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Asset allocation options help simplify investing

At The Principal, we want to help you achieve your financial goals. That's why we offer asset allocation choices that help investors choose their investment mix.

These include target-date investment options — Principal LifeTime Portfolios — and target-risk investment options — Principal Strategic Asset Management (SAM) Portfolios[1]. Both investment options are fund-of-funds investments — mutual funds that invest in other mutual funds. This gives investors access to many well-recognized managers within one fund for greater diversification.

Principal LifeTime Portfolios

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 Principal LifeTime portfolios assume the value of the investor's account will be withdrawn gradually during retirement.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.

SAM Portfolios

These investment options target different risk tolerance levels. You choose the option that most closely matches your risk tolerance and investing goals, and the individual funds within that portfolio are actively managed and monitored for you.

Important anniversaries

We're excited that both of these investment options achieved key milestones this year. Principal LifeTime Portfolios hit the 10-year mark, and Principal SAM Portfolios turned 15. These anniversaries are important because they help demonstrate the investments' solid, long-term performance through different market cycles.

Learn more about Principal LifeTime Portfolios and Principal Strategic Asset Management Portfolios.

 

[1]
Principal LifeTime Portfolios and Principal SAM Portfolios may not be available in your employer's retirement plan.

For important information regarding the glide path used with the Principal LifeTime Funds, please refer to the prospectus.

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. Please write or call for a prospectus. Please 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.

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