Principal Global Investors Investment expertise with a purpose
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Whether you re investing personally or on behalf of your business, you want an investment manager who empowers you to reach your financial goals. Empowering individual investors, institutions, and business professionals is our single purpose. When you partner with us, you benefit from the combined strength of a multi-boutique investment firm and the management expertise of Principal, one of the world s largest diversified investment companies. This combined strength distinctly positions us to connect the aspirations and goals of millions of people around the globe with innovative ideas, combined with investment expertise, guidance, and real-life solutions. 2
We are committed to delivering the investment outcomes you need, combined with consistently competitive investment performance and superior service. Our dedication to and achievement of this goal is validated by the portfolios we manage for investors around the world. 3
Working for you every day A culture that is about doing things right Focused on investment outcomes You can depend on our talented team of senior investment professionals to work for you every day to deliver on a never-changing set of values integrity, commitment, and world-class service in today s ever-changing investment markets. Our global footprint means we understand your local market and have direct access to the markets and companies in which we invest a distinct advantage for you. People and communities are the foundation of our business. Empowering investors to realize their long-term financial goals. Helping businesses reach their full potential through financial growth. Our focus on these beliefs leads to strong communities and improved economies worldwide. This is why we do what we do. Corporate citizenship is the cornerstone on which our company culture is built. That s why our team works together to enrich communities, help protect the environment, and strive for a quality work environment. This culture is reflected by our investment expertise and performance, our client satisfaction, and industry leadership. Our commitment to responsible investing and environmental, social and corporate governance (ESG) leadership is a core value of our asset management philosophy. Our employees carry forward that commitment every day, and as a result, our employees consistently rank Principal among the top of Pension & Investments Best Places to Work in Money Management 1 survey so you know the people you re working with are truly invested in your success. We partner with you to deliver on a shared commitment to long-term successful investment outcomes, not simply returns. We take the time to understand your unique asset management goals and challenges. And because we are a researchdriven organization, we deliver on this commitment by developing strong, stable investment strategies that you would expect from a financial partner. We understand that you need unique solutions, so we focus on constructing holistic investment approaches. This strategy offers you greater control through customized, dynamic management that reflects your evolving objectives, in an investment environment where the risks taken are understood and intended. Active management, disciplined execution, exemplary oversight, and tailored reporting and servicing are hallmarks of Principal Global Investors your trusted investment partner. 1 Pensions & Investments, The Best Places to Work in Money Management among companies with 1,000 or more employees, 12/14/16. 4
Multi-boutique asset manager Comprised of a network of specialized boutiques and teams, we currently manage portfolios on behalf of a broad range of sophisticated clients in over 70 countries around the world. Our global distribution provides direct access to the markets and companies in which we invest and close proximity to the clients we serve. Through our diverse group of investment boutiques, our investment philosophy supports the growing demand for income and yield. We are, however, much more than a collection of specialized investment boutiques and capabilities. You benefit from our multi-boutique business structure that cultivates a small company mindset in a large company environment. This approach provides access to outstanding asset managers each with a distinct investment specialty and philosophy. The autonomy of the boutique investment professionals results in consistent, competitive and custom investment options that support your need for income and yield. We do this by offering qualityfocused alpha and beta strategies in both developed and emerging markets using broad investment capabilities and asset classes. Equities, fixed income, real estate, currency management, and stable value funds Specialized asset allocation strategies Lifecycle funds Exchange-traded funds Collective investment trusts Alternatives, and other structured investment strategies Our extensive client base reflects the breadth and sophistication of our investment capabilities. Who we work with Individuals, business owners, public and private retirement plans, foundations and endowments, central banks, insurance companies, sub-advisory arrangements and sovereign wealth funds. The benefits are clear flexible investment strategies, customized investment solutions, and consistent investment results, all through a single, global investment advisor. 5
The autonomy of the boutique investment professionals results in consistent, competitive, and custom investment options that support your need for income and yield. 1. Pensions & Investments, The Best Places to Work in Money Management among companies with 1,000 or more employees, 12/14/2015. 6
Multi-boutique strategy Our multi-boutique business model provides a holistic approach to investing that offers customization and dynamic management. This model allows us to adapt to shifting investment markets and your evolving investment objectives. You benefit from a single point of access to a world-class network of specialized investment boutiques. 7
Aligned Investors is an investment boutique within Principal Global Investors that utilizes a completely fundamental, bottom-up approach. The name Aligned Investors highlights the group s conviction in the power of aligned incentives. This is emphasized in the investment process through a distinctive preference for owner-operators. Since 1999, the team manages mid-cap and blue chip strategies. MidCap Equities Blue Chip Equities Principal Global Equities is a specialized investment management group within Principal Global Investors. They are fundamental investors who focus on bottom-up stock selection and provide client-focused investment solutions spanning equity markets worldwide. They are distinguished by a globally integrated culture that embraces collaboration, the unified adherence to a bottom-up stock selection investment philosophy and process, and the way they leverage technology to consistently and effectively manage portfolios and client relationships. Global & All-Country Equities International (ex-u.s.) Equities Emerging Markets Equities U.S. Equities Small-Cap Equities Geographic and Objective Tailored Solutions 8
High Yield Investment-Grade Credit Opportunistic Liability-Driven Investments/ Long Duration Multi-Sector Fixed Income Principal Global Fixed Income focuses on providing customized and yield-oriented investment solutions for clients worldwide. It specializes in credit and volatility management, offering capabilities that highlight its competitive distinctions and comprehensive approach to fundamental research and risk management. Fundamental research is at the center of its investment process, conducting internal, independent research, and covering a broad range of global issuers. It employs a comprehensive, multi-dimensional approach to risk management that aims to reduce the downside, while still allowing for upside capture. Fundamental research is at the center of its investment process, conducting internal, independent research, and covering a broad range of global issuers. 9
Principal Portfolio Strategies is a specialized boutique within Principal Global Investors that engages exclusively in the creation of asset allocation solutions. Its interactive, three-step allocation process uses topdown asset allocation, bottom-up portfolio construction, and strategic portfolio rebalancing. Strategic Asset Allocation Dynamic Outcome Dynamic Asset Allocation Principal Real Estate Investors builds upon a vertically-integrated platform, incorporating all disciplines of commercial real estate. It provides clients with access to opportunities across the spectrum of public and private equity and debt investments. This allows institutional investors to customize their real estate portfolios to their specific objectives, including sustainability and risk management guidelines. The investment process is team-oriented, research-based, and multi-disciplined, using a relative-value approach for all investment management decisions. Private Equity (Core, Value-Added and Opportunistic Properties) Public Equity (Real Estate Investment Trust Securities) Private Debt (Commercial Mortgages, Bridge and Mezzanine Loans) Public Debt (Commercial Mortgage-Backed Securities) 10
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CIMB-Principal Islamic Asset Management, based in Malaysia a partnership between Principal Global Investors and CIMB Group Holdings Berhad provides Shariah-compliant investment solutions to global institutional investors. Alpha is generated primarily through the application of a consistent and disciplined stock and security selection process, which is guided by Shariah principles and an experienced and highly regarded Shariah advisor. Islamic Global Equity Islamic Regional Asian Equity Global Sukuk (Islamic Fixed Income) Regional Asian Sukuk Columbus Circle Investors (CCI), established in 1975, is a growth-oriented equity manager that provides a broad array of equity investment services to institutional clients. CCI uses an investment philosophy of Positive Momentum and Positive Surprise to invest in strong companies whose fundamentals exceed investor expectations. CCI is headquartered in Stamford, Connecticut. U.S. Large-Cap Growth U.S. Mid-Cap Growth Small-Cap Growth Small/Mid-Cap Growth Alternative Portfolio Hedge Funds 12
Target-Outcome Asset Allocation Target-Risk Asset Allocation U.S. Large-Cap Value/Equity Income U.S. Small Mid-Cap Value/Equity Income International ADR Equity Income U.S. Multi-Cap Core/Capital Appreciation Edge Asset Management, established in 1939 and based in Seattle, Washington, is a leading manager of asset allocation, equity, and fixed income strategies. Edge has a history of innovation and continues to manage one of the first mutual funds and suite of asset allocation funds in the industry. Edge s investment process is characterized by deep fundamental research, a long-term investment horizon and often contrarian investment views. U.S. Mid-Cap Core U.S. Core Plus Fixed Income U.S. Short-Term Fixed Income Investment Grade Credit Mortgage Securities Edge has a history of innovation and continues to manage one of the first mutual funds and suite of asset allocation funds in the industry. 13
Established in 2002, and headquartered in London, Finisterre Capital is a specialist emerging markets asset manager with a particular focus on investing in fixed-incomerelated markets (interest rates, credits, and currencies). Finisterre seeks to achieve attractive risk-adjusted absolute and total returns through the use of its macro and micro research capabilities, a true long-short investment methodology and a disciplined risk management approach. Emerging Markets Macro Hedge Fund and UCITS Global Emerging Markets Credit Long/Short Emerging Markets Debt Total Return UCITS Macro Currency Group is the specialist currency and macro investment group of Principal Global Investors. Based in London and Sydney, the Macro Currency Group offers currency absolute return, overlay, and hedging strategies to a global client base. Adopting a directional global macro investment style, the fundamentally driven investment process has been in place since 1997. This has resulted in a long-term track record that seeks to offer clients all the benefits of diversification versus the traditional asset classes while at the same time delivering a strong risk-adjusted return profile. Global Macro Thematic Global Time Diversified Strategic Currency Program Base Currency Hedging 14
Stable Value U.S. Short Duration Fixed Income Founded in 1982, Morley Capital Management (MCM) is a leader in the industry and one of the longest-tenured stable value managers in the United States. MCM designs and delivers income-oriented capital preservation strategies. Morley employs a time-tested, disciplined investment philosophy and process, focused on delivering consistent investment returns through various market cycles. Its stable value strategies are available to tax-qualified retirement plans through a pooled fund or separate account. Global Equity Constrained Global Equity Unconstrained International (ex U.S.) Equity Global Emerging Markets Equity Global Smaller Companies Equity Origin Asset Management, based in London and founded in 2005, specializes in global equities management for institutional investors worldwide. Origin uses a systematic, evidence-based approach to build its equity portfolios. It combines quantitative screening with qualitative due diligence to identify companies that exhibit a balance of positive capital management, positive relative share price momentum, upgrades in consensus earnings estimates, and undervaluation. 15
Founded in 1992, Post Advisory Group is a leading fixed income investment manager specializing in high yield bonds and senior loans. Post s investment process focuses on bottom-up fundamental credit research, emphasizing strong downside risk reduction in high quality businesses. This investment process is augmented with a top-down macro and technical overlay to enhance portfolio construction, while tactically managing credit and market risk. Post manages assets for institutional investors from around the world. High Yield High Yield Plus Limited Term High Yield Intermediate Term High Yield Senior Loan Founded in 1987, Spectrum Asset Management is a Connecticut based investment firm specializing in the management of preferred securities for U.S. and international clients. Spectrum s investment process combines a fundamental, bottom-up research-driven credit process, with relative value, fundamental security selection. Preferred Securities Volatility Mitigation Solutions 16
The information in this document has been derived from sources believed to be accurate as of February 2017. Information derived from sources other than Principal Global Investors or its affiliates is believed to be reliable; however, we do not independently verify or guarantee its accuracy or validity. Principal Financial Group, Inc., its affiliates, and its officers, directors, employees, agents, disclaim any express or implied warranty of reliability or accuracy (including by reason of negligence) arising out of any for error or omission in this document or in the information or data provided in this document. The information in this document contains general information only on investment matters. All expressions of opinion and predictions in this document are subject to change without notice. Any reference to a specific investment or security does not constitute a recommendation to buy, sell, or hold such investment or security, nor an indication that Principal Global Investors or its affiliates has recommended a specific security for any client account. Not all investment vehicles are available to all investors or in all jurisdictions. Certain vehicles have not been registered with the United States Securities and Exchange Commission and may not be directly or indirectly offered or sold in the U.S. or to any U.S. person. Investing involves risk, including possible loss of principal. This document is issued in: The United States by Principal Global Investors, LLC, which is regulated by the U.S. Securities and Exchange Commission. When issued in Europe, this is issued by Principal Global Investors (Europe) Limited, Level 1, 1 Wood Street, London EC2V 7JB, registered in England, No. 03819986, which has approved its contents, and which is authorized and regulated by the Financial Conduct Authority. Singapore by Principal Global Investors (Singapore) Limited (ACRA Reg. No. 199603735H), which is regulated by the Monetary Authority of Singapore and is directed exclusively at institutional investors as defined by the Securities and Futures Act (Chapter 289). Australia by Principal Global Investors (Australia) Limited (ABN 45 102 488 068, AFS License No. 225385), which is regulated by the Australian Securities and Investment Commission and is only directed at wholesale investors (as defined in sections 761G and 761GA of the Corporations Act). This document is issued by Principal Global Investors LLC, a branch registered in the Dubai International Financial Centre and authorized by the Dubai Financial Services Authority as a representative office and is delivered on an individual basis to the recipient and should not be passed on or otherwise distributed by the recipient to any other person or organization. This document is intended for sophisticated institutional and professional investors only. Japan by Principal Global Investors (Japan) Ltd. (Kanto Local Finance Bureau (Kinsho) No. 462, which is a member of Japan Investment Advisers Association Membership No. 011-01627 and the Investment Trusts Association, Japan. In the United Kingdom this presentation is directed exclusively at persons who are eligible counterparties or professional clients (as defined by the rules of the Financial Conduct Authority). In connection with its management of client portfolios, Principal Global Investors (Europe) Limited may delegate management authority to affiliates who are not authorized and regulated by the FCA. In any such case, the client may not benefit from all the protections afforded by the rules and regulations enacted under the Financial Services and Markets Act 2000. This material is not intended for distribution to, or use by any person or entity in any jurisdiction or country where such distribution or use would be contrary to local law or regulation. Investing involves risk, including possible loss of principal. Principal Funds are distributed by Principal Funds Distributor, Inc. 2017 Principal Financial Services, Inc. Principal, Principal and symbol design and Principal Financial Group are registered trademarks and service marks of Principal Financial Services, Inc., a Principal Financial Group company. Principal Global Investors is the asset management arm of the Principal Financial Group. t16112806we MM8977