A Target-Date Series Diversifies Its Way to a Medal
Principal's LifeTime funds make up most of the Morningstar Analyst Ratings changes in August.
Most of the Morningstar Analyst Ratings changes since the end of July came in one fell swoop.
The Analyst Ratings for the entire Principal LifeTime target-date retirement series--about a dozen funds in total--went to Bronze from Neutral. Sure, recent performance has been strong because of a higher-than-average equity weighting across the lineup. It was the series' unique and thoughtful diversification, though, that pushed it into Medalist territory, wrote Morningstar analyst Jeff Holt. Principal has tossed into the mix some institutional-grade asset classes that are unusual for target-date funds, such as timber, master limited partnerships, infrastructure, floating-rate debt, commodities, and long-short strategies. The LifeTime funds access those exposures via an array of hand-picked subadvisors running some of the series' component funds-- Principal Diversified Real Asset (PRDCX), Principal Global Diversified Income (PGBAX), and Principal Global Multi-Strategy (PMSPX).
Dan Culloton does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.