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Target date strategies

Markets can be unpredictable — we provide a range of target date portfolio options that seek to withstand diverse market cycles leading up to and through retirement.

A recognized innovator, and established target date manager.

As a pioneer in the target date space—bringing one of the first target date offerings to the industry in 2001—our long-term track record of target date investing has helped deliver competitive returns for investors leading up to and through retirement.

  • Established retirement investment leader

  • Participant-informed glide path which leverages the behavioral data from millions of retirement participants

  • Advanced active asset allocation strategy representing a wide range of asset classes and investment styles in each target date vintage

  • Available vehicles: CIT, Separate Account, U.S. Mutual Fund

There are many paths to retirement

We can offer a full array of target date portfolios
ACTIVE

LifeTime strategy

Actively managed expertise seeks to drive superior outcomes
HYBRID

LifeTime Hybrid strategy

Strategically optimized portfolios gain efficiencies
PASSIVE

LifeTime Strategic Index strategy

Industry leading cost efficiencies seeks to grow retirement wealth

Our informed glidepath

Target allocations over time

Target date glidepath allocations - fixed income, real assets, U.S. and non-U.S. equity over time to and through retirement.
For illustrative purposes. As of October 2023.

Shareholders receive exposure to real assets/other category through certain underlying assets. Each vintage assumes a retirement age of 65. Target date allocations are designed to evolve as the investors' risk profiles change over time. Neither the principal nor the underlying assets of the target date allocations are guaranteed, and investment risk always remains.

The Principal LifeTime Strategic Index does not include exposure to real assets/other category.

Portfolio management

Principal Asset Allocation

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

Portfolio Manager
James Fennessey, CFA
24 years of experience
Portfolio Manager
Scott W. Smith
25 years of experience
Managing Director, Portfolio Manager
Randy Welch
39 years of experience
Learn more

Footnote

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

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Past performance does not guarantee future results.

The investment manager's investment philosophy and strategy may not perform as intended and could result in a loss or gain. Our glide path balances the probability of exceeding these thresholds with the need for capital appreciation associated with managing longevity, inflation, and savings shortfall risks. We use a risk analytics model to perform stress testing with various "market shock" scenarios to quantify the impact on the average participant experience - specifically at the retirement date, since that is typically when an investor will have the largest account balance at risk. We use this analysis to determine whether or not the market shock would materially erode the savings balance to a lower level than may have been achieved by a more conservative glide path structure.

There is no guarantee that any risk mitigation strategy will successfully protect against a loss in down markets.

Not all investment options are available in all jurisdictions. Certain vehicles have not been registered with the United States Securities and Exchange Commission under the United States Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States or to any United States person.

Target date portfolios are managed toward a particular target date, or the approximate date the investor is expected to start withdrawing money from the portfolio. As each target-date portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investments and reducing exposure to typically more aggressive investments. The asset allocation for each Principal target date portfolio is regularly re-adjusted within a time frame that extends 10-years beyond the target date, at which point it reaches its most conservative allocation. Principal target date portfolios assume the value of an investor’s account will be withdrawn gradually during retirement. Neither the principal nor the underlying assets of target date portfolios are guaranteed at any time, including the target date. Investment risk remains at all times. Neither asset allocation nor diversification can ensure a profit or protect against a loss in down markets.

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