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RetireView
®
An asset allocation service that
gives you flexibility and control
For plan sponsor use only. Not for distribution to plan participants.
Retirement plan participants are a lot of things (think of a wide range of
professions here), but only a relative few are investment professionals. And
participants want to focus on what they do, but let someone else handle
the details of investing for retirement. And they’re upfront about that.1
Professional asset allocation can help diversify a participants’ savings — otherwise,
a participant has to choose which asset classes to use and how much to invest in
each. The average person doesn’t typically have the expertise.
That’s just one reason why we have such a diverse range of asset allocation
choices. For those who want to offer professional asset allocation with more
personal control, there’s RetireView.
RetireView
This service allows you to develop an asset allocation alternative with the
investments already on your plan’s lineup — and it’s available at no additional fee.
It’s designed to help meet the needs of plan participants who want help investing
for retirement while maintaining some control over the amount of risk they take.
While most asset allocation investments take only years-to-retirement into
consideration, our RetireView service also factors in risk tolerance. It helps
educate participants on their personal tolerance for risk (through a quiz) and
then offers choices of asset allocation models. Each is designed to align with
their risk tolerance as well as years-to-retirement. This can give participants
Only 25%
of participants
research and make
their own investing
decisions. Everyone
else either feels
unqualified or wants
some form of help.1
a choice that’s more in tune with their individual goals.
Plan sponsor benefits
Participant benefits
Choice — The ability for you to select
investment options for RetireView asset
allocation models.
Professional diversification — Twenty
asset allocation models to choose from –
all professionally designed and percentages
maintained by a third party. Models
are populated by the plan sponsor with
investments already on the plan.
Outside expertise — An independent
third-party creates the asset allocation
models and provides periodic updates
to allocation percentages based on the
economy and markets.
Flexibility — Gives you choices when
mapping from a closing investment or
transitioning your plan services to Principal.2
1
Personalization — The ability to personalize
RetireView with preference for frequency
of rebalancing and an automatic age
adjustment (aging) feature.
Automatic aging — If a participant selects
aging, an adjustment is made to their
allocation so it becomes more conservative
as they approach retirement.
Cerulli Associates, Evolution of the Retirement Investor, June, 2015
In order to be in the RetireView service and have the rebalancing and/or the automatic age adjustment feature benefits,
all or a portion of the participants’ investment elections must be mapped according to a RetireView model.
2
Asset allocation/diversification does not guarantee a profit or protect against a loss.
1
For plan sponsor use only. Not for distribution to plan participants.
How does it work?
Morningstar Investment Management LLC (Morningstar®) develops the RetireView asset allocation models.
These take into account:
• Participant risk tolerance, with a range from conservative to aggressive
• Years-to-retirement with four age bands
• Nine asset classes
The asset allocation models are designed to provide options for participants in a wide range of situations — from
those just starting to save to those nearing retirement.
From the plan’s lineup, the plan sponsor populates the models by selecting up to four investment options to fill
each of the asset classes used in RetireView (but a limit of 24 investment options used in RetireView in total). If
more than one investment option is chosen for an asset class, the plan sponsor can set the percentage split of
each within that asset class.
RetireView asset classes
Each asset class has a role to fill in constructing a plan for retirement. One might be intended to offset
volatility risk and another to offset inflation risk. Think of them as the different “baskets” referenced
in the saying, “don’t put all your eggs in one basket.”
Short-Term Fixed Income is generally comprised of investments that are easily traded and are designed
to not lose much value. Options may include stable value, money market, short-term bond and guaranteed interest
accounts. These are considered to be among the least risky forms of investment options. However, they typically
have a lower rate of return than equities or longer-term fixed income investment options over long periods of time.
Depending on the objectives of the investment options, they may experience price fluctuations and may lose value.
Fixed Income is generally comprised of investment options that invest in bonds, or debt of a company or
government entity (including U.S. and non-U.S.). These investments typically carry more risk than short-term fixed
income investment options but less overall risk than equities. All investment options in this category have the
potential to lose value.
Large U.S. Value, Blend and Growth are generally comprised of investment options that invest in
stocks, or shares of ownership in large, well-established U.S. companies. These typically carry more risk than fixed
income investments but have the potential for higher returns over longer time periods. They may be an appropriate
choice for long-term investors who are seeking the potential for growth. All investment options in this category
have the potential to lose value.
Small/Mid U.S. Value, Blend and Growth generally invest in stocks, or shares of ownership in small- to
medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment
options but have the potential for higher returns. They may be an appropriate choice for long-term investors who are
seeking the potential for growth. All investment options in this category have the potential to lose value.
International Equity is comprised of investment options that invest in stocks, or shares of ownership in
companies with their principal place of business outside the United States. These investment options often carry
more risk than U.S. equity investment options but may have higher returns. They may be an appropriate choice
for long-term investors who are seeking the potential for growth. All investment options in this category have the
potential to lose value.
Asset allocation/diversification does not guarantee a profit or protect against a loss.
For plan sponsor use only. Not for distribution to plan participants.
2
Years to retirement
16+ years
11-15 years
6-10 years
Years
Years to
to retirement
retirement
Years to retirement
Years
to retirement
Years
toto
retirement
3% 3%
Years
Years
to
retirement
retirement
3%
3%
2%
2%
2%
2%
3%
16+
11-153%years
years
6-10 years
years
2%
16+ years
years
11-15
6-10
3%
16+
years
11-15
years
6-10
years
3%
16+
years
11-15
years
6-10
years
16+
years
11-15
years
6-10
years
16+
16+
years
years
11-15
11-15
years
years 4%
6-10
6-10
years
years
4% 4%
Risk profiles
Conservative
0-5 years
3% 2% 1%
2%
0-5
0-5 years
years 2%
0-5 years
years
0-5 years0-5
0-5
0-5 years
years
2% 1%
3%
3% 3%
4% 4%
3%
3% 2%
3% 2% 1%
2%
3% 3%
3% 3%
4% 4% 2%
2%
2%
3%
2%2%
2%
2% 1%
3%
3%
4%
2%
2%
3%
3%
3%
3%
4%
3% 3% 2%
1% 2%
4% 4% 2%2%
3% 3% 2%
2%
3% 3%
2%
2%2%
3% 2%
2%3%3%
3% 3%
1% 1%
3%
4% 4%
2%2%
2%
1%
2% 3% 3%
3%
4%4%
2%
3%
3%
3%
2%
3%
3%
4%
3%
2%
3%
46%
47%
48%
52%
2% 2%
2%
2%
2%
2% 2%
Risk
2%
3%3%
2% 2%
2%3%
2%
2%
2%
2%
2%
4%
Risk profiles
profiles
3%
2% 2%
3%
3% 3%
2%
3%
3%
3%
4%
2% 2%
3%
2% 2%
36%
38%
38%
Risk
2%
3%
2%
Risk profiles
profiles
3%
3%
4%
3%
3%
3% 3%
4%
3%
5%
3% 3%
3%
5%
4% 4%
4%
34%
5%
5%
Conservative
52%
46%
47%
48%
Conservative
52%
5% 5%
46%
47%
48%
5%
Conservative
52%
46%
47%
48%
38%
36%
38%
Conservative
52%
46%
47%
48%
38%
36%
38%
38%
36%
38%
46%46%
47%
48%
52%52%
46%
47%
47%
48%
52%
38%
36%48%
38%
34%
34%
36%36%
38%38%
38%38%
34%
36%
38%
38%
34%
5%
Risk
profiles
Risk
Risk
profiles
profiles
Conservative
Conservative
Conservative
34%34%
34%
4%
9%
5%
33%
Moderate
conservative
37%
5%
5%
5%
5%
5%
5%
11%
5% 5%
5% 4% 4%
5%
4%
5%
11%
37%
11%
37%
37%
5% 5%
5%
11%
11%
27%
27%
2%
2%
2%
27%
27%
27%
conservative
conservative
conservative
9%
9%
9%
Moderate
Moderate
Moderate
Moderate
12%
12%
25%
12%
12% 5%
5%
21%
21%
5%
5%
8%
8%
8%
Moderate 12%12%
8%
Moderate
12%
8%
7%
Moderate
7%
21%
Moderate
7%25%
21%
21%
25%
19%
25%
5%
5%
5%
19%
19%
7%
7%
7%
19%
19%
7% 23%
7%
8% 8%
8%
7%
7%
18%
18%
18%
7% 7%
7% 18%
3%
18%
3%
19%19%
19%
3%
3%
3%
7%
Moderate
aggressive
Moderate
Moderate
Moderate
aggressive
aggressive
aggressive
23%23%
23%
3% 3%
3%7%
7%
7%
7%
14% 13%
13%
13%
Moderate
13%
Moderate
13%
Moderate
7%
Moderate
aggressive
aggressive
7% 7%
7%14%14%
14%
aggressive
24%
aggressive
24%
10%
13%
13%
13%
24%
24%
7%
7%
7%
24%
24%24%
24%5% 9%
5%
5%
5%
11%
5%
10%10%
5%
10%
Aggressive
Aggressive
Aggressive
Aggressive
31%
Aggressive
31%31%
31%
Aggressive
Aggressive
Aggressive
16%
31%
31%
31%
31%
16%16%
8%
16%
8%
8%
8%
8% 10%
8%
10%
8% 8%
8%
10%
13% 10%
8%
13%13%
13%
32%
32%
32%
7%
3%3%
7%
2%
3% 3%
3%
3% 7% 5% 3%
2%
2%
3% 3%
2%
3%
2%
2%
7% 7%
3% 3%
7%
2%
3%
5% 2%
42%
2% 2%
42%
2%5%
5%
42%
5%
2% 2%
42%
2%
33%
5% 5%
5%
42%42%
42%
33%
33%
33%
33%
33%33%
33%
32%32%
32%
10%
11%
10%
11%
12%
10%
11%
12%
5%
5%11%
10% 5%
12%
10%
11% 5%
28%
5%
5%
12% 5%
28%
5%
5%
28%
33% 33%
5%
7%
6%
5%7%
6%
5%
5%
33%
28%
7%
5%
7%
6%
7%
28%
7%
33%
4%
4%
7%
4%
6%
33%
7% 4%
6%
10%10%
4%
7%
11%11%
4%
10%
11%
12%12%
5%
7%
12% 5%
2%
4%
5%
4%
2%
4%
4%
2%
5%
5%
5%
5% 5%
5%
4%
5%
5%
5% 5%
2%
4%
5%
5%
2%
28%28%
5%
2%
28%
2%
5%
2%
4%
2%
10%
4%
23%
7% 7%
33%
6% 6%
5%
2%
2%
2%33%33%
10%
7%10%
6%
13%
5%
2%
23%
7% 7%
7%
27%
13%
2%
10%
13%
2%
4%
15%
27%
10%
23%
4%
27%
4%
4%
27%
3%
4%
4%
23%
13%
15%
13%
3%
15%
27%
27%27%
5% 5%
5%3%15%
27%
27% 2% 2%
2%
3%
15%
27%
3%
4%
12%
5%
25%
25%
25%
25%
5% 5%
5%
27%27%
27%
15%15%
15% 3% 3%
3%
13%13%
13%
4%
4%
2% 2%
2%
5%
22%22%
22%
16%
16%
16%
16%
6% 6%
6%
5% 5%
5%
5%
5%
5%
9%
5%
9% 5%
9%
9%
8%
8%
5%
8%
17%
8%
9%
25%
25%
13%
25%
5% 25%
13% 5% 5%
17%17%
13%
17% 6%
9% 9%
13%
9%
14%
14% 25%
14%
14%
14%
Legend
6%
6% 8%
8%
13%
6%
6%
6%
6%8%
6%
8%
25%25%
25%
22%22%
22%
8% 8%
8%
13%13%
13%
11%
19%
19%19%
19%
5% 5%
5% 4%
10%10%
10%
2% 2%
2%
27%27%
27%
22%
•• Large
•• Short-Term
Large U.S.
U.S. Blend
Blend
Short-Term Fixed
Fixed Income
Income
•• Large
•• Fixed
Large U.S.
U.S. Growth
Growth
Fixed Income
Income
•
Large
U.S.
Growth
•• Fixed
Income
Legend
•
Large
U.S.
Growth
Fixed Income
•• Small/Mid
U.S.
•
Large
U.S.
Value
Small/Mid
U.S. Value
Value
•
Large
U.S.
Value
Legend
Legend
Legend • Large U.S. Value
•
Small/Mid
• Small/Mid
U.S. Value
Value
LargeIncome
U.S. Value
• Large U.S.
Blend U.S.
• Short-Term •Fixed
• Short-Term
Fixed
Income
•• Short-Term
Short-Term
Fixed
Fixed
Income
Income
24%24%
24%
5% 5%
5%
2%
13%13%
13% 2% 2%
2%
11%
11%
11%
11% 5%
5%
6%
5%8%
5%
6%
15%
6%
15%
8%
6%
6%
6%
11%
8%
15%
12%15% 15%
6%
8%
9%
6%
9%
8%
21%
5%
8%
13%
9%
19%
9%
13%
19%11%
8%
11%
12%12%
8%
10%
12%15%15%
15% 6%
13% 15%
7%
19%11%
13%
8%
10% 21%
22%
7%
21%
21% 19% 5% 5%
5%
22%
10%
11%
7%
10%
6%
7%
11%
22%
17%
6% 6%
9%6%
22%
6%5%
17%
5%
11% 15%15%
8%
8%
8% 8%
15%
6%
11%
17%
5% 6%
4%
17%
5%
19%
4%
9% 9%
9%
4%
10%
8% 8%
8%7% 4%
17%
17%
17%
17%
12%
4% 4%
4%15%
12%
15%
12%
15%
12%
15%
6% 8%
6%
10%
10%
10%
5%
Legend
22%22%
22%
Legend
11%11%
11%
Legend
6%
6% 6%
6%
6%
6%
10%10%
14%
8% 8%
10%14%
5% 5%
•
Large
U.S.
Blend
8%
5%
••14%
Short-Term
Fixed
Income
• Large U.S. Blend
Short-Term Fixed Income
10%
8% 8%
8%
3%3%
3%
3%
3%
3% 3%2%
3%
2%
3% 3%
7%
3%3%
7%
11%
14%
12%
15%
13%
11%
14%
12%
15%
18%
13%
18%
11%
14%
12%
15%
13%
26%
11% 5%
14%
5%
15%
11%
13%
18%
15%
26% 12%12% 5%
13%
5%
18%
7%
5%
5%
18%
7%
5%
26%
5%
5%
8%
5%
8%
16%
26% 26%
5%5%
8%
7%
5%
8%
16%
7%
5%
8%
5%
10%
8%
10%
16%
8%
8%
10%
16%
5%
10%
8%
8%
5%
8%
11%
16%
12%
22%
8%
10%
15%
11%
11%
13%
12%
12%
15%
15%
10%
13%
10%18%18%
10% 13%
5%
18% 22%
5%
8%
5%
8%
10%
8%
5%
5%
5%
22%
5%
5%
26%26%
5% 5%
22%
8%
26%
11%
5%
5%
5%
24%
8%
5%
11%
5%
5%
24%
22%
8%
5%
5%
5%
22%
6%
8%
13%
5%
22%
11%
8% 19%
24% 8% 8%
13%
11%16%
9%
8%
8%
5% 6%
5% 2%
24%
8%
2%
22%
9% 16%16%
19%
8% 5% 6%
5%
22%
13%
4%
6%
2%
13%
9%
4%
19%
10%10%
2%
10% 5%
24%
9%
19%
5%
5%
4%
22%
8% 8%
5%
5%
8%
6%
4%
13%
11%11%
11%
9% 9%
5% 5%
9%
5%
7% 7%
7% 32%
29%
29%
29%
5%21%
21%
18%18%
18%
32%
9% 9%
9%29%
29%29%
29%
7% 7%
7%
6%
7%
3%
3%
4% 4%
4% 6%
3%
42%
3%
7%
2%
3% 3%
3%
3%
2%
3%
6% 6%
6%
3% 3%
2%
3%
2%
40%
7%
40%
3% 3%
3% 7%
40%
40%
2% 2%
7%
2% 7%
2% 2%
2% 40%40%
40%
12%
21%
3%
3%
4%
3%
4% 3%
6% 4%
4%
2%3%
6%
3%3%
6%
4%
4%
4%
7%
4% 4%
7%
4% 4%
4%
7%
4%4%
7%
4%
2%
4% 4%
40%
4%
4%
4%
4%
4%
4% 7%
4% 4%
4%
4%
7%
7%
4%
4%
37% 9%
4%
2%
4%
4% 4%
37%
4%
2%
37%
37%
2%
9% 2%
2%
4% 4%
2%
4% 9%
9%
2%
9%
2% 29%
11%11%
11%
27%27%
27%
3%
4%
4%
4%
4%
4%
4%
4%
4% 9%
33%
5% 4%
4%
33% 4%
Moderate
9%33%
Moderate 9% 9%
2%
33%
Moderate
Moderate
conservative
conservative
33%33%
33%
conservative
conservative
Moderate
Moderate
Moderate
4%
7%
• Large
U.S.
Blend
•• Large
U.S.
Blend
Large
U.S.
Blend
21%
21%
21%
21%
19%19%
19%
7% 7%
17%
7%
4%
17%17%
•• Small/Mid
U.S.
17% Blend
Small/Mid
U.S.
Blend
•• Small/Mid
4% 4%
Small/Mid U.S.
U.S. Blend
Blend
4%
•• Small/Mid
Small/Mid U.S.
U.S. Growth
Growth
•• Small/Mid
Small/Mid U.S.
U.S. Growth
Growth
•• International
International Equity
Equity
•
International
Equity
• International
Equity
• Small/Mid
U.S. Blend
• Small/Mid
U.S.
Blend
•• Small/Mid
Small/Mid
U.S.
U.S.
Blend
Blend
• Large
U.S.
Growth
• only.
Small/Mid
U.S.
Growthcategory
• Fixed Income
Asset
The
Asset allocation
allocation models
models are
are presented
presented here
here for
for illustrative
illustrative purposes
purposes only.
The actual
actual investment
investment category
• are
Large
U.S.
Growth
• Small/Mid
U.S.
Growth
• Fixed
Income
•• time.
Large
U.S.
Growth
•• Small/Mid
Small/Mid
U.S.
U.S.
Growth
Growth category
Large
U.S.
Growth
•• Fixed
Fixed
Income
Income
Asset
presented
here
for
only.
investment
percentages
maymodels
vary over
Asset allocation
allocation
models
are
presented
here
for illustrative
illustrative purposes
purposes
only. The
The actual
actual
investment
category
• International Equity
• Small/Mid
U.S.
Value
• International
Equity
• Large
U.S.
Value
•• Small/Mid
U.S.
Value
•• International
International
Equity
Equity
Small/Mid
U.S.
Value
•• Large
Large
U.S.
U.S.
Value
Value
percentages may vary over
time.
• Small/Mid
U.S. Value
• Large U.S. Value
percentages
percentages may
may vary
vary over
over time.
time.
Asset
Asset allocation/diversification
allocation/diversification does
does not
not guarantee
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loss.
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RetireView models are presented for illustrative purposes only. The actual investment category percentages may vary over time.
Asset
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allocation/diversification
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Asset allocation/diversification does not guarantee a profit or protect against a loss.
3
For plan sponsor use only. Not for distribution to plan participants.
Investor profiles
Conservative
Moderate
Conservative
Moderate
Moderate
Aggressive
Attributes: this investor is more cautious; has sensitivity to short-term losses and/or a shorter
time horizon; seeks investment stability, but still wants to beat inflation over the long term.
Objective: to preserve capital while providing income potential; expects fluctuations in their
portfolios to likely be smaller and less frequent than more aggressive portfolios.
Attributes: this investor seeks modest capital appreciation and income potential;
has a slightly higher risk tolerance than the most conservative investors.
Objective: desires to preserve capital; is comfortable with fluctuations in the portfolio from
year to year.
Attributes: this investor seeks relatively stable growth with a lower level of income potential;
has a higher tolerance for risk than more conservative investors.
Objective: to achieve steady growth while limiting fluctuation to less than that of the overall
stock markets.
Attributes: this investor has a relatively high tolerance for risk and has little need for
current income and seeks above-average growth; tolerates moderate fluctuations in their
portfolio values.
Objective: capital appreciation
Attribute: this investor has a high tolerance for risk and is comfortable with larger and more
frequent fluctuations from year to year.
Aggressive
Objective: mainly, this investor wants to achieve high growth, which means the investor isn’t
as concerned with receiving current income; is comfortable with larger and more frequent
fluctuations from year to year.
The participant’s role
An investor profile quiz helps the participant learn his or her risk-tolerance level. And then he or she can use that
information to help choose a RetireView model based on risk and time left to retirement. Then the participant’s
current balance is allocated according to the investment options in that model in the stated percentages —
and future contributions are directed that way, too.
A participant can choose all — or just a portion (if the plan allows) — of their savings and future contributions
to be allocated according to a RetireView model. If a portion is chosen, the participant can use up to 6 other
investments from the plan’s lineup.
And there are features that give the participant flexibility:
Automatic age adjustment
Rebalancing
RetireView can apply an aging feature that automatically
moves the participants’ savings to the next age band
(while staying in the same risk tolerance band). As a
participant approaches retirement, this automatically
makes his or her asset allocation become more
conservative — all without participant interaction.
Participants can control rebalancing
frequency by choosing quarterly, semiannual or annual rebalancing to make
sure their asset allocation stays closer
to what they elected.
Asset allocation/diversification does not guarantee a profit or protect against a loss.
For plan sponsor use only. Not for distribution to plan participants.
4
Morningstar and their process
Morningstar is a leading authority on asset allocation. For more than 35 years, they’ve provided asset
allocation research and real-world solutions to both domestic and international investors. Their focus is on
investment research and strategy.
To create the RetireView asset allocation models, Morningstar estimates the potential long-term returns and
volatility of each asset class using a combination of historical data, current market information and additional
analysis. Then, using a statistical technique known as mean-variance optimization, they determine how to mix
each asset class in each model in an attempt to maximize return for a given level of risk or to minimize risk for
a given level of return. But, it must be said that past performance is no guarantee of future results.
Helping participants stay up-to-date: model updates
Involvement from Morningstar doesn’t stop there. They review the models, typically on an annual basis,
and may make changes to the allocation percentages of the models. This helps ensure their asset allocation
strategies align with the most up-to-date economic and market conditions. Model updates are an easy way
for participants to keep up with changes in the economy or markets.
There are two ways a plan sponsor can manage model updates:
In the standard version of RetireView,
or
A plan sponsor can choose to move all
a participant must choose to move to
participants to new models automatically.
new models once they’re introduced
It’s an easy way to keep all participants’
(except for participants who’ve
allocation up-to-date with the current
defaulted into RetireView — they always
economic outlook without making each
move to the newest models).
participant choose.*
*This method adds some fiduciary responsibility.
Qualified Default Investment Alternative (QDIA)
As a plan sponsor, you can elect to use one or more of the RetireView models as a QDIA, but it’s also your
responsibility to determine if the populated models meet the criteria for a QDIA set forth by the Department
of Labor regulations and then monitor it going forward.
If RetireView is the plan’s QDIA, defaulted participants will move to new models automatically and will
rebalance quarterly unless they choose another frequency.
Using RetireView as a transition or mapping option
When your plan experiences the closing of an investment option, you can use RetireView as the mapping option
to move money out of the closing investment. Or if you’re moving your plan’s services to Principal, you can use
RetireView as the transition option for participant savings. In either case, it’s important to map both current
balances and future contributions according to a RetireView model for the participant to be in RetireView.
Asset allocation/diversification does not guarantee a profit or protect against a loss.
5
For plan sponsor use only. Not for distribution to plan participants.
Here are some important considerations:
• A plan sponsor can choose either a specific model or a risk tolerance band to map to. If a specific model
is chosen, only quarterly rebalancing will apply; if a risk tolerance band is chosen, both aging and quarterly
rebalancing will apply.
• If a participant is already in RetireView, their choice for model elected, rebalancing and aging will stay
in effect through a mapping situation.
• Participants can personalize RetireView by changing the model, rebalancing or aging at any time.
• If you’re seeking protection under the Pension Protection Act for your plan’s transition option, keep in mind
that the stated characteristics of the new investment options (including risk and return characteristics)
must be “reasonably similar” to those of the old investment options. RetireView is not an investment
option; it’s an asset allocation service. There’s no guidance as to whether transitioning from an investment
option to an asset allocation model would meet the “reasonably similar” requirement of the law.
Our warranty
Principal Life Insurance Company represents and warrants that the asset allocation models used for this service
were constructed by Morningstar using generally accepted investment theories that provide diversification
through a range of risk levels and asset classes generally appropriate for retirement plan participants.
We will hold harmless and indemnify the appropriate fiduciary of the plan with respect to liability, losses and
reasonable expenses, including reasonable attorneys’ fees, resulting from claims by a plan participant that
are not reimbursed by insurance or otherwise paid and which are sustained through a final determination
by a court of competent jurisdiction on grounds of material breach of these representations and warranties.
More information?
Contact your financial professional or Principal® representative today.
Asset allocation/diversification does not guarantee a profit or protect against a loss.
For plan sponsor use only. Not for distribution to plan participants.
6
Morningstar Investment Management LLC is not an affiliate of any company of the Principal Financial Group.
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options.
Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. 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. Asset allocation does not ensure a profit or protect against a loss. Fixed-income and
asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
Review the RetireView Terms and Conditions for a full discussion of the features of this service, including rebalancing and
automatic age adjustment of the populated models.
Investing involves risk, including possible loss of principal.
Risk/age tolerance models are created by Morningstar Investment Management LLC. Morningstar begins by analyzing asset
classes and constructs long-term expected returns, standard deviations and correlation coefficients. These form the inputs for
the mean-variance optimization, a statistical technique. Because forecasting is a critical and pivotal step in the asset allocation
process, Morningstar develops proprietary capital market forecasts for each asset class using a combination of historical data,
current market information and additional analysis. Each forecast becomes an input in portfolio creation.
The risk tolerance models (models) are intended to be used as an additional information source for retirement plan participants
making investment allocation decisions. Pursuant to the Department of Labor Definition of Investment Education, such models
(taken alone or in conjunction with this document) do not constitute investment advice for purposes of the Employee Retirement
Income Security Act (ERISA), and there is no agreement or understanding between Morningstar Investment Management
LLC and us or any plan or plan fiduciary, or any participant who uses this Service, under which the latter receives information,
recommendations or advice concerning investments that are to be used for any investment decisions relating to the plan.
Accordingly, neither we nor Morningstar are a fiduciary with respect to your plan sponsor’s plan for purposes of this Service,
including the features of rebalancing and aging. Following an asset allocation model does not ensure a profit or protect against
a loss. Performance of the individual models may fluctuate and will be influenced by many factors. In applying particular asset
allocation models to their individual situations, participants or beneficiaries should consider their other assets, income and
investments (e.g., equity in a home, Social Security benefits, IRA investments, savings accounts and interests in other qualified and
nonqualified plans) in addition to their interests in the plan.
Principal Life is not undertaking to provide investment advice in a fiduciary capacity or to provide impartial investment advice
of any kind. This document is intended to be educational in nature and is not intended to be taken as a recommendation.
Insurance products and plan administrative services provided through Principal Life Insurance Co. Securities offered through
Principal Securities, Inc., 800.547.7754, member SIPC and/or independent broker/dealers. Principal Life and Principal Securities®
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.
For additional information, visit us at principal.com.
© 2017 Principal Financial Services, Inc.
PQ10004-19 | t17052308xd | 6/2017
Asset allocation/diversification does not guarantee a profit or protect against a loss.
7
For plan sponsor use only. Not for distribution to plan participants.