Asset Allocation Portfolios from Principal Funds Hit Significant Milestones
Principal LifeTime portfolios reach 10-year anniversary, Principal SAM portfolios turn 15
Principal LifeTime Portfolios
Principal LifeTime portfolios hit the 10-year mark this year, displaying strong performance since their inception in 2001. With assets totaling more than
“We’ve certainly witnessed a variety of markets over the last decade, and the Principal LifeTime series has continually evolved,” said
To mark the anniversary, Principal Funds launched a new Principal LifeTime microsite that includes information for financial professionals and investors on:
- Asset class selection and the role of each selection in the portfolio
- Glide path structure that extends 10-15 years beyond the target date
- Portfolio construction that details the selection of established asset managers
- Disciplined rebalancing to control and manage systematic risk
- Historical timeline that illustrates how the portfolios have evolved since 2001
Principal
Principal
The five diversified, actively managed portfolios became registered mutual funds in 1996. SAM assets total more than
“Our disciplined investment process has served us well over the years as we continually seek to provide investment solutions and manage risk,” said
During the fourth quarter of 2010, the SAM portfolios were adjusted to include investments in a wider range of asset classes and underlying funds. These enhancements included a reclassification of the portfolios’ overall composition in as many as 27 distinct asset classes and of up to 14 new sub-advisors.
A new microsite for financial professionals includes an updated “SAM Yearbook,” which provides an in-depth look at the portfolios and the effects of economic and market events over the years.
In addition, a publicly available site devoted to the SAM portfolios contains:
- The portfolio management team’s outlook for the economy and financial markets
- Recent strategies implemented within the portfolios
- Allocation breakdown and performance for each of the SAM portfolios
Both Principal LifeTime and SAM are available as standalone investments or as core portfolio holdings with satellite offerings based on individual client needs.
In Barron’s latest annual ranking of top mutual fund families, Principal Funds earned No. 3 out of 57 fund families based on one-year performance and No. 7 out of 46 fund families based on 10-year performance. Principal Funds ranked third out of 57 fund families in the mixed equity (asset allocation) category, also based on one-year performance.
About the Barron’s Fund Family Ranking
Past performance is no guarantee of future results. Of fund companies that met the criteria, Principal Funds was ranked #3 out of 57 companies for one year, #33 out of 53 for five years, and #7 out of 46 for 10 years, all periods ended 12/31/2010.
To qualify for the rankings, a fund family must have at least three funds in Lipper's general U.S. stock category, one in world equity (combining global and international funds), one mixed-equity fund (stocks and bonds), at least two taxable bond funds and one tax-exempt offering. Each fund's return is measured against those of all funds in its Lipper category and assigned a percentile ranking, with 100 as the highest and 1 the lowest, which is then weighted by asset size, relative to the fund family's other assets in its general classification. The score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. The category weightings for the one-year results: general equity, 40.52%; world equity, 14.32%; mixed equity, 16.46%; taxable bond, 24.52%; tax-exempt bond, 4.18%. The same process is repeated for the five- and 10-year rankings.
About Principal LifeTime Funds
Principal LifeTime Funds invest in underlying Principal Funds and each is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. Investors choose the portfolio most closely matching their approximate retirement date. As each Principal LifeTime portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investment options and reducing exposure to typically more aggressive investment options. The portfolio continues to be managed for approximately 15 years beyond the original target date. It is expected that within 10 to 15 years after its target year, the allocation will match that of the
About Principal Funds
Principal Funds is a leading provider of mutual funds, with
About Edge Asset Management
Edge Asset Management (Edge) offers specialized expertise in managing equities, fixed income and asset allocation portfolios. Edge has been a pioneer in the field of actively managed asset allocation funds and is a leading manager of value equities and taxable fixed income securities, with
About the
The
Investors should carefully consider a fund’s investment objectives, risks, charges, and expenses prior to investing. A prospectus containing this and other information can be obtained by contacting a financial professional, visiting principalfunds.com, or by calling 800-222-5852. Read the prospectus carefully before investing.
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.
Asset allocation/diversification does not guarantee a profit or protect against a loss.
Principal Funds, Inc. is distributed by
1 As of
2
3 As of
4 FRC Mutual Fund Lifecycle Report 1Q11.
5 As of
6 FRC Mutual Fund Lifecycle Report 1Q11.
7 “The Principal Financial Group” and “The Principal” are registered service marks of
8 As of
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