Principal® Launches Fintech-Enabled Portfolios for Advisors With 37 New Model Portfolios

By: Principal Global Investors via Business Wire

May 02, 2022 at 09:00 AM EDT

Principal Global Investors^® today announced an expanded model portfolios product offering featuring 37 new portfolios and a fintech-enabled portfolios solution to help advisors increase client customization, scale, and efficiency.

“Advisors want solutions that are simple to adopt, easy to manage, and deliver results for their clients and businesses,” said Jill Brown, managing director, U.S. Wealth Platform, of Principal Global Investors. “In combination with our fintech investment solution, our new institutional-caliber, open-architecture model portfolios integrate mutual funds, ETFs, individual equities, and even direct index options into one, unified account for advisors to help achieve desired client outcomes.”

The new model portfolios are managed by the asset allocation investment team of Principal Global Investors. They include mutual funds and ETFs from diversified asset managers and are categorized into four interchangeable, risk-based suites to help advisors expand their businesses and personalize their clients’ investment portfolios:

Two core, multi-manager portfolio suites (one with allocations to alternatives)
One core ETF portfolio suite
One growth and income multi-manager portfolio suite

The three core suites all seek capital appreciation. The growth and income suite will prioritize total returns.

To provide an end-to-end solution for advisors utilizing the new model portfolios, Principal collaborated with Smartleaf Asset Management (SmartleafAM) on a modern, fintech-enabled portal. This unique investment platform helps advisors meet individual client needs by customizing direct indexing options, automating tax management and trading requirements, and incorporating environmental, social, and governance (ESG) preferences.

“Our fintech-enabled portfolios can be highly automated and highly customized to help advisors unlock more of their time while still delivering a personalized investment experience for clients,” Brown said. “We were very thoughtful when creating this platform with SmartleafAM. The ability to combine multiple offerings in a holistic solution can be a differentiator for the advisor community.”

The Principal fintech-enabled portfolios integrate into the existing infrastructure and tech stacks of advisors without needing to change operational processes.

“Principal’s fintech-enabled portfolios, implemented by Smartleaf Asset Management, enable advisors to offer investors highly disciplined investment solutions, high degrees of customization, and automated tax management – while freeing the advisors to spend their time on what they do best – focusing on clients,” said Jerry Michael, president of Smartleaf Asset Management. “This is where the industry is heading, and this offering makes Principal a leader in the asset management industry.”

Principal continues to grow its suite of model portfolios and team to support it, including hiring Michael Casciano last year to lead and develop the firm's long-term strategy. Combined with the Principal Wilshire Diversified Portfolios launched in May 2021, the $579.4 billion¹ asset management firm now has 62 model portfolios available to advisors.

About Principal Global Investors^®

Principal Global Investors^® leads global asset management at Principal^®. As a multi-investment team firm, we bring a focused perspective and offer expertise across a host of asset classes.

At our core, we are driven by our purpose to help investors and businesses achieve their financial goals. Our global investment professionals deliver investment solutions for public and private pension funds, foundations and endowments, central banks, insurance companies, sub-advisory arrangements, sovereign wealth funds and individual portfolios.

Principal Global Investors manages approximately $579.4 billion in assets on behalf of over 800 institutional clients located in over 80 markets as well as retirement plans and individual clients, reflecting our worldwide market reach and experience and our commitment to high-quality research and service (as of March 31, 2022). To find out more, visit us at principalglobal.com.

About Smartleaf Asset Management

Smartleaf Asset Management, LLC (SmartleafAM) is a subsidiary of Smartleaf, Inc., whose automated rebalancing workflow platform helps its clients deliver customized tax-efficient portfolios at scale. SmartleafAM’s sub-advisory service leverages Smartleaf’s software to automate the management of unified managed accounts, making direct indexes as easy to use as ETFs. For more information on SmartleafAM, visit www.smartleafam.com.

Smartleaf Asset Management (SmartAM) and Principal are not affiliated.

Customization such as screening for ESG preferences is done by the financial advisor at the client portfolio level based on the needs and preferences of an individual client. Activation is subject to agreements and other limitations. Automation and customization features described are available through SmartleafAM. Principal does not offer these services.

© 2022 Principal Financial Services, Inc. Principal^®, Principal Financial Group^®, and Principal and the logomark design are registered trademarks of Principal Financial Services, Inc., a Principal Financial Group company, in the United States and are trademarks and services marks of Principal Financial Services, Inc., in various countries around the world.

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¹ As of March 31, 2022