The Principal Financial Group is expanding its fund lineup to attract the attention of licensed advisors and registered reps to sell its 401(k) product.

The firm has brought out 35 new funds in one fell swoop; 27 new in-house funds that are clones of in-house insurance separate accounts currently offered by Principal and eight subadvised funds which are new funds with new subadvisors.

In addition, the MutualFundWire.com has learned that Principal has registered eight more funds that have not yet cleared the SEC. Six of the funds are lifecycle funds and are advised by Principal. The other two are subadvised.

Furthermore, Principal officials are "going to keep eyes open for other opportunities," including sector funds.

"We are doing this now because we are trying to get at a new distribution channel," explained Chris J. Bowman, vice president of marketing. "We are trying to get at the market place of trusted advisors who sell funds. Specifically those with an affinity for mutual fund product versus the insurance product."

Bowman explained that the 35 new institutional funds were specifically created and designed for 401(k) offerings. They are intended for plans with $3 million or more in plan assets. The 401kWire.com has learned that the insurer has another eight funds in registration, including six lifecycle funds and two additional subadvised funds.

The sub-advisors to the new funds include Alliance Capital Management through Sanford C. Bernstein, American Century Investment Management, BT Funds Management, Federated Investment Management Company, Invista Capital Management, Morgan Stanley Asset Management, Neuberger Berman Management, Turner Investment Partners, Principal Capital Income Investors, and Principal Capital Real Estate Investors. 

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