Multiple Managers in a Disciplined Framework
The investment firms shown represent a sampling of the sub-advisors to the Principal LifeTime portfolios.
In constructing the Principal LifeTime portfolios, we employ a fund-of-funds approach using different combinations of underlying funds, managed by asset managers with some of the most established track records in the industry.
Our proprietary selection process is rigorous and disciplined, focusing on money management firms that have successfully run actively managed portfolios within specific asset classes and investment styles.
The sub-advisors of investment options considered for inclusion in the Principal LifeTime portfolios must also have a history of strong performance over different periods and at different times than other managers we select. This can help minimize overall portfolio volatility and preserve desirable return characteristics. Once selected, each manager is given a clear performance mandate and is subject to ongoing monitoring based on quantitative and qualitative factors, including:
- the consistency of their investment process
- timely communication with our due diligence team
- performance on a quarterly basis and over a multi-year time horizon.