Principal Global Investors (PGI) is an asset management firm that delivers services through a vast network of investment groups, financial advisors and affiliates. It currently has more than $200 billion in assets under management (AUM).
Principal Global Investors Background
PGI can trace its roots back to 1879. Today, it exists as a global asset management firm. It delivers services and advice through several independent boutiques that specialize in different investment strategies.
The firm is a wholly-owned subsidiary of Principal Global Investors Holding Company, LLC.
What Types of Clients Does Principal Global Investors Accept?
PGI works with a variety of clients including:
- High-net-worth individuals
- Corporate pension and profit–sharing plans
- Taft-Hartley plans
- Charitable institutions
- Foundations and endowments
- Different types of investment funds such as mutual funds, ETFs and foreign funds
- Central banks
- Collective investment trusts (CITs)
- Wrap programs
- Insurance separate accounts
- Life insurance policies
- U.S. and international institutions.
Principal Global Investors Minimum Account Size
PGI’s account size minimums depend on the type of investment advisory program you enroll in. Account minimums for separately managed equity portfolios generally range from $10 million to $50 million, depending on the type of investment strategy your advisor utilizes.
The one for separately managed fixed income portfolios typically spans from $25 million to $50 million.
In addition, PGI may participate in wrap-fee programs with different sponsors. The sponsor would determine the account minimum but it’s usually $100,000.
PGI may waive account minimum requirements at its own discretion.
Services Offered by Principal Global Investors
PGI offers asset management services through a network of independent boutique advisors and other affiliates. These include:
- Principal Equities
- Principal Fixed Income
- Principal Real Estate Investors
- Principal Portfolio Strategies
- Aligned Investors
- Columbus Circle Investors
- Edge Asset Management
- Finisterre Capital
- Morley Capital Management
- Origin Asset Management
- Post Advisory Group
- Spectrum Asset Management
These firms generally provide advice on investing in equities and debt securities along with active and passive currencies.
In addition, the firm provides investment advisory services to separately managed accounts and wrap-fee programs (SMAs) sponsored by broker-dealers, banks or other investment advisors affiliated with broker-dealers. It typically directs trades in these accounts.
Principal Global Investors Investment Philosophy
PGI generally adopts a range of equity-based strategies. Some of these may involve passive or active management as well as strategic beta, which can be described as a rules-based passive approach.
In addition, the firm also turns to strategies covering a range of global fixed income strategies. This may involve various securities including corporate debt, municipal bonds and stable value funds.
Fees Under Principal Global Investors
PGI generally charges fees based on a percentage of your assets under management. These fees vary depending on the investment management strategy you’re involved in. We describe the firm’s current fee schedule below.
|International Equity||Fee Schedule|
|Global equity||0.50% on the first $50 million 0.45% on the next $50 million 0.40% Thereafter|
|International core equityInternational growth equityGlobal opportunities equity||0.55% on the first $50 million0.50% on the next $50 million0.45% thereafter|
|International Small Cap Equity||0.85% on the first $50 million0.80% on the next $50 million 0.70% Thereafter|
|Global Dynamic Risk Premium||0.30% on the first $100 million0.25% Thereafter|
|Emerging Global Leaders Equity Emerging Markets Equity Global Small Cap Equity||0.75% on the first $50 million0.70% on the next $50 million 0.60% Thereafter|
|Diversified International Equity International All Country Equity International Opportunities Equity||0.60% on the first $50 million 0.55% on the next $50 million 0.50% Thereafter|
|European Equity||0.50% on the first $50 million0.40% on the next $50 million0.30% Thereafter|
|U.S. Small Cap Equity U.S. Small Cap Select Equity U.S. Small Cap Opportunities Equity||0.60% on the first $50 million0.55% on the next $50 million0.45% Thereafter|
|U.S. Large Cap Dynamic Risk Premium||0.25% on the first $100 million 0.15% Thereafter|
|U.S. Strategic Beta Indexes||0.15% on the first $100 million 0.125% Thereafter|
|Aligned Investors||Fee Schedule|
|U.S. Blue Chip Equity U.S. Mid-Cap Equity||0.60% on the first $50 million 0.55% on the next $50 million 0.45% Thereafter|
|Focused Equity||0.70% on the first $50 million0.65% on the next $50 million0.55% Thereafter|
|Edge Equity||Fee Schedule|
|International Equity Income ADR Global Equity Income||0.60% on the first $50 million 0.55% on the next $50 million 0.50% on the next $100 million Negotiable on all thereafter|
|Capital Appreciation Equity Income||0.50% on the first $50 million 0.45% on the next $50 million 0.40% on the next $100 millionNegotiable on all thereafter|
|Concentrated Mid Cap||0.60% on the first $50 million 0.55% on the next $50 million 0.50% on the next $100 million Negotiable on all thereafter|
|Small Mid Cap Value/Equity Income SMID Equity Income||0.70% on the first $50 million 0.65% on the next $50 million 0.60% on the next $100 million Negotiable on all thereafter|
|Fixed income||Fee Schedule|
|Global Bonds Global Corporate Plus Global Investment Grade Corporate Core Plus Universal||0.35% on the first $50 mm0.30% on the next $50 mm0.25% on the next $50 mm0.20% thereafter|
|Core Plus Bond||0.30% on the first $100 mm 0.25% on the next $100 mm0.20% thereafter|
|Core Plus Bond Opportunistic||0.40% on the first $50 mm0.35% on the next $50 mm0.30% on the next $50 mm0.25% thereafter|
|Corporate Plus Investment Grade Corporate Intermediate Duration Investment Grade Corporate Long Duration Investment Grade Corporate Long Duration Fixed Income Credit Emphasis Long Duration Core Plus||0.30% on the first $50 mm 0.25% on the next $50 mm 0.20% thereafter|
|Emerging Market Broad||0.50% on the first $100 mm0.45% on the next $100 mm0.40% thereafter|
|Investment Grade Opportunistic||0.35% on the first $50 mm 0.30% on the next $50 mm 0.25% thereafter|
|Global Credit Opportunities Global Capital Structure Opportunities||0.35% on the first $50 mm0.30% on the next $50 mm0.25% thereafter|
|Global Sovereign Bonds||0.40% on the first $50 mm0.35% on the next $50 mm0.30% on the next $50 mm0.25% thereafter|
|Mortgage Backed Securities||0.30% on the first $50 mm 0.25% on the next $50 mm0.20% thereafter|
|Short Term Income||0.20% on the first $150 mm0.15% on the next $150 mm0.10% on the next $150 mm|
|Opportunistic Municipal||0.30% on the first $50 mm0.25% on the next $50 mm0.20% thereafter|
|Municipal California Fixed Income Municipal Fixed Income||0.25% on the first $100 mm0.20% on the next $100 mm0.15% thereafter|
|Asset Allocation Strategies||Fee Schedule|
|TR-Balanced TR-Conservative GrowthTR-Conservative Balanced TR-Flexible Income TR-Strategic Growth||0.60% on the first $50 mm 0.50% on the next $50 mm 0.40% on the next $100 mmNeogtiable thereafter|
|Active Income Global Income Active Balanced||0.60% on the first $200 mm 0.55% on the next $200 mm 0.45% on the next $400 mm Negotiable on all thereafter|
But note that these are advisory fees only. They generally don’t account for other expenses your account would bear such as custodial fees and charges associated with the underlying funds your portfolio invests in. For more details, refer to the fund prospectus as well as relevant advisory documents provided by PGI.
For SMA wrap programs, asset-based fees typically range from 0.22% to 0.55%. However, the program sponsor ultimately determines these fees. More information can be found in the sponsor’s disclosure brochure.
In addition, PGI may charge performance-based fees, which it would negotiate with the client.
What to Watch Out For
Because of its open architecture framework, PGI may accept fees from various sources including third-party affiliates that offer products recommended or sold by PGI advisors. This may create a conflict of interest as some advisors may be incentivised to recommend specific products for potential higher compensation. However, PGI works as a fiduciary and must uphold its duty to always provide advice in your best interests. In addition, the firm must disclose potential conflicts of interests under regulations that govern RIAs.
Also, the firm says that it works with non-high-net-worth individuals, yet its minimum is account requirement starts at $10 million.
Principal Global Investors Disclosures
PGI has no legal or disciplinary events in the past 10 years to disclose as of the time of this writing, according to Securities and Exchange Commission (SEC) data. For the latest disclosure information, you can access the firm’s Form ADV brochure and disclosure documents on the SEC’s official website.
Opening an Account With Principal Global Investors
To open an account with PGI, visit the firm’s website at https://www.principalglobal.com/ or call the firm at (800) 533-1390.
Where Is Principal Global Investors Located?
PGI can be found at the following address:
801 Grand Ave
Des Moines, Iowa 50309
All information was accurate as of the writing of this article.
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