The investment seeks high current income. The fund normally 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 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. Under normal circumstances, the fund maintains an average portfolio duration that is within 25% of the duration of the Barclays US High Yield 2% Issuer Capped Index.
Morningstar Style Box™
as of 01/31/2014 What's this?
Overall Morningstar Star Rating™
as of 02/28/2014 What's this?
Out of 546 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
JP Morgan Investment Mgmt Inc.
Neuberger Berman Fixed Inc LLC
William J. Morgan Since 07/19/2007 B.A. , Kenyon College
James E. Gibson Since 07/19/2007 B.S. , University of Cincinnati
James P. Shanahan,Jr. Since 07/19/2007 J.D. , University of Cincinnati
Thomas P. O'Reilly , CFA Since 07/19/2007 M.B.A. , Loyola University
Ann H. Benjamin Since 07/19/2007 Master , Carnegie Mellon University
Russ Covode Since 12/31/2011 M.B.A. , University of Chicago
The full name of this investment option is Principal High Yield Fund I (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%.
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.
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.
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.