Products August 31, 2007

Missouri Touts “Terror-Free” Option for 529 Plan

The state of Missouri will begin offering an actively managed “terror-free” investment option for its 529 plan that ensures participants’ and investors’ portfolios exclude companies with ties to countries that support terrorism.
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UMB Investment Advisors, the investment division for UMB Asset Management, will manage the investment portfolio. The UMB product is the first such “terror-free” portfolio that has been open to institutional and individual investors, according to a press release.

Missouri Treasurer Sarah Steelman created the Missouri Investment Trust (MIT), an initiative to make terror-free investing possible on the state and national level by establishing a terror-free policy for a public fund. The state partnered with Conflict Securities Advisory Group (CSAG) to identify and screen publicly-traded companies that have direct ties to Iran, Syria, Sudan and North Korea, as established by the Missouri Investment Trust.

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The Missouri 529 plan is not restricted to residents of the state, but open to anyone wanting to invest.

“We have seen the movement toward terror-free investing develop substantial momentum over the past few years as people increasingly choose to invest in a security-minded manner that reflects their views on corporate decisions to partner with countries that support terrorism,” said Roger Robinson, president and chief executive officer, CSAG, in the press release.

UMB also has the ability to customize other investment offerings to meet specific “terror-free’ criteria or policies.

For information on CSAG visit www.conflictsecurities.com.

For more information on terror-free investing, visit www.terrrorfreeinvesting.com.

The Markets August 30, 2007

Principal Funds Announces Expansion of Investment Only Strategy

Principal Funds is ramping up its investment only (IO) strategy aimed at third-party platforms.
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The IO initiative supports financial professionals with products and services from Principal Funds available through third-party administrators (TPAs), registered investment advisers (RIAs), recordkeepers and other investment and trading platforms, according to a press announcement. Principal Funds will offer the same complete investment platform and share class flexibility to the IO client base that it currently provides to full-service retirement clients.

The Principal LifeTime Funds and Strategic Asset Management portfolios will serve as a foundation for the IO strategy, complemented by a full range of investment options including a mix of asset classes, investment styles, and portfolio structures. The Principal also offers a due diligence program, value added tools to help advisers build their business, and a multi-manager investment approach, the announcement said.

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To lead the effort, Principal Funds hired Mark Marwede as managing director of IO solutions. Marwede will head a dedicated IO team responsible for securing relationships with a variety of firms and financial intermediaries to drive increased sales. Marwede was most recently a senior vice president at Fidelity Investments, where he managed institutional clients, positioning sub-advised, retail, and adviser funds within pension and annuity programs.

“With the recent addition of Principal Funds providing expanded retail fund distribution, the integration of these efforts and greater emphasis on the investment only and RIA channels is a natural extension of our strategy,’ said Tim Minard, senior vice president of distribution, Retirement and Investor Services at the Principal Financial Group.

More information can be found at www.principal.com.

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