Global Allocation

Real Asset

Built to make investing in institutional-caliber, private real assets accessible.

Real Asset strategy differentiators

  • Actively managed multi-strategy and multi-manager real assets portfolio. Provides access to more than 1,500 private real asset investments and over 130 public real asset securities.

  • Investment team with a 10+ year track record of success managing real asset strategies. 

  • Opportunity to capitalize on valuation opportunities across the private/public real asset spectrum.

Designed to offer an efficient portfolio that focuses on the return drivers of real assets—yield and capital appreciation.

We strategically construct our portfolio to generate both income and long-term capital appreciation.

Principal Asset Management Real Asset portfolio composition by risk and return

Shown for illustration purposes only. The chart is conceptual and reflects general assumptions used in portfolio construction. Not based on specific performance data.

Why private real assets

  • For investors seeking to mitigate drawdown risk and volatility, while reaching their return goals, private real assets could be a compelling investment option because of their diversification benefits.

  • Private real assets help mitigate inflation because their values tend to rise with increasing prices, allowing investors to maintain or potentially increase their purchasing power over time.

  • Private infrastructure, private natural resources, and private real estate exposure in a diversified portfolio may provide enhanced risk-adjusted returns.

Strategy facts

  • Manager

    Principal Asset Allocation

  • Inception

    25 June 2019

  • Investment Vehicle

    Interval Fund

Portfolio management

Principal Asset Allocation

Asset allocation views that are grounded in industry insights inform our portfolio construction process. Our team seeks to deliver competitive performance, tailored to your desired outcomes for risk, return, and income potential.

Managing Director, Portfolio Manager
May Tong, CFA
22 years of experience
Portfolio Manager
Jessica Bush, CFA
22 years of experience
Portfolio Manager
Ben Rotenberg, CFA, CAIA
30 years of experience
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Past performance does not guarantee future results.

Asset allocation and diversification do not ensure a profit or protect against a loss.

Real estate investment options, such as real estate investment trusts (REITs) and commercial mortgage-backed securities (CMBS), are subject to risks associated with credit, liquidity, interest rate fluctuation, adverse general and local economic conditions, and decreases in real estate values and occupancy rates. Investments in companies involved in agriculture, infrastructure, natural resources and energy can be significantly affected by government policies, regulations, interest costs, surplus capacity, weather conditions, and natural disasters. Investing in derivatives entails specific risks relating to liquidity, leverage, and credit, which may reduce returns and/or increase volatility. The use of leverage increases investment exposure and has the potential to magnify losses. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Risk is magnified in emerging markets, which may lack established legal, political, business or social structures to support securities markets. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. Floating rate debt instruments are subject to credit risk, interest-rate risk, and impaired collateral risk, which means that the value of the collateral used to secure a loan held by the portfolio could decline over the course of the loan. Lower-rated securities are subject to additional credit and default risks.

Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of the portfolio’s private investments may differ significantly from the values that would have been used had a readily available market value existed and may differ materially from the amounts the portfolio may realize on any disposition of such investments.

This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Principal Asset Allocation is an investment manager within Principal Global Investors.