Asset Large Fund Group award.
- As of December 31, 2012. Includes all share classes of the Principal Funds, Inc. and Principal Variable Contracts Funds, Inc.
- FRC Mutual Fund Lifecycle Report Q4 2012.
- "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, 2012