Principal Funds Announces Expansion of Investment Only Strategy

Principal Funds is ramping up its investment only (IO) strategy aimed at third-party platforms.

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.

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.

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