Principal Funds Announces Expansion of Investment Only Strategy

The IO initiative supports financial professionals with products and services from Principal Funds available through third-party administrators (TPAs), registered investment advisers (RIAs), recordkeepers and other investment and trading platforms, according to the announcement.

The Principal LifeTime Funds and Strategic Asset Management portfolios will serve as a foundation for the IO strategy, complemented by a range of investment options including a mix of asset classes, investment styles and portfolio structures, the company said. The Principal also offers a due diligence program, tools to help advisers build their business, and a multi-manager investment approach, the announcement said. 

To lead the effort, Principal Funds hired Mark Marwede as managing director of IO solutions. Marwede was most recently a senior vice president at Fidelity Investments, where he managed institutional clients, positioning sub-advised, retail and Advisor funds within pension and annuity programs. 

Principal Funds Distributor currently has agreements with more than 30 outside platforms, with plans to grow relationships significantly in coming years, according to David Reichart, second vice president of business strategy for Principal Funds.  It is targeting defined contribution IO clients, and a diverse array of other new markets and platforms. 

“With the recent addition of Principal Funds providing expanded retail fund distribution, the integration of these efforts and greater emphasis on the investment only and RIA channels is a natural extension of our strategy,” said Tim Minard, senior vice president of distribution, Retirement and Investor Services at The Principal Financial Group.

More information can be found at  www.principal.com .