Download ACCE 457b PLAN FALL MEETING

ACCE 457b PLAN
FALL MEETING
NOVEMBER 4, 2015
ACCE 457b - #617527
ACCE 457b Plan Level Data ~ 09/30/2013 to 09/30/2015
Total Number of
Plans
161
Number of Plans with
Active Contributions
*over the last 2 years
67
Page 3
ACCE 457b - #617527
ACCE 457b Plan ~ 09/30/2013 to 09/30/2015
Analysis of ACTIVE Plan Participants
131
• Total number of
Active Participants
113
• Active Participants with an
account balance
70
Page 4
• Active Participants with a
contribution over the last 2 years
ACCE 457b - #617527
ACCE 457b Plan ~ 09/30/2013 to 09/30/2015
Analysis of ACTIVE Plan Participants
Breakdown of Contributing Participants
Deferrals only = 39 participants
Match Contribution only = 12 participants
Both match & deferral contributions = 19 participants
Both Match and
Deferral
Contributions,
27%
Deferrals only,
56%
Match
Contributions
Only, 17%
Page 5
ACCE 457b - #617527
ACCE 457b Plan ~ 09/30/2013 to 09/30/2015
Analysis of TERMINATED Plan Participants
70
• Total number of
Terminated Participants
68
• Terminated Participants with an
account balance
8
Page 6
• Terminated Participants with a
contribution over the last 2 years
Portfolio Review
ACCE 457B PLAN 6-17527
Investment Review - Allocation 01/01/2015 through 09/30/2015
Inv Manager or Sub-Advisor
Beginning
Balance
Breakdown
%
Contributions
Breakdown
%
Ending
Balance
Breakdown
%
$1,245,317
7.09%
$28,074
4.37%
$1,014,031
6.31%
$2,813,630
16.03%
$45,530
7.09%
$2,438,290
15.18%
$1,686,386
9.61%
$53,672
8.36%
$1,562,388
9.73%
$1,210,036
6.89%
$33,389
5.20%
$1,066,582
6.64%
$97,887
0.56%
$8,196
1.28%
$89,697
0.56%
$612,617
3.49%
$8,871
1.38%
$469,614
2.92%
$71,498
0.41%
$4,968
0.77%
$67,210
0.42%
$705,254
4.02%
$29,175
4.54%
$675,461
4.21%
$116,365
0.66%
$5,458
0.85%
$118,846
0.74%
4
$29,110
0.17%
$656
0.10%
$7,359
0.05%
A, 3, 16
$50,263
0.29%
$4,352
0.68%
$39,896
0.25%
Investment Option
Large U.S. Equity
Large Value
Capital Research and Mgmt Co
American Funds Washington Mutual Investors R3
22
Fund
Large Blend
Principal Global Investors
LargeCap S&P 500 Index R4 Fund
Large Growth
A, 2, 6, 23
Capital Research and Mgmt Co
American Funds Growth Fund of America R3 Fund
22
Small/Mid U.S. Equity
Mid Cap Value
Columbia Management Advisors
Columbia Mid Cap Value R Fund
Mid Cap Blend
Principal Global Investors
MidCap S&P 400 Index R4 Fund
Mid Cap Growth
1, 22
A, 1, 2, 8, 23
Goldman Sachs Asset Mgt
Goldman Sachs Growth Opportunities A Fund
Small Value
1
DFA/Vaughan Nelson/LA Capital
SmallCap Value II R4 Fund
Small Blend
A, 1, 18, 19
Principal Global Investors
SmallCap S&P 600 Index R4 Fund
Small Growth
A, 1, 2, 7
Prudential Investments, LLC
Prudential Jennison Small Company R Fund
Real Estate
Neuberger Berman Mgmt. Inc.
Neuberger Berman Real Estate R3 Fund
1, 22
International Equity
Diversified Emerging Markets
Principal Global Investors
International Emerging Markets R4 Fund
Page 7
Investment Review - Allocation 01/01/2015 through 09/30/2015
Inv Manager or Sub-Advisor
Beginning
Balance
Breakdown
%
Contributions
Breakdown
%
Ending
Balance
Breakdown
%
$1,046,212
5.96%
$32,036
4.99%
$958,502
5.97%
$1,067,745
6.08%
$42,291
6.59%
$930,836
5.80%
A, 11, 15, 20, 21, 24, 25
$977,830
5.57%
$15,746
2.45%
$874,357
5.45%
A, 11, 15, 20, 21, 24, 25
$971,862
5.54%
$97,070
15.12%
$1,154,020
7.19%
A, 11, 15, 20, 21, 24, 25
$288,908
1.65%
$20,344
3.17%
$285,252
1.78%
A, 11, 15, 20, 21, 24, 25
$26,265
0.15%
$18,710
2.91%
$30,737
0.19%
A, 11, 15, 20, 21, 24, 25
$414,342
2.36%
$28,113
4.38%
$371,260
2.31%
$1,952,515
11.12%
$32,289
5.03%
$1,606,615
10.01%
$592,334
3.37%
$62,460
9.73%
$665,765
4.15%
$1,577,354
8.99%
$70,608
11.00%
$1,431,787
8.92%
$0
0.00%
$0
0.00%
$199,414
1.24%
$125
0.00%
$0
0.00%
$0
0.00%
$17,553,855
100%
$642,006
100%
$16,057,919
100%
Investment Option
Foreign Large Growth
Capital Research and Mgmt Co
American Funds EuroPacific Growth R3 Fund
3, 22
Balanced/Asset Allocation
Retirement Income
Multiple Sub-Advisors
Principal LifeTime Strategic Income R4 Fund
A, 11, 15,
20, 21, 24, 25
Target Date 2000-2010
Multiple Sub-Advisors
Principal LifeTime 2010 R4 Fund
Target Date 2016-2020
Multiple Sub-Advisors
Principal LifeTime 2020 R4 Fund
Target Date 2026-2030
Multiple Sub-Advisors
Principal LifeTime 2030 R4 Fund
Target Date 2036-2040
Multiple Sub-Advisors
Principal LifeTime 2040 R4 Fund
Target Date 2046-2050
Multiple Sub-Advisors
Principal LifeTime 2050 R4 Fund
Short-Term Fixed Income
GIC
Fixed Income Option Deferred Comp
Money Market
10, 14#
Principal Global Investors
Money Market Inst Fund
A, 5, 9, 17
Fixed Income
Intermediate-Term Bond
PIMCO
PIMCO Total Return R Fund
Preferred Stock
13, 15, 22
Spectrum
Preferred Securities R4 Fund
A, 9, 13, 15
Other
Principal Self-Directed Brokerage Account
TOTAL
*
Page 8
Portfolio Review
ACCE 457B PLAN 6-17527
Asset Class Breakdown
Beginning % As Of 01/01/2015
Contributions %
01/01/2015 - 09/30/2015
Large U.S. Equity
Small/Mid U.S. Equity
International Equity
Balanced/Asset Allocation
Short-Term Fixed Income
Fixed Income
Page 9
Ending % As Of 09/30/2015
Important Information
A
Sub-advised Investment Options include Principal Funds, Inc. mutual funds. Principal Funds, Inc is distributed by Principal Funds Distributor, Inc. Securities
are offered through Princor Financial Services Corporation, 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor®
Registered Representative are offered through Princor. Principal Funds Distributor, Princor, and Principal Life are members of the Principal Financial Group,
Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths.
A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be
more or less than the original cost.
Insurance products and plan administrative services, if applicable, are provided by Principal Life Insurance Company. Principal mutual funds are part of the
Principal Funds, Inc. series. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services
Corporation, 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor® Registered Representative are offered through
Princor. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment
options may not be available in all states or U.S. commonwealths.
Investors should carefully consider a mutual fund’s investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary
prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principal.com, or calling
1-800-547-7754. Read the prospectus carefully before investing.
Investment options are subject to investment risk. Shares or unit values will fluctuate and investments, when redeemed, may be worth more or less than their
original cost. This does not apply, however, to the guaranteed portions of group annuity contracts issued by Principal Life that constitute guaranteed benefit
policies as defined in ERISA §401(b)(2)(B).
This report includes investment options that contain information from a variety of sources. Morningstar generally provides holdings information, operations
data, and rankings or statistics proprietary to Morningstar. Morningstar is also the source of information on certain mutual funds.
(C) 2015 Morningstar, Inc. All Rights Reserved. Part of the mutual fund data contained herein: (1) is proprietary to Morningstar and/or its content providers:
(2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible
for any damages or losses arising from any use of this information.
See the Principal Funds, Inc. prospectus for the full name of each Fund.
Compliance number: t12033003s2
1. Small-cap and mid-cap investment options are subject to more fluctuation in value and may have additional risks than other investment options with stocks
of larger, more stable companies.
2. Each index based investment option is invested in the stocks or bonds of the index it tracks. Performance of indexes reflects the unmanaged results for the
market segment the selected stocks or bonds represent. There is no assurance an index based investment option will match the performance of the index tracked.
3. International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and
other economic and political environments.
4. Real Estate investment options are subject to investment and liquidity risk and other risks inherent in real estate such as those associated with general and
local economic conditions. Property values can decline due to environmental and other reasons. In addition, fluctuation in interest rates can negatively impact
the performance of real estate investment options.
5. Money Market Funds are not guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these Funds seek to
preserve the value of your investment at $1.00 per share, it is possible to lose money.
Page 10
6. S&P 500 is a trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by Principal Life Insurance Company and Principal
Management Corporation. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the product.
7. S&P SmallCap 600 is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Principal Life Insurance Company and Principal
Management Corporation. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the product.
8. S&P MidCap 400 is a trademark of The McGraw-Hill Companies, Inc. and has been licensed for use by Principal Life Insurance Company and Principal
Management Corporation. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation
regarding the advisability of investing in the product.
9. These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect a portion of the fees and expenses of this
share class. For time periods prior to inception date of the fund, predecessor performance is reflected. Please see the fund's prospectus for more information on
specific expenses, and the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result,
dividends and investment results will differ for each share class.
10. Principal Fixed Income Option is the Group Annuity Contract - Custodial Guaranteed Fund Contract available through Principal Life Insurance Company,
a member of the Principal Financial Group, Des Moines, Iowa, 50392.
11. Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options are
subject to interest rate risk, and their value will decline as interest rates rise.
12. Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and high-yield investment options
involves additional risks.
13. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment
options nor their yields are guaranteed by the U.S. government.
14. The Principal Fixed Income Option is an insurance product that provides a guaranteed crediting rate for specified periods of time. As an insurance product,
this option does not have a fixed investment management fee or expense ratio; those are concepts unique to investment products. Rather, the product provides a
guarantee that is backed by the General Account of Principal Life Insurance Company. The calculation of each guarantee includes some amount of expected
costs and expenses. While we target a certain level of expense, there are many factors that can change our actual cost of providing the guarantee. This can
include factors such as changes in the interest rate environment. While it is impossible to know the actual expense due to these factors, Principal Life Insurance
Company, as a provider of administrative services to the plan, assumes that it will receive 65 basis points (from the expense built into the Principal Fixed Income
Option) as part of the overall fee arrangement a plan pays for services from Principal Life.
15. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
16. Instances of high double-digit returns were achieved primarily during favorable market conditions and may not be sustainable over time.
17. Principal Management Corporation may voluntarily limit a certain portion of the fund's expenses collected from the Money Market Fund on a temporary
basis.
18. Effective May 1, 2009, LA Capital was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio
during the time periods displayed.
19. The manager of the Fund, Principal Management Corporation, invests between 10% and 40% of the Fund's assets in common stocks in an attempt to match
or exceed the performance of the Fund's benchmark index for performance.
20. Asset allocation and diversification do not ensure a profit or protect against a loss. Additionally there is no guarantee this investment option will provide
adequate income at or through retirement.
Page 11
21. The Investment Advisor will display "Multiple Sub-Advisors" for certain target-date, target-risk and specialty investment options where the assets are
directed by the Investment Manager to multiple underlying investment options. These underlying investment options may use multiple sub-advisors who are
responsible for the day-to-day management responsibilities.
22. For Mutual Fund Network investment options, returns for all time periods, except the Since Inception time frame, may include the historical performance of
the oldest share class of the fund, adjusted to reflect a portion of the fees and expenses of this share class. Since Inception returns display the actual return of this
share class and do not reflect the adjusted returns of the oldest share class. Please see the fund's prospectus for more information on specific expenses, and the
fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment
results will differ for each share class.
23. The risks associated with derivative investments include that the underlying security, interest rate, market index, or other financial asset will not move in the
direction the Investment Adviser and/or Sub-Advisor anticipated, the possibility that there may be no liquid secondary market, the risk that adverse price
movements in an instrument can result in a loss substantially greater than a fund's initial investment, the possibility that the counterparty may fail to perform its
obligations; and the inability to close out certain hedged positions to avoid adverse tax consequences.
24. This Principal LifeTime Fund indirectly bears its pro rata share of the management fees incurred by the underlying Principal Funds in which this fund
invests. Based on the asset allocation of the Principal LifeTime Funds outlined in the prospectus dated March 1, 2015, the weighted average operating expenses
of the underlying funds are: Principal LifeTime Strategic Income, 0.60%; Principal LifeTime 2010, 0.65%; Principal LifeTime 2015, 0.66%; Principal LifeTime
2020, 0.69%; Principal LifeTime 2025, 0.71%; Principal LifeTime 2030, 0.73%; Principal LifeTime 2035, 0.74%; Principal LifeTime 2040, 0.75%; Principal
LifeTime 2045, 0.76%; Principal LifeTime 2050, 0.76%; Principal LifeTime 2055, 0.76%; Principal LifeTime 2060, 0.78%. While the operating expenses of the
underlying mutual funds are not part of the Principal LifeTime Fund's operating expenses they are included in the Total Investment Expense. Performance
results shown for the Principal LifeTime Fund reflect the application of these expenses.
25. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.
Page 12
Glossary of Terms
Investment Advisor - May include Registered Investment Advisers as defined in the Advisers Act of 1940, Investment Advisers as defined in the Investment
Company Act of 1940, as well as a company employed by the investment option's advisor to handle the investment option's day-to-day management. In these
instances, the portfolio manager generally works for the fund's subadvisor, and not the advisor. See definition of Multiple Sub-Advisor appearing elsewhere in
this presentation for greater detail about Sub-Advisors.
Page 13
Page 14
ACCE 457(b) Plan
Contract Number : 6-17527
Retirement Plan Fee Summary
As of 06/30/2015
How the fee is allocated
Fee for ACCE 457(b)
Plan
Fee Paid By Plan Sponsor
0.00%
Fee Paid By Participants
0.00%
Total Investment Expense Net
0.93%
0.56%
1
0.93%
Total Cost
Recordkeeping Services include a robust package of Core Services and Optional Services elected.
There are no additional fees from any member company of the Principal Financial Group® for this
service package.
See Investment Options on page 2 for more details.
Current Assets: $16,954,203
Annual Deposits: $924,025
Plan Characteristics
Average Account Balance: $93,670
Current Participants with Account Balances: 115
Terminated Participants with Account Balances: 66
Principal Advantage R6 MFN
Plan Number: 6-17527
Date Generated 06/30/2015
Recordkeeping Services2
Page 15
Revenue Retained by
Investment Provider
0.37%
ACCE 457(b) Plan
Contract Number : 6-17527
Investment Options
The investment options below have fees deducted prior to calculating the published return. These fees make up the Total Investment Expense Net.
A portion of the Total Investment Expense Net may be retained by the Investment Provider as revenue to help cover the cost of providing professional investment management and
the cost of marketing the investment option. The Investment Provider may also pay a portion to the plan Recordkeeper as revenue sharing to help cover the cost of the plan’s
recordkeeping and service package. The chart below details the amount of Revenue Retained by the Investment Provider and paid to the recordkeeper for each
investment option.
Inv Manager / Sub-Advisors
Investment Option
Current Assets
Revenue
Retained by
Investment
Provider4
Capital Research and Mgmt Co
American Funds Washington Mutual Investors R3 Fund
$1,144,972
0.29%
+
0.65%
=
0.94%
Principal Global Investors
LargeCap S&P 500 Index R4 Fund
$2,686,403
0.14%
+
0.39%
=
0.53%
Capital Research and Mgmt Co
American Funds Growth Fund of America R3 Fund
$1,647,340
0.33%
+
0.65%
=
0.98%
Neuberger Berman Mgmt. Inc.
Neuberger Berman Real Estate R3 Fund
$7,022
0.71%
+
0.75%
=
1.46%
+
Revenue
Sharing to
Recordkeeper5
=
Total
Investment
Expense Net6
DFA/Vaughan Nelson/LA Capital
SmallCap Value II R4 Fund
$73,494
0.78%
+
0.65%
=
1.43%
Columbia Management Advisors
Columbia Mid Cap Value R Fund
$1,138,833
0.67%
+
0.75%
=
1.42%
Principal Global Investors
SmallCap S&P 600 Index R4 Fund
$766,913
0.17%
+
0.39%
=
0.56%
Principal Global Investors
MidCap S&P 400 Index R4 Fund
$93,933
0.15%
+
0.39%
=
0.54%
Prudential Investments, LLC
Prudential Jennison Small Company R Fund
$130,811
0.59%
+
0.75%
=
1.34%
Goldman Sachs Asset Mgt
Goldman Sachs Growth Opportunities A Fund
$564,437
0.81%
+
0.55%
=
1.36%
Principal Global Investors
International Emerging Markets R4 Fund
$68,309
0.81%
+
0.79%
=
1.60%
Capital Research and Mgmt Co
American Funds EuroPacific Growth R3 Fund
$1,110,518
0.48%
+
0.65%
=
1.13%
Franklin Advisers, Inc
Franklin Income R Fund
$118
0.28%
+
0.68%
=
0.96%
Multiple Sub-Advisors
Principal LifeTime 2020 R4 Fund
$1,266,024
0.53%
+
0.57%
=
1.10%
Multiple Sub-Advisors
Principal LifeTime 2030 R4 Fund
$292,603
0.56%
+
0.58%
=
1.14%
Multiple Sub-Advisors
Principal LifeTime 2040 R4 Fund
$38,491
0.58%
+
0.58%
=
1.16%
Multiple Sub-Advisors
Principal LifeTime Strategic Income R4 Fund
$958,739
0.47%
+
0.55%
=
1.02%
Multiple Sub-Advisors
Principal LifeTime 2010 R4 Fund
$917,661
0.50%
+
0.56%
=
1.06%
Multiple Sub-Advisors
Principal LifeTime 2050 R4 Fund
$400,259
0.58%
+
0.59%
=
1.17%
Fixed Income Option Deferred Comp
$1,477,131
0.00%
+
0.65%
=
0.65%
Principal Advantage R6 MFN
Plan Number: 6-17527
Date Generated 06/30/2015
Page 16
ACCE 457(b) Plan
Contract Number : 6-17527
Investment Options
The investment options below have fees deducted prior to calculating the published return. These fees make up the Total Investment Expense Net.
A portion of the Total Investment Expense Net may be retained by the Investment Provider as revenue to help cover the cost of providing professional investment management and
the cost of marketing the investment option. The Investment Provider may also pay a portion to the plan Recordkeeper as revenue sharing to help cover the cost of the plan’s
recordkeeping and service package. The chart below details the amount of Revenue Retained by the Investment Provider and paid to the recordkeeper for each
investment option.
Inv Manager / Sub-Advisors
Investment Option
Current Assets
Revenue
Retained by
Investment
Provider4
Principal Global Investors
Money Market Inst Fund
$624,173
0.30%
+
0.13%
=
0.43%
PIMCO
PIMCO Total Return R Fund
$1,471,877
0.45%
+
0.65%
=
1.10%
0.37%
+
0.56%
=
0.93%
+
Revenue
Sharing to
Recordkeeper5
=
Total
Investment
Expense Net6
$16,954,203
7
TOTAL EXPECTED FEES PAID THROUGH INVESTMENT OPTIONS
Principal Advantage R6 MFN
Plan Number: 6-17527
Date Generated 06/30/2015
Page 17
ACCE 457(b) Plan
Contract Number : 6-17527
Participant Transaction Fees
Participant Transaction
Fees
Distributions
$40
QualifiedDomestic RelationsOrder (QDRO)
Processing Fee (per event)
$350
The list above includes the most common participant transaction fees.
Participant transaction fees are deducted fromparticipant accounts or billed at the time the service is performed.
These fees are not subject to any guarantee.
Principal Advantage R6 MFN
Plan Number: 6-17527
Date Generated 06/30/2015
Page 18
ACCE 457(b) Plan
Contract Number : 6-17527
Important Information
This Fee Summary is based on the following information:
- This is a 457(b) plan.
- Fees may be billed, netted from rate of investment return, or deducted from participant accounts, as directed by an appropriate plan fiduciary.
- Deducted or netted fees are determined and processed monthly. Billed fees are processed quarterly.
- Up to 32 investment options may be used. Additional investments may incur a fee.
- An individually designed (custom) plan document will be used. Applicable fees for your custom plan draft and any future changes to your plan document will be billed directly to you
at the time the service is performed. If summary plan description (SPD) services are provided, applicable fees for SPD draft, future changes and/or printing will be billed at the time
the SPD's are mailed.
- Deposit Year End Date: 12/31/2015
- The First Deposit Year begins on the stated effective date and ends on the Deposit Year End Date. Subsequent Deposit Years end on the 12-month
anniversary of the Deposit Year End Date.
- State of Delivery: Virginia
- This Fee Summary must be presented by an individual licensed in the applicable State of Delivery. Individual may also need to be a Registered
Representative, if registered securities are involved.
- This Fee Summary is for illustrative purposes only and does not create, affect or alter any past, present or future agreement or understanding.
- This Fee Summary Principal Life Insurance Company (Principal Life), a member company of The Principal, is submitting for your consideration is
based on information concerning your plan submitted to The Principal by your representative. This Fee Summary reflects specific rate level / share
class(s) that you and your representative decided upon. You should consider whether the rate level/share class(s) illustrated is most appropriate for you.
- Capitalized terms not defined in this Fee Summary have the same meaning assigned to them under other applicable agreements or contracts.
Principal Advantage R6 MFN
Plan Number: 6-17527
Date Generated 06/30/2015
Page 19
ACCE 457(b) Plan
Contract Number : 6-17527
Footnotes
1 Total Cost reflects the sum of the Total Investment Expense Net and Fees Paid by Plan Sponsor and/or participants, and is based on the investment options illustrated and chosen service package. It
does not include such items as float, slippage/breakage, certain optional services, participant transaction fees or other qualified plan expenses that may be incurred from other service providers. Fees
include Principal Trust Company Directed Trust Services or Custodial Services, if applicable.
2 The fee allocated to Recordkeeping Services is the sum of the Fee Paid by Plan Sponsor and/or Participants and Revenue Sharing to Recordkeeper less the fee for your Financial Professional.
4 Affiliates of Principal Life may receive fees as the Investment Provider and/or the Investment Sub-Advisor for certain investment options. These fees are reflected in this column. The term Investment
Provider refers to the providers (i.e. manufacturers) of the investment options we make available to employer-sponsored retirement and savings plans. The Investment Provider may or may not be the
same entity as the Investment Manager or Sub-Advisor. Please see prospectus for the Investment Provider for mutual fund investment options. Principal Life is the Investment Provider for all Separate
Accounts and pays fees for sub-advisory services to the Investment Manager or Sub-Advisor. When affiliates of Principal Life are both Investment Provider and Recordkeeper, amounts in this column
and the Revenue Sharing to Recordkeeper column are determined based on internal allocation assumptions.
5 These are amounts Principal Life as Recordkeeper or an affiliate expects to receive in connection with the services provided to your plan. In the case of mutual funds, these amounts, which include
12b-1 fees, are paid from the mutual funds, including mutual funds provided by an affiliate of Principal Life. Any 12b-1 fees are paid to Princor Financial Services Corporation an affiliate of Principal Life.
For investment options other than Separate Accounts, these amounts are paid pursuant to contracts between the investment options and Principal Life or its affiliates for services Principal Life or its
affiliates provide to retirement plans on behalf of the investment options. In the case of Separate Accounts, these are amounts that are retained by Principal Life, the Investment Provider of the Separate
Accounts, and are allocated to recordkeeping based on internal allocation assumptions. The amounts received or retained are taken into consideration in setting the price for the investment and service
package and do not offset our fees on a dollar-for-dollar basis. For plans that have not entered into a service agreement with Principal Life to provide recordkeeping services, these amounts are for
additional administrative and/or reporting services.
6 Total Investment Expense Net is the gross total investment expense less any fee waivers, reimbursement, caps, or reduction of expenses for the investment option, as well as any operating
expenses. These are the expenses, as a percentage of net assets, actually borne by the investment option, including interest expense.
7 Total expected fees paid through investment options are an estimate based on the expected amount for each investment option as shown in the table. Fees actually paid through investment options
will depend on the investment options chosen for the plan and the value of plan assets directed to those investment options.
Principal Advantage R6 MFN
Plan Number: 6-17527
Date Generated 06/30/2015
Page 20
ACCE 457(b) Plan
Contract Number : 6-17527
Disclosures
Investors should carefully consider mutual fund's investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary prospectus if available containing this and other
information can be obtained by contacting a financial professional, visiting principal.com, or calling 1-800-547-7754. Read the prospectus carefully before investing.
A mutual fund’s share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options are subject to interest rate risk, and their value will decline as
interest rates rise.
Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and high-yield investment options involves additional risks.
Specialty investment options may experience greater volatility than funds with a broader investment strategy due to sector focus. These investment options are not intended to serve as a complete investment program
by itself.
Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S.
government.
International investing involves increased risks due to currency fluctuations, political or social instability, and differences in accounting standards. REIT securities are subject to risk factors associated with the real
estate industry and tax factors of REIT registration.
The Principal Money Market Separate Account is not guaranteed by the Federal Deposit Insurance Corporation (FDIC), or any other government agency. Although the Principal Money Market Separate Account seeks
to preserve the value of an investment it is possible to lose money by investing in this portfolio.
Each index based investment option is invested in the stocks of the index it tracks. Performance of indices reflects the unmanaged result for the market segment the selected stocks represent. There is no assurance
an index based investment option will match the performance of the index tracked. Investors cannot invest directly in an index.
The Investment Manager or Sub-Advisor will display "Multiple Sub-Advisors" for certain target-date, target-risk and specialty investment options where the assets are directed by the Investment Manager to multiple
underlying investment options. These underlying investment options may use multiple sub-advisors who are responsible for the day-to-day management responsibilities.
Principal Trust CompanySM is a trade name of Delaware Charter Guarantee & Trust Company, a member company of the Principal Financial Group.
Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal mutual funds are part of the Principal Funds, Inc. series. Principal Funds, Inc. is distributed by Principal
Funds Distributor, Inc. Securities sold or services offered by a Princor® Registered Representative are offered through Princor Financial Services Corp, 800-547-7754, member SIPC and/or independent
brokers/dealers. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S.
commonwealths.
§ The Principal Fixed Income Option is an insurance product that provides a guaranteed crediting rate for specified periods of time. As an insurance product, this option does not have a fixed investment management
fee or expense ratio; those are concepts unique to investment products. Rather, the product provides a guarantee that is backed by the General Account of Principal Life Insurance Company. The calculation of each
guarantee includes some amount of expected costs and expenses. While we target a certain level of expense, there are many factors that can change our actual cost of providing the guarantee. This can include
factors such as changes in the interest rate environment. While it is impossible to know the actual expense due to these factors, Principal Life Insurance Company, as a provider of administrative services to the plan,
assumes that it will receive 65 basis points (from the expense built into the Principal Fixed Income Option) as part of the overall fee arrangement a plan pays for services from Principal Life.
Principal Self-Directed Brokerage Account Option has been included as an investment option. Any Expense reimbursements provided uner mutual funds purchased through Principal Self-Directed Brokerage Account
are kept by the broker-dealer.
Principal Advantage R6 MFN
Plan Number: 6-17527
Date Generated 06/30/2015
Page 21