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.
Providing diversified exposure to publicly listed real assets.
Source: Graphic is for illustrative purposes only and reflects the views of the management team. Gross Domestic Product (GDP): comprehensive measure of U.S. economic activity; measures the value of the final goods and services produced in the U.S. without double counting the intermediate goods and services used up to produce them. Consumer Price Index (CPI): measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
Enhance diversification through modest correlation and little overlap with a traditional balanced portfolio.
Increase total return potential because valuations may be more attractive compared to stocks across market cycles.
Protect purchasing power in environments when inflation is above trend.
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
Commodities
Natural resources
Global real estate investment trusts
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.
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.
