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Investment Type: CITFund

Principal LifeTime Hybrid 2045 CIT Z

Risk and Return Statistics   as of 08/31/2026 Relative to S&P Target Date 2045 Index Stat3 Year5 Year Alpha -0.22 -0.78 Beta 0.99 1.03 R-squared 97.36 98.51 Standard Deviation 10.98 14.13 Mean 17.13 8.72 Sharpe Ratio 1.09 0.39 Excess Return -0.41 -0.73 Tracking Error 1.79 1.75 Information Ratio -0.23 -0.42 Inception Date: 07/07/2009 Risk and return statistical data is calculated by Morningstar, Inc. Excess Return is calculated by Principal Life Insurance Company.

Morningstar Star Rating™   as of 08/31/2026    What's this? Rating # Funds 3 Year 181 5 Year 172 10 Year 118 Overall 181 Morningstar Category:Target-Date 2045 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- Alpha measures the difference between an investment's actual returns and its expected performance, given its level of risk (as measured by beta). A positive alpha figure indicates that the investment has performed better than expected. In contrast, a negative alpha indicates that an investment has underperformed, given the expectations established by the investment's beta. Many investors see alpha as a measurement of the value added or subtracted by an investment's manager.

Beta- Beta is a measure of an investment's sensitivity to market movements. It measures the relationship between an investment's excess return over T-bills and the excess return of the benchmark index. By definition, the beta of the benchmark (in this case, an index) is 1.00. Accordingly, an investment with a 1.10 beta has performed 10% better than its benchmark index - after deducting the T-bill rate - than the index in up markets and 10% worse in down markets, assuming all other factors remain constant. Conversely, a beta of 0.85 indicates that the investment has performed 15% worse than the index in up markets and 15% better in down markets. A low beta does not imply that the investment has a low level of volatility, though; rather, a low beta means only that the investment's returns do not move in step with the chosen index.

R-Squared- R-squared ranges from 0 to 100 and reveals how closely an investment's returns track those of a benchmark index. An R-squared of 100 means that all movements of an investment are completely correlated with movements in the index. For example, mutual funds that invest only in S&P 500 stocks will have an R-squared very close to 100 relative to the S&P 500 index. Conversely, a low R-squared indicates that very few of the investment's movements are explained by movements in its benchmark index.

Standard Deviation- Standard deviation is a statistical measure of how much an investment's returns are likely to fluctuate. These ranges assume that an investment's returns fall in a typical bell-shaped distribution. In any case, the greater the standard deviation, the greater the volatility. When an investment has a high standard deviation, its range of performance has been very wide, indicating that there is a greater potential for volatility.

Mean- Represents the annualized total return for a fund over a certain time period; usually in 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. The Sharpe ratio is a measure developed by Nobel Laureate William Sharpe to evaluate how an investment balances risks and rewards. The higher the Sharpe ratio, the better the investment's historical risk-adjusted performance. It is calculated using standard deviation and excess return to determine reward per unit of risk. First, the average monthly return of the 90-day Treasury bill (over the defined time period) is subtracted from the investment's average monthly return. The difference in total return represents the investment's excess return beyond that of the 90-day Treasury bill, a risk-free investment. An arithmetic annualized excess return is then calculated by multiplying this monthly return by 12. To show a relationship between excess return and risk, this number is divided by the standard deviation of the investment's annualized excess returns.

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," 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.

© 2026 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. Investment and Insurance products are: * Not insured by the FDIC or Any Federal Government Agency * Not a Deposit or Other Obligation of, or Guaranteed by Credit Union or Bank * Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested Principal® charges the investment provider an annual Principal® Platform Connectivity Program (Program) fee of $1,000 for those investment option(s) with this designation. This Program fee helps to pay for a number of expenses incurred in connection with maintaining and adding investments to its platform, including but not limited to, expenses for IT systems, IT employees and required legal and compliance services. The investment provider will pay the Program fee for these investment options. Investing involves risk, including possible loss of principal. 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. For information about the applicable collective investment trust, please see related fact sheets or reach out to your plan administrator. Direct investment in the CITs is limited to participating trusts (also known as investing plan/trust) that meet certain requirements described in the declaration of trust, that enter into a participation agreement with the Trust Company. Individuals can only invest in the CITs through their eligible employer-sponsored saving plan. For Principal Lifetime Hybrid CITs, Principal Global Investors, LLC provides nondiscretionary advisory services. Insurance products and plan administrative services provided through Principal Life Insurance Company®, a member of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options and contract riders may not be available in all states or U.S. commonwealths. Additional target date portfolios may be added to the Principal LifeTime Hybrid 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. 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, fees for plan administrative services and compensation to your Financial Professional based on the amount of business they have with us including such factors as total deposits and assets, 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. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. International and global investing involves greater risks such as currency fluctuations, political/social instability, and differing accounting standards. These risks are magnified in emerging markets. The performance and risks of a fund of funds directly correspond to the performance and risks of the underlying funds in which the fund invests. It is not possible to invest directly in an index. 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 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 Adviser also manages portfolios which may be included as underlying investments in the CITs. The CITs are not mutual funds and are not registered with the Securities and Exchange Commission. The Trust Company is regulated by the State of Oregon. 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 and a copy of the participation agreement can be obtained from your plan administrator. 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. 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. There is no guarantee that a target date investment will provide adequate income at or through retirement. A target date fund's (TDF) glidepath is typically set to align with a retirement age of 65, which maybe your plan's normal retirement date (NRD). If your plan's NRD/age is different, the plan may default you to a TDF based on the plans NRD/Age. Participants may choose a TDF that does not match the plan's intended retirement date but instead aligns more to their investment risk. Compare the different TDF's to see how the mix of investments shift based on the TDF glide path. Selecting a target date fund series is also authorizing any additional vintage which is launched by the investment provider for the series, and included in their associated materials, to be added to the plan after proper notification. For investment options, returns for all time periods, except the Since Inception time frame, may include the historical performance of the oldest share class of the investment, adjusted to reflect a portion of the fees and expenses of this share class. Since Inception returns display the actual return of this share class and do not reflect the adjusted returns of the oldest share class. Please see the fund's prospectus or if CIT, the applicable fact sheet for more information on specific expenses, and the investment options most recent shareholder report for actual date of first sale. For a CIT, you may need to contact the plan sponsor or plan advisor, if applicable. Expenses are deducted from income earned by the investment option. As a result, dividends and investment results will differ for each share class. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.