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Investment Type: CITFund

Diversified Real Asset CIT Tier 2







Quick Facts


05/30/2013
Conservative Allocation
$1,175.49

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 06/30/2015
What's this?
Investment Style
Stylebox Market Capitalization
Investment Style
Stylebox Market Capitalization

Overall Morningstar Star Rating™

 
What's this?

Out of Funds

Star Rating Not Rated

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 08/31/2015
1 Month3 MonthYTD1 Year3 Year5 Year10 YearSince     
Inception*
Total Return % -3.24 -7.33 -6.63 -12.90 --- --- --- -0.62
Diversified Real Asset Blended Index % --- --- --- --- --- --- --- ---
Conservative Allocation Category % --- --- --- --- --- --- --- ---
Morningstar Percentile Rankings** --- --- --- --- --- --- --- ---
# of Funds in Category --- --- --- --- --- --- --- ---
05/30/2013
**Morningstar percentile rankings are based on total returns.


Expenses

  as of 08/31/2015
Total Investment Expense - Gross: 0.64%
Total Investment Expense - Net: 0.64%
Total Investment Expense Gross Per $1,000 Invested: $6.40



Growth of $10,000

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Inv Manager or Sub-Advisor

   What's this?
BlackRock Financial Mgmt, Inc.

Credit Suisse

Jennison Associates, LLC

Principal Real Estate Inv

Tortoise Capital Advisors, LLC

Brookfield Investment Mgmt Inc

Symphony Asset Management LLC

Fischer Francis Trees & Watts

Macquarie

Pictet



Portfolio Managers

   What's this?
Kelly A. Grossman
Since 05/29/2013
B.A. , University of Northern Iowa

James W. Fennessey , CFA
Since 03/07/2014
B.S. , Truman State University

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

Marcus W. Dummer
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






Morningstar
© 2015 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 Diversified Real Asset CIT Tier 2.

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 Blended Index is composed of 40% Barclays U.S. Treasury TIPS Index, 40% MSCI All Country World Index, and 20% Bloomberg Commodity Index.

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.

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.

Delaware Charter Guarantee & Trust Company, conducting business as Principal TrustSM Company ("Principal Trust") is a member of the Principal Financial Group®. Principal Trust maintains various Collective Investment Funds, as trustee, under certain plan and declaration of trust documents, which may be amended from time to time. Principal Trust has discretion over the investment of the Collective Investment Funds. Principal Management Corporation ("PMC"), an affiliate of Principal Trust, provides nondiscretionary advisory services to Principal Trust with respect to the Collective Investment Funds. Principal Trust and PMC are fiduciaries subject to the Employee Retirement Income Security Act of 1974, as amended.

The Collective Investment Funds offered and maintained by Principal Trust 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. The Collective Investment Funds are not guaranteed by Principal Trust, PMC, any of their affiliates, the FDIC or any other governmental agency.

The Diversified Real Asset CIT is operated by Principal Trust Company, which has claimed an exclusion from the definition of the term "commodity pool operator" under the Commodity Exchange Act (the "Act") and, therefore, is not subject to registration or regulation as a pool operator under the Act.

The value of the Collective Investment Funds offered by Principal Trust 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 Collective Investment Funds offered by Principal Trust is governed by the terms of the applicable Trust and a Participation Agreement, which is signed by the retirement plan's fiduciary at the time the plan invests in the Collective Investment Funds. The Trust is 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 and Participation Agreement contain important information about Trust fees and investment objectives, risks, and expenses of the underlying investments in the Collective Investment Funds managed by Principal Trust and should be read carefully before investing.

Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options (inclusive of U.S. Treasury Inflation-Protected Securities) 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. Floating rate debt instruments are subject to credit risk, interest rate risk, and impaired collateral risk, which means that the value of the collateral used to secure a loan held by the Fund could decline over the course of the loan. Credit risk refers to an issuer's ability to make interest and principal payments when due. Investments concentrated 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. Investing 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. Global infrastructure companies may be subject to a variety of factors that may adversely affect their business, including high interest costs, high leverage, regulation costs, economic slowdown, surplus capacity, increased competition, lack of fuel availability, and energy conversation policies. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Commodity-Related Investment Risk: The value of commodities investments will generally be affected by overall market movements and factors specific to a particular industry or commodity, which may include weather, embargoes, tariffs, and economic health, political, international regulatory and other developments. Exposure to the commodities markets may subject the fund to greater volatility than investments in traditional securities. Commodity Index-Linked Notes Risk: The value of commodities may be affected by overall market movements and other factors affecting the value of a particular industry or commodity. These notes expose the fund to movements in commodity prices. They are also subject to credit, counterparty, and interest rate risk. Commodity index-linked notes are often leveraged. At the maturity of the note, the fund may receive more or less principal than it originally invested. The fund may also receive interest payments on the note that are less than the stated coupon interest payments.

Asset allocation and diversification do not ensure a profit or protect against a loss.

Insurance products and plan administrative services are provided by Principal Life, Des Moines, IA 50392.