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Principal Funds Board of Directors Votes to Extend Participation in U.S. Treasury Department's Temporary Guarantee Program for Money Market Funds
December 19, 2008 - The Board of Directors of Principal Funds announced that it will continue to participate in the U.S. Treasury Department's Temporary Guarantee Program for money market funds, with an extension to April 30, 2009. This date is the program's expiration unless extended by the U.S. Treasury.
Under this program first announced September 19, the U.S. Treasury Department would make assets available from the Exchange Stabilization Fund for up to $50 billion to guarantee the payment of money market mutual funds whose net asset value (NAV) falls below $1.00 per share. This stabilization program is designed to provide coverage to the Principal Funds Money Market Fund shareholders of record as of the close of business on September 19, 2008, based on the number of shares invested in the fund, per the guidelines set out in the program.
Any increase in the number of shares an investor holds after the close of business on September 19, 2008, will not be guaranteed. If a customer closes their account, any future investment in the fund will not be guaranteed. And if the number of shares an investor holds fluctuates over the period, the investor will be covered for either the number of shares held as of the close of business on September 19, 2008, or the current amount, whichever is less.
The purpose of this U.S. Treasury program is to restore investor confidence in money market funds. According to the Investment Company Institute (ICI), money market funds have $3.4 trillion in assets. The Principal Funds Money Market Fund has been sub-advised by Principal Global Investors since December 6, 2000, and had assets of $2.71 billion* as of September 30, 2008.
For more information about Principal Funds' participation in this program, please contact Shareholder Services at 800-222-5852.
Source: U.S. Treasury, Investment Company Institute.
*Includes all share classes.
A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.
An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the Fund.
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While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. For more information about our funds, including their full names, please see the Principal Funds, Inc. prospectus or call Customer Service at 1.800.222.5852.
A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.
This Web site was created and is maintained by Principal Funds Distributor, Inc. exclusively, and not by the Directors of the funds.
Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc., member of the Principal Financial Group®. Principal Funds Distributor, Principal Shareholder Services, Principal Management Corporation and its affiliates, and Principal Funds, Inc. are collectively referred to as Principal Funds.
Not FDIC or NCUA/NCUSIF insured - May lose value - No bank guarantee - Not a deposit - Not insured by any federal government agency
