Principal Diversified Select Real Asset Fund

A continuously offered closed-end interval fund
A: PDSRX, I: PDSKX, Y: PDSYX

A case for Diversified Select Real Asset Fund

A differentiated approach to real asset investing

Principal Diversified Select Real Asset Fund is a multi-managed, multi-asset strategy focusing on private and public real asset investments, including infrastructure, natural resources, real estate, and other diversifying real return strategies.

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Benefits of a diversified private and public real asset portfolio

Our approach allows investors to access and gain meaningful exposure to private real assets, an asset class historically invested in by institutional investors or qualified purchasers. We believe this strategy provides investors with the potential for:

  • Current income
  • Enhanced risk adjusted return potential
  • Resilient economic cycle performance
  • Mitigation against expected/unexpected inflation

Download our full paper A case for diversified private and public real asset exposure to learn more.

Real asset expertise

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Real Asset allocation expertise

A defined approach that embraces the breadth of the private and public real asset universe seeking to provide investors with enhanced current yield potential, enhanced risk-adjusted returns and more resilient market cycle performance.

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Track record/history1

Manager with a demonstrated history of success with one of the longest track records in managing multi-asset, multi-manager real asset strategies of scale, currently exceeding $5 billion2 in diversified real asset strategies.

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Manager selection

A disciplined, time tested portfolio construction process targeting specific risk targets that are diversified across multiple asset classes and delivered using “best-in-class”3 specialist managers by an experienced portfolio management team with over 26 years of industry experience.

1 The Principal Diversified Select Real Asset Fund is new and has limited operating history.
2 As of March 31, 2019.
3 Sub-advisors were selected using a proprietary process, characterized by a comprehensive and continuous review of all investment managers.


Risks and important information

Investors should carefully consider a fund’s investment objectives, risks, charges, and expenses prior to investing.

Principal Diversified Select Real Asset Fund is a closed-end investment company that continuously offers its shares. Investors in a closed-end fund do not have the right to redeem their shares on a daily basis at a price based on NAV per share. There is no secondary market for the Shares, and the Fund does not expect a secondary market will develop. You may not be able to sell your Shares when and/or in the amount that you desire.

The Fund is structured as an interval fund, which means it conducts quarterly repurchase offers of no less than 5% of the Fund’s outstanding shares at net asset value (“NAV”). Investors should not rely on any expectation of repurchase offers being made in excess of 5%.

Investors should consider the Fund’s shares illiquid. The ability of investors to sell shares to access their invested capital is very limited.

Investing in the Fund is speculative and involves a high degree of risk, including the risks associated with leverage and the risk of a substantial loss of investment.

Real estate investment options, such as real estate investment trusts (REITs) and commercial mortgage backed securities (CMBS), are subject to risks associated with credit, liquidity, interest rate fluctuation, adverse general and local economic conditions, and decreases in real estate values and occupancy rates. Investments in companies involved in agriculture, infrastructure, natural resources and energy can be significantly affected by government policies, regulations, interest costs, surplus capacity, weather conditions, and natural disasters. Investing in derivatives entails specific risks relating to liquidity, leverage, and credit, which may reduce returns and/or increase volatility. The use of leverage increases investment exposure and has the potential to magnify losses. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Risk is magnified in emerging markets, which may lack established legal, political, business or social structures to support securities markets. Fixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. Floating rate debt instruments are subject to credit risk, interest rate risk, and impaired collateral risk, which means that the value of the collateral used to secure a loan held by the fund could decline over the course of the loan. Lower-rated securities are subject to additional credit and default risks.

Valuation: Due to the inherent uncertainty and subjectivity of determining the fair value of investments that do not have a readily available market value, the fair value of the Fund’s private investments may differ significantly from the values that would have been used had a readily available market value existed and may differ materially from the amounts the Fund may realize on any disposition of such investments.

Principal Diversified Select Real Asset Fund is distributed by Principal Funds Distributor, Inc. Principal Global Investors is the Investment Adviser to the Fund.