Offer clients downside protection with uncapped market participation
The PVC U.S. LargeCap Buffer Series offers four defined outcome investment options available exclusively through Principal variable annuities. These funds track the S&P 500 Price Return Index.
Similar to other defined outcome investments, our buffer accounts help protect against market volatility with a downside buffer. But we also provide full participation up to 10% and partial participation after 10%, meaning your client continues to benefit from investment gains during strong markets.
All the facts in one convenient place. Download your copy.
All the facts in one convenient place. Download your copy.
These investments are designed to offer:
Investments automatically roll over into new outcome period at year anniversary.
10% downside buffer
Protects clients from first 10 percent of any market losses.
Uncapped market participation
Client gets first 10% of market gains, and partial participation in the market above that 10%.
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Principal buffer investments
- Are fully liquid. Clients can move money in and out of the accounts at any time.*
- Reset buffer and participation rates annually.
- Work in combination with both equity and fixed income holdings to reinforce investment goals and risk tolerance.
*Investing after the start date or moving money out before the end date will affect the expected outcome.
Downside buffers help protect clients from volatile markets
The chart below shows the gains needed to recover from a down market both with and without a buffer. The buffer greatly reduces the amount your clients will need to regain after market losses.
Gains needed to recoup loss
With buffer
Without buffer
-10% loss
0%
11.1%
-20% loss
11.1%
25%
-30% loss
25%
42.86%
-10% loss
0%
11.1%
-20% loss
11.1%
25%
-30% loss
25%
42.86%
Use as part of a retirement savings plan
Principal PVC U.S. LargeCap Buffer Series can work in combination with both equity and fixed income holdings to reinforce your clients’ investment goals and tolerance for risk. They are available with our Principal® Pivot Series and Principal® Lifetime Income Solutions II variable annuities, as well as most previously issued Principal variable annuities.
For financial professional use only. Not for distribution to the public.
Variable annuities are long-term investment products designed for retirement purposes and are subject to market fluctuation, investment risk, and possible loss of principal. Variable annuities contain both investment and insurance components and have fees and charges, including mortality and expense, administration, investment option fees. An annuity's value fluctuates with the market value of the underlying investment options, and all assets accumulate tax-deferred. Withdrawals of earnings are taxable as ordinary income and, if taken prior to age 591/2, may be subject to an additional 10% federal tax. Withdrawals will reduce the death benefit and cash surrender value.
Annuity products and services are offered through Principal Life Insurance Company. Securities offered through Principal Securities, Inc,. member SIPC, and/or independent broker/dealers. Principal Life and Principal Securities are members of the Principal Financial Group®, Des Moines, IA 50392, principal.com.
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