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May 02, 2022

Principal® launches fintech-enabled portfolios for advisors with 37 new model portfolios

Principal Global Investors® today announced an expanded model portfolios product offering featuring 37 new portfolios and a fintech-enabled portfolios solution to help advisors increase client customization, scale, and efficiency.

“Advisors want solutions that are simple to adopt, easy to manage, and deliver results for their clients and businesses,” said Jill Brown, managing director, U.S. Wealth Platform, of Principal Global Investors. “In combination with our fintech investment solution, our new institutional-caliber, open-architecture model portfolios integrate mutual funds, ETFs, individual equities, and even direct index options into one, unified account for advisors to help achieve desired client outcomes.”

The new model portfolios are managed by the asset allocation investment team of Principal Global Investors. They include mutual funds and ETFs from diversified asset managers and are categorized into four interchangeable, risk-based suites to help advisors expand their businesses and personalize their clients’ investment portfolios: 

  •   Two core, multi-manager portfolio suites (one with allocations to alternatives)
  •   One core ETF portfolio suite
  •   One growth and income multi-manager portfolio suite

The three core suites all seek capital appreciation. The growth and income suite will prioritize total returns.

To provide an end-to-end solution for advisors utilizing the new model portfolios, Principal collaborated with Smartleaf Asset Management (SmartleafAM) on a modern, fintech-enabled portal. This unique investment platform helps advisors meet individual client needs by customizing direct indexing options, automating tax management and trading requirements, and incorporating environmental, social, and governance (ESG) preferences.

“Our fintech-enabled portfolios can be highly automated and highly customized to help advisors unlock more of their time while still delivering a personalized investment experience for clients,” Brown said. “We were very thoughtful when creating this platform with SmartleafAM. The ability to combine multiple offerings in a holistic solution can be a differentiator for the advisor community.”

The Principal fintech-enabled portfolios integrate into the existing infrastructure and tech stacks of advisors without needing to change operational processes.

“Principal’s fintech-enabled portfolios, implemented by Smartleaf Asset Management, enable advisors to offer investors highly disciplined investment solutions, high degrees of customization, and automated tax management – while freeing the advisors to spend their time on what they do best – focusing on clients,” said Jerry Michael, president of Smartleaf Asset Management. “This is where the industry is heading, and this offering makes Principal a leader in the asset management industry.”

Principal continues to grow its suite of model portfolios and team to support it, including hiring Michael Casciano last year to lead and develop the firm's long-term strategy. Combined with the Principal Wilshire Diversified Portfolios launched in May 2021, the $579.4 billion  asset management firm now has 62 model portfolios available to advisors. 


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