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Target Date Series from The Principal

Striving to Optimize Performance with Asset Class Selection

Principal Lifetime Asset Classes
Principal Lifetime Asset Classes
Principal Trust Target Date Asset Classes

Asset class selection is the fundamental building block of our target date series. Portfolio managers start with core allocations to U.S. equities, non-U.S. equities and fixed income—focusing on the potential risk premiums and diversification benefits.

They then blend in small allocations to certain specialty asset classes—because even in small allocations, specialty asset classes that have low correlations with core asset classes may potentially improve portfolio consistency, by helping to offset weak performance by core asset classes when it occurs.

Each asset class serves a clearly defined role in the overall strategy, such as:

  • Capital appreciation
  • Income generation
  • Diversification
  • Inflation hedge
  • Capital preservation
  • Liquidity

Portfolio managers also incorporate multiple investment styles into their asset allocations, including growth/value and different market capitalizations (e.g., large, mid-size and small companies) for equities as well as varying durations and credit qualities for fixed income.

Additional Important Information

No investment strategy, such as asset allocation or diversification, can guarantee a profit or protect against loss in periods of declining values.

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, or calling 1.800.547.7754. Read the prospectus carefully before investing.

Before directing retirement funds to a separate account, investors should carefully consider the investment objectives, risks, charges and expenses of the separate account as well as their individual risk tolerance, time horizon and goals. For additional information contact us at 1.800.547.7754 or by visiting

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.

Asset allocation does not guarantee a profit or protect against a loss. 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. International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments. These risks are magnified in emerging markets.There is no guarantee that a target date investment will provide adequate income at or through retirement.


Contact Us

Our Advisor Support Team can help financial professionals put our target date series to work for your clients today, 1.800.952.3343.

Individual investors can learn more by calling 1.800.986.3343.

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