The investment seeks to provide current income. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in preferred securities at the time of each purchase. It concentrates its investments (invests more than 25% of its net assets) in securities in the U.S. and non-U.S. financial services (i.e., banking, insurance and commercial finance,) industry. The fund also regularly invests in the real estate investment trust (i.e. REIT) and utility industries. This strategy seeks to produce gains regardless of the directional movement of U.S. Treasuries, credit spreads and interest rates while mitigating volatility.
Morningstar Style Box™
as of 01/31/2015 What's this?
Overall Morningstar Star Rating™
as of 02/28/2015 What's this?
Out of 37 Preferred Stock Funds
Morningstar's Star Ratings reflect risk adjusted performance and are derived from a weighted average of the performance figures associated with its three, five, and ten-year (if applicable) time periods.
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Performance assumes reinvestment of all dividends and capital gains.Extended performance is calculated based on the historical performance of the investment option's oldest share class, adjusted for the fees and expenses of the share class shown. Periods of less than one year are not annualized.
Inv Manager or Sub-Advisor
L. Phillip Jacoby IV Since 05/01/2002 B.S. , Boston University
Mark A. Lieb Since 07/01/2009 M.B.A. , University of Hartford
Fernando Diaz Since 12/31/2010
Roberto Giangregorio Since 12/31/2010 M.B.A. , Cornell University
Manu Krishnan , CFA Since 12/31/2010 M.B.A. , Cornell University
Kevin Nugent Since 12/01/2014 B.A. , Ohio Wesleyan University
The full name of this investment option is Principal Preferred Securities Fund (P).
Investors should carefully consider a fund's investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principalfunds.com, or calling 800-222-5852. Read the prospectus carefully before investing.
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 Insured May Lose Value - Not a Deposit - No Bank Guarantee Not Insured by any Federal Government Agency
Preferreds Blended Index is composed of 50% BofA Merrill Lynch Fixed Rate Preferred Securities Index and 50% BofA Merrill Lynch U.S. Capital Securities Index. The blended index historic returns reflect the allocation as of the time of production. Previous allocation changes are not restated.
These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect a portion of the fees and expenses of this share class. For time periods prior to inception date of the fund, predecessor performance is reflected. Please see the fund's prospectus for more information on specific expenses, and the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class.
Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
Class P shares are available only to certain investors. See the prospectus for more information.
Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. government.