Aiming to protect purchasing power with dynamic real asset exposure, a balanced risk profile, and a potentially more consistent outcome.
Strategically allocates among real assets, beyond commodities, and REITs.
Blends multiple strategies to help mitigate undesired risk; designed to offer real return with lower-than-market volatility.
Specialist managers within each asset class seek to exploit opportunities and deliver a more consistent real asset outcome. We seek to deliver a consistent real asset outcome Providing diversified exposure to publicly listed real assets.
Enhance diversification through modest correlation and little overlap with a traditional balanced portfolio.
Help protect purchasing power in environments when inflation is above trend.
Increase total return potential because valuations may be more attractive compared to stocks across market cycles.
Public real assets are listed securities whose underlying value is tied to tangible assets that provide essential services or resources to the global economy. Real assets are goods and services people rely on in everyday life such as food, real estate, and energy. The value of real assets tends to rise as the cost of living goes up because they’re tied to the economy and consumer needs. Investing in a variety of real assets within your portfolio may help you fight the effects of inflation.
Global infrastructure
The building of railways, streets, power stations, and municipal services. Cash flows into global infrastructure investments are commonly linked to measures of economic growth and inflation.
Commodities
Raw materials that can be bought and sold, like coffee or cotton. As the prices of commodities rise, a direct investment in commodities would also be expected to increase. Prices tend to move with inflation, providing investors with a hedge as inflation increases.
Natural resources
Are closely linked to commodities, like oil or timber. Natural resource stocks with operations directly linked to a specific commodity may benefit from the higher cost of that commodity.
Global real estate investment trusts
Companies that own and collect rents from commercial and office buildings. Rents tend to be tied to local inflation levels, providing investors with a hedge as inflation increases.
Manager
Principal Asset Allocation
Inception
1 April 2010
Index
Diversified Real Asset Index (Linked)
Targeted number of issuers
n/a
Expected turnover
n/a
Investment vehicles
CIT, U.S. Mutual Fund
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.
No information
Effective January 1, 2026, the Diversified Real Asset Index (Linked) blend is 35% S&P Global Infrastructure Index NTR, 25% FTSE EPRA/NAREIT Developed Index NTR, 20% S&P Global Natural Resources Index NTR, and 20% Bloomberg Commodity Index; January 1, 2022 to December 31, 2025, 30% S&P Global Infrastructure Index NTR, 25% FTSE EPRA/NAREIT Developed Index NTR, 15% Bloomberg U.S. Treasury TIPS Index NTR, 15% Bloomberg Commodity Index, and 15% S&P Global Natural Resources Index NTR; prior to January 1, 2022, 35% Bloomberg U.S. Treasury TIPS Index, 20% S&P Global Infrastructure Index NTR, 20% S&P Global Natural Resources Index NTR, 15% Bloomberg Commodity Index, and 10% FTSE EPRA/NAREIT Developed Index NTR.
Past performance does not guarantee future results.
Investing involves risk, including possible loss of principal.
Asset allocation and diversification do not ensure a profit or protect against a loss.
There is no guarantee that any risk mitigation strategy will be successful 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.
Principal Asset Allocation is an investment team within Principal Global Investors.