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The Principal Global Diversified Income Fund receives an overall 5-star rating from Morningstar

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Since its launch in December 2008, the Fund has sought consistent cash income through a diversified, yield-focused investment approach. Multiple niche managers use tailored investment strategies to help provide different sources of income within a single fund.

Dave Reichart, Portfolio Advisor of the Principal Global Diversified Income Fund, answers some questions about the Fund, and discusses why it was developed and how it's unique. He also describes some recent product enhancements made to the Fund, and explains why we think it has been successful during its first three years.

Positioning the Fund with clients

In today's low interest rate environment we believe that many investors, including those individuals preparing for retirement, need to look outside of traditional fixed-income strategies. The Fund is designed to help investors generate income despite low interest rates through exposure to multiple alternative asset classes.

The Fund's equity holdings seek to provide portfolio tailwinds when momentum favors the stock markets, and the added diversification can help manage portfolio risk.

Tools to support your success

Find the tools to educate your clients about the Principal Global Diversified Income Fund at principalfunds.com/PGBAX. New and improved materials include a client brochure, research paper, enhanced fact sheet, and much more.

The Fund is rated against 230 World Allocation Funds with at least a 3-year history as of 3/30/12, based on risk-adjusted total returns.

Please see Morningstar ratings and recent fund performance for more information.

 

Past performance is no guarantee of future results. This presentation reflects the opinions of Principal Funds Distributor, Inc. and may not come to pass. The objectives stated are those of the Fund and may not come to pass.

The opinions expressed by Mr. Reichart regarding the unique structure and composition of the Principal Global Diversified Income Fund are based upon a combination of industry and proprietary research. We believe the resulting research supports Principal Management Corporation's opinions as expressed in the video. It is important to keep in mind that like any mutual fund, the Principal Global Diversified Income Fund may not meet its stated objectives.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus that includes more information regarding the risk factors, expenses, policies, and objectives of the investment. Contact your financial professional or call 800.222.5852 to obtain another copy of the prospectus. Read the prospectus carefully before investing.

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.

Asset allocation/diversification does not guarantee a profit or protect against a loss.

The call overwriting option was implemented in an attempt to dampen volatility by writing covered calls on index strategies that closely reflect certain equity sector positions held in the portfolio. The strategy may dampen volatility; however, it may also limit upside potential due to the nature of the strategies utilized.

The term "yield alpha" refers to the excess yield from an investment relative to the yield of a benchmark index.

The Barclays Capital U.S. Aggregate Bond Index represents securities that are domestic, taxable, and dollar denominated. The index covers the U.S. investment-grade, fixed-rate bond market with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities.

Principal Global Investors and its affiliates are sub-advisors to many of the Principal Funds.

Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Lower-rated securities are subject to additional credit and default risks. Risks associated with preferred securities differ from risks inherent with other investments. In particular, in the event of bankruptcy, a company's preferred securities are senior to common stock but subordinated to all other types of corporate debt. International investing involves increased risks due to currency fluctuations, political or social instability, and differences in accounting standards. These risks are magnified in emerging markets. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration.

An MLP that invests in a particular industry (e.g., oil and gas) may be harmed by detrimental economic events within that industry. As partnerships, MLPs may be subject to less regulation (and less protection for investors) under state laws than corporations. In addition, MLPs may be subject to state taxation in certain jurisdictions, which may reduce the amount of income paid by an MLP to its investors.

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