Our investment approach

Backed by decades of experience and unique market insight, we aim to design and deliver solutions to meet the needs of both institutional and individual investors across the globe.
  • An innovative approach to developing, modeling, and rebalancing customized portfolio solutions to meet dynamic asset allocation needs.

  • Cross-asset solutions backed by our full capabilities and insights gathered through our global investment platform.

  • Access to proprietary tools and data to help you build better portfolios and outcome-based retirement strategies.

  • A multi-manager approach that provides optimal diversification across asset class, sector, geography, style, manager philosophy, and process.

Explore our featured asset allocation strategies.

To help ensure you have access to innovative solutions, we’ve identified these strategies for a variety of portfolios.
Diversified Real Asset
Aiming to protect purchasing power with dynamic real asset exposure, a balanced risk profile, and a potentially more consistent outcome.
Principal target date strategies
Balancing both active and passive, our target date strategies are designed to help participants get to (and through) a rewarding retirement.
Principal fintech-enabled portfolios
Integrating seamlessly into existing processes and tech stacks, our end-to-end fintech powered solution makes building custom portfolios easy.

Our commitment to ESG

When it comes to environmental, social, and governance (ESG) investing, we empower investors by offering choice, confidence, and flexibility.

ESG awareness is built into every step of the asset allocation process — comparing sub-advisors, disciplines, and asset classes. At a high-level, we strive to understand the ESG implications of emphasizing certain asset classes to achieve a desired investment outcome.

  • Our ESG integration is primarily qualitative in nature and attempts to capture the intentions of our sub-advisors in adhering to an ESG discipline.

  • We prefer our sub-advisors are signatories to the United Nations Principles for Responsible Investment (UNPRI) to ensure we are engaging with investment partners that share our belief that ESG issues may impact the performance of investment portfolios.

  • As part of our quarterly sub-advisor due diligence monitoring, we evaluate adherence to ESG policy and flag any deviations that could result in placement on the Quantitative Watch List.

Get our latest thoughts on the market.

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.

Macro views
14 min

Investing during high inflation

The Fed was caught behind the curve, and will need aggressive hikes to slow demand, and thus, inflation.

Experts
Todd Jablonski, CFA
Chief Investment Officer & Head of Asset Allocation
Seema Shah
Chief Global Strategist
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

Past performance does not guarantee future results.

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

ESG integration is considered across all actively managed asset classes, with the approach determined by each investment group’s process. This information is specific to the strategies managed by the individuals providing this content and various investment teams across Principal may have differing views of this approach.

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