Principal Global Investors Trust Co. is in the crosshairs of a lawsuit by 401(k) plan investors whose assets were allegedly invested in Principal’s target date funds, which carried expensive, underperforming investment options.
Principal Global—a subsidiary of Principal Financial Group Inc.—consistently invested all assets of its target date funds into costly and poorly performing index funds, vehicles, and share classes and failed to timely remove and replace those funds with lower cost alternatives, better performing options, according to a lawsuit filed April 16 in the U.S. District Court for the Southern District of Iowa.
Principal disagrees with the allegations in the ...
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