[Slide 1]
EXPANDING YOUR OPPORTUNITIES
Firm name
Current Date
(logo)
Principal(R)
Financial
Group
For broker dealer use only. Not for use with the public.
[Slide 2]
Our Mission Statement
"To help businesses and people meet their
financial goals by providing
quality retirement services
and related insurance and financial services."
For broker dealer use only. Not for use with the public.
With a focus on small- and medium-sized businesses and institutional asset
management, our goal is to help businesses and individuals meet their financial
goals.
[Slide 3]
Our Commitment to
You and Your Clients
The Principal Financial Group
o Over 55 years pension experience
o $117 billion in assets under management
o Fortune 500 company
o Over 50 local pension sales and service offices
o Team of more than 4,000 people to serve you
For broker dealer use only. Not for use with the public.
The Principal(R) name means a commitment to the small-to-medium size business
market, sales support for you, and outstanding products and services for your
clients.
[Slide 4]
A Global Leader
Map of the world with service areas notated.
For broker dealer use only. Not for use with the public.
Over the past 120 years, we've grown to become a globally diversified family of
financial services companies operating from more than 250 locations worldwide.
We offer a variety of products and services in Asia, Australia, Europe, Latin
America and U.S. Our goal is to become the leading retirement plan provider in
the world.
[Slide 5]
An Industry Leader
Map of the U.S. with offices notated.
For broker dealer use only. Not for use with the public.
With more than 50 pension sales and service offices across the country, we
provide sales support at the local level for you and on-site service for your
clients. We're there where and when you need us.
[Slide 6]
The Principal Retirement Funds
Asset Growth
[Bar Chart]
$Billions/1995
For broker dealer use only. Not for use with the public.
During the five years from 1995 - 1999, the amount of retirement funds in plans
with administrative services provided by The Principal(R) increased by more than
60%, from $38.5 billion in 1995 to over $62 billion at the end of 1999.
[Slide 7]
The Principal Retirement Funds
Asset Growth
[Bar Chart]
$Billions/1995/1996
For broker dealer use only. Not for use with the public.
[Slide 8]
The Principal Retirement Funds
Asset Growth
[Bar Chart]
$Billions/1995/1996/1997
For broker dealer use only. Not for use with the public.
[Slide 9]
The Principal Retirement Funds
Asset Growth
[Bar Chart]
$Billions/1995/1996/1997/1998
For broker dealer use only. Not for use with the public.
[Slide 10]
The Principal Retirement Funds
Asset Growth
[Bar Chart]
$Billions/1995/1996/1997/1998/1999
For broker dealer use only. Not for use with the public.
[Slide 11]
The Principal Retirement
Funds Today
[Pie Chart]
For broker dealer use only. Not for use with the public.
The Principal Financial Groups has over $117 billion in assets under management.
Of that amount, more than 50% or $62.1 billion are held in retirement plans.
[Slide 12]
Continuum of
Retirement Plan Solutions
Principal(R)
Financial
Group
o Principal Life Insurance Company
o Trustar SM Retirement Services
o Professional Pensions, Inc.
o Princor Financial Services Corporation
Princor Financial Services Corporation, Professional Pensions, Inc., Principal
Life Insurance Company and Trustar Retirement Services are members of the
Principal Financial Group.
For broker dealer use only. Not for use with the public.
Member companies of the Principal Financial Group provide a continuum of
retirement plan solutions to help meet all your clients' retirement plan needs.
[Slide 13]
The 401(k) Leader
[Bar Chart]
Comparison of The Principal and 9 other competitors.
For broker dealer use only. Not for use with the public.
According to "CFO Magazine April/May 2000," The Principal provides
administrative services to more 401(k)s than any other insurance company, bank
or mutual fund in the country.
[Slide 14]
Professional Help
Personal Attention
Local Support
o Local marketing professionals
o Service reps
o Executive Benefit reps
For broker dealer use only. Not for use with the public.
You'll receive expert guidance every step of the way. Our local representatives
are among the best trained in the industry. Better yet, more than 50 pension
sales and service offices around the country assure you receive the attention
you deserve.
[Slide 15]
Corporate Support
o Implementation teams
o Relationship managers
o Consulting advisors
o Legislative experts
For broker dealer use only. Not for use with the public.
In addition to local sales and service support, you'll have access to our
executive benefit specialists and implementation teams.
[Slide 16]
Enrollment Assistance
o Customized enrollment
materials
o On-site meetings
o Internet enrollment
o Management training
o Personalized retirement
illustrations
For broker dealer use only. Not for use with the public.
Your client's retirement plan success depends on employee participation.
Award-winning enrollment materials help employees to understand the importance
of participating in the plan. We can conduct on-site enrollment meetings or
train your clients' staff members to conduct the meetings. And our personalized
retirement illustrations help employees know how much they need to save for
retirement.
[Slide 17]
Retirement Service Center
o Access
- Consolidated view
For broker dealer use only. Not for use with the public.
An example of our commitment to customer service is our technologically advanced
Internet-based Retirement Service Center. By logging on, members can access a
consolidated view the product relationships they have with us.
[Slide 18]
Retirement Service Center
o Management
- Personalized rate of return
- Investment transfers
- Direction changes
- Auto-rebalancing
For broker dealer use only. Not for use with the public.
Members manage their plans online by viewing their personalized rate of return,
making investment transfers and direction changes, and rebalancing their
portfolios automatically.
[Slide 19]
Retirement Service Center
o Education
- Investor information
- Fund performance
For broker dealer use only. Not for use with the public.
Members gain useful information about their plan with educational materials,
including informative investment-related articles and fund performance.
[Slide 20]
Personal Customer Financial Help
Through Principal Connection
o Free financial help for non-key members and
their families
o Key employees can be referred back to the
broker for assistance
o Other Principal Financial Group products
For broker dealer use only. Not for use with the public.
Non-key plan members and their families can call us toll-free Monday - Friday
for free financial help. This service frees up your time to help your clients'
key employees. You get a commission for any Principal Financial Group products
they buy.
[Slide 21]
Ongoing Member Support
o Award-winning plan statements
o Quarterly magazine
o Internet access
o Toll-free telephone access
o Toll-free benefits assistance
For broker dealer use only. Not for use with the public.
Communication doesn't stop after members are enrolled. Awarded the Dalbar Seal
of Excellence, our member statements keep them informed about the status of
their retirement savings. Members receive Plan Ahead. Get Ahead., a quarterly
magazine from the publishers of Family Money magazine. And in addition to
Internet and telephone access to their accounts, members can also call our
counselors toll-free for help with their retirement plans.
[Slide 22]
Commitment to Technology
Express Processing
o Faster, more accurate
o Images paper digitally
o Investories work and
manages workflow
electronically
o Uses "smart systems"
For broker dealer use only. Not for use with the public.
We're committed to providing the technology needed to provide your clients with
the most cost-effective retirement plan services available. In 1999, we spent
$50 million supporting ongoing pension operations, plus another $50 million
developing new pension applications, systems and products.
One example of our commitment to technology is our Express Processing system - a
name we've given to a collection of revolutionary software programs. It uses
"smart systems" and digital imaging of paper to electronically inventory all
work and manage workflow. Because of Express Processing, your clients receive
faster, more accurate retirement plan services for less.
[Slide 23]
Investment Services
o Deposit Director asset allocation assistance
o Investment advice from Financial Engines (R)
o Principal Connection
o You - the broker
For broker dealer use only. Not for use with the public.
Your clients can add packaged services to their plans. Deposit Director helps
members decide how to invest their new deposits. Better than life cycle style
funds, our Deposit Director services recognizes that "not all 50-year olds have
the same risk tolerance." Members can also obtain third-party investment advice
online from Financial Engines, an investment advice service. And, Principal
Connection counselors are available to assist non-key employees with their
investment questions, while key employees can be referred back to the broker for
additional financial assistance.
[Slide 24]
Compliance Assistance
o Required tests
o Government filings
o Audit package
For broker dealer use only. Not for use with the public.
Keeping your clients' plan in compliance is important. It lets them keep their
qualified status so they can reduce their taxes while their employees defer
taxes until they retire. We perform a variety of standard tests and prepare your
clients' government filings in a signature ready format. We also provide a
complete package for their auditors, if they need an annual audit.
[Slide 25]
Our Service Guarantee
[picture of Service Guarantee]
For broker dealer use only. Not for use with the public.
We're so confident your clients will be satisfied with our service, we offer a
money-back service guarantee. If there is a problem, we'll either fix it to his
or her satisfaction or waive the fee paid for the service.
[Slide 26]
Principal Advantage SM
Principal Investor's Funds
o Thirty-five funds with nine sub-advisors
- Principal Capital Income Investors
- Principal Capital Real Estate Investors
- Invista Capital Management
- BT Funds Management
- Federated
- Morgan Stanley Dean Witter
- American Century
- Sanford Bernstein
- Turner Investment Partners
- Neuberger Berman
For broker dealer use only. Not for use with the public.
We give your clients and their employees the choice of 35 funds managed by ten
well-know sub-advisors. Best yet, all transactions are seamless.
[Slide 27]
Respected Money Managers
o Committed to remaining within their style
box
o Management processes in place which could
be replicated over time
o Marketing support readily available
o Good historical performance
For broker dealer use only. Not for use with the public.
Our portfolio management group includes other Principal Financial Group members,
such as BT Funds Management and Invista Capital Management. But our depth of
management extends beyond The Principal. We employed these four selection
criteria to carefully choose our sub-advisors. Your clients can choose from
partner funds managed by Turner Investments, Federated, Morgan Stanley Dean
Witter, American Century, Sanford Bernstein and Neuberger Berman.
[Slide 28]
Top-quality Sales Materials
For broker dealer use only. Not for use with the public.
Once you've made the decision to offer our retirement plan services to your
clients, we'll give you the tools needed to get you up and running.
[Slide 29]
Recordkeeping Charges
o $1000 Start up fee
o $2000 + member charge based on average
account value
- $0 to $15k $35
- $15k to $30k $25
- $30k to $50k $15
- over $50k $0
For broker dealer use only. Not for use with the public.
[Slide 30]
Range of Fund Operating
Expenses
Share Class Criteria Total Fund Total Fund
Operating Operating
Expenses Expenses
(Commission) (No Commission)
Advisors Select $3 million to 0.90%-2.10% 0.53%-1.73%
Class $10 million
Advisors $10 million+ 0.72%-1.92% 0.41%-1.61%
Preferred Class
For broker dealer use only. Not for use with the public.
[Slide 31]
Competitive Commissions
o Collected through 12b-1
o First year
- 1% on first $4 million
- .50% on next $6 million
- .25% on assets over $10 million
o 2nd year and beyond
- .25% on all assets
For broker dealer use only. Not for use with the public.
The compensation you receive is a direct benefit of selling our retirement plan
product services to your clients. You'll find our commission structure very
attractive.
[Slide 32]
Why Partner with the Principal
Financial Group?
o Grow your business
o Increase your revenues
o Decrease your time commitment
o Team witht he country's 40l(k) leader
(logo)
Principal(R)
Financial
Group
For broker dealer use only. Not for use with the public.
[Slide 33]
A registration statement relating to these securites has been filed with the
Securities and Exchange Commission but has not yet become effective. These
securities may not be sold nor may offers to buy be accepted prior to the time
that the registration statement becomes effective.
This communication shall not constitute an offer to sell nor the solicitation of
an offer to buy nor shall there be any sale of these securities in any State in
which such offer, solicitation or sale would be unlawful prior to registration
or qualification under the securities laws of any such State.
For more complete information about the Principal Investor's Funds including
charges and expenses, please write or call for a free preliminary prospectus. A
final prospectus will be sent to you once it is available. Read the prospectus
carefully before you invest or send money.
Mutual funds provided through Princor Financial Services Corporation, Member
SIPC, Des Moines, Iowa 50392, (800) 247-4123.
Plan administrative services provided by Principal Life Insurance Company, Des
Moines, Iowa 50392.
Principal Life Insurance Company and Princor are member companies of the
Principal Financial Group.
For broker dealer use only. Not for use with the public.
PD 133
