Provider Profiles
Principal Global Advisors*
| Profile | |
| Business Model§ | OCIO + other |
| Year Entered Into OCIO Business | 1987 |
| No. of Relationship Managers/Salespeople | 6 |
| No. of OCIO Portfolio Managers | 22 |
| OCIO % of Total Firm Revenue | >1% |
| No. of Clients, Full Discretion | 637 |
| Full Discretionary Assets | |
| Total Full Discretionary OCIO Assets | $29.7b |
| Discretionary Assets by Fund Type | |
| Defined Benefit | $19.5b |
| 401(k), 403(b), Other DC | $425mm |
| Endowments/Foundation | $1.7b |
| Healthcare Pools (Board designated, funded depreciation) | |
| Other | $8.1b |
| Portfolio Construction |
| Principal Global Advisors seeks to build a clear understanding of a client’s goals and objectives. Consulting includes pension asset liability studies or cash flow and portfolio modeling for non-pension accounts. Construction uses performance analytics in combination with our capital market assumptions. Their process helps identify managers with superior performance, risk controls, fundamentals and style consistency. They use traditional quantitative screening and qualitative interviews. They use multiple managers in each asset class pairing complementary managers that have low correlation. This structure promotes reduced volatility, better risk-adjusted returns and lower manager turnover. They focus on total portfolio cost control (advisory, manager, and custody). |
| *A specialty investment management group within Principal Global Investors, LLC.
§OCIO only: Open-architecture (no proprietary products used): Investment outsourcing is only business line. OCIO + other: An open-architecture/manager-of-manager investment outsourcing platform as one of multiple business lines. Implemented consulting: i.e. consulting firm that also has discretion over assigned assets. Proprietary/non-proprietary: An investment outsourcing platform that offers proprietary products alongside non-proprietary products. |