Principal Financial Group 2008 Annual Report Download - page 11

A smart mix of products and investments provides us flexibility.
Our broad range of insurance and investment
products, diverse customer base and innovation
continue to strengthen The Principal:
n A proven approach. Our Total Retirement SuiteSM
approach has made us a leader in retirement-related
benefits. We remain the number one provider of
bundled 401(k) plans, defined benefit plans and
ESOP plans, as well as the number one recordkeeper
for nonqualified deferred compensation plans1.
n Expanding our reach. Principal International’s diverse
line-up proved beneficial as well. In Mexico, for
instance, our retail mutual fund business grew at a time
the industry overall was down. Overall, Principal
International’s customer base grew by 12 percent
to 7.2 million.
n Going green. Principal Real Estate Investors, the real
estate arm of Principal Global Investors, expanded its
commitment to the growing green real estate market.
In June, Real Estate Finance & Investment magazine
awarded the company its Green Giant Award,
recognizing the company’s portfolio of more than
$1.3 billion of green properties and its efforts to retrofit
existing properties so that they conform to Leadership
in Energy and Environmental Design standards.
n Meeting increasing demand for disciplined asset
allocation strategies. As of Dec. 31, 2008, more than
1 million retirement plan participants invested in
Principal LifeTime portfolios, our target date funds,
with more than 70 percent of plan sponsors offering
these options, 35 percent as a default. In addition,
our five actively managed Strategic Asset Management
(SAM) portfolios offer asset allocation solutions
for investors with varying risk tolerances. Our SAM
funds now have nearly $7.5 billion in assets under
management.
n Helping employers as they react to economic pressures.
In addition to our array of employer-sponsored benefit
products, we also provide voluntary products that enable
employers to offer benefits that matter to employees at
a time when budgets are squeezed. In 2008, group
voluntary products accounted for nearly 25 percent of
our $211 million in group specialty benefits sales,
which include group dental, vision, life and disability.
We’ve long believed it makes good business sense for
The Principal to have diverse lines of business that create
diverse streams of income. We’ve seen the wisdom in
that over many years; we’re seeing it again now.
1Spectrem Group analysis of fully bundled 401(k) plans, 2008; Investment Advisor Magazine,
November 2008; PLANSPONSOR, June 2008; PLANSPONSOR, January 2009 (based on
number of plan records kept).
2008 Year in Review | Diversification 9