Financial Professionals Annuities overview Protect Client Investments with a Buffer Annuity

Protect Client Investments with a Buffer Annuity

What if you could help protect clients from some market losses with no hard cap on gains?

It’s possible.

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When we designed the PVC U.S. LargeCap Buffer Series, we kept everything you might like about defined outcome products and added features with the customer in mind. We’re offering 10% downside protection and 10% full participation in market growth. But we didn’t stop there.

Unlike similar products, we’re offering:

  • No hard cap on market participation – after the first 10% of gains clients benefit from ongoing partial participation.
  • 1-year defined outcome periods – clients won’t be locked into long-term account commitments. Automatic rollover occurs if no changes are requested.
  • Underlying funds that include dividends – improving the overall strength of the account.

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How limiting losses can help my clients

Protecting clients from the first 10% of losses can have a big impact.
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How intra-segment investing works

Your clients can move money at any time—here’s what happens.

The PVC U.S. LargeCap Buffer series
consists of four different
investments accounts.

The buffer series is not available in New York and may not be available with all broker dealers.

Learn more

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U.S. LargeCap Buffer Series

Quick facts

  • 1-year defined outcome duration
  • Large Cap Blend
  • Tracks the S&P 500 Price Return Index

PGI Global Systematic Solutions

  • Specialize in passive and ETF investing
  • Access to advanced research and development team

Portfolio managers

  • Jeff Schwarte, CFA®
    28 years of experience with Principal
  • Aaron Siebel, CFA®
    16 years of experience with Principal

Before investing, carefully consider the investment option objectives, risks, charges, and expenses. Contact a financial professional or visit principal.com for a prospectus or, if available, a summary prospectus containing this and other information. Please read carefully before investing.

Dividends are not guaranteed.

The buffer funds have characteristics unlike many other traditional investment products and may not be suitable for all investors. These strategies could limit the upside participation of the buffer fund in rising equity markets relative to other funds. The buffer provides limited protection in the event of a market downturn; the buffer fund does not provide principal protection, and an investment may experience significant losses on its investment, including the loss of its entire investment. The buffer Fund may invest in FLEX Options, which are associated with additional risks. Due to the cost of the options used by the Fund, the correlation of the Fund's performance to that of the Index is expected to be less than if the Fund invested directly in the Index without using options and could be substantially less.

Buffer and participation rates apply if investment is held from the beginning of the outcome period until the end of the outcome period. Investments can happen at any time during the outcome period; but results will vary. The buffer and participation rate will reset annually. Index returns do not reflect any fees, expenses, or sales charges.

There is no guarantee the investment options will be successful in achieving these outcomes for any outcome period. Returns may only be realized if investors hold the investment options from the beginning to the last day of the outcome period. Those who invest after the outcome period has begun, or sell prior to the end of the outcome period, will experience different returns than if the investment had been held for the full one-year segment. For current rates please visit principal.com/buffer.

The potential return an investor can receive is subject to the upside cap and the partial participation beyond the cap. If the index grows beyond the cap, the investor will not experience the full gains. The investor will receive a percentage of any gains beyond the cap. This amount, net of fees and expenses, is the maximum return an investor can achieve over its outcome period.

Annuity products and services are offered through Principal Life Insurance Company. Principal Variable Contracts Funds are distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., member SIPC, and/or independent broker/dealers. Principal Life, Principal Funds Distributor, and Principal Securities are members of the Principal Financial Group®, Des Moines, Iowa 50392, principal.com.