Brief introduction of principal financial group in the United States

As one of the top 500 enterprises in the world, Principal Financial Group is one of the largest pension management institutions in the United States, famous for managing retirement plans, and one of the largest providers of 40 1(k) plans in the United States. The number of 40 1K plans managed exceeds that of any bank, mutual fund or insurance company in the United States. It has served more than150,000 plan members, and by June 2005, the assets managed by the group had exceeded 175 billion US dollars. Covering America, Europe, Australia, Asia and other parts of the world. Principal Group has won excellent ratings from Fortune and Forbes for many times. In 2005, Lipper, an authoritative fund evaluation agency, won the first place in "Overall Performance" and "Mixed Assets". In many years of global investment practice, people have summed up an effective stock selection model-principal ISAR model.

ISAR model evaluates stock investment opportunities from four aspects, namely, improved business fundamentals, sustainability, attractive relative valuation and rising expectations.

In every aspect, the model has a scientific index system. Generally speaking, the improvement of fundamentals and the continuity of improvement have solved the problem of choosing "good companies"; The latter two groups of indicators, namely low valuation and expected improvement, solve the problem of choosing "good stocks". A company should be not only a good company, but also a good stock in the capital market, which is the core idea of Principal ISAR model. Based on the essence of value investment, this model pays attention to the influence of investors' expectations on the market. Specifically, the fundamental improvement examines the basic factors that affect whether a company is worth investing, such as the improvement of industry, the improvement of industrial environment, the expansion of scale, the rise of product prices, the decline of costs, and the improvement of management level. The sustainability of fundamental improvement is to highlight a company with long-term investment value and pay attention to the ability, process and sustainability of value creation of listed companies, so as to achieve permanent value growth; Attractive relative valuation tries to find the deviation between the market and the actual value of the company, and the degree of underestimation determines the size of stock investment opportunities; The expected promotion of investors is to grasp the process of the influence of new information on the market when the company's fundamentals change, and carefully analyze the process of this change being transmitted to the stock price change, so as to better grasp the investment opportunities.

Generally speaking, the improvement of fundamentals and the continuity of improvement have solved the problem of choosing "good companies"; The latter two groups of indicators, namely low valuation and expected improvement, solve the problem of choosing "good stocks". It can be considered that having good companies and stocks at the same time is the core idea of ISAR model.