Principal Advantage(SM) Product Fact Sheet
Product Principal Advantage is funded by the Principal Investors
Description Fund, a mutual fund family comprised of 35 investment
portfolios (funds) sub-advised by member companies of the
Principal Financial Group(R) or unaffiliated sub-advisors.
Principal Advantage meets the needs of Internal Revenue Code
Section 401(a) qualified defined contribution plans. And, it
offers a wide range of plan services, similar to those
available today with our FIA group annuity contract product.
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Competitive By offering our own mutual funds, Principal Advantage
Advantages allows us to compete more effectively with mutual fund
companies.
Our "advantages" are our experience, full service package,
local service and personal attention. For more than 55 years
we've been providing retirement plan services and we're the
nation's 401(k) leader.
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Target Audience Our target audience is employers with $3 million or more
in retirement funds who typically use distributors such as
stockbrokers, registered investment advisors and fee-based
consultants.
Using our special purchase plan, employers with $2.5 million
to $3 million in retirement funds are also candidates for
this product.
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Share Classes Four classes of shares are available for these funds:
o Advisors Select (with agent) - these shares are available
if the plan invests at least $3 million (but less than
$10 million).
o Select (no agent) - these shares are available if the
plan invests at least $3 million (but less than $10
million).
o Advisors Preferred (with agent) - these shares are
available if the plan invests at least $10 million.
o Preferred (no agent) - these shares are available if the
plan invests at least $10 million.
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Commission Scale We pay asset-based compensation on a graded 1% scale the
first four quarters. For ongoing years, we pay a flat 25
basis points on assets. All assets are applied to the
pension volume bonus.
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Available Date Subject to SEC timing for release of the Principal Investors
Fund, we expect Principal Advantage will be available to
sell in mid-December 2000.
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For Registered Representative Use Only - Not to be
Distributed to the Public.
Principal Advantage(SM) Product Fact Sheet
(continued)
Investment Options
Principal Investors
Fund Name Sub-Advisor Investment Style
Money Market PCII* Stable Value
High Quality Short-Term Bond PCII Income
High Quality Interm-Term Bond PCII Income
High Quality Long-Term Bond PCII Income
Government Securities PCII Income
Bond & Mortgage Securities PCII Income
Balanced Invista and PCII Domestic Hybrid
European BT Funds Foreign
Pacific Basin BT Funds Foreign
International Emerging Markets Invista Foreign
International I Invista Foreign
International II BT Funds Foreign
International SmallCap Invista Foreign
LargeCap Blend Invista Large Blend
Partners LargeCap Blend Federated Large Blend
LargeCap Growth Invista Large Growth
Partners LargeCap Growth I Morgan Stanley Large Growth
Partners LargeCap Growth II American Century Large Growth
Partners SmallCap Growth I Neuberger Berman Small Growth
Partners SmallCap Growth II Federated Small Growth
LargeCap S&P 500 Index Invista Large Blend
LargeCap Value Invista Large Value
Partners LargeCap Value Sanford C. Bernstein Large Value
MidCap Blend Invista Medium Blend
MidCap Growth Invista Medium Growth
Partners MidCap Growth Turner Investment Medium Growth
Partners
MidCap S&P 400 Index Invista Medium Blend
MidCap Value Invista Medium Value
Partners MidCap Value Neuberger Berman Medium Value
SmallCap Growth Invista Small Growth
SmallCap Blend Invista Small Blend
SmallCap S&P 600 Index Invista Small Blend
SmallCap Value Invista Small Value
Real Estate Principal Capital Sector
Real Estate Investors
Technology BT Funds Sector
* Principal Capital Income Investors
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Special Representatives must have their appropriate Series 6 or 7 and
Considerations Series 63 to offer the product. A final prospectus must be given
to all parties before discussing the product with the public.
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A registration statement relating to these securities 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 the
registration statement becomes effective. This communication
shall not constitute an offer to sell or the solicitation of
an offer to buy nor shall there by 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.
This security is being offered in connection with the issue
of new shares of Principal Investors Fund Inc. This
information must be accompanied by a preliminary prospectus.
A final prospectus will be sent to you once it is available.
Read the prospectus carefully before you invest or send
money. Principal Investors Fund is distributed by Princor
Financial Services Corporation, Member SIPC, Des Moines,
Iowa 50392-2080. 1-800-247-4123. Principal Life Insurance
Company and Princor are member companies of Principal
Financial Group.
