Principal LifeTime Portfolios
Managing Diversification over a Lifetime of Investing
When it comes to saving for retirement, diversification can be critical. But many investors find it a challenge to properly diversify. You can help take some of the pressure off with an asset allocation choice from the member companies of the Principal Financial Group®—Principal LifeTime portfolios.
We were among the first to make available a target-date mutual fund series and we're currently the largest mutual fund provider of active multi-managed target-date choices and the fourth largest provider of target-date lifecycle funds in the United States. Highly diversified, Principal LifeTime portfolios are made available as a single investment option and based on a targeted retirement date.
Launched in March 2001, Principal LifeTime portfolios have a history of delivering solid long-term performance. Since inception, the six original Principal LifeTime Funds (I-class shares) have ranked in the top two Morningstar quartiles 80% of the time on a calendar-year basis (48 of 60 periods).
Sub-advised by a variety of money management firms, the Principal LifeTime portfolios are invested in a range of core and specialty asset classes and systematically rebalanced by our team of portfolio managers.
Learn how the Principal LifeTime portfolios can help with lifelong investing:
- Asset Class Selection
- Glide Path Structure
- Portfolio Construction
- Disciplined Rebalancing
- Historical Timeline
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 Principal LifeTime portfolios assume the value of the investor's account will be withdrawn gradually during retirement.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.
- Based on the data from Financial Research Corporation Lifecycle Fund Analytic Report, 1st Quarter 2011. "Active multi-managed target-date choices" describes the underlying assets.
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 1.800.547.7754. Please 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.
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. Additionally, there is no guarantee these investment options will provide adequate income at or through retirement.
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 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.
The Morningstar percentile ranking is a fund's total-return percentile ranking within its respective Morningstar Category. The highest most favorable percentile ranking is 1%, and the least favorable percentile ranking is 100%. Data based only on the performance of the Principal Lifetime Funds Institutional share class.
© 2011 Morningstar, Inc., All rights reserved. Part of the mutual fund data contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.
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.
Past performance is no guarantee of future results.