Capital Preservation Investment Options

Principal Guaranteed Option

Guaranteed interest

Don’t sacrifice flexibility in order to get the security of guarantees. Principal Guaranteed Option (PGO) is the newest addition to our suite of fixed income capital preservation investment products. It gives plan sponsors more choice and flexibility.

With a focus on preserving capital, PGO provides a compelling credit rate over a full interest rate cycle. Here are some key features:

• Accessible: Available for 401(k), 401(a)-DC, 403(b), and governmental 457(b) plans.
• Flexible: Provisions and features offer more choice.
• Portable: Stay in the investment option even if the plan moves to a new recordkeeper.

Principal Guaranteed Option fact sheet (PDF)

Learn more about PGO (PDF)

PFIGO

Guaranteed interest

For those concerned about volatility in the markets, the Principal Fixed Income Guaranteed Option (PFIGO) may be a great investment choice for plan sponsors looking for a conservative foundation for a retirement program. This capital preservation investment is a guaranteed general account-backed group annuity contract issued by Principal Life Insurance Company.

• The value does not fluctuate with the stock and bond markets.
• The interest rate is declared. You know in advance what interest will be earned.
• Participants can generally transfer without surrender charges. No redemption fees, early withdrawal charges, or market-value adjustments are charged on participant transfers of assets into or out of this contract. What may result in a charge is an employer-level liquidation.

Principal Fixed Income Guaranteed Option fact sheet (PDF)

Learn more about the Principal Fixed income Guaranteed Option with this Q&A (PDF)

Guarantees are based upon the claims-paying ability of the Principal Life Insurance Company.

Guaranteed Interest Accounts

Guaranteed interest

Are your clients looking for a fixed income product that preserves capital and can keep pace with current market interest rates? A guaranteed interest account may be the answer.

A guaranteed interest account:

• Provides a guaranteed interest rate from two to seven years
• Is backed by the multibillion-dollar general account of Principal Life Insurance Company
• Offers fee flexibility with either Z or A class of contract
• Principal and interest are guaranteed no matter the performance of the underlying general account

Guaranteed interest account maturity fact sheets

2-year maturity (PDF)
3-year maturity (PDF)
4-year maturity (PDF)
5-year maturity (PDF)
6-year maturity (PDF)
7-year maturity (PDF)

Guarantees are based upon the claims-paying ability of the Principal Life Insurance Company.

Here's the guaranteed interest account brochure (PDF) for additional important information and to share with your clients.

Principal Stable Funds

Stable value

Principal makes available two stable value funds, in which multiple clients invest in the same pooled funds. Each stable value fund is structured as a collective investment trust (CIT) maintained by a bank or trust company. It is not a mutual fund.

Pooled stable value funds

The investment option is typically appropriate for investors who desire low volatility, stable principal value and returns corresponding with a capital preservation objective for some of their retirement savings. The investment is designed for long-term retirement investing.

Principal Stable Value Fund

This investment option’s objective is to preserve capital and provide relatively stable returns consistent with its low risk profile. Its investment manager, Morley Capital Management, provides stable value investment services through collective investment funds and separately managed portfolios. The investment is designed for long-term retirement investing.

Principal Stable Value Fund fact sheet (PDF)

Morley Stable Value Fund

This investment option’s objective is to preserve capital and provide relatively stable returns consistent with its low risk profile. Its investment manager, Morley Capital Management, provides stable value investment services through collective investment funds and separately managed portfolios. This investment option is available on both Principal recordkeeping and external recordkeeping platforms.

Morley Stable Fund fact sheet (PDF)

Customizable stable value funds

We can design solutions to help meet a variety of client objectives related to offering stable value funds.

Principal Stable Asset Option (PSAO)

This capital preservation investment option gives plan sponsors the ability to customize a stable value product for their plan. It’s available for clients with a minimum of $20 million in fixed income.

Plan fiduciaries choose from two different underlying segregated portfolios each comprised of a defined, targeted mix of specific separate accounts managed by Principal Global Investors (PGI).

Principal Stable Asset Option - Portfolio 1 fact sheet (PDF)

Principal Stable Asset Option - Portfolio 2 fact sheet (PDF)

Tailored stable asset options

For large plan sponsors who require fully tailored solutions to help meet their investment goals and objectives. Fully custom separately managed accounts may be available through Principal Global Investors and Morley Capital Management.