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Principal Funds: New Research on Asset Consolidation Highlights Opportunities for Investors, Financial Professionals

June 6, 2013 (Des Moines) — Approximately 5.7 million affluent households in the United States rely on more than one financial professional to manage their investible assets[1]. Principal Funds partnered with Cogent Research to uncover the reasons why investors are using multiple financial professionals and how they might benefit by consolidating their assets with a sole or primary financial professional.

A new white paper, titled "Maximizing Value through Asset Consolidation," highlights the reasons to consider asset consolidation for both investors and financial professionals. It also provides suggestions for financial professionals guiding clients through the transition.

"The research shows nearly 30 percent of those using multiple financial professionals didn't intend to do so in the first place," said Kevin Morris, Principal Funds marketing director. "By selecting a primary financial professional, investors can trade their fragmented approach for a more holistic view of their investment goals, concerns and areas of interest."

According to the study, only one-third of investors agree they are receiving better financial advice by using multiple financial professionals. Further, investors working with a single financial professional report:

  • Higher overall satisfaction with their financial professional
  • Higher confidence in their financial professional's capabilities
  • Increased likelihood to recommend their financial professional to others

And of those who have consolidated their assets, 61 percent agree it's easier to monitor their overall investment performance. Additionally, a majority of investors state they are more satisfied with their financial situations after consolidating (55 percent) and report they are able to lower their investment fees/expenses (54 percent).

"These findings clearly support the opportunity for financial professionals to proactively discuss asset consolidation with their clients," Morris said.

The white paper is available for download at www.principalfunds.com/consolidateassets. For more news and insights from The Principal, connect with us on Twitter at http://twitter.com/ThePrincipal.

About Principal Funds

Principal Funds is a leading provider of mutual funds, with $96.2 billion in assets under management.[2] 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.[3] 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 ®)[4] 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 $456.1 billion in assets under management[5] 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.

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.

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[1]
Cogent Research, May 2013. Affluent households are defined as having at least $100,000 in total investable assets including all cash, savings, mutual funds, stocks, bonds, retirement accounts (such as IRAs, 401(k)s, 403(b)s, etc.) and all other types of investments (excluding real estate).
[2]
As of March 31, 2013. Includes all share classes of the Principal Funds, Inc. and Principal Variable Contracts Funds, Inc.
[3]
FRC Mutual Fund Lifecycle Report Q4 2012.
[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 March 31, 2013.

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