Principal Financial Group plans to offer investment adviser services to individuals that will incorporate their own assets and company retirement plans into one investment strategy.
Principal Financial Advisors, a subsidiary offering asset allocation services to defined contribution plans, plans to launch the service by mid-1996, said Larry Zimpleman, vice president of Principal Financial Group. The firm is waiting for the Department of Labor to issue its guidelines on investment education and advice before launching the product, he said.
The product, called Total Asset Manager, will allocate the employees' assets outside of their company retirement plan to complete their investment portfolio. Clients will talk to dedicated investment analysts who will evaluate their situation factoring in their retirement plan, help allocate their other assets among Principal's funds and provide regular updates.
The product will be fee-based, and will probably charge about 50 basis points, much lower than wrap fee programs, said Mr. Zimpleman. It is aimed at the individual investor who doesn't have enough assets to qualify for the products aimed at high-net-worth individuals. The Principal has not set a minimum account size, but Mr. Zimpleman said the investors probably will have $25,000 to $250,000 in assets.
The idea is to link participants with the Principal as their financial company of choice, said Mr. Zimpleman. He noted the clients will come from among the participants in defined contribution plans served by the Principal.