New Fund on the Principal Buffet
The option is part of the Principal Investors Fund, a mutual fund series launched earlier this year as an investment vehicle for Principal Advantage, a package of services aimed at the employer-sponsored retirement plan market.
The Principal Investors Capital Preservation Fund allocates 80% of its assets to high grade fixed income securities of short to intermediate term maturities. The remaining 20% is invested in cash, cash equivalents, and wrap contracts, which aim to maintain a stable value per share.
One of the advantages of the new fund is that investors can roll their 401(k) or 403(b) plan investment into the identical fund in an IRA. Termination of employment or retirement need not affect investment strategy.
There are now 44 investment choices available to retirement plan customers through the Principal Advantage program, which targets employers with $3 million or more in retirement funds.
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