Ventura v. Principal Management Corporation



On December 30, 2015, several shareholders in the Principal Funds filed an excessive fee lawsuit against Principal Management Corporation in U.S. District Court for the Southern District of Iowa.  The complaint alleges that Principal delegates substantially all of its responsibilities for providing advisory services to third-party sub-advisers while retaining approximately two-thirds of the advisory fees.

 

In fiscal year 2014, Principal received $143 million in advisory fees from 6 of its funds.  It delegated its advisory responsibilities to sub-advisers, paying them approximately $46 million during the same year and retaining more than $96 million of the fee for supervising the sub-advisers.

 

After a period of discovery, this case was dismissed voluntarily by the plaintiffs, without any monetary compensation, on October 16, 2017.

 

  • Parties Dismiss the Lawsuit
    On October 16, 2017, the plaintiffs agreed to voluntarily dismiss the case after a one-year period of discovery. No monetary compensation was paid to the plaintiffs by Principal, according to the stipulation of dismissal.
  • Excessive Fee Complaint Filed Against Principal Management Corporation
    On December 30, 2015, several shareholders of the Principal Funds filed an excessive fee lawsuit alleging that Principal was retaining two-thirds of the advisory fees it was collecting from 6 retail mutual funds after delegating substantially all of its advisory services to third-party sub-advisers.

On December 30, 2015, several shareholders in the Principal Funds filed an excessive fee lawsuit against Principal Management Corporation in U.S. District Court for the Southern District of Iowa.  The complaint alleges that Principal delegates substantially all of its responsibilities for providing advisory services to third-party sub-advisers while retaining approximately two-thirds of the advisory fees.

 

In fiscal year 2014, Principal received $143 million in advisory fees from 6 of its funds.  It delegated its advisory responsibilities to sub-advisers, paying them approximately $46 million during the same year and retaining more than $96 million of the fee for supervising the sub-advisers.

 

After a period of discovery, this case was dismissed voluntarily by the plaintiffs, without any monetary compensation, on October 16, 2017.

 

Document Title: 
Parties Dismiss the Lawsuit
Document Desc: 
On October 16, 2017, the plaintiffs agreed to voluntarily dismiss the case after a one-year period of discovery. No monetary compensation was paid to the plaintiffs by Principal, according to the stipulation of dismissal.
Document Title: 
Excessive Fee Complaint Filed Against Principal Management Corporation
Document Desc: 
On December 30, 2015, several shareholders of the Principal Funds filed an excessive fee lawsuit alleging that Principal was retaining two-thirds of the advisory fees it was collecting from 6 retail mutual funds after delegating substantially all of its advisory services to third-party sub-advisers.