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.

 

This case is currently in discovery.

 

  • 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.

 

This case is currently in discovery.

 

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.