The investment seeks to provide a relatively high level of current income. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in below investment grade bonds (sometimes called "high yield bonds" or "junk bonds") which are rated at the time of each purchase Ba1 or lower by Moody's and BB+ or lower by S&P. It also invests in bank loans (also known as senior floating rate interests) and securities of foreign issuers, including those located in developing or emerging countries. The fund maintains an average portfolio duration that is within 20% of the duration of the Barclays US High Yield 2% Issuer Capped Index.
Morningstar Style Box™
as of 02/28/2014 What's this?
Overall Morningstar Star Rating™
as of 03/31/2014 What's this?
Out of 550 High Yield Bond 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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Represents performance for Class A shares adjusted for the maximum sales charge and assumes the reinvestment of distributions.
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
Principal Global Investors
Mark P. Denkinger , CFA Since 05/04/2009 M.B.A. , University of Iowa
Darrin E. Smith , CFA Since 05/04/2009 M.B.A. , Drake University
The full name of this investment option is Principal High Yield Fund (A).
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
Barclays US Corp High Yld 2% Issuer Capped Index is an unmanaged index comprised of fixed rate, non-investment grade debt securities that are dollar denominated. The index limits the maximum exposure to any one issuer to 2%.
High yield investment options are subject to greater credit risk and volatility that is associated with high yield bonds.
Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
Effective April 9, 2012, this fund is sub-advised by Principal Global Investors. Prior to April 9, 2012, the fund was sub-advised by Edge Asset Management, Inc.
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.