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Principal Strategic Asset Management (SAM) Portfolios


Why Now?

Two significant bear markets over the past ten years (2000-2009) have reminded us that risk management is a critical component of investing.

Risk Management Resonates

Behavioral finance tells us that many clients react more strongly to portfolio losses than to portfolio gains. Market volatility and uncertain economic environments mean you're working harder than ever to help clients maintain focus and get back on track to meet their long-term goals. In periods of uncertainty, options that focus first on risk management and in-depth diversification help to ease the investor experience.

Revisiting Traditional Asset Allocation

Simply investing in traditional, core asset classes may not provide the diversification benefits needed in today's markets. Adding alternative asset classes can help combat complex portfolio risks and provide additional diversification and return benefits in multiple economic environments.

Alternative asset classes may include, among others:

  • Master limited partnerships (MLPs), commodities, natural resources, and;
  • High-yield bonds, preferred securities, global real estate, and emerging markets

While adding alternative asset classes to traditional portfolios provides many benefits, they can be complex and difficult to implement individually into portfolios, costing you valuable time and effort that may be better spent managing relationships and building your business.

The SAM Portfolios are an option that can help clients participate in both beta-driven market rallies and potentially benefit from the alpha of active management, while effectively managing risk.

Global Investment Management, Asset Allocation Expertise, Retirement Leadership

To obtain a prospectus, download online or call The Principal® at 1.800.986.3343

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. For more information about our funds, including their full names, please see the Principal Funds, Inc. prospectus or call The Principal® at 1.800.986.3343.

A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.

Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Lower-rated securities are subject to additional credit and default risks. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. or any other government entity. Risks associated with preferred securities differ from risks inherent with other investments. In particular, in the event of bankruptcy, a company's preferred securities are senior to common stock but subordinated to all other types of corporate debt.

Investments concentrated in natural resources industries can be affected significantly by events relating to those industries, such as variations in the commodities markets, weather, disease, embargoes, international, political, and economic developments, the success of exploration projects, tax and other government regulations, and other factors. An MLP that invests in a particular industry (e.g., oil and gas) may be harmed by detrimental economic events within that industry. As partnerships, MLPs may be subject to less regulation (and less protection for investors) under state laws than corporations. In addition, MLPs may be subject to state taxation in certain jurisdictions, which may reduce the amount of income paid by an MLP to its investors. Investing in derivatives entails specific risks relating to liquidity, leverage, and credit that may reduce returns and/or increase volatility. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration.

International investing involves increased risks due to currency fluctuations, political or social instability, and differences in accounting standards. These risks are magnified in emerging markets.

Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc., member of the Principal Financial Group®. Principal Funds Distributor, Principal Shareholder Services, Principal Management Corporation and its affiliates, and Principal Funds, Inc. are collectively referred to as Principal Funds.

Not FDIC or NCUA/NCUSIF insured - May lose value - No bank guarantee - Not a deposit - Not insured by any federal government agency


Strategy for Today

Use a step-by-step approach to help clients maintain focus and get on track to meet long-term goals:

  • Determine client risk tolerance
  • Choose appropriate portfolio

Get Started Today

Call 800.986.3343 for asset allocation assistance.


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