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Investment Type: CITFund

Diversified Real Asset CIT-Tier 1

Quick Facts

World Allocation

Investment Strategy

   What's this?
The investment seeks a long-term total return in excess of inflation.The fund allocates its assets among the following general investment categories: inflation-indexed bonds, securities of real estate companies, commodity futures, fixed-income securities, securities of natural resource companies, master limited partnerships (MLPs), publicly-listed infrastructure companies, and floating rate debt. It concentrates its investments (invests more than 25% of its net assets) in securities in the real estate and energy/natural resources industries.

Morningstar Style Box™

  as of 01/31/2019
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Investment Style
Stylebox Market Capitalization

Overall Morningstar Star Rating™

  as of 02/28/2019
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Out of 389 World Allocation Funds


Morningstar's Star Ratings reflect risk adjusted performance and are derived from a weighted average of the performance figures associated with its three, five, and ten-year (if applicable) time periods.

Total Returns

Month-End | Quarter-End
Average Annual Total Returns as of 02/28/2019
1 Month3 MonthYTD1 Year3 Year5 Year10 YearSince     
Total Return % 0.66 2.69 7.12 0.66 6.35 0.19 --- 1.15
Diversified Real Asset Strategic Index % 0.87 3.69 6.96 1.65 7.16 1.14 --- ---
World Allocation Category % 1.23 2.55 6.76 -1.42 7.52 2.88 8.85 ---
Morningstar Percentile Rankings** --- --- --- 22 78 93 --- ---
# of Funds in Category 506 500 505 466 389 321 161 ---
**Morningstar percentile rankings are based on total returns.


  as of 02/28/2019
Total Investment Expense - Gross: 0.74%
Total Investment Expense - Net: 0.74%
Total Investment Expense Gross Per $1,000 Invested: $7.40

Inv Manager or Sub-Advisor

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BlackRock Financial Mgmt, Inc.

Credit Suisse

Principal Real Estate Inv

Tortoise Capital Advisors, LLC

Symphony Asset Management LLC

BNP Paribus Asset Management



Boston Company

Principal Global Investors

RARE Infrastructure Limited

Portfolio Managers

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Kelly A. Grossman
Since 05/29/2013
B.A. , University of Northern Iowa

Benjamin E. Rotenberg , CFA , CAIA
Since 03/07/2014
B.A. , Pomona College

Marcus W. Dummer , CAIA
Since 03/07/2014
M.B.A. , University of Utah

Jessica S. Bush , CFA
Since 03/07/2014
B.A. , University of Michigan

Jake S. Anonson , CFA
Since 03/07/2014
M.B.A. , Iowa State University

2019 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.

Returns shown for periods of less than one year are not annualized.

The full name of this investment option is Principal Diversified Real Asset CIT-Tier 1.

Not FDIC Insured
May Lose Value - Not a Deposit - No Bank Guarantee
Not Insured by any Federal Government Agency

Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions.  The cumulative effect of fees and expenses can substantially reduce the growth of a participant's or beneficiary's retirement account.  Participants and beneficiaries can visit the Employee Benefit Security Administration's website for an example demonstrating the long-term effect of fees and expenses.

Diversified Real Asset Strategic Index is composed of 35% Bloomberg Barclays U.S. Treasury TIPS Index, 20% S&P Global Infrastructure Index, 20% S&P Global Natural Resources Index, 15% Bloomberg Commodity Index, and 10% FTSE EPRA/NAREIT Developed Markets Index.

Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. or any other government entity. Concentrating investments in natural resources industries can be affected significantly by events relating to those industries, such as variations in the commodities markets, weather, disease, embargoes, international, political and economic developments, the success of exploration projects, tax and other government regulations and other factors. Investment in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration. An MLP that invests in a particular industry (e.g., oil and gas) may be harmed by detrimental economic events within that industry. As partnerships, MLPs may be subject to less regulation (and less protection for investors) under state laws than corporations. In addition, MLPs may be subject to state taxation in certain jurisdictions, which may reduce the amount of income paid by an MLP to its investors.

Effective January 1, 2017, the trustee for the Principal Diversified Real Asset CIT changed from Principal Trust Company to Principal Global Investors Trust Company.

The Principal Diversified Real Asset Collective Investment Fund (CIT) is a collective investment trust maintained by Principal Global Investors Trust Company, (the Trust Company). The Trust Company has retained Principal Global Investors LLC (the Adviser), to serve as investment adviser with respect to the CIT, subject to the Trust Companys supervision and review. The Adviser is an indirect wholly owned subsidiary of Principal Financial Group, Inc., and is under common control with the Trust Company. The CIT is available only to certain qualified retirement plans and governmental 457(b) plans.

The risks associated with derivative investments include that the underlying security, interest rate, market index, or other financial asset will not move in the direction the Investment Adviser and/or Sub-Advisor anticipated, the possibility that there may be no liquid secondary market, the risk that adverse price movements in an instrument can result in a loss substantially greater than a fund's initial investment, the possibility that the counterparty may fail to perform its obligations; and the inability to close out certain hedged positions to avoid adverse tax consequences.

The CIT is not a mutual fund and is not registered with the Securities and Exchange Commission, the State of Oregon, or any other regulatory body. Units of the CIT are not deposits or obligations of, guaranteed by, or insured by the Trust Company or any affiliate, and are not insured by the FDIC or any other federal or state government agency. The value of the CIT will fluctuate so that when redeemed, units may be worth more or less than the original cost. The declaration of trust, participation agreement, and disclosure documents contain important information about investment objectives, risks, fees and expenses associated with investment in the CIT and should be read carefully before investing. The declaration of trust is available at A copy of the participation agreement can be obtained from your plan administrator.