Request URL:
Investment Type: CITFund

Principal LifeTime Hybrid 2040 CIT R3

Quick Facts

Target-Date 2040

Investment Strategy

   What's this?
The investment option seeks a total return consisting of long-term growth of capital and current income consistent with the investment strategy of an investor who expects to retire in the year identified in each respective CIT's name. To pursue its goal, this Target Date CIT generally invests in other open-ended mutual funds, insurance company separate accounts and collective trust funds that PGI Trust Company considers appropriate based on the remaining time horizon of a particular CIT and the expected risk tolerance of those investors associated with that time horizon. Over time, Principal Global Investors Trust Company intends to gradually shift the asset allocation targets of each CIT (other than the Principal LifeTime Hybrid Income CIT) to accommodate investors progressing from asset accumulation years to income generation years. It is expected that within 15 years after its target year, a CIT's underlying fund allocation will match that of the Principal LifeTime Hybrid Income CIT.

Morningstar Style Box™

  as of 02/28/2017
What's this?
Investment Style
Stylebox Market Capitalization
Investment Style
Stylebox Market Capitalization

Overall Morningstar Star Rating™

  as of 03/31/2017
What's this?

Out of 181 Target-Date 2040 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

Investment results shown represent historical performance and do not guarantee future results. Investment returns and principal values fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Current performance may be lower or higher than the performance data shown.

In situations where the net and gross total investment expense figures are different, the collective investment trust or the underlying investment options in which a collective investment trust invests have waived/caped a portion of its management fee through the date displayed in the waiver expiration date or contractual cap expiration date column. Differences may also be shown due to the fund family choosing to pay certain expenses that would normally be payable by the fund. Returns displayed are based on net total investment expense.

Principal Lifetime Hybrid Collective Investment Funds (CITs) 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 Lifetime Hybrid CITs 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 Hybrid CITs 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 Hybrid CITs 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 Hybrid CITs are guaranteed at any time, including the target date. Investment risk remains at all times.

Month-End | Quarter-End
Average Annual Total Returns as of 03/31/2017
1 Month3 MonthYTD1 Year3 Year5 Year10 YearSince     
Total Return % 0.56 4.96 4.96 11.99 5.48 8.50 --- 11.53
S&P Target Date 2040 Index % 0.81 5.07 5.07 13.27 5.94 8.86 5.24 ---
Target-Date 2040 Category % 0.76 5.57 5.57 13.47 5.14 7.96 4.43 ---
Morningstar Percentile Rankings** --- --- --- 87 42 38 --- ---
# of Funds in Category 252 249 249 225 181 147 79 ---
**Morningstar percentile rankings are based on total returns.


  as of 03/31/2017
Total Investment Expense - Gross: 1.16%
Total Investment Expense - Net: 1.16%
Total Investment Expense Gross Per $1,000 Invested: $11.60

Growth of $10,000

   What's this?

Flash Player is required We've recently updated our site to use Adobe Flash Player 9.0.115 or higher. To use this application you need to install the Adobe Flash Player plug-in for your browser using the link below.

Get Adobe Flash player

Inv Manager or Sub-Advisor

   What's this?
Principal Management Corp

Portfolio Advisor Managers

   What's this?
James W. Fennessey , CFA
Since 07/07/2009
B.S. , Truman State University

Randy L. Welch
Since 07/07/2009
M.B.A. , Drake University

Jeffrey R. Tyler , CFA
Since 04/01/2012
Master , Northwestern University

2017 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 LifeTime Hybrid 2040 CIT R3.

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.

S&P Target Date 2040 Index provides varying levels of exposure to equities and fixed income. Each target date allocation is created and retired according to a pre-determined schedule related to the respective target date.

The CITs are available only to certain qualified retirement plans and governmental 457(b) plans. The CITs are not mutual funds and are not registered with the Securities and Exchange Commission, the State of Oregon, or any other regulatory body. Units of the CITs 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 CITs 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 CITs 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.

International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.

For the Principal Lifetime Hybrid Collective Investment Funds (CITS), Total Investment Expense Net equals the sum of these expenses: (a) the amount of money, expressed as a percentage, deducted for the cost of managing the collective investment trust, and where applicable, plus (b) if the collective investment trust invests in an underlying mutual fund, separate account, or collective investment trust, the total investment operating expenses of the underlying investment option, as listed in the most recent prospectus if applicable.

The Principal LifeTime Hybrid Collective Investment Funds (CITs) are collective investment trusts 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 CITs, subject to the Trust Company's 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 Adviser also manages portfolios which may be included as underlying investments in the CITs. The Adviser receives management fees from these portfolios. The Adviser or other affiliates of the Trust Company may provide services to the CITs and may receive fees for such services. The CITs are available only to certain qualified retirement plans and governmental 457(b) plans.

Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.

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.

Effective January 1, 2017, the trustee for the Principal LifeTime Hybrid Collective Investment Funds changed from Principal Trust Company to Principal Global Investors Trust Company. Principal Trust Target Date Collective Investment Funds were renamed the Principal LifeTime Hybrid Collective Investment Funds (CITs).

Asset allocation and diversification do not ensure a profit or protect against a loss. Additionally there is no guarantee this investment option will provide adequate income at or through retirement.

This Principal LifeTime Hybrid CIT indirectly bears its pro rata share of the Total Investment Expense incurred by the underlying investment options in which this fund invests. Based on the asset allocation of the Principal LifeTime Hybrid CITs as of March 31, 2017, the weighted average operating expenses of the underlying investment options are: Principal LifeTime Hybrid Income, 0.32%; Principal LifeTime Hybrid 2010, 0.33%; Principal LifeTime Hybrid 2015, 0.31%; Principal LifeTime Hybrid 2020, 0.31%; Principal LifeTime Hybrid 2025, 0.30%; Principal LifeTime Hybrid 2030, 0.31%; Principal LifeTime Hybrid 2035, 0.31%; Principal LifeTime Hybrid 2040, 0.31%; Principal LifeTime Hybrid 2045, 0.32%; Principal LifeTime Hybrid 2050, 0.32%; Principal LifeTime Hybrid 2055, 0.32%; Principal LifeTime Hybrid 2060, 0.34%. This fund may invest in underlying mutual funds. For more information on the underlying funds and their expenses, see the prospectus for those funds.

The Investment Advisor will display "Multiple Sub-Advisors" for certain target-date, target-risk and specialty investment options where the assets are directed by the Investment Manager to multiple underlying investment options. These underlying investment options may use multiple sub-advisors who are responsible for the day-to-day management responsibilities.