Principal Expands Featured Partner Program to Include Private Market Strategies in Retirement Plans — Principal Financial Group, Inc.

Event summary

Principal Financial Group expanded its Featured Partner Program to include private market strategies within retirement plans.
The program will support private market exposure as part of professionally designed investment products and services.
Principal plans to collaborate with asset managers and fiduciaries to launch collective investment trusts (CITs) for U.S. retirement plans.
Current private market managers participating in the expanded program include AllianceBernstein, Apollo, Ares, Blackstone, Blue Owl, Carlyle, Franklin Templeton, Goldman Sachs, KKR, Morgan Stanley Investment Management, Neuberger, Partners Group, PGIM, and Principal Asset Management.

The big picture

Principal's expansion of its Featured Partner Program reflects a broader industry trend towards incorporating private market strategies into retirement plans. This move aims to provide plan sponsors and financial professionals with more diversified investment options, potentially enhancing long-term retirement outcomes for participants. The collaboration with leading private market managers underscores the strategic importance of private markets in the current investment landscape.

What we're watching

Regulatory Headwinds: Whether evolving regulatory considerations related to private market exposure will impact the adoption of these strategies within retirement plans.
Execution Risk: The pace at which Principal can integrate private market strategies into its existing investment products and services without compromising participant suitability and fiduciary oversight.
Market Dynamics: How the inclusion of private market strategies will affect the overall diversification and long-term retirement outcomes for participants.