Multiple Retirement Plans: Investment Services
An integrated retirement plan not only helps ensure your retirement plans are working together to support your goals, but it also helps employees understand and appreciate all of the retirement benefits you offer. We will work together with your financial professional to help you customize an investment platform to meet your integrated retirement plan needs.
The member companies of The Principal Financial Group® make available extensive choice and flexibility for you to select appropriate investment options for your retirement plan and provide you with resources to help you fulfill your investment fiduciary obligations. We do this through:
- Breadth of investment options: providing you extensive choice and flexibility
- Rigorous process: due diligence forms the foundation
- Depth of capabilities: investment fiduciary support and services 
- Asset allocation expertise: helping to meet your plan participants' needs
You can select from our Sub-Advised Investment Options — investment options created by us* — that are designed specifically for retirement savings under employer-sponsored plans. They cover a wide range of asset classes and are managed by some of the industry's leading investment firms. The focus is on long-term growth for retirement, paying special attention to the amount of risk taken for the potential returns.
* Principal Separate Accounts are made available by Principal Life Insurance Company; Sub-Advised Mutual Funds are made available by Principal Funds, Inc.
Through the collaboration of various member companies of the Principal Financial Group®, our comprehensive due diligence process:
- Screens and selects premier investment managers whose areas of specialty complement our investment objectives.
- Delivers an attractive mix of more than 70 Sub-Advised Investment Options managed by more than 40 investment managers, all of whom are vetted by the due diligence process.
- Selects and retains managers that make retirement-focused investment decisions.
For even more investment options, the Mutual Fund Network is available — a vast menu of investment choices featuring more than 3,100 mutual funds from 180 fund families.
The combined offering of Sub-Advised Investment Options plus Mutual Fund Network gives financial professionals and plan sponsors the choice, flexibility and asset management expertise to help meet the retirement needs of the participants they serve.
You face fiduciary responsibilities in developing and monitoring an investment lineup appropriate for the diverse needs of retirement plan participants. We understand your needs. The rigorous due diligence process performed through the collaboration of various member companies of the Principal Financial Group® is a direct response to this challenge.
Through the due diligence process, a select group of investment managers are identified, hired, and monitored for the Sub-Advised Investment Options. The due diligence process provides you with a level of indemnification on Sub-Advised Investment Options.
With education from your financial professional and your third party administrator, you can choose a level of indemnification protection against three key areas of fiduciary concern:
- Broad Range Requirement under ERISA 404(c)
- Qualified Default Investment Alternative (QDIA)
- Prudent process for selection and monitoring
While the due diligence process provides the foundation of the prudent selection and monitoring coverage from Principal Life, we make available additional investment fiduciary support and services. Let the range of investment fiduciary support and services we make available help you feel more confident and in-control when selecting investment options for your retirement plan's lineup.
To help you meet the diverse needs of your retirement plan participants, we make available a wide range of asset allocation choices. Our asset allocation flexibility gives your plan participants:
- Access to broadly-diversified investment options
- The ability to streamline their investment decision-making process
Providing resources for you and your financial professional
To help you understand and prepare to manage your fiduciary obligations, we provide a number of resources and tools:
- A sample investment policy statement to help you establish written investment goals and guidelines for your retirement program
- Investment bulletins, notices and updates from our investment fiduciary support and services
- Investment option fact sheets and profiles with data provided by Morningstar®
We provide a number of additional resources specific to our Sub-Advised Investment Options, including portfolio holdings, quarterly summaries and commentary, manager profiles and the due diligence quarterly review.
About Principal LifeTime portfolios:
The Principal LifeTime portfolios, which are target date portfolios, invest in underlying Principal Funds. Each Principal LifeTime portfolio is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. 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 asset allocation for each Principal LifeTime portfolio is regularly re-adjusted within a time frame that extends 10-15 years beyond the target date, at which point it reaches its most conservative allocation. 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 portfolios are guaranteed at any time, including the target date. Investment risk remains at all times.
About Principal TrustSM Target Date Funds:
Principal Trust Target Date Funds may invest in various types of investments including underlying Principal Funds and each is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. As each Principal Trust Target Date 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 Trust Target Date Fund is regularly re-adjusted within a time frame that extends 10-15 years beyond the target date, at which point it reaches its most conservative allocation. Principal Trust Target Date 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 Trust Target Date Funds are guaranteed at any time, including the target date. Investment risk remains at all times.
Contact a local representative today for more information or to find a financial professional in your area.
- This is for informational purposes only and does not affect those terms and provisions of the investment fiduciary support and services document(s). For comprehensive details on investment fiduciary support and services, see the applicable Investment Fiduciary Support & Services Terms & Conditions document(s).
- The due diligence process and reporting are services provided by Principal Life Insurance Company, a member of the Principal Financial Group®.
- As of December 31, 2012
- Sub-Advised Investment Options include the Principal Stable Value Fund, Principal Funds, the Principal TrustSM Target Date Collective Investment Funds and the Principal Life Separate Accounts available through a group annuity contract with Principal Life Insurance Company, Des Moines, IA 50392. Principal Financial Advisors, Inc. is a registered investment adviser and member company of the Principal Financial Group®.
- While the protection of ERISA §404(c) does not apply to plans that are exempt from certain ERISA provisions under ERISA §401(a), this broad range requirement coverage applies to such defined contribution plans that are intended and designed to meet the terms of this coverage. This coverage does not apply to defined benefit plans.
Investors should carefully consider a mutual 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 principal.com, or calling 1.800.547.7754. Read the prospectus carefully before investing.
Before directing retirement funds to a separate account, investors should carefully consider the investment objectives, risks, charges and expenses of the separate account as well as their individual risk tolerance, time horizon and goals. For additional information contact us at 1.800.547.7754 or by visiting principal.com.
The investment fiduciary support and services apply to covered plan investment options that are part of a Qualified Retirement Plan recordkept by Principal Life. 404(c) and QDIA coverage applies only to plans subject to ERISA. No member company of The Principal assumes any additional fiduciary responsibility for any nonqualified deferred compensation plan. No part of the investment fiduciary support and services applies to nonqualified deferred compensation plans subject to 409(A), 457(f) or 457(b) plans for employers under Â§457(e)(1)(B). For purposes of plans not subject to ERISA, Principal Life indemnifies, where applicable, the Plan Representative who signs the Service Agreement.
Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their original cost.
Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and high-yield investment options involves additional risks. Additionally there is no guarantee this type of investment option will provide adequate income at or through retirement.
Each portfolio is weighted to reflect a targeted level of risk. Over time, the weights are adjusted based on predetermined formulas to reduce the level of potential risk as the portfolio's maturity date approaches.
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise.
Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
No investment strategy, such as diversification, can guarantee a profit or protect against loss in periods of declining values.
Principal Life is not a fiduciary in the broader context of operating any plan. The selection of any investment options on behalf of a plan is the fiduciary responsibility of the appropriate plan fiduciary, which is not Principal Life, nor any affiliate. Principal Life does not guarantee performance of any investment option [other than the portion of a group annuity contract that constitutes a guaranteed benefit policy as described in ERISA §401(b)(2)]. Principal Life does not guarantee that any investment option will meet the criteria of any particular plan's investment policy statement, include reasonable fees, or otherwise be suitable for use by any specific plan. The fiduciary tasks undertaken by Principal Life do not eliminate all responsibilities of the relevant plan fiduciaries for the prudent selection of any investment option for a retirement plan. Plan fiduciaries remain subject to a varying amount of ongoing responsibility, depending on the structure of the plan the fiduciary serves and the nature of the plan fiduciary's position. Please consult with your counsel or other adviser as to the responsibility of a plan fiduciary with regard to the selection or retention of any plan investment option by a plan fiduciary.
Additional Information about Principal Trust Target Date Funds
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.
PMC also manages portfolios of Principal Funds, Inc., ("Principal Funds") a series mutual fund, which may be included as underlying investments in the Principal Trust Target Date Funds. PMC receives management fees from Principal Funds. The Principal Trust Target Date Funds may also include group annuity separate accounts ("Separate Accounts") managed by Principal Life Insurance Company ("Principal Life"), an affiliate of Principal Trust. Principal Life receives management fees from the Separate Accounts. PMC, Principal Life, or other affiliates of Principal Trust may provide services with respect to Principal Funds or Separate Accounts and may receive fees for such services. The due diligence process of Principal Life Insurance Company, through its rigorous framework for sub-advisor selection and monitoring, provides assistance to the Investment Advisors of the Separate Accounts and Principal Funds selected for the Principal TrustSM Target Date series.
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.
The value of the Principal Trust Target Date Funds will fluctuate so that when redeemed, shares or units may be worth more or less than the original cost. Past performance is no guarantee of future results.
Participation in the Principal Trust Target Date Funds is governed by the terms of the Trust and a Participation Agreement, which is signed by the retirement plan's fiduciary at the time the plan invests in the Principal Trust Target Date Funds. The retirement plan's fiduciary is also provided with a Principal Funds, Inc. Institutional Class Shares Prospectus ("Prospectus") before the plan invests in the Principal Trust Target Date Funds. The Trust and Prospectus are available from Principal Trust or Principal Life by visiting us at principal.com. A copy of the Participation Agreement can be obtained from your plan administrator.
The Trust, Participation Agreement, and the Prospectus contain important information about Trust fees and investment objectives, risks, and expenses of the underlying investments in the Principal Trust Target Date Funds and should be read carefully before investing.
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, 1.800.547.7754, 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. Separate Accounts are made available through a group annuity contract with Principal Life, Des Moines, IA 50392. They may not be available in all states or U.S. commonwealths. Ask your representative for more details.
Past performance is no guarantee of future results.