Principal Funds: New Research on Asset Consolidation Highlights
Opportunities for Investors, Financial Professionals
DES MOINES, Iowa -- June 6, 2013
Approximately 5.7 million affluent households in the United States rely on
more than one financial professional to manage their investible assets^1.
Principal Funds partnered with Cogent Research to uncover the reasons why
investors are using multiple financial professionals and how they might
benefit by consolidating their assets with a sole or primary financial
A new white paper, titled “Maximizing Value through Asset Consolidation,”
highlights the reasons to consider asset consolidation for both investors and
financial professionals. It also provides suggestions for financial
professionals guiding clients through the transition.
“The research shows nearly 30 percent of those using multiple financial
professionals didn’t intend to do so in the first place,” said Kevin Morris,
Principal Funds marketing director. “By selecting a primary financial
professional, investors can trade their fragmented approach for a more
holistic view of their investment goals, concerns and areas of interest.”
According to the study, only one-third of investors agree they are receiving
better financial advice by using multiple financial professionals. Further,
investors working with a single financial professional report:
*Higher overall satisfaction with their financial professional
*Higher confidence in their financial professional’s capabilities
*Increased likelihood to recommend their financial professional to others
And of those who have consolidated their assets, 61 percent agree it’s easier
to monitor their overall investment performance. Additionally, a majority of
investors state they are more satisfied with their financial situations after
consolidating (55 percent) and report they are able to lower their investment
fees/expenses (54 percent).
“These findings clearly support the opportunity for financial professionals to
proactively discuss asset consolidation with their clients,” Morris said.
The white paper is available for download at
www.principalfunds.com/consolidateassets. For more news and insights from The
Principal, connect with us on Twitter at http://twitter.com/ThePrincipal.
About Principal Funds
Principal Funds is a leading provider of mutual funds, with $96.2 billion in
assets under management.^2 Principal Funds brings expertise in global
investment management, asset allocation and retirement leadership to financial
professionals and investors. Including its target-risk and target-date
offerings, Principal Funds is the fifth largest manager of lifecycle funds in
the industry.^3 The companies that make up Principal Funds are members of the
Principal Financial Group^®. For more information, visit
About the Principal Financial Group
The Principal Financial Group^® (The Principal^®)^4 is a global investment
management leader offering retirement services, insurance solutions and asset
management. The Principal offers businesses, individuals and institutional
clients a wide range of financial products and services, including retirement,
asset management and insurance through its diverse family of financial
services companies. Founded in 1879 and a member of the FORTUNE 500^®, the
Principal Financial Group has $456.1 billion in assets under management^5 and
serves some 19.1 million customers worldwide from offices in Asia, Australia,
Europe, Latin America and the United States. Principal Financial Group, Inc.
is traded on the New York Stock Exchange under the ticker symbol PFG. For more
information, visit www.principal.com.
Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc.,
member of the Principal Financial Group^®. Principal Funds Distributor,
Principal Shareholder Services, Principal Management Corporation and its
affiliates, and Principal Funds, Inc. are collectively referred to as
^1 Cogent Research, May 2013. Affluent households are defined as having at
least $100,000 in total investable assets including all cash, savings, mutual
funds, stocks, bonds, retirement accounts (such as IRAs, 401(k)s, 403(b)s,
etc.) and all other types of investments (excluding real estate).
^2 As of March 31, 2013. Includes all share classes of the Principal Funds,
Inc. and Principal Variable Contracts Funds, Inc.
^3 FRC Mutual Fund Lifecycle Report Q4 2012.
^4 “The Principal Financial Group” and “The Principal” are registered service
marks of Principal Financial Services, Inc., a member of the Principal
^5 As of March 31, 2013.
Principal Financial Group
Jaime Naig, 515-247-0798
Press spacebar to pause and continue. Press esc to stop.