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Investment Type: pif

Principal LifeTime Hybrid 2040 Inst Fund (PLTQX)







Risk and Return Statistics

  as of 08/31/2020
Relative to S&P Target Date 2040 Index

Stat3 Year5 Year
Alpha 0.34 0.39
Beta 0.98 0.98
R-squared 99.49 99.43
Standard Deviation 14.42 12.17
Mean 8.23 9.39
Sharpe Ratio 0.51 0.70
Excess Return 0.27 0.31
Tracking Error 1.05 0.94
Information Ratio 0.26 0.33
Inception Date: 09/30/2014

Risk and return statistical data is calculated by Morningstar, Inc. Excess Return is calculated by Principal Life Insurance Company.

Morningstar Star Rating™

  as of 08/31/2020
   What's this?

Rating# Funds
3 Year StarRating 207
5 Year StarRating 165
Overall StarRating 207

Target-Date 2040

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.


Alpha- The difference between an investment's actual returns and its expected performance, given its level of risk (as measured by beta).

Beta- An investment's sensitivity to market movements.

R-Squared- Ranges from 0 to 100 and reveals how closely an investment's returns track those of a benchmark index.

Standard Deviation- Measures how much an investment's returns are likely to fluctuate.

Mean- Represents the annualized total return for a fund over 3 years.

Sharpe Ratio- Measures how an investment balances risks and rewards. The higher the Sharpe ratio, the better the investment's historical risk-adjusted performance.

Excess Return- The difference between an investment option's return and the return of an external standard such as a passive index.

Tracking Error- Also known as "excess risk", is defined as the standard deviation or volatility of excess returns.

Information Ratio- A risk-adjusted measure commonly used to evaluate an active manager's involvement skill. It's defined as the manager's excess return divided by the variability or standard deviation of the excess return.




Morningstar
© 2020 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.

Past performance is no guarantee of future results. 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.

Insurance products and plan administrative services, if applicable, are provided by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Principal Securities Registered Representative are offered through Principal Securities. Principal Funds Distributor, Principal Securities and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths.

The full name of this investment option is Principal Funds, Inc. - Principal LifeTime Hybrid 2040 Inst Fund.

Investors should carefully consider a mutual fund's investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principal.com, or calling 1-800-547-7754. Read the prospectus carefully before investing.

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

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.

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

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.

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.

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.

This Principal LifeTime Hybrid Fund indirectly bears its pro rata share of the management fees incurred by the underlying Principal Funds in which this fund invests. Based on the asset allocation of the Principal LifeTime Hybrid Funds outlined in the prospectus dated March 1, 2020, the weighted average operating expenses of the underlying funds are: Principal LifeTime Hybrid Income, 0.32%; Principal LifeTime Hybrid 2015, 0.33%; Principal LifeTime Hybrid 2020, 0.33%; Principal LifeTime Hybrid 2025, 0.33%; Principal LifeTime Hybrid 2030, 0.34%; Principal LifeTime Hybrid 2035, 0.35%; Principal LifeTime Hybrid 2040, 0.36%; Principal LifeTime Hybrid 2045, 0.37%; Principal LifeTime Hybrid 2050, 0.37%; Principal LifeTime Hybrid 2055, 0.38%; Principal LifeTime Hybrid 2060, 0.38%; Principal LifeTime Hybrid 2065, 0.41%. While the operating expenses of the underlying mutual funds are not part of the Principal LifeTime Hybrid Fund's operating expenses they are included in the Total Investment Expense. Performance results shown for the Principal LifeTime Hybrid Fund reflect the application of these expenses.

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

Additional target date portfolios may be added to the Principal LifeTime portfolios series to accommodate plan participants with later normal retirement dates as they enter the workforce. Participants may also choose a portfolio with a target date that does not match the intended retirement date. Compare the different portfolios to see how the mix of investments might shift.