Strategy differentiators

  • Strategically allocates among real return and real asset securities, beyond TIPS, 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.

Strategy facts

  • 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

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.

PM Title
Portfolio Manager
Name
Jessica Bush, CFA
21 years of experience
PM Title
Portfolio Manager
Name
Ben Rotenberg, CFA, CAIA
29 years of experience
PM Title
Managing Director, Portfolio Manager
Name
May Tong, CFA
21 years of experience
Learn more

Get the latest insights.

Asset allocation

The case for Principal Diversified Real Asset Fund

Find out how a real asset strategy designed to improve investment outcomes may do so by increasing portfolio diversification, enhancing return potential, and mitigating risk.

Global outlook

Global Asset Allocation Viewpoints, 4Q 2022

The implication of higher rates for longer, the opposite environment to the one that had benefitted risk assets over the past decade, will tighten financial conditions and continue to be a large overhang for risk assets.

Inflation
9 min

Inflation, rising rates, and market volatility

Inflation is the single biggest challenge that investors face today. The sudden and sustained jump in prices has inflicted a considerable shock to the economic system, sharply pushing up interest rates, while challenging corporations and equity markets. For individuals, inflation quietly erodes the purchasing power of savings and cash, a significant problem, regardless of time horizon. For institutional investors, higher-than-expected inflation reduces real returns and makes it difficult to generate long-term forecasts to meet objectives.

Expert
Seema Shah
Chief Global Strategist

Effective January 1, 2022, the Diversified Real Asset Index (Linked) blend is 15% Bloomberg U.S. Treasury TIPS Index, 30% S&P Global Infrastructure Index, 15% S&P Global Natural Resources Index, 15% Bloomberg Commodity Index, and 25% FTSE EPRA/NAREIT Developed Markets Index. Prior to January 1, 2022, the blend consisted of 35% Bloomberg U.S. Treasury TIPS Index, 20% S&P Global Infrastructure Index, 20% S&P Global Natural Resources Index, 15% Bloomberg Commodity Index, and 10% FTSE EPRA/NAREIT Developed Markets Index.

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.